Impact Of The Commonwealth Games On New Delhi Tourism Essay

“Delhi Dilwaale” (New Delhi, the city with the heart) as it’s often called is the capital of India and is situated in the North, home to about 18 million people. While New Delhi today is considered a Global city, it currently ranks 45th in the world (Foreign Policy Index, 2010). Since the high ranking makes the city seem insignificant, it doesn’t answer the questions of New Delhi’s image as a global city. Mr. Deep Kapuria, chairman of Indian Industry (CII) states “By 2020 Delhi can become a better, global city only if its private and public sectors work together” (Indo Asian News Service, 2008). ). As a step in the right direction towards improving upon its ranking as a global city, New Delhi was fortunate to host the 2010 Commonwealth Games. The Indian delegation had argued that wealthy countries hosted the games too often and “developing countries” deserved a chance to host the games (CBC Sports, 2003). This was important to New Delhi’s future because the games brought forth a real opportunity for introducing major changes in the city in terms of its infrastructures, roads, airports, highways and transit systems. It brings forward the confidence of the developing nations in hosting such mega events. The hosting of the games marked an important step towards improving New Delhi’s global status because it was the first time a South Asian city had been elected for hosting an event at the international level. New Delhi was all over the headlines and it received a lot of global media coverage. Mr. Suresh Kalmadi, president of the Indian Olympic Association and chairman of the organizing committee stated “The people felt it was high time India got the Games” (CBC Sports, 2003). This essay will begin by giving a brief history of how New Delhi reached its position as a global city and then focus on how New Delhi has been affected by the commonwealth games in terms of infrastructure advancements, effects of the Games on New Delhi’s labor market as well as the measures taken by New Delhi to address environmental concerns. To add to that, the essay will also discuss some of the problems encountered at the games and how Delhi must deal with them to ensure they remain a global city.

New Delhi is one of the oldest urban regions, serving as political and commercial capital for the Mughal Empire. In 1911, British rulers moved the Indian capital from Calcutta to New Delhi. Several ancient buildings were torn down to make way for sprawling administrative district designed by architect Edward Lutyens (Lorinc, 2008). “Configured around majestic axes and imposing government buildings on a plain inspired by Washington, DC, New Delhi became an urban symbol of the British Raj”(Lorinc, 2006, p. 26). In 1927, the Parliament House, designed by Edward Lutyens and Herbert Baker was inaugurated and opened. By 1931, New Delhi opened the largest market and the leading commercial and business hub of the city, “The Connaught Place”, named after the Duke of Connaught (Gupta, Basu & Chattarji, 2003). Today, the Connaught place is truly an architectural gem and one of the most striking structures of New Delhi. From the finest restaurants to bars, to load of business and commercial activities, Connaught Place today is considered an absolute essential place for a tourist to visit and is considered to be the most `happening` place in the city(PUTSOURCE).http://www.exploredelhi.com/shopping/connaught-place.html

INFRASTRUCTURE

As stated in the report of the commonwealth games evaluation commission for the 2010 Commonwealth games, the city stressed that through the games, its number one priority was improving the city infrastructure. From the building of new stadiums and the construction of the games village, to project plans in the transport sectors, the Commonwealth games truly brought forth infrastructure advancements within the city and the neighbouring games village. The city’s airport, Indira Gandhi International Airport underwent several changes. A world-class terminal was opened at the airport, expected to entertain about 34 million passengers a year. At the opening ceremony of the terminal, Prime Minister Manmohan Singh stated, “This airport terminal establishes new global benchmarks. It also exemplifies our country’s resolve to bridge and bridge fast enough the infrastructure deficit in our country” (680News, 2010(article)). The roads themselves underwent major changes, from the widening and resurfacing of the roads, to the addition of more lanes for the purposes of controlling traffic congestion. The Games Village that housed the athletes was built over a 63.5 hectare area also offered training grounds for athletes participating in athletics, Aquatics, Weightlifting and wrestling.( http://www.cwgdelhi2010.org/news/fantastic_say_athletes_staying_games_village). This village, built in East Delhi at the Yamuna riverfront, which has been neglected until the preparation of the games, underwent major urban spurt in order to meet world class standards. Today, this place looks no different from a prime real estate (Uppal, 2009). The village itself offers facilities such as post services, banks, bars, cafeteria and gym and was created with intention to allow the athletes to rejuvenate themselves and get refreshed after participating in events during the day. Louise Pugh-Bevan, player of the Wales Hockey team said that `The actual facilities are clean and satisfactory standards, and we are pleased with the accommodation`(BBC News, 2010). The Jawaharlal Nehru Stadium, venue of the opening and closing ceremonies, underwent major renovations costing the city a whopping Rs 9.6 billion (Times of India, 2010).

However prior to the games, there were several events which threatened the progression of the games. “More than a year ago, audits warned that preparations for the games were shamefully behind schedule. “Slackness in addressing these challenges may create major embarrassments for the country, one report added” (Yardley, 2010, p.A.6). On Sept 21st, 2010, a footbridge near the Jawaharlal Nehru Stadium collapsed, injuring 23 workers, 5 of which were in serious condition. Following this event, Phillips Idowu, a British triple jumper athlete pulled out from the games and publicly on twitter he said “My safety is more important to them than a medal”(SkyNewsHD, 2010). Upon closer analysis of the situation, the TV footage showed that the collapse occurred due to a construction failure and simply because of the engineers’ non adherence to basic civil engineering rules (Mail Today, 2010).

In addition to that, the building of new infrastructures and roads required demolition of existing illegal structures. A slum can be defined as one illegal structure with poor and informal housing and having a threat of being destroyed (Davis, 2004). This was one of the drawbacks in infrastructure advancements. The problem was that the slum dwellers were getting displaced from their homes and in exchange were not getting relocated. Human rights campaigners argued that the Indian government was sweeping slum dwellers and beggars off the streets in an attempt to beautify the city. The question goes back to New Delhi. While the infrastructure advancements certainly give an appeal to the city and attract foreigners, the fact is that it comes at a cost and in doing so, New Delhi needs to think if global city status is more important at the expense of the local poor class families. http://bharatbusiness.com/the-impact-of-commonwealth-games-on-tourism/

LABOUR MARKET

The labor market of New Delhi also had a huge impact due to the hosting of these games. As a direct consequence of construction boom in New Delhi, around 1 million migrant workers entered Delhi from neighboring cities such as Bihar, Rajasthan and Uttar Pradesh (Sengupta, 2010). These three cities are among the poorest in the country and most of these migrants work under a corrupt labour system whereby they get paid less money for their effort. New Delhi offered these migrant workers an opportunity to earn a higher income and get credited respectably for the work they put in. From airport upgrades to the expansion of the metro, all the way to the constructions near the games village, each of these advancements have created approximately two and a half million job opportunities. http://www.articlesbase.com/baseball-articles/benefits-from-delhi-common-wealth-2010-games-2523897.html. A study conducted by Building and Woodworkers International suggested that about 300 000 workers were needed, among which include 10000 women and 20000 migrant children. Also, the commonwealth games are part of the construction boom which will grow the domestic construction industry by 50 billion USD a year by 2012 (Source: “India’s Construction Industry: Growth, Opportunity & Constraints”, ASSOCHAM), http://cwg2010cwc.org/media/factSheet.pdf)

In India, there is no shortage of human labour. These migrant workers were working frantically to finish projects by the start of the games. Living in squalid conditions, some of these workers were unaware that their job is temporary. Promised a better income upon arrival in New Delhi, the use of these migrant workers was no different from exploitation because they were used for the purposes of speeding up the construction in the games. http://www.bbc.co.uk/news/world-south-asia-11218833

http://cwg2010cwc.org/media/factSheet.pdf
ENVIRONMENTAL

The 2010 Commonwealth Games was pronounced as “Green Commonwealth Games”. Water shortage has always been a problem in New Delhi due to lack of accountability and that around 50% of the available water is lost (Yadav, 2006). To deal with this issue, New Delhi installed a new water distribution system in East Delhi where the games were located and also upgraded a new water treatment plant at the Games village to ensure clean water supply for the athletes(http://delhigreens.com/2009/03/20/benefits-of-cwg/). A new sewage system was also put into place to prevent flow of sewage wastes onto the roads in case of flooding which in turn will keep the roads clean. Added provisions for more toilets in public spaces also help keep roads clean as it prevents the poor class from defecating on the roads. The Thyagaraj stadium, New Delhi and India’s first eco-friendly green stadium offers features such as rainwater harvesting systems and the harnessing of solar energy. http://www.zeenews.com/news616151.html. To add to that, the Rajghat power station in New Delhi was closed a month prior to the games as part of the government’s plan towards cleaning up the air before the games(http://www.indiaenvironmentportal.org.in/content/delhi-agrees-use-commonwealth-games-opportunity-address-air-quality-concerns http://www.governancenow.com/news/regular-story/delhi-do-more-control-pollution-only-games. To address environmental concerns, the Organizing Committee of the CWG held a low carbon fair in Shimla in July as well as held a transportation rally of bicycles and electric cars to raise awareness about reducing the pollution levels. In doing so, New Delhi is taking a step towards becoming a better global city by addressing such issues publicly and making an attempt to better itself as a city. While there were also negative environmental impacts such as deforestation in order to construct the Games village, New Delhi has done a fantastic job in alerting the public and taking extreme measures to improve the environmental standards and the overall living in the city.

http://cleantechnica.com/2010/01/01/new-delhi-contemplates-closing-down-industrial-units-for-clean-commonwealth-games-2010/ enviro

Future Forecasts

In the upcoming years, New Delhi will have to go through a lot more changes if it wants to aim to become a better global city by 2020. The World Urbanization Prospects report predicts that the population of New Delhi will reach approximately 28.6 million by 2025 (World Urbanization Prospects, 2009). Since the population is expected to increase, there can be several changes expected in the city. If New Delhi wants to improve as a global city, it needs to continue building advanced infrastructures and eye appealing structures that will not only be a gateway to tourism, but will also improve the lifestyle of the locals within the city. The labour market sector will take a hit because an increase in the population will correspond to a reduction in job opportunities. Also, as New Delhi advances to its better global city dream, it will become much more difficult for migrant workers to settle in New Delhi. These workers who are naA?ve to the idea of a high class global city will face problems trying to find a job in the city and getting accustomed to the fast paced city life. New Delhi Television Limited (NDTV) reports that New Delhi is one of the nation’s most polluted cities (NDTV News, 2009). If Delhi wants to improve as a global city, it needs to undertake several tasks. One possible solution is mandating annual pollution checks for old vehicles and getting those vehicles that fail the test off the roads. Another viable solution New Delhi can consider is regulating Carbon emission levels for various power plants across the city to ensure safe air quality and living standards within the city. Also, with the increasing population and modernizing of the city, living will become much more expensive and New Delhi will have to

As Saskia Sassen (1991) states, “Global cities are places that other countries are looking upto”. For future commonwealth games that are held in South Asia, countries like Pakistan, Bangladesh and Sri Lanka will look upto New Delhi’s performance and will look to avoid the mistakes made by New Delhi.

Referencing

1) Macionis, J, & Parrillo, V. (2001). Cities and Urban Life. New Jersey: Prentice-Hall, Inc.

2) Lorinc, J. (2008). Groundwork Guide: Cities. (1st ed.). Toronto (ON): Groundwood Books

3)

4) BBC News (2010, September 26). Positive News from New Delhi Commonwealth Games: [Video file]. Video posted to http://www.youtube.com/watch?v=X_c4UdhHkB0&feature=player_embedded

5) SkyNews HD (2010, September 22). http://news.sky.com/skynews/Home/World-News/Commonwealth-Games-Delhi-Footbridge-Collapse-Near-Indian-Stadium-Leaves-At-Least-23-Injured/Article/201009315737908

6) ‘ RUSH JOB MAY HAVE LED TO MISHAP’. (2010, September 22). Mail Today,[Page 1]. Retrieved November 21, 2010, from ProQuest Newsstand. (Document ID: 2143297901). Accessible from: http://proquest.umi.com.myaccess.library.utoronto.ca/pqdlink?did=2143297901&sid=1&Fmt=3&clientId=12520&RQT=309&VName=PQD

7) Jim Yardley. (2010, October 3). As Global Games Begin, India Hopes for Chance To Save National Pride :[Foreign Desk]. New York Times (Late Edition (east Coast)), p. A.6. Retrieved November 21, 2010, from Banking Information Source. (Document ID: 2152454511). Accessible from: http://proquest.umi.com.myaccess.library.utoronto.ca/pqdlink?did=2152454511&sid=5&Fmt=3&clientId=12520&RQT=309&VName=PQD

8) Davis, M. (2004) “Planet of slums,” New Left Review, 26, p 13

9) Sengupta, Mitu http://mrzine.monthlyreview.org/2010/sengupta190710.html

10) http://www.ndtv.com/news/cities/ghaziabad_ranks_among_indias_most_polluted_cities.php delhi most polluted
http://www.ndtv.com/article/commonwealth%20games/commonwealth-games-2010-a-tourism-disaster-55256 (tourism disaster?)
http://blogs.wsj.com/indiarealtime/2010/07/28/india-journal-the-commonwealth-games-then-what/
APPROACH
1st paragraph- historical development (how delhi was developed and how it reached position of global city)
2nd paragraph-move into the commonwealth games(talk about infrastructure developments today)
3rd paragraph-talk more about infrastructures
4th paragraph-what happened to the slums and poor areas due to the games
5th paragraph – effects of tourism reflected by the games
6th paragraph – more on tourism
7th paragraph – effects on Delhi`s Labor Market
8th paragraph-problems at the games and what Delhi has to do in future if it wants to remain a global city
http://www.usq.edu.au/library/help/referencing/apa.htm#av
http://news.sky.com/skynews/Home/World-News/Commonwealth-Games-Delhi-Footbridge-Collapse-Near-Indian-Stadium-Leaves-At-Least-23-Injured/Article/201009315737908
http://hcilondon.in/SportsOverview_Booklet_New%20Graphics_02.07.10.pdf
http://proquest.umi.com.myaccess.library.utoronto.ca/pqdlink?index=16&did=2152831691&SrchMode=3&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1290304677&clientId=12520&aid=1
http://sfx.scholarsportal.info/toronto/az/default?param_sid_save=9ae92bfbd76f262d6cb75f782838f40e&param_lang_save=eng&param_letter_group_save=N&param_perform_save=searchTitle&param_letter_group_script_save=Latin&param_chinese_checkbox_save=0&param_services2filter_save=getFullTxt&param_current_view_save=detail&param_pattern_save=&param_jumpToPage_save=&param_type_save=browseLetterGroup&param_textSearchType_save=startsWith&param_type_value=textSearch&param_jumpToPage_value=&param_textSearchType_value=contains&param_pattern_value=Delhi&param_chinese_checkbox_value=0

http://www.680news.com/news/world/article/73485–india-unveils-new-multibillion-dollar-airport-terminal-as-part-of-infrastructure-push

http://timesofindia.indiatimes.com/sports/commonwealth-games-2010/news/Jawaharlal-Nehru-Stadium-inaugurated-for-Commonwealth-Games/articleshow/6223709.cms

http://in.reuters.com/article/idINIndia-49341120100616

Impact Of Terrorism On Hotel Security

Today, the tourism environment is increasingly becoming more and more complex. Many countries are losing their tourism industry because of it.

The research topic is “THE IMPACT OF TERRORISM ON HOTEL SECURITY: A CASE STUDY OF BASILAN PROVINCE, PHILIPPINES” which will be achieved by doing epistemology positivism research on two areas: Philippine’s local hotels and random tourists from the world. The research program will focus on how hotel security in the Philippines is being affected by the terrorism and effective methods they apply for rectification.

Any types of terrorism are difficult to swallow. The reason may be too simple or theoretical. Most of the terrorism acts are motivated by two things:

Social and political injustice: sometimes people chose terrorism because they think the right thing is not happening. So, when the things go wrong, they want to take the responsibility to fix the problem.

Violence means justify the end: many people believe that, without violence there are no solution for their problem. So they had to go for the last option because nothing was working.

