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Airlines industry is a huge and growing industry. It is known as a services provider industry. Airline is not just only the airplane; it includes many elements like business aircraft, military program, and recreational aircraft and it provides services to passenger or cargos. The outcome of growing and the working of airlines industry are always unexpected because it is full of challenge and variables conditions.

Air travel industry is a special industry to the global, because it is always grow along with the economics. Somebody describes the importance of airlines industry as “no airlines, no globalization, and no new era”, this has showed how much is the importance airline industry to us. Airlines industry is a complicated industry; we briefly say that airlines industry is under an oligopoly market structure. The explanation of oligopoly is an economic condition that only few service or product suppliers in the market and one of the supplier actions can perceive significant impact from its competitor in the same market. Thus, since a firm of carriers provides a new action and it will always taken by competitors, and soon affect the outcomes of whole market, therefore, firms in this industry are interdependent and airlines industry is a high competition market.

It is also one of the most fragile industry, many things can affect their performance from SARS, 911, economic crisis and even weather conditions.

The airlines industry has seen some positive effect currently which resulted in them forecasting a better forecast. Many factors could have affected the changes; we will discuss some of it below

Changes in economic conditions and effect to airlines industry.

As the world pick up from the economic crisis the traffic increases significantly. The demands for business travelers to individual travelers went up. During the economic crisis most carriers gone through restructuring and implement cost cutting measures so when the business pick up they will see that their profit margin is better than what they use to have before the crisis. Currently, the economy is expected to post up a profit of 2.5 billion for 2010 as it is recovering from the two years of ailing business. This is due to the increase of passengers, increase of cargo trade and effective cost measures taken my responsible parties to encounter the problem. Which means there is an increase in people’s standard of living as they can afford to travel; therefore there is a tremendous increase in the tourism industry which positively affects the air travel demand. Previously, industry prediction predicted that the economy would encounter a loss of 2.8 billion because assumption made that in 2009 and 2008 which was during the year of economic downturn, there was a loss of 9.9 billion and 16 billion respectively. However, the result was a positive one in 2010 for the airline industry. Passengers traffic has actually increased up to 7.1 % when it was predicted only an increase of 5.6% and that the demand grew twice as the supply. For example, a venture of C$1,805 million at Vancouver airport was approximate to have led to a 5.4% boost in connection with Canada as a whole. Therefore, airline deregulation can help sustain an increase in air transport connectivity as it is spread to industrialize world affecting domestic air travel. The increase in airline operation and services provides a growth of 5 % per year and also an increase of GDP twice as much. Moreover, it’s also expected to grow for the next ten to fifteen years. It also provides the flexibility for airlines to adjust capacity properly to meet changes in the market demand. By way of example, the expansion in air services between Poland and the UK since 2003 has increased connectivity as a percentage of GDP by 27% for Poland, whereas the increase in the UK was a much smaller 0.5%. This shows that there is a long term boost of 634 billion and 45 billion for both countries respectively.

Another positive factor which affected the changes in airline industry is the price of fuel. Although there is an increase in fuel price, several airlines such as the southern west airline company does not seem to allow this worldwide issue to affect its company profit and revenue. As the tourism industry is starting to boom and growing faster, travelers and passengers are using flight services very often and if they raise the price of the air ticket, passengers will have to look for another cheaper transportation mode. Therefore, the airline company choose to dissolve their problem by minify the loss through management reinforcement, cost lowering and efficiency improving, but not simply raise the price. Airlines also took the approach differently by looking at similar measures to solve the problem of the increase of price fuel. Today’s collection of aircraft is nearly three times more fuel-efficient than the olden day’s aircraft we were operating at the time of the first OPEC fuel crisis. In fact, our fuel conservation efforts have resulted in most fuel-efficient automobiles. Therefore, there were changes in cruise speed, use of flight simulators, complicated flight planning systems, increasing load factors and the introduction of newer, more aerodynamic aircraft designs combined with modern engine technology as alternative measurements. With the high technology the world has created, this problem could be solved in different ways and means. Another good example is China encounter the problem of increase of fuel price by reducing domestic fuel price as 80% of their flights are domestic flying. This results in a lower profit and also a lower operating cost and also helps boost the nation airlines.

Changes in Government Policies and effect to Airlines Industry

Worldwide deregulations and liberalization

In the past of the era, air travel industry is strictly controlled by government. No matters what the country is, government always involved in this industry, airlines almost operates and owns by government.Government used to decide how much is the airfares, control the route networks, and other requirements for each airlines company in the country. Now the time goes by, JAPAN, UK, US government start to deregulation their airlines to make the airlines market negotiate the price of ticket and operational requirements as a large free and manage these according to the demand of market. For example, united stated of American has hundred new airline firms enter the market due to result of deregulation. Hawaiian airlines, Delta Airlines, Alaska airlines and Frontier airlines are the airlines available in American State of America. The global deregulation policy to the airlines industry has because the barriers to this industry become lower and make more qualified air travel company to enter the market. The competition in this market has increased and pricing freedom. Therefore, the supply has increase, will cause the price decrease and demand will increase, because the firms in airlines industry provide better service and incentive to attract the consumer choose airlines service to increase their profit.

Despite the deregulation, global government has a trend to [open skies] agreement. These agreement is talking about between the country has a concord that air travel has the rights to fly over the country intermediate and beyond point. From the 1990’s, this agreement has become more common. At the April of 2007, United State of American has open skies agreement with European Union and this agreement have provided the right to transport passengers to a foreign country or international, under USA and EU open skies agreement, any airlines from EU and USA will be allow to fly from any city point within the European to any city in United State of American. This agreement has grounds the maximum flying flexibility to the airlines firm that has relevant and alliances because they can cut down their flying cost that include fuel fare, service cost and other opportunity cost.

Demand and Supply curveUntitled.png

Changes in technology and effects to airlines industry.

The changes in technology are provides a obvious effect in airlines industry, the common of internet use has help the airlines company to promote their service and make their air ticket selling become easier to air travelers. In the 80s till 90s, the revenue of Airlines Company was depending on travel agent. Consumers no need to go to airlines company agent to buy ticket, in the past, customers are expected to wait at least three days to get the proceed of air ticket. In this era, they can make the booking on airlines company internet, the only they need to do is print out a page and pass to counter at airport. The buying processes can be done in an hour. Airlines Company can save the operation cost in selling ticket. Despite the internet convenience, the technology in design and aero plane engineering has been improved, more safety in flying. To this result, air travelers do prefer to take a fly as because it is more safety than past. Due to the convenience and safety in flying, consumers has bigger willing to choose air travel as their transport.

Demand and Supply curve: show the improvement in technology has increase the demand for airlines service.

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Economic benefits that Manchester gained by hosting the Commonwealth Games 2002
Abstract

This paper discusses Manchester’s hosting of the 2002 Commonwealth games, and how it was used as a catalyst for urban regeneration. It discusses the theory and history behind hosting Mega events.

The rational behind cities bidding for mega events has shifted. They bid not only to raise the image of their city on the world stage, but to use the new facilities as a catalyst for urban regeneration.

The Manchester case study is drawn from the local council websites and reports published during and after the event. This gave an insight into the long term economic gains for the city.

The paper concludes that the hosting and the urban regeneration were successful for Manchester. This success has promoted other cities to bid for Mega events.

1.0 Contents

1.0 Contents

2.0 Introduction

3.0 Aims and Objectives

4.0 Methodology

5.0 Literature review

5.1 Mega Games

5.2 Resources Required

5.3 Planning for the Games

5.4 Marketing

5.5 Sponsorship

5.6 Tourism

5.7 Attendance of events

5.8 Economic Benefits

5.9 Urban Regeneration

5.10 History of Mega Events

6.0 Case Study Manchester

6.1 The Games

6.2 Three Years On

7.0 Analysis of Manchester

8.0 Conclusion and Discussion

2.0 Introduction

There are three advents that are described as mega events, the Football world cup, the Olympic and Commonwealth games. These events are held every four years, with cities around the world bidding to host them. For the purpose of this paper the discussion will be on the Olympic and Commonwealth games. The main Focus will be on Manchester hosting of the 2002 Commonwealth games.

Mega events as steeped in tradition, they are a platform for host cities to show what they can do. Cities plan for them years in advance, putting their bid forward so they can succeed on the world’s stage. When a city is successful in a bid, there are other cities that are disappointed. This paper discusses Manchester’s successful Commonwealth games bid after two failed Olympic bids.

When a city hosts a Mega event it is in the public eye, everybody remembers the spectacle of the opening and closing ceremonies. What is not so public is all the planning behind the scenes, committing resources to the success of the games. These resources are committed at an early stage; the bid has to be viable to be considered.

The rational for hosting games has shifted from the prestige associated with the attention of the world’s media, to a tool for regenerating run down areas of the host city. Therefore the planning of the venues has shifted from temporary buildings, to long term facilities for the local communities.

Some cities hosting mega events are looking at the long term usage for the new facilities after the event, in the past alot of these buildings were built as temporary structures and pulled down shortly after the closing ceremony. This is viewed by some commentators as a waste of resources, with prolonging the life of these buildings cities, can benefit long after the games are finished.

This shift has attracted new cities to bid for Mega events, with the justification that it will lead to economic growth both short and long term. The benefit can be two fold, raising the image of the city and regenerating a run down area. Although not all host cities have been successful at obtaining growth, some are still repaying the debt that was run up to host the games.

The resources that each city has ploughed into holding these prestige games are immense. To succeed they require the backing of local residents, council, sports providers, grants, the government and their agencies. This should be incorporate at the planning stage to increase the chance of a successful bid.

The value to local residents of a city hosting a mega event is immense in economic terms. It is not only the new facilities that can generate income, if the games are a success, the city can attract tourism long after the event.

The games cannot be viewed in isolation of the sporting stage, there is the build up to the bid, the planning of hosting the games and the long term value they van add to the city. All these factors make up a successful mega event bid.

Manchester spent a long time planning for the games. This is illustrated in the time line that appears in the appendices of this paper. This was not an easy ride, as financial problems affected the plans. Manchester overcame these and held the 2002 Commonwealth games.

3.0 Aims and objectives

The aim of this paper is to asses the economic impact of cities hosting a mega event; this will concentrate on the 2002 common wealth games held in Manchester.

The objectives are

An in depth analysis of the history of mega events, with the resources and planning to host such an event
An analysis of the economic benefits that can be gained and the disadvantages of hosting a major sporting event.
4.0 Methodology

This chapter discusses the research methods used for the project and the rationale for their choice. It discusses methods that were not used, with justification of why they were not included. Included is a critique of methods selected, and with hindsight identifies any changes that would have enhanced the research.

This paper critically evaluates the impact of the 2002 Commonwealth games on the city of Manchester. This paper will investigate the economic impact of a mega event and the subsequent urban regeneration. This will be compared to other host cities, both with the Commonwealth and Olympic games.

Selection of the topic was stimulated and formed out of heightened publicity on the topic. The aim of holding the games was not only publicity for the city but to use it as a tool of urban regeneration. The nature of the research was discussed with colleagues and fellow students this not only added practical ideas and suggestions, it opened new avenues of thought. This was the discussed with lecturers sounding out ideas, gauging opinions and clarifying the question. Focusing in on the question was obtained by employing relevance trees, narrowing the research area. This gave direction to the research, although with reviewing the literature this changed several times (Buzan, J. 1995).

Next, a research proposal was compiled, with the benefit of organising ideas and setting a time-scale for research. Theoretically, the proposal would highlight any difficulties with the research question and access to data. Creating a time-scale would focus on targets and meet deadlines in the completion of the paper.

The literature review, discussing theories and ideas that exist on the topic formed the foundation of the paper. The findings from the research are then tested on theories for validity (Saunders, M. et al 1997). The literature review was challenging, there is very little academic research on the topic area. Most of the literature focused on individual’s performances at the games, and the impact of hosting the Olympic Games. This information proved relevant in understanding the justification for bidding for mega events. Journals and newspaper articles were the back bone for the review, together with internet sites and reports.

Tertiary data sources, such as library catalogues and indexes were used to scan for secondary data. This produced journals and newspaper articles, and Internet addresses. With the amount of literature, it took time to sort out relevant material to the research. Narrowing down the search Bell’s (1993) six point’s parameters was applied. Applying key words that were identified in the first search produced relevant and up-to-date material (Bell, J.1993). A limitation on the literature search was the amount of time to read all articles and books on the subject. Whilst reviewing the literature references to other publications were followed and reviewed. Bells checklist on identifying the relevance of literature found was a practical method to reduce the amount of reading (Bell, J. 1993).

A case study on the impact on the city of Manchester of the 2002 Commonwealth games was chose to replace primary research. This would report the actual benefits gained by staging such a major event. There is a lot of information presented in articles on the benefits of hosting Mega games, but little on the problems. Therefore a lot of information was rejected due to the bias of the content. Articles and web cites were used to form a picture of the impact. This would then be compared with the literature and previous host cities

To produce primary data the success of a mega event proved to be a vast task, taking a lot of time to produce results. Internal and external operations of several organisations, providers, spectators and competitors would have to be compared to reach any level of validity. Instead it was decide to review a case study. This was then compared to the literature review.

5.0 Literature Review

This section will review all the relevant literature on mega events, including cities that have bid and hosted them together with the history of the games. The review will also discus the rationale behind bidding and the benefits it can bring to a City who hosts an mega event.

5.1 Mega Events

Mega events are regularly defined as special events, these have a unique status. Hamilton, (1997) characterise these events containing similar features, including “international dimensions, short-termed, and may be either a one-off occurrence or conducted on a regular cycle”. From the literature, size emerges as a dominant distinguishing feature separating mega from non-mega events. Both the Olympics and the commonwealth games fall into this category, they are international, short termed and held on a regular cycle. They are held every four years, at different locations (Hamilton, L 1997:124).

Sporting events are rapidly increasing in popularity as a means of attracting attention to particular geographic locations (Getz, 1998). Increasingly, cities are basing their marketing around Mega events (e.g. Manchester and the Commonwealth Games), in order to maximise the benefits to be achieved from event-driven tourism, sponsorship, and media exposure. Sporting events make up an important part of the overall Mega event industry. In reality there are a limited number of Mega sporting events that exist. This has led to fierce competition among cities to be successful in “winning the business” of playing event host (Getz, (1998) cited in Westerbeek, H et al 2002:303).

5.2 Resources Required

The size of an event can be discussed in four different ways. First is determined by the noticeable involvement of national and regional government authorities. Government agencies provide an event with the development of policies, infrastructure or making resources available supporting the attraction of events to major cities (Westerbeek, H et al 2002).

Higher technical competencies are required, such as advanced facilities, suitable event location and skilled personnel; these are directly related to size of the event. The demands placed on services provided by host cities to deliver an event is of superior quality when compared to other event types. The technical competencies must satisfy a number of requirements. This includes the technical standards set by international federations pertaining to competition, non-competition elements (accommodation and transport) and personnel issues competition management, and personnel issues (Westerbeek, H et al 2002).

The higher competencies are a requirement for the event management team, made up of both bid and operational teams, it is composed of expert people capable of carrying out professional relations with event owners and organisers prior to and throughout the event as well as having the technical expertise to stage the event (Westerbeek, H et al 2002).

The hosting City requires broad support from both direct and indirect stakeholders. Overall approval must come from the general public, government, (target) markets and other business sectors. The large amount of capital invested from the “public purse” in bidding for and staging an event, it is essential for strong community support for the process (Ernst & Young, (1992) cited in Westerbeek, H et al 2002:305).

5.3 Planning for the Games

International and worldwide events are more important now that ever before. In most countries major events are significant to all levels of society and institutions, whether at local or national level. Sporting events dominate large sections of the press, television and radio broadcasts. Therefore event management has become an industry in its own right, with both specialist organisations and individuals (Torkildson, G 2005).

The decision making process for the bid will develop a long term strategic plan (Johnson G, &, Scholes, K 2004). This strategy is the direction and capacity of an organisation, (i.e. the committee for the games) which achieves advantages through its configuration of resources within the changing environment. The strategy answers both the questions “where do you want to go?” and “how do you want to get there?” The first question is answered when the bid is accepted and the second is answered when the strategies are planned (Mullins L 2005).

Planning is the first stage of implementing the development of the city for the capacity to hold the games. Managers are required to step back to look at the environment, competitors, market place and review both the internal and external strengths and weaknesses. A SWOT analysis will focus the managers on both internal and external factors that can affect a new strategy. The host city must recognise its strengths and utilise them, and reduce weak areas through planning (Groucutt, J. et al 2004).

