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Big Bus Tours is the largest operator of open-top sightseeing tours in the World, providing sightseeing tours in thirteen cities across three continents.

Big Bus Tours was formed by the merger of two established sightseeing tour businesses. The Big Bus Company Ltd – based in London, and Les Cars Rouge – based in Paris. The two businesses, each with over 20 years of successful tour experience, decided to combine their expertise, creating Big Bus Tours in May 2011.

Big Bus Tours’ sightseeing formula has been designed to provide a flexible approach to city discovery. Each open-top bus tour provides a hop-on, hop-off facility at a variety of interesting locations and, wherever possible, Big Bus Tours looks to enhance the visitor sightseeing experience by providing complementary experiences.

Big Bus Tours is currently planning further expansion in the US, Europe and Far East, and welcomes all enquiries about possible franchise or partnership opportunities.

Source: http://www.bigbustours.com/eng/international/custompage.aspx?id=about_us

INTRODUCTION TO THE ORIGINAL TOURS

The Original London Transport Sightseeing Tour was the first sightseeing tour of its kind in London, formally introduced by London Transport as ‘Service J’ on 11th June 1951, when thousands of visitors descended on the capital for the Festival of Britain. It was described at the time as a non-stop circular tour of London operating with double-decker buses from Buckingham Palace Road, South Kensington Station and Bloomsbury Place.

The tour was promoted with the slogan ‘around the town for half a crown’. As part of the tour, visitors were given a free London Transport Guide Book with the aid of which they had to identify the major sights of London for themselves. By the early seventies the service had expanded to offer conducted coach tours in the City, Windsor & Hampton Court, all “live guided” by the renowned Blue Badge Guides. Back in 1971 the fares for an ‘Around London Sightseeing Tour’ were 50p for adults and 30p for children, whilst the conducted coach tours in the City cost ?1.40 and ?1.10 respectively.

The first live guides were introduced on the Around London Tours in 1984, with taped commentaries in French and German following the next year. In 1990 the service was further improved with digitally recorded commentaries, in up to eight languages. 1991 saw the launch of the most popular hop-on, hop-off service allowing passengers the freedom to get off and explore the sights they passed.

Over the years there were several name changes from the initial uncharismatic Service J until 1992 when the name ‘The Original London Sightseeing Tour’ was finally adopted. In the same year the company was sold to the Pullmans Group Limited and traded as London Coaches Ltd.

In December 1997, The Original London Sightseeing Tour Ltd was taken over by Arriva, one of the largest transport service organisations in Europe. In addition to the provision of bus and train services, Arriva plc also operates a Bus and Coach dealership; and holds the Cross Country rail franchise.

In March 2001 London Pride Ltd was acquired and merged with The Original London Sightseeing Tour, creating the largest single operation of its kind anywhere in the world.

In August 2010 The Original Tour’s parent company, Arriva plc, officially became a part of DB UK Holding Limited (a wholly-owned subsidiary of Deutsche Bahn AG) for ?1.5bn. The Deutsche Bahn group has 295,000 employees in 130 countries.

Today, over 60 years later, trading simply as “The Original Tour”, this multi-award winning company continues to provide visitors to London with a relaxed and enjoyable view of the capital’s famous landmarks from open-topped buses operating throughout the year.

Source: http://www.theoriginaltour.com/info/about.htm

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FACILITIES PROVIDED BY BOTH THE COMPANIES

BIG BUS TOUR:

The Big Bus tour provides open-top sightseeing tours of London. The company has a fleet of 90 buses and tours run every 5-15 minutes, enabling visitors to hop on and off at over 70 stops. The carefully devised tour provides an overview of the history and culture of London, delivered by either a London guide in English or a recorded commentary.

The digitally recorded commentary allows you to listen to facts and stories in any of 8 languages. Head phones are provided enabling you to listen in English, French, German, Italian, Spanish, Portuguese, Japanese & Russian.

As with all Big Bus Tours, you can stay onboard for the full tour or make use of the hop-on hop-off facility, a great benefit of the London bus tour that enables you to stop and explore the sights at your leisure. Take advantage and visit the top London attractions at your own pace.

The Red Tour

The classic open top sightseeing tour of London. The interesting and informative commentary provided by the professional guides is just one reason why the Big Bus Red Tour is the best thing to do when visiting London.

All Big Bus Red Tours are led by our experienced guides – London enthusiasts who will talk you through the history of the city and give you a personal and entertaining commentary on London and its tourist attractions.

The route has been carefully devised to enable you to see London’s most famous sights. Buckingham Palace, Westminster Abbey, St. Paul’s Cathedral and The Tower of London are just some of the fabulous attractions.

Stay on board for the full circuit or make use of the hop-on hop-off facility, a great benefit of the London Bus Tour that enables you to stop and explore the sights at your leisure. Take advantage and visit the top London attractions at your own pace.

Discover the wondrous history of London as you learn and laugh with live commentary provided by our professional guides. The tour takes in all the key sights of Central London with great views and interesting facts at every turn.

Buckingham Palace, Westminster Abbey, St. Paul’s Cathedral and The Tower of London are just some of the fabulous attractions on the red tour.

The Blue Tour

The most extensive sightseeing route through London takes you to all the top attractions and features an informative recorded commentary in 8 languages on all buses. The bus tour takes in all of Central London as well as Kensington and Hyde Park

On Board the Blue Tour you will also be able to discover the shopping havens of Harrods, Harvey Nichols and Kensington High Street, take in the elegant Kensington Palace and the fashionable Notting Hill. In addition to the many sightseeing attractions of Central London, the Blue Tour travels West to the Victoria & Albert, Science and Natural History Museums – all free to enter, plus the world famous Madame Tussaud’s.

The Green Link

The Green Link is an interchange between the red and blue Big Bus tours. It allows you to visit London attractions that may not be covered by either of the other tours. It connects the popular hotel of Russell Square and Trafalgar Square, where you may interchange with the Red and Blue Tours. The Green Link also provides the opportunity to visit both the Dickens and British Museums.

It takes just ten minutes to travel between the three stops on one of our open top tour busses. The journey is without a tour guide commentary and departures are every 30 minutes.

River Thames Pass

Enjoy a leisurely cruise on the River Thames with entertaining commentary and superb views of London’s riverside. Take a short trip through central London or travel to Greenwich and visit the National Maritime Museum and the Greenwich Royal Observatory.

Three Walking tours

Join an entertaining walking tour lead by one of our experienced guides. There are 3 to choose from, enabling you to discover more of London. Led by a friendly Big Bus Guide, these relaxed walking tours reveal the heart and soul of this great city. With your Big Bus ticket you may take as many guided walks as you like.

The guided London walks last approximately 1 hour and 30 minutes to 2 hours and leave from the Big Bus Trafalgar Square stops 10 and 37 (outside the Sainsbury wing of the National Gallery).

Royal London Walking Tour

Beatles Walking Tour of London

Ghosts London Walking Tour

Big Bus Bonus Card

The Bonus card provides great discounts and added value offers in some of London’s most popular restaurants, shops and attractions. The Bonus Card can be used for a week after your Big Bus Sightseeing Tour and can be used repeatedly.

Highlights

-The houses of Parliament

– St Paul’s Cathedral

– The Tower of London

– The London Eye

– Westminster Abbey

– Tower Bridge

– Buckingham Palace

Includes

– Hop on Hop Off sightseeing Tour

– 2 Routes with the option of a personal audio commentary or a live guided tour

– 3 Walking Tours, River Cruise and Big Bus Bonus Card (Discount card)

– Unlimited use of all components throughout ticket validity

Things that are excluded from the tour are:

– Meals and drinks

– Personal expenses

– Tips and gratuities

– Optional activity costs

THE ORIGINAL TOURS:

Customize your own tour by hopping on and off the bus at any stop, as many times as you like. There’s a choice of sightseeing routes, including the Yellow Route which features live onboard commentary. If you’re traveling with the family, take the Red Route – relax while your children are entertained and informed by the highly acclaimed Kids Club commentary and their free London activity packs.

Each route makes frequent stops – simply hop off where you want to, and return to the same stop to continue your tour.

Highlights:

Madame Tussauds

Piccadilly Circus

Leicester Square

Trafalgar Square

Downing Street

Big Ben and Parliament

London Eye

Covent Garden

St. Paul’s Cathedral

Tower Bridge

Tower of London

Shakespeare’s Globe

Westminster Abbey

Buckingham Palace

The City Sightseeing Tour (Red Route)

Madame Tussaud’s and the London Planetarium, Regent’s Park, Oxford Street, Regent Street, Piccadilly Circus/Eros Statue, Leicester Square, The National Gallery, Nelson’s Column and Trafalgar Square, Horse Guard’s Parade, Downing Street, Big Ben and Parliament, Lambeth Palace, Imperial War Museum, The London Aquarium, London Eye, South Bank Arts Center and BFI Imax Cinema, Covent Garden, Fleet Street, St. Paul’s Cathedral, Monument, London Bridge, London Dungeon, Tower Bridge, The Tower of London, Shakespeare’s Globe, Tate Gallery Bankside, Millennium Footbridge, Catamaran Cruisers, Sherlock Holmes Pub, Westminster Abbey, Buckingham Palace, Hyde Park, Speakers Corner.

The Original Tour (Yellow Route)

English-speaking fully qualified live guides.

The National Gallery, Nelson’s Column and Trafalgar Square, Horse Guards’ Parade, Downing Street, Big Ben and Parliament, Lambeth Palace, Imperial War Museum, The London Aquarium, London Eye, South Bank Arts Center and BFI Imax Cinema, Covent Garden, Fleet Street, St Paul’s Cathedral, Monument, London Bridge, London Dungeon, Tower Bridge, The Tower of London, Shakespeare’s Globe, Tate Gallery Bankside, Millennium Footbridge, Catamaran Cruisers, Sherlock Holmes Pub, Westminster Abbey, Buckingham Palace and the Changing of the Guard, Hyde Park, Speakers Corner, Ritz Hotel, Royal Academy of Arts, Fortnum and Mason, Piccadilly Circus/Eros Statue, Leicester Square.

The Museum Link (Blue Route)

Main attractions: Kensington Palace, Baden-Powell House, Natural History Museum, Science Museum, Victoria and Albert Museum, Brompton Oratory, Harrods, Knightsbridge, Harvey Nichols, Hyde Park, Ritz Hotel, Piccadilly Circus, Shaftesbury Avenue, British Museum, Russell Square, Wellington Museum, Royal Albert Hall, Albert Memorial, Kensington High Street and the Princess Diana Memorial Fountain.

Capital Connector (Purple Route)

Holland Park, Notting Hill, Bayswater, Kensington Gardens, Pet Cemetery, Paddington Station, Madame Tussauds.

St Pancras Station Connector (Black Route)

St Pancras – King’s Cross Station – Marble Arch – Paddington Station – Marylebone Station – Euston Station.

The bus leaves St Pancras International at 10.05, 11.05 and 12.05pm; and departs from Marble Arch at 3.50pm, 4.50pm and 5.50pm. Speak to our staff on the day for the latest timetable information.

Central London (Green Route)

Leicester Square – London Eye – Westminster – Piccadilly Circus – Leicester Square This circular service provides a handy link in central London across the Thames.

It operates daily between 09.15 and 15.45.

Kids Club

The Original Tour is the only tour operator to offer commentaries specially designed for children. History made fun – for kids, by kids … plus the voice of the ghost of London! Every child also gets a “passport” to London and a fantastic free fun pack with activity/quiz book. Look out for the great Kids Club competition in the back of the book where you could win a souvenir of London. The Kids Club Channel is available on the red and blue route.

Members of the Kids club will receive their own free activity pack and a Passport to London. Don’t forget to get your passport officially stamped before you board the bus!

Thames River Cruise

Enjoy this hop-on-hop-off cruise down the River Thames with professional commentary. Hop-on-hop-off cruises are available from Westminster, Waterloo, Tower and Greenwich Piers. A great way to explore London’s riverside attractions in greater detail… and its completely free.

FREE Walking Tours

On non-guard change days walks go to Buckingham Palace and to St James’s Palace where you can take photos of sentry boxes. The guard change does not take place if it is raining. All tours take approximately 90 minutes. Please note that the Jack the Ripper walk will finish at Aldgate East tube station and not at one of our bus stops.

1. The Changing of the Guard Walk

2. Rock ‘n’ Roll Walking Tour

3. The Jack the Ripper Walk

SOURCE: http://www.viator.com/tours/London/The-Original-London-Sightseeing-Tour-Hop-on-Hop-off/d737-3302OT?pref=02&aid=g305

Comparison between the big bus tour and the original tours

Original tour and The Big Bus are the established operators and are arguably the mirror images of each other in terms of the product that they offer to their customers.

PRICE COMPARISON

At large both the companies go head to head on the price department.

But if one has to compare which company has a more cheaper ticket it’s the original tours with just a fraction.

Big Bus has a 24 and 48 hour tickets that they offer but this is not the case with the original tours, they just offer a 24 hour ticket.

COMPARISON OF THE BUSES

In the last couple of years both the companies have upgraded their buses.

All the buses are double deck, open top vehicles.

The difference in both the company’s buses is how open top they are, some of the top rows in the front are covered.

ENGLISH GUIDES & AUDIO GUIDES

If you are fluent in English it is preferred that you take the guided bus tour which is provided by both the companies.

Of the audio guides all have English, French, Spanish, German and Italian. Big Bus doesn’t have Japanese, the other two do. Big Bus & OLT have Russian. OLT have a Kids Channel. Big Bus has Portuge and Mandarin.

Source: http://www.londontoolkit.com/blog/tours/comparing-londons-hop-on-hop-off-sightseeing-buses/

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COMPARISON OF THE FACILITIES PROVIDED

The original tour provides KIDS CLUB facility which makes it more fun for the kids, the same is not provided by the BIG BUS TOURS.

Bonus card, one of the main facility provided by the big bus tour.

In this the customers can avail great discounts and value offers in some of London’s most popular restaurants, shops and attractions. The Bonus Card can be used for a week after your Big Bus Sightseeing Tour and can be used repeatedly.

This in NOT provided by the ORGINAL TOURS.

FINDINGS AND ANALYSIS ON THE BASES OF THE QUESTIONNAIRE

Q1.Which bus tour did you opt for?

According to the data collected 70% of the respondents opted for the Big Bus tour where as only 30% of the people opted for the original tour.

Were you given ample time given to you for sightseeing?

According to the data collected people who opted for the Big Bus tour said that they were given time to see all the sights but some of the people were not satisfied with the time provided by the tour companies’ but this is based on their personal requirements.

Was there any entertainment for your children during the tour?

The original tour is the only bus tour company that provides entertainment for the kids.

Families who opted for the big bus tour were really happy with all the facilities and the value added services provided by the company the only thing that they were not content with was that their kids were not given any special treatment.

Whereas the families who opted for the original tour were really happy with the services specially with the kids club facility for their children, this made their tour more enjoyable.

Was the guide able to answer your questions?

The guides of both the tour companies were well informed and were able to tackle all the questions very easily.

Did the tour match upto your expectation?

Big bus tour was able to match upto the customers expectations as all the things that the company mentioned were provided to them. The most important thing that they were excited about was using their BONUS CARD facility.

The original tour was also able to meet the expectation and the people with kids were the ones who were really happy and satisfied as their kids were able to enjoy the tour because of the KIDS CLUB facility provided by the original tour company.

Would you recommend this tour to your friends?

Customers, whether they opted for big bus or the original tours , they were certain that they will recommend the tour service to all their friends as they were extremely happy with the services provded to them.

RECOMMENDATIONS

On the basis of the data collected and the survey conducted I have reached the following conclusion:

According to the information and my personal experience BIG BUS TOUR is the best and also most of the respondents that were interviewed were the ones who had gone for the same.

Personally I would recommend both the companies to install toilets in the buses as it would make the trip more convenient for the customers.

According to the suggestions given by the respondents , buses should install some moving platform with the help of which people with a wheel chair can make use of the open top facility provided , otherwise they have to sit at the lower level

Original Tours should start a facility similar to the BONUS CARD which is provided by the Big Bus Tour , as it is one of the major differentiating point between them.

If the Big Bus tour wants to attract couples with kids, they should start a KIDS CLUB facility or something on the same lines as it would increase their customer base, even though it is still very high.

CONCLUSION

With the help of the data collected through the questionnaire and the information gathered from the internet I can easily say that big bus tour, with all the hype around it and being started recently ie in May 2011 takes the lead in the hop-on hop-off bus tour providing companies.

Original tour company, even though started about 5 decades back, has lost to the new kid on the block.

In order for the original tour company to gain more market share and once again be on the top it has to start some aggressive marketing strategies, give more discounts, provide 48 hour tickets as done by its competitors.

Big bus tour company, in order to maintain its lead in the market, should introduce some kids entertainment or start a tour specially for the younger generation which would attract more families, as the main motive of the family is that their kids should have a great time and at the end increase their knowledge about the city.

AirAsia was established in 1993 and started procedures on 18 November 1996. It was primarily founded by a government-belongs to conglomerate, DRB-Hicom. On 2 December 2001 the very powerfully indebted airline was came by previous time Warner boss Tony Fernandes’s business melody air Sdn Bhd for the token supplement of one ringgit with 40 million Malaysian Ringgit worth of debts. Fernandes’s turned the business round making earnings in 2002 and commencing new path from its hub in Kuala Lumpur by cutting Malaysian Airlines with promotional fares as reduced as 1 RM. AirAsia is one of the award winning and largest budget airlines in the Asia increasing rapidly since in 2001, they have fleet of 72 aircrafts all airbus A320-200. AirAsia is recognized by its lowest fare, quality services and their tagline “Now Everyone Can Fly”. AirAsia serves 51 national and international destinations with 108 routes and operates 400 flights daily from hubs in Malaysia, Thailand and Indonesia. Until now AirAsia has flown 51 million customers with their believes in the no frills without hassle low fare business concepts and feels that keeping cost. The vision and mission for AirAsia is:

Vision: To be the biggest reduced cost airline in Asia and assisting the 3 billion persons who are actually underserved with poor connectivity and high fares.

Mission: To be the best business to work for whereby workers are treated as part of a large-scale family, conceive a globally identified ASEAN emblem,

To attain the smallest cost in order that every individual can go by plane with AirAsia, Maintain the largest value merchandise, adopting expertise to decrease cost and enhance service levels.