Terrorism is not new; it has been used many times in history. And the reason is hard to define. Mostly terrorism described as a crime and a holy duty so that the people doing terrorism can justify themselves. According to their point of view they are right so many supporters respect them. Most of the terrorist organization now days, does not have a valid reason for what they are doing and they are very secretive nature.

However, the terrorism activity is creating many problems over the world. Many countries have their own small group of terrorist. The tourism industry is highly affected by the terrorism attract. As example, the country like Philippine’s tourism industry is highly affected by terrorism. They are losing them hotel management industry as well.

1.2 Research Question -Hypothesis

The research will be done in two part/ sector. The sector is really small so the case study research will be more appropriate for this case. The research will have the people’s view and logic. It will have social reality as objective (Marchington, 2000). The research question is ‘THE IMPACT OF TERRORISM ON HOTEL SECURITY: A CASE STUDY OF BASILAN PROVINCE, PHILIPPINES’. This research question will aim at identifying and exploring how terrorism is affecting the tourism and hotel industry (Jankowicz, 2000). The research will seek out the core problems of terrorism attracts towards hotel industry which will be seen necessary to assisting fill out the hotel management (Newell, 2005). The objectives of the study are as follows:

To understand the level of situation by conducting a survey.

To analyse the terrorism act and the hotel management industry of Philippine (Saunders, 2000). This will be done by analysing purpose of tourism, way to solve the problem etc.

To suggest a strategy to rectification to reduce the terrorism within the country.

1.3 Aims and Objectives of Research Process (A Healthy Tourism)

The research aims and objectives are to identify the effective method to develop hotel industry of Philippine and reduce the terrorism process (Wain, 2008). This paper will look at various options that are available in this area in order to identify the core problem (Bryman & Bell, 2007). There are various traditional approaches that corporations adopt in order to develop hotel management situation in the selected area. These are such as reason for losing the industry, managing effectively, development for short and long term etc. Terrorism has so many meanings. A common view is to avoid the situation (Onions, 1973).

1.4 Justification/ Rationale of Topic Selection

Today the business world is full of competition. They have to be very careful about decision making, to be in the field of competition, the Hotel industry must emphasise on the alternative solution and increase the number of tourist and develop the faith. This dissertation demonstrates how and why terrorism demolishes the tourism industry and how the hotel industry of Philippine is getting highly affected (Burack, 1991), why should we find the problem or why it’s necessary to find solution and what will be the result of it.

The justification of this study is to identify the way to find out the problem regarding terrorism affecting tourism in the Philippines. And provide the related solution to improve according to the problem. The research will help them to find the right method (Nadler, 1992).This will highlight current strategies used in developing and reforming. Also the Research will include the solution methods that will be proposed for the Industry.

1.5 Limitations

The limitation of this research will be limited number of sample (Cameron, 2009). The research will be done in a small area in the Philippines. So the sample number will not be more than 15 to 20 people. And the research will mostly bring out the common expectation and result of the sample size (Brown, 2006 and Bryman, 2008). The sample results will be almost same for everyone. So the data will not have much diversification. So the conclusion and recommendation will not have uncommon outcome.

The time frame for conducting research will be a limitation as it can avoid complete results (Fox-Wolfgramm, 1997). A preferred research contains more participants (Echeverri, 2005). The employee participation will be a limitation as for the interview they also going to give some extra time. And also we have got a controversial research topic on which people does not want to talk much. So it may be the limitation for the research.

1.6 Outline of paper

The outline of the paper will include the whole research proposal summery. The first chapter is introduction where the research topic got introduced. The first chapter outlines the purpose and the structure of the study along with the main limitations of the research (Taylor, 1994). The second chapter provides a critical analysis of the existing literature regarding the Terrorist affecting tourism. The third Chapter continues by the main methodological approach concerned in relation to the study alongside its sample procedures and ethical considerations for the success of this research (Coulson – Thomas, 2001). And the forth chapter will be the conclusion and summary of the study as well as the Justification of topic, Clarification of research question and how it will be.

1.7 Conclusion

The first chapter has points out the purpose of this study. It also introduced the methods we will be using for the research. This chapter introduced the topic and the limitation of the research. That will help to conduct research in scientific method. The next chapters are literature review and methodology, will give a logical look to the research (Likert, 1961). The first chapter organizes the information to help the research to go further.

Chapter 2 – Literature Review

2.1 Introduction

Here is one definition of a literature review: “… a literature review uses as its database reports of primary or original scholarship, and does not report new primary scholarship itself. The primary reports used in the literature may be verbal, but in the vast majority of cases reports are written documents (Buyens, 2001). The types of scholarship may be empirical, theoretical, critical/analytic, or methodological in nature. Second a literature review seeks to describe summaries, evaluate, clarify and/or integrate the content of primary reports.” (Cooper, 1988). The literature review will introduce the detail of topic and what the research will contain and will answers the questions like, how we can help to reduce the terrorist act in the tourism industry or how to rectify it (Block, 2008). The chapter will introduce effective method applicable for development of the situation. The literature review will be structured o bring out the maximum information to justify the topic (Putnam, 2000).

2.1.1 Definitions and Introduction to the Topic

The impact of terrorism on hotel security: A case study of Basilan Province, Philippine

Definition: what do we understand by terrorism activities? Basically terrorism is considered the most important conflict without realising threat against the human (Pierre Gurdjian, 2009). Most of the terrorist organization conducts terrorism without any calculative reason. By finding out the reason of how terrorism affecting tourism industry, it will highlight the hotel security system of the Philippine (Karolina & Lena, 2010).

The topic of the research is “THE IMPACT OF TERRORISM ON HOTEL SECURITY: A CASE STUDY OF BASILAN PROVINCE, PHILIPPINES”. The topic will allow us to go through to find out the current situation of hotels and tourism of Philippine to find out the related solutions.

2.2 Strategies for Identification and causes of terrorism and means of rectification

Now a day’s, terrorism is affecting tourism very badly. As example, Bali’s (Indonesia) tourism rate was highly affected by the terrorist bombing in the year 2002. People are actually affected by the situation. And still people do think second time before going to Bali (Peter Senge, 1990). The survey will have the strategies to find out the peoples expectation, knowledge about terrorism act, how they are affected by the act. And also will find out the how people are reacting towards the situation (Hame & Prahaled, 1994).

2.2.1 Find out the Reaction and reflection.

The research will conduct a survey to find out the reaction and reflection of the research question. As the sample size is really small the surveys will be done by traditional, behavioural and semi structured interviews (Cook, et al, 2000). A behavioural descriptive interview process is effective when applicant’s behaviour is significantly analysed during the interview process (Bernardi, 1997). The traditional interview to analyse the applicant’s abilities, personality and responses (Tanova, 2003). The semi structured interview will gain the in-depth information from the participants (Stokes & Bergin, 2006)

2.2.2 Causes of the Terrorism and how it is affecting Tourism of Philippine

United States of America defines terrorism as unlawful threat and violence to create fear. The terrorism is done in a very calculative method. There are main three main elements, political, religious and ideological. The end result of it is violence, fear and intimidation. In Philippine the terrorism is against the government. It is based on political issue conducted by Islamic terrorist group. Since January 2000 radical Islamist group and Islamic separatist forces are responsible many terrorism act such 40 major bombing against local people. It happened mostly in southern part of the country and Basilan is one of the major cities which is affected.

2.2.3 Rectification of the situation

The tourism industry worldwide is has been affected by the threat terrorism attacks in modern era. Especially it affected Hotels, which serve a core function as supplier of tourist accommodation (Purcell et al, 2003). It is very important to enhance security awareness and skill that the employees needed. Technology is very important element. The situations will under control if the communication cooperation and collaboration is strong between the hotels. If the bonding is strong within the industry and with external stakeholders than government will also be strong to bring success against the terrorism (Jackson and Schuler, 1995).

Hotel Industry of Basilan

Terrorist incident can be very harmful and it leaves an impact on the hotel sector. Hotels have history for being targeted many times for terrorism act. The terrorist attracts those hotels which usually has more foreign traveller for business and official purpose. (Aragon-Sanchez et al, 2003). Security is very important for the hotel. They should have essential technological support for security. As example, they must have CCTVs. The hotel with large compound must have more cameras in many corners. The Philippine police force gives the premium support for the hotels. So far security system had been revised and tightened after 11 September 2001 (Pfeffer, 2005). Additional cameras are included. Instead of room keys the sensor cards were introduced in most of the big hotels. Employees went through special; training (Wright et al, 2004).

Reason for targeting hotels because they offer high degree of access and it is usually 24 hours a day (Junior, Middle & Senior Managers) Luxurious hotels have more public activities, spaces and entrance and exits. And foreigners also gathered there. In big hotels, there are many prestigious conferences and meetings are conducted (Holton III & Naquin, 2005). In many cases many political body, government officials gathered together in the hotels. According to the architectural design most of the hotels have grand specious lobby for which security is unlikely to have guided rule (Stead, 2004).

However many techniques such as protective barriers, surveillance, identification of employees and alarm system are essentially reactive. We should also remember that, terrorists know the smarter way to use the technologies. They have using the technologies in a very sophisticated way (Kessels, 1993).

2.2.5 Hotel Industry Research

So far, research in the hotel industry security has limited to date. A complete research always explained that hotel have such an environment for which terrorism is always invited. (Anderson, 2007). It is now not possible for the hotels which already exist. But for the new constructions, it is very important to redesign and maintain security strategies. Policies and practice need to change. It is very important to check the background of the employee’s specially employees who has certain level of power and responsibility (Fairbairns, 1991). When we are talking about hotel protection and tourism it clearly presents dilemmas for management and circumstances in Philippines are explored after the presentation of some information about the country because it pertinent to the discussion (Jackson, 1989).

Gap in the Literature

Above information are gathered through time. Like history, terrorism is still a mystery and hard to understand. In many cases the hotel may need extra security for any special event (Boyatzis, 2008). No one can take guaranty of what is going to happen. So, no one is ready to take the responsibility. And to many, it is a loss project now. It is also a risky business (Pilbeam & Corbridge, 2002). In that case the research might take a different shape. (Boyatzis, 2008). People are not interested to talk about the situations. Local people are not interested and they think they have no future in tourism industry. So, even though the research and solution it is very hard to motivate the local people. All depends the level of terrorism and patient of the hotel owners (Pilbeam & Corbridge, 2002).

2.4 Conclusion

The literature review will select the way to find out the way of the situation and the right method (Brooks & Hulme, 2007). According to the survey result the research will try to develop a picture of the current status of Basilan, Philippines. It will also specify the components, methodology and obligations of the tourist and terrorism (Shields, 2007). Other than that Literature review will also explain the terrorism act happening all over the world. It will highlight some key examples as well. The literature review will also mentioned about the gaps of the research.

Chapter 3 – Methodology

3.1 Introduction

Methodology reminds us the word method. And we believe probably they are similar. But methodology has a particular meaning an ‘ology’ of course is the study of a whole academic field (Gill, 1997). Methodology is the study of methods and it raises all sorts of philosophical questions about what it is possible for researchers to know and how valid their claims to knowledge might be.

The research will be intensively based on the collection of primary data and analysis of both primary and secondary data (Locke, 1993). The major reliance of the research design is collection of primary data via interviews and then preference will be given on case studies and organizational documents. The type of questions in the interview is consisted of two parts (Yin, 1994). The part one tries to explore the reason of terrorism; however the Part two actually examines how it is affecting tourism industry and peoples opinion about Philippine. The purpose of this chapter is to find out the right method to conduct the survey. The purpose of the survey, the way we will collect the data, the philosophy of the survey etc (Remenyi, 1998).

3.2 Research Philosophy

Management research is both about knowledge and action (McNiff, 1996). The relationship between knowledge and action is not straight forward. While there are several issues that one needs to consider at the outset of a qualitative journey we believe that familiarity with the basic Philosophical aspects underpinning qualitative research is a prerequisite (Eriksson & Kovalainen, 2008).

Ontology and epistemology interested in examine the same phenomenon, but their believe will lead them to set up their studies differently because of their views of evidence, analysis and purpose of research meaning (Potter, 1996). Epistemology bring out the questions like what do we regard as knowledge or evidence of things in the social world; what is our theory of knowledge; what are the principles and rules by which we decide whether and how social phenomena can be known and how knowledge can be demonstrated? (Brymen & Bell, 2003). There are different epistemologies exists such as positivism, interpretive and constructionist.

3.2.1 Research Paradigm

Realism and positivism are often claimed to be the same but should be treated as separate approaches (Johnson and Duberly, 2000). Positivism believes only phenomena or knowledge confirmed by people’s senses. Thios theory needs to generate testable hypothesis which will allow the explanation of law (Brymen & Bell, 2003). This theory gain knowledge through gathering facts. This research will follow the positivism as the realist researchers into management believe, with positivist, that the knowledge we gain through research can accurate mirror reality itself.

Research paradigm will be analysing and evaluating the abstract belief in the way data should be collected, analysed and used in a research (Healy, et al., 2000 and Kupers, 2008). Two major research philosophies, positivism and phenomenological, for qualitative data collection will be essentially analysed in respect to both speculative beliefs in how data should be gathered using different approaches (Fisher, 2010). This section will use the research paradigm which is usually generated from the survey report (Bryman& Bell, 2007; Robson, 2002).

Research paradigm should generally be seen through theoretical frameworks that direct the investigator to achieving his objective (Sobh & Perry, 2006). A critical analysis on the three components of the research paradigm which include; ontology, epistemology and methodology will be evaluated with contributions from different academic source (Healy & Perry, 2000; Jankowicz, 2000). Ultimately, the next section will significantly analyse the research design in relation to the case study which will be under studied.

3.3 Research Design

Most of the realist research is based upon a comparison of qualitative case studies, which are analysed to whether there are any connections between variables. Qualitative case study provides a broader and deeper understanding of processes may give an opportunity to work out the ways in which one variable is casually linked to others (Flick, 2002). The disadvantage of the case based approach is that there is often too small a sample of cases to claim to claim that the links of cause and effect identified apply generally (Kvale, 1996).

The researcher has developed the questionnaire in order to collect qualitative data through interview. The language of the questionnaire is English, since the majority of the guests are international (Richards & Morse, 2007). There will be three parts to the questionnaire, which will consist of list questions, rating questions and open questions. For the qualitative data which supplements the quantitative data, it will be analyzed using content analysis (Lofland, 1976).

3.4 Sample of Participants / Procedure

Various academic sources will contribute to evaluating and focusing on words in the collection and analysis of data as regards technique to collecting empirical data, the techniques include interviews, questionnaires and observational methods (Alam, 2005; Bryman& Bell, 2007). However, the data collection methods to be used will be semi-structured interviews, direct observations, telephone and Skype which are sequentially addressed in due course as the research progress (Brannan, 2008).

Interviewing 1 Director, Hotel of Basilan 1.

Interviewing 1 Director, Hotel of Basilan 2

This section will evaluate the amount of participants to be studied in the organisation following sampling size method which is the most common procedure in qualitative research (Saunders, et al, 2007). The director and the security in charge of the hotel will provide most of the problems and development situation (Buyens & Devos, 2001; Dalen, et al, 2001). The compilation of survey result and interview will conduct the research (Cameron & Price, 2007).

3.4.1 Data Collection tool

The data collection tool is the designed questionnaire, which is consisted of twenty questions. The collection will be through questions of open ended and close ended type (Bell, 1987). These types of questions will try to analyze the employees’ assessment and expectations regarding the learning development factors of the organization.

The research will be based on positivism principles with deductive approach (Coolical, 1990). Since no evident research has been recorded yet therefore major reliance will be over the primary data collection.

3.4.2 Data Analysis

This study expects to provide recommendations on improving Hotel Industry. The study will aim to ascertain the level of tourist satisfaction in terms of tourism industry (Bulmer, 1977); to enable the industry of Philippine to gain a sustainable competitive development through applying different method (Feeney, 1990).