Managerial decisions are made to identify what is required to implement the new strategy. What are the new resources are required? I.e. property, finance or employees, and how will the city gain these resources? Then the risk should be assessed for its long term value to the host. Strategies should not only be considered on how they will affect existing resource capabilities, but also if needed new resources and how they will be controlled. The costs to the host should be weighed against the long term gains, and if needed it can be reviewed, accessed and amended accordingly (G, Johnson & K, Scholes, 2004).

Mega Events are a dynamic and multi dimensional phenomena, there are at the same time, urban events, tourist events, media events and international global events. They are the subject of collective corporate recourse, with action in each of the sections. Therefore a multi dimensional approach is required in the planning and managing of the games. This requires multi disciplinary team based approach (Torkildson, G 2005).

5.4 Marketing

Kotler et al (1993) identify several target markets to which place marketers direct their attention. These include visitors’ athletes, officials, spectators and the media, residents and workers, business and industry, and export markets. The focus of sporting events is on the visitor segment, including business and non-business visitors. Business visitors include persons who travel to a place for meetings, conventions, to inspect sites or to buy or sell a product. Non-business visitors include tourists who travel to see the place and travellers who are visiting family and friends. Individuals travelling to a particular destination to attend the event or teams and participants attending events as well as organizing committees and such can also be categorized as non-business visitors (Kotler, P et al 1993).

The increase in the competition and the globalisation has not only saturated the extent of competition in the markets but mainly saturated the target markets itself as argued by Brassington and Pettit (2003). This is mainly because of the fact that the high level of competition among the participating organisations in a given market segment has increased the product range leaving the customers with an endless variety of products to choose for satisfying their requirements. This level of saturation has also increased the need for further development in the market in order to achieve competitive advantage as well as sustainable growth in the business (Brassington, F and Pettit, S 2003).

Therefore mega events will if correctly marketed stand alone as a once only product. This product offers a unique entry into a market, there is little comparative competition, although all sport and leisure will compete for their market share. Although a Mega event is no normally at the same level as the existing competition. This approach is accomplished through the geographical spread either nationally or internationally by the host (Lynch, R 2003).

The domestic and/or international media, coupled with the selling of broadcasting rights, are important characteristics of mega events The support of the media prior to or during an event guarantees exposure and consequently raises world-wide awareness of the event and host city. The 2000 Olympics in Sydney generated in excess of $1.3 billion in revenue from broadcasting the Games, indicating the substantial financial returns for event owners, organisers and the host city brought about by media support for the event ( Westerbeek, H et al 2002).

5.5 Sponsorship

Corporate sponsorship of sports and other events is one of the fastest growing forms of marketing communications used to reach target audiences. The rate of growth in sponsorship expenditures is greater than for traditional media advertising and sales promotion. Corporate spending on sponsorship worldwide was estimated to grow 12 percent in 2001 (Roy, D and Cornwell, T 2003).

Sponsorship is viewed as a means of avoiding this clutter by enabling sponsors to identify and target well-defined audiences in terms of demographics and lifestyles. Linking a brand with an event via sponsorship enables firms to gain consumers’ attention and interest by associating with events that are important to them. Despite the increased use of sponsorship to reach market segments there has been little research on the impact of sponsorship on consumer behaviour (Roy, D and Cornwell, T 2003).

While sports sponsorship activities range from providing athletes with uniforms to funding entire stadiums, the basic principle behind such sponsor ships appears to be their proposed ability to increase brand equity by means of enhancing brand image. There are several key goals associated with corporate sponsorship of events such as (1) enhanced brand image via associations with positively perceived events; (2) increased goodwill via perceptions of corporate generosity; and (3) elevated brand awareness due to increased exposure (Miyazaki, A and Morgan, A 2001).

The high prices paid for Olympic sponsorships reveals that at least some organisations find these efforts to be worthwhile. This is illustrated by comments from top corporate officials that the Olympics are “the most important marketing opportunity of the decade” and management suggestions that this investment will heighten global recognition and increase revenue (Miyazaki, A and Morgan, A 2001:9).

5.6 Tourism

In the 1980s and 1990s, political, economic, and technological developments that led to the global economy became a feature of the environment within which cities compete for economic growth. This trade in goods and services has become increasingly open and internationally competitive; cities had to compete with cities from around the world for investment capital, businesses, and tourists. Cities such as New York, London, and Tokyo have become “global or world” cities in the urban hierarchy. These cities contain the largest variety of cultural and entertainment facilities of the highest quality, such as museums, galleries, opera houses, theatres, and concert halls (Burbank, J et al 2002)

Therefore other cities are a disadvantage when competing for tourism. The pursuit of hosting a mega-event is a mechanism for economic growth. This strategy relies on obtaining a single event large enough to be seen as a way to generate future economic growth. Many events can bring tourists and attention to a city, but the mega-event is sufficiently large that it creates a single focal point and time frame for completing event-related development. It is also noted that stadiums and sports teams are luxuries that financially strapped cities can ill afford; therefore holding a mega event can provide the city with these facilities for the future (Burbank, J et al 2002)

The number of tourists to an area where a mega event is due to take place increases. Individuals are drawn to destinations because of a mega (sporting) event rather than the region itself. For example, tourism estimates of visits to Sydney between 1997 and 2004, as a direct response to the Olympic Games, have been set at 1.7 million. Actual visits for the period during 2000 have been estimated to be 20 percent of this total (Forecast, 2001).

Arising from the growth of the tourism industry has been an emphasis on place (or city) marketing and promotion and the emergence of mega sporting events to support and enhance this promotion. Place marketing represents the techniques utilised by certain organisations to raise the awareness of their particular destination to specified target markets. Promotional objectives relate to capturing the attention of international visitors and to providing information in an endeavour to entice them to travel to a specific destination (Moutinho, L and Witt, S 1994).

5.7 Attendance of Events

A standard set of economic factors would be expected to affect demand for attendance. Price of admission and, more generally, the opportunity cost of attendance (including cost of travel, car parking, food and beverages at the venue, and programme), would be predicted to be negatively related to attendance. Income of the potential audience at a sporting contest, and size of population in the potential market for a contest, would be expected to be related positively to attendance. Availability and price of substitutes would also influence attendance. Some substitutes might be considered “direct”, such as the live broadcast of the event. Other substitutes will be “indirect”, for example, attending a different sporting event or contest; or other types of entertainment alternatives such as theatre or movies (Borland, J and Macdonald, R 2003)

Macroeconomic factors could have an impact on attendance such as the rate of unemployment. Although it has been suggested that attendance at sporting events may constitute a social outlet for unemployed persons, therefore the attendance is higher as the rate of unemployment increases (Borland, J and Macdonald, R 2003)

The infrastructure of the venue has a direct impact on attendance to the events. The quality of viewing, the facilities at the stadium, the quality of seating; the impact of adverse weather conditions; distance from contest and extent of vision to different parts of the sporting field. Catering and bathroom facilities can also have an impact (Borland, J and Macdonald, R 2003)

5.8 Economic Benefits

The national government’s involvement in bringing events to a city is on the increase. The level of spending dedicated to biding for an event demonstrates the strength of governments backing. This is to the detriment of the competition with other (cultural) activities undertaken by government and other interest groups. Openly supporting a bid increases the pressure of accountability to the public and hence support will only be given, if it is clear that justifiable and measurable benefits for all stakeholders are generated by hosting the event (Westerbeek, H et al 2002).

The economic activity associated with staging mega sporting event can create significant economic benefits for the host destination. Howard and Crompton (1995) defined the economic impact as “the net economic change in a host economy that results from spending attributed to a sports event or facility”. Economic impact studies enable the quantification of the benefits to a community to be ascertained in order to justify the investment in the event (Howard, D and Crompton, J 1995:55).

The Olympic Games provide an obvious example of significant economic contribution by a mega sporting event. The 1984 Los Angeles Olympics made a profit of US$125 million with the Seoul Olympics exceeding that profit by a further US$50 million. Outcomes of this magnitude serve to encourage cities to bid for high status events (Law, C 1993).

In September 1990, Atlanta won the bid to host the 1996 Summer Olympic Games. In spite of the approximately $2.5 billion price tag, the benefits derived from hosting the Olympic Games were expected to outweigh the costs. Positive media attention, construction of facilities and infrastructure, and employment increases were identified as the primary beneficial output of this massive endeavour. The cash inflow during mega games is relatively easy to identify, the “legacy” of the games in terms of long-term benefits is more difficult to measure. The positive employment impact of the 1996 Summer Olympic Games, led to a 17% increase in long term employment in the surrounding area (Hotchkiss, J et al 2003).

It must be noted at this point that not all events are successful financially. While focusing on the economic benefits presented by mega sporting events, there are significant financial burdens that such events place on host communities. This financial commitment to events often requires a degree of community assistance through public funding. The external benefits associated with mega sporting events enable this financial assistance to be classified as an investment, with clear reciprocal benefits to the host community (Westerbeek, H et al 2002).

Once the mega-event policy is underway, extra-local interests become increasingly vital to a successful outcome. Hosting modern games requires the authority and cooperation of not only the host city, but other state and local governments and agencies as well. Moreover, the financial demands of the games require support from local public and private sources, but are increasingly dependent on multinational corporations and the government (Burbank, J et al 2002).

Several global cities have had their fingers burned by over ambitious sports development plans. Sydney found itself in trouble finding a permanent use for Stadium Australia. The Manchester bid, while ambitious, was also realistic. It already had the G-Mex Centre and MEN arena, Old Trafford and Maine Road football grounds. It has added to this the velodrome, an aquatics centre, Sport-city, and the City of Manchester stadium. These facilities are part of the long term regeneration, the aquatic centre has been appropriately sited for the city’s three universities; Sport-city is to become one of 10 regional centres of excellence in sport; and the stadium will be used jointly by Manchester City football club and community teams (Anonymous 2002).

By geographical area, India is the world 7th largest country, the 2nd most populous country with total population of 1,198,003,000 and most populous democratic in the world. India is bordered by Islamic Republic of Pakistan, Republic of China, Nepal, Bhutan, Bangladesh, and Myanmar.

India is the country of Indus Valley Civilization and its region of historic trade routes and vast empires, the Indian subcontinent was identified with its commercial and cultural wealth for much of its long history. India is a country, which consisting of 28 states and seven union territories with a parliamentary system of democracy. India is the world 12th largest economy and it is 4th largest economy in purchasing power. Indian economy is growing very fast in Asia, But still it suffer in high level of poverty, illiteracy, disease, and malnutrition. The world four major religions are Hinduism, Buddhism, Jainism and Sikhism originate in India. While the other religions, Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium CE and marked the region’s diverse culture. India became an independent nation in 1947 after a struggle for independence against British rule Government.

Source Wikipedia

With an average annual GDP growth rate of 5.8% form the last two decades, the Indian economy is considers the fastest growing economy in the world. India has the world’s 2nd largest labor force, with 516.3 million people. In terms of output, the Indian agricultural sector accounts for 28%, the service Sector 54% and industrial sectors make up18% of its total GDP. India is famous in Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry; fish the major industries of India, include textiles, chemicals, food processing, steel, transport equipment, cement, mining, petroleum, machinery, software. India’s trade has reached a relatively moderate share 24% of GDP in 2006, which is

up from 6% in 1985. The share of India in world trade has reached 1%. Major exports include petroleum products, textile goods, gems and jewelry, software, engineering goods, chemicals, leather manufactures. Major imports include crude oil, machinery, gems, fertilizer, and chemicals. Because of

Diverse culture Indian hospitality and tourism is growing very fast.

The significance of this sector can be well understood not only by its international dynamic identity but also by the contribution it makes to the economy. In Strategic planning of India, it seem that government of India is trying to reduce its dependence on the other sectors and the government trying to more commercialise its hospitality and tourism sector. India is determined to capitalize on its assets like climate, culture, location; deserts, beaches, resorts and it have marvellous architecture by selling the property to foreigners. All these measures are to fascinate the foreign investors which will bring foreign exchange which will not only help sustain the current economic growth but will also allow the expansion of the booming economy by taking it to higher levels.

As Indian economy is growing in the world, India is getting famous for the holidays destination. According to the ministry of India, there is about 1980, registered, star hotel with the total rooms of 1, 10,000. Many of the Indian peoples are indirectly related to the hospitality sector, For example, In summer season when the people go for the visit of Himalayas mountains, so if they need accommodation most of the people of that local area will offer them to stay in their house which was one way to earn the money of that people.

The hospitality and welcoming, which Indian gives to their guests, is one of the features of the Indian culture. Its something compliment which Indian peoples get from their guests/tourists.

In India, there are a lot of attractive places that attract the tourists towards themselves. Some of them are given below,

Taj Mehal (hot destination of India)

Humayun’s Tomb

Chokhi Dhani

Jaisalmer, the city of the golden fort

Varkala Beach

Shekhawati

Mussoorie Municipal garden

Nainital Naina Devi temple

Shimla beautiful hill station

Manali beautiful hill resort

WHERE HOSPITALITY AND TOURISM STAND IN INDIA?
India still has the potential for hospitality development: HICSA 2009

Now a days India is counted as the hottest destination for the travel and tourism. Because tourists are getting more facilities in cheap cost which is making more attractive for foreigner in this recession? India is the Home to the Indus Valley Civilization and a region of historic trade routes and vast empires. After the 1991, as the growth of India is increasing people are traveling there which is increasing the hospitality sector of India. From the last ten years the government of India is fully focus on the hospitality sector because its have lot of potential in it.

Between 1997-98 and now, the number of hotel rooms in the country has gone up from 58,000 to over 78,000 in the approved category and one and half times that number in the unapproved category. Many of the international companies are investing money in the hospitality sector of the India. In 2008, the world biggest hotel company NOVATEL announced about 12 hotel project in India which show that how the growth of Indian hospitality is growing. Inn India there is many companies, which are running luxury 5 star hotels some of the names are given below,

Hotel India group

Taj hotels group

ITC group

Welcome Group etc

Source Wikipedia

Globalisation opens a new ways for the hospitality and tourism. Because of globalisation, many of the international companies are investing money in India, In September 2008, a UK based Intercontinental hotel group (IHG) announced to open 20 hotels in India major cities. The newly planned project is supposed to get executed within the next two to three years. The developers assigned for the construction of these hotels include MGM-Emaar, Eros and Today. According to the chief operator Mr Jan Smith that India has the potential to generate tremendous growth opportunities in luxury hotels

segment. The Group has planned to set up the modernist project under brand names of Intercontinental Hotels and Resorts, Crowne Plaza Hotels and Resorts and Holiday Inns and Resorts.

Particulars
Tourist arrival (Millions No.)
Forex Earning
($ Millions)

August 2006

0.35

456.76

August 2007

0.38

459.33

Growth (Percentage)
8.33
44.35

April-August 2006

1.48

2242.26

April-August 2007

1.64

2891.75

Growth (Percentage)
10.81
28.97
Source: CRISIL RESEARCH

As hospitality is increasing government investing more budget in it which is giving life to the hospitality sector of India.

Year
Budget Estimate
(Rs Millions)
Actual Expenditure
(Rs Millions)
2003-04
3,250
3,500
2004-05
5,000
5,000
2005-06
7,860
7,860
2006-07
8,300
8,300
2007-08
9,000
9,300
Source: CRISIL RESEARCH

The hospitality and tourism sector generate Rs.604.32 billions in 2006-07.which show how this sector is becoming more significant in India. A below chart is showing how the demand of room supply in India is increase.

Names of city
Existing Supply
Proposed supply
Increase over 5 years
Development of supply
Luxury
1st Class
Mid Market
Budget
Agra

1336

384

28.70%

69%

–
–

37.50%

62.50%

Ahmadabad

519

462

89.00%

48%

–

32.50%

15.60%

51.90%

Bangalore

1906

7794

408.90%

55%

32.10%

16.70%

37.00%

14.20%

Chennai

2075

4407

212.40%

36%

28.00%

38.00%

23.10%

10.90%

Delhi

7030

10856

154.00%

74%

24.80%

27.00%

38.20%

10.00%

Goa

2252

2632

116.90%

18%

12.40%

43.60%

25.60%

18.40%

Hyderabad

1442

7408

513.70%

57%

25.40%

34.40%

21.30%

18.80%

Jaipure

1293

2770

213.40%

42%

11.70%

36.30%

26.00%

26.60%

Kolkata

1354

2465

182.00%

61%

11.20%

29.40%

49.70%

9.70%

Mumbai

7402

9318

125.90%

36%

30.80%

28.90%

26.70%

13.60%

Other Cities

8056

6870

85.30%

47%

3.90%

18.60%

24.00%

53.50%

Source: HVS International

In the promotion of travel and tourism Ministry for tourism in India is trying to provide security and fully information about Indian registered hotel and agents that is very useful for the international tourists.