1.2 Activities:

Their main activities are to provide air transportation services worldwide. The primary undertakings of subsidiaries are supplying inflight repasts, trip functioning enterprise, supplying airplane leasing amenities, newspapers proprietor with announcing division. Their secondary activity is tune budget hotels for their flyers they can book hotel and tour packages along the ticket with AirAsia Go. they provide sponsor ships to various event held at their destination country but most in Malaysia, they also organize big events and customers can buy ticket from their website along flight tickets. The primary undertakings of subsidiaries are supplying inflight repasts, trip functioning enterprise, supplying airplace leasing amenities, newspapers proprietor with announcing division.

1.3Airline Industry:

AirAsia is in airline industry, airline industry it consists of different air transportation services for travelling passengers and freight. Airlines usually lease or own their aircraft to supply these services and it can be partnership or alliances with other airlines for mutual benefit. Usually airline businesses are identified with an air operating logy to decrease cost and enhance service levels.. AirAsia falls in LCC a low-cost carrier (also renowned as a no-frills, discount or allowance carrier or airline) is an airline that boasts usually reduced fares in exchange for eradicating numerous customary traveler services.

Analysis Of Customer Relationship Management Strategy

AirAsia being in the low cost aircraft carrier model where they operate in budget airline services they have to formulate strategies to keep the existing customers for longer period of time and attract more new customers. One of their strategies is providing passengers with customization on what he/she prefers like meals or no meal, extra baggage and other customized services which bring in revenue for Airasia. Airasia utilizes social networks and mailing to reach customers and inform them about new destinations, promotions and other merchandise. Airasia has expanded its business from airlines to hotels and mobile services as they identify their customers’ demands and try provide it themselves. AirAsia has even started a frequent flyer program which provides free value added services to loyal customers who use AirAsia to travel frequently. Installation of customer answers response system from a European provider which answers to questions by customers instantly on the Airasia website.

2.1 Situation Analysis:

We will now analyze the strengths, weakness, opportunities and threats which Airasia faces

Strengths: Being the only budget airlines in the Asia region and flying to more than 100 destinations gives them advantage of being the only reliable low cost carrier. Customers who use the airline frequently to travel day to day remain loyal. Low operating cost results in cheap tickets and promotions which make other hard to compete with Airasia. Joint ventures with other carriers and aircraft in other countries help provide easy transit, affiliated flights and lounge privileges

Weakness: Poor customer services support. Complains not answered and feedback not taken into consideration. Selling the service the only concern as per customers view on Airasia. Cancellation of flights, delays of flight and poor service from flight crew.

Opportunities: Diversification of the business to other ventures. Gaining new customers by adding new hot spot destinations. Increase in fuel prices can have little effect on Airasia but due its low operating cost it still will remain the cheapest while other airlines will find it hard to keep up with the cost and operating expenditure.

Threats: Airasia will certain airport policies when entering different airports which could increase cost of operating. Increase in fuel prices is still a concern. New entrants to the low cost airline industry which will compete with Airasia.

3.0 Segmentation and Customer Profile
3.1 Group Flyers and Discounts:

AirAsia segment their travellers by giving discount to group traveller more than 9 passengers or other offers to specific groups e.g.: school trip, wedding, and etc. this helps them to exposure their business to new customers resulting high sales. AirAsia put group discounts in their online booking also which makes customers to purchase easily the ticket. Their main target markets mostly are internet based customers.

3.2 Foreign workers strategy:

AirAsia goal most foreign employees from Indonesia, Singapore, Thailand, China, Macau employed in Malaysia who may not pay for the costly air journey dwelling and offer them bargain fare which will appeal most of the clients in this market class as they won’t yield much and will be in their dwelling very often.

3.3 AirAsia Go:

AirAsia go is a package of booking hotel and flight both together for business and leisure travelling customers. They mainly focus on promotions on this in school holidays, public holidays and other celebrations eve. Which attracts the business man travelling can book hotel and flight in one place and with customer reviews. They have points also to redeem while booking in AirAsia go for frequent flyers.

3.4 AirAsia X:

Airasia X is usually used in Long Haul flights with the fleet of A330. They segment their customers in 2 parts economy and premium flatbed. In economy they have hot seats which are like be the first to get board in the jet and get relax with extra legroom and second is standard seats which is comfy and made from leather. The business class is usually for leisure class which is of course higher in price but cheaper than the other airlines business class; they provide benefits like complimentary meal, pick a seat option, priority check in, flatbed seats and many more. Their usually target on frequent flyers for long haul.

4.0 Customer Relationship Issue faced by AirAsia

The main issue which is having a negative impact on Airasia customer relationship management are service complains, delays and cancellation of flights. The first issue is customer feedbacks such as suggestions and complains are ignored; customers feel Airasia only wants to sell the ticket to them and don’t care after that onwards. Complains have to look and corrected so that it does not happen again. New suggestions should be taken into consideration and appreciated. The other main issue is that passengers face delays frequently as they are left stranded in the airport for hours to board the aircraft and in worst cases flights are cancelled frequently by Airasia due to technical issues and other various reasons. Customers lose loyalty toward AirAsia due to the factors.

Airasia needs to rectify these issues to maintain better understanding between customers and provide better satisfaction to the customers. The main objective is to make a CRM strategy to correct these issues. Strategies have to be planned and implemented in order to achieve the objective; from the situational analysis we have performed now we have to develop the strategy which will be discussed in the next part.

Question 5

Airasia has multiple issues which they have to correct so multiple strategies will be required in order to rectify. The main weakness are complains are ignored, Delays and cancellations of flights. First main issue where a strategy is needed is to correct the delays and cancellations of flights. The reasons for the delays and cancellations could be natural reasons which cannot be avoided like bad weather, storm and etc. Technical faults, maintenance repairs and cancellation of flights due to insufficient number of passengers to travel can be corrected by a strategy. Airasia cancels flights because of insufficient passengers to travel for the certain time flight because it is not profitable. This can be avoided by reducing the number of flights to a certain destination in one particular day. Example Airasia travels 4 times a day to Singapore reducing it to 3 times a day if the particular destination has cancellation due to insufficient amount of passengers can solve. Airasia uses only type of aircraft the A320 but have more than 120 fleets of this type to reduce cost of having multiple types of aircraft making them also easy to repair and maintain only type of aircraft but still delays occur. A daily check of each aircraft can be carried out to avoid these issues

The next issue is that complaint and feedback from customers are ignored; Air Asia needs a strategy to improve the customer relationship. The customer service department will have to be trained to handle customers with temperament and understanding. Complains, feedback, suggestion should not be ignored but welcomed as it can improve the customer service. Complains should go through a panel and should be addressed back to the customer negative or positive based on the rules, policies and guidelines of Airasia. Mistakes or inconvenience caused by Airasia should be compensated through free tickets, Upgrade to business class and lounge facilities. New suggestions and feedbacks should be considered if beneficial should be implemented.

Question 6

The strategy of reduction in flight has to be evaluated based on the destination and the amount of flights. Most importantly the amount of cancellations of flights to each destination over a month has to be evaluated through and check which destinations have the highest number of cancellations due to insufficient passengers has be checked a frequency of flights to that particular destination should be reduced. The reduction in flights will lead to customers fearing that Airasia could terminate services to that particular destination and other assumptions such as profitability, political pressure and other rumours can affect the brand name. New contract and rescheduled flight time table has to be given to the destination airport and this process could turn costly as new fleet parking charges and rates will be given based on the Airport Example busy airport like Changi, Singapore can charge more for landing and parking of fleets. The Strategy of reduction in flight has a high rate of working to avoid cancellation

The other strategy to avoid delays and cancellations is through daily maintenance checks and service; Airasia has a more than 120 fleets inspecting every aircraft daily is very costly and a long process. Airasia being a low cost carrier it has to be sensitive about cost as these inspections will lead to increase in prices. The inspections will still not stop delays as major faults and issues will take more long period to fix. Airasia can collaborate and negotiate with other airlines incase there is delays passengers can be switched to different Airline so their journey and plans will remain unaffected. The strategy of collaborating or forming alliance with other Airline services can avoid delays and jamming of schedules.

The other strategy of retraining staff to better assist customers and their complains will have an effect on cost but most importantly a panel to decide on feedback, complains and suggestions is vital for use as complains will not be ignored replying or addressing them back is important even if the suggestions or complain are meaningless. Evaluating complains, suggestions have to be implemented if it brings satisfaction to majority if airasia customers and profitability is not affected due to the change implemented.

Airasia has multiple ways to address the problems in the customer relation management but they can overcome the issues by some simple strategies to correct them and have the resources and power which provides more alternative method strategies to overcome the problem. Airasia has been hit by two main weaknesses which through evaluation on why, how this problems occur the root cause can be found. Correcting these issues not only improves the relationship between the customers but also adds customer value and satisfaction.

My Management Research Report is aimed at analysing the tourism sector of Mauritius and how it has been evolved over the years to attract foreign expatriates. As tourism is one of the fastest growing industry in the world, people are willing to travel to different parts of the world to experience the different culture and events which they find interesting. Thus tourism nowadays have been evolved to cater all the different masses of the public. The research report also shows the various development procedures implemented by the government to attract more tourists to the island as tourism is one the main pillar of the Mauritius economy. The report discusses the discovery of the island, its evolution process whereby Mauritius was occupied by Portuguese, Dutch, French, British and finally gained independence. The Report also discusses the transport facilities, promotional activities, cultural cuisine and festivities, Primary landmarks and attractions. It also discuses different type of tour packages available for beach holiday makers to adventurous holidays makers. It shows how the Mauritian social, economy, political, technological field has benefited by the tourism sector. Improvements that are made to convert the low-income tourist destination to one the world’s best tourist brands. Mauritius is emerging as world class business and banking sector. It is now considered as the hub for the financial transaction and known as Singapore of the West.

The research shows how the tourism Industry has affected the social, technological, economics, ecology and political aspect of Mauritius. The 7Ps marketing strategies like Product, Price, Place, People, Process, Promotion, and Physical Evidence applied to improve the tourism sector. The research also analyses the factors like international competition, Recession, climatic change, perception of luxury, middle class population, demographic change, technological change, security, health aspects, that affects the tourism industry.

Keywords: Maslow’s theory of Motivation, Marketing strategy, Infrastructure, Communication

Introduction of tourism industry in Mauritius

My Management Research Report is based on how Tourism Industry has supported Mauritius by elevating the progression into infrastructure and the development (economy) of the whole island. Also which should be improved more so that to give the island more potential values and worthy for the population as well as the tourists. Mauritius is known as Paradise Island by tourists and is found in the South West of Indian Ocean. Mauritius is dependent on sugar production since its independence in 1968. Mauritius’ economy is dependent on crucial pillars of financial services, business process outsourcing (e.g- textiles), tourism & Information Technology. Mauritius is one of the best Africa’s massive sugar exporters to Europe, and most of its refined sugar is exported to the EU. Mauritius is a parliamentary Republic and a member of the United Nations, Southern African development Community, the Common Market for Eastern and Southern Africa, the African union, La Francophonie and the commonwealth. The island ranked as an upper-middle income economy, it has been ranked as the best governed country in all of Africa. It is the only African country with “full” democracy. The archipelago is ranked the 7th best destination in Africa.

Discovery of the Island

Mauritius is surrounded by beautiful blue or turquoise crystal seas and white sandy beaches. The word ‘Paradise Island’ described its beauty in nature (Eco tourism parks, volcanoes, etc…). The island’s populace is composed of several ethnicities, including Indian, African, Chinese and French. The main spoken languages are Mauritian Creol, French and English. Asian languages also form part of the linguistic mosaic of the island. Many hotel staffs are fluent in German, Italian and Spanish. Due to others countries, Mauritius too has its own history which marked the island and also the population, with history of sailors who visited the island in the early past by Portuguese in 1507. Then continue furthermore with European.. In 1598 by Dutch who landed in Grand Port and named the island ‘Mauritius’. In 1735 arrived the French – governor Mahe de La Bourdonnais constructed some of the famous buildings which are still standing till today and are site touristic for tourists. After French came the British. The famous bird the ‘dodo’ which was extinct but still live in our memories till now.

The evolution that had taken place throughout the years

In the early 1970, it was an exclusive destination with only a few air carriers servicing it. To attract tourists, the government created a national airline, for increasing capacity to and from traditional markets (UK, Franceaˆ¦) extending progressively its network so as to reach new tourist markets.

In 1971, The hotel School was created to sustain growth of the Tourism and Hospitality Industry by providing skilled labour for the different functional parts of hotels, tour operators.

Then, in the 1980s, the government attracted foreign hotel groups such as South African Sun International and well renowned labels such as Meridien etc to position Mauritius as an upmarket destination focusing on sea and sand. The marketing focused on opinion leaders and cinema stars who were invited to stay in Mauritius, road shows were organised by the then Mauritius Government Tourist Organisation.

The liberalisation of air access in the years 2000, attracted a number of carriers so as to match increasing number of hotels and rooms. The rise in bungalows and small hotels coupled with the venue of new air carriers such as Virgin or French Corsair attracted new waves of tourists, more downmarket and with lower disposable income. In the years 2000, several green concepts such as Casela, La Vanille Crocodile Park etc. were launched for environment conscious market segment.

As from 2009, with the economic recession in Europe, the traditional market, Mauritius tried to explore new emerging markets such as China. As China is a massive rich country, it can maintain Mauritius beneficial by rising its economic. On the other hand, Chinese compensate with finance erection and infrastructure proposition has been a grateful relief, even when it has been attached to the use of Chinese Labour and inputs.

In 2010, even with a critical budgeting Mauritius has faced to overcome and with its big surprised the tourists have been increasing. It is a nice performance for the island even if recession has popped up.

Whereas in 2011, Mauritius wishes to lift Tourism markets outside Europe.

In 2012, Mauritius Tourism Sector is targeting on emerging markets and found India as a first class source market. The strategy is to penetrating the Indian market and to focus on the exploit of MICE and Wedding Segments. The Indian Travel trade to advertise and to sell Mauritius as a MICE destination. According to the Minister of Tourism & Leisure ‘Mr Michael Yeung Sik Yuen’, their requirements are to set Mauritius as a high level standard of luxury and accommodation, travel, meetings and conference arrangements, host team building activities, etc. As well as promoting Mauritius as a Golf and Wellness Tourism destination. “India is ranked the 6th biggest market for Mauritius and the country registered 53,955 Indian arrivals last year. Travel trade is crucial to grow up tourism to Mauritius.

As the island was struggling to Economic progress and it saw improvement of the means of communication and a gradual upgrading of infrastructure. Telecommunication in Mauritius are easy to access with internet facilities to one country or to another. Nowadays, the world has been changing and the island too has been thrived for a better future for the population with the incoming of tourism. Tourist Industry has brought lot of reinforcement to the environment of the island. This help in maintenance and renovation of new infrastructure and construction of new buildings. With Tourist Industry, the island has a lot of potential activities such as construction lot of hotels around. Government has given them lot of opportunities, so with new erection of new hotels tourists can enjoy themselves with luxury spas, excursions. Mauritius has been developed due to the arrivals of tourists to the island. Towards a quality tourism in Mauritius, AHRIM (Association des Hoteliers et Restaurateurs de l’ile Maurice) launched in 1973 and it is a non-profitable organisation and their members have 85% hotels sector which are ready to welcome tourists every day. Perfect quality deals with good customer service, it is prior in any organisation. On the other hand, Segmentation is vital and support the selling of the destination. Segmentation is divided into 4 groups of market which are:-

Demographic – By selling the destination, Mauritius need to target different types of customers to their age, types of family leisure by positioning its own products on the market.

Geographic – Tourists will discover the beautiful green paradise by staying in harmony with nature.

Psychographic – Mauritius is a paradise island and with its multicultural people, tourists will have the opportunities to discover the lifestyle, cultures, different types of delicious food and as well as their values.

Behavioural – Tourists will have the chance to learn the typical Sega dance and also the knowledge and attitudes of the local people. Even that they can organise some special occasion such as wedding with different cultural types of wedding. Due to the splendid climate in Mauritius, tourists can enjoy their break times and honeymoon.

Transports in Mauritius

Tourism sector in Mauritius, Air Mauritius is a good company that aims to acquire expected demand of its customers. With Air Mauritius Fleet, travelling is more easier for the tourists. The company is the fourth largest carrier in Sub-Saharan Africa. Tourism is one of the main elements for the foreign currency, with expected revenue to rise up. Mauritius planned to expand its airport and its target is to accommodate 4 million passengers a year. Transport in Mauritius has increased and some buses have air con where can feel very comfortable. The problems that they acquired are traffics, to solve out with it can be by examples cable car or train like in the past. With too much transport around it’s not good for the population and the tourists because of the air pollution. The difficulties that Mauritius will face if Air Mauritius do not find a way to provide more routes it will be critical for the tourism industry. By comparing Mauritius to its other competitors, it has risen up since 2007. Otherwise it must be on its guard as according to the rate of percentage Sri Lanka is on the path to overtake Mauritius.

How to promote Mauritius?

The Mauritius Tourism Promotion Authority (MTPA) plays a crucial role in the island by finding solutions to advertise the island overseas as tourist destination. The objectives of (MTPA) is to acquired the goal by advising to the minister how to promote the island to the tourists by build up campaigns and participating in tourism fairs. This action will initiate the necessary to the other tourism agencies to collaborate by providing more information on the facilities, infrastructures and services available to them in Mauritius. Their duties are to do market tourism research on the trends and opportunities, so that to relevant statistical data on Mauritius. In 2010, Mauritius was awarded as Best Stand – FITUR, Indian Ocean’s Leading Destination – World Travel Award, Indian Ocean’s Leading Beach Destination – World Travel Award and finally in 2011 was granted World’s Leading Island Destination – World Travel Award.

MICE touches the heart of Mauritius

Brand and marketing are two aspects of armour for Mauritius. They entertain the key of success of the tourism industry. According for (MICE) – Mauritius is the Indian Ocean’s Leading Light. Mauritius accommodation has a great aspirational destination by offering a diverse mix of hotels with strong luxury target. In 2008, the Four Seasons Resort and Spa at Anahita and The Grand Mauritian were launched and which formed part of Starwood’s Luxury Collection. In 2009, the International Mauritius Resort Balaclava fort has been established. This introduces of high portrait of luxury hotel brands. Mauritius is appealing as a high-end destination and offering genuine value for money. When comparing with the other Indian Ocean destinations, Mauritius has a tremendously superior conference offering. The island’s capital which is Port Louis, boasts the extensive purpose built convention centre in the Indian Ocean – the Swami Vivekanada International Convention Centre, which has hosted a number of blue-chip companies and can accommodate 20 to 5,000 delegates. Other venues include the International Conference Centre in Grand Baie (up to 600) and the Freeport Exhibition Centre in Mer Rouge (up to 1,000). Many of Mauritius’ hotels also have the competence to procure for up to 800 delegates.