3.5 Ethical Considerations

Ethical consideration will analyse the import of considering the research ethics as a vital process that should be considered extensively to influencing the access of the researcher into the organisation as a whole to obtain the data under investigation (Saunders, et al, 2007).

3.6 Validity and Reliability

The reliability of this research shows its validity because there are many research has done in this topic and they were successfully applied in the industries (Gill, 1991). The reliability and validity will be the true measurement and testing of the quality of the research work as well as an instrument for conducting qualitative data collection methods (Alam, 2005; Bryman, 2008). This research will highlight two dimensions Reliability and validity to get the process and information (Preece, 1994)

3.7 Conclusion

The methodology chapter included the research philosophy, paradigm and the design of the research. This chapter tried to show the justification of how this research should choose the right paradigm, philosophy (Kane, 1985). At the end the reliability and validity of carrying out this study will be to take into consideration the data to be analysed and implemented (Lawler, 1985).

Chapter 4 – Conclusion

4.1 Summary of approach of research

The research will analyse about the various approaches to evaluate successfully (Silverman, 1985). This will give a idea about Philippine Hotel and Tourism Industry. This research will help to evaluate with the other terrorism affected country (Gummesson, 1991).

4.2 Justification of topic

The justification of the research will be find out the serious understanding of terrorist attack in the Philippines and will try to provide the right advice and method. From this research the Hotel Industry will get to know about their insight gaps and level of effort they need to give to improve (Mabey & Ramirez, 2004).

4.3 Clarification of research question and how it will be addressed

Before we go through the survey, it is very important to know about Terrorism and tourism and how it is affecting hotel industries. It is also important to realise how it is capturing importance day by day (Tjepkema, 2001). After conducting the interviews, research philosophy and deductive, positivism research, we will understand the organizational current situation and way to implement the recommendations (Holbeche, 2007)

Effects of Natural Disasters | Essay

Disaster can be categorized according to many situations like it can be defined as the state of war that communities react globally against aggression. It can be an expression of vulnerability. We can also say that disaster is a state of uncertainty. Thus the consequences of any kind of disaster are so great that they can’t be ignored and the responsibility comes to the government account.

SAMPLE DISASTERS

The disaster can be of any kind. We can say any unlike activity. It may be according to natural forces for example earthquakes, flooding, extreme temperature, environmental hazards, fires, cyclones. It can be technical failures causing the system pause and also the ongoing activities cease. Disaster can be graded as a human interference like crimes and explosion. Now a day globally we are exposed to all kind of disasters including both geographical and humanly created mess. Like flood that come in Chicago in April 13, 1992 destroyed 230 buildings and all the power supply was damaged badly. If we talk about the World trade Centre explosion in February 26, 1993 the destruction mainly affects the business in the centre and there was no margin to take precaution. The earthquake in San Francisco o 18, October, 1989 damaged the bay bridge which has stressed the business in the city because the bridge is collapsed and all business in the city was stopped. Similarly the hurricanes Andrew that arrived in the south Florida area made destruction to extents that end almost every activity. Thus disaster in any shape proven to be the worst experience no matter where it comes.

Impact of Natural disaster on environment

Natural disaster is any inevitable event that affects the environment. It not only results in mass loss of human lives but also adversely affect the economy of the region. Natural disasters have long history of occurrence which cannot be predicted, nor can it be avoided. Many researchers state that that disaster is interrupted the state in which social fabric is disrupted and becomes dysfunctional to a greater or lesser extent. Many recent disaster e.g. tsunami in Indian ocean in 2004, earth quake in Pakistan in 2005, and Haiti earthquake in 2010 are thoroughly discussed in print and electronic media, yet our understanding of its economic impact and recovery plan is quiet premature. This topic highlights the effects of natural disaster on a region.

For the impacts and its metigation it’s very much important that we should know the magnitude of the disaster. The area that is directly affected and indirectly affected. Directly means the place where it actually happens and indirectly refers to the surrounding environment that is near with the disaster place. As in disaster the people move to other safe places for their survival. It stresses the other city in every account like to manage the space, food, and other life facilities to start their normal life again.

PREPAREDNESS FOR DISASTER:

For all these the government work and try very hard to cope up with situation. In some countries already disaster management cell are functional and in some countries we can see the law and order and they immediately respond to such dilemma. We also have such examples that there are recovery plans for disasters but the issues are that these plans are outdated. The trained people are less in number. It takes too much time to implement. It’s not an easy task. Mostly we see that short term plans are prepared and acted on it. The requirement for the successful disaster management activity is the cooperation by the effected people as well as the rest of the society. So far we see all over the world people generously participate for the disasters and try really hard to help the effecties. They really come up with practical potentials that sort the worst matter. Monitoring is also important after the measures because the effected people settlement may take years. In the disaster area collective stress is being created. Like some places that are easily approachable and some are far enough for the team to reach there for rescue. The government should be clear where to place the emergency cell and how it will work and they must communicate properly to the effectives and rest of the society the methodology. So that the interested people to help the victims and they should know the reality too. All this information can be transmitted by the satellites, good telecommunication system in the area.

NATURAL DISASTERS IN PAKISTAN

Pakistan is the country that has esthetically beautiful landscapes featuring mountains. River plains, desert track and 960 Kilometer coastal area that exposed it to natural disasters. One of the reasons for disasters is that Pakistan is located in the region that’s on the Indian plate that collides with the Eurasian plate and it’s not getting mature geographically up till now.

Disaster cycles that are very common in the geographical history are predominantly flood, drought also persist, high intensity rain spell, earthquakes, cyclones and tsunami. Socially vulnerability and also the diseases are also the issues that to be deal with the natural disasters.

Historically if we figure out the disasters and the number of people dead as a result and also the economic stress that Pakistan is facing then we can make analysis that its very usual within every five or ten years a big disaster hit any area and almost everything is destroyed, which can be the factor for its slow development. Due to these natural disasters Pakistani economical condition is very weak. Every year 3-4% of the budget is used for the rehabilitation from all the disasters.

EARTHQUAKE:

Like the earthquake in May 31, 1935 dead people reported were 60,000. After this much big disaster two earthquakes effecting less people struck the area in November 27, 1945 and December 28, 1974.The deaths reported were 4,000 and 4,700 respectively. Then up till 2005 no earthquake has strike the region but on October 5 the earthquake shaken the Northern side of Pakistan and has majorly destroyed the north side. More than 82,000 people were killed; 3.3 million people were left injured and homeless. All these incidences have place Pakistan in a very difficult situation. Everything was ruined badly and it took almost 5 to 10 years for rehabilitation.

FLOOD:

HISTORY: tells us that flood is affecting Pakistan area very frequently. Flood in 1950, 2,900 people were died, in Aug-1973 4, effected people were 800,000, flood in 2-Aug-1976 killed 5,566,000, in Jun-1977 people effected were 848, next year flood in Jul-1978 effects 2,246,000 people, similarly again the next year there was a flood affecting 1,000,000 poor people in august, then after 4 years gap flood came in 9-Aug effecting 6,184,418people, in Sep dead people were 12,324,024. Then again in 22-Jul-1995 flood death rated1,255,000 people and in 24-Aug-1996 dead people reported were 1,186,131.the history of flood does not end here. 3-Mar-1998 another flood destroys the area making1, 000 people to death. More over the flood destruction has added another year in the list like the flood of 2010 July- August.

2010 FLOOD:

Now a day’s heavy monsoon rains have triggered flooding that has left over 1,500 people dead. The death toll may reach in the thousands as flooding has spread throughout the country and countless are missing due to flash floods and landslides. On top of this, more monsoon rains and flooding are on the way according to Pakistan meteorological department which may continue till end of August. Millions of homes in thousands of villages and towns have been destroyed. According to reports, over 13 Million people have been affected by this disaster – more than the 2004 Indonesia Tsunami, 2005 Pakistan Earthquake, and 2010 Haiti Earthquake combined and destruction is increasing each day. Infrastructure such as dams, power stations, roads, bridges, schools, agriculture wells, and drinking water hand pumps have been severely damaged or destroyed.

ECONOMICAL STATE OF PAKISTAN AFTER THE FLOOD DISASTER

Economically Pakistan is a poor country and its economic growth faced a serious setback in fiscal year 2009 because of many factors such as the depressed consumer credit market, slow progress of public sector programmers, inflation, reduction in subsidies, threat of security, and instability in the state and energy crisis. Additionally, no attention was given to the agriculture sector. The exports declined by six percent and imports by 10 percent. The only thing that became a silver lining was the increment in remittances by 22%. Apart from ignorance, agriculture sector has shown credible results because of good weather. Major crops, wheat, rice and maize recorded impressive growth i.e. 7.7% against the target of 4.5%. Live stock and poultry also add to GDP as there was no viral disease this year. The economic condition is declining although positive efforts are made in this regard but due to the poor electricity condition and also the destruction of the infrastructure by the flood, the loss of many resource personals lives and their settled community now making it difficult for the country to sustain in the foreign market. As the infrastructure is totally destroyed so the import and transport is stopped. Even if there are temporary ways it is still a difficult task. Like helping people is more important in flood rather than import export. Food and living materials required on daily basis by the people, those who lost their everything, they are completely dependent on others for their survivals.

Floods in the northern areas of Pakistan have caused devastating effects. Sindh province has been declared red alert for the upcoming floods. The Indus river flows from Indus to Karachi which has increased the threat to the villages and people living beside it. Authorities have evacuated more than half a million people to save their lives.

One of the local said that “Floods killed our people, they have ruined our homes and even washed away the graves of our loved ones”.

It is considered to be the worst floods in 80 years in the region which have killed at 1,600 people and affected about 12 million others.

“The president of Pakistan Mr Asif Ali Zardari who was on a foreign trip refused to take any criticism about the flood situation in Pakistan. He was of the opinion that he was being kept up to date about the relief efforts being made in the affected areas and the cabinet was directing the efforts”. He further assured the assistance from his visiting countries i.e. UAE, France and UK, regarding the relief and rehabilitation of the flood effectiees.

Mr President further said that, “I’m the one who’s given all the powers from the presidency to the parliament. The parliament is in session – the Senate is in session. It’s the prime minister’s responsibility, and he’s fulfilling his responsibility.”

The point of concern here is that in Sindh two more days of rain are expected by the Pakistan’s meteorological office which could be dangerous and can cause high level of flood thus area is warned as red alert.

Mr Amal Masud, the National Disaster Management Authority added that in the bad weather the relief operations are also effected thus helicopters could not fly to the affected areas for rescue and relief activities.

Prime Minister Gilani declaring the 2010 flood as the worst Flood in Pakistan’s 63 year history and thus appealed for help from international organizations and has expected the locals to cooperate with the people helping them in this disaster.

“I would ask the international community to support and help Pakistan alleviate the sufferings of its flood-affected people,” he said.

Mr Gilani further added “The next two days are very critical. Our top priority is to rescue people, to save their lives. But we will also provide them all facilities, and we will work for their rehabilitation.”

Much of the area along Indus River is submerged in the flood, still authorities have evacuated the rest of places to help people especially from the low-lying areas. Although some local famers were reluctant to leave their land and belongings but it was necessary to evacuate those places even by forcing them. The rescue mission is mainly headed by army and navy which will continue throughout the relief activities. In Sindh province more than half a million people have been evacuated.

The Pakistan’s food supply will have long term effects due to the present floods as it has overwhelmed vast agricultural areas. Officials said it is the biggest disaster in the country’s history affecting 12 million people so far. The maximum level of water has reached in the Tarbela and Mangla dams which is a warning by engineers for the damage.

Due to the breach of dam in northern Sindh’s Kashmore district, thousands of residents took shelter on rooftops or in trees, it has also inundated large parts of the surrounding area with floodwater. “The authorities are trying to prevent the breach of any other dam downstream”, said by Shoaib Hasan in Karachi. One of the Pakistan’s largest gas field The Qadirpur is also threatened by the breach. Many people refused to leave their land, crops and homes which is a difficult moment even knowing the threat to further deluges.

“We are compelling them to evacuate because there is massive danger to their lives,” Irrigation Minister Jam Saifullah Dharejo said.

The current measure of the destroyed homes so far is 650,000, a 1.4m acre (557,000 hectares) of agricultural land has been flooded and 10,000 cows have died, declared by the officials.

In comparison with the 2005 Kashmir earthquake, the present disaster 2010 flood was “on a par”, which killed almost 73,000 people badly damaged infrastructure.

The flood affecties have been critical of the government’s response and other relief activities feeling helpless and ignored.

“Floods killed our people, they have ruined our homes and even washed away the graves of our loved ones,” Mai Sahat told the Associated Press near Sukkur, Sindh. “Yet we are here without help from the government.”

The administration struggling to contain the Taliban and an economic crisis, is facing more pressure by the victims which bitterly accused the authorities of failing to come to their aid in this devastating disaster. Thus, the authorities and victims both are facing alot of issues along with other previous crisis. On the other hand, mountainous region of Ladakh was hit by flash floods which has killed 120 people with a ratio of 100 missing, building wee also damaged. The authorities of Indian-administered Kashmir are recovering bodies and highly concerned with a fast relief action.

Whole of Pakistan is currently facing the devastating effects of flood. In Punjab hundreds of villages were submerged in flood water. It has destroyed homes, soaked the crops and threatened lives. Aid workers are also finding difficulty for the rescue delivery due to the nonstop raining and as a result more floods are coming out. As most of the affecties are poor people thus many organization is trying to help them in this hard time. UN also scrambles to provide food and other assistance to about 3.2 million affected people. This year’s monsoon season has caused the worst flood in Pakistan.

Punjab is the richest and most populous province of Pakistan. The destruction in northwest was very volatile and the floodwater has hitted Punjab with the even high intensity. The rescue team of army tried to move villagers to higher ground through boats and helicopters. In the south of the province the tracts of Kot Addu and nearby area of layyah, water was so high that only upper most floors of some buildings and treetops were visible.

During a visit to the flood affected area, the news reporters were briefed by Military spokesman Maj. Gen. Nadir Zeb that at least 30,000 people have been rescued from flood-hit zones in Kot Addu and areas over the previous 72 hours. He warned of more flooding as more rains were forecast in the next few days.

“People must cooperate with us, and they must leave those areas where floods are going to hit,” he said.

Muhammad Hanif, head of the National Weather Forecasting Center in Islamabad said that monsoon season in Pakistan usually lasts about three months, through mid-September. In a typical year, the country gets an average 137 mm (5.4 inches) worth of rainfall during the monsoon season. This year, it already has received 160 mm (6.3 inches). Hanif said the rains are already falling about 25 to 30 percent above normal rates. It was the hardest rain experienced by northwest can be called “once-in-a-century” rains. The death toll in the northwest region was highest. The significant amount of rain should be expected in Sindh province located at south and Punjab’s at east.

The Pakistan’s National Disaster management authority said that at least 47 people killed, 1,000 villages have been affected and 25,000 houses destroyed in Punjab since late July. The stretched crops of Pakistan are mainly grown in Punjab which is the Pakistan’s breadbasket were badly destroyed by the floodwater. Numerous crops have also been lost in the northwest. U.N has warned that due to loss of farm has produced the serious food shortage and thus World Food Program has estimated that over next month 1.8 million people will need to be fed. Along with the crops, buildings and houses all the communication lines are also destroyed and the roads and bridges are washed out. These all severe conditions are main hurdles in the relief and rescue operations.

Including the United States, many foreign counties have stepped in to help the flood affecties. But still there are complains that aid is not reaching them fast enough or at all. This has disturbed the people more and results in aggressive behavior towards the authorities and helping organizations. The Map of Pakistan showing the area affected by the severe and moderate flood is given below.

http://www.bbc.co.uk/nol/shared/spl/hi/world/10/pakistan_floods_2/img/pakistan_floods_01_464_2.gif

FLOOD HANDLING PROCEDURE:

After earthquake relief operation, govt of Pakistan had set up a disaster management cell for fighting out natural disasters like earthquake and floods. However, scale of this flood is much beyond the capacity of that disaster management cell. Likewise in earthquake 2005 Pakistan army has come up once again to help the affected masses. All of army is out of cantonments for carry out flood relief operation throughout the country. It is a big challenge which cannot be met at once. Operation has different phases like rescue operation for evacuation of dead and trapped in flood, arrangement for internally displaced persons to alternate locations, provision of basic living facilities like shelter, food and medication, return of IDPs ( Internally displaced persons) to their home location after flood will be over and finally rehabilitation of these IDPs to restart their normal lives.