From the last ten years as the trend is changing India because education level is increasing and the life style of the people is changing, which is helping in the growth of catering sector India. After the 2000 the consumption of fast food is increasing in India. This is increasing the attraction of fast food companies in India. In 2008 McDonald announce to open 20 more McDonald in India, which is showing how the hospitality sector is growing very fast.

ORGANISATIONAL STRUCTURE OF THE INDUSTRY

The Hospitality Industry in one of the largest industry in the international business environment. The international hospitality industry is characterized by an industry structure composed of a relatively small number of large multinational enterprises (MNE) and a large number of locally operated small-and medium -sized enterprises (SME). Geographically the industry is very widespread and dispersed, from metropolitan cities to remote rural areas.

THE ROLE OF HOSPITALITY INDUSTRY IN ASIA

Asia is the largest continent of the whole world. It covers about 30% of the total world’s landmass, and 44 countries in the continent of Asia. Japan, Thailand, China, Korea, India and Pakistan are the top countries; here we will discuss the role of hospitality and tourism industry on that countries and economic influences on that country.

The hospitality tourism industry is now changing fast in Asia, before that Asia is the backpackers place but a new destination has been explored and the local tourism industry needs to move fast now a day for the reasons to invite the tourists in the whole world and to develop the economy’s of Asia, but the last few years the trend has been changed, now that international tourist generally look for something different while they want to travel and choosing their destinations. Now Asia looking more and more likes the West every year, with the same skyscrapers, modernity and comforts. Now a day the crisis recedes, but the hospitality and tourism market increasing day by day and the Asian tourists realize that the Asian destinations is cheaper and easier to get to than traditional Europe Americas destinations.

THE HOSPITALITY AND TOURISM INDUSTRY IN INDIA

Hospitality and Tourism industry’s of India has reached new heights today. Travels agents are looking India as a more profitable market and interests in the country and investment their to upgrading of the hospitality sector. The economy of India has reached a height of 5.7 billion us dollars because the visiting of foreigners 3.92 million. India is expensive huge amount of money on football because it is a favourite vacation destination of foreigners.

It is boom time for India’s Tourism and Hospitality sector. A 5000 year history, culture, religion and alternative medicine fascinate both budget and luxury travels alike. In 2005 a record 3.92 million foreign visitors arrived in India resulting in international tourism receipts of USD 5.7 billion.

In India we can see the different types of tourism which promote the hospitality in the country in which history tourism, adventure tourism, medical tourism, spiritual tourism and beach tourism.

The Tourism department resolves in promoting India hospitality and tourism industry has a strengthened as it recognizes its potential, it’s a third largest foreign exchange earner, accounting for 2.5 percent of GDP. The hospitality and tourism industry makes a direct contribution to the country economy in agriculture, horticulture, handicrafts and construction. In 2003/2004 the outlay on tourism development RS. 35000 reached RS 7860 million in 2005/2006.

The Indian tourism has not performed like the international global tourism in terms of growth but performed quite well for last couple of years, therefore the World Travel and Tourism Council is looking the India Tourism industry one of the fastest growing tourism industry for the next 10 to 15 years along with China. The Travel & Tourism Industry contributes 2.1 percent to India’s GDP and the employed estimated 24349000 people in 2006.

India Hospitality Corporation’s mission to make the best policy and focus it successfully to operate Indian business and assets in the hospitality and tourism industry in hospitality, leisure, tourism and travel. IHC raised about 103 million dollar in an IPO in August 2006.

In December 2007 Hayground Cove and Navis Capital jointly invested US $28 million of additional capital in IHC and further more bring their total invested capital to US $56 million.

Hospitality and Tourism is widely spread in India and it is one of the fastest growing sectors. The grow rate of that industry expected 8% between 2007 and 2016. Many international hotels already working there in which Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott and also established and are still expanding on hospitality and tourism industry. Indian is an ideal destination for tourists, approximately 4.4 million tourists visit India every year.

WHICH FACTORS ARE HELPING IN THE GROWTH OF HOSPITALITY AND TOURISM
DESTINATION OF INDIA

In India there are a lot of destination which are attracting the tourist towards it self, which are giving below,

TAJ MEHAL

Taj Mehal is one of the hottest favourite destinations in the India, Which is the one of the wonders of the ancient world. Taj Mehal is a mausoleum located in Agra, India, built by Mughal Emperor Shah Jahan in memory of his favorite wife, Mumtaz Mahal. Taj Mehal building began around 1632 and was completed around 1653, and employed thousands of artisans and craftsmen. Taj mehal is used as the icon of India tourism. Every year thousand of international tourist travel to India to visit Taj mehal.

Taj mehal In India
DELHI

Delhi is one of the most attractive in India because Delhi city is full with many historic places, which is great attraction for the local and international tourist. Humayun’s Tomb (1586), the Qutab Minar, Red Fort is more famous places which are playing more significant role to attract the tourist towards it self. Government invest millions of dollars in the attraction and for the infrastructure of Delhi city.

Delhi Red fort
JAIPUR

Jaipur is one of the India historic places and it could be compared to a vast open-air museum. The speciality of this city is that Camel buggies and elephants are commonly found as motorcars and buses in Jaipure. Jaipur, popularly known as Pink city, which was built in 1727 AD in accordance with Shilp Shastra – an ancient Hindu treatise on architecture. Jaipur is a shopper’s Paradise. In Jaipur CHOKHI DHANI is the outskirts of the city where an ethnic village atmosphere is memorise every evening with thousands of oil lamps, folk dancers, acrobats, snake charmers, puppeteers, which are playing more attraction in the visit of this city.

Hawa Mehal in Jaipur
VARKALA BEACH

Varkala beach is located 54 Km north of Thiruvananthapuram, the capital of Kerala. Varkala beach is counted as very important Hindu centre of pilgrimage. In Varkala beach there’s a high rocky cliff, which ends immediately and extend of clear sand extends down to the sea, which makes Varkala beach an outstanding sight for the tourists. Varkala beach is famous as Papanashini. Hindu believers dip in the holy water of Varkala beach and purify their body and soul, washing out all their sins.

Every year tourists from the all over India and abroad visit this place as it is counts holy place in India.

VARKALA BEACH
TRIVANDRUM

Trivandrum is the capital of Indian state of Kerala and is also known as Thiruvanathapuram and City of Holy Serpent. It is a first step to one of the most stimulating backwater travel destination in south India. The clean and green known as the city of the thousand-headed Anatha, the holy serpent, which lord Vishnu reclines.

The area can be divided into two parts one is geographical regions and the second is midlands and the lowlands. The midland area comprises small hills and valleys nearby the Ghats. The lowland is a slight stretch comprising shorelines, rivers and deltas, spotted with coconut palms. The biggest fresh water lake in the city is a Vellayani lake, but the main rivers that flow through the city are the Karamana resorts.

Trivandrum city has also the great contributed in the economy of Thiruvananthapuram because of tourism. The foreign tourists generally use it as a heart to explore the well promoted tourism industry of Kerala. In ranking Trivandrum is first in the number of foreign tourists visiting in Kerala and it is also a main destination for chartered flights.

The area can be divided into two parts one is geographical regions and the second is midlands and the lowlands. The midland area comprises small hills and valleys bordering the Ghats. The lowland is a narrow stretch comprising shorelines, rivers and deltas, spotted with coconut palms. The biggest fresh water lake in the city is a Vellayani lake, but the main rivers that flow through the city are the Karamana resorts.

Trivandrum city has also the great contributed in the economy of Thiruvananthapuram because of tourism. The foreign tourists generally use it as a hub to explore the highly promoted tourism industry of Kerala. In ranking Trivandrum is first in the number of foreign tourists visiting in Kerala and it is also a main destination for chartered flights.

MANALI

Manali, Himachal Pradesh is the Kullu district near the northern end of the Kullu Valley. It is an important hill station in the mountains of Himachal Pradesh. The small town was the beginning of an ancient trade route and area is known as the great significance to Indian culture and heritage and also the said of Seven Sages.

Manali is one of the popular destinations of Himalayan tourist and accounts for nearly a quarter of all tourist arrivals. The weather condition of Manali is cold and therefore the atmosphere provides a great contrast to hot Indian summers.

Manali is mostly famous in adventure sports in which skiing, hiking, mountaineering, paragliding, mountain biking and ete. Hot springs, Tibetan Buddhist and religious shrines offered it. Manali also featured in Time magazine’s “Best of Asia” for its “Extreme Yak Sports”.

Manali has become the one of the favourite destination of India in honeymooners last year. Calculation show that worth 550 couples reaches Manali for honeymoon in season (May, June, December, January) every day and 350 couples daily in rest time.

Nagger Fort, Pala Empire, Hidimba Devi Temple, Rohtang Pass, Solang valley and Manikaran if more of the interesting places of Manali.

Hampi

Hampi was the last capital of Vijayanagar, one of the most Hindu Kingdoms in the India’s history. It is a laid back village and really attractive ruins, mysteriously intermingled with large boulders that rear up all over the place. Hampi is located in the central of Karnataka, about 350 km from Bangalore. Hampi festival held in the first week of November in every year, and also holds a Pruandaradasa Aradhana (the name of poet who lived in Hampi)

Classic music festival in January and February every year to celebrate the birthday of poet. In largest religious festival holds in March and April.

Khajuraho Temples

Khajuraho is the place of proof to originate the Kama Sutra in India. Erotica abounds here with over 20 temples devoted to sexuality and sex. Khajuraho is the best known for their erotic sculptures, but to show a celebration of love, life and worship. They also provide and uninhibited peek into ancient Hindu faith and Tantric. Only ones in 10th and 11th century, 85 temples constructed during this time.

It is most easily for the tourists to reach their by train, and the new Khajuraho-jhanse Link express train service. Classic dance festival is held at the Chitragupta Temple complex in Khajuraho in February and early March. Actually it is a classical dance festival, including Kathak, Bharat Natyam, Odissi, Kuchipudi, Manipuri and Kathakali. The dance groups from all over India came there to performance various classic styles of Indian dance. A large arts and crafts fair is also held during the festival.

Ajanta and Ellora Caves

Amazingly fixed into hillside astound in the middle of nowhere are the Ajanta and Ellora caves. In Ellora there are 34 caves dating from between the 6th and 11th centuries AD, and in Ajanta 29 caves dating back to between the 2nd century BC and 6th century AD, and rich in paintings and sculpture. The Ellora caves created by hand, with only a hammer and chisel.

The four day festival in the last week of November every year, held at Soneri Mahal (Golden Palace), historic 17th century architectural marvel in Aurangabad near Ellora. The features of that festival are some of the most distinguished singers and dancers of India.

Fatehpur Sikri

Fatehpur Sikri was once the superior capital of the Mughal Empire in the 16th century now stands deserted as a well preserved ghost town. After only the 15 years it was abandoned by its occupants due to insufficient water supply. When somebody will go there, they can almost feel their self being transported back to medieval times here.

Fatehpur Sikri is full of regal palaces and courtyards, including four main buildings in which Buland Darwaza, Fatehpur Sikri Fort, Tomb of Salim Chishti, and the Panch Mahal. The best visited time during the cooler dry weather from November to March.

Golden Temple

Guru Ram Das, the fourth guru of Sikhs founded Amritsar in 1577. It is the religious capital of the Sikhs and gained its name, meaning “Holy Pool of Nectar” from the body of water around the Golden Temple.

Golden Temple is the Sikh shrine attracts pilgrims from all over the world. Sikh came there to pay there respects and do voluntary service. On the festival of Golden Temple major celebrations are organized including bhangra dancing, folk music and fairs. Guru Nanak Jayanti is the other festivals of Amritsar held in November.

Hospitality and Tourism Industry in Rajasthan

Rajasthan is the most popular and charming place of India in all over the world. It is one of the best places in the world where the tourists of all over the world visited there. Every year the tourists came there from all over the world to enjoy holiday in splendour. It is one of the ideal places for the couple to enjoy their honeymoon. The reason of attraction is that the place is gifted with rich culture, timeless monuments, colourful, festival, wildlife parks etc, when all these attractions combines together to give a glorious look to this desert state.

The block prints, tie and dye prints, bagaru prints, sanganer prints in the traditional of the Rajasthan’s colourful art. The major export products of Rajasthan are Zari embroidery. There are so many attractive items like handicraft items in wooden furniture, carports and blue pottery. The lot of mirror work on the Rajasthani clothes. Rajasthan is a shoppers’ paradise with a lot of beautiful goods but in cheap prices. The female dress comprises an ankle length skirt and a short top, is also known as a chaniya choli.

Rajasthan is also known for the magnificent forts, intricately carved temples and painted havelis which were built by kings in past. The true architectural heritage of India is Jantar Manter, Dilwara Temples, Chittorgarh Fort, Lake Palace Hotel, and Jaisalmer Havelis. Rajasthani furniture has intricate carvings and light colours and the demand of handicrafts because the intricate work on them.

Deepawali, Holi, Gangaur, Teej, Gogaji, Makar Sankrante and Janmashtame are the main religious festivals of India. Rahasthan’s desert festival is celebrated with great zest and zeal and held in winter once a yeat. The people of the desert dance and sing haunting ballads of valor, romance and tragedy. In festival there are fairs with snake charmers, and folk performers. Camels, no doubt play a stellar role in this festival.

MEDICAL TOURISM IN INDIA

Medical tourism of India is very famous in all over the World because of heart surgery, knee transplant, cosmetic surgery and dental care. Although India is a developing country but if we compare the medical facilities with the developed country in which USA, UK, and Europe, Indian medical is cheap because of its best hospitals, treatment centres with the best facilities and infrastructure and technology. There for the government looking to encourage a budding trade in medical tourism, and make the policies in medical tourism, selling foreigners the idea of travelling in a low-cost but with the best world-class medical tourism.

ADVENTURE TOURISM IN INDIA

India has some most unexpected and geographically diverse terrains in which forests, mountains, beaches, deserts and more in the world. In the last few years India has become famous in hot spots for adventure tours or activity, there are based to offer the holidays in both Indian traveller and international travellers with world-class facilities for the action and thrills that a tourist or traveller wants.

The Adventure Sports and Adventure Spot of India are given below which have a great attraction for the tourists in all over the world and promote the hospitality and tourism in India.

Adventure Sports

Trekking

Mountaineering

Backwaters

River Rafting

Safaris

Polo

Water Sports

Aero Sports

Adventure Hotspots

Goa

Kerala

Uttaranchal

Rajasthan

Tamil Nadu

Jammu And Kashmir

Assam

Sikkim

Hotels in India

Hotels are also an important tool for hospitality and tourism industry, if a country has the good tourism policy but not to mention their hospitality and accommodation policy in their planning then it will create the bad image of that country, therefore it is very important for a country to provide the best hospitality facilities for the international people.

In recent years the hotels industry of India is growing fact. Hotels in India classified into seven categories in which (five star deluxe, five star, four stat, three star, two star, one star and heritage hotels)

International Tourist Traffic

Increased the CAGR of 5.5percent in India the foreign tourist came 2.29 in 1996 and 3.92 million in 2005. According to data receive from the major airports in India the number of foreign tourist was 5.37 million in 2008, higher 5.7% as compared to 5.08 million the last year.

The main fact of this development is

The strong GDP growth

The contribution of private sector

The interest of foreign investment

Good relationship with the other developed world

Development of infrastructure

Attractive advertisement from media

Outsourcing emergency hub

Related with other tourism promotion measures

India ‘s growing recognition as an exciting place to visit

The top main features of the Indian hotel industry is

ITC Hotels

The Taj Hotels Resorts & Places

Oberoi Hotels

Asian Hotels Ltd.

Hotel Corporation of India

ITDC Hotels

The hotel industry cane be classified into four sector
5 Stars and 5 Stars Deluxe

These hotels are considering the business travellers and foreign tourists, and mainly situated in the business districts in big cities and account for about 30% of the industry.