The archipelago do not consist only of mountains, forests, beautiful sandy beaches, culture, history and hospitality but also has a vast potential due to MICE segmentation. Mauritius acquires all the secret key ingredients that are referred for the successful meetings, incentives, conferences and events. Mauritius offers a large excellent of accommodation with best-known quality and luxury hotel brands.

Through the Cultural Cuisine

Mauritius food is of exceptional quality with varieties of flavours and aromas inherited from different settlers through the island’s history. The cuisine of Mauritius is mostly influenced by Creole, Chinese, European and Indian population. Mauritius is greatly influenced and has strong ties with the French culture, the cuisine like tuna salad, la daube, coq au vin, bouillion and the dessert are mostly popular. During the 19th century the Indian workers who had settled in Mauritius brought their own unique flavours. Mostly the cuisine from north and south India like curry, chutneys, rougaille, pickles are more popular. With the arrival of the Chinese migrants by the end of the 19th century, brought the Chinese cuisine like noodles, spring roll etc. Mostly all the hotels and restaurants throughout the island offers different cuisine like Creole, Chinese, Indian, European etc to give one of the finest exceptional platter to the tourist.

Motivation of the Island

The Motivation to develop the island into major strategic tourism sector was probably achieved due to the fact that there are no major industrial revolution taking place. Mauritius is primarily an agriculture based country where the migrant from different parts of the world came to settled down there. The development and successful implementation of the Tourism sector in Mauritius can be accredited with the motivational theory of Abraham H. Maslow. According to Maslow, ”Only the unsatisfied needs are prime source of motivations.”

(Maslow, 1954)

Maslow suggested that there are 5 needs systems that account for most of our behaviour. They are:

Survival

Safety or Security

Sense of Belonging

Ego-status

Self-actualization

(Courtesy : http://www.businessballs.com/maslow.htm)

Improvements made in Tourism Sector

As Tourism is an important contributor to economic growth of the Mauritian Island, Internal and External factors greatly influence the success of the Tourism industry.

Infrastructure

Significant improvements has been made in developing the infrastructure for the Mauritian Tourism Industry. Improvements in the following sectors has been made to attract tourist from different parts of the world.

Airports : The infrastructure at the airports have been upgraded to provide the tourist with hassle free and quick services. The frequency of the flights has been increased by allowing national and international airline carriers to provide the flight service from Mauritius to different parts of the world. The main Airline carrier providing the flight services to the tourist are EpyptAir, Air Mauritius, Lufthansa, South African Airways, Emirates etc… The following graph shows that the arrival of the tourist has increased in the last decade.

(Courtesy: http://www.tradingeconomics.com/mauritius/international-tourism-number-of-arrivals-wb-data.html)

Hotels: Excellent world class Hotel experience has been provided to the tourist to experience the island paradise. Mainly all the hotels in Mauritius provide different level of luxury to cater the budget of tourist. Wide range of hotel from world class villas, six/five star hotels to cheap accommodation is being offered to the tourist depending on their budget experience. The hotels also offers different packages like honeymoon offers, targeted destination offers, early booking offers, long stay offers to attract the tourist to stay for longer period of time. According to Brown ”Increased length of stay in Mauritius between 1983 and 1997 coincided with an increased in visitor satisfaction levels”

(Brown, 1987)

The occupational rates of the hotel is between 70-80% throughout the year. From the graph we can see the peak periods are from Mid December to Mid January.

(Courtesy : http://www.tropicscope.com/mauritius_information/mauritius_hotels.php)

According to Lockhard and Chandra, ” Long-haul and short-haul tourist generating markets have different length of stay.”

(Lockhard/Chandra, 1997)

Attractions :Mauritius is primarily a holiday destination for beach-resort tourist. It possesses a wide range of natural and man-made attractions. Mauritius enjoys a sub-tropical climate with crystal clear blue beaches, tropical fauna and flora complemented by multi-ethnic population. The people of Mauritius are friendly and welcoming. The Main Landmarks are:

Le Morne Cultural Landscape: UNESCO WORLD HERITAGE SITE

Aapravasi Ghat: UNESCO WORLD HERITAGE SITE

The Second Oldest Racing Club in the World

The Third Country in the World to Introduce Golf to its Shores

Since Mauritius is an island it provides excellent water sports for the adventurous tourists. As the island is famous for its idyllic blue sea water sports such as dolphin-watching, sea kayaking, deep-sea fishing, kite surfing, blue safari submarine are very popular among the tourists.

Marketing Strategy

Based on the demographic information provided by the Ministry of Mauritius, different marketing strategies are planned to attract the tourist to the island nation. Marketing strategies are created for the national and international tourist. For the national tourist day-trippers in the local newspapers or on radio are provided by providing special and festivities discounts to keep the national tourists interested. For tourists from outside tourism brochures, online information are provided by different web sites. Technology has been a tremendous boon to create awareness among the international tourist by providing information online. There are many sites like http://www.tourism-mauritius.mu that allow the international tourist to plan their vacation and their whole itinerary from the luxury of their homes. There are many sites that allow the tourists to customize their destination Marketing is done through conventions, promotions, experience. Effective marketing strategies play an important part to provide the repeat value for the tourist.

Marketing strategy is devised based on :

Product : Here the product is the island itself. Different places of interest, sports and festivities can be highlighted to attract the tourist. It is found in the survey conducted by the Mauritian Government that tourist flock to the island nation during the month of December and January as the island enjoys excellent climate during these period as well as festivities also help the tourists to flock to the place.

Price : Finance plays an important role. Different package tours are devised to promote the tourism industry. According to the survey, it is known fact there is growing number of middle class tourist that come to visit the island nation. Tours that caters to tourist of all the pocket size from world class international travellers to adventurous back-packers travel to the island nation to enjoy the climatic ambience of Mauritius.

Place : Mauritius is full of landmark places. Different parts has its own significance. Northern coast of island is the most developed part in the recent years. It provides good restaurants and discotheques. It contains some of charming sights like the red-roofed church that overlooks the lagoons at Cap Malheurex. The south coast of the island provides different landscape than the rest part of the island. It contains high cliffs that are battered by waves of the sea. These are created where the protective coral reefs falls away on the seabed. The east coast of the island is known as the jewel in the Mauritius’ crown. It is comprised of exquisite coves and emerald lagoons. It contains some of the best beaches like Belle Mare. It is an idyllic place for the holidaymaker. The west coast of the island is known for the dolphins that come to these waters to rest and breed. It is ideal place for dolphin-watching. The inlands also known as ‘highlands’ consists of four major town like Quatre Bornes, Curepipe, Rose Hill, Vacoas.

Promotion : Mauritius has an excellent promotional activities devised by the private and public sector. According to the survey, the promotional budget has increased in the recent years. According to the demographic survey the main promotional activities are carried out by brochures, mails, emails, online promotions, print media advertisement, local radio announcements. For the international tourists the email and web marketing is more effective and generate a lot of interest. Recently more revenue is generated through online promotional activities as people find it easier to use technology to get connected around the world. Also, Promotional activities like special discounts, religious festivities discounts, honeymoon discounts are planned to counter the off-peak seasons to attract more inland tourist. According to the survey, internet is the main source to obtain the travel information as well as to promote the tourism sector.

People : People are main pillars in the tourism sector. Tourist are like Gods, who keep the finance flow in the tourist industry. People are main source from providing the service to acknowledging the services. People form the team that provides the services involved in hotels, recreations, transportation etc, without whom the tourist industry will be crippled. People make it possible to achieve the goals set by the tourist sector.

Process : Though Place, People, Price and Promotion are four main part of the marketing strategy, they are tied together to form a process. It is used to provide consistency to the strategy. The effectiveness of the process is measured by how well the marketing strategy is received by the customers. It provides an organized way on how to deal with the customers when they come in, how they are welcomed and how well they are taken care of by providing proper communication channel. Steps are taken to provide quick and effective service to the customers. It defines how the steps to be taken so the customers come again and again thus generating the goodwill for the tourism sector.

Physical Evidence : It provides a way to interact with the customers directly through the means of feedback form, surveys to discuss about the requirement and the satisfactory level. It is a means to collect the information from the customers, so necessary changes or amendments can be made to suit the customers. It adds value to the tourism industry as it is entirely people centric industry, so the satisfaction of the tourist is of outmost importance.

Factors affecting the Tourism

As in any industry there are certain factors that keeps on changing and the organization has to make effective changes to the industry. According to marketing research Tourism industry in Mauritius will be affected by the following factors in future.

Climatic change : Due to Climatic changes, the tourism sector of Mauritius can be adversly affected. Tourism is one of the major industry that brings foreign currency income to the country. Due to rising in the sea levels the coastal areas of Mauritius, where majority of hotels are located where the tourists can enjoy the aquatic entertainment can be adversely affected. To counter these problems, inland tourism entertainment should be made.

International competition : Intense international competition has become a major problem for the policy makers and investors in the tourism industries. Tourism industry has developed to become a pillar of the Mauritian economy. But other countries like Seychelles, Maldives, Srilanka are catching up with the competition. As Mauritius is known as the ‘Culture Nation’, new marketing strategy and policy should be developed to promote culture as the major role in Mauritius Tourism Industry. According to Porter, ”The existence of competition is a necessary precondition for business strategy”

(Porter, 1979)

Perception of Luxury : Currently Mauritius is internationally known as the worl’d best luxury holiday destinations. With many of world’s finest hotels and luxury brands, it enjoys highest rates of returning visitors in the world. It has become established business and banking centre for the last 20 years. It is currently known as the ‘Singapore of the West’. But the perception of luxury keeps on changing with the passage of time. World is switching to ethnic and organic brand of luxury. Hence respective changes should be made in implementing and promoting it.

Middle Class population : Tourism in future will be dominated by the large influx of travellers belonging to the middle class strata of the society. Hence, the infrastructure and marketing strategy should be developed to cater to the needs of these class travellers.

Demographic change : Mauritius has a population of 1,250,882 (estimated July 2007). The main ethnics groups are Hindu – 68%, Christian – 27%, Chinese – 3%, and French – 2%. The languages spoken in the island nation is English and French as the official language and other languages include Hindi, Urdu, Bhojpuri, Hakka and Creole. Currently the tourists travelling to Mauritius are European, Indian and Asians. To attract more tourists, the demography of the tourist travelling to Mauritius may change due to its popularity and international competitiveness.

Technological Change : Technological change can affect the tourism industry very effectively. The infrastructure changes, adding of the new communication modes, Introducing new transportation techniques; all these can effectively boost the tourism industry.

Security : concerns a major impact on the tourism industry. Since Mauritius is a peaceful country, I don’t think that security will be a problem. But Maybe, terror attacks, war in African regions may affect the travelling to that part of the continent. If it happens that Tourism industry will be greatly affected by it. It may lead to increase in business failures, demise of certain destinations and loss of expected growth in other destinations.

Health aspects : New Epidemics have power to severely affect the travel and tourism industry. For example, SARS in South Asia and Australia, Foot and Mouth disease in UK. Since people are travelling a lot nowadays, the epidemic is not restricted to one part of the world/country, it can spread quickly and easily to different part thus affecting the tourism industry of the specific country.

Recession : It plays an important role in the tourism industry. Recession or economic slow-down affects adversely to the any tourism industry and Mauritius is no exception. But in 2010, India emerged as the most dynamic source country with arrival of 50,700 tourists. The increase in arrivals was driven by strong economic growth even during global recession. Thus, Mauritius felt little impact on the tourist growth during recession period. But it is predicted that recession may affect adversely in future if proper precautions and marketing strategies are not implemented.

Conclusion

Tourism Industry has evolved a lot in the last two decades. It has made tremendous impact on the different levels which are:-

Social : Tourism has boosted social-cultural life of people of Mauritius. It has provided employment to people. Infrastructure has been improved by building roads and providing medical facilities on the coastal regions where tourists come in large numbers. Tourism has made tremendous impact on the social life of Mauritius like Increase cost of living, Loss authenticity, Acculturation where different culture are adopted according to the changing needs.

Technological : Technology has provided a provided a major boost to the tourism industry. Tourist are nowadays always connected to their home base due to technological advancement like internet, Wi-Fi, mobile communication. It has helped the industry to gain recognition world-wide, thereby improving the communication across the world. Technology has made Mauritius one of top Brands in the Tourism Industry.

Economic : The Mauritian economy rests on four main pillars : tourism, sugar, textiles and the services sector. It has boosted the GDP growth which is essential for the community development and poverty reduction, employments for the locals, investment opportunities, business opportunities. According to BBC World New Mauritius is declared as the top 21st country Brands.

Ecological : Tourism and environment are interrelate as tourism is dependent on the natural resources to survive. Tourism has provided both the positive and negative impact on the ecology of the island nation. The areas affected by the tourism are Biodiversity, Erosion and Physical damage, Pollution (Water Pollution, Air Pollution, Visual Pollution, Climatic Change), Resource base that consists of local building-material sources, Visual and structural change.

Political : The tourism sector is supervised by the Ministry of Tourism and Leisure. The Government has formed the Mauritius Tourism Promotion Authority (MTPA) which is responsible for promoting Mauritius by conducting advertising campaign and tourism fairs in Mauritius and abroad. With the help of MTL and MTPA, Mauritius has gained world recognition as the most attractive holiday destinations. The Government of Mauritius form innovative ideas to promote the island to the world stage.

According to R. L. Stevenson , ”For my part, I travel not to go anywhere, but to go. I travel for travel’s sake. The great affair is to move.”

(Robert Louis Stevenson, 1879)

Genting Highlands is located in the Bentong District which is around 50km from Kuala Lumpur, the capital city of Malaysia. The self-proclaimed City of Entertainment lies within the Titiwangsa Range and is on the Pahang and Selangor border, in Peninsular Malaysia. The peak region of Genting Highlands together consists of Gunung Ulu Kali, Gunung Chin Chin, Gunung Mengkuang, and Gunung Lari Tembakakau, also Gunung Purun. [1] This prominent hill resort in Malaysia, is located at an elevation of 2000 meters above the sea level, and is extremely popular with visitors around the world. The weather at this setting is cool and is surrounded by lush greenery, which makes it an ideal adventure away from the hot shifting and activity of the city. [2] C:UsersAlexandria de LimaPicturesGentinggenting-highlands.jpg

Genting Highland started from an ambitious idea and an intangible plan by Tan Sri Lim Goh in 1965. This man-made wonder had a very humble beginning; it was established with just one hotel and a casino, which was the main attraction. Extravagant investments have been put into this project in order to improve its infrastructure and constructed hotels, recreational and amusement facilities and outdoor and indoor theme parks. At present, it stands proud as the region’s premier resort, boasting the only casino in the country and a fun destination for the whole family.

It is a holiday destination that offers a wide variety of entertainment. The resort offers accommodation to suit every budget and personal taste. There are five hotels; Genting Hotels, Highland Hotel, Resort Hotel, Theme Park Hotel and First World Hotel, two apartment blocks; Ria and Kayangang and Awana Genting Golf and Country resort. C:UsersAlexandria de LimaPicturesGentingGenting_Highland.jpg

Genting Highland resort has an indoor theme park, a showroom that flaunts international class acts, outdoor activities and a world class casino De Genting. Also, Virtual reality is an exciting gaming arcade that is uniquely offered in Genting Highlands Resort. [3]

A History of Genting Highlands

For most Malaysians, when it comes to the Genting story, they will recognise it as tantamount with the rise of its namesake hill resort, Genting Highlands Resort. Although many may have not truly respected the gargantuan task that was involved in the construction and the vast resources and reserves that was mobilised in order to ensure what has proven without a doubt today to be an extraordinary success in resort development.

The idea of a hill resort was thought up by Tan Sri Lim Goh Tong while amidst the crisp air of Cameron Highlands, Malaysia in 1964. Tan Sri Lim was at that time, working on a hydro-electric power project at the popular hill resort, that was patronised mostly by British colonials seeking cool refuge from the tropical heat. Here, he anticipated a wealthy Malaysia of the future desiring a cool mountain holiday resort that would be within the reach of all Malaysians.C:UsersAlexandria de LimaPicturesGentingBZLF.jpg

An in-depth study of the maps and Kuala Lumpur’s vicinity revealed the ideal site- the 1800 metre Gunung Ulu Kali, which was just around 50km from Kuala Lumpur. The location was a dense virgin tropical jungle and had rugged terrain; the task at hand was to convert this remote mountain into Malaysia’s premier holiday destination. To everyone else, this appeared to be an impossible and daunting task, but not for Tan Sri Lim.

With Tan Sri Haji Mohammed Noah bin Omar, a private company called Genting Highlands Berhad was set up on the 27th of April 1965. After this, Tan Sri Lim successfully obtained the approval for the alienation of 12,000 acres and 2,800 acres of land from the Pahang and Selangor State Governments, respectively between the years 1965 and 1970. On the 18th of August 1965, a technical and construction team instigated the staggering task that would take almost four years to complete; the access road from Genting Sempah to the peak of Gunung Ulu Kali. Tan Sri Lim devoted all of his time, capital and resources, including the resources of his family company, Kien Huat Berhad, to ensure that the construction of the hotel-cum-resort happened without incident, thus moving closer to making this “dream resort” a reality.

On the 31st of March 1969, Malaysia’s First Prime Minister, YTM Tunku Abdul Rahman, dignified the official laying of the foundation stone for the company’s pioneer hotel, initially named as Highlands Hotel, thus marking the completion of the access road to Genting Highlands Resort. The Prime Minister was very impressed that the private sector, without any assistance of the government, could develop a mountain resort for the enjoyment of all Malaysians. In addition, a gaming licence was suggested to help accelerate the development of this remote area. In 1971, the first hotel at Genting Highlands was successfully completed and was named Highlands Hotel; it has then been renamed Theme Park Hotel.

Since the opening of the first hotel in 1971, Genting Resort continued to grow rapidly. The development of the area continues to this present day, in order to enhance Genting Highlands Resort as the premier holiday destination in the region all while ensuring that the natural beauty of the rain forest is preserved.