First phase to fight out flood is being undertaken by govt of Pakistan and Pakistan army. All resources are brought in to move affected population to safe locations. Pakistan army engineer’s corps is carrying out rescue operation for water trapped masses, whereas tent villages are established to accommodate IDPs at safer locations.

After rescue comes the relief phase of operation which includes provision of basic living facilities to affected people. It is not easy task for govt of Pakistan to handle such a disaster which has caused more than 15 million IDPs which is over all larger displacement than tsunami and 2005 earthquake collectively. Whole Pakistani nation has come up to help affected population in terms of donation and volunteer relief work. Still it demands help from international community. UNO and other govt and non govt organization are pumping in to help the situation. In relief phase experts for shelter food and medical care have major role to play. There is no economic activity in flood hit areas and is not expected to restart soon. So more than 15 million IDPs are going to have adverse effects on Pakistan economy.

Monsoon is not over yet and few more rain spells are expected in month of august country wide. This situation depicts that rehabilitation phase is not going to start immediately which alternatively mean extended relief phase. And once rehabilitations starts, keeping in view the severity of flood, its not expected to recover the damage and restart normal routine life for min of two to three years.

After complete destruction of routine life and infra structure in flood hit area, there has been acute shortage of day to day usage items. Demand has incredibly increased than supply which is ultimately going to cause price hikes generally in all over the country and particularly flood hit areas. Inflation of prices and sink of economy is obviously going to create so many living as well as social problems like increase in crime rate, increase of hunger and diseases, lawlessness and exploitation.

All above mentioned problems and issues pose great challenge for govt of Pakistan. It is a very serious issue which needs to be handled with great care. Govt of Pakistan will have to take both short term and long term measures to fight existing challenge and avoid such massive damage in future. As a short time and immediate measure, all efforts must be made to accelerate ongoing relief operation and provide basic needs to all the affected population. All govt machinery and international organization should gear up to work together on same lines with each other’s collaboration. All agencies must be on one grid with central monitoring so that wastage and duplication of effort be kept to minimum. There had been an existing structure after earthquake as disaster management cell, if all agency try to work together in order to do capacity building of disaster management cell instead of working in independent capacities, it can really boost the relief work.

CONCLUSION

Pakistan is a country which is already dependent on foreign aid to cope up with economic situation and also to fight back with the militants’ war in the country. So management of the situation and also the right decision are very important to cope up with the disasters.

Its govt responsibility to start media campaign to motivate whole nation to work together , project the relief work being undertaken and reduce frustration of the affected. At the same time , govt should encourage all volunteer teams , local NGOs, oversea Pakistanis and international community and take them on board to fight this catastrophe. Key factor in fetching the max out of all will be transparency and fairness of the procedure to utilize the aid to benefit IDPs.

It may not be easy for govt to afford rehabilitation of all these IDPs, it will be helpful to give incentives to international agencies for investments in all over the country as payback to their assistance in rehabilitation of IDPs.

Keeping in view the terrain and weather of Pakistan, it is very likely to face flood in future as well. Short terms measure can never be a permanent solution to these catastrophes. There can be no way to avoid floods in future except making dams to store and control excessive waters. Construction of dams in Pakistan had been politicized over few decades. This is the right time for govt of Pakistan to take decision for constructions of dams at various locations throughout the country. This will not only help in avoiding flood but will also solve the biggest energy crises by production of electricity.

All existing dams and canal system is old one and capacity of all rivers, canals and dams has been greatly reduced due to silt. In addition to construction of new dams, expansion and cleaning of existing dam and canal system is also imperative.

There is no question that present flood has caused devastating effects on Pakistan economy which will take years to recover. But such catastrophes are always food of thought for future and prove to be turning points for nations to plan ahead. This is the time for govt of Pakistan to revise their economic policies and bring reforms. Nothing is more than safety of people, so serious issues relating survival of nations would not be politicized at all. We hope after recovering from this flood, Pakistan gets on to the track leading to benefit of whole of country instead of few.

Impacts of low cost airlines in Singapore

What impacts have the low cost airlines had on the tourism product in Singapore? Consider this from a consumer perspective and a supplier perspective; i.e. hoteliers.

Introduction

Tourism related activities have change and grown in different ways of classifying the industry have emerged. It has also evolved as attempts have been made to place a title on a difficult to define group of naturally related service activities and participants. The activities undertaken during their stay in those destinations, and the facilities created to cater to their needs is temporary movement of people to destinations outside their normal place of work and residences.

History of Low cost carrier

The first airline that created the concept of a low cost airline is Southwest Airline, an American domestic carrier which launched its flight on 18 June 1971. The airline was created to provide consumers with cheap airfares. The creation of low cost carriers proved to be attractive to consumers, and also a threat to premium airlines as they were able to offer cheaper airfares as compared to the full cost airlines.

With its unique branding of air stewardesses in hot pants and white boots, Southwest’s concept was copied around the world. More people began to see the success in the concept of low cost carriers, and the market for low cost carriers began to expend.

The industry for low cost carriers has grown significantly over the past decade. According to an Airline Business low-cost airline survey done in 2011, low cost carriers “carried nearly 640 million passengers in 2010”.

Low cost carrier in Singapore

In Singapore, there are three low cost carriers based here, and a total of 6 low cost carriers that have operations in the country. The pioneer low cost airline in Singapore is Tigerair, previously known as Tiger Airways. The budget carrier was established in 2004, and has since then grown to be the biggest low cost carrier, and second biggest airline in Singapore as of 29 April 2010. Jetstar Asia, which was established soon after Tigerair in 2004, is also one of the airlines based in Singapore.

As these low cost carriers have managed to create a new market, traditional airlines are more inclined to create a low cost carrier as subsidiary so as to maintain or even increase its market share. As a result, airlines such as Scoot were created. Scoot is a low cost carrier established by Singapore Airlines, to offer no-frills, low-fare flights for medium and long-haul routes.

In general, low cost carriers have a positive effect on the travel industry. While it may have a negative impact on premium airlines, low cost carriers have managed to increase the profit of the tourism industry. This is because passengers who have been unwilling or unable to afford the traditional full-frill airfares now have the option to fly at a lower airfare.

In Singapore, the growth of the low cost airline industry has increased so much over the years, there was a budget terminal built specially for low cost carriers. However, as there is still much potential for low cost carriers to expand, the Singapore government has decided to tear down the budget terminal and build a new Terminal 4, in order to provide passengers with the best experience. This is a prominent evidence that proves that low cost carriers have become an influential segment here in Singapore.

Jetstar Asia had scheduled 37 flights to Singapore on February 12, 2014, on an average 1.5 hours a flight landing in Singapore which is very frequent. This is one of the reason why Singapore Changi International Airport ranked 15th in the world busiest airport 2013 with the passengers of 51,181,804 in 2012.

Consumer perspective

When the budget airline concept first launched, many consumers deem it’s unsafe, and even flying without maintenances. A few years down the road, more and more consumers are choosing low cost carrier as their first choice when flying overseas. The word “budget” implies something made cheaply, without much concern for quality, but the answer to this is no. Budget airlines are no less safe than any other airline, cutting corners on safety could completely ruin their business. Some of their cost-cutting measures even increase safety.

The biggest differences between low cost carrier and full-fledged carrier are that low cost carrier plane is smaller than full-fledged carrier plane, and on-board catering has to be paid extra when flying with budget airlines, extra costs mean the quality of the food is often good or even better than the regular airlines. Consumers are recommended to look at hidden extra charges and what is the special offers which regular airlines have before they book the flights. Consumers who are flying short distance may prefer to fly with budget airline as they may find that the additional services of a traditional airline are redundant.

Not all passengers taking low cost carriers are budget traveler, because some are taking short route flight, and they just need a seat to fly to certain country. 40% of the travelers are visiting friends or relatives, 37% for vacation or leisure, 20% for business and 3% of other purpose.

Definition of tourism product

It is the inclusion of a whole tourism package to meet the clients’ expectations. These would include accommodation, tourism, meals, entertainment, and transport among others. It can be divided into a local product to encourage the citizens to participate or international products for revenue collection.

5 Advantages of tour package

Convenience – Traveler does not need to spend a lot of time deciding what to do and which supplier to use. The decision-making process will be shortened.

One-stop shopping – One payment covers the cost and paperwork of two or more services which made buying process easier. The traveler is allowed to know how much the trip will cost because all inclusive tour can be seen as virtually cash free

Cost savings – Tour packages will be more expensive if the tourist were to buy all the elements separately, tour group are able to able to get special discount and this cost saving will be passed on the tourists because they are able to take advantage of volume discount straight from the suppliers.

Special treatment – Tour member will receive privileged treatment as the volume of business tour operator represent to service supplier. Take for example that tour group members seldom stand in the long queue or under the hot sun, transport are park near from the entrances to attractions and when they arrived, the hotelier will pre-check-in the tour groups, and they just simply pass them the hotel key.

Worry free – The tour personnel will handle problems and details allowing the tourists to concentrate on the experiences and the new world around them when traveling on a hosted or escorted tour.

Economic impacts

When travelers from another country purchase goods and services within Singapore, tourism acts as an export industry by earning revenues from external sources. Travelers’ expenditures also increase the general level of economic activity in the host community in numerous ways, direct and indirectly, the two most visible being creating new job opportunities and income. Taxes collected by government will also increase with the higher level of economic activity.

There are several factors that can influence the level of tourism activities

Impact Of Globalization On The Accommodation Sector Tourism Essay

Introduction

Post World War II had seen a significant boost in the travel, tourism and hospitality industries moreover on cross-national or international boundaries with accommodation acting as a catalyst by providing the tourists a place to stay and rest thus contributing to a major part in the decision-making process and movements of tourists. The accommodation sector is the key elment for the tourism development and planning , economy as well with in the destination. As stated by Medlik and Ingram (2000), “the primary function of a hotel is to accommodate those away from home and supply them with their basic needs”.Globalization is changing the business dimensions in the hospitality industry. Baron and Greenberg (1997) observed a boost in fund injection, affray, and financial strategies over countries. Choi et al. (2000) discerned developing trends of worldwide work exploitation, whereas Wilson et al. (2000) mentioned that information breaches within the agreement policy in accommodation business.

In this scenario, one of the noteworthy views for hospitality managers to realise the significance of global design for the implementation of strategic approach for example, Jones (1999) demonstrated a requirement to intensify vigilance of multi-directional chain management by undertakings for example incorporation, position, arrangement, association, execution, and alteration. Furthermore, in emerging positions hospitality managers are required to designing for increasing globalization.

The World Tourism Organization (2004) outlooks that worldwide tourists will cross over to 1.56 bn by 2020 through positions for example East and Pacific Asia, Middle East, South Asia, and Africa posting over 5 % boost in appearances each year.

Aim and Objective

The aim of this study was to assess the prospects for hospitality managers about the influence of globalization on contemporary business subsequently, the sophisticated notion by Thomas L. Friedman (2000) that:

To analyse the structure of the accommodation sector

The progress of contemporary business is much different in the evaluation for the period of time prior to the Cold War era;

Connection methods have expanded and changed;

There is progress in the development of worldwide purchasing, and

Technology has opened the way for changes in the business environment.

In addition, we are involved to validate if passed psychological ramifications of globalization on individuals and organizations, the results are given, and in the context of strategic significance for hospitality managers in emerging locations.

Literature review

The hotel industry is seen as one of the most ‘global’ in the service part (Litteljohn, 1997; Mace, 1995). In alignment to realise if that likeness is aligned with perform, this paper first examines the forces going by car globalization in the part and then the span to which worldwide hotel chains really chase global strategies. As the topic of what constitutes ‘global strategy’ is hotly argued (Prahalad and Doz, 1987; Bartlett and Ghoshal 1989; Zou and Cavusgil, 1996) the construct itself first desires to be explored. Medlic and Iingram (2000) stated “in many years, hotels are important attractions for visitors who bring with them spending power and who tend to spend at a higher rate than they do when they are at home. Through visitor ‘s spending, hotel thus often contribute significantly to local economies both directly and indirectly through the subsequent diffusion of the visitor’s expenditure to other recipients in the community.”

Accordingly, a destination success means more development and growth of the different forms of the accommodation sector. Cooper et al (1998) stated

” accommodation typically accounting for around one-third of the total trip expenditure, and Gross-Turner (1996) pointed out that it is also an essential ingredient of the tourism experience”.The living publication presents helpful beginning points. Work on internationalization in the hotel part, reconsidered by Burgess et al. (1995), has analyzed a number of matters opposite multinational operators, encompassing application mode strategy (Litteljohn and Roper, 1991 Slattery, 1996) and worldwide marketing strategies (Crawford-Welch, 1991; Alexander and Lockwood, 1996). Particularly pertinent are investigations by Go and Pine (1995), who recount the key components going by car the development of global strategies, and Go et al. (1996) on the procedures of the Four Seasons group. Key outcome are: the significance of a ‘balanced’ global occurrence engaging both built-up and holiday resort hotels; principles to incorporate worldwide worth supplemented undertakings in localities like teaching and purchasing, and; an emphasis on developing global brands. However, their investigation furthermore displayed that in numerous operational undertakings, principle is considerably localized.

These investigations are helpful, but there have been no empirical investigations which systematically assess the span to which foremost worldwide hotel chains are incorporating their undertakings on a global basis. In this paper key proportions of globalization are analyzed and hypotheses are then developed pertaining to the environment and influence of the forces going by car global integration in the industry. Practice in premier British-based worldwide hotel chains is then evaluated.

The conceptual base taken up is drawn from (Malone, 1998, 98), which has been recounted as ‘the most broadly utilised structure for considering the span of, and promise for, industry and market globalization’ (Rosenzweig, 2000, 220). The primary benefit of Yip’s set about is that it is eclectic, drawing upon multiple conceptualizations of the ‘global strategy’ construct. Thus account is taken of the decrease of costs through standardization and centralization (Levitt, 1983; Bartlett and Ghoshal, 1989); the span of worldwide market participation (Ohmae, 1995); cross-subsidization (Hamel and Prahalad, 1985); configuration of value-added undertakings (Porter, 1986); and globally incorporated marketing.

In Yip’s form, ‘global strategy’ is construed as the span of world-wide co-ordination and integration in esteem of five strategic ‘levers’ namely: the scope of overseas participation; uniformity of goods and services; position of activities; marketing policy; and comparable moves. The antecedents to the adoption of global strategy are recounted in periods of four groups of ‘drivers’, involving: markets; costs; authorities, and; competition. These drivers render it money-making to make larger or lesser use of the global strategy “levers” which can be conceptualized in periods of a continuum. At one end lies a ‘multi-domestic’ strategy, where the undertakings in each overseas position are very resolute without quotation to situation in other markets. At the other end, ‘global’ strategy is characterised as an set about “that incorporates and manages for worldwide business leverage and comparable advantage” (Yip, 1992, p. 7).

Cost drivers

Three promise localities where hotel chains may gain cost finances through integration of worldwide undertakings were identified. The first was purchasing, where amount buying may permit for ‘sourcing efficiencies’. However, savings in this locality were glimpsed as limited. One professional summarised the consensus.

I wouldn’t anticipate, if Hilton had a good European supplier of furnishings, for them to be utilising that identical supplier in the Far East because; you start running into transport costs; they like to give their hotels a minor local feel; and, a high percentage of worldwide hotels are functioned under management agreement or where the hotel operator has only a part share in the inherent equity. It is the hotel proprietor who does rather many of the buyingaˆ¦

The second locality anxieties the engrossment of ‘back-office’ services, for example the position of accounting services in a low-wage environment. Arthur Andersen (1999) proposed that most of these purposes are inefficiently duplicated on a hotel by hotel cornerstone, and that ‘the hospitality industry bears a disproportionately high cost for its investment and accounting methods in evaluation to other industries, far overhead best perform benchmarks’, with consolidation savings in the district of 2% of hotel incomes feasible. The professionals, although, proposed that achievement of such finances was problematic on a worldwide cornerstone, with savings more associated to dimensions other than global reach.