Heritage Hotels

These types of hotels are less capital expenditure and affordability and include running hotels in palaces, castles, forts, hunting lodges, etc.

Budget Hotels

Budget Hotels have the limited luxury service, and characterized by special seasonal offers and good services. The main purpose of that hotel to provide the low accommodations price for the domestic travels.

Unclassified

Low-priced hotels spread throughout the country; main function is to provide low pricing policy. The contribution of that hotel in the economic of industry is about 13%.

Name of international Hotels working in India

Sheraton Hotel

Hyatt Hotel

Radisson Hotel

Meridien Hotel

Marriott Hotel

Holiday Inn

Hilton Metropolis

International Tourist Traffic
Tour Operator’s Role in Hospitality & Tourism Industry

Tour operator play an important role in hospitality and tourism industry, a tour operator makes the travel and tour components to create a holiday. The main purpose of the tour operator’s product would be to arrange the flight, plus pick and drop service from airport to hotel and a service of a local representative.

Tour operator’s of India have a great contribute to present the culture in the world and introduce the hospitality and tourism industry in a very attractive way. The name of some tours operator is given below who have made some tour packages for the tourist.

Special Interest Tours

Gujarat Tours

South India Tour

Kerala Tours

North India Tour

East India Tour

Pilgrimage Tours

Wildlife Tours of India

Terrorism Effect on Hospitality and Tourism Industry

Today terrorism is one of the biggest issues in all over the world. Every country faces this major problem beca

Nepal is a tourism destination country. Due to its impeccable natural resources and cultural sites, the people from different countries are attracted towards Nepal. Likely, the impacts are created in terms of economy and socio-cultural aspects in reference to tourists inflow. In economy context, flow of job opportunities, foreign currencies, etc are generated that has increased the living standard of people and profitable growth for the country. Moreover, understanding each other’s culture and behaviours has resulted both positive and negative effects. If maintained in terms of sustainability development, these impacts will be beneficial in the long run.

Aims and Objectives of the research

To know the economic and socio-cultural status of tourism in Nepal.

To examine the importance, benefits and impacts of changes in tourism developments.

To find out the possible measures, outcomes and challenges faced in the economy of Nepal.

2.1 Background and issues underlying the research

The perceptual of Nepal’s economy rely on the tourism benefits. Even though, the tourism scenario has created a lucrative effort to improve the daily lives of people in a standard way, it has changed the attitude and behaviours into a westernized one gradually diminishing the old cultural values and traditions. This has enlarged a huge issue for the conservations of cultural society that attracts the foreigners. Mostly the young people of society are largely influenced from western culture with a feeling of superiority among others that has embarked a crucial issue of less culture-follower in future. Moreover, the natural resources are diminished for the provision of services to the travellers. So, the effective tourism plans are necessary to be carried on a way that it protects both the culture and environment in a sustainable run.

2.2 Justification for the research

Tourism is a great phenomenon in the economy development of Nepal. Without tourism, the economic developments are impossible in Nepal. Besides the positive results for improving the life standards of people and country, more it has created side effects in related to destruction of culture and environment which might be an obstacle in the future economy. Moreover, the misconceptions of imitating foreign life styles for showing superiority among others have downward the real cultural values. The equality between the good economy and respecting culture is important for beneficial tourism progressions.

2.4 Literature Review

According to Agrawal and Upadhyay (2006), has mentioned about the positive effects of tourism in national economy. The sectoral development of infrastructures in terms of primary, secondary and tertiary, increase in GDP and the pattern of spending money by tourists in mostly adventurous, hotels and cultural sectors has helped to collect the foreign lrevenues utilized for overall developmental projects. Whereas, Gautam (2009) has also stated the more earnings of foreign exchange, job opportunities increase revenues in the national economy which is very worth for the overall development of country.

Pandey et al (1995) have depicted more about the local culture and customs. The exchange of gifts from foreigners like cameras, chocolates, clothes etc might change the traditional life style of people. More tourist arrivals means increase in drug addictions, prostitution and significantly diverted towards modernized society. ( pg no. 21-25)

In contrast, Egbali et al (2010) have mentioned about the positive and negative sides of the tourism. Due to the income generated from the foreign currencies, the country will get an advantage to conserve its natural resources and preservation of cultural heritages. Also, the disadvantage of destruction and pollution of natural environment like building the airports, hotels, etc, seasonal work patterns, changes in life style of people to adapt foreign’s culture, the more garbages created by tourists that can lead to more chances of epidemic diseases as well as deterioration of culture.(pg no. 67)

Sofiled(2000) has also claimed that whether the tourism based on developmental or anti-developmental and either effects on lucrative or contradiction. Also, the socio-cultural change is difficult to measure approximately such as loss of culture, corruption and ethnicity may occur intellectual measurement.

Another Khanal (2011) has argued that even though it effects on lifestyle of people and behaviour, there are more positive effects for it for the future developments in particular regions of Nepal. For example, Bandipur, renowned for its cultural and natural sites. The infrastructures of roads, electricity and restoration of temples are possible due to the incomes from tourism. Although the modernization concept overlooks it but the programmes related to importance of cultural values will influence the people to protect it. (Pg. no. 28-31)

Raghu (2009) has pointed out that tourism also caused direct and indirect costs to the economy. Increased demand for imported goods and products raises the higher price in the shops and it becomes impossible to buy for the consumers. Overdependence on the tourism might create risks in the economic instability and the country has to suffer mainly the local people. More focus on urban areas lead to differentiations in wealth terms and the increase in migration from rural areas. The worst habit like casino will be practised in Nepal even though the people are not allowed to enter but this culture will ruin the economic status of people of Nepal. Likewise, growth in use of alcohol products will be raised. Overuse of historical places like car parkings, road construction, etc will damage that areas but if used in right way then the tourism fund will help to restore these sites and also the development of museums and preference to religious festivals gives positive impacts Hunter and Green (1995) (pg no. 26-27)

Pandit (2012) has also explored that the tourism industry is versatile with its direct sectors including hospitality and food industries, local handicrafts and indirect sectors are uncountable on society. It brings more recreational activities such as parks, entertainment, etc which provides jobs for the people. On the other hand, the economic impacts related to direct (restaurant invoice), indirect (expenditures) and induced (employees’ salaries to spend in their daily lives) impacts. The negative impacts will be inequality among jobs. The people related to tourism sector earn more than others. For example more women are inclined towards sex tourism by Bhatt (2003). On the contrary, the parking fees, hotel and government taxes paid by the visitors will be collected in terms of revenue and contribute to the development of that area and local economy with deduction of imports such as food, secondary supplies, etc according to Godfrey and Clarke (2000). Moreover, they have reflected that tourists are kind of marketing way if they get warmth and hospitality as expected of they will tell to their friends to visit in the country, is a positive challenge.

Also when the two cultures meet together, mostly the host community realizes the importance of their culture because of the appreciation by other ones. The positive attitude develops between them which help to realize them of their importance of their cultural values and start to conserve it. More number of tourist’s arrivals helps to preserve the ancient tradition as they learn and like it and gives more preferences as by Mrababayev & Shagazator (2011).

According to Bushby et al. (2001) have revealed the economic costs related to inflation, opportunity costs, dependency and seasonality where jobs available only part of the year creates negative impacts. They have also predicted the factors of extrinsic and intrinsic influencing socio-cultural impacts. Extrinsic includes type and number of tourists, demonstration effect and intrinsic relates to the demographic structure of employments in the tourism areas. The frameworks for measuring are displacement( eradicating the people who are not following the culture from that area) and involving the community in tourism planning.

As by Page, S.J.(2009) has explored that the analysis of host-guest impacts can be focused on the differences of the nature between the hosts and tourists in terms of social, economic and culture, the ratios, the visibility, speed and intensity of tourism development, etc. and the environmental effects such as architectural pollution, coastal pollution and destruction of eco-systems.

Mathieson and Wall (2006) have mentioned about demonstration effects in terms of socio-cultural impacts. The local people will imitate in terms of foreign language, dressing style and changes in the art forms for the imports.

Theobald (2005) has stated that the less chances for local population to use the luxurious and natural facilities used by tourism as per overcrowding of tourists. Also, the local culture and customs are exploited to satisfy the needs of the tourists. In contrary, ‘demonstration effect’ is replaced as ‘Confrontation effect’ which affects the moral standards of the people. The other effect is ‘culture brokers’ who speak the mixed language of host and guest. Humphreys et al. (2009) have illustrated the economic effects on investments and developments, revenues and incomes, balance and payments. The socio-cultural effects of mass tourism reflected in less developed countries like Nepal such as crimes and social problems. They have suggested that it can be managed through sustainable tourism (good relationships between hosts and guests) and bringing economic benefits to locals.

Review and plan-making is a continuous process, and stakeholders are consulted and involved that this needs to be reflected in the way. Constructive dialogues with key players in the tourism sector should develop by plan-making bodies, and build partnerships with those who have a role in delivery of tourism programmes and schemes. Tesco is currently one of the leading supermarket in the UK. With their even growing success with their business, they are planning to expand an organisation into new markets. They are specially interest to enter the travel and tourism industry. I am recruited by Tesco as a member of their marketing team. This is a report for the company which is drawn from the market research and demonstrated a clear understanding on the social, economical and environmental factors affecting the travel and tourism industry.

UK have impressive diversity and variety. England, Scotland, Wales and Northern Ireland all of the countries have its own unique personality for things to do and place to see. From the rolling hills of the Cotswolds and bustling city, like of Manchester to the chearms of sleepy Cornish village and dramatic coastal, splendour of the north east. UK tourism industry is much popular and well organised. Lot’s of employee works in this industry. From all over the world tourist, visitors come to UK to see it’s beauty and attractions. Border and immigration law is easy for short stay tourist and traveller. UK have lot’s of place to expend money for enjoy and UK always welcome people to visit there country.

Thomas cook, Thomson are the bigger tour operator in UK. They can arrange a whole package for tourist or individual what tourist want. Tour operator provide travel ticket, hotel booking, tour guide, transport, food etc. UK is rich in natural history, stunning scenery and award-winning historical sites with attractions for all age groups and interests.

It is easy to fined a hotel or accommodation in the UK. Whatever a tourist destination or budget there’s a limitless range of quality hotels, B&Bs and other accommodation to choose from. UK have over 37000 places to stay in their accommodation directory – British largest hotel listing.

UK compare all the leading airline for the best scheduled charter and low-cost flights to UK. Air is not only way onto this island however, UK have also got all the information on high-speed rail likes from Europe, as well as Ferry routes to and from various destinations. Whether tourists are travelling on foot , by car, bus, taxi or train, in fact whatever type of transport tourist are using UK transport and help tourist find their way easily from city to city, airport to station or restaurant to hotel, as well as providing tourist about essential information on hoe to use these services in UK.

The tourism industry is an important sector of the UK economy. Over 25.5 million visitors come to the UK in 1999 and estimates suggest that tourism expenditure was around ?61 billion and total employment in tourism in tourism-related industries was nearly 1.8 million people. Tourism industry include employment in the following sectors:

Hotel and other tourist accommodation,

Restaurants and cafes ect

Bars, public houses and night-clubs,

Travel agencies and tour operators,

Libraries, museums and other cultural activates,

Sports and other recreation activity.

Tourist can buy their product in several way like internet, telephone, email, fax ect. Tourism industries have their own website and they provide full package or individual product for customer. They put all detail about their product and easy to buy online. Tourist can call tourism industry about any specific product or services and pay over phone as well.

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The association of British Travel Agent:

The association of British Travel Agent(ABTA) is a non-party political organisation which represents the interests of its members to government and key opinion formers. In the UK these include Government ministers, Mps, members of the Opposition parties, select committees and senior civil servants. In Europe they have close ties with members of the European Parliament, the European commission, and staff within the directorate generals. As well as working to make sure that governments are sensitive to the needs of the travel industry, they work with other leading travel industry organisations and maintain strong links with representatives of the main travel destinations and with other travel principals and suppliers. Many of these belong to their travel industry partner scheme. ABTA’s policies and views are actively promoted to international, national and tread media.

English tourism council : It’s prime role will be to provide strategic leadership to drive delivery of the national tourism strategy. It will have a parallel function as a centre of excellence supporting the industry in five key areas.

Role of legislation :

Anyone involved in the recruitment and selection of staff for the tourism industry should be aware of their responsibility under the relevant UK legislation which are;

Direct discrimination

Indirect discrimination

Victimisation

Gender reassignment

Sexual orientation

Health and safety

Data protection act ect.

In the UK several Acts of parliament lay down the responsibilities of the seller to the buyer. The customer protection legislations are as follows;

The right to the seller to sell

Description

Selling by sample

Satisfactory quality ect.

The key environmental legislations are as follows;

EU regulation on ozone depleting substances

Waste electrical and electronic equipment regulation

Waste electrical.

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Recent developments in environmentalism and the role of environmental organisations
Key historical development of travel and tourism:

In the wider context, the sixteenth century Elizabeth mansion become a social and cultural centre, and early origin of visiting friends and relatives are easily identified in the period. From the seventeenth century, a form of tourism known as polite visiting emerges. Tourism based on social and cultural experience and education for young aristocrats became particularly prominent during the eighteenth century. Moreover the desire for people to travel continued to grow after the elapse of the grand tour and over the years major events took place within the evolution of tourism.

The organisational structure of the industry:

Tourism board of directors was established under the tourism Act 1979. The top level members are chairman, deputy chairman, managing director, chief executive, and directors.

Working with senior management, the board of directors is responsible for tourism overall performance. It approves goals and directions, strategic plan and performance target. The board of directors ensures appropriate policies, procedures and systems are in place to optimise performance, maintain high standards of ethical behaviour and provide leadership to tourism industry.

ABTA:

ABTA members themselves form the policy-making and enforcement machinery of ABTA. The board of directors , council of regions, regional representatives and a number of committees and working groups are supported in their work by a professional secretariat of some 60 staff.

The primary aims of the code of conduct are to ensure that the public receive the best possible service from members, and to maintain and enhance the reputation , good name and standard of ABTA and its members. Advertising in brochures is dealt with by ABTA’s Standards on Brochures & Booking Conditions which contain the minimum levels of information that travel agent should include to ensure that their clients can confidently choose the travel arrangements that are right for them.

Transport:

Airport – in airport ownership in UK the British airports authority (BAA) is the

major organisation. BAA leading London Heathrow, Gatwick, Standsted, Glasgow,

Edinburgh, Aberdeen, south Hampton. Also has management contract stakes in the

other airport outside the UK, plus retail management contract at two airport in the

USA.

Airline – British airline is one of the most famous and largest airline and 2nd largest airline in the world. It have four different type of cabin service ranging from economy to club world. Also there have lots of low cost airline which fly international rote. Like Ryan air , easy jet etc.

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Ferry travel – it is very traditional transport. From Dover in UK to France ferry travel

is most popular. Before English channel every one thought that ferry will loss 50% of

passenger but it was not happened. As a low cost transport ferry in famous in the

world.

The cruise market – it is one of the most famous travel in the world for enjoyment. Most of the oldest tourist interest to travel in cruise. But now a days youth and couples have lots of fun and enjoyment in cruise.

Road travel – in UK travel by car is most popular for day travel or domestic holiday.

The hire car is growth as well. people chose car when they are in abroad.

Rail travel – national rail own and operate the national rail network in UK. Rail is very relax journey for traveller and rail goes international rote as well like Euro star, Euro rail etc.

Tourism services:

Tour operator – Tour operator put the role together from different part and make a holiday and sell them as packages to the customer. They contract with hotels, airlines and other transport companies for make a package tougher. There are three type of tour operator which are: Outbound, Inbound, and Domestic tour.

Travel agent – Travel agent giving advice or information and sell and administer booking for a number of tour operator. They also sell flights, ferry ticket booking, car hire, insurance, accommodation as separate product. Thus they are distribute of products.

Attraction – Attraction appeal to the domestic tourism market and inbound tourism market. Attraction has two types natural and manmade. Natural like forest, beaches, lakes, land scape, hills etc. Man made attractions are super structure, national park, museum, zoo, gallery etc.

Accommodation – There are many type of accommodation available in travel and tourism industry like

Hotel

Guest accommodation

Holiday Park and campsites

Self catering

Youth hostel

Campus

Key environmental organisation:

EIB:- The EIB’s activity in the environmental field is extensive with staff involvement to match, in particular operational staff working on the environmental assessment of project. Environmental protection and improvement are among the EIB’s key leading objectives. The EIB’s environmental work is therefore increasingly varied and complex.