Together with integrated world-standard entertainment facilities that encompasses various leisure, indoor and outdoor theme parks and gaming facilities. In 1997, Genting Highlands Resort further boosted its facility attraction with the Genting Skyway cable car system that provides a 3.38 km transport to the hilltop. Genting Skyway is recognised as the “World’s Fastest Mono Cable Car System” with a maximum speed of 21.6 km per hour and the “Longest Cable Car in Malaysia and Southeast Asia”.C:UsersAlexandria de LimaPicturesGentinggenting5.jpg

The Genting Group, founded by Tan Sri Lim Goh Tong, along with Tan Sri Lim Kok Thay as its Chairman and Chief Executive, from its initial hotel and resort activities has expanded and diversified to plantation, power generation and oil and gas exploration and production. Today, Genting Berhad has become a leading multinational corporation in Malaysia; it has frequently been accredited by innumerable organisations for its exemplary leadership and management. Genting Berhad was acknowledged as the No. 1 Leading Company in Malaysia for 10 years, that is 2004 and from 1994 to 2002 by The Asian Wall Street Journal 200; formerly known as Far Eastern Economic Review 200). Genting Berhad was also rated No. 1 in Malaysia and No. 2 in Asia for Overall Best Managed Company for the Decade by Asiamoney. C:UsersAlexandria de LimaPicturesGenting1431.jpg

The Founder, Tan Sri Lim Goh Tong passes away peacefully on 23 October 2007 and was laid to rest at Gohtong Memorial Park on 29 October 2007. [4]

“Once the goals have been clearly defined, with the greatest amount of determination and hard work, one can conclusively realise one’s goals”

-Tan Sri Lim Goh Tong, Founder

The Attractions At Genting Highland

There are many attractions at the Genting highland that the tourists can experience, all kinds of the entertainment. Not only adults can find amusement at Genting, but their children as well, can receive experience from the Genting amusement park joyfully. Some of the attractions in the will be described:

The Casino

The main attraction of the Genting is the casinos that make a lot of money from the tourists throughout the world with many kinds of gambling. The biggest casino in Genting Highland is Monte Carlo Casino Genting Hotel.The area of this casino is 15,000 square feet and it belongs to the casino de Genting (resorts world). The casino provides a lot of games such as baccarat gaming tables, Chinese centered card games. For the Chinese games, there are two more games such as tai sai and pai gow. The tourists are allowed inside without having to pay a fee, but they have to be 21- years- old, and holding their passport. For local citizens, they are not allowed inside the casino, with the exception of Malaysian Chinese. In addition, Starworld casino is one of the casinos at Genting that is smaller than the Monte Carlo Casino Genting Hotel (5,000 square feet). It provides games such as baccarat and texas. The lowest amount on the table is RM 25 and the highest amount on the table is RM 50. The slot machines are the most famous in this casino. There are the slot machines more than Macao, Singapore, and Philippines. This casino is located in the second floor of the First world plaza of First World Hotel.C:UsersAlexandria de LimaPicturesGenting12319255618685810_day1_Casino-De-Genting.jpg.jpg

The tourists can enjoy many kinds of gambling games at Genting. Not only the foreigners, but also the Malaysian Chinese can gain entrance into every casino. The visitors can use their luck 24 hours every day and throughout the year on the highest casino and hotel in the Genting highland. [5]

The Snow World

It is one of the most famous attractions at the Genting highland, especially for children who like to play snow ball fights and to build snow men in the cold atmosphere. The Snow World is the fun place for children. They provide winter jackets and boots. It cost around RM13 (adult) and RM9 (child). They allow the visitors to stay in the snow house for about 30-40 minutes. The temperature inside the snow house is -3° Celsius. The visitors will experiences the cold condition. The area is on the second floor of the First World Plaza. The area of the snow house is around 18,000 square feet and 50 feet height. The operation hour of the snow world is Monday – Thursday: 11.45 am – 09.45 pm, Friday: 11.45 am – 10.45 pm, Saturday: 09.45 am – 11.45 pm, Sunday and Public, Holidays: 09.45 am – 09.45 pm, Eve of Public Holidays: 11.45 am – 11.45 pm [6]

The visitors will get a different experience to play in the snow house in very cold weather at the Genting highland in the First world plaza. It is very appropriate for children who live in the tropics who have never been in the cold weather countries such Europe or America.C:UsersAlexandria de LimaPicturesGentingsnow.jpg

The Awana Skyway

It is the most outstanding land mark of the Genting highland. Most of the visitors really want to be in a cable car because they will see the bird eye view and see the rainforest and mountains of the Titiwangsa Mountain. C:UsersAlexandria de LimaPicturesGentinggenting-and-awana-skyways.jpg

The Awana Skyway is the longest cable car in the south East Asia with 3.4 Kilometers long. The visitors have to pay RM10 for one person.

Every visitors will gain a new experience of taking sky way. You will be in the peaceful place in the middle of tropical forest in Malaysia. [7]

Outdoor Theme Park
Go Kart Racing

This activity is suitable for the people who like speed and racing. Go Kart is a part of the outdoor theme park. The distance of it is around one Kilometer per round.

There are many twists and turns. It takes approximately ten minutes for your ride. It located at the second floor of the outdoor theme park.6

Monorail

For the Monorail, there are only two stations. It takes you to see outdoor view of the Genting and go back and forth between two stations, the first world plaza station and the Outdoor Theme park station. You can take the pictures around the outdoor and indoor of the Genting. The entire journey takes around 10 minutes. You will get an experience of taking the Monorail above both area of the Genting highland. [8]

Ripley’s Believe It or Not!

It is the only museum at Genting highland that has many unbelievable things inside. Everything in the Ripley museum was collected by Mr. Ripley. He got all of these things by travelling around the world. He always collects unusual things. For going inside of the museum, you have to pay RM 18 for adult and RM 15 for child under 12-year-old. The operation hours is 10.00 a.m.-10.00 p.m. every. [9]

Chin Swee Cave Temple

This temple was built by the late Tan Sri Lim and a group of his friends, many of them from his Anxi Clan a village of Penglai, in 1975. He donated 28-acre of the land to build the Chin Swee Temple. Moreover, his company made a donation RM 8.1 million to be the building fund. It was opened on the 29 March 1994 by Tun Dr. Ling Liong Sik, the Minister of Transport at the time. This temple is located 4,600 feet above sea level. For driving, it takes around 10 minutes from the Chin Swee Temple to the top of the mountain.

Inside of the Chin Swee Cave Temple, the visitors will feel peaceful and cold among a lot of cloud at the temple. For the Buddhists visitors, they will see many of statues such as a statue of the late Tan Sri Lim Goh Tong, a statue of Kuan Yin and so on. [10]

First World Plaza

This is the paradise of a shopaholic. It provides a lot of shopping and holiday markets. In addition, there are the entertainments such as dances, acrobatic, and magic performances. All of the shows are in the time square with a statue of Liberty in the middle of the time square. There are six areas that are separated each other such as France, United States, Italy, Great Britain, China and Malaysia. You can take a rest by eating a variety of foods and drinks. And also, you can go shopping as much as you wish. [11] C:UsersAlexandria de LimaPicturesGentingshopping_pic1.jpg

The Indoor Theme Park

It is inside the First world plaza. The visitors who want to enjoy all kinds of theme park. They have to buy an all-day pass ticket at the ticket counter of the outdoor theme park. There are six themed areas such as Champs Elvsee (Frence), London (England), Venice (Italy), Time square and Universal Walk (America), Swiss Alps (Switzerland) and Genting walk (Malaysia). The operation hours are weekdays: 10-a.m. to 6 p.m., weekends; 8 a.m. to 8 p.m. The indoor theme park at the first world plaza, there are many types of funny rides that the visitors can have fun with their families on holidays among cold weather at the Genting highland. It is suitable for everyone who wants to get smiles and happiness. [12]

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The Gondola Boat Ride

It is in the middle of the First World Plaza near the Patio bar. When taking the gondola, it takes around 4 minutes for one round of the First World Plaza. The gondola ride is located in the Venetian Grand Canals. The ride is very smooth and there is a mechanical Gondolier. The route is around the Genting theme parks. It is appropriate for everyone for relaxing after going to the theme parks. The visitors will feel like riding the real gondola in Italy, but there is no paddler like in Italy. Moreover, the gondola is good for a couple that just married to be honeymoon in the Genting highland the land of love. [13]

The Flying Coaster Ride

The visitors have to pay for a flying coaster ticket around RM 8 because it is not included in the pack pass. It is the one of the outstanding in the outdoor theme park. The visitors will experience lifting vertically from the ground with very fast pushing of wind. For taking the flying coaster, the visitors have to prepare themselves before going, because it is not suitable for heart disease persons. The ride takes around 3 minutes. It is nearby the exit way of the outdoor theme park near the entrance to the First World Plaza.

These are the most significant attractions in the Genting highland that provide for the visitors throughout the world to experience. The most attractive thing is casinos at the first world and Monte Carlo Casino Genting Hotel. These places have persuaded many a gambler from many countries especially Chinese people that like the gamble such as tai sai and pai gow. Moreover, there are many attractions that are waiting for the visitors to experience it such as the outdoor theme park, shopping complexes, Ripley’s museum and so on. The Genting highland is suitable for family to travel and relax on holidays because there are many things that you have never seen before on the high mountain among the cloudy weather throughout the year. 12

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The Tourism in Genting

As we all know, Malaysia is a world-famous tropical tourist country. Every year, countless tourists from around the world come to visit here. This not only led Malaysia’s economic development, but also increased the visibility of Malaysia. Numerous tourist attractions are in this country, and Genting is a fairly typical tourist attraction. Genting is Malaysia’s newly developed tourist and summer resort located in Genting (Genting Highlands) plateau, the distance to Kuala Lumpur is about 50 km. The area is about 4900 hectares, which is the Southeast Asia’s largest plateau summer resort.

Genting- city of entertainment is a comprehensive holiday destination incorporating a wide range of recreational and sporting facilities as well as luxurious hotels and apartment complex. Located 2,000 meters above sea-level ,it has matured into the region is premier hill resort and house the area is first indoor theme park ,and an outdoor theme park ,both of which are still growing .The City of Entertainment is constantly being upgraded to include new facilities in order to maintain its reputation as Malaysia is premier fun destination for the whole family. [14]

In the early 1960s, when Dr.lin wutong construct of the hydroelectric power station of Cameron, the cool surroundings in highland summer give his a deep impression. He decided to chose the location of Genting Sempah, where the elevation is more than 1800meter and only 58 kilometers from Kuala Lumpur.The first hotel of Genting was completed in 1969 .The government also announced that Genting opened casino.Genting Berhad was listed in Kuala Lumpur after two years, and then became Malaysia’s tourism logo

The city of entertainment include four hotels ,the Highlands Hotel ,the Exesenting Hotel ,Resort Hotel and Theme Park Hotel ,as well as the Ria and Kayangan apartment complexes ,providing almost 3,000 guestrooms and 300 service apartment for holiday-makers .it is also home to an incredible 35 food and beverage outlets which serve a wide variety of Asian and Western culinary delight.14C:UsersAlexandria de LimaPicturesGenting3412244-Theme_park_in_Genting_Genting.jpg

Malaysia is a country of a national prohibition of gambling, but there is only one casino in Malaysia, Casino de genting offers thrilling ,non-stop gaming excitement at its gaming tables and slot machines. Open round the clock with the best gaming facilities in Asia ,you can try your hand at table games like baccarat ,roulette, blackjack, French boule ,mini dice ,money wheel ,and ‘tai sai ‘,if lady luck is smiling on you ,you can win cars and cash should you strike the winning combination on the jackpot machines .14

This place, compared to the towering Kuala Lumpur twin towers, she can give you a sense of fun to go to Malaysia tourism. She gives you a bit of mystery, a sort of temptation, and people do want to explore the facts.

Genting gives a strong attractive to visitors, which is a scenery that is very amazing , and she is Southeast Asia’s most prestigious ecological scenery, district and highland summer resort. Complex, rare alpine entertainment action measures, which is more famous for Malaysia alone a legitimate casino. Locals call to do “GENTING CITY OF ENTERTAINMENT”. It is the main logo of the tourism industry in Malaysia today. Genting is located 50 kilometres northeast of the capital city of Kuala Lumpur, the case of an inland centre Mountains over 1800 meters of the peak. Malaysia is close to the equator, so the weather is hot, but the temperature up here is as low as 15 degrees Celsius, therefore is a good place to spend summer holiday. Here are the mature tourist facilities: roads, cable car, helicopter directly to the top of the hill. Regular days are full of tourists, and every holiday they are flocked up to Genting City of Entertainment at the same time can accommodate 50 thousand people, received more than 10 million passengers every year. Malaysians Eve multi-faith

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The Economic Diversity
The Genting Highlands

The Genting Group is Malaysia’s leading multinational corporation and one of Asia’s best-managed companies. The Group has over 35,000 employees, 4,500 hectares of prime resort land and about 133,500 hectares of plantation land. In other words, Genting Highlands has much contributed to the economy of Malaysia during the several past years. Under the leadership of Tan Sri Lim Kok Thay, the Genting Group continues to grow from strength to strength. His commitment to excellence, innovation and growth has resulted in the birth of the premier global brand names. The Genting Group is committed to grow strongly as a leading global multinational corporation.http://www.genting.com/financial/images/2011_gb05.gif

Genting Berhad is currently listed on the Main Market of the Bursa Malaysia Securities Berhad. Genting is one of the largest listed companies in Malaysia with a market capitalization of about RM32.9 billion as at 31 October 2012.The authorized share capital of Genting was RM800 million and the issued and paid-up share capital was RM370.4 million as at 31 October 2012.Genting Berhad is ranked 8th in the Top 10 KLCI Listed Companies and is a good source of revenue for the Malaysian economy.

The Hotels of Genting Highland

The ”Fun City above the Cloud” has boost the economic activity of Malaysia through its hotels, theme parks, dining, nightlife and the Genting skyway. This whole package has contributed to a massive inflow of tourists into the country thus ameliorating the country’s economic position.

Resorts World Genting has five hotels. One of the five hotels, the First World Hotel, holds the Guinness World of Records as the largest hotel in the world from 2006 until 2008, with a total of 6118 rooms. Below the hotel, the First World Plaza can be found housing shopping malls, arcades, food outlets, Starworld Casino, and the Genting Indoor Theme Park. This strategic position has witnessed great success as tourists as well as local inhabitants are able to enjoy the Genting atmosphere without having to move in the misty and cold weather. It encouraged and is still encouraging many people to visit this fantasy world and bringing in revenue for the country. Other hotels such as the Genting Hotel, the Highlands Hotel, the Resort Hotel and the Theme Park Hotel also help in accommodating millions of people each year.

Furthermore, the country is investing a lot in the Genting Highlands. For Instance, according to RHB Research Institute Sdn Bhd, Genting Malaysia is building a new hotel to address the occupancy rates in Genting Highlands. It will be a 700-room hotel situated next to the First World Hotel and targeted at a slightly higher-end market compared with the First World Hotel. The hotel’s potential annual top-line contribution can range from RM15 million to RM 20 million per annum, assuming the hotel achieves 70 percent occupancy, with rates at between RM80 to RM100 per night. This new hotel will bring about a 4 percent growth for the economy.

Genting Hotel, or commonly known as Maxims Genting Hotel is a premier hotel at Resorts World Genting with 244 suites.

Highlands Hotel is one of the 5-major hotels and it houses the Elite Club, the 6-star standard hotel rooms at its top most floors. It houses also the Genting Skyway upper station, the cable car ride station for people to go up to Genting Highlands Resort.

The Theme Park Hotel was built in 1971 and it is the first hotel to be built at Genting Highlands comprising of 423 rooms.

All of these five hotels have greatly contributed to the economic development of the Genting Highlands as well as that of Malaysia.

The Casino de Genting

Another important contribution to the Genting Highlands success is the evolution and emergence of the casinos mainly the ”Casino de Genting’ ‘The region’s premier casino, the Casino de Genting offers the latest electronic table games, slots machine as well as some of the best stakes gaming tables around with the classic games such as Roulette, Pai Gow, Baccarat, Blackjack and many more. Over the next few years, the Casino de Genting grew by leaps and bounds. The casino had more than doubled in size in terms of staffs, tables and the number of slots machine. From then onwards, the casino expanded further to cover three hotels throughout the resort and diversified its types of game and decor to cater the players.as the casino grew, so did its clientele. soon players began to visit from all over the world including the United States, Macau, Taiwan, Hong Kong and Europe to that end, on 26th November 2004, the Casino de Genting marked the opening of a contemporary gaming venue located in the first world hotel that boasts the latest gaming technology such as electronic table games, cashless gaming systems for its slot machines.

Today, the Casino de Genting is one of the finest casinos in Asia with over 200,000square feet dedicated to the most exciting casino games in the world, combined with cutting edge gaming technology.

The Casino is one of the fundamental attractions of the Genting Highlands and is helping in bringing loads of tourists to the mountain for leisure purposes as well as enhancing the economy.

The Theme Park

The multi-million ringgit playground with over 40 rides makes it Malaysia’s biggest theme park. There’s so much of excitement and fun at the indoor Theme park and outdoor Theme Park with loads of thrilling adventures. This adventure park has brought about many changes for the Genting highlands and has been an important tool used for attracting children or teenagers to the highlands thus resulting to a massive inflow of currency for the country.http://upload.wikimedia.org/wikipedia/commons/thumb/8/87/Genting_Theme_Park.jpg/220px-Genting_Theme_Park.jpg

The exhilarating and breath-taking scenery of the nature and the climate have also contributed to the success of Genting and the influx of millions of tourists every year.

Condensed Consolidated Statement of Cash Flows for the Financial Period Ended 31 March 2012

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 1,456,940

Adjustments for:

Depreciation and amortization 407,048

Finance cost 111,443

Impairment loss and write off of receivables 89,336

Construction loss/ (profit) 48,150

Net fair value loss/ (gain) on derivative financial instruments 15,246

Impairment losses 2,822

Gain on disposal of subsidiaries (174,298)

Interest income (44,752)

Share of results in jointly controlled entities and associates (5,896)

Other non-cash items (30,831)

418,268
Operating profit before changes in working capital 1,875,208

Net change in current assets (178,598)

Net change in current liabilities (544,995)

(723,593)
Cash generated from operations 1,151,615

Taxation paid (248,404)

Retirement gratuities paid (2,697)

Other net operating receipt 5,112

(245,989)
NET CASH INFLOW FROM OPERATING ACTIVITIES 905,626
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (936,334)

Increase in investments, intangible assets and other long term

Financial assets (189,712)

Net cash inflow arising on disposal of subsidiaries * 420,694

Interest received 47,359

Other investing activities 20,364

NET CASH USED IN INVESTING ACTIVITIES (637,629)
CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of borrowings and transaction costs (1,139,152)

Finance cost paid (104,517)

Dividends paid to non-controlling interests (16,154)

Buy-back of shares by the Company and subsidiaries (368)

Proceeds from issuance of perpetual capital securities of a subsidiary 4,389,617

Restricted cash (deposits pledged as borrowings and interest payments) 623,705

Proceeds from bank borrowings 198,914

Other financing activities 16,977

NET CASH FROM/ (USED IN) FINANCING ACTIVITIES 3,969,022
NET INCREASE IN CASH AND CASH EQUIVALENTS 4,237,019
CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL PERIOD 13,235,748

This is a cash flow statement of the Genting group showing a positive number for the company. As a result we can find out that the economy is benefiting from this increase in economic welfare. [15]

Plans for the Future

The definition of the future of tourism which seeks to identify ,analyze and evaluate possible future developments .futures research ,using various forecasting techniques, is of growing importance in many fields, including travel, tourism and hospitality ,in providing a basis for decision-making . [16]

Since the World Tourism Organization (WTO) on December 23, 2003 was formally accepted by the United Nations special institutions and enjoy the same rights and obligations with UNESCO, the International Labour Organization, the World Health Organization Special institutions, tourism in international politics universal recognition of governments around the world with an important role in the world economy has been gradually.