The third locality where cost components favour incorporated set about worldwide anxieties visitor booking and data systems. Where these can be leveraged globally, worldwide chains can develop cost savings, while advancing incomes through yield management systems which can furthermore direct promise clients to other hotels inside the chain where appropriate. The high cost of the systems, and the significance of all hotels in a chain co-operating for effective presentation, shows the requirement for integration when developing a lone worldwide system.

Market drivers

Hotel chains require balancing the provision of a normalized grade of service and amenities with customers’ concern in some stage of localized adaptation. The repsonse affirmed that visitors, particularly business travelers, anticipated a alike variety of services. Thus in-room worldwide direct dialling (IDD), internet services, a business centre, 24-hour room service and a gymnasium, are glimpsed as ‘minimum application standards’ for a worldwide business hotel. One professional suggested:

As other businesses have become more global and as travelers have become more globalaˆ¦if a famous person rolls up in the Far East and they roll up in the States then there is just that anticipation that the merchandise will be consistentaˆ¦

However the professionals furthermore glimpsed responsiveness as significant, particularly for leisure travelers, on the requirement for localized differentiation, it was documented that the function of hotels inside nations differed. Hotels in western nations normally depend on places to stay charges for the most of their sales, while in Asia nourishment and beverage charges often make up the bulk of hotels ‘ revenues. Asian hotels thus require focusing on supplying more and bigger bistro outlets, aiming at localized diners as well as overnight guests.

Many ‘global customers’ purchase hotel services centrally and multinational companies often assign specific hotel chains as ‘preferred’ suppliers for their employees. This has significances for global participation as numerous business clients will only deal with chains having ample geographic coverage. Second, the chains require incorporating marketing assets to deal the worldwide chain where the clients are producing decisions.

Government drivers

The professionals glimpsed little clues that government principle restricts the proficiency of hotel chains to elaborate internationally or constrains foreign ownership, as the fragmented environment of the industry restricts anxieties over market domination. There is couple of cost and marketing controls and, exception from demonstrations of alcoholic beverage restrictions, couple of restricts on the variety of services that hotels can provide. Additionally, it seems that authorities had couple of anxieties about the influence of worldwide hotels on the localized heritage or competitors and the chains are usually met due to tourism and employment benefits.

Some lawful constraints limiting the possibilities for standardization and integration of worldwide procedures were identified. Labour legislation sways employed hours and salary rates producing, for demonstration, in higher employees to visitor ratios in some countries. Stringent blaze and security guidelines in more developed markets, and distinct measures considering kitchen and assisting amenities, influence hotel conceive and cost levels. Finally, zoning guidelines alter between nations, producing it tough to take up benchmark hotel concepts that help the consignment of a consistent likeness and service.

Competitive drivers

The professionals noted that there is ‘multi-pronged’ affray with chains founded in North America, Europe and Asia competing in most of the world’s biggest markets. Country procedures are glimpsed as interdependent in that hotels inside a chain share marketing and other centralized costs affiliated with visitor data and booking systems. Furthermore, the visitor know-how in one homeland leverages the propensity to stay with the identical chain in other countries. The presentation of hotels in each homeland thus sways the incomes and costs of other hotels inside the network.

It was furthermore documented that in localities for example pay, booking and data systems, worldwide chains that did not take up consistent worldwide systems would find it tough to compete.

Methodology

Travel bosses as characterised in this study mentions to a expert accomplishing a management function pertaining to journey and tourism. This delineation encompasses persons committed in projects for example journey bureaus, journey study and conferring, journey technologies, hotels and holiday resorts, hospitality management, journey newspapers, airlines and aviation, vehicle rental, trip operators, tourism planks, conference and public displaying bureaus, journey distribution systems, journey and tourism learning, journey newspapers, place travelled to management, and place travelled to buying into companies.

Survey types were dispatched out to 1,000 members of the Pacific Asia Travel Association (PATA).There was 118 legitimate reviews accomplished and returned. Of the respondents, 35 percent were in the journey services class, 34 percent in tourism, 7 percent in Airline, and 24 percent in hospitality.

The respondents came from 35 nations, namely: Austria, Australia, Bahrain, China, Canada, Cook Islands, Fiji, France, French Polynesia, Germany, Hong Kong, India, Indonesia, Japan, Korea, Macau, Malaysia, Mongolia, Nepal, New Guinea, New Zealand, Pakistan, Philippines, Saudi Arabia, Singapore, South Africa, Sri Lanka, Switzerland, Thailand, Tonga, Turkey, Turkmenistan, USA, UK, and Vietnam.

Result and Discussion

Respondent profiles may be farther trained as follows: 73 percent were male and 27 percent were female; 50 percent owned a Bachelor’s stage, 47 percent with a Masters, and 3 percent with a Doctorate; and, 88 percent had not less than 11 years of industry work experience.

We have assembled facts and numbers considering the respondents’ insights on the assured influence of globalization on business, connection, accounting and investment, expertise, and one-by-one psyche. Statements were suggested through a corresponding five-point Likert scale. The quantitative and qualitative levels were 5 for Strongly acquiesce (SA), 4 for Agree (A), 3 for Undecided (U), 2 for Disagree (D), and 1 for Strongly contradict (SD). Since the reason of the study was to work out the centered inclination of the answers to each statement, the weighted signify of each statement was calculated. In alignment to reach at a decisive understanding of the respondents’ centered inclination, we have allotted the next hypothetical signify variety to the levels in each item (se Table I).

Review of associated literature

We postulates that globalization sways business management in not less than five localities and issue out applicable study pertaining to:

1. Evolution of business practices;

2. Changes in connection patterns;

3. Broadening of accounting and investment approaches;

4. Technological enhancements; and

5. Impact on one-by-one and organizational psyche.

Business practices

There live certain business stresses conveyed about my larger market integration. Rosenzweig et al. (2000) demonstrated that for the past 50 years, falling tariffs and the emergence of local dealing blocs had a tremendous influence on world trade and buying into and boosted businesses to gaze at business in a global perspective. Haynes et al. (1999) documented the limitation of merchandise life circuits in a data age, while Cateora and Graham (1999) emphasized the requirement to supply intensified vigilance to heritage particularly in the realm of worldwide marketing and the segmentation of markets.

Communication patterns

Breakthroughs in connection technologies have helped worldwide communication. Kotler and Armstrong (1999) contended the requirement to utilize global connection adaptation strategies when broadcasting over boundaries, while Lussier (1996) alluded to the relevance of non-verbal connection in worldwide business. Friedman (2000) discerned the “democratization of information” in a global natural environment that permits persons to come to out to other ones in a much quicker, deeper, and lower manner.

Accounting and investment approaches

The internet has made economic data and worldwide transactions easier. Malone and Laubacher (1998) mentioned to the emergence of “electronically attached freelancers” (e-lancers) that function virtual organizations that help the flow of economic transactions from any location in the world. Friedman (2000) emphasised that the entire world functions like Wall Street because global buying into has become more befitting and accessible to numerous individuals.

Technological enhancements

The global natural environment may need technological adaptation and adjustments. Bishop (1999) suggested undertaking worldwide expansions evaluations pertaining to telecommunication infrastructure, digital capabilities, and online resources. Buss (1982) articulated the challenge of management of data and expertise over boundaries due to:

Divergence of gear, programs and methods from one venue to another;

Changing costs of staff, hardware, and facts and numbers connection inside and between distinct countries;

Increasing interdependence of firms’ affiliates;

Fast-changing regulatory environments;

Unionizing of facts and numbers processing department personnel; and

The expanding rate of change of data technologies.

Individual and organizational psyche

The global natural environment has the proficiency to sway the mindsets of individuals. Fan and Mak (1998) discerned that it is likely that worldwide participants who need communal abilities and aptitude may conclude to remove from the method and favour to stay inside their solace zones and combine with co-ethnic or like-minded members. Gudykunst and Hammer (1988) alluded to the detail that persons revealed to cross-cultural environments and are unfamiliar with changing heritage ciphers may know-how a high grade of stress in communal comes across, and bear from interpersonal disquiet and self-doubt.

Theoretical publications propose that business practices may change as a outcome of globalization. Insights of journey bosses worldwide are accumulated in alignment to recognise viable strategic approaches.

Survey outcomes and findings

Table II presents chosen repsonse of the journey bosses on business matters pertaining to globalization.

An outcome of the review proposes the following:

Modalities of business have been changed in a global natural environment needing strategic changes from area practitioners in the journey industry.

There lives intensified convenience in operational undertakings conveyed about by globalization.

Business circuits have accelerated and need befitting responses.

Opportunities for inter-organization connection efficiencies can be accomplished as global connection technologies are enhanced.

Realignments in buying into strategies are taking place.

There are seen advantages in the creation of worldwide economic alignments and standardization of practices worldwide.

Technological discovery along with corresponding organizational structure changes are seen as avenues for construction efficiencies.

Country infrastructure for example bandwidth is probable a position consideration.

The global natural environment has the promise to form one-by-one and organizational mindsets and attitudes.

The intensified demands of globalization need that vigilance is put on promise doubts of change that live in organizations.

Conclusion

Approximately one-quarter of the respondents in this study pertains to the hospitality industry. The outlooks and insights conveyed on the globalization matters; while the respondent number restricts generalize ability of deduction the outcome is possibly precious in assisting management approaches. Based on the review outcome, five advances for hospitality managers in emerging positions can be suggested here:

Prepare for globalization, the outcome propose that one-by-one and organizational doubts of the stresses of globalization live in business organizations worldwide. Hospitality managers in emerging positions require addressing these doubts through organizational evaluations, strategic designing, and the formulation of a global vision.

Enhance cross-border information flows. The outcome issue to the convenience of cross-border connection flows in a global environment. Communication efficiencies can be farther increased by hospitality managers through the improvement of worldwide data flows, use of innovative discovering and teaching advances, and the broadening of marketing efforts.

Plan for economic perform modifications. In the review, journey bosses documented changes in economic buying into strategies in a global natural environment, and glimpsed the requirement for the standardization of accounting practices. Hospitality managers in emerging positions should be arranged to attempt changes in their economic operational systems and methods for the sake of perform uniformity and commonality of standards.

Speed up business development efforts. The review outcome show larger conveniences in operational undertakings and the acceleration of business cycles. Regardless of position, hospitality managers are in a place to tap into the pace and trade conveniences conveyed about by globalization. Marketing and developmental efforts require be intensifying and modifying in conjunction with new possibilities that arise.

Utilize expertise strategically. Technology is examined as an intermediate for effectiveness enhancement and bandwidth has become an significant business consideration. Hospitality managers in emerging positions should utilize expertise in a strategic kind in their organizations. Forming innovative technological linkages with government and personal enterprises in both localized and worldwide venues paves the way for technological enhancement and effective organizational integration.

In a global natural environment, journey bosses worldwide have constructed comparable benefits by strengthening efficiencies in business and connection practices, economic management, and technological usage. As hospitality managers in emerging positions face invigorated development prospects, incorporating these practices in their development agenda can become anchors for future success.

Impact Of Globalisation On The Airline Industry Tourism Essay

Globalisation Process is been a universal force. Factors contributing to globalization include market, production, culture, labour, technology, environment and regulation. Globalization provides huge potential profits to companies and nations.

Air travel is a large and growing industry. Economic growth, world trade, international investment and tourism is been facilitated by Airline Industry.

Various improvements regarding the air travel both commercial including government and private airlines have grown. Introduction of a few airlines from Boeing like Boeing 747 have increased the capacity of passengers to carry and have made it affordable for people to travel with luxury and comfort. Improvements and contribution from government has increased the development of resorts and infrastructure to attract lure tourists from the prosperous countries in Western Europe and North America.

With the growth of economies of developing countries their own citizens are becoming the new international tourists of the future. The rapid growth of world trade in international direct investment has also contributed to growth in business travel.

Worldwide, IATA, International Air Transport Association, forecasts international air travel to grow by an average 6.6% a year to the end of the decade and over 5% a year from 2000 to 2010. Airlines industry has been raised by up to 9% a year and is forecast to continue to grow rapidly, although the recession has hit the market in these years. The main air travel markets of the future will continue to be in and between Europe, North America and Asia in terms of total passenger. Example, Airbus and being the current upcoming airlines in commercial with new technological changes.

CURRENT TRENDS:

The current trends in India as well as other big players in the market based on the regulations are as follows:-

The growth of the airline industry is tree having “n” number of branches irrespective of private or public sector.

There has been 7% growth of air travel per year for both business and leisure purposes which grew strongly worldwide. The Scheduled airlines carried 1.5 billion passengers last year.

As far as the leisure market is concerned introduction of Boeing 747 made it convenient and affordable for people to travel for new and exotic destinations.

Net operating revenues in the quarter were under $2 billion, a 19% increase has resulted in strong anticipated payments volume, cross border volume and process transaction growth worldwide.

Down from 7.4 per cent in 2007 IATA exects a passenger Growth at 5% in 2008.

The government have merged the Air India and Indian Airlines into one Airline, which will be taken over other private airlines further as per the market demand.

The airline’s has low stock with the public, but now that there are a host of private airlines, customers are no longer willing to do so. The result is that the flag carrier has been losing both market share and public goodwill.

The investment in the private industry is increasing as these days the public sector is been dominated by the private sector.

CURRENT SITUATION:

Mergers: Mergers have had a great impact as far as the Indian airline industry is concerned. Mergers have either enhanced the economy growth or have reduced it. As far as Indian market is concerned mergers within the public sector have taken place where by the upcoming results are not satisfactory.

Expansion: The expansion has created new options for travellers, but it has not significantly affected Airlines position. For example, Air Canada estimated that it had a 90% share of Canadian travel agency in 2001 and sales and share of 75% seat capacity in the domestic market. After Air Canada gained control of CAI, it became the sole carrier on the majority of the top 200 domestic routes.

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Approval of major decision: Unlike the private airlines the approval of civil aviation for major decision concerning the officialdom and the other legal formalities and the well being of the industry and the things accompanying it.

Private sector investment: As in many other fields like banking or insurance where government allowed private sector entry, the state-owned entity has suffered on the same scale. Firstly the labour under bureaucratic procedures has result in long-delays in operational matters like purchase of aircraft, choice of routes, and sale of bilateral. Profits jump from 40% -50% as far as sales are concerned.

OPPORTUNITIES AND THREATS

The opportunities and threats basically imply the various opportunities that the airline industry is facing and going through whereas, the threats imply the rivalry, the new entrance and substitutes which in turn illustrates the way the progress of the industry or the business is going.

Airlines and the allocation and maintenance cost.

The airlines are one big industry with huge cost and investment where the allocation cost and the maintenance cost servers as the major factors for the industry. The cost as per as the price is concerned fluctuating market prices are a big threat to the airline industry as ression hits this area and the economy downfall would cut down on the financial part of the airlines to fit the things as per their budget. Like most other industries at this stage, airlines have not been immune to the global economic downfall. At the end of 2008 cargo traffic bottomed out, posting a dismal 25% may decline. Many airlines, particularly in the U.S., responded with aggressive capacity adjustments and an four quarter loss was served.

The number of aircraft taken out of service exceeded the number of new aircraft delivered in the end of the year 2008. The expansion of fleets, which forced the airlines to drastically reduce capacity by cutting both flight frequencies and uneconomic routes. Adding to the weak aircraft utilization, defined as the percentage of revenue ton-miles divided into available ton-miles, resulting in disastrous fall in yield by 20%. Though 2009 contained high economies for the airline industry. International cargo traffic improved by 12% over from 2009 till present.

Rising demand, shrinking capacity

It includes two type of demand namely, the requirement for the flights are high by the passengers but the airlines having their flights are very less as compared to the demand. Due to the economy downfall the visa versa is happing a lot these days. The current ample space available onboard for most aircraft is quite less, though the capacity has been cut out. The market of airlines industry is expected to grow at 13%, and continue to grow at a progressive rate till 2012 as can be predicted.