ABP:- ABP works closely regularly with ABP marine environmental research (ABPmer), a subsidiary consultancy company with over 50 years experience of providing specialist consultancy services on coastal, estuarine and riverine developments and conservation project.

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The demand and provision for tourism

New development in transport and access and effect on travel and tourism in various way. World is become change. New technology coming in market and customer demand is become rise as well. In travel and tourism tourist want more relax and easy product. In transport there have a lots of change like travel by train in Europe is more quicker then before. As an example before London to Paris by train was 4 hour journey now it is 2.30 hour .

Tourist want something more to see or always want something new. There have lots of new destination and tourist attraction built in Europe and America. For example Barcelona, Montserrat, & the Costa Brava, Lake Garda, Venice & Verona, Krakow etc. Harry porter theme park on course to open in Florida, Italy to open up renaissance canals.

Tourist want their tour easy. So when they want to go for tour, they can make their decision in short time an booking there ticket for air or hotel on spot. Japan use their oyster in their mobile phone. So they do not use card. They touch their mobile as a oyster. Mobile broadband is avail able in all over the world.

Mass tourism could only have developed with the improvements in technology, allowing the transport of large numbers of people in a short space of time to places of leisure interest , so that greater numbers of people could being to enjoy the benefits of leisure time.

World change rapidly and new technology change our life everyday. People always want something new and easy. On the other hand credit crunch quickly change tourism industry. Tourist who normally book 5 star hotel they interested to book 3 star hotel in this situation. Tourist tried to use public bus and travel in cheaper flight in the term of credit crunch.

On the other hand people expectation become change. Tourist now want to travel in short time to get more time to visit other place. They want their all expectation in same place. In UK some of the shopping complex established for tourist attraction, where tourist can buy all their need in same place. Not only in shopping also in artificial sea beach, where tourist can get natural felling in all the year.

Different age of people travel for different reason or for specie reason people can travel. Young age people mostly travel for adventure or activity like game or special event. Some of them travel for visiting their friend and relatives. But this type of travel tourist also try to fined attraction. Study tour is another popular tourism. Student mostly travel for specie place or attraction which is related with their study and can learn something from this travel. Religion reason is also a travel, like and example Muslim community travel in Saudi Arabia in a specie day to celebrate their hajj. From all over the world lot’s of Muslims come every year. Same as Hindu religion. India is bigger Hindu community in the world. So from all over the world people who are Hindu goes to India to celebrate their ceremony. SPA tourism is popular for those tourist who have some problem in health. Also people travel for treatment in different country. At the end of treatment people visit some of the place as a tourist.

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The role of government and the political and economical environment

Political Environment in International Business: Political environment has a very important impact on every business or organisation where they operation, no matter what its size or its area of operation. Whether the company is in local area, regional area or national, large or small, political factors of the country will have an impact on it. And the most crucial and unavoidable realities of international business are that both host and home governments are integral partners. Show something in its policies and attitudes about business are a governments idea of how best to promote the national interest, political philosophy and considering its own resources. Encouraging and offering support or by discouraging and banning or restricting its activities depending on the government control’s and restricts a company’s. .

The term political structure, used in a general sense, refers to # or groups and their relations to each other, their patterns of interaction within # and to political #, # and the norms present in political systems in such a way that they constitute the political landscape of the political entity.

A situation in which conditions and mechanisms of governance and rule are challenged as to their political legitimacy by elements operating from outside of the normal operations of the political system. When challenge occurs from within a political system and the system is able to adapt and change to meet demands on it, it can be said to be stable.

Even then, however, the challenge of governance and rule from outside the political

system is often associated with events of violence. Political instability will therefore

Normally go hand in hand with political violence. In the following, we will use the two terms interchangeably. It is also clear, however, that authoritarian countries can be stable but also relatively free of events of violence if they do not need to resort to violence to uphold their authoritarian rule and dissuade opposition groups from undertaking Violent acts on their part. We will test the hypothesis that autocracy, as such, does not have negative impacts on tourism.

The is an combining of various economic factors, such as total productivity, employment, inflation, income, and interest rates. These factors influence the spending design of individuals and firms.

Microeconomic environment: It includes the economic environment of a particular firm, industry or household and is primarily concerned with price determination of individual factors. The efficient allocation of resources is the main consideration from a microeconomic perspective. This is necessary to maximize total output.

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Macroeconomic environment: It includes all the in totality. The determination of the employment in the levels of income and the economy is the main consideration here.

Interest rates: Interest rates determine the cost and the flow of money of borrowing towards businesses.

Exchange rates: This impacts from the profits made by employment levels, exporters and the price of imports.

Income and wealth: Income in an economy is measured by GDP, GNP and per capita. In these factors a progressive economic environment shown by high values.

Inflation and deflation: Inflationary and deflationary pressures alter the purchasing power of this which has a direct impact on employment rates, consumer spending, tax policies, business investment, and government programs .

Productivity: This is the output generated from a given amount of inputs. High levels of productivity support by the economic environment .

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The trends in tourism

Political stability and instability: political stability and political relations influences the image of destinations in tourism- generating regions. Example of political strife that cause problematic concerns in the attraction of visitors are warfare, coups, political sticks or protests. Political instability is described as a condition of country where a government has been toppled or is controlled by factions following a coup or where basic functional per-requisites for social order control and maintenance are unstable and periodically disrupted.

Economical change: economical change influence tourism in many way. Recent credit crunch is a economical change in the world where country like USA, UK mostly affected. People loose their job, lots of company close there operation for money. People have no extra money for tourism. So this economical change reduce tourist. On the other hand tourism industries reduce their price for overcome the economical change.

Customer need and expectation: tourist change their need and expectation every time. They always want something new and high slandered so tourism industry going to follow customer demand.

Product life cycle: tourism life cycle have 4 method of life cycle like introductory, growth, maturity and decline. In summer tourism industry do lots of activity for tourist. But when summer is going to end tourist have no interest about the activities. And at the end of summer tourism industry stop to do those activity and ready for winter. This life cycle for summer and winter rolling in tourism industry.

Environmental issue: The environmental effects, widely defined, include cultural and social elements, and are probably the biggest problem of tourism. Environmental impact of tourism is most visible in tourist destinations. But effects are also visible at points of origin and transit. For example, the output of aircrafts, ferries, buses, cars equipment and promotional material consumes productive and energy resources and generates waste in origin areas while travel creates pollution in the atmosphere and adversely effects the environment of areas traversed.

Globalisation: Globalization has increased the interdependence between countries, economies and people. It does not involve only giant corporations, but also small and medium sized businesses together with family-run firms. This process has led to the creation and operation of global tourism market where destinations, which are expected to compete on equal basis regardless of the country of origin, function interactively. Globalization has opened a whole new world of development opportunities.

Education and training : people are more educated. So in tourism staff need trained and educated to understand tourist and communicate with them. Tourist want high standard and quality product and trained and skill customer care in their tour. So tourism industry aware of it and trained their staff about product and services.

Tourism is a big industry. Every year number of tourist are increase in average 5%. There are different type of tourist like some of the tourist stay for few week, some of the tourist stay for more then a month or day travel tourist. All of the tourist have same target to travel and fined a new place for enjoy and know something new. Some

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of the tourist come in seasonal. Summer is best time for tourism. Specially in Europe and American tourist like summer tour. But some of the country have some special day where tourist go specially for that day or time. Tourist want always new destination to visit. So tourism industry always fined new destination for tourist. Tourist want everything in same place and make easy their tour. Ecotourism is most poplar tourism for tourist to get everything in same place and enjoy for a short time.

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The role of planning theories, practices and legislation in sustainable tourism and planning strategy

In all forms of tourism have crucial importance to the economic, environmental and social well-being of the whole country. The vital role of planning system has to play in terms of facilitating the improvement and development of tourism in appropriate locations. Planners understand the importance of tourism need to ensure by tourism industry and take this fully into account when taking planning decisions and preparing development plans. Also ensure that those involved in the tourism industry understand the principles of national planning policy as they apply to tourism and how these can be applied when preparing individual planning applications. The tourism industry work and the planners together effectively to deliver, facilitate and promote new tourism developments in a sustainable way. Tourism have crucial importance in UK. It provides millions of jobs, generates significant revenues, , supports communities and helps to improve and maintain important national assets. A vital component of tourism is the make-up of the national economy. It contributes ?74 billion to GDP1. It is the UK’s third largest foreign exchange earner after vehicles and oil, of total exports tourism accounts for over 4%. It contributes an estimated ?11.8 billion to the national exchequer in terms of the tax paid by tourists on services and goods.2.2 million people employs by the industry – 7.7% of the UK workforce. Tourism jobs are located outside London almost 80% and in 150,000 small and medium-sized enterprises most tourism employment is located.

Having established the make into whole link between the environment and tourism, tourism and area development planning models are applicable to environmental conservation and protection planning as well as briefly reviewed. Parallels are drawn between the two planning approaches especially in relation to social special components. It is then provide evidence for something that the future of environment of tourism planning is based on environmental conservation, tourist views, the incorporation of community and the recognition of functional differentiation. It is insist on right that the planning of national areas for tourism should being from an environmental base and work forwards towards the identification of tourism opportunities and include the view of community groups and tourists.

Tourism is an important industry in all over the world. Its future development will be secured by tourism developers who engaging with the planning process and that importance those who operating the planning system recognising. The simple idea of ensuring a better quality is the heart of sustainable development which is life for everyone, now and for future generations. To help to make new development more sustainable the planning process provides the opportunity, both through the preparation of development plans and when decisions are taken on specific schemes. The outcomes should be developments which provide accessible development, safe and well-designed, and create new opportunities that will improve the regeneration of communities and the well being of individuals. The result in more efficient use of land and bring forward sufficient land to meet a wide range of expected needs. Provide a supportive framework for successful business and economic growth. Create viable, vibrant and vital town centres. Reduce the need to travel protect and enhance the natural and safeguard natural resources and built environment .

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Conclusion

This report offers practical advice to ensure that planners understand the importance of tourism and take this fully into account when taking planning decisions about tourism and preparing development plans. It also aims to help Tesco in the tourism industry to understand about the principles of national planning policy which they can apply in tourism. This report discuses how planners and the tourism industry should work together to promote, deliver and facilitate new tourism development in a sustainable way.

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The airline industry exemplifies the effectiveness of e-commerce and the way technology can re-create the industrial structure. Today a traveler from New York can book a round trip from New York to London, rent a car, and book a hotel room online. The same traveler upon reaching the airport can get his boarding pass, confirmation to his car, and his hotel room number from the automated ticket machine of the airline. If the traveler is a non-smoker and prefers a room on the non-smoking floor, the system would have his preference saved and would book the room accordingly. If any changes have to be made in the travel itinerary at any point in his journey, it can be seamlessly made by calling the respective customer service department. All this is possible, without any human interaction, through the development of information technology and the Internet (Doganis, 2006). Research shows that business travelers are almost twice as likely to use internet travel agencies to book their tickets as the conventional model because it is faster and more convenient (Travel Weekly, 2005). This forms only a part of the overall e-commerce model, which is not restricted solely to making reservations. It encompasses the whole process of doing business, interaction between the firm and its suppliers, partners, and customers.

The Internet and IT provide immense possibilities for growth for the airlines, and a plethora of information for the buyers so that they can grab the best available offers. The airline reservation system is a sophisticated computerized system that can predict and determine the demand for tickets over time and set the price accordingly (Economist, 2001). Therefore, e-commerce becomes the interface for doing business between all the service providers and receivers.

The airlines industry was one of the early adopters of IT and it has helped in changing the whole structure of the industry. Using IT they have successfully reduced their operating costs, marketing and distribution cost. As estimated by the Economist, the management information systems and the Internet together has saved the airlines “commissions of up to 5% on ticket sales” and “cost of printing and sending out tickets and the fees (around $11 per ticket) for the computerized reservation services” (Economist, 2001, p. 20). Companies like Southwest, Easy Jet, and Ryanair have reported that almost 90 percent of their tickets were sold online (Economist, 2001). There has been significant growth in the e-booking industry in America and it is not only limited to passenger e-bookings, but also to cargo bookings. In 2005, 14 percent cargo shipping through airlines was booked online (McKenna, 2005). The advantage of e-commerce is not restricted solely to cost reduction and provides opportunity towards improving their operations and customer services. This paper traces the history of integration of IT and the Internet in the business models of airlines and studies how this has changed the face of the industry. The paper will also discuss the technologies used by the airlines presently, and the future trend of the industry.

HISTORY OF THE AIRLINE INDUSTRY AND E-COMMERCE

Today the airline industry can be called one of the best adopters of IT. An interest, therefore lingers to understand the way in which the internet and IT have changed the interface of the airline industry. The beginnings of the innovation and change in the airlines industry to adopt new technology began in the 1940s with American and United Airlines trying to adopt an electronic reservation system to reduce clerical costs (Copeland & McKenney, 1988). However, this soon led to the need to keep a track of the customer ticket numbers and other personal details important to control operations, which in turn led to this information being utilized for seat allocation, baggage, food, and other operational and service issues. This in turn led to the utilization of the data being collected for the airline’s retail distribution channels for better marketing. This section will provide a brief history of the development of the airline reservation system and development of e-commerce for airlines industry.

The initial years of the adoption of the automated reservation call system were dubbed the “experimental years” (Copeland & McKenney, 1988). The first automation was brought forth in the 1940s with the most advanced electromechanical engineering technology available at that time. During the manual era, all the flight reservation, seat allocation, operations work, was done by reservation clerks who gathered customer information manually. Huge resource availability boards placed in all reservation counters that displayed the number of seats available on particular flights which were used to make the booking arrangements. In 1950s, this was replaced by magnetic drum memories that captured the inventories of seats available so that they could be displayed in reservation offices (Copeland & McKenney, 1988). In order to know the number of seat available, reservation clerks inserted plates at their desks for the required flight which would then display the number of seats available. The cancelations or change in itinerary were done on the on the plates as well. This system was good for inventory management, but failed to capture passenger seat records. It was not until 1958, through a joint effort of IBM and American Airlines, that an automated system was created that would associate the passenger name to her reservation (Copeland & McKenney, 1988).

The initial stage of the project was installed under the name SABER (Semi-Automatic Business Environment Research) in 1961. SABER comprised of two 7090 mainframe systems by IBM. One was provisioned for the purpose of real time processing and the other for the purposes of data backup and low-priority batch jobs. For real time data transfer capability, IBM specifically designed the 7286 Real Time Channels that would allow controlling, scheduling, and assembling of data between the “7090 and the magnetic drums, disk files, and communication lines” (Copeland & McKenney, 1988, p. 355). Though SABER had some unique capabilities and was a revolutionizing technological innovation in the sixties, IBM’s previous experience in the area was not sufficient to implement a complex teleprocessing system for commercial purposes (Copeland & McKenney, 1988). It took IBM and American Airlines until 1965, when they completed installation of the SABER system to prove that the core problems with passenger reservations for the airlines could be solved (Copeland & McKenney, 1988). In turn, SABRE became the first global distribution system (GDS) available to the airlines industry.

IMPACT OF GLOBAL DISTRIBUTION SYSTEMS

In 1964, IBM announced its System/360 that made their software compatible with any kind of hardware configurations. This change, along with its experience in the SABER project, allowed IBM to develop the Programmed Airline Reservations System (PARS). This allowed airlines to utilize standardized System/360’s for their reservation systems and helped the airline operators to reduce their cost of developing customized reservation systems (Copeland & McKenney, 1988). PARS was targeted to the mid-sized airlines, and allowed them to store passenger information along with reservation information, and a specialized operating system called ACP (Airline Control Program). Copeland & McKenney (1988, p. 356) states “ACP was designed to handle a large volume of inputs that, although unpredictable, required limited computational functions and flexibility. The software objective was to achieve optimal terminal response, system availability, reliability, and recoverability.” This in turn allowed Eastern Airways, TWA, and American Airlines to come together to cooperate in screening the names and information of their passengers for better understanding of their customer profiles. By the 1970s, all the airlines were using information systems to operate their businesses. Information systems were not however a differentiating factor in their businesses because the industry as a whole was regulated by the Federal government which made it impossible for them to offer discounted fares or compete on price differentiation. The Airline Deregulation Act of 1978 changed the landscape for the entire industry, and every competitive advantage was suddenly very important. The major airlines also started facing competition from low cost airlines which added another dimension to the competitive landscape.