According to the Malay government tourism policy, we can see that the future prospect of Genting is still very dominant. A national tourism policy was formulated for 1991-2000 to provide long-term strategies for an integrated develop

Virgin holidays began its operations in the year 1970 not offering holiday packages but instead it used to offer order records services and was also a school magazine for students (Kegan 2010, par 3). Since the year 1970 virgin has grown rapidly due to its new and viable business ideas that have seen it sore into great heights, the great performance of virgin can be attributed to good management decisions made by the persons responsible for making such decisions (Kegan 2010, par 3). Through all this time, the holiday company has been discovering and exploiting new market opportunities, they have always brought up new and fresh ideas that are new in the face of holiday touring. The company ensures its success by offering high quality products and services and also establishes a market which the consumer utility has not been maximized and goes in to fill the gap (Kegan 2010, par 3). Virgin currently deals with transport matters with regard to planes, cars and trains; the brand also offers services with regard to holidays, wines and mobile phones. The greatest development of the virgin group is the “virgin tour” this comprises of the travelling sector and accommodation (Kegan 2010, par 3).

With the development of technology and information, virgin is now offering services through the new technology, old products and services have been modified also to fit the current state of the art technology (Kegan 2010, par 4). Virgin brands have always kept the big market players at their toes. Virgin is known to be the third most known brand in the British world. However, virgin has recently increased its operations to the global level hence serving a bigger market. At this moment virgin has more than 300 companies worldwide and more than 20000 employees enjoying worldwide annual revenue of more than five billion United States dollars (Centre of Asia Pacific Aviation 2010, pp 2). The companies build up by virgin are autonomous. This means that the virgin holiday sector is independent from the virgin drinks sector (Centre of Asia Pacific Aviation 2010). With regard to holiday and transport, “Virgin” group has the airline Virgin Atlantic which was founded in the year 1984, the airline offers flights to over thirty worldwide destinations and has over 9000 employees, the airline can also be compared to the standards of the whole group since it is a major market player which has also invented and brought new products in the market. The airline has also been given credits for its exemplary services to consumers by winning top awards in the field of commerce.

The travel industry

The industry in which the virgin holiday is operating on can be split into two; the industry is affected in two way traffic (Kegan 2010, par 4). The company offers travelling services and also accommodation services, therefore the forces of demand and supply which prevail in the two sectors at a given moment can be said to be different. However, the difference is small and is brought about by those people who normally fly for commercial purpose and those people who prefer other brands compare to virgin holidays with regard to transport or accommodation (Kegan 2010, par 4). The travel industry can be splinted into three i.e. the planes sector, motor vehicles (taxi cabs) and train. The above three are affected by changes in the business environment that surround them, such environment is comprised of competitors, changes in economic trends, and changes in the market with regard to demand and supply. In Britain Virgin Atlantic airline is rated as the third best brand, though it has recently globalised its services and offers transport services to over thirty destinations worldwide (Kegan 2010, par 4).

Airline sector

With regard to the airline sector virgin Atlantic is faced with the very challenges which are being encountered in the airline industry (Centre of Asia Pacific Aviation 2010). This mainly includes competition from other market players, the economic recession and inflation (Centre of Asia Pacific Aviation 2010). Competition has not been easy with regard to the airline industry, the emergence of new airlines that offer high quality services and have great marketing strategies tend to outdo the current market players,. Competition in the airline industry also comes from already established airlines which control a huge market share which makes it hard to penetrate such markets. The completion is also witnessed with regard to the quality of the services offered by the airline (Centre of Asia Pacific Aviation 2010).

The airline industry has been faced with economic challenges which have greatly reduced the number of its operations hence impacting on its revenue (Kegan 2010, par 5). The most traumatic event that struck the airline industry is the recent global economic recession which reduced the number of persons travelling by air, the economic recession did not only reduce the number of passengers travelling by air but also saw to it that airlines scale down their operations hence reducing the number of flights taking place globally (Centre of Asia Pacific Aviation 2010).

The move to reduce the number flights and other operations was a very economic viable option since the cost of conducting such operations was outweighing the benefits considering the demand level in the market (Centre of Asia Pacific Aviation 2010, pp 31). This means that the demand was too low hence impacting on the level of supplies i.e. the supply was too high compared to the demand, therefore in order to maintain the equilibrium level of the demand and supply chain the airlines had to cut down their operations level. The economic recession also made fuel prices to rise hence increasing the amount of funds used in operations (Stevenson 2010, pp 4).

The airline industry also faced another main setback; the events of September 1999 really affected the income received from the airline industry (Stevenson 2010, pp 4, pp 4). The terrorist attack on the passenger plane made individuals worry about their safety while using the air as a means of transport (Stevenson 2010, pp, 4). Before this event the government intervention in the airline industry was very minimal but after this event, the governments started setting policies to regulate operations in the airline industry e.g. a third party insurance cover that will see to it that those affected n terrorist attacks and other accidents involving passenger planes are compensated accordingly (Stevenson 2010, pp. 5). The recently ended global economic recession saw to it that the price of crude oil increase hence forcing the airlines to increase the travel fare in order to cover for the huge costs incurred in operations costs such s the fuel costs. This also reduced the number of passengers travelling by air. This greatly impacted on the demand of services from the airline industry. The demand went down since the price increase in travel prices made customers to shy off and use alternative means of travel such as rail. This greatly reduced the revenue received by the airline industry (Stevenson 2010, pp 10). The changes in the economic status of persons around the globe resulted to a cost push inflation which saw operation costs in the airline industry go up due to increase in fuel prices and other thins such as plane maintenance and salaries to employees.

Land transport services

Apart from offering travel service by air means, virgin holiday offers inland travelling services by the use of trains and taxi cabs. However, the use of trains is not fully established in all the destinations that virgin holidays operate (Kegan 2010, par 5). The competition in this sector is very stiff, this is mainly because of the number of tour companies that offer services locally at a low price, and this greatly reduces the number of passengers who choose to travel by the use of virgin cabs and trains (Kegan 2010, par 5). This sector was also greatly challenged by the global economic recession; this is because of the high operation costs and low revenue generated. The increase in costs is mainly attributed to the rise in the fuel prices and energy prices and since these forms of transport depend on fuel and electricity it was hard to operate without the two (Kegan 2010, par 6). The main purpose for this part is to transport people from airports to accommodation facilities. However, in some countries it is used as a normal form of cab transport (Kegan 2010, par 6).

Accommodation

It is important to ensure that we analyze the accommodation part of the virgin holiday package. However, the two complement each other this is because the number of people accessing the accommodation services is directly proportional to the number of people using the transport services. The difference between the two is that they are affected by different business environments with regard to competition and the forces of demand and supply prevailing in the market (Kegan 2010, par 6). The accommodation sector of virgin holiday faces competition from well established hotels especially five star hotels and hotels offering conference services (Kegan 2010, par 6). The accommodation offered by virgin tour is limited to given extent, i.e. the accommodation offered is only to the extent of a place to stay and meals whereas there are other facilities offering additional services such as conference services. Even though the accommodation sector is autonomous from the travel sector, it greatly depends on the travel sector with regard to the number of passenger turnout and the class of passengers received by the airline (Kegan 2010, par 7).

The global economic recession greatly affected the accommodation industry in an indirect manner and directly as well, this is mainly because the recession led to the decrease of the number of people travelling for holiday purposes but to a certain extent the number of people who are travelling for the sake of doing business (Kegan 2010, par 7). Since the two sectors are complementary, the decrease in the number of persons using the air as a means of transport greatly reduced the number of people who are accessing the accommodation services offered by the airline, this is majorly because the people who use the accommodation facilities offered by the airline are the passengers (Kegan 2010, par 7). There is also a decrease as a result of the global economic recession which was brought about by limited funds (Kegan 2010, par 9). During the recession, many people had to cut down on costs due to the low income but high prices of products and services, therefore many people had to reduce the rate at which they access luxurious services and goods (Kegan 2010, par 9). The accommodation sector was also affected in terms of operation costs incurred, this is because of increased costs of products such as fuel and other effects needed to keep the accommodation facilities up to standards (Kegan 2010, par 8).

Virgin holidays SWOT analysis
Strengths

The company has a very strong brand image that has enable it navigate through completion and establish itself in the global market. The fact that the virgin holiday is part of the large virgin group that is recognized to be a well managed company with dedicated managers who not only serve the market with new brands but also high quality brands. The company is also enjoying a high number of people using the virgin Atlantic as a means of air transport for cargo and passengers. The increase in the number of passengers in the travel sector has a positive effect to the number of people using the accommodation facilities hence increasing the revenue. Apart from a strong brand image and increase in the number of passengers, the company has a good strong asset and capital base. The company also keeps on enjoying high revenues throughout its financial periods

Weaknesses

Despite the fact that the company has been enjoying a good financial position and a strong brand image, it has been experiencing a decrease in its market share in the United States, Jamaica, India and china. This is mainly because due to increased competition from upcoming firs and already existing firms. The company is also not in better position to control the market since it has majored only in thirty locations whereas other competitors have as much 150 destinations worldwide e.g. The British airways and Thai airways

Opportunities

There has been an increase in the number of people travelling by air especially in the continent of Asia. There has been an increase in the number of passengers travelling by air in Asia due to increased economic activities in countries such as china and India. Virgin Atlantic as the main carrier for the virgin group has an established market in this area and hence stands a chance to increase the number of passengers using the airline and the accommodation services offered. Another great opportunity witnessed by virgin Atlantic is their partnership with All Nippon Airlines which has given virgin Atlantic the chance to carry passengers to Japan, this new initiative will enable virgin holidays to expand its services to this new location both travel and accommodation.

Threats

Virgin Atlantic is facing a scandal which could affect the position of virgin holidays in terms of consumer confidence and cash flow from the company (Kegan 2010, par 9). This is because the company is facing an allegation if proved to be true it may have adverse effects to the airline and the virgin group at large (Stevenson 2010, pp 11). This is after an investigation on price fixing was begun by the European Union and the United States department of justice to see whether the allegations that virgin Atlantic was involved are true (Stevenson 2010, pp 11). If the allegations are proved to be true, then they will be forced to pay a fine (Stevenson 2010). This will not only impact on the financial position of the company but also consumer confidence will be affected negatively (Stevenson 2010, pp 13). Another threat being experienced by the virgin holidays is the increase in the cost of fuel which affects the operation costs of the travelling department (Stevenson 2010, pp 17). This forces the airline to increase the fare for travelling to different destinations hence decreasing the number of people using the travel services due to lack of sufficient funds or the thought that they are being exploited (Stevenson 2010, pp 17). In the world there have been terrorist attacks on airplanes for example the events of September 30th 1999 which saw planes get bombed by unknown terrorist, this inculcated fear into the hearts of people who use airplanes as a mode of transport hence reducing the number of consumers (Stevenson 2010, pp 17).

Virgin Holidays PEST analysis

A quick look at the political, social, economic, and technological environment surrounding the company shows nothing other than a series of changes that have affected the company with regard to the four aspects of life.

Political

Just like other institutions, virgin holidays operate in an environment with political changes and rules. The airline industry has experienced currently too much political interference and virgin is no exception (Butler 1998, par. 15). The event of September 30th 1999 saw the interference of the status of the airline industry by the governments so as to curb terrorism with regard to passenger planes (Butler 1998, par. 15). For example, the United States government issued a directive that forced all passenger and cargo planes to have a third party insurance cover which will enable the persons injured or dead in a plane due to the negligence of the owners to seek complete compensation (Butler 1998, par. 15). The virgin holidays has also witnessed political events in relation to the deregulation of the airline industry so as to let the fare prices be determined by forces of demand and supply instead of prices being fixed by the government (Butler 1998, par. 15). At the moment virgin holidays is facing a great problem because of the laws enforced by political institution, the United States Department of Justice and the European Union are trying to look into an issue which virgin Atlantic is involved with regard to fixing of cargo transit prices (Butler 1998, par. 15).

Economic

The company has been affected by many changes in the economic aspect of life, for example the recently ended global economic recession which left the airline industry at a very bad position financially, the global economic recession lead to the decrease of the number of people using the air as a travelling mode since they had to look for cheaper means so as to fit to their current economic status (Camilla 2006, pp. 23). The economic recession also affected the accommodation sector since many people were trying as much as possible t access goods and services that will be costly to which is not favorable with the low income being received during the recession (Camilla 2006, pp. 23). The firm is also surrounded by many economic opportunities such as the funds to enable it expand its operations further just like other global airlines, this will to a great extent increase its revenue. The company is experiencing different economic situations with regard to geographical locations, for example the demand for airline and travel services in Asia has greatly increased due to the increase in the amount of economic activities taking place in the continent compared to other continents (Camilla 2006, pp. 23).

Social

The social aspect of life is majorly concerned with the cultural beliefs of a given group of persons, since the company operates worldwide it should be able to operate in ach are in a way that syncs with the cultural beliefs of the people living in particular area (Paul 2000, pp 64). It is important for the company to maintain cultural practices of the society since it has a very positive impact, not only to the company but to the society at large, preservation of cultural practices can also be seen as a form of cooperate social responsibility (Paul 2000, 64).

Technology

The airline industries have utilized the availability of the internet as an investment ground. This is greatly characterized by the many advertisements and other information placed on the internet concerning the respective airlines. Airlines have resolved to market themselves through online websites that are believed to be commonly visited by their target markets. The airlines also develop their own websites which give information about the services that they offer and other activities conducted by the airlines. The airline industry also utilizes the current technology by making placements in movies and using celebrities to market their products and services. The availability of the internet as a major technology tool has also seen the introduction of online booking services. These services enable the consumers to book for a flight from anywhere in the world without having to physically visit the airlines offices to acquire the tickets. The use of the internet to advertise products and to offer booking services is a very brilliant since most people this days access the internet, this greatly creates consumer awareness of the products being offered by the airline (The Economist 2010, par 3). The using of online booking services attracts many consumers hence increasing the demand for air travel services; this is because it helps the customers to cut down on the costs they incur when it comes to booking expenses (The Economist 2010, par 3).

Appendix
SWOT analysis diagram

SWOT Analysis

Strengths

Weaknesses

-Strong brand image

-Increased passenger and cargo traffic

-Strong financial position

-Declining market share in key markets

-Lack of scale

Opportunities

Threats

-Expanding passenger traffic in Asia

-Increase in trans-pacific cargo

-Partnership with ANA

-Cargo price-fixing investigation

-Rising aviation fuel prices

-Terrorist attacks and scares deter passengers

from flying

Virgin Holidays

Economy

Demand and supply

Economic recession

Technology

Online Booking

Travel agencies

Social

Corporate responsibility

Cultural practices

Political

Deregulation

Policies

Source: Centre of Asia Pacific Aviation

PEST analysis diagram
TABLE 1: Top 25 Global Airlines Revenue 2006

Airline Lists

2006 Revenues (Million US)

%

Air France KLM

28,945.00

10.28

Lufthansa

24,903.70

8.85

AMR Corporation

22,563.00

8.02

Japan Airlines System Corporation

18,905.40

6.72

UAL Corporation

17,882.00

6.35

Delta Air Lines, Inc.

17,171.00

6.10

Continental AG

13,128.00

4.66

Northwest Airlines Corporation

12,568.00

4.47

All Nippon Airways Co., Ltd.

11,765.80

4.18

US Airways Group, Inc.

11,557.00

4.11

British Airways Plc

10,654.60

3.79

Qantas Airways

10,272.20

3.65

Singapore Airlines Limited

9,119.30

3.24

Southwest Airlines Co.

9,086.00

3.23

Air Canada Inc

8,934.40

3.17

Korean Air Lines Co., Ltd.

8,328.60

2.96

SAS Group

8,236.90

2.93

Cathay Pacific Airways Limited

7,823.80

2.78

Emirates Group

7,423.20

2.64

Iberia

6,473.80

2.30

Alitalia-Linee Aeree Italiane S.p.A.

5,927.50

2.11

Virgin Group

3,518.10

1.25

TAM S.A.

2,515.50

0.89

Air India

2,060.80

0.73

ExpressJet Holdings, Inc.

1,679.60

0.60

Total

281,443.20

100.00

Source: Centre of Asia Pacific Aviation

Virgin Atlantics Airways
British Airways
British Midland Airways
Continental Airlines
American Airlines
Delta Air Lines
Founded

1984

1924

1949

1934

1930

1928

Parent Company

Virgin Group

British Airways plc

BMI

Continental AG

AMR Corporation

Delta Air Lines, Inc.