Regulatory pressure

There is also increased awareness by industry and additional scrutiny given by FDA and other national regulatory bodies. The Regulations as per the government as to the directions and ways are still pressure and intervention from the private airlines.

GOVERNMENT POLICIES AND ITS EFFECT:

The response of government to various issues as faced by the airlines industry and the way the it affected the economy:

Strikes: The strikes have been faced a lot when it comes to the airlines industry. As per the recent records to the policies given by the government of removal of workers from “jet airways” in India due to the recession crisis created a strike problem. As there was over staffing of employees jet decided to remove a few employees.

Being private airlines the workers could not make a change in the decision and hence ended up with a strike. Finally government took a stand and the process was stopped accordingly.

Conflicts: The conflict between airlines and the airlines with the government has many aspects relating to it. As Boeing 737-800 less than two minutes after take-off crashed on May 5, 2007 in the midst of a thunderstorm, but the report said poor weather or mechanical error and the government had nothing to do with it.

Kenya Airways is hence fighting against Ethiopia Airlines, Fly540 as well as South African Airlines for control of Africa’s airspace with safety. The government thus came forward with it and a better management of its weather forecast and other aspects were asked to take care off. Also, Sahara and Jet airways were supposedly to become rivals as Sahara wanted to take over Jet but without having any liability. Hence, the later was taken an off as the deal did not crack out.

Taxes: The government imposes several taxes as far as airlines industry is concerned. The tax starts from the upbringing of these airlines in various sectors. Thus, the government has imposed passenger’s tax for about landing in international airports. Thus an increase in the taxes has a negative impact on the economy though nothing can be done in this context, lest the price is increased considerably.

Turnover: The turnover for the airline industry has been quite a subjective matter as in the past two years the economic downfall has removed many employees from their respective jobs, though government airlines are still not under the amount of pressure as per the private ones but a cut down in a salary is the problem they face.

The growth in terms of the GDP has been progressing in the airline industry. They differ from country to country. As the highest GDP forecast is for Qatar Airways, Briatin and the least for Iceland. The industry is one with huge investment and huge outcome resulting in dominating a major portion of the economic industry.

gdp_growth2009.gif

Mergers: The mergers that include the contract between two companies or industries under the same footnote to come and serve as one influencing the other or improving the current scenario. The government are many times in support of the mergers depending upon the situation and the outcome of the merger. Currently as far as India is concerned the merger or takeover of the government airlines by a private one is been talked about. As the situation of Air India these days is been going verse as not sufficient airplanes to carry and Boeing have certain destinations and areas as per the government rule as to where the flights can operate and others. Hence, the government will cooperate if the mergers are for the well being of the economy else it will be of no benefits for the other.

Findings:

The expansion of the airline industry is on hype. The growth of the airline industry is having a positive impact on the economy as they in turn are the inflow of cash for various other activities.

In general for the airline industry are to be meet when a decision concerning the same is been taken into consideration. As the civil flying standards are to be meet.

The current trends or recession has hit the airline industry to a less extent as compared to the others. And hence, it still serves its purpose and is least affected by the economic downfall, effect was seen only on the initial stages where a lot of flights were cut down and those relating to the less economic places had no longer flight schedules.

Difficulty is faced when a new player gets into the airline industry due to huge infrastructure and much because of the government rules and policies. Once the airline industry requires huge some of investment as well as a favourable balance to carry out the rest.

Private sector has been dominating the airlines and future can be seen as the private players are the market leaders and the government intervention has been quite reduced.

New techniques of constant improvement as far as the technical aspect of airlines is concerned and Boeing has made a few major changes in its airlines and technology has been improved for the better.

Constant updating for comfort and luxury are taking the upmost priority and the cost are been kept into the budget of the current public scenario.

Highly complicated set off recruitments and processes for talking the employees have been faced as far as the private airlines are concerned and government strictness over the official commercial airlines too have maximised.

Cut throat competition have been faced with in the several companies of airlines, where by options for talking over the other is been the best outcome to reduce the competition.

RECOMENDATION

The regulations pertaining to the airline industry are quite transparent and need less scope of improvement.

The target market should soon hit the lower income groups as well though efforts are been done for the same but not internationally.

As per the flights schedules, weather and other environmental factor the frequency of flights should be increased.

Negotiate long-term contracts with service providers to lock-in incremental fees and surcharges as such.

Evaluate the feasibility of ocean freight and for some portion of international deliveries which hold importance.

Establish and develop high Quality Agreements between appropriate stakeholders

Develop a “Plan B” which means to hit the target market and serves the industry well.

Further scope of improvement from the government of motivating the online booking strategy.

Government intervention should be slightly reduced and proper taxes should be charged and reviewed.

Strengthen and change the impact and regulation wherever necessary.

Impact Of Dlf Ipl On Two Economies Tourism Essay

There exists no such event whose effects can be annulled in any way. No event takes place in an isolated way, defeating the very purpose of the event. The event has direct or indirect influence on every aspect of our lives and these include social, cultural, economic, environmental or political aspects (Allen et al., 2002). The payback from an event is enormous. A lot of constructive and encouraging associations are formed during the event. This is one of the most important reasons for the attractiveness and fame of an event (Bowdin et al., 2006). It is inevitable to measure the various impacts of an event, thus ensuring the proper monitoring, control and evaluation. Recent literatures have revealed an interesting fact, that the methods used to measure the event, and also the aspects measured differ significantly (Wood, E.H., 2005). Primarily, constructive social, cultural as well as economic impacts are normally recognized to be the probable advantage to event hosts (Veres et al., 2008). It is obvious for the hosts to have an inclination towards giving more importance to the economic impact, highly influenced by the tourism research. Economic advantages of an event are very vital to the host. Hence it is very imperative to have good frameworks for the measurement of this aspect. However, an accepted fact is that economic benefits are not the only advantage which comes with an event. Various elusive benefits have to also be measured to know how successful an event has been (Bowdin et al., 2006); Jones (2001) suggests that even if the former unconstructive effects are included having a limelight merely on straight expenses payback will still give an unfinished image. However, it is also to keep in mind that events can sometimes have negative and unplanned consequences and these penalties can lead to the event having both media and public attention for the wrong reasons (Allen et al., 2002). This has to be kept in mind during the planning and execution of the event. The power of media in deciding how an event is shown is formidable. The media can have a strong social and cultural impact upon society. Thus the media can influence how the event is professed, and also how it is shown to remote audiences (Getz, D., 2007). Events can basically have two kinds of outcomes i.e., positive and negative impact on the host communities and stakeholders (Allen et al., 2002). Event failures can be very devastating, bringing in negative publicity, humiliation and expensive lawsuits (Bowdin et al., 2006). Hence a lot of importance is placed on the financial impacts of an event. Factors leading to this are that both the employers and government need to meet budget goals, deadlines, and also be ready with explanations for the expenditures and an important factor is that financial impacts can be easily measured (Allen et al., 2002). Getz, D. (2002) suggests fours main costs and benefits that have to be evaluated: tangible benefits, tangible costs, intangible benefits and intangible costs. Also the methods of measurement or assessment used vary with the impacts to be measured or assessed. To calculate the overall impact of the event, social and cultural benefits cannot be left out. However, rather than following a statistical approach calculating them may require a narrative approach (Bowdin et al., 2006). The impact of an event is sometimes calculated well before the event actually takes place. This is because in many scenarios, after the event policy focus shifts elsewhere (Jones, 2001). Long-term effects of an event are very crucial. No matter the event being attended or not by the local community, the effects will be felt by them (Ritchie and Smith, 1991). The host society can be provided with a policy for putting forward their knowledge, hosting probable shareholders and endorsing new business opening by the event (Bowdin et al., 2006). These events can create possible employment opportunities during the construction phase (Allen et al., 2002). One of the most important impacts of a mega-event is on the tourism industry which would bring in lot of visitors to a particular place which has never been a tour destination before (Getz, D., 2006). This paper focuses on the various impacts of DLF IPL on the South African community and how it has contributed towards the Indian economy. It also discusses the various advantages and disadvantages that are involved with DLF IPL.

OVERVIEW OF DLF IPL

The DLF IPL is organised by the well established event management organisation IMG WORLD, LONDON. The Indian Premier League (IPL) has been produced by the joint venture between IMG and the Board of Control for Cricket in India (BCCI). For the IPL IMG explored the most favourable fair as well as mercantile model and a huge amount of $724m were raised by carrying out the notable authorization sale procedure (IMG World, 2009). In India, IPL is one of the most economically victorious sports idea ever initiated. The IPL is played according to the most up-to-date cricket layout which is Twenty20; this decreases match playing time to three hours, and thus makes it ideal for major time television as well as live in-stadia spectators. The television production and distribution rights, franchise rights, event and venue management and sponsorship sales for the IPL is handled by the IMG. The shifting of the venue to South Africa in the year 2009 was taken care by IMG.

IMPACT ON INDIAN ECONOMY DUE TO IPL SWITCH TO SOUTH AFRICA

All the businesses in India right from the road trader to the publicity organizations holding millions of dollars of shares are faced financial crisis because of the shift of IPL from India to South Africa due to security reasons as the IPL dates conflicted with the general election dates in India. The market analysts sensed that this sudden move from India to South Africa has grinded down from the Indian marker an ample amount, adding up to the already existing despair of global financial slump. Last year the IPL had contributed up to 1 billion rupees to the Indian economy, but due to the shift to South Africa which involved a lot of additional expenditure the BCCI did not incur a lot of income. The media houses in India did undergo a major income loss, which was estimated to be from 500 million to 700 million rupees. The estimated loss when it came to the gate receipts was 500 million rupees. The hospitality industry as well as tourism industry had a major impact. But there was an advantage tagged to this shift as well which was that IPL is now seen by people as a tournament with international value.

OVERALL IMPACT OF DLF IPL ON THE SOUTH AFRICAN COMMUNITY

According to Getz (2007) all events have a direct social and cultural impact on their participants, and sometime on their wider host communities. But, some events leave a legacy of greater awareness and participation in sporting and cultural activities (Bowdin et al., 2006). The Indian Premier League (IPL) has contributed a lot towards the education in South Africa (The Hindustan Times, 2009). According to Getz (2007) the financial profits are gained when the particular event can pull in extra income for the community benefits which is either in the form of endowments or funding. As stated by Fakir Hassen (2009) Lalit Modi, who is the man behind IPL proclaimed a scholarship of over eight million and this was one of the best programme towards community development in South Africa by a sports oriented organisation. This money given towards education benefits (Torkildsen, G., 2005) has also helped in the initiation of Help Educate and Teach (HEAT) programme that was commenced at the Alexander Sinton High School in the suburb of Athlone. The schools and individual learners will be benefited by this programme. Lalit Modi stated that any attempt towards development and strengthening of individuals as well as nation always remains as a soul of superior education. He also stated that India has emerged as a successful nation because of its strong education basis: “This emphasis on education is now paying off many times over as India has grown into an economic powerhouse far better equipped to lift people out of poverty”(The Hindustan Times, 2009). The investment of DLF IPL in the in the education of South African community targets towards a prospect return (Getz, D., 2007) and cautious analyses of this is vital. According to one of the strategies set out by Bowdin et al. (2006) i.e., Local area strategy; the DLF IPL created a carnival atmosphere by celebrating cultures of the South African community which in turn led to the enhancement of community unity. According to the report by the Hindustan Times 32 schools have benefited from the HEAT programme. For the learners who attended the DLF IPL matches, with the cooperation of the producers of the television five learners were recognized at individual matches and their faces were displayed on the monitors in the stadium. Each one of these received 15,000 rands as part of their school fee.

Cricket South Africa (CSA) chief Gerald Majola stated that the IPL model could be used to make this game a global sport event and this in turn would help other set-up’s take a great leap as well. The benefits gained economically were considerable. During this period of economic crisis the IPL has built a strong base for the South Africa’s tourist industry (Bowdin et al., 2006) and also proved to set out to the world that it is capable of hosting the FIFA 2010. According to Allen et al.(2002) other than the expenses of the event the people who came for the event put in their money on tour, lodgings, and other services in South Africa and there was a increase in hotel room bookings by 40,000 which otherwise is normally very low during winter season in South Africa. The South Africa government is majorly focusing on tourism sector as an upcoming industry that is competent of increasing the economic benefits and employment opportunities (Bowdin et al., 2006). In addition to the tourism produced throughout this event, IPL has also involved a lot of media reporting (Allen et al., 2002) and due to this the South African community profile has gained importance (Getz, D., 2006). The IPL has not only boosted the confidence of the youthful South African cricket players but has also provided with an opportunity to take part in a sporting event that is recognized worldwide (The Business Standard, 2009). “It is still sometimes argued by event ‘boosters’ that mega events generate benefit from the legacy of infrastructure and venues, but this assertion can easily be wrong” (Getz, D., 2007), because the basic purpose of IPL is very fruitful considering the fact that it brings the cricket stars worldwide who are against each other on nationalized defences into single squad (The Business Standard, 2009). This event has created a long lasting bond between the two countries (India and South Africa). Hosting the IPL in South Africa has not only made IPL a global brand, but has also brought billions of income to the South African economy.

SWOT ANALYSIS OF DLF IPL

Based on the details in Indian Premier League (2009) the following have been identified to be the:

STRENGTHS OF IPL:

The Indian Premier League (IPL) follows the Twenty20 format of cricket. This is the shortest version of the game, thereby finishing within two and half hours of game play. Unlike the One day format, which takes a full day to complete, or the Test format spanning five days of play, the Twenty20 is fast-paced and electrifying. Thus pulling in a large crowd to watch the game even on weekdays. Also the IPL has employed people who can really market goods well. These highly trained economists maximize the revenue with their very clean and methodological approaches. This makes IPL an integrated sport. Further each team has players from different countries. This causes a wide range of support of different communities to a single team, thus making cricket globally accepted. The supremacy of the BCCI in the control of ICC has a lot of benefits to DLF IPL. The financial backing from BCCI and also the power to manipulate the dates of international cricket matches favours the IPL.

WEAKNESS OF IPL

The pace at which people lead their lives now, they hardly have time to lavishly spend on watching a sport. Since IPL has satisfied this need of theirs, people are happier to watch the twenty20 format. Lots of talk has been going on about the status of other formats of the game and how to revive it. But the truth is, IPL has damaged the image of One day cricket and Test cricket. Further, a lot of money is involved in the IPL. Failure of a team can hurt the management’s financial position a lot. Teams also spend a lot on advertisement, cost of players, brand promotion. Hence sponsorship is hard to find for their overpriced rates. A team doing well will fare well. If not tough times lie ahead.

OPPORTUNITIES OF IPL

IPL has a budding fan following. Since it is striking and very attractive, a lot of potential sponsors and advertisers are willing to invest a lot in this event. The IPL has eight leagues. Each being responsible for itself in every sense. Every franchise has to market its team well and get a large fan following behind their team. This in the long term will generate a lot of revenue for them. There is a nice opening for teams to sell their brand name in forms of shirts, accessories and other memorabilia. Another important and vital opportunity for IPL is to target the teenagers. The older people will naturally have a stronger inclination to the traditional form of cricket. But the youth today will like this thrilling and breathtaking format. Each franchise will continue to pay the same fees till 2017-2018. Hence the teams need not worry about inflation, which has been a drawback in India for the past few years.

THREATS OF IPL

If the top players in world cricket can’t be brought into IPL teams, it will lose its popularity. Further, the domestic season in Australia runs concurrent with IPL. If the Australian players are not allowed to choose IPL instead of their local teams, a lot of fan following will be lost.

Impact Of Culture On International Hospitality Business Tourism Essay

With the changing environment and stepping into the new centuries made all industries to change itself, especially when it comes to hospitality industry. First of all, hospitality is a major and diverse industry around the world. And business in today’s world is not a constant one which stands there in the market forever. It changes according to different causes like time, trend of the market, customer expectations and also includes culture. A fine definition of culture is, “Culture refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, and possessions acquired by a group of people in the course of generations through individual and group striving.” (Hofstede, 1997).