Airlines started using their information systems to create yield management models in order to track scheduled reservations, and selectively adjust fares on individual seats. Yield management is the science using of operational research models to save seats for late bookings that yield higher revenue from customers (Belobaba, 1987). Thus, utilizing information systems, airlines could provide tickets at low costs early on, without increasing the risk of foregoing higher revenue closer to the time of flight. This allowed the airlines to target both the price sensitive customers with their low price offerings as well as high-revenue business customers who provided high revenue to the airlines. This yield management technology adopted by the US airlines allowed them to gain much higher revenue than those who did not use them. Therefore, the low cost airlines brought in a trend of discounted tickets, which was soon followed by bigger full-service airlines like American Airlines in order to fill their otherwise empty seats through heavily discounted tickets. In 1974, an effort was made to integrate and automate all the travel agents, which was called the Joint Industry Computer Reservation System (JICRS). The joint effort was aimed at making a booking system for all the travel agents who could book tickets using a single system for all the airlines. This was the first effort to establish an e-marketing system in the airlines industry. However, the plan was cancelled when United Airlines announced the launch of Apollo, its own customized system, for the travel agents. According to Copeland & McKenney (1988) the reason for the dislodge was as follows – “During the latter half of 1975, United concluded that the JICRS proposal was going to result in United paying dearly for the industry solution, which would serve only to reduce their advantage by making all airlines equal in their reservations processing capacity” (p. 359).

This caused all the other airlines that have their own systems to expand their capabilities and install them at the offices of the travel agents. These customized systems allowed travel agents to provide flight information that was biased towards their particular airline. Airline agents demanded access to all the different systems from a single console, which resulted in consolidation of the individual systems and cross system access using a common distribution language. Therefore, GDS was utilized to “identify potential itineraries, consider schedule convenience (proximity to desired departure time, number of stops, elapsed time) as well as the carrier(s) providing the service” (Smith, Gunther, Rao, & Ratliff, 2001, p. 41). The airlines that had the GDS were listed higher up in order of the customer’s itinerary (Smith, Gunther, Rao, & Ratliff, 2001). The first list that appeared in the travel agent’s screen had an impact on the customer’s decision. As cited by Smith et al. (2001), seventy percent of the bookings done through travel agents were displayed on the first screen display of the agent. This display bias led to an increase in the revenue of American Airlines by an estimated $100 million per year (cited in Smith et al., 2001).

Therefore, GDS became the interface between the travel agent and the airline. It provided the agents with all possible information regarding the scheduled flights and their fares for all the available airlines. Initially the bias in the display system was used by many airlines for their own profit. However, it was regulated by the Department of Transportation in 1984 to remove the bias in order to encourage fair competition.

IMPACT OF THE INTERNET ON THE AIRLINE INDUSTRY

Before the Internet arrived on the scene, airlines, GDS, and customers interacted through a private network established for the travel agents. With the Internet, the network was open to everyone, and already built out, which for the airline industry which was highly cost sensitive proved to be a win/win situation because they no longer had to invest in complex and expensive private networks. This resulted in the communication between the travel agents, GDS, and the airlines becoming simpler especially because the airlines already had extensive experience with data distribution via a common distribution language. Initially the Internet bookings were restricted to tickets reservations and payment transactions. On completion of the booking procedure, paper tickets were mailed to the customer. This made the process complex, as the customers had to purchase the tickets in advance if they wanted the tickets to reach them on time. Once electronic tickets were introduced, this problem was solved, as paper tickets were completely eliminated, thereby “reducing the lead time and cost associated with online purchases” (Smith et al., 2001, p. 41). This led to a widespread growth of e-ticketing for bookings through the Internet. As cited in Smith et al. (2001) a research conducted by Forester Research in 1999 demonstrated that 9 million households in the US booked their flight tickets through the Internet. In 2003, the number increased to 64 million who used the Internet to gather information or book tickets. (Werthner & Ricci, 2004).

The Internet has increased sales volumes for the airlines industry and has helped it in reaching their customers more efficiently. The primary reason is an efficient distribution system, which is individually customized to meet each traveller’s requirements. Three forms of distribution are employed by the airlines – online travel agents (Business to business), direct access to the customers (business to customers), and auction and reverse auction outlets (Smith, Gunther, Rao, & Ratliff, 2001). The first model provides direct access to GDS by the customers, wherein the travel agents are portals like Travelocity, Expedia, and Orbitz. The customers utilize the system to compare prices and airlines available on their chosen route of travel.

As stated by Smith et al. (2001) “the Internet aˆ¦ has also revived the airline sales agent in electronic form” (p. 42). The Internet has allowed many airlines to provide extra services and information to their customers and manage customer loyalty programs. Further, it also allows airlines to provide combined vacation packages to their customers. In this model the Internet is used as both a distribution as well as a marketing tool. It is used to promote low fares, special packages, and other offers to potential travelers. Further airlines often use their websites or the online travel agent’s website to promote their frequent flier miles programs, promotional offers, etc. one such example is that of Delta airlines which provides the “more for your mile” auctions through which the frequent flier club’s members can redeem their mileage for vacation packages (Smith, Gunther, Rao, & Ratliff, 2001). Further, the airline booking systems have extended their offerings beyond just airline ticket booking to car rental, reservation for hotels, etc. therefore the Internet has been used to optimize the design of the GDS to predict the nature of travel and other cross-selling opportunities to the customers (Smith, Gunther, Rao, & Ratliff, 2001). In addition, the airline website also helps in capturing the customer’s navigational path on the web in order to utilize this data to frame promotional campaigns.

The Internet is also used to reduce the distribution cost. For example, the Economist has reported that the average reduction in the cost of tickets is around $11 per ticket due to the change in mode of distribution systems (Economist, 2001). Further online travel agents like Travelocity save 19 to 65 percent in transaction costs (Harris, 2010). In 2001, 4% of all airline tickets were sold through the Internet. In 2009, almost 70 percent of the air ticket bookings are done online in the US (Harris, 2010).

The Internet has created new opportunities for air travel for customers and increased business opportunities for the airlines. Internet booking systems for the airlines are not restricted to being ticket providers, but rather allow travelers to plan their entire itinerary from air travel to hotel stay. The corporate websites also provide opportunities for additional customer services through unique customer web activity tracking mechanisms that can be utilized for customized offerings based on individual customers. Therefore, e-commerce has changed the way airlines do business and created additional opportunities for growth.

CURRENT TECHNOLOGIES INVOLVED IN THE AIRLINE RESERVATION SYSTEM

Airlines have adopted new technologies to improve operations, lower costs, increase profits, and to provide better customer service through systems integration and improved data mining tools from all their points of interaction. “Branding and communication of principles are also critical for airlines at the strategic level. Managing communications with all stakeholders, including investors, press, employees and customers, is of paramount importance. ICTs [Integrated Communication Tools] -enabled communications assist airlines to interact with all their stakeholders and to update them with regards to their initiatives and developments.” (Buhalis, 2004, p. 812) Further, the ICT helps in airline operations like check-in tracking, seat allocation, flight status, and also generating reports regarding flight path, weather, etc. In addition, it will aid in inventory planning, and reservation management systems.

THE CURRENT STATE OF E-COMMERCE IN THE TRAVEL INDUSTRY

Currently a lot of money is being spent by the airline industry in order to develop better information gathering tools, especially about their customers in order to customize their offerings and to provide tailored information. In addition customer convenience is another area that is a major focus for the airlines. For this reason, airlines have rolled out automated ticketing machines that allow customers to avoid long queues and do their check-in formality using unmanned kiosks at the airports (Schrage, 2005). These machines allow travellers to swipe their frequent flier card or credit card to pull up the customer’s travel itinerary and process their check in requests. Check-in can also be done over the phone or the web prior to arriving at the airport if the passenger believes that they will be late for the flight. This system is also being used to upsell passengers for additional services as a part of the check in process, as well as to collect any necessary fees for baggage, etc.

THE FUTURE OF E-COMMERCE IN THE TRAVEL INDUSTRY

As consumers become more technically savvy, additional technologies are offered to them in order to provide a better customer service experience. Consumers are also becoming more demanding while travelling. They are looking for additional services at every point in their trip, including additional details about every aspect of their travel, such as travel time, weather information, flight status, online access etc. The next generation technology in the airline industry will aim at better communications, not only with the customers, but also among the internal employees i.e. the ground force, and the airborne crew. Therefore, tools such as the GPS (Global Positioning System) can become even more important than it is today for both technology and in communication. In addition, airlines have plans to go completely wireless in future (Wilson, 2001). Wireless and mobile technology is being integrated into every aspect of airline operations to improve communication as well as allowing remote ticketing and baggage check-in through wireless devices (Wilson, 2001).

The airlines are trying to increase their customer focus by reducing the hassles faced by travellers at the airport and during air travel. According to research conducted by IBM, most of the delays in air travel worldwide after flight delays in 2008 occurred due to baggage mishandling (49 percent), failure to load the luggage(16 percent), and ticketing error or security (14 percent), and other issues (21 percent)(IBM, 2010). Therefore, the airlines have to focus on trying to reduce these issues by utilizing technologies like RFID and SOA (Service Oriented Architecture) in order eliminate the causes associated with these problems.

The airline industry is trying to expand the e-ticketing concept to make the other everyday passenger interactions easy. For instance, US airports now allow anyone with e-tickets to check in without seeing a ticketing agent. They also allow the traveler to check in their baggage using a similar process. The one major limiting factor is security, and once the airlines solve the issue of identity, I am certain that other services will be offered on a self-help basis to the traveller who chooses to do it themselves.

The next big e-commerce opportunity for the airlines is to exploit the possibility of mobile e-commerce (Wilson, 2001). Others opportunities that are being explored include trying to use Bluetooth or RF that allows transmitting of data for short distances to transmit flight related information to the customer in the waiting area (Wilson, 2001). They are also trying to understand how this technology can be used to market to their captive customers who have little choice but to wait in the designated waiting areas in airports, and perhaps even onboard the aircrafts.

In short, the use of e-commerce has only exposed a small tip of the overall airline industry, and they have been on this journey for more than eight decades. It is however very clear that the future success of the industry is very much dependent on the successful deployment of additional e-commerce opportunities for their customers and partners.

Tourism is a combination of services, activities and companies that provides you traveling experience with transportation, accommodation, food, entertainment, activity facilities and other hospitality services (Mathieson and Wall, 1982).

Hospitality is how well the community accepts you and their attitude towards you which make you feel safe and welcome. It is the interaction between the host and the guest associated with protection, etiquettes and respect. The extent to which the community shows hospitality varies with the culture and subculture of different societies (Lankford S.V, 1994). Tourism and hospitality is claimed to be the world’s largest industry by World Tourism Organization (WTO) with turnover of $3 trillion dollars.

Sri Lanka is famous for its tourism, mainly because of its beautiful islands beaches, old heritage and world’s best resorts in mountains. Tourist comes from all over the world for facilitating themselves and for this purpose the main tourism organization working is Sri Lanka Tourist Development Authority. This Organization is working in developing Sri Lanka to be the Asia’s most preferable tourist destination. It uses its products creatively while promising effective and efficient use of resources. They are working hard to identify unique services, formulating as well as implementing new strategies for tourism development.

Structure

This assignment is divided into five different sections from section A to section E. Section A would discuss the brief introduction about tourism/hospitality and the tourism organization selected, section B would define the different services and product offering offered by tourism organizations in order to promote growth, section C would discuss about the global demand issues that drive the constant need for updating tourism services. Whereas section D will focus on innovative strategies and activities followed by tourism organization to satisfy these changes in demand. Section E would discuss the services provided by SLTDA.

B) Different Product/Services by Tourism Organizations:

The basic services that the every tourist expects to receive are:

Accommodation: Varies according to your packages from motels, private small hotels, 5 stars hotels and resorts.

Food Facilities: Tourist experience depends a lot on the food quality he is available to as most often people travel for exploring the beautiful locations and for enjoying the different kind of food of that country.

Time and Money: Tourism Development depends a lot on the access and ease the tourist gets after enjoying his vacations and for that it is important that he does not faces such issues relating to time and money specially.

Accommodation, Tours, Sight-seeing, Cruises, Car rentals, Best Air fare rates, Transportation, Tour Guides, Entertainment are some of the basic facilities provided to you by tourism organizations depending about your package. Whether you want to have a luxurious vacation with all the facilities at its best or a simple economical holiday, this tourism organization has packages according to your budgets and demands (David Weaver, 2005).

Tourism organization has to work on constant basis for developing there product portfolio in order to maintain their demand and to stimulate growth because once you have plan to go on a vacation, at first you select the best possible place depending on your affordability and after you have shortlisted two to three places you start listing them according to their product/services offering. The best tourism package offered with all the preferable facilities and the one which is within your range as well (David Weaver, 2005)

B.1) Different Value Added Facilities Provided By Tourism Organization:

Bucket shop: Bucket shops are retail outlets which offer discount rates in airfares in commission with tourism organizations.

Charter airlines: These airlines facilitate the movement of tourists on ‘packages tours’ or ‘seat-only package’. They offer low cost transportation services to holiday destinations, for this the customer however has to make compromises by traveling at inconvenient hours or by providing just elementary services.

Computerized Reservation System (CRS): Access to airfares, schedules, packages, availability of seats and reservation beforehand become possible by this system.

C) Global Demand Issues in Tourism

C.1) Background

Diversification is important in tourism. It refers the addition of new product to the already developed products portfolio; it is a process by which new products are added to the product portfolio of a tourism business or destination in order to avoid over-dependence on a few, often highly competitive, products. Tourism has changed in the last 30 years with the rise of the jet aircraft; it has now emerged as a global phenomenon. It is today one of the most important global industry. 593 million tourist travelled abroad in the year 1996 while in 2003, 694 million tourists travelled worldwide (Long, P. T, 2000)

Before it was difficult to analyze the accurate data but after the development of Tourism Satellite Account(TSAs) it became easier as TSAs informs you about the accurate, reliable and comparable data which is collected by individual nation. However it was also came in notice that economic crisis like Gulf War, effect of 9/11, oil crisis in 1970’s effect tourism and tourism organization economically as it is a global risk for tourists to travel in such conditions (Stephen J Page, 2005).

C.2) Consumer and the changing world

The economical as well as geo-political situation demands for new strategies day by day. Variation in technology, demographics, political and world scenario changes the outlook of world as well as of customer. There are two perspectives in this new demand factor. Demand is influenced by factors such as traveling motivation and the ability to travel and on the other hand we have behavioral changes like destination preferences, ease at traveling, quality of experience but all these demands vary upon the intention of traveling. The person who has been traveling a lot and is experienced will adjust to the surrounding even if it is not according to his demands (Martin Lohman, 2004)

The other influencing factors in the tourism demand are divided into different categories for better understanding that is economy, politics, crisis and threats, demographic change and technology and all these factors are inter linked with each other. These factors have impact as holiday demand is driven by the need, motivation and realization depending on the economical situation of the individual and freedom to travel. External factor has an impact by effecting the ability to travel that is freedom, money, time, physical ability) while consumer behavior does not depend on any single factor but is actually the reaction caused by the external factors and is also backed by the internal factors such as motivation, strong desire (Martin Lohman, 2004).

Moreover there are several emerging factors having its impact on the demand and creating this dynamic nature of tourism which is known to all however bringing an overnight change is not possible, similarly these trends will also not change the world tourism.

C.3) Demographic Changes:

Although it was a constant process but in recent years it is showing changes more often now and is considered to be the most important in the European countries. These demographic trends have an impact on tourism plan of countries. Previous researches has shown that people in European countries doesn’t change their traveling pattern due to their increasing age or retirement but it is now observed that the generation when will reach the age of 60’s would not follow the same pattern. The senior citizen today are more active and enjoy all these tourism activities but the senior lot in next 15 years will be dull and less active comparatively. Similarly the declining rate in number of children is also showing some changes but this rate is really slow to bring in notice therefore one does not expect tourism organizations to change or re-orient their strategies (Lohmann and Denielsson, 2001).