Owner

Virgin Group 51%, Singapore Airlines 49%

n/a

Sir Michael Bishop 50% , Lufthansa 30% ,SAS 20%

n/a

n/a

n/a

Head Office

Crawley, England, United Kingdom

London, United Kingdom

Castle Donington, England, United Kingdom

Houston, Texas

Fort Worth, Texas

Atlanta, Georgia

Hubs

London Heathrow Airport

London Gatwick Airport

London Heathrow Airport

London Gatwick Airport

London Heathrow Airport

Manchester Airport

George Bush Intercontinental Airport (Houston)

Dallas-Fort Worth International Airport Miami International Airport

Hartsfield-Jackson Atlanta International Airport

Alliance

ANA

Oneworld

Star Alliance

SkyTeam

Oneworld

SkyTeam

Number of Aircrafts

As of Aug 2007 / 38

As of Sep 2007 / 235

As of Nov 2007 / 50

367

As of Aug 2007 / 653

As of Feb 2007 / 443

Destinations

30

222

51

292

158

332

Target Market

Upper class and economy class

n/a

n/a

n/a

n/a

n/a

Management

Richard Branson (President)

Stephen Murphy (Chairman)

Steve Ridgway (CEO)

Willie Walsh (CEO)

Nigel Turner (CEO), Sir Michael Bishop (Chairman)

Larry Kellner (CEO)

Gerard Arpey (CEO)

Richard Anderson (CEO)

Edward Bastian (President)

Employment

Over 9000

42,755

4312

43,770

86,000

51,300

Fiscal Year End

April

March

December

December

December

December

Number of Incidents and Accidents

3

7

2

19

29

13

Scheduled passenger services

Offer

Offer

Offer

Offer

Offer

Offer

Cargo handling

Offer

Offer

Offer

Offer

Offer

Offer

Aircraft maintenance

Offer

Offer

None

n/a

n/a

Offer

Leisure travel services

Offer

Offer

None

Offer

Offer

Offer

Source: Centre of Asia Pacific Aviation

The following internship report represents my learning and working experience, during my internship in Hotel Pak Continental. The report includes an overall glance of analysis of the hospitality industry and also the operational analysis of Hotel Pak Continental i.e. how they manage to do their work and complete their task in time.

This report is based on personal analysis of my abilities and also about what I have learned about personal ethics. The report includes my personal analysis of my abilities and also about what I have learnt so far about the professional ethics.

I chose hotel Pak continental Islamabad for doing my internship as I was interested to work in the hospitality/service sector and to learn that how different departments work in this sector. I had interest in working in the hospitality industry and this was also a big reason that why I had choose hotel to do my internship. I think that in my point of view there is a huge scope in the hotel industry in Pakistan as there are figure countable renowned hotels that are working in Pakistan. While working in the hotel I learn to manage it gave me a chance that how things are managed in a short notice and what circumstances are taken by the hotels to satisfy its clients and how guest complaints are entertained.

Doing my internship there it improved enhanced my exposure to meet and interacted communicate with different clients and used different tactics to satisfy them. As I worked in sales and marketing department, I experienced how two different departments are controlled operated under the supervision of a single person. Overall it was a wonderful very good experience for me to work in Hotel Pak continental.

Internship Letter
INTRODUCTION

Background of Hotel Industry:

The hotel business is quite rapidly flourishing divisions of the economy. The hotel industry solely is a multi-billion dollar and developing enterprise. It offers unlimited opportunities as well as it is an active and exciting field. The hotel industry is diversified in nature so it allow different people from different interest to work in various segments of the hotel at different The hotel industry is diverse enough for people to work in different areas of interest and still be employed within the hotel industry. This movement is not just in a single country, but all around the globe.

The hotel industry is a mature industry marked by intense competition. According to a survey today around 15% of working population of the world is engaged in the hospitality industry. Hotel today not only caters to the basic needs of the guest like food and shelter but in addition to that they also provide much more than that, like personalized services.

“Hotels today are a “Home away from home”.
Vision

To build trademark with defined, reliable product standards via extraordinary personalized packages, exceeding expectations, and creating a connection to our brand in the experiences we offer.

Mission

To accomplish our commercial objectives while certifying supreme quality and service to our clients.

Core values:

The following are the core values of Hotel Pak Continental.

Exceptional Service

Integrity

Respect

Continuous Improvement

Hotel Pak Continental is sort of a smaller luxury hotel designed to Satisfy the individual traveler seeking the privacy, Hotel Pak Continental the company’s smaller, luxury hotels designed to cater to the discriminating individual traveler seeking the privacy, personalized packages and elegance of a small Pakistani hotel. The owner of the hotel is Mr. HAJI GUL AFRIDI who is the Ex-senator. They offer a sense of reservation and indulgence. They provide exceptional food and beverages facilities, corporative environment, intimate and 24-hour personalized service. Since the opening of Hotel Pak Continental in 2003, Hotel Pak Continental has become known as a leader in the establishment and operation of dramatic luxury hotels. Hotel Pak Continental is a smaller, 3 star hotel. Hotel Pak Continental offers amenities of a 3 star hotel in room and has excellent food and beverage facilities and 24-hour personalized service.

Today, in the range of three star hotels, Hotel Pak Continental specifies in deluxe hotel including conference facilities and special services for the business traveler, HPC is operated in capital city of Pakistan, near airport and PIMS hospital and prominent resort area in Islamabad. Hotel Pak Continental has made a significant contribution to revitalizing the area and encouraging business.

Cataloguing & types of hotel

Hotel can be categorized into different categories or classes, founded on their operational standards. For example the type of housing they provide, location of the property, type of facilities provided, facilities given and the custom they provide to can help groups hotels today.

Economy hotel: It provides well-organized rationality private rooms with bath. The equipping and decor are acceptable to common of travelers. Food and drink service may or may not be obtainable.

First class hotels: They are extravagance hotels with excellent decor better than regular food and drink service, uniformed bell services. They often have 2 or 3 dining rooms, swimming pool, sanatoria etc.

Deluxe hotels: They are improved and offer more dedicated services than first class hotels. They also provide limousine facilities.

Traditional hotels: They have the basic idea of rooms with breakfast, bell desk facilities and the other usual amenities.

Motels: They are situated on highways. Guest is given space right outside their lodgings. The usually have a gas station / workshop involved to them.

Resorts: They are typically located in tourist sites like on rivers, foothills, forests, or the sea. They give more honor to sports proceedings freedom and re-creation events like achieves, tourism, venture sports, etc

Resident hotels: Where guest vacation for longer period, stay like weeks, months even years.

Casino hotels: They are hotels typically in traveller advertisements and mostly provide to people who are on holidays. Casino hotels like the name propose offer gaming services along with rooms.

Government Approved Hotels: These are the hotels, which power not have applied for star classification or small sufficient to find them in the list. Many of the nature remedies, cottages and hostels are government accepted providing a minimum level of housing services at far off places.

Commercial Hotels: These hotels bring largely to work-related customers and classically offer room facility, coffee-shop, eating room, cocktail living room, laundry and clean competence along with reception to PCs and fax accommodations.

Airport Hotels: They are located near to airports and are a appropriately situated to deliver any level of facility from just a fresh room to room service and they might deliver bus or limousine service to the air lines.

Conference Centers are planned to precisely deliver conference galaxy from clusters; they deliver all facilities and apparatus essential to grip agreements.

Economy Hotels deliver a incomplete facility and are known for clean rooms at low values conference just the undeveloped needs of tourists.

Suite or All-Suite Hotels are hotels which proposal expansive plan and project. Business persons like the location which delivers galaxy to effort and amuse isolated from the bedroom.

Residential Hotels used to be very common. The characteristic housing hotel proposals long term housings.

Casino Hotels are frequently fairly comfortable. Their chief determination is in provision of the gaming process. Nightclub hotels repeatedly proposal top name performing and outstanding restaurants.

Resort Hotels are the deliberate terminus of visitors, usually travelers. This is because recourses are situated at the marine or in the foothills absent from inner capitals. Resort hotels may proposal any form of performing to keep their visitors pleased and eventful.

Size:

Hotels can be identified according to their size and the accommodation level they are offering to their customers. According to this some generally accepted sizes of the hotels in the world are

The Small Hotels: Contains up to 150 rooms.

The Medium Hotels: This range of hotels consists of 150 to 300 rooms.

The large Hotels: Starts room 300 to 600 rooms.

The Extra Large Hotels: More than 600 rooms

Awarding of class of the hotel:

When awarding of class of the hotel is done there are a couple of things and standards mentioned below are taken into concern while granting star category to any hotel.

How many rooms a hotel consist

Elegant and relaxed environment

Rooms competence

Sanitation and Hygienic environment

Staff size and expertise

Variety of services

Amount of Restaurants

Bars and Beverage services

Concierge services

Accessibility to entertainment

Availability of transportation

Spa and swimming pool facility

Reservation and referral services.

Star classification of hotels

To prize a hotel a star requires few exact critical criteria which must be achieved by the hotel and moreover the grading up stage is also done on the basis of attaining those values in bright. It can be said that the hotel standing is dependent on the procedures it take to content the client. The well recognized classifying of the hotel are done in costars which remain by way of tracks.

One star (*)

Two star (**)

Three star (***)

Four star (****)

Five star [*****]

Five star deluxe (***** deluxe)

One Star Group

The hotels with basic facilities, minor number of accommodations. These hotels are best when customer is looking for cheap available housing choice.

Two star categories

These hotels are mostly presented in the small cities and in specific parts of larger cities. These hotels deliver all basic services required for general lodging and offers lowest charges.

Three star categories:

Three star hotels are those which having good architectural landscapes and should be good parking facilities. At least 50 % of the rooms will be air conditioned also nice decor and having well trained staff. They should provide you hygiene and sanitation facilities.

Four star Categories

Rank below five star hotel but giving you Hi- Fi facilities are four star hotel, where travellers have a limited budget they use to go four star hotel. Quality of services as like five star hotels

Five star categories:

Five star groups are only chosen to belongings, which have all the potentials of a three star stuff and a few added. Similar the entire stuff must be fully cooled. The structure of the stuff must be an good-looking unique. All the lodgings must be roomy. The stuff must have good banqueting ability, commercial center. Good and well-maintained swimming pool and fitness club a sanatorium is elective

Five star deluxe categories:

There are just like as five star place having just difference in this is on large scale. Five star deluxe categories preserve a high trained staff to maintain a high level of services. They have 5 to 7 dining rooms, bar, 24-hour coffee shop, sanitations, banqueting services, fitness centers, business centers.

1.2 Objectives:

The objectives if the Hotel Pak Continental are

Establish and maintain high standards of leisure and comfort.

To satisfy customers by delivering quality service and through customization of quality products

1.3 Organizational structure

Pak continental organizational structure is as follows

G.M &

Administrator

Sales &

Marketing

Manager

Finance

Controller

House keeping

Manager

Food &

Beverage

Manager

Room service

Manager

Front desk

Assistant sales manager

Finance manager

Assist. Finance

Manager

Accountant

Supervisor

House keeping boys

Assistant

Manager

Captain

Day manager

Night manager

Assistant marketing manager

Waiters

Assistant Manager

Order Taker

Receptionist

Receptionist

Telephone operator

Bell boy

Telephone operator

Bell boy

1.3.1 Description of the departments

Food and Beverage F&B Department: F&B department deals with the services related to food and beverages. Diverse segments are there in F & B like Restaurants, Bar, Banquets, Specialty Restaurants, Coffee Shop, Room service etc. This department also provides Utility services (Cleaning).

Food Items Production Department: This department deals in the preparations of food items. This is mostly involved in the arrangement of those dishes, which the guests have ordered and then F and B department caters it.

Front Desk Office Department: The front Desk office undertakes the reservations, record keeping of guest’s accounts, and inspection of guests. Distribution of guestroom keys and post, memos or other info for guests are also tackled by the front desk managers.

Housekeeping Department: Housekeeping is responsible for the cleaning of guestrooms and public areas. This department contains the largest no of staff, which consists of an assistant housekeeper, linen area attendants, room inspectors, room attendants, a house person crew, and employee uniforms in charge. The laundry and valet gear may be only used for hotel linens and uniforms; they usually send guest clothing to a specialized and private service where it can be handled professionally.

Marketing Department: Sales and marketing plays vital role in the functions of the hotel business and is an important part of hospitality business. This department is involved in packaging for selling, sales promotion, and advertising. The marketing department is responsible of keeping the rooms occupied at a good price.

Finance/ Accounting Department: Accounting department manages many business transactions that occur, on daily basis. This department does more than just keeping books; it can also be called finance management, which is probably the right description of this department. However the control department handles cost control plans by way of decreasing in investment, decrease in operating cost, control of food service costs, beverage costs, and labor cost etc.

Administration Department: Top executive associates usually manage the Admin Department in the hotel. This department is accountable for work related with administration, employee’s wellbeing, health check and safety

1.4. Products and services

The hospitality industry covers a range of businesses that deliver services and amenities such as accommodation, food and beverage, entertainment, gaming and other products. Hotel Pak continental is a company of hospitality sector and mainly it’s is offering

products in term of food

services in terms of rooms and halls to stay and enjoy

Where these two main categories are further explained

Services

Events facilities at Hotel Pak Continental: HPC Islamabad has a number of halls for parties, marriages and conferences. Hotel’s dining and banqueting rooms are designed to offer maximum flexibility, together with up to date technical and lighting facilities. This certifies that even the most delicate event can be accommodated; the hotel also offers smaller private occasion.

Banqueting: No matter what the purpose or scale of the event, from the VIP breakfast for guests to a wedding ceremony. HPC is being able to host every possible dining and banqueting occasion at the greatest leisure and style. The customer can confidently trust the hotel’s highly qualified Banquet team, which can meet all their needs. This service, will ensure that the event is truly a memorable one.

Services: HPC provides complimentary airport shuttle service including travel desk facilities. HPC also have links with other hotels to all major international cities Within Pakistan, Pak Continental Hotel offers 4star deluxe service.

Other entertainment facilities: The hotel facilities are:

30 Channel Satellite TV

In-house movies

Fax machines in all suites

executive club’s rooms

International direct dialing

Exclusive electronic safes

Non-smoking floor

Centrally air-conditioned environment

Beauty Salon/Barber Shop

Shopping arcade

Rooms and residence: The 10 guest rooms comprising of 18 Executive suites, four super deluxe suites and 15 Executive Rooms are all designed to provide the utmost in comfort. All rooms are equipped with satellite television, in-house movies and modern amenities. In fact, every facet and facility required by the discerning traveler is catered to. The room division offers the ultimate in luxurious living with 24 hours in – house movies, satellite music and 30 channel satellite television networks.

Room Service operates round the clock caring for all the travelers’ needs. Fulfilling the smallest of requests to urgent needs, the room service assures in-house guests of the best quality of assistance. Personal facsimile machines are available in all suites and executive club’s rooms ensuring complete privacy and confidentiality. Business Centre & Secretarial Services are also available throughout the day and upto midnight.

Exclusive Executive: Business guest can also enjoys club facilities. The Executive Club offers special butler service and entree to an Executive Club lounge where continental breakfast is served for the guests. Exclusive club offers refreshments and light snacks, through out the day.

Hotel Pak continental also entertain its customers by giving seasonal packages of

wedding

Ramadan

1.4.2. Products

Besides these the above services following facilities are available for the guests:

40 fully equipped rooms

Wedding hall Hina

Wedding hall Sana

Conference hall Arosa

Conference hall Chandni

Authorized Money Changer

Business Centre

In-House Doctor

Pharmacy

Car Rental.

Learning & experience

2.1. Finance Department:

The Finance Department in the business is one of the most significant sections, as it assistances in providing the financing and accounting data important to make numerous choices. However, this department has a part that contains a number of responsibilities.

Records Maintenance:

The finance Department is answerable for keeping record of all sales and investment spending at a business.

P&L Statement:

Another duty of the finance department is to deliver organization with a profit & loss statement that will display the overall strengths or weaknesses of a business.

Inform Executives:

Manager needs the most present facts to make the finest decision for their sections. The Finance department has a responsibility to deliver them with the maximum perfect and well-timed facts possible. This would contain information such as costs to create a product.

Financing:

The finance department shows an essential role in serving the business obtains the essential financing it requirements, how the money will be funded.

Consideration:

Finance department are a main part of all governments also businesses, such as universities, charities and governments and hospitality etc.

2.1.1. Limitations of the work:

There are some limitations which I faced during the Internship program, which are described as under:

The time period of (eight weeks) was too short for learning experience.

Staff members avoided to give all information. They kept most of the data secrets. So it was very difficult to collect the relevant information.

Manager and other staff members have their own task to do and it was a great problem for them to spend time with internee.

Lack of co-operation by some employees

Lack of accuracy of the relevant data.

The grade staff was not properly trained therefore they have not answered accurately.

Instead of all these difficulties I have completed this work with full cooperation of few managers specially Manager Mr. Ajaz Ahmed who provided most of the required data and information.

2.1.2. What I learnt during internship;

I learnt the answers of following questions during practical experience of internship

What is financial management

Why accounts are maintained

How payments are made

What is cash book

What is utility and importance of accounting information

Role of accounting information in policy making and planning of the organization

Arrangement of finances and making policy and principle of fruitful utilization of funds is financial management. Accounts are written record of receipt and payments. Keeping account is essential for preserving record of receipts and payments and providing accounting information to stakeholder and policy maker for planning and policy making. All payments are made after obtaining sanctions of competent authority and duly supported with vouchers. Payments are made through Cheque. To ensure the accuracy of account reconciliation of all payments and deposit in bank is made with bank on monthly basis. Following books of accounts are maintained.

Cash book

Ledger

Budget register

Register if income/receipt

Register of advances

2.2. Internship duration and Rational for Selection

My internship covers a period of 8 weeks starting from 27th of June, 2011 to 26th of August, 2011. As I have interest in in the field of marketing so it was a very experience for me to work in the Marketing department and was easy for me to understand various marketing and sales concepts and techniques which were practically used there. It was all over a new experience for me to use those methods to solve the tasks assigned to me. During my internship in the hotel I got a chance to practically apply my knowledge to solve the tasks. One of the reasons why I choose Hotel to do my internship was that in my point of view the hospitality industry has a huge scope in Pakistan. It is a diamond mine waiting to be explored.

Task performed in finance department

I learnt the answers of following questions during practical experience of internship

What is financial management

Why accounts are maintained

How payments are made

What is cash book

What is utility and importance of accounting information

Role of accounting information in policy making and planning of the organization

Arrangement of finances and making policy and principle of fruitful utilization of funds is financial management. Accounts are written record of receipt and payments. Keeping account is essential for preserving record of receipts and payments and providing accounting information to CEO and policy maker for planning and policy making. All payments are made after obtaining approvals of competent authority and correctly supported with vouchers. Payments are made through Cheque and cash. To ensure the accuracy of account reconciliation of all payments and deposit in bank is made with bank on monthly basis. Following books of accounts are maintained. Cash book

Ledger

Budget register

Register if income/receipt

Register of advances

Task performed in the sales and marketing department:

I have performed almost all the tasks at sales and marketing department. The description of job which was provided at orientation (start of the internship) time was consisting of the following tasks which I had performed there:

Sales visits.

During the internship I visited various organizations in which we were visiting for the first time and some of them were our clients and we visited them just for the courtesy so that they may visit the hotel soon and give it some business.