Culture plays a major role in any kind of business that exists in the market. Especially when it comes to the international hospitality business, culture is a serious fact to consider in order to survive in the market. Culture exists and differs from place to place and time to time. And some cultures already spread way beyond their boundaries and reached their new destinations. Cultures rage battles among themselves to survive. So the key factor in order to run a successful hospitality business or any kind of business is to understand the different cultures.

Culture acts different in different places. For example managing a culture in a work environment is different when looking at the customer’s point of view. It is a tactful theory for managers to handle it in any kind of organizations. In today’s world it is really hard to find a place where there is no existence of more than one culture. Today’s world is mixed with different cultures which makes more difficult for the managers in order to handle the business. Let us discus in brief about international hospitality business before we look deep into the culture. Hospitality is a service industry which is very important for every nation in the world. A fine definition of international hospitality business is, “When a domestic hospitality company establishes a new business in a foreign market, this company is said to be engaging in international business. International business is defined as a business transaction taking place between two or more companies from different countries. These transactions can be in trade, manufacturing, investments or services.” (Yu, 1999).

A very important fact is that the hospitality as well as the tourism industry is service industry, but they do differ from each other. Hospitality industry is more based on food, accommodation, communication and customer service where tourism industry is based on travel and destinations.

When it comes to the culture mix with the hospitality industry, it always ends in a disaster business if there is no proper management to take care of it. Hospitality as a service industry is mainly focus on customers, where in this industry the customers are from different places which mean different cultures. First fact is that dealing with different kinds of customers from different cultural background is very difficult under one roof. The second fact is that establishing a new hospitality business in a new destination could be more difficult to handle. For example if a company from Japan establish its hotel in New York, the managers must understand the cultural trend of New York in order to run the business. They cannot implement all their Japanese knowledge and policies into the business immediately. They must understand the people who live and travel there to have a successful business. “For international companies, research shows that often companies successful in their home countries have failed in foreign markets not because of technical incompetence but because of a lack of knowledge and understanding of a foreign market culture.” (Jia, 2010). That research proves that the culture could influence the business in many ways.

The third and major fact that influences the hospitality business lies nowhere but inside the business itself. It is the internal environment of the business which is its employees. In other term it is called as cross culture business environment. Due to the various immigration policies and searching for the right candidate for the right job made countries to hire foreign employees. This is one of the main causes which strengthened the cross culture environment. At the present market, almost all industries have cross culture environment.

Though it has lots of advantages like less pay, more hours and profit, it also has some disadvantages, especially for the managers. The following research shows us an idea of what is a major issue for managers when come to handle the cross couture environment. “Factors associated with the task influence by how much the diverse group is more creative than the homogeneous single-culture group. Diverse groups outperform homogeneous groups on complex problem-solving tasks, but may be less successful in performing routine tasks. Diverse group need time to resolve difficulties of working together. In an experiment conducted over 17 weeks Watson et al. (1993) found that the both group performed equally but the diverse group performed better in finding the range of possible solutions.” (Mead, 2005).

The research shows that even though the diverse group performed better than the homogeneous group, they take time to settle themselves as a team to perform to gather and consume lots of time to do that. But time is really an important matter for today’s business. Everything runs in a way where even a day is too short for everything. This could be an issue for managers especially when it comes to the fast environment like hotels and restaurants. But the managers have to invest time on their employees to make a strong environment in his business. This led the managers to the simple management cycle which is shown below,

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(Vinette, 2008)

The first important fact is to hire the right candidate for the right job. Training is an important fact that could solve any kind of issues in the organization. Training strengthene the business enviornment and it results in a good outcome. If there is a powerful training process in a multicultural business enviornment,then the result woud be more effective and positive for the business. That is the reason training process in the organization is considered as an important fact in each process of the business.

An other factor which influence the international hospitality business is the external factor. Changing trends, taste and the preference of the customers rule the market. And the technology is way beyond than the human expectation which helps the different cultures to spread around the world and find their new homes. This results in us living in a multicultural enviornment. All these affects hospitality industry directly or indirectly. Being as a service industry,it has to change according to the time and the situation in the market which is not easy as it seems in this competitive market.

At first to overcome the issues in the internal factors such as managing cross culture enviornment, business managers comes with the different kinds of model as a solution for this issue. One of the famous model used by the international managers is ‘comparitive model’. “The model enable the user to make comparisions between different cultures and any one culture is described in relation to another culture or cultures.” (Mead, 2005). This helps the managers to understand the different cultures and gives a basic idead of handling it. But if a cross cultural environment is properly managed and trained,then the resul will always be an successfull and profitable one.

All international hospitality industry involves in the matter of encountering their customers from different cultural backgrounds. So the issue for the managers is not just to manage the internal factors (employees) but also the exernal factors,i.e, the consumers. Managing customers is really important and really a hard task for managers as there are plenty of competitors in the market. And the customers are like a free bird in this socialist economy. “The cultural background srongly influences the consumer behaviour, Ignorance of core cultural sensitive values often leads to erroneous belief resulting in unhappy customers and lost business.” (Mohsin, 2006). This is a fine example. The Western culture people go for the time saving process in any kind of industry where Asians prefer high quality interpersonal relations. Even the view of the consumer about a product is differ from each cultures. And ignorance of the cross culture will have a direct impact on the business and leads to winding up specially for hospitality industry bing as a servic industry.

It is very important to note that both the internal and external factor of the hospitality industry is well connected. Employees works in a way with the consumers to run a smooth flow of business. The relationship between the employees and their actuall customers is measurable which makes easy for the managers to run a profitable business. The multicultural enviornment in the hospitality industry is a boon to the business, because the employyes itself will find a way to interact and communicate themself to understand the needs of the foregin consumers. As the internal enviornment itself has different cultures which mean different ideas and solution for the different problems which is a key way to a successful business.

At this 21st century, hospitality industry like hotels, restaurants are worldwide. A research shows that there are existence of 279 foregin hotels in a singe state of China. (Okoroafo, 2010). This shows us the increasing level of international hospitality business worldwide. When a business extends beyond its territory, then there is a strong percentage that it will get mixed with the other cultures. A best example is opening a Japaneese hotel in the heart of U.S.A. In this case,the japaneese company will bring their own management people who will be mixed with american candiates. This i called as a cross cultural management. To run the busines,Japaneese managers must understand the culture of America at first and also other factors such as govermnt policies and rules and regulations. Understanding culture is one of the important fact when it comes to the hospitality busniess.

Policies and regulations of the goverment may sometime affects hospitality industry.For example the immigration policies of goverment always have an impact on hospitality business. It has both positive and negative sides. The following graph shows the immigrations of U.S.A from the year of 1820-2010,

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The graph shows that the immigrants in the U.S alone has reached its peak level where they have never seen anything like this in their American immigration history. And this make America as a multicultural nation. Because Each Immigrants brings their own culture into the country. This happens not just in America, its worldwide now. This will slowely affect the hospitality industry as there is a slow change in the the culture of the country. Over croweded muticultural nations also have issues like racism and equality which affects not only the hospitality industry but all industries. So it is the duty of the managers to keep an eye on the Nations culture and update their business and the products according to the cultural change.

CONCLUSIN:

As we are living in a changing cultural enviornment, we need to adapt ourselfs in order to survive in this competitive world. And our business adapts with us in a matter of fact. Even though there are lots of cultural changes occurs in the soceity, Hospitality industry survived those impacts which were thrown by our different cultures. The key factor is the training which helps the managers to manage both the internal and exernal factors which ifluences the hospitality business. If an international hospitality manager manages to give a proper training to his multicultural employees,then there is no doubt that the business will be successfull one. And it is also important to keep an eye on the muticultural future which is very near and crystel clear.

Impact Of Casino Gambling On Crime In Singapore

Gambling is an illegal activity in Singapore. Under the Singapore law, only those with licenses such as, Singapore Pools and The Singapore Turf Club are legally to offer gambling to the public. Sport betting, horseracing, and lottery wagers are only allow for persons of age 21 and above. In 2006, Singapore government decided to allow two new Integrated Resorts, the Marina Bay Sand and Resorts World Sentosa with casinos. The government believes that these two Integrated Resorts would provide a strong boost to the economy and job opportunity to the country. The decision by the Singapore government to set up two integrated resorts with casinos has stirred up some debate among its citizens. Some people think that having casinos could mean more people gambling and getting themselves or their families involved in trouble such as crime. In addition, social problems like bankruptcy, divorce, suicide, income loss and problem gambling may also be increased after a casino was introduced in Singapore.

Singapore has just officially opened its two casinos in February and April 2010. The government has enhanced the regulation of casino gambling in order to mitigate the negative effects of gambling. The new casino gambling laws has provided a number of social safeguards to prevent Singapore citizens and permanent residents from becoming problem gamblers. These social safeguards include entry levies, credit and loss limits, self-exclusion order and protection of minors (MCYS 2005).

Objectives

According to The Straits Times (2004), Singapore has become No.3 in the world in terms of gambling per capital without a casino. Many Singaporean like to travel to Genting Highland (Malaysia) and gamble at its casino. Some on them would also go on Star Cruise to try out their luck on the limited number of slots and gambling tables. Gambling is not new to the average Singaporean but having a casino is a relatively new phenomenon in Singapore. Hence, this proposed research will focus on the relationship between casinos and crime in Singapore. The research will also assess the quality of life before and after the casinos opened in Singapore, and measure the effectiveness of social safeguards. A survey will be conducted to determine the public perceptions of changes in crime and the quality of life that may have accompanied the advent of casinos. In addition, qualitative data reflecting quality of life will be gathered from interviews of community leaders, police officers, businesspersons and social service providers. Finally, recommendations for actions to help to combat casino gambling-related crime will also be discussed in the research. The followings are some hypotheses (H) that I will be investigate in this research:

H1. Casinos gambling increase crime.

H2. Casinos gambling have negative effects on quality of life.

H3. Higher casino levy will not be more effective in deterring problem gamblers.

Literature Review

Casinos are often associated with criminal activity. A number of studies in the United States and Canada that have analyzed the relationship between casino gambling and crime have yield contradictory and inconclusive results. Grinols wrote the article: Casino gambling causes crime in 2000 and he has pointed out that the evidence in his research has shown that casino gambling causes significant increases in crime. According to the article, a number of pathological gamblers have lost control over their gambling behavior, personal lives and job. They relied on other to provide money to relieve a desperate financial situation caused by gambling. Moreover, some of them got themselves involved in illegal activities. One of study gamblers in treatment found that 62 percent committed crimes because of their gambling and nearly 400 members of Gamblers anonymous showed that 57 percent admitted stealing to finance their gambling (E.L.Grinols 2000). The study proves that casino gambling related to crime.

In the same year, Grinols conducted a research (Casinos, Crime and Community Costs, June 2000) with Professor David Mustard, Cynthia Hunt Dilley to examine crime statistics for all 3,165 counties in the United States from 1977 to 1996. They looked at local crime rates before and after casinos opened. The data shows that crime rate increased after the casino had begun operation in the majority of the casino counties. However, the data also indicate that there was no significant rise in crime rates for the first three years after casino opened and the crime rates began to rise in casino counties after three years. The study concludes that the crime rate in the casino counties is higher than counties without casino. Las Vegas, for example, the crime rate is higher than other counties.

This study has certain limitations that need to be taken into account when considering its contribution. There are many strengths and limitations of official statistics (crime statistics). They offer the opportunity to identify trends in crime overtime as well as look at more than just the crime committed by problem and pathological gamblers. However, these data only show the rate of recorded crimes and they may not be an accurate reflection to the actual crime being committed in society. In addition, researcher may also find it difficult to analyze the share of crime related to casinos from the mass of other crime that occurs all the time. It is difficult to prove that the advent of casino has the direct effects on crime. Thus, researchers have to get various sources in order to prove the validity and reliability of their study.

Grinols and Mustard did another the study in February 2006 on “Casinos, Crime, and Community Costs”. The study is a remarkable contribution to the gambling literature. The study provide as detailed discussion of theoretical connection between casinos and crime. The authors discuss two potential factors through which casinos may reduce crime. First, if casinos provide labor market for low-skilled workers, crime may fall. Second, economic growth effects attributable to casino gambling that could reduce crime.

On the other hand, they also discuss the five potential negative effects of casinos on crime. First, casinos drain the local economy of resources and may harm economic development. Second, casinos may contribute to an increased crime payoff. Third, casinos may increase the number of pathological gamblers, and this can lead to more crime. Fourth, casinos may also attract criminal activities, resulting in more crime. Finally, casinos may induce a change in local population, towards one more apt to commit crimes. According to the result of the study, casino gambling has generated externality costs, and crime is one of the biggest components of these social costs. Grinols and Mustard believe that the social costs of casinos are greater than benefits.

Joseph Friedman, Simon Hakim and J. Weinblatt did a study in 1989 on “Casino gambling as ‘growth pole’ strategy and its effect on crime”. They have found that casinos had increased the level of crime in Atlantic City. Another study, done in 1989 by Simon Hakim, Andrew J. Buck and Uriel Spiegel, centered on Atlantic City and 64 communities in surrounding area. They assume that casinos in an areas increase the crime rate in that area. Based on their (Hakim and Buck) theory, the opening of a new public area such as casino will attract attention that is more public and create opportunities for criminal.

However, Eadington (1996) argues that the introduction of theme parks or resorts into an area could have similar negative effects as do casinos on the area’s crime. For example, the crime rate has been increased after the Mall of America (super-regional shopping mall) opened in Bloomington, Minnesota (R.Garcia, & L. Nicholls 1995). Hence, Eadington (1995, p7) has concluded that “there is no compelling evidence that crime rates in cities with casinos are much different than in cities with tourist attractions in general”. His argument is similar to Hakim and Buck’s theory but he suggest that the crime rate increased is not due to the casino per se.

Scott T. Horn, a New York civil appeals lawyer disagrees with Hakim and Buck’s theory. He did a study on “Casinos and Crime: Don’t Bet On it” in 1997, which concluded that there is probably no relationship between casinos gambling and total crime rate. To overcome the weaknesses of the Hakim-Buck model, Scott develop a model to predict the casino gambling on crime rate by using data from crime statistics and FBI’s Crime Report. According to his theory, cities with significant number of casinos, the increase in casinos, which would in turn increase in crime rate, would have little impacts on overall crime rates. This is because there has been a decline in the novelty effect. The results and conclusion of the study differed from the studies that I have mentioned earlier. Horn (1997, p4) concludes that, “the effect of casinos on crime will decrease at a decreasing rate with each additional casino opened in any given region”. Las Vegas has over 250 casinos, Macau has 28, Singapore has two now. Based on Horn’s theory, the effect of casinos on crime rate in Singapore would be more significant than Las Vegas or Macau when a casino first open in Singapore. However, the crime rate would decrease with the opening of second or even the third casino.

Few studies have also examined the effects of casinos on crime. Those studies that have analyzed the relationship between casino gambling and crime have yielded contradictory results. Most of them are using vague references to survey or fanciful figures to support their claims. U.S News & World Report perform a “computer analysis” and shows that town with casinos have experienced a rise in crime at the same time it was dropping for the nation as a whole (S.T.Horn 1997). However, in terms of validity, the present result may not be accurate and reasonable reliable because the report never mentioned on how the computer analyzed the data.

There are many studies focus on the relationship between casino gambling and crime in the United States, only a handful of studies have examined the casino gambling in Asia. Macau is openly known as a casino state in Asia. It has more than 30 casinos and 4,600 gaming tables, which has overtaken Las Vegas in terms of gaming revenue (China Daily, 2009). However, the total number of crime in this island city has increased from 4,717 in 1987 to 8,576 in 1996 over the last decade. Crime rate per capita has increased from 14.11 per 1,000 people in 1987 to 20.62 per 1,000 people in 1996 (S.H. Lo 2005). This has created a serious social problems directly affect the residents’ daily life. Nevertheless, the crime statistics may not be able to reflect the reality as some people may not report the crime because of the complicated procedures and time wasted.