C.4) Standardization vs. Unique Offering:

Technology is changing, with this new era of changing trend it is expected that the customers will demand for high quality product offering and will thrive for change but it is also stated that a little bit of standardization is a must for tourism product portfolio. But too much standardization will be a bigger risk for organizations because there will be no variety offering matching to the rapid demand of exclusivity. The customer today wants both quality and uniqueness. This means that the industry has a new challenge because it has to maintain a balance between standardization and exclusivity (Lohman, 2004)

Moreover considering the ongoing demand it is not necessary that the tourism product offered is good or not similarly whether the product is considered good by the consumer is also not important, the important thing is that it should be considerably in the list of priority high lightened by the tourist and should be considered the best in the specific list. Same goes for the tourism organization which include travel agencies, operators, hotel management and transportation in-charge by offering convinces and guidelines to help the consumers (Lohman, 2004).

Currently there is no major changes to be predicted but that doesn’t mean that we take it as a smooth path because one cannot predict future and it is always expected to show unexpected event for example any political change, any natural disaster, epidemic disease, war) therefore it is necessary and also possible that the tourism organizations prepare for the changing trend which can be identified by keeping a close eye on current situation. Demand is high but that will not make you able to sell anything to experienced tourists (Taylor, 2001).

All these above global issues make it necessary for the tourism and hospitality organization to constantly develop their products to meet the constant demand.

D) Strategies and Different Activities Employed By Tourism Organizations:

Strategic planning consists of several steps. The first step is to formalize a proper organization which controls all the necessary details. Then a vision must be developed about how you actually want to shape out everything followed by other details including infrastructure and investment issues.

D.1) Competition:

As time is changing the world is also in constant demand of change which is resulting in competition among different countries thriving for economic growth, development better than the other country. Similarly the world tourism is also emerging day by day and countries are trying to benefit themselves by developing their country into a proper tourist spot in return generating huge revenue (Fainstein & Gladstone, 1999). This will also benefit the country in prospering as developing the country will make the government work on infrastructure and surrounding quality along with that it will help making the relation stronger of the host country with the other countries whose tourists are welcomed with immense hospitality. Moreover for handling tourism more employment is needed which is good for the localities and it is also noticed that those countries which are not developing themselves for betterment and tourism may left behind in such a competitive environment where every other nation is fighting for a standalone position in the planet (Fainstein & Gladstone, 1999).

Not just internationally it is expected among the cities as well within the same countries to work for their own betterment competing with the other city of the same nation. Every city mayor should work for the development of its own city which may eventually result making the city a place for tourism destination (Holcomb, 1999)

D.2) Strategies Development:

Countries that strive to be competitive must develop a long term strategy and start working on it because without a plan you cannot achieve your goal. It’s a long term process because developing a country in a preferable tourism destination and above all developing the sense of hospitality among the local community is not an easy job. Therefore for achieving this difficult task you need to first develop a strategy which is a set of policies intended to achieve your goal and mission (Getz, 1997).

D.3) Innovation:

Further more once the mission is achieved one must not take it for granted and should work to improve it day by day as tourism industry can never settle on one standardize procedure, it must keep brining innovation depending on the current trend and demands on its consumer (Van den Berg et al, 1995).

D.4) 3 A’s of Tourism:

There are 3 A’s of tourism which must be kept in mind all the time because it has the core importance

Access: Transportation must be provided to the tourist easily so that they can easily access their desirable tourist spots.

Attraction: Tourists must find variety of attractive places to visit and explore. They must have different choices to make so that they can enjoy their trip completely instead of sitting at home even on vacations.

Amenities: The facilities available to the tourist on the particular location or destination they plan to visit.

However the most important A in this category is the second one Attraction as tourism is all about exploring and visiting different locations (Dieke and Karamustafa, 2000).

D.5) Events:

People are getting involved into different kinds of events and therefore chose holiday destination considering the upcoming possible event, so that they can enjoy their holiday break completely. Therefore the event business is also a profitable business these days. It is also noticed that sometime events make the tourist visit a specific location for example Dubai festivals or fashion shows make people visit Dubai, which often doesn’t hold a desire for exploring Dubai but those events (Getz, 2004).

This helps a lot in off seasons when tourism is at a low level encouraging the tourists to visit helping the tourism organization in maintain their profits. Besides that it also help in developing an image of the host country in a favorable position making the country as a favorite holiday destination for people from all over the world. (Mossberg, 2000)

As events are important part of tourism, one should work for its marketing in a proper way. Promotions through blogs, brochures, press release are some common way for marketing the events. Different marketing channels should be adopted for promoting the events so that everyone comes to know about it and it should be done giving enough time to the travelers so that they can plan a trip conveniently.

D.6) Culture and Roots:

The host country should emphasize on its culture greatly because the tourist find it attractive as it gives them something different to explore. Ancient heritage, monuments is of keen interest for the tourists and in this way one can make its own culture known to the people worldwide as well (Mossberg, 2000).

E) Sri Lankan Tourist Development Authority:

E.1) Tourism In Sri Lanka:

Sri Lanka’s main business comes from its tourism. It has ancient heritage, beaches, beautiful mountains, lush green resorts making it a perfect spot for holidays. Tourists comes from every part of the world to visit Sri Lanka as it has a really good tourism development organizations working for the betterment of industry and bringing diversification in there product offering.

Visa policy for Sri Lanka is comparatively easy to get. Usually they give a tourist visa for 30 days but it can also get extended. Your visa can extend up to three months by paying some amount and it can further increase for three months giving extension fees along with additional Rs.10,000 however extension more than this depends upon the concerned authority ((Sri Lanka Development Tourist Authority Online)

E.2) Different Exclusive Offering By SLTDA:

Sri Lankan Tourist Development Authority offers different exclusive services in order to satisfy their customers and confirming a great experience depending on their affordability

Heritage: Sri Lanka is rich in ancient heritage. It has preserved Asian monuments which are an attraction for people all around from the world especially for tourists who are fond of ancient culture and tradition specially visits Sri Lanka for enjoying these cultural, belief and traditional way of living that is held in reserve in the roots of Sri Lanka. UNESCO world heritage, Adam’s Peak are some of the must visit in Sri Lanka.(Sri Lanka Tourism Guide)

SPA and Ayuerveda Treatment: They just not revive your mind and body but also try to sooth your soul by providing you with the most popular method AYUERVEDA for relaxing your body and mind and healing spiritual and physical problems by herbal treatments, various relaxing bath and body massages along with physical exercises such as yoga, aerobics and particular diets which help one feel relaxing and completely enjoying this lavishness of life which you usually do not cherish in your daily routine (Sri Lanka Tourism Guide).

Shopping Destinations: Apart from beautiful and lavish shopping malls in Colombo and other larger cities, one can also enjoy traditional villager shopping in small villages and handcraft material from local vendor on a very cheap price, while brass work of Sri Lanka is also very famous due to its finesse. Another purchase f Sri Lanka are its silverware that is also given as a souvenir at times but the most famous of all are the widest variety of stone found in Sri Lanka because of which Sri Lanka is considered among the largest gem producer country therefore you can also facilitate yourself by getting yourself these stones on your visit (Sri Lanka Tourism Guide).

Adventures Sports: Sri Lanka offers the chances of indulging in all kinds of sports specially adventures involving waters as it has more than 100 beaches which facilitate you to go for water skiing, water surfing, scuba diving, boating, Speed boating. Moreover these sports are run under the supervision of professionals and when you are thorough professionals you can also try killer fall, head chopper and drop. Apart from water adventure one can also enjoy wildlife, forest exploration, mountain climbing for being able to witness the world’s most beautiful scenery ahead. Beautiful waterfalls are also one of the desirable scenes to watch in Sri Lanka.

Safari which happens to be the national park of Sri Lanka has variety of animals including different kinds of mammals, elephant, hog, porcupine, ant eater and variety of monkeys as well. Islands have different kinds of reptile (snakes, crocodiles as well) making it dangerous to wander carelessly as it is said that out of all these hundreds of reptile kinds 5 of snake found are deadly.(Sri Lanka Tourism Guide)

Festivals: Sri Lanka is a city of on going entertainment and therefore every season you will witness some kind of celebration going on. Cultural festivals, Harvest festivals or some regional ceremonies are always taking place.

All these are the exclusive offering which is given by the Sri Lankan tourism organization to its tourists depending on their affordability level. Apart from those basic facilities like accommodation, transport, breakfast benefits are usually included in the tourism package.

CONCLUSION: In the end it is concluded that tourism organization faces extreme global issues and if they want to be ahead of others they must constantly bring innovation intro their product portfolio. Strategies should be made and tourism organizations must follow them step by step.

REFRENCES:

David Weaver. 2005. “The Ecotourism concept and tourism conservation symbiosis”. Journal of sustainable tourism 13 (4): 376-389.

Fainstein, S.S. and Gladstone, D. (1999) ‘Evaluating urban tourism’, in D.R. Judd and S.S. Fainstein (eds) The Tourist City, New Haven: Yale University Press.

Getz, D. (1997). Event Management & Event Tourism. Cognizant Communication Corporation

Lankford, S. V. (1994). “Attitudes and perceptions toward tourism andrural regional development. Journal of Travel Research, 31(3), 35-43.

Lohmann, Martin (2004): The 31st Reiseanalyse – RA 2001. Tourism; Vol. 49, N° 1 / 2001; pp 65 – 67, Zagreb.

Lohmann, M. & Danielsson, J. (2001): Predicting Travel Patterns of Senior Citizens: How the Past May Provide a Key to the Future. Journ.of vacation marketing, Vol. 7, N° 4, pp. 357 – 366

Long, P. T (1990). Rural resident tourismperceptions and attitudes by community level of tourism. Journal of TravelResearch, 28(3), 3-9.

Mathieson and Wall, 1982, Tourism; economic, physical and social impacts, Longman House groups in tourism centers. Journal of Travel Research, 21 (3), 8-12.

Morrison(1998). Convention and visitor bureaus in the USA: a profile of bureaus: bureau executives and budgets. Journal of Travel and Tourism marketing, 7, 1-19.

Mossberg, L. (Ed) (2000). Evaluation of Events: Scandinavian Experiences. The United States of America: Cognizant Communication Corporation.

INTRODUCTION

Event manager is a person of vision, energy, and commitment in a position of responsibility and authority. An event manager plays myriad professional roles. Event managers and their teams are often behind-the-scenes running the event. Event managers may also be involved in more than just the planning and execution of the event, but also brand building, marketing and communication strategy. The event manager is experts at the creative, technical and logistical elements that help an event succeed. This includes event design, audio-visual production, scriptwriting, logistics, budgeting, and negotiation and, of course, client service. It is a multi-dimensional profession. So now let us see some of his duties and responsibilities.

An event manager is a, Project director: Set and define goals; schedule and assign tasks, Personnel supervisor: Choose, motivate, and evaluate staffs, Art director: Design theme, decorations and printed materials, Executive: evaluate long term results and make decisions, Accountant: plan budgets and balance the books, Facilities experts: find and use a site to its fullest potential, Public relations practitioners: target audience and develop publicity campaigns.

Salesperson: sell the event to the organization, financial sponsors, and the public, Box office consultants: ticket sales and registration process. Program administrator: develop and schedule programming. Caterer: create nutritious menus and oversee food preparation. Captain: choose and implement food service system.

DUTIES AND RESPONSIBILITIES OF AN EVENT MANAGER

They will also attend the event to ensure everything goes to plan. Event managers supply to all types of services relating to the events industry a take on the responsibility of coordinating all the logistics involved in making the event work to the clientaˆ™s satisfaction. They are follows:

Personality

An event manager should be able to present a calm, friendly, and courteous manner at all times. The five essential characteristics of successful event managers can be listed as:

Detail- oriented

Organized

Full of energy, both physical and emotional

Nurturing

Flexible. Having a good sense of humor is a key apart from the above qualities.

Motivation

The job of event manager requires hard work and a service orientation; it is not a good position for a glory seeker. The person who wants to sit at the head table, give orders, and look important has the wrong idea of an event manageraˆ™s functions.

Safety meetings and inspections

During the risk assessment meeting the event manager needs to elicit all possible health or safety hazards associated with the goods, services and personnel to be used to produce the events. Specifically ask all vendors and suppliers to identify potential physical hazards and the safeguards necessary to prevent exposure to illness or injuries. Use this opportunities to communicate a commitment to safety in all aspects of the event.

During preliminary site inspections the event manager should look for any event element or aspect of the event site that might have the potential for injury, scanning sanitary supplies and disposable diapers/ nappies, is sometimes considered a form of hazardous material, may be generated by first aid stations and must be disposed of accordingly.

Particularly for outdoor sites, pest control may be important, perhaps requiring clearing and cleaning out of infested areas, spraying for insects. The event manager should determine if vector borne diseases are possible and work with public health authorities to control the vector.

Sanitation and hygiene

Cleanliness and hygienic conditions are imperative for many reasons, including health and safety from injuries or illness, but also for the comfort and the welfare of the event audience, participants, and personnel. Water is a critical component of health and hygiene. The quality and the quantity of the water must be accessed, particularly for outdoor events and temporary event sites, including the potential for water supply sabotage and the location and logistics of getting emergency water supplies. Free and freely accessible drinking water must be provided at all the events. Potable water must also be provided for cleansing needs and non potable water may be needed for dust abatement.

Sanitary facilities must be in sufficient numbers to accommodate the expected numbers and types of users for the expected duration of the events. They must be positioned appropriately to serve the various event populations.

Occupational safety is also a consideration. The catering operations must guard against such hazards as burns from cooking and serving equipments, cuts from knives or broken glasses, slips and trips on spilled liquids or electrical cords, falls, fire and fumes.

Preparing an event record

The event records mainly include:

Timeline/ schedules

Initial proposal

Contacts

Committees

Correspondence

Budget

Site

Marketing and promotion

Promotional materials

Registration

Theme and program

Audiovisual

On the day of the event

During the event, a manager should greet guest, visit at tables during the meal, discuss the sessions with seminar leaders, and generally see to it that everyone has the best possible time. Ideally, a manager will have delegated well enough to be able to do nothing but transverse the site, checking upon people and activities and chatting with guests to find out how the event is perceived. At outdoor sites and large events, event managers sometimes distribute walkie- talkies or wears beepers.

Keeping the events on track

The following steps are taken by the event managers to keep the events on track:

Select volunteers; form committees

Decide goals and themes

Research audience

Create event names and logo

Choose evaluation methods

Outline budget

Contact potential sponsors

Visit and select sites

Diagram sites

Make signs

Plan publicity campaigns

Contact media

Design registration

Audition and select performers

Schedule rehearsals

Draft menu

Negotiate with caterers

Choose serving style

Shop for supplies

Prepare food

The big day

Clean up and close

Meet for evaluations

Send thankyous

Write and file reports

Selecting an event

The choice of a specific event will rest on three supports:

Purpose ( fund raising, recruitment etc)

Audience (need and characteristics)

Organization (success lies in using the strongest resources)

Special events held by organizations and clubs can center on such elements as:

Food (bake sales, potlucks, award banquets, cooking seminars)

Entertainment (talent shows, concerts, theaters parties, gospel sings)

Merchandise

Athletic endeavors

Education

Games

Potpourris

Choosing a theme

A theme should be developed by the event manager for the event. Hobbies and careers, holidays, seasons, games, activities, history, costumes, ethnic culture, geography, colors, flowers, jewels, literature, and weddings can all form the bases of the special events.

The date itself may suggest a theme.

The site of an event may contribute to theme ideas.

Names and logos should be selected with great care. Use a memorable name that clearly explains and identifies the event.

One of the manageraˆ™s tasks is to maintain the atmosphere of the event.

Clever lighting can help spotlight a performer or speaker, encourage intimate conversation, or display artwork to advantage.

Goal settings for special events and Conferences

Raise funds for a specific cause, person, or place

Build spirit among long term members ( heal a breach, solve a political problem, launch a new program)

Facilitate information distribution/ exchange especially for large audience

Recruit new members (specific or group of people)

Celebrate, give awards, recognize volunteer efforts

Attract publicity, reach new audience, heighten public awareness

CONCLUSION

Event management is the application of project management to the creation and development of festivals, events and conferences. Event management involves studying the intricacies of the brand, identifying the target audience, devising the event concept, planning the logistics and coordinating the technical aspects before actually executing the modalities of the proposed event. Post-event analysis and ensuring a return on investment have become significant drivers for the event industry. For event management we should have proper communication skill and hard work for it. And we should be ready for work in out the event, only then we can become an Event Manger.

Rajasthan is one of the most important tourist destinations in India and South-East Asia. Domestic tourism is believed to represent a vehicle for retaining hard currency that might otherwise leave the country in the form of outbound travel expenditures in foreign destinations. As domestic tourism quantifies nearly five times the size of international tourism of any average country but the adequate importance has not yet been given to it or we can say not yet taken the organized form in our country i.e. India. In the present article, a review of the sector’s competitive strengths, weaknesses, opportunities and threats indicates that it has considerable growth potential. A separate SWOT analysis after examining the available resources could prove beneficial and is necessary to chalk out the target market groups, their strengths, weakness, threats & opportunities. It helps in designing marketing strategies to promote domestic tourism in Rajasthan. As a conclusion of this article, although tourism is a fickle industry, subjects to consumer whims and fancies beyond the industry’s control, it is also a dynamic and exciting industry. In the end, few of the major suggestions are also presented to envisage the broad spectrum of this dynamite.

Introduction:

Domestic tourism is believed to represent a vehicle for retaining hard currency that might otherwise leave the country in the form of outbound travel expenditures in foreign destinations. By encouraging spending by affluent local populations in domestic locations, foreign exchange is saved without implementing potentially regressive deterrents to outbound travel.

As domestic tourism quantifies nearly five times the size of international tourism of any average country but the adequate importance has not yet been given to it or we can say not yet taken the organized form in our country i.e. India.

Being dynamic in nature domestic tourism is the only one which forms base for international tourism. Considering the volume and its reliability in terms of seasonality greater emphasis is now laid on domestic tourism in the interest of coordinated economic development and giving or providing the citizens the chance and facilities to enjoy the bounties of God and man-made creations of Tourism. It has well been observed that domestic tourism provides an opportunity in terms of better utilization of tourism infrastructure and improves their returns, as well as shows great support in lean season and international strife’s and turmoil’s.

Traditionally the domestic tourist has never been given the importance that he deserves because of certain prejudices and preconceived notions that are chiefly based on the assumption that the domestic tourist can not become a major source of the generation of revenues in comparison to the international tourists.

However this approach has been one of the biggest and yet unnoticed deterrent in the growth of tourism in India as a whole. Without creating a strong environment for domestic tourism the success in international tourism will remain illusive. One of the major drawbacks of ignoring the domestic tourism sector is that it closes out the possibilities of the exploitation of available resources and the vast potential of the domestic tourist, which when properly utilized, may give a major boost to the economy of tourism and that of the entire country.

The assumption that the domestic tourists do not have a big paying capacity and therefore, any significant attention towards the sector may not prove to be fruitful. The experience of post-independence tourism in India has proved that the entire sector of tourism lives under a constant threat of the political churnings within the nation and on the International level.

Rajasthan is one of the most important tourist destinations in India and south-east Asia. Its desert dotted with rugged forts and beautiful palaces, lakes, wildlife and bird sanctuaries, charming cities, fairs and festivals and colorful culture form the most fascinating and unique basket of attractions for any tourist.

Table: Domestic Tourism in Rajasthan
Year
Domestic Tourists
Change in Tourists Traffic (In Percentage)

2001

7757217

5.19

2002

8300190

6.99

2003

12545135

51.14

2004

16033896

27.81

2005

18787298

17.17

2006

23483287

25.00

2007

25920529

10.38

2008

28358918

9.41

2009

25558691

-9.87

2010

25543877

-0.06

Source: Department of Tourism, Government of Rajasthan, Jaipur.

As far as Rajasthan is considered vast potential and resources are there but the need to pay heed is required. Rajasthan’s rich culture, history and heritage have always been a centre of attraction to all masses, not only for the international tourists but the domestic tourists as well. Along with international tourists the need of an hour is to look at our own people, experience the share of our rich cultures and mingle inter-stately in all spheres thus multiplying our income and integrity on whole.

Rajasthan has been recognized as a destination to offer all the dreams comes true for everyone but has emphasized more on international tourists. Why do we neglect this major sector when we can really generate the source from them? What message do we give to them when they visit us or do they really carry a lifetime experience and desire to come back? There are lot many questions to ask and who is accountable to answer.

Domestic tourism is accorded as the base for international tourism and has bigger share and more potential than international tourism in terms of volume and receipts but being the neglected sector has remained disorganized.

There is a need for a framework to be evolved which is Government – led, private sector driven and community – welfare oriented. Government will have to provide a legislative framework to regulate tourism trade and industry, ensure safety and security of the tourists and create basic infrastructure and health care facilities. The private sector has to act as a main spring of the activities and impart dynamism and speed to the process of development as well as conservation. Both governments and the private sector would be required to safeguard the stability and also the social and economic advancement of the local communities. Moreover, effective linkages and close coordination should be established with such departments as Civil Aviation, Environment, Forest, Railways and Home etc.

Domestic Tourism in Rajasthan – SWOT Analysis:

A review of the sector’s competitive strengths, weaknesses, opportunities and threats indicates that it has considerable growth potential. A separate SWOT analysis after examining the available resources could prove beneficial and is necessary to chalk out the target market groups, their strengths, weakness, threats & opportunities. It helps in designing marketing strategies to promote tourism.

Strengths

Domestic tourism has the potential to increase the productivity of Rajasthan’s natural, human, cultural and technical resources.

It is labor intensive industry, providing employment and contributing in better quality of life.

It is capable of being primarily focused on rural areas with appropriate and relatively low cost programs.

Domestic tourism has extensive forward and backward economic linkages that build overall income, employment, investment and raise central, state, local government revenues.

Tourism on the whole has the ability to promote understanding, peace, and contribute to national unity and regional stability.

The rich natural and rural landscape of Rajasthan is punctuated with the built heritage of its ancient past and more modern structures of present and its hopes for the future. Rajasthan’s grandeur is reflected in the rich cultural diversity of its people through its languages, cuisines, traditions, customs, music, dance, religious practices and festival, its holistic healing traditions, art and craft.

Weaknesses

One of the major drawbacks is the low priority given by the government which reflects in the limited budgets, limited cooperation and coordination capabilities and the inability to implement strategic initiatives and projects.

The other main constraints are undue importance on international market at the expense of domestic tourism, the security scenario which affects the perception of Rajasthan as safe, the quality of facilities and services at attractions, the quantity and quality of transportation services, the related infrastructure, limited availability of tourist information in source markets and at destination, insufficient marketing, and limited and poor facilities and services outside the major cities, especially in rural areas.

Opportunities

The major opportunities are leverage the huge potential of India’s domestic urban population to develop pilgrim tourism, rural tourism, cultural tourism and heritage tourism.

Leverage its strength as major cities are enlisted in the list of heritage cities of UNESCO and its rich and diverse natural heritage can increase its share in the huge domestic market.

Leverage its strength as one of the fast growing state of India in terms of tourism, investment, technology and entertainment.

Leverage its strength by welcoming investors with its friendly and liberal investment policy.

Threats

The main internal threats to the development domestic tourism sector are failing to effectively resolve the constraints mentioned in the weaknesses. They are security, safety, health and sanitation; failing to involve communities in the decision making process for the development of tourism; failure to adopt and implement sustainable development and management practices at the sites, especially in the rural and natural areas of the country.

From an external point of view, the main threats are not effectively approaching the fierce and ever- increasing competition from competing states like Kerala, Uttranchal etc., over- reliance on a few well known international and domestic travel markets like Gujarat and Bengal.

For tourism destination planning, the following are probably some of the important factors which may foster development.

The availability of natural resources & attractions.

The availability of investment funds.

A skilled human resource base

Government policy

The economic, socio cultural and environmental effects of planned tourism activity.

Local population opinion

The degree to which an entrepreneurial climate exists.

Destination accessibility.

The presence of complementary services and facilities such as infrastructure and superstructure.

Rajasthan possesses a rich and diverse range of unique tangible and intangible cultural, natural and man – made tourism resources, many of which are world class in quality, and most of which are located in rural areas. The tourism resources of the state have the potential to attract significantly higher levels of markets demand from the domestic and international markets provided that sustainable site management practices and principles are adopted and applied, and the other constraints identified above are effectively resolved. Provided that the identified constraints and opportunities are addressed and appropriate plans prepared to handle the internal and external threats, then it is considered that Rajasthan Tourism focus should be to: Substantially increase the proportion of the urban resident leisure and pilgrimage tourism to rural areas not just in terms of volume but also in terms of length of stay and expenditure.

Conclusion & Suggestions:

As we can conclude that, although tourism is a fickle industry, subjects to consumer whim and forces beyond the industry’s control, it is also a dynamic and exciting industry. The benefits are easily replicated by any other types of product or service. Major Suggestions of this article are given as follows:

Successful tourism development depends not only on the hotels and travel agencies but on the provision of adequate infrastructure including transport and communication, power, water and good standers of hygiene and medical facilities.

Appropriate infrastructure like transport, accommodation should meet the demands of tourists as they generally feel that they are the neglecting sector in comparison to international tourists.

Advertising and what is lacking in terms of domestic tourism products is the availability of “interest – oriented packages” similar to those which are developed for the overseas visitor.

Involving consultants with wide knowledge and having ample of resources in preparing policies and strategies for the future tourism.

The government should administer law and order, should have vigilant tourism police, rectification of complaints on time, frame rules and regulations for tourism industry.

Steps should be taken to avoid any harassment by private operators and touts.

Facilities consisting of good communication and transport connections to nearest rail, road, and air heads.

Brochure, mouth publicity, email, websites, newspapers, all types of electronic and print media are the modes of communication to reach all centers of tourists so they should be updated and presented in the manner which highlights the attractions of the destination and the state on the whole.

To strengthen domestic tourism, one of the important aspects is to listen and rectify the problems of domestic tourists which are virtually neglected.

Domestic tourism is not only a revenue generating sector, but also act as a tool for conservation of historical sites and monuments which helps in promoting international tourism by the means of mouth publicity from the outbound tourists of India.

Travel agencies and Hoteliers should take steps to develop confidence in host community to have friendly relationships with tourists.

The itinerary of tourist should be enriched with right kind of information about domestic places and the amenities available or offered to him.

Quality of food, beverages should meet the demands, and the cuisine of Rajasthan should be promoted in the form of food-marts and especially during fairs and festivals which give access to a huge number of tourists at the same time.

Food availability at eleventh hour at food joints for the late arrivals in all the major tourist cities of Rajasthan should be administered.

General Hygiene and cleanliness is to be maintained at the low budgetary hotels also as cleanliness is next to god, and it will help in inculcating divine atmosphere for domestic tourists.

Motivation is a driving force that gives an individual the zeal to undertake a task. Taiwan has experienced success in managing its technological and other traditional sectors due to the motivation that it gives to employees. Managers are aware that the control system of running business is non-motivating to the employees (Fulton, & Maddock, 1998). They believe in giving individual responsibility for them to utilize their ability. According to Herzberg, work achievements, recognition, responsibility, and growth are motivating factors to employees. The theory is not limited to any form of culture and does not consider any. The theory of Herzberg is much applicable in Taiwan since they believe in giving individuals responsiveness (Silverstein, 2007). Taiwan believe in giving individuals the chance make use of their knowledge to explore their capability and ability. Employees have the chance to advance and grow in Herzberg hygiene theory. According to Herzberg, if the hygiene factor is taken into consideration it could help in eliminating people’s dissatisfactions. Herzberg believes that employees get responsibility based on their level of ability, which is the same principle that managers in Taiwan use. They give employees responsibility based on an employee’s level of skill and knowledge (Pophal, 2002).

Herzberg’s theory is based on the satisfying factors, which is the motivation, and the dissatisfaction factor that is the hygiene. According to Herzberg, the hygiene factor help in dealing with dissatisfactions on the side of employees or the employers. The theory states that various factors may cause dissatisfaction to the employees, which eventually may lead to poor performance. Herzberg believes that the hygiene factors that cause dissatisfaction are strict work supervision and tight company policies (Herzberg, Frederick Herzberg (Author)

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Mausner, & Snyderman, 1993). Most of the employees are unable to perform well under such conditions. They feel suppressed and unmotivated to use their skills. Managers in Taiwan are aware of the facts that employees need space to use their skills without strict supervision and need to be trusted to make decision on behalf of the company. Just like Herzberg states, that company policy may be dissatisfying, Taiwanese give their employees the chance and the stake in policymaking (Silverstein, 2007).

Herzberg hygiene theory poses challenging tasks to employees as a way of increasing their capability in utilizing their knowledge, which is a tactic used by managers in Taiwan. The managers believe in employees’ full ability utilization therefore, they give them challenging tasks so that they can use their knowledge and learn more. Additionally, Herzberg believes that appreciation is an employee motivation that helps in utilizing his ideas and skill fully. Taiwan is a soaring country as rated for it high performance. Employees in Taiwan are highly rewarded for their job improvement and excellent work performance. They get bonuses as incentives in work places, which are powerful motivators (HerzbergFrederick Herzberg (Author)

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, Mausner & Snyderman, 1993). To some extent, the hygiene factor is rough to employees that are not able to utilize their full ability. This is because Herzberg suggests that employees who are unable to utilize their skills to the fullest should be replaced. In Taiwan, most of the employees are aware of replacement facts for failure of skill and knowledge utilization therefore, go extra miles in whatever tasks they take.

On the other side, Herzberg hygiene factor recommend promotion to employees for their well performance as a way of motivation. This factor is similar to that of Taiwanese because promotion is based on the performance of an individual employee. The fact that they get promotion for their improvement and performance, employees in Taiwan are so eager to learn and acquire knowledge and skills. It is a fact that most of the employees learn through the e-learning program at their work places. To them promotion is a motivating factor that make them be always at their best. Employees in Taiwan compete among themselves to produce good results and give the best services since they know there are rewards. Personal growth and achievement according to Herzberg is important and employees in Taiwan work towards that for the short-term and long-term rewards (HerzbergFrederick Herzberg (Author)

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, Mausner, & Snyderman, 1993).

Motivation is an important aspect of work performance and result satisfaction for the organization. Therefore, it is worth studying and putting into considerations. Managers and employers should learn the behaviors of their employees and understand the motivating factor of each. According to Herzberg, motivated employees have the energy and will to be productive which, eventually help in organizational survival (Pophal, 2002). Taiwan managers are keen on the role that their employees perform so that they can motivate them. Managers understand that motivated employees perform well. The managers are aware of the fact that an increased income makes money a lesser motivator. This means that work that interest them is more of a motivator (Bruce, Formisano, & Anne Bruce (Author)

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Pepitone, 1998).

Motivation helps in eliminating tension in the work place. Managers and employees are well able to communicate and make decisions together with a clear focus. Additionally, motivation encourages employees to learn more and acquire knowledge and skill. These employees are able to stand any challenges that arise thus being competitive. Taiwan has a cross cultural in its work environment which is a very important issue of consideration because of the adjustments. This means that globally the managers should study what motivate employees across different cultures. On the other side, managers learn the best econometric models that can impart cross-cultural environments and bring satisfactions to the employees (Bruce, Formisano & Anne Bruce (Author)

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Pepitone, 1998). The motivating factor in on culture is different from another. Once companies study the motivating factors, they are able to adopt open system of management that gives employees greater autonomy.

Herzberg motivation-hygiene factors are considered over other motivation theories because it pinpoints the dissatisfying needs. The lower categories of Maslow’s hierarchy of needs are similar to Herzberg hygiene factor. The difference is that the hygiene factors lead to dissatisfaction for their non-fulfillment. Two companies were tested from Taiwan and outside. Shih and Chinerawat developed an econometric model to test the two-factor theory of Herzberg. There was sufficient satisfaction from the model, which also reviewed that, the application of hygiene factor different cross cultures (Chinerawat, 2009). Herzberg hygiene factor was reviewed to impact considerable satisfaction in the cross-cultural work setting in the companies of test. Finally, the question of what would be the impact of the hygiene factor on the Taiwan industries is crucial. This is because different cultures have different motivating factors. Employees from Taiwan and those working in Taiwan but different cultures act differently. Herzberg hygiene factor caters for all cultures because it deals with the issue of work satisfaction. These help managers to understand different cultures and appreciate them with the aim of improving the competitiveness of different employees (Chinerawat, 2009).

In conclusion, Herzberg states that hygiene factor is not directly proportional to work. That is because if bad working conditions lead to unsatisfied workers. Managers ought to understand that every individual employee is unique and is motivated differently. Taiwanese managers have learnt that money is not always a motivating factor and have sought other factors. This has led to their enormous success in the electronic fields compared to other countries. The managers have borrowed a leaf of Herzberg Hygiene factor to know what motivates and satisfy their employees. Taiwanese understand that a self-fulfilling factor increase productivity and improves performance (Chinerawat, 2009).