The learning point in this task was the convincing discussion we had gone through with the clients and I got a chance to get an idea how to use different tactics to get a business.

Marketing visits:

With the manager and sometimes with his assistant we visited the market to analyse the ways to attract new customers. As Ramadan was heading in August so in order to launch the Ramadan scheme we visited the market to get an idea what other hotels were offering.

Sales Calls

In the mean time of my internship I also got the training of making sales calls. It was interesting in a way that we call to new companies and discuss with them our products and services and the best part was the patience required for making the customer to get agree to avail our product. Most of the times it happened that the customer agreed on the phone and when we made a sales visit it totally refused our offer.

Courtesy calls.

In the internship I was also trained to make courtesy calls in order to retain our old customers and to tell them about any new package which we were going to launch in the future.

Customer record, billing and recovery:

This was the part of my internship which was directly related to my MBA. As I am a finance student so I also got the training of:

maintaining the customer record

issuing them letters for the outstanding of their accounts with us

recovery calls and visits

recovering the amounts

reminder letters

By doing all the above said tasks I learned a lot about how to move in the organization and how to work in the tensed environment. Before doing the internship I had no idea how the courtesy is used and how this is difficult to make any organization our customer. The tasks which I performed there in the hotel were a bit different which we are taught. For instance sales and marketing are two separate departments in the books but in reality both departments are working under one head.

I learned how to use my patience and how to make a new company client of the hotel. The biggest key point I learned was the presentation of myself in front of executives of the organization. Recovery of the outstanding amounts and giving discounts also help me in increasing my information that how all these things are done in the real business life.

2.3 SWOT Analysis of Pak Continental Hotel

SWOT MATX

Strengths

Weaknesses

Opportunities

Threats

Strengths

Became a strong and established brand name in a limited tenure of 9 years

It is near to Islamabad air port about 15 minutes drive.

Have a bright name in the category of 3 star hotels in Islamabad

Using banquet facilities with complete range of audio- visual equipments.

Giving catering services at your door step.

24/7 doctor available on a single call.

Standby generator for facing the power shortage in the country.

Spacious car parking, rent a car service and tour information services.

They also have lift facility

Weaknesses

The site of the hotel can be said as a weakness for the hotel. As it is situated in a market yet the area is surrounded by motor workshops and a car showroom which is a point customer hesitate to come to the hotel.

Another weakness can be its short time period of existence in the sector of hospitality where there are people sitting for more than 40 years.

Limited room space can be said another weakness for the hotel. With the emergence of other hotels of same category like Envoy continental hotel Pak continental need to look upon in increase their residence facilities but they are bound not to do it because of cost and space constraints.

Opportunities

By introducing more packages like wedding and for Ramadan Pak continental can increase its customer ship.

By introducing memberships for the business as well as for general public the hotel can increase its business.

By making affiliations and doing contracts with renowned boutiques and and dress designers it can arrange events which will attract the customers and will help in increase in the market share of the hotel.

With sponsoring different local events like Basant and musical nights the hotel worth will increase in the eye of public which will help it to increase in the profits.

Some special packages introduction in the hotel products like giving discounts to the newly wed couple and on birthday parties will increase the customer ship of the hotel.

Threats

Increasing competition can be said a vital threat for the hotel as new hotel like opening of hotel De Pape’, Rose garden and Envoy continental which are situated in the same region are a threat for Pak continental.

lawlessness due to the suicide bombing in the recent years have adversely effect the tourism sector causing decreasing in the business of hotels.

As Pak continental is a three star hotel and it has already a limited market and due to the global economic recession the buying power of the customer has decreased affecting the hotel industry adversely.

Recommendations

After this comprehensive report on the hospitality sector, I came up with some suggestions for Pak continental hotel to tackle with the existing conditions and as well as to cope with the merging competitors in the sector.

Pak continental should enhance its business by introducing new products

Hotel should give time to time promotions to retain its customers.

It should also consider the restaurants one of its competitors

New hall and lobbies should be constructed.

Human resource management is the merging new sector in the world and the hotel is lacking in the department so it should introduce a H.R department in it so that the optimal use of the employees can be made.

There is a deficiency observed in the hotel about training its employees and conducting work shops to enhance their working capabilities. HPC higher authority should also consider employee training in their near future plans

Conclusion

I would like to conclude that I have been given a great opportunity in my to work in a the hospitality sector, and in a private organization. While learning and gaining a professional experience, I enjoyed there and it was the time when I felt independent, confident, responsible and realized my decision making power.

The aim of my internship was to get a practical experience and exposure the difference between the theoretical things and the practical implementation of them. I have exercised what I have learned during my MBA. I have learned that how organizations are different and how they are compete each other on the cut t

Introduction :

Nowadays, hospitality and tourism is one of the largest economic activity in the world, became an economic sector has an important role for economic development, national society of the world. This is a smokeless industry, it earned foreign currency for many nations and it is also an economic unit with the fastest growth in terms of creating jobs.

In the future , hospitality and tourism industry affected by many factors to the success, outside the natural conditions of the country , besides have to mention the increased promotion of tourism products, using information technology to promotion of national image for international friends, create favorable conditions to reach customers.

Besides , social factors, technological factors, economic factors, ecological factors, political factors is also effect to hospitality and tourism . Among them , technological factors which are considered important factors in the development of hospitality and tourism .

The body :
Website and internet in promoting tourism and hospitality?

The popularity of information and communication technology to access information on travel and booking easy, fast and cheap. Promoting the advantages of the development of information technology, the use of the site aims to transmit information on tourism to the tourists , specializes in disseminating information about tourist sites and tourist tours. Besides these sites were built and developed with the aim of propaganda tool, promoting the image information on hotels, meeting the online booking search free.

One symbolic example of the use Internet to promote tourism that is program ” To improve the quality of services – Ho Chi Minh City – 100 interesting things” in 2009 , organized by the Department of Culture, Sport and Tourism Ho Chi Minh City . That program select the tourism product unique and attractive ,way to build the tourism products typical nature to introduce with domestic and foreign tourists, to improve the image of Ho Chi Minh.

100 interesting things about :

10 VIETNAMESE BOUTIQUE SERVICES HOTELS

10 AUTHENTIC AND ATTRACTIVE FOOD WITH VIETNAMESE FLAVOR

10 MOST DISTINCTIVE SOUVENIRS OF VIETNAM

10 BEST TOURIST SHOPPING PLACES

10 VIETNAMESE MUST-TASTE

10 MOST UNFORGETTABLE SITES

10 STYLISH COFFEE SHOPS

10 PROMINENT CULTURAL, SPORTS & TOURISM EVENTS

10 MOST FAVORITE CITY TOUR PROGRAMS

10 EXCITING ENTERTAINMENT VENUES

After the votes are 100 interesting things, they conducted to promote products to domestic and foreign tourists through website Ho Chi Minh City 100 Excitement .

This is a typical example, through the use of information technology to help international friends should understand the tourism industry in Vietnam , besides, also help visitors have a exactly choice of travel products.

With hospitality industry , using web site and internet contributed in bringing a market advantage , easier to manage the growth of restaurant and customer needs. It help customers shorten time looking for information about destination , booking room , where to eat , where have entertainments aˆ¦ all that information is already in the website . Web site poses a lot of information about hotel , restaurant and travel agency , when customer submit that information , they can choose goods or services which make them satisfy.

When you sign in the web site of Sheraton Saigon Hotel and Towers , you will feel satisfy with a lot of information about overview of Sheraton hotel , photos , feature and activities and a lot of convenience . In there web site always appear reservation in spite of you change another page of this website , it make easier when customer want to book online in all time. Besides , that web site also provide important information as promotions, special offers , special prices , discounts , coupons aˆ¦ This website also provides name of all restaurants in Sheraton Hotel and introduce the visitors when they should drink or eat and what they should drink or eat , it also provides time open and close of those restaurants , cuisine and atmosphere , so the visitors will have a lot of choice in their trips.

In addition, that web site provide information about weather , local area map and transportation of Ho Chi Minh City . Thus , visitors want to visit Ho Chi Minh City will to feel secure when sign in web site of Sheraton Hotel because that have what they want .

One more web site provide online reservation systems worldwide (Global Distribution System – GDS) , that is Genares (www.genares.com) , visitors use GDS can reservation hotel around the world . Only create account on GDS , the customer will find information about history of the hotel , price of every room , and discount priceaˆ¦ Service of Genares bring a lot of advantage for visitors , it connect with more than 1000 tourism websites all over the world .

So that , information about restaurant or hotel on web site will bring important sense in developing and maintaining quality of customer. The content must be offer meaningful information and visitor satisfaction so that they will come back to visit.

Software in managing tourism and hospitality :

One of most important factors more to contribute to the success of hospitality and tourism industry that is management . Addition , the software and applications helps management better , easier , most attentive and more resourceful .

With POS ( Point of Sale ) , it was be built when restaurant operators looking for the way to serve their customers better , manage employees easier and control transaction food and beverage exactly . Functions of POS system include : decreased service time , order accuracy ,security of cash transaction, reduced training burden , performance control, sales reporting , reduced theft aˆ¦ In general , POS system focus three functions : Sales management, Purchasing management, Storehouse management .

This system help manage daily activities , from order food and beverage , guest-check settles to transaction by credit card . It also save the time for employees , can solve needs of customer fastest . So that , all departments of hotel have POS system such as restaurant , kitchen ,the bar aˆ¦

Sales management :

Functions include Customer Information Management, Information Sales, Sales Management, Debt of customers and take care customer better . Besides , this function also support sales department can care customers better through customers debt and number of transaction of each customer.

With Sales management , when customers order food or beverage, cabin crew recorded by handheld devices or enter directly at the POS machine. Information will be checked and moved to bartender or kitchen to make food or drink .Special , food or beverage can be order follow request of guest and they often completely satisfied with service.

Besides , managing employees very important to serve guests , there fore, the control of working time of employees , restaurant is very flexible in regulating together . The manager can know sales , tracking accounting , management of food inventoryaˆ¦and the manager will have plans to import food or beverage reasonable , avoid damage and loss.

Purchasing management :

With purchasing management, order depend on inventory , purchase , storehouse and payment cost of purchasing .

Besides , manager can know goods are purchase by who suppliers , how much the price and sold to whom , manage inventory for each item ( if there are a lot of items ).

Storehouse management :

Besides the functions as export , import , conservation , it also provides more convenient to manage many items of goods .

The conclusion :

As a part of tourism industry, MICE increasing generates significant amount of revenue worldwide Hing, McCabe, Lewis, Leiper, 1998; Mistilis dwyer, 1999. MICE are an acronym for the meetings, incentives, conferences and exhibitions which is powering ahead as a key growth driver. Asia has been one of the front compare to other country such as Europe and North America. Singapore, in particular has been no exception. The MICE industry is a vital pillar and economic contributor of Singapore’s tourism industry. Singapore’s tourism sector is gearing up for major revitalization through a host of new tourism developments and attractions which will re-define Singapore’s tourism landscape. (http://espace.library.uq.edu.au)

Singapore has the first class conventions and exhibition facilities such as SINGPORE EXPO and Suntec Singapore international convention exhibition centre. Moreover Singapore have excellent communication infrastructure, it’s made travelling from one place to another domestically and internationally. Singapore’s expert business environment, vibrant and multi-ethnic landscape, strategic geographic location, good global connectivity and multi- lingual populace has drawn many business travelers choose to do their business tourism at Singapore and complemented by state-of-the-art MICE facilities, infrastructure, expertise and professionalism in event management. (http://mice.yoursingapore.com)

Singapore is working hard to stay on top of the competitive business events arena. From year to year, Singapore’s MICE industry has grown significantly and now Singapore is ranked among the world’s top three cities for meetings by the Union of International Associations (UIA). Beside this the latest ICCA Ranking has positioned Singapore as the Top Convention city in Asia for ninth time and the Third Top Convention City in the World for the second consecutive year. Singapore has leapfrogged two score to reach the top position, beating Paris and Vienna and giving its goal to be the top of the world a boost. (www.tourism-review.com)

Findings

2.1 Critical Mass

There are few factors that influence Singapore as a major MICE destination in the world. The most important factor is it has critical mass; it has been awarded by the Union of International Associations (UIA). By developing a critical mass of MICE events in the industry, this strategy will create an eco-system of business events that complement one another’s presence. Business events not only will create vibrancy of the sector but also strengthens Singapore’s value proposition as a MICE venue. Singapore has the steady growth in the amount of international meetings and it has hosted for the past few years, a growth that show from the quality, and the creativity of the Singapore meeting industry. It makes Singapore continually attracts high- profile international business events. (www.visitsingapore.org)

2.2 Strategic Location

The second, Singapore has a strategic geographic location; it is also the key regional hubs for Asia, with its central location in Asia and a bridge between east and west. It makes Singapore attracts global businesses and it seamlessly connected to almost every part of the world. There were few exhibitions of different industries was held in Singapore such as Asia Aerospace, Food Hotel Asia, Communic Asia and Broadcast Asia and the responses was very good. Singapore is a safe and hospitable country, this is also a main reason event organizers choose Singapore.

Beside this Changi Airport has 80 airlines that connect to over 180 cities in 50 countries and Singapore’s port is the one of the busiest in the world and the country is classified as a premier International Maritime Centre. Its extensive air and sea linkages enable ones business to access 2.8 billion people within a seven hours flight radius. It is very much getaway to Southeast Asia. “Singapore’s position attests to its appeal as a premium business travel and meetings, incentive travel, convention and exhibition destination, “claimed the Singapore Tourism Board (STB). (www.mice.net.au)

2.3 Stability political and economic in Singapore

Singapore enjoyed a reputation of effective, honest and politically stable government. Singapore’s stability of political brings the trust of safe for people to choose to help the international event. Singapore is a knowledge-based economy and attracts multinational investments. It is open trade policies, social stability, world-class infrastructure and international communication links are some of the reasons why foreign investors flock its shores. The stability of their economic also will lead the amount of business travelers invest in promoting their own product in Singapore increase. The IMD World Competitiveness Yearbook 2008 cited Singapore as the world’s second most competitive economy. The economic growth and political stability is maintained by the government of Singapore, it helps to attract more people to choose to held their event at Singapore with no worries compare to their competitors Malaysia and Hong Kong. (www.euroasiaindustry.com).

2.4 Communication infrastructure

Singapore’s reputations for efficiency and excellent communication infrastructure have enabled it to attract a chain of international events including the Asia-Pacific Economic Cooperation (APEC) meetings in 2009 and the coming event will be the first-ever summer Youth Olympic Games which falls on 14th August 2010 to 26th August 2010. Singapore also attract tourist to contribute to its success as a leading destination for both business and pleasure.

Singapore’s efficiency and seamless through modern state of art infrastructure and latest technology leads Singapore MICE industry rapidly grow sectors in the tourism industry worldwide. Singapore has rated the top in terms of basic infrastructure and technology infrastructure in the World Competitiveness Yearbook. As we know that Singapore Changi Airport received awards consistently and also a leading air hub renown worldwide for its efficiency and rated the first in the world for Quality of Air Transportation in 2006. (www.guidemesingapore.com)

2.5 Pro business environment and Government support

Singapore well known for its PRO business environment and it’s suggested to be the most beneficial place in the world for entrepreneurs to start their business there. In facts, the World Bank has ranked Singapore as No 1 in terms of ‘Ease of Doing businesses for the past four years. In the latest Global Competiveness report, Singapore was ranked first in; ‘Intellectual Property Protection’ and the second in ‘Quality Infrastructure’. Among the most of the countries, Singapore is one of the lowest corporate and income tax rates. Singapore government has improve the rigid environment to help business operate more efficiently such as, it is only take one day to get hold of a business license and at a fraction of cost unlike other countries may take few months to get a business license.

Singapore has successfully clinched a good amount of association meetings by its strong business basics and plans to build a vibrant ecosystem of business event. Singapore Tourism Board (STB) said “All vital signs are pointing towards the return of business confidence in the Singapore business event sector, fuelled by dynamic developments taking place within the tourism landscape. Leverage in our sterling track record and a sound business fundamental, Singapore has secured a robust pipeline of business events, including key international association meeting in coming years”. The overall pro-business environment and relative ease of doing business give Singapore a competitive edge as a MICE destination. The main reason while makes Singapore become a Pro-business environment and MICE destination is the strongly government support through Singapore Tourism Board (STB), government support was crucial to the events’ success. (www.stb-germany.de)

Singapore’s government support of development businesses and contributes to a dynamics business environment. Singapore invested heavily in promoting the MICE businesses and also their tourist destinations. The Singapore Exhibition and Convention Bureau (SECB), a group of the STB has enhance the “Business Events in Singapore (BE in Singapore)” incentive scheme to help business events organizers discharge a higher proportion of events’ project costs by providing a greater scope of funding support, and Singapore exhibitors at WFA 2009(Wine For Asia) enjoyed up t 50 percent off space rental. This helps so reduced cost for the exhibitors and can attract more exhibitions to participate. Meanwhile, Singapore is a country which has pro-business environment which has excellent infrastructure and professionalism in the MICE industry that can makes Singapore become a global exchange hub where people can gather and share their ideas and technology.

(www.guidemesingapore.com)

2.6 Excellent meeting and conference venue and offers international-standard facilities and service

Singapore is a global hub for business and leisure and it is also a best choice for meeting and events. With the first class convention centers and hotel ballrooms, Singapore continue reinvent itself with new event venues and attractions such as Marina Bay Sands Singapore. Marina Bay attractions will create a unique MICE group that we not found elsewhere in Asia with international-standard MICE facilities.

MICE facilities in Marina Bay Sands, Singapore Expo, Suntec Singapore International Convention and Exhibition Centre are integrate to boost Singapore’s attractiveness as a business and leisure destination. Suntec Singapore International Convention and Exhibition center and Singapore Expo are understandably a favorite choice for business event of all kinds due to their huge exhibition space. A good convention center, exhibition halls and meeting venue plays a very important when we organize an event, Singapore saw the convention center as an ideal platform for the exchange of ideas and for networking. The different range of venue offers flexibility to event organizers regardless of their events’ size, needs and budget. (http://spinergy.com.sg)

2.7 Excellent transportation system and telecommunications connectivity

Singapore boasts of a highly efficient and excellent public transportation system, which includes cabs, buses and the modern Mass Rapid Transport (MRT) rail system as well as their air transportation. With its excellent transport system, people can get around in Singapore with no burden. An extensive network of trains, buses and cabs connect travelers to nearly any point of the city and the public transportation fares are affordable for everyone. Lucky for those foreign travelers, Singapore makes it easy for guest to reach any and all meeting venues and attractions with their public transport system on time due to their punctuality of rail systems. Singapore’s bus network is extremely frequent and comprehensive; this is also very convenient for travelers. The new opening new MRT network has made accessibility to Suntec Singapore and Singapore Expo, it made expedient for those business travelers. According to a survey conducted by Singapore’s Land Transport Authority in 2006, 8 out of 10 Singaporeans were satisfied with bus and rail services. (www.guidemesingapore.com)

Singapore is well served by their public transportation and telecommunications connectivity. In telecommunications connectivity, Singapore has 21 Tbps of installed international Communication infrastructure capacity, sufficient for every business need. Singapore is also one of the more competitive telecommunication hubs in Asia Pacific. Excellent telecommunication links with broadband network in all business hotels.