Despite the proliferation of legalized casino gambling in Asia, Europe and United States, it remains controversial with regard to both its effect on crime as well as its effects on the diverse socio-economic aspects of the community. According to a study (H. Lesieur 1996) on gambling and crime, a heavy concentration of casinos in an area is associated with tourism-related crime and some communities with casinos have little or no measurable crime impact. The author also claims that the pathological gamblers may commit crimes to finance their gambling (H. Lesieur 1996). Yet, the UCR (Uniform Crime Reporting Survey) measures are not precise enough to gauge all changes in the incidence of crime.

Casino is often used as a panacea for economic ills. Casino gambling in the United States has provided new capital investments, jobs and some degree of economic vitality to areas that were in need of economic revitalization (B.G. Stitt, & M. Nicholas 2000). On the other hand, casinos do change peoples’ pattern of spending and saving. For example, in 1992, a study has reported that Americans spent more on legal gambling than on other leisure activities such as reading or watching movies (S.Simurda 1994). In addition, the impact of casinos on a community quality of life is difficult to gauge. For example, casinos bring tourists and entertainment but other recreational amenities (theaters, karaoke lounges, and restaurants) bring traffic, noise and a change in community’s traditional social and cultural environment. Whether the change is in positive or negative, it all depends on the individual and his or her view of gambling, and the changes it brings to a community. Ultimately, the evaluation of casinos’ impact on a country may well depend on the country’s pre-casino well being, as well as each individual’s assessment of the benefit and detriments that casinos bring to the country, and to each individual’s lifestyle (B.G. Stitt, & M. Nicholas 2000).

Methodology and Data Collection

In order to produce a more comprehensive understanding of the study, a multi-method approach will be applied to examine the immediate effects of the casino gambling on crime, quality of life, economic development, and social costs. To analyze these issues, I have chosen Singapore where casino gambling has recently been introduced. Information will be obtaining by conducting a survey and a series of in-depth interviews with selected participants. I will use both quantitative and qualitative data to analyze the various short terms impacts that the introduction of casino gambling may have on Singapore. The following types of information will be gathered:

1. Obtaining the crime statistic from Singapore Police Force (SPF)

2. Conducting a public opinion survey

3. Gathering the data on the crime and quality of life by interviewing community leaders (Member of Parliament), police officers, businesspersons, problem gamblers, and social service providers

4. Gathering data on local quality of life from public sources (e.g., suicide data from Registry of Births and Deaths, Singapore Immigration and Registration; bankruptcy statistic from Singapore Ministry of Law; divorce rate from The State of the Family in Singapore Report)

5. Collecting data on the economic impacts of casino gambling from public data resource such as Statistic Singapore and Singapore Ministry of Manpower

Participants need to meet two criteria in order to be eligible to take part in the survey. First, the participant must be at least 21 years of age. Second, the participant must have been live in Singapore for at least 5 years. Furthermore, researchers need to be aware of the ethical issues when conducting a survey and interview. All the personal information of the research participants should be kept strictly confidential.

Data on the crime rate

Crime statistics can be obtained from SPF. The crime rate is based on the total population that comprises Singapore residents and foreigners staying in Singapore for at least one year. Crime classes refer to the six classes of Crimes Against Persons, Violent Property Crimes, Housebreaking and Related Crimes, Theft and Related Crimes, Commercial Crimes, and Miscellaneous Crimes. With the opening of two casinos in Singapore, an elite police department has been set up to investigate casino-related crime. This department would be able to provide an accurate number of crimes attributable to casinos. Casino-related crimes will be distinguished from the overall criminal activities.

Casinos attract a large number of people, many of whom may be visitors from other countries. Therefore, crime rates that adjusted by the local population rather than the population at risk (local population plus visitors) will bias crime rate upward. To avoid this bias, population at risk will be controlled by gathering data on the number of foreign casino visitors and these data are routinely collected by the casinos. I will conduct the interviews with police officer in order to know more about latest crime trend and increase police resources regarding casino gambling.

Economic factors must be considered when examining the relationship between casino gambling. This is because economic factors can influence crime rates in a country. According to the economic approach to crime, opportunity cost is relative to the increased criminal activity (G.S. Becker 2001). Difference in opportunities people face such as unemployment rate and median household income are the primary determinant of committing a crime. For example, higher unemployment rate and lower median incomes are expected to be positively correlated with criminal activity because the opportunity costs of incarceration are lower. Similarly, crime rates are expected to be higher as the proportion of the population below the poverty line increases or during economic downturns (B.G. Stitt, & M. Nicholas 2000).

Public Opinion Survey

A public opinion survey will be conducted and the survey responses will be completely anonymous and voluntarily. The data collected will contain the perception data and opinion. In order to archive reliable results, 250 of randomly selected participants (Citizens and permanent residents) will be involved in the survey. This survey includes questions regarding quality of life in Singapore. For example, respondents will be asked to evaluate the impact of casino gambling have on their lives in particular, have they perceived the changes in crime, do they feel there is an increase in employment options, financial well being, and recreational opportunity, do they think having casinos is good or bad to the country, etc. These are some of the important questions that provide the information that will not likely show up in an examination of crime statistics.

The survey will be designed to ask questions in three general areas. The first area of the survey will include the demographic information such as age, marital status, gender, race, education background, and the income of the participant. The second area will ask opinion of participants on the impact of the existence casinos on Singapore. The third area, participants will be asked the questions regarding gambling behavior (e.g., “Have the participant ever been to the casino? “How many times do they go in a month”? “How much do they spend gambling on average?”) .

Data on Quality of life and Social Problem

Social problems such as family dysfunction, divorce, spouse abuse, suicide, and bankruptcy often mentioned when discussing the impact of casino gambling. These are important determinants of the social costs of casino gambling. Quantitative information on these variables can be obtained from the gambling related organizations and government departments. These include:

National Council on Problem Gambling (NCPG): http://www.ncpg.org.sg/

Registry of Births & Deaths Citizen Services Centre, Immigration Checkpoint Authority (ICA): http://www.ica.gov.sg/page.aspx?pageid=144&secid=143

Ministry of Law: http://app2.mlaw.gov.sg/

State of Families in Singapore Report: http://fcd.ecitizen.gov.sg/NR/rdonlyres/19BA7E14-E7C6-464B-9251-22D3D2C559D2/0/Chpt1.pdf

Ministry of Community Development, Youth and Sports: http://app.mcys.gov.sg/web/faml_supfaml_familyservicesctr.asp

The number of divorce, suicide and spouses abuse is available on the website mentioned above. However, it is difficult to know the portion of those caused by gambling related problems. Therefore, personal interviews with counselors and social workers provide a great opportunity for me to evaluate the benefit and costs of casino gambling. In addition, the effectiveness of social safeguards can be measured through the survey and interviews. Personal phone interviews with the pathological and problem gamblers enable me to explore their perspectives on casino gambling and social safeguards, as well as to understand the effects on the gamblers’ family and society. The effectiveness of social safeguards can also be measured by gathering the data from the two casinos, which provide the number of visitors (Citizens and permanents residents).

Data on the Economic Impact of Casino Gambling

The qualitative information will be gathered to augment information that obtained from the crime statistic and the public opinion survey. The economic impacts of casino gambling are tangible and quantifiable. Data of the positive and negative impacts of casino gambling on tax revenue, tourism industry, other business (e.g., movie theaters, pub, karaoke lounges, restaurants and retail shops), employment, wages, the number of people on welfare and property values can be obtained from public records (e.g., court records, police records, criminal records and criminal history, arrest records), Statistic Singapore, government departments. (e.g., Singapore Tourism Board and Ministry of Manpower). The chambers of commerce, public officials and local businesses are valuable sources of information. I can gather these data from personal or phone interviews with them. Social benefits are important consideration when examining casino gambling. Questions will be focus on the positive or negative impacts of casinos to the country’s economic development such as infrastructure improvement, increased tax revenue and police resources. Tourism development and improvement of infrastructures are some benefits that casino gambling may provide. This type of information may not available publicly but is readily available by speaking with officials in the chamber of commerce or community leaders.

Casino gambling may increase or decrease welfare rolls. On one hand, casinos may provide job and reduce welfare rolls. On the other hand, problem gambling may lead to unemployment and an increase in welfare rolls. Similarly, casinos may boost the tourism industry or harm other businesses if potential customers spend their money on casino gambling. The perceptions and opinion of public official and businesspersons will provide much valuable insight into these issues. Local media (e.g., journalist, reporters) can provide me additional information on the perceptions and the impacts of casino gambling. These data can be gathered from local newspaper or website.

Data Analysis

A mix of quantitative data and qualitative data will be gathered in this study. The analysis of quantitative survey data and statistic data is time consuming therefore analysis of quantitative data will be conducted first followed by the analysis of qualitative data.

Quantitative Data

The statistical data analysis will be used to examine the hypotheses in the proposed research. Data on crime rate, income level, bankruptcy, divorce, suicide, spouse abuse , and welfare rolls are the quantitative data that eligible for statistical analysis. All statistical approaches will involve before and after analysis to examine whether there have been a systematic change in crime and social disruption following the advent of casino gambling.

Least squares regression analysis will be also be employed in the study. It helps us to understand how to typical value of the dependent variable (crime) change when any of the independent variable (population changes, income levels) is varied.

Qualitative Data

Qualitative data is used to augment the quantitative data. Information that has been obtained from the interviews with community leaders, police officers, social service providers, chambers of commerce, businesspersons, and problem gamblers will be analyzed through qualitative data analysis. This is a process of moving the qualitative data that have been collected into some forms of interpretation and understanding of the interviewees, and situation we are investigating (N. Lewins, C.Taylor & G.R.Gibbs 2005).

The collected data will be presented in tabular format. For example, what the proportions of social workers feel that the casino has had a positive or negative impact on society?

What the proportion of community leaders, chambers of commerce, businesspersons, and police officers feel that the introduction of casinos has had positive or negative effects on society? Is the proportion of police officers that feel casino gambling has increased crime significant different from the social workers who feel that the casino has increased crime?

Time Scale & Plan

This research is planned to be completed in six months. First, I will study the relevant literature in order to deepen my understanding of the chosen research topic. I will also evaluate different research techniques and select the most suitable methodology for my research. The first month will end with completing a research proposal and a written literature review.

In the second and third month, I will examine the public and the key people opinions on the casino gambling by conducting a survey and interviews. I will review the questionnaire and interviews questions to ensure all the questions are relevant to the objective of my study. If the survey response rate was not good, I will send out more invitations to ensure I reach my target number. All primary and secondary data will be collected within these two months.

The forth month will be dedicated for data analysis. Once all data are collected, I will organize and interpret these raw data. I will spend the last two months to write my dissertation. The first draft of my dissertation will be finished in the fifth month. In the last month, I will do a final check and revision for my dissertation. The final dissertation will be completed at the time of submission.

Impact of Economic Crisis on Tourism: Literature Review

Literature review on how economic crises affect tourism

Hospitality industry affected by crises such as the economical one theses days.
Customers buying decision&Power influenced when they want to travel by crisis or financial aspects.
Affect on arrivals, expenditures, number of nights stayed, volume due to a crisis (economic and financial)?
Explain law of supply and demand, and give a model related to hotels or tourism if possible.

The impact of crises, particularly economic crises, on the tourism and hospitality industries is illustrated sharply by Watkins (2002), who details how the depressed economy of the United States following the dot com crash led to a rapid decline in the American long haul public transportation system, with significant implications for the US tourism and hotel industries. In addition, not only did the weak economy in 2000 and 2001 create issues in the industry, but the attacks on the 11th September 2001 dramatically decreased travel across the country. However, Watkins (2002) demonstrates that this also led to customers exercising greater power when making their buying decision, with many companies choosing lower class options for business travel, and tourists using the power of the Internet to look for the lowest air travel prices. In addition, the economic and terrorist crises actually benefitted US low cost carriers, allowing Southwest Airlines to reach a critical mass of services, and hence take on the major flag airlines such as American Airlines and Delta.

Indeed, the evidence indicates that during a significant economic crisis, the tourism industry shrinks, but changing consumer preferences tend to minimise the impact of this shrinking, and allow some sectors to grow. Looking at the current economic crisis, Clausing et al (2007) report that many travel executives are confident that the industry as a whole will survive the current recession, and even emerge stronger, and with higher net profits than originally forecasted. This is further supported by Taylor (2008), who reports that whilst sales of traditional holidays in the UK country fell by a quarter over the summer of 2008, with many predicting a further 12 per cent fall over the summer of 2009, this reduction in capacity will provide future benefits to the industry. In particular, the reduction is expected to result in an six or seven percent increase in prices in 2009, which will help the surviving agencies and operators to boost their profits and secure their operations.

However, whilst widespread national or international crises, such as the one occurring at the moment, offer opportunities for some firms in the industry; localised crises can have a devastating impact on arrivals, expenditures, and volume in the local area. The Economist (2003) details the impact of the outbreak of severe acute respiratory syndrome, SARS, on the economy of Hong Kong where it was most concentrated. In Hong Kong at the height of the outbreak, hotel occupancy fell by almost 80 per cent and the two main passenger airlines: Cathay Pacific and Draganair, lost more than 60 per cent of their traffic. Restaurants and hotels in the city also saw almost no economic activity, and retail prices continued their falls which were initiated by the Asian financial crisis in the late 1990s (The Economist, 2003).

The Asian financial crisis itself was a significant one, and had a major negative impact on tourism across the industry, particularly amongst Asian airlines which lost many of their business class passengers. However, in this case the economic crisis created a fall in demand which acted as a catalyst for a significant change to the supply side of the industry (Sadi and Henderson, 2000). In particular, the Asian airlines recognised the need for high levels of adaptability in their supply of services, including the need to be flexible around costs in case of falls in revenue. The supply side pressures led to an increasing extension and consolidation of the various strategic alliances in the industry, as well as organisational reorganisation and the adoption of new technologies. These changes allowed the most successful players in the industry to weather the crisis and gave them the potential to emerge from it in a stronger situation (Sadi and Henderson, 2000).

Indeed, even major crises can provide a boom for some tourist activities in the region where the crisis occurs. This can be seen in Pearce’s (2001) analysis of the development of the New Zealand tourist industry during the 1990s, which was strongly affected by the Asian economic crisis. As a result of this crisis, only the most resilient hotels, airlines and other tourist offerings were able to thrive, hence creating an industry able to rapidly adapt to changing tourist tastes and market conditions. This led to New Zealand developing one of the most diverse and complex tourism industries in the region, giving it significant appeal to a wide range of tourists (Pearce, 2001). Finally, whilst the tourism industry can be strongly damaged by economic crises, it can also reap the benefits of events which occur as a reaction to said crises, or from attempts to resolve them. This is demonstrated by Bue-Said (2008) who claims that the victory of Barack Obama in the US presidential election will tend to be of significant benefit to the tourism industry in the United States: not only will Obama’s proposed rescue package for the US economy stimulate tourism, but as the first African American President of the United States, Obama may well be a tourist attraction himself.

References
Bue-Said, J. L. (2008) Black clouds could be lifting. Travel Weekly; 14th November 2008, p. 26.
Clausing, J. Baran, M. and Compart, A. (2007) Industry is upbeat despite credit crunch. Travel Weekly; Vol. 66, Issue 38, p. 16.
Economist (2003) In intensive care. Economist; Vol. 367, Issue 8321, p. 20.
Pearce, D. (2001) Tourism. Asia Pacific Viewpoint; Vol. 42, Issue 1, p. 75.
Sadi, M. A. and Henderson, J. C. (2000) The Asian economic crisis and the aviation industry: impacts and response strategies. Transport Reviews; Vol. 20, Issue 3, p. 347-367.
Taylor, I. (2008) Holidays out of UK ‘down by a quarter’. Travel Weekly; 14th November 2008, p. 2-3.
Watkins, E. (2002) Another Threat to the Hotel Industry. Lodging Hospitality; Vol. 58, Issue 12, p. 2.