Category: Tourism

Executive Summary

The author intends to start and manage The Vogue Hotel in Switzerland. To this end, the hotel revenue management plan will help in efficient running and management of the business, leading to profitability. Switzerland, currently the global center for the best schools in hospitality management, will provide a great avenue for the business to thrive. The top three best hotels in the world are based in this country. As such, there is a favorable environment for the business in the long run. The industry data reveals that a four-star hotel would be the best for the market. The revenue management plan will look at the principles of revenue and yield management of the business.

Keywords: revenue management, hospitality, The Vogue Hotel

Introduction

A hotel revenue management plan is a variable pricing strategy used in the hospitality industry. It is used to counter variable changes that occur in the market. Its main aim is to offer the right room to the right customer with consideration to pricing at the prevailing market conditions. Consequently, effectiveness is achieved as future prices are already adjusted for the projected demand and trends. The rise of the internet in the 21^st century has seen the industry face new dimensions in the field. E-commerce has led to improved customer satisfaction and pricing. However, it has also resulted in increased competition in the industry (Rouse, Maguire & Harrison, 2011).

In this paper, the author looks at the revenue management plan for The Vogue Hotel, Switzerland. It is a four-star establishment located in Bern, Switzerland.

The Vogue Hotel, Switzerland: A Revenue Management Plan

Pricing

Various strategies are to be considered for the pricing of the rooms based on the prevailing market environment. To initially gain market share, low pricing will be set to enhance competitiveness. The price will later be adjusted to the premium level, which will vary based on the quality offered. Luxury will be the major determinant of the prices. The economy of the country should also be taken into consideration (Ozer & Phillips, 2012). Currently, the average index for four-star hotel prices is CHF 116.01. It will be paramount to have prices within that range. The price is projected to rise over the coming few weeks as summer nears. Demand and urgency of the customer will be the driving factors. A shorter accommodation period will attract high prices.

Inventory

The hotel management will have to look at the best way to handle the capacity as per the prevailing market conditions. In periods of high demand, The Vogue is bound to experience an increase in bookings. However, cancellations are also likely to rise. It will prompt the management to overbook to hedge out the risk. The aim is to maximize revenue. In times of low demand, lower pricing could be offered in an effort to be competitive in the market. The availability of number of rooms available in a given period should be assessed on a weekly basis to come up with relevant market prices for them (Rouse et al., 2011).

Marketing

Given the rapidly changing dynamics in the market, the management of The Vogue, Switzerland, will have to apply a variety of marketing strategies. Tailor-made marketing will be used to maximize the use of resources. The strategy will also enhance its impact on the potential clients at the given time. Price promotions with most valuable market intermediaries will lead to high sales volume. It will also lead to a decrease in prices, leading to increased demand. The internet and telephone services will be used to acquire long-term commitments (Mudie, Pirrie & Mudie, 2006). Tradeshows in the industry would also be a good avenue to market the business. It will help The Vogue to network and socialize with potential partners. The sales will also need training on their roles with great emphasis on e-commerce. Communication between the staff and customers will need to be assessed and evaluated on a daily basis to enhance the experience of the clients, leading to high sales and referrals.

Channels

The most effective method used in the market will be put into consideration first. Information may be obtained from the competitors and market data (Swish tourism, 2015). The channel to be considered would be based on the market segment. It will take into consideration the nature of the market and expected behavioral characteristics of the potential customer (Mudie et al., 2006). Resources will be properly utilized as a result of using the most relevant channels. As such, The Vogue will cut down on costs, leading to increased revenue as a result of the high sales volume. For instance, e-commerce will act as an avenue to reach out to customers indirectly.

The Revenue Management Process

Data collection

Relevant market data collection will be required to give The Vogue a guideline on how to carry out business activities. Switzerland is governed by the European Union rules. The legislations provide an enabling environment for business practices to small and new firms in the industry. Data from 2015 shows significant potential for the business under the hotel category with respect to the four star segment (Swiss tourism, 2015). The gross occupancy rate was highest in the market at 51.7%. The figure was higher than the weighted average of 44.8%. It signifies a strong demand for the product. The average daily rate stood at 48.0%, the highest in the segment. However, this was lower than the weighted average of 35.7%. The revenue per available room was at CHF 133.04, which was higher than the weighted average of CHF 116.01 (Swiss tourism, 2015). The prevailing conditions lead to a high rate of return on investment. The data collected will allow the management to forecast and develop strategies to mitigate the ever changing market conditions.