(www.marimari.com)

(www.etravelblackboardasia.com)

3.0 Conclusion (Forecast for Singapore MICE Industry)

In my opinion, I think that Singapore will clinch to the top spot as the Best City for MICE events in the future, well ahead of other countries and cities. Singapore’s tourism landscape is undergoing a dynamic transformation. By the year 2010, Singapore will have a cityscape that give off more buzz and excitement in the atmosphere. Singapore keep reinvent itself by introducing new, innovative venue and excellent facilities to give their foreign business travellers and exhibitors a unique experiences and ambience. Singapore also will maintain their reputation as Asia’s premier MICE destination through offering new infrastructure and leisure products. With the growth potential in the region, the Asia-Pacific is expected to attract over 100 million business travel and MICE visitors by 2015, therefore it is no surprise that Singapore continues to pursue a bigger slice of this multi-billion dollar MICE market. (mice.yoursingapore.com)

With Singapore’s stability economy and global economy shows signs of a rebound, the business event sector is in good stead to take advantage of on business opportunities. Singapore has kept a strong pipeline of business events, including the key international association meetings, in the coming years. Ms Melissa Ow, Assistant Chief Executive, Business Travel and MICE Group, Singapore Tourism Board (STB) said:” As we move into 2010, and climate of economy recovery, the STB will continue to work Closely with our industry partners to meet business event organisers’ evolving needs, explore new business leads and strengthen our international marketing and channel development efforts.”

Marina Bay Sands will be development into an integrate and vibrant MICE venue which offer 200,000 sqm of convention and exhibition space for concertedly bids, attract, create and grow strategic business events. These developments will redefine Singapore’s downtown and central business district. There are more than 150,000 meeting attendees are expected to visit Singapore this year for events already booked at the Marina Bay Sands. Moreover, Resort World Sentosa had hosted 35,000 attendees at a single event. Marina Bay Sands said that it has secured more than 30 events improvement to be held there from this year to 2012.

(http://articlemix.com)

By year 2010, Singapore will be hosting the world’s first summer Youth Olympic Games. With planned influx of 15,000 overseas participants and visitors generating 180,000 or more visitor nights for Singapore, the YOG presents exciting opportunities for the tourism industry. Beside this, Singapore also host a series of upcoming events and conferences within this few years, such as Youth Olympic Game 2010, International Cruise Terminal 2010, Gardens by the Bay 2010, Sports hub 2012, National Art Gallery 2013 and many more. (www.locumconsulting.com)

Singapore will continue develop their capabilities and improve their infrastructure to serve business event travellers in order to ensure their position as a top Asian and global business destination. To ensure Singapore Expo is well-positioned to support the growth of the MICE industry, STB has gone aboard on plan to upgrade the facilities of Singapore Expo. In addition, STB also will improve the venue’s technical and audio capabilities, same goes to improvement its facade, landscaping and lighting system. The upgraded facilities will ensure that the Singapore Expo remains an excellent venue for business events.

There is growing competition from other country such as Thailand, Malaysia, Hong Kong, Macau and etc but Singapore is make every effort to offer good facilities and service to their business event travellers. Furthermore, STB continues work closely with the business events industry in order to increase the amount of the business event at Singapore and to ensure that the MICE sector continues to power ahead as a key driver of tourism growth in Singapore.

I think Singapore will stay ahead of the MICE industry, because the event organiser can be assured of quality service when staging events in Singapore, with its excellent infrastructure and professional workforce. Although Singapore has received a lot of awards but Singapore did not feel proud, they keep on work harder to maintain their facilities to achieve the best MICE destination in the world. Furthermore, Singapore’s MICE industry is on a firm and I believe that if Singapore put more affords in their MICE industry, it can leapfrog to reach the the top spot as the Best City for MICE events.

According to Page and Connell 2009, p. 644, international tourism is an activity that involves people travelling to another country or a destination outside of their normal residence and residing for more than a day or at least a day with a given purpose. With the previous and recent events of natural disasters that have continually to take place across the world, there have been some challenges that the tourist generating and destination areas have faced. These natural disasters have brought about devastating impacts to these areas which entirely or partly depend on tourism as a source of generating income to survive. It is important to note that natural disasters continue to bring about destructive impacts to the supply and demand of both generating and destination areas, as well as affecting the normal lives of people who are forced to adjust to these changes after a disaster. This essay will consider previous natural disasters that have occurred internationally and will examine the impacts it has on the supply and demand side of tourism with given examples. There are three categories in this essay. Firstly, it will focus on previous natural disasters that have taken place internationally, and then individually for each natural disaster, it will consider the impacts on the supply side; such as accommodation, transportation and attractions, and then it will examine the impacts on the demand side; such as personal income, destination image and health risks. Finally, this essay will end with a conclusion that natural disasters have brought about destructive impacts to the supply and demand of international tourism, and that there are simple, yet constructive ways to reduce the impacts.

First of all, different types of natural disasters have occurred around the world. Some previous ones included tsunamis and earthquakes. To begin with, a tsunami is a destructive wave that can travel at great heights and speed and is likely to damage areas near the coast. They tend to be unpredictable, and this can create difficult situations for those who are not prepared, which can result in deaths and cause destruction to surroundings. The tsunami that took place in the Sumatra Islands in Indonesia in 2004 is a clear example of how dangerous the impacts of a tsunami can be (Jain, Agarwal & Hirani, 2005, p. 15).There have been cases where people were caught in a tsunami, and because of its unpredictable nature, unfortunate deaths have taken place. According to Jain et al. (2005, p. 15), “The recent Sumatra earthquake … the most devastating tsunami … causing a death toll of more than 150,000”. Therefore, tsunamis are dangerous and will continue to have devastating impacts unless necessary precautions are taken to warn and advise people to move to higher grounds for safety (Jain et al., 2005, p. 17).

In addition, earthquakes are also dangerous and are quite frequent. They are basically underground movements of the earth that travel up to the surface of the land or sea, which can trigger other natural disasters like a tidal wave. An earthquake can be destructive, and the impact it creates has a direct effect on the environment as well as on the country itself (Federal Emergency Management Agency [FEMA], 2011). An example, where an earthquake occurred would be in the Izmit city near Turkey, where Beirman stated

Casualties were estimated to be 20 000 dead and 50 000 injured…. According to a UN report, 350 000 housing units and business premises were damaged or destroyed. (2003, p. 162)

The impacts of earthquakes can destroy infrastructure such as roads and buildings as well as public utilities such as electricity and water supply, the victims involved are prone to falling objects, death and injury including financial losses (FEMA, 2011).

Second of all, the tourism supply is affected by natural disasters. With reference to Page and Connell’s study (as cited in Sessa, 1983, p. 59) found that the aim of the supply part is to make services available to tourists so that the tourism demands can be satisfied. Supply, provides many services such as; accommodation and transportation. With reference to the accommodation and transportation service, they will first show how they were affected during the tsunami in Indonesia, while attractions will be used as a discussion for the earthquake disaster in Turkey.

The first supply is accommodation. Accommodation provides shelter for a tourist where he will be able to stay in while travelling to particular destinations near and abroad. The condition of the rooms provided should be comfortable and suitable in order to achieve a satisfied and happy guest, but if it was otherwise because of unsuitable room conditions then tourists will alternatively look for a better place to stay in while on holidays (Ahliya, 2010). For example, the accommodation in hotels and motels during the tsunami in Indonesia was badly affected, as close to “30 percent of room capacity was damaged” (Athukoral & Resosudarmo, n.d.) and even though some of the rooms were able to re-open for accommodation purposes, room occupancy rates were decreasing because of lack of infrastructure. This would lead to perishability, where expected numbers of rooms are to be sold within a time frame but the occupancy of rooms were less, resulting in financial loss (Walker, 2009, p. 11). Therefore, the condition of a room and its quality after a natural disaster will have an effect on tourists’ choices and that will affect the financial wellbeing of the hotel and motel industry.

Moreover, transportation is another supply of tourism. It helps people move from one place to another with a form of transport, such as an aircraft, car, boat or even a bicycle. Although transportation helps tourists travel to various destinations, they are dependent on the geographic location and the nature of infrastructure such as roads, airport runway and bridges. Constant improvements in these areas will create accessibility to places that are difficult to get to (Sorupia, 2005, p. 1768). Natural disasters do have an impact on transportation. The Indonesian tsunami in 2004 destroyed many roads and other transportation routes; which limited the public from travelling. The airport being one of the major ports that brings in international tourists was affected, and aircrafts were restricted to travel at certain times only to transport medical and food resources to affected areas (Samii & Van, 2010). Damaged transportation network affects accessibility to areas and will be useless to those who cannot be helped, thus improvement and effective measures must be taken to strengthen the infrastructure system.

Finally, attractions are another determining factor of supply. It is a simple reason as to why most tourists from various countries arrive at a destination, basically because of the natural as well as the cultural attractions that a destination has to offer (Gunn & Var, 2002, p. 1). According to Beirman (2003), Turkey is a country with its own unique natural and geographical beauty ranging from “desert to lush and fertile lands” (p. 157). However, it is located where earthquakes are likely to occur most of the time, and because of this, Turkey is prone to experience disastrous impacts of earthquakes (Beirman, 2003, p. 157). For example, damages to homes and industrial buildings were at a point of no return, but because of effective planning that took place after the earthquake, most of the attractions were back at its original state and the tourism sector in Turkey improved (Beirman, 2003, pp. 161-162). The attractions that a country has can be a major factor in increasing tourist numbers or it could be a detrimental factor that could force tourists to leave.

In fact, the demand side of tourism is also affected by the impacts of natural disasters. According to Page & Connell (as citied in Pearce, 1995), the demand concept is focussing on the reasons as to what does or does not motivate a tourist to travel to a destination. Some of these factors may be due to personal income, destination image and health risks.

First of all, personal income is one of the determining factors that influence a person in deciding whether to travel or not. With reference to price, if a person is able to afford travel expenses, then they are in a position to experience a destination and the attractions it offers, however, for those who cannot afford a holiday, it is a restricting factor that stops a person from travelling (Page & Connell, p. 53). To illustrate this, Turkey experienced a growth in tourist numbers towards the twenty first century. Regardless of its low currency rate, it was considered to be a suitable and affordable destination to visit and this attracted many tourists from around the world (Beirman, 2003, p. 161). So, the income of a person will determine the willingness to travel to places if it can be afforded.

Equally important, destination image is another factor that can also affect tourists’ demand. This is simply, the way in which a tourist views a destination, whether it is a suitable place to travel to. Some perceptions can be influenced by the media and tourists can instantly change travel plans, especially if it is a negative one and this can affect the status of a destination region (Lexow & Edelheim, 2004, p. 52). For example, when the Izmit earthquake struck Turkey in 1999, there was coverage by the media which was showing how badly the country was affected by the earthquake. Yet, most of the information that the media circulated was later discovered to be biased and exaggerated, one such example would be the warning given out a day later by the British Travel agents where they were discouraging British tourists from visiting the largest city, Istanbul, assuming that the whole city was affected, however, only the east border was affected, while the inner part was not (Beirman, 2003, p. 165). Overall, the type of information that the media generate can be overstated and affect the tourists’ perception, while the image of the destination can be affected as well.

Furthermore, health risks also contribute to the demand of tourism. Some of the major health issues involve communicable diseases and there is a chance that tourists are likely to get sick if visiting affected areas (Giacomelli, 2006, p. 12). For instance, when Indonesia experienced the Sumatra earthquake in 2004, there were many people including tourists who suffered from wound infections but only a few cases of communicable diseases were reported, compared to the high cases of infectious wound cases (Marres, Lange, Leenen & Hoepelman, 2006). Thus, travellers are bound to suffer from communicable diseases and wound injuries if they get caught in disaster affected areas.

Given these facts, natural disasters do affect the supply and demand of destination and generating tourism regions. Impacts on the supply side can range from accommodation, transportation and attractions, while the demand side includes personal income, destination image and health risks. The range of services as well as other external factors in a destination will affect the way tourists choose a place to visit. The tourism sector must not be ignored during a crisis even though it is vulnerable to unpredictable changes. Therefore it is important that necessary and simple precautions are practised to minimise the dangers of natural disasters so that tourists, locals and the tourism industry itself is safe.

INTRODUCTION

International tourism has grown very fast after second world war. Today, tourism has become a part of the everyday life for most people and is now a major source of employment in developed countries. The growth of the tourist industry after second world war can be linked with increasing wealth, increased mobility, improvements in accessibility and transport, more leisure time, product development and innovations, improvements in technology, changes in lifestyles and fashion, an increased awareness of other places and the need for ‘green’ tourism. Every factor is responsible for the rapid growth of tourism which is the biggest industry in the world at the world employing nearly one third of the whole world population.

Since the beginning of early days, humans have travelled for various reasons. . Food, water, safety or acquisition of resources (trade) were some of the early travel motivations. But the reason for travel changed when people had the idea for pleasure and exploration. Travel is always depended upon technology as the means or mode of travel. Travellers before walked or rode domesticated animals. The invention of technology like the wheel and the sail provided new modes of transportation. Each technological improvement increased individuals’ opportunities to travel. Interest in travel increased for education, sightseeing, and religious purposes when infrastructure were developed by governments and other facilities were meet.

The development of International Tourism after the Second World War

The most common factors that are responsible for international tourism development after Second World War, can be discussed under three main headlines

Changes in technology
Product development
Social or economic factors
A. CHANGES IN TECHNOLOGY

1. Developments of Jet Aircraft

The development of jet engine was started after the Second World War and before that it was very expensive to travel and also took long time to reach destinations. In 1958 the first jet aircraft carried passengers in the transatlantic route and the travel time was cut some five days to seven hours which was really a great breakthrough for the development of tourism worldwide. And after 1970 the jet aircraft started carrying more and more passengers and also become cheaper for people.

2. Computerised Reservation Systems

CRSs are systems that store current information about all available service providers and have the necessary infrastructure to transfer such data. This system started at the beginning of 1960s and the main objective was to book airline seats automatically. In todays world the best known CRSs are Galileo, Amadeus, Sabre, Worldspan and these CRSs have developed the tourism market dramatically.

3. High speed Trains

After the Second World War, significant development happened in the railway system. In the United States, All over Europe and in Asia, high speed trains were introduced which brought revolutionary change in mass tourism. This high speed trains has given the passengers comfort and choice of transport which play a vital role in the development of tourism.

4. Communication.

The communications revolution happened in the last few decades which had a major impact in tourism. Companies like GO and Last minute.com and others are already developing the Internet to book online and selling their product through web pages. People are now walking through their hotel online, check out the views, find out about the nightlife – and all this before they book! It’s advertised more faster and more cheaper than going down to the high street.

B. PRODUCT DEVELOPMENT

1. Package Holidays

The development of package holidays had a great impact in tourism development. All tour operators are now selling package tours which are all inclusive, which means accommodation, transfer, meals are all included in the deals. The tour operators buys the package in bulk so they can sell to customers in cheap price which attracts customer to take a holiday.

2. Theme Parks

Theme Parks have been created in almost every countries of the world to attract tourists. These are the amusement parks where many rides are installed and lots of attractions are made to entertain a large group of people. Example include Thorpe Park in UK or Disney Land in Paris.

3. Introduction of Holiday camps

Holiday parks like Central Parks and Butlins had led to a big growth in the tourism industry. In the holiday camps holidaymakers pay for their accommodation and also can go for full board, half board or self catering.

4. Low cost Airlines

In the last few decadesaa‚¬a„? low cost airlines contributed hugely in the development of tourism. Low cost airlines like Ryan Air, Easy Jet made it easy for tourists to travel for very cheap prices.

5. Long Haul Destinations

The possibility of taking a long haul flights made it very attractive for tourists to go far away form home. People can go from one part of the world to another part in couple of hours and explore the world which gives them immense pleasure.

C. Social and Economic Factors

1. Increase in car ownership

The greatest factor that increased for travel is the increase in car ownership. Car ownership were increased mostly in the year between 1951 and 1970 and then there were even bigger increase in the mid 1990s. Increased car ownership is now a great facility for people to visit places of interest and spend leisure time with friends and families.

2. Increase in leisure time

People around the world now think there are more things to be done other than work in life. So, people now try to mange leisure time from their work which they want to spend travelling to different places just to relax and enjoy. This time spent not only relaxes people but also boost their energy to perform at workplace because of freshen of mind.

3. Holiday entitlement

People now are entitled to few days to few weeks holiday every year they work which gives them chance to go somewhere and spend some. From 1938 it was legal requirement that people have to get paid holiday every year. This holiday entitlement also motivates people to travel and thus develop tourism worldwide.

4. Early retirement with pension

Todays workplace encourage to recruit fresh talents and so also gives the older people the chance to retire early with pension facilities. So, people now have time in their life to spend and the money they need, which makes them motivate to travel.

5. Aging population

Aging population is another factor that develop tourism. People who are aged have more time to spare than others and that encourage them to go for holiday and contribute towards tourism.

6. Large incomes

People are earning more money than before and so are able to spend on holidays and other recreation. When there is disposable money available for people that tends people to spend on travel and explore places and hence develop tourism.

7. Less children

This is another important factor towards the growth of tourism. People wants to be more free in life than before and lots of people donaa‚¬a„?t want to get tied with family and children and which lets them go wherever and whenever they want. They move to different places and help tourism.

CONCLUSION

After the second world war, tourism has grown in scale, distribution and origins of tourists. According to Geofact 2001, there were 25 million international tourists in 1950 and according to WHO, there were 160 million tourists in 1970. And they forecasted that it would be 1000 million in 2010. In 1997 the UK tourist industry generated A?40 billion which is approximately 4% of the GDP and the industry employed 1.6 million people which is 6.2% of the total workforce. From these figures it is clearly visible that international tourism had developed since the second world war and the growth is continuing.