Segmentation

The management at The Vogue, Switzerland, will need to know the dynamics of the market the company is operating in. Products should be priced and designed to meet the demand of the different customers (Mudie et al., 2006). Trends in the behavioral traits of the consumers should be closely monitored. The assessment will enable the business to remain competitive while innovating new ways to meet the consumers’ ever changing needs. Sub-segmentations may also be required to evaluate the interrelation between the main product and its aids. The approach will lead to enhanced customer satisfaction and increased sales volume.

Forecasting

Forecasting entails the projection of the expected outcomes and their effects on the business (Montano, 2004). It involves both the micro and macro factors that affect the business. At the micro level, the management will budget for the projected demand to ensure flexibility and cost saving, leading to increased profitability. At the macro level, the market share of the business will indicate the activities to be considered more during a given period (Ozer & Phillips, 2012). For a low market share, aggressive advertising will be required compared to the already established businesses (Watada, Xu & Wu, 2014). At the same time, the projected market trend will have to be taken into consideration. If demand is expected to drop, competitive pricing should be put in place prior to the period so as to attract customers earlier than the competitors. The Vogue should also adopt cost saving measures, such as laying off workers (Ozer & Phillips, 2012).

Optimization

Optimization would involve the management coming up with the best factors of production at a given period with consideration to the customer. It not only leads to maximization of profits, but also minimization of the cost of production. It will help the management to set the best market prices for the different customers under the prevailing circumstances. Statistical tools will be incorporated to gain these values. Linear programming and regression analysis of the data available will provide relevant information that will help the management to make good business decisions (Watada et al., 2014).

Dynamic re-evaluation

With the ever changing market conditions, management will need to adapt to these changes. It will ensure continuity of the business alongside profitability. Adjustments on price and the service provided will need to be constantly reevaluated so as to maximize revenue (Montano, 2004). With an effective revenue management system, the firm will gain more market share by attracting corporate clients. Based on the forecast, offers could be made to them on the best available rate. It is a trend that is taking over the traditional fixed contracted rate. The rates have a higher risk as they may pose losses to the business of unrealized gains during periods of high demand (Talluri & Ryzin, 2004).

Conclusion

The Vogue is a four star hotel that is coming up in Switzerland. The revenue management plan above would help the business to establish itself in the competitive market. It will also help in the management of resources needed to expand the business.

References

Montano, B. (2004). Innovations of knowledge management. Hershey, PA: IRM Press.

Mudie, P., Pirrie, A., & Mudie, P. (2006). Services marketing management. Amsterdam: Elsevier/Butterworth-Heinemann.

Ozer, O., & Phillips, R. (2012). The Oxford handbook of pricing management. Oxford: Oxford University Press.

Rouse, P., Maguire, W., & Harrison, J. (2011). Revenue management in service organizations. New York: Business Expert Press.

Talluri, K., & Van Ryzin, G. (2004). The theory and practice of revenue management. Boston, Mass.: Kluwer Academic Publishers.

Watada, J., Xu, B., & Wu, B. (2014). Innovative management in information and production. New York: Springer.

Swiss tourism in figures 2014: Structure and industry data. (2015). Web.

Traveling to other nations as a tourist is usually exciting as you get to observe different cultures and people. The experience is usually worth it as the widening of perspective is a good exercise. The sheer amount of tourist destinations worldwide is a hurdle for would-be tourists and sightseers. How do you choose where to go? How much is your budget? The specifics differ from person to person, as does the choice of destination. For history lovers, a place of significance in history is usually the top pick. For those of us with less academic interest, places with plenty of fun to offer are where we usually go. For tourists of all kinds, Peru is a wonderful destination.

Peru is a nation situated in South America that is a popular tourist destination due to its numerous attractions. The colonial and historical significance of buildings and citadels is just breathtaking. It may well be your favorite place to visit should you decide to sightsee the world. There is something for everyone, from nature lovers to just plain old lovers. The countless activities that can be done in the country during sightseeing easily put Peru at the top of your list of places to visit. The budget required to have a great time is flexible and usually small as you can opt-out of various activities if you desire to save money on the trip and trim the budget.

The majority of people’s imaginations conjure up images of beaches and oceans when they hear of tourist destinations, and it is there the journey is started. The Paracas National Reserve lies about 250 kilometers south of Lima, the capital of Peru. The reserve provides a wide variety of wildlife, such as seabirds and seagulls. The sheltered beaches on the reserve offer a fantastic way to relax and have a wonderful time with your friends. Swimming and surfing are fun, popular pastimes. The rocky islands located within the reserve, together with the marine ecosystem, make it a very romantic spot and one to take your loved one to should you decide to have some quality time together during sightseeing.

Lima is next on the list as it offers a return to past civilization. Various colonial buildings and cathedrals adorn the city. The nightlife is an experience any city-bred person would appreciate with its assortment of bars, restaurants, and street food. The beaches located to the north and south of the city offer a great relaxing spot as you contemplate your next destination. Cities are usually a way to experience a people’s spirit and culture, and Lima is no exception. The rich variety of experiences you will gain from its tour is sure to keep you hooked on the country. The hotels available also cater to people of all kinds and offer outstanding customer service.

Peru is full of historic sites, and the most famous is Machu Picchu, a 15th-century Inca citadel. This limestone marvel is located high up on a plateau in the Amazon jungle, some 2400m above sea level. This impressive heritage site is one that even the conquistadors never reached. What an achievement! Getting to experience ancient architecture is a great way to understand how people in the past lived, and Machu Picchu provides that (Baumhackl, 2019). The trip, which can either be self-guided or guided, is full of insights that are bound to shock you. It also offers a great way to have fun with friends and families as tours can be catered to a group.

A road trip to Machu Picchu is a great way to see the county’s natural riches as it traverses forests and plains. The option of a trek is also available to those who would like to experience the scenery on foot. It is highly advised to visit the Machu Picchu between May and September since the other seasons are usually rainy and could hamper your progress should you decide to trek. This is usually fantastic for groups of friends or honeymoons as you get to make many memories on the 4-day trek across the region to Machu Picchu. The chance to experience nature in its most pristine form is one that you would be hard-pressed to find anywhere else.

To the deserts now, shall we? Located just 5 hours away from Lima lies Huacachina. The only desert oasis in all of South America. The variety of activities to perform in Huacachina is simply amazing. The popular ones are sandboarding and dune buggy. It is like snowboarding, only on sand. Despite its location in a desert, Huacachina is a very romantic spot with various resorts and inns to cater to your every need. People looking to enjoy themselves on a water body are also in for a treat. It is also very close to Paracas National Reserve, ideal for water activities and lazily relaxing on the beach.

Tired of sandboarding, eh? Let’s go hiking then! And as usual, Peru has a thing to offer for adventurous spirits. Taking a hike to reach Huaraz, a town perched on the majestic ranges of Cordillera Blanca, is sure to leave you feeling like explorers of old. What with the dinosaur footprints and prehistoric cave art beckoning you to quench your thirst for prehistoric mysteries. The hike offers an enjoyable experience for all kinds of hikers, from casual ones to serious mountaineers. Earthquakes are a norm in these parts, which has caused them to be rebuilt several times. Who knows? Perhaps the resilience of the townsfolk could rub off on you. Maybe you’ll come out wiser and more patient.

Now, on to the great Amazon rainforest! Fifty-five kilometers west of the Bolivian border is a city located at the confluence of two rivers. Puerto Maldonado, once only accessible by boat, is now a haven for tourists of all breeds. The close brush with nature is sure to leave you tasteless for civilization. The activities one gets to engage in include kayaking and zip-lining, which are very popular in this area. The option of a night tour of the jungle and a Monkey Island visit is definitely one to consider. For the bird watchers, parrot watching is offered—definitely a magical experience.

Another rich historical city and one-time capital of Peru is next on the list. Arequipa, which is set in the shadows of three volcanoes, is a sight to behold. The city is full of ancient mansions and Spanish colonial churches, combined with the Peruvian building traditions to create a unique architectural feel known as Escuela Arequipena (Luciano, 2017). The classy hotels and earthy lodges located in the city are excellent for relaxing as you tour the city. To get a glimpse of the unique architecture, visit Santa Catalina Monastery and the neoclassical Basilica Cathedral south of the city.

A tourist’s visit to Peru would be incomplete without visiting Cusco, which was once the epicenter of Incan power. The city’s rich history is evident from the glorious Spanish churches to the crumbling remains of the city’s once-powerful ancient masters (Blanco & Hancco, 2020). The cottages of Barrio de San Blas, which are full of Incan treasures underneath their floors, are bound to make one feel the ecstasy of a pirate finally finding a lost treasure. The various sightseeing opportunities in the city are definitely a reason to visit it before ending a vacation. The exit of the city offers a view of Peru’s famed cloud forests, which are glorious.

In conclusion, traveling to a country and seeing its heritage is usually a significant endeavor. Lounging somewhere and sipping cocktails is sure to make one feel good but not satisfied. Taking a tour at night of the Amazon jungle, on the other hand, is bound to make an individual feel accomplished and satisfied. The vast choices available to tourists visiting Peru are both a blessing and a curse as it makes it hard to figure out where to go next. However, knowing beforehand what one wants to do and the constraints of their budget is going to help them out

of analysis paralysis.

References

Baumhackl, H. (2019). Peru land of the Incas. A tourism destination on the rise. Tourism & Hospitality Management, 7(2), 95-116.

Blanco, L. F. L., & Hancco, R. W. M. (2020). Modeling and forecasting international tourism demand in Puno-Peru. Revista Brasileira de Pesquisa em Turismo, 14(1), 34-55.

Luciano, P. A. (2017). Neoliberal reform in Machu Picchu: Protecting a community, heritage site, and tourism destination in Peru. Lexington Books.

Goal Beach resort is designed as a world class five star hotel with the aim of redefining the hotel industry in Mauritius. Extensive market research reveals a market gap in the provision of hotel services for the aristocrats (football stars such as Didier Drogba, Wayne Rooney, and Ji Park Sung; top CEOs, executives and the world’s richest such as Steve Jobs, Larry Page, Jerry Yang Warren Buffet; actors like Angelina J, Will Smith and Megan Fox) in Northern Mauritius. In addition to these they are deprived of choice as most hotels are built with the same business models. Goal Beach Resort intends to capitalize on the 2010 FIFA World cup to be staged in South Africa later in the year, as the preferred resort for the nobles.

Facilities and services to be offered shall include 10 international status bungalows and villas, swimming pools, gyms, sauna, tennis courts, live music shows and entertainment. Meals will also be served daily with 24-hr security surveillance.

The proprietors are Dubai based investors (the Rene Db group) made up of seven United Arab Emirates nationals. Their long experience in business ideas identification and recruitment of personnel make them suitable to be directors of Goal Beach Resort. Abdul Saif, a retired executive of the group’s largest resort in Malaysia, has worked as the overall deputy director in the Datai, Malaysia (one of the best beach resorts in the world). He will serve as the director general owing to his previous experience. The wide investment base from Rene Db Group enables it to select an experienced management and other staff across the board to work in this new establishment.

Business objectives

Goal Beach Resort intends to capitalize on the 2010 FIFA World cup by providing hotel services to the high end class participants; this will also form its market afterwards. To achieve this, it will curve out a niche in the market as a Resort of choice in Mauritius and earn maximum returns. It also aims to provide consumers with an alternative of choice to make in picking a resort.

Vision and mission statement

The mission of the firm is to become the preferred resort in Mauritius for the high-end class of tourists, local delegations and individuals by offering superior unrivalled facilities, products and services. The firm will help set standards in the hotel industry and in turn, satisfy different customer tastes and preferences.

The hotel industry in Mauritius

Mauritius has become a large tourist destination owing to: its prime location, existence of a range of unique beaches and increased marketing by local agencies and authorities through online portals. In addition to these the use of tour operators as marketers has significantly strengthened the tourist industry. Previously, Mauritius used to be a French tourist destination. However, with marketing, tourists have been arriving from other destinations including England, Australia and South Africa. Other drivers of the growing popularity of this newly found holiday destination are, the friendly nature of the Mauritian people, the beautiful landscapes, the natural vegetation with over 700 species of native plants and the circumnavigation of the island by miles of coral reefs, with the beauty and elegance of nature at its purest form (MTPA tourism Office para 2).

Owing to this expansive tourist industry, Mauritius has experienced tremendous growth in the hotel industry. The existing hotels can depict the high demand for accommodations in the island. The industry has attracted both local and international investors. International investors can be seen by the presence of international hotel chains for example the Le Coco Beach Hotel of the Sun international Hotels. The hotel industry is structured to cater for different types of customers. The hotels range from simple bungalows to 6 star hotels. However market research in the Northern part of Mauritius revealed that customers are not offered with varieties to choose from, as most hotels have similar structures and offer the same services. Similarly, there is little or no focus on the top class of consumers. This gap has led to loss of income for the hotel industry and the Mauritian government where consumers have sourced for these services elsewhere, for example, the nearby South Africa.

With the upcoming FIFA World cup in mind, the consumers’ deprivation of choice and the existing market gap in provision of hotel services to the upper class, Goal Beach Resort will try to use this opportunity to grow. It will capitalize on these deficiencies and market problems to redefine the whole industry.

The core aspect to focus on in order to achieve success in this industry is the ability to establish operational advantages that are superior to the competitors. This will be attained through provision of world class services, marketing and innovation. Goal Beach Resort will take advantage of the investor friendly tax rules and environments in Mauritius.

There are highly favourable tax incentives with intentions of making foreigners to acquire property rights in Mauritius (According to MTPA tourism Office para 2). Some of the tax incentives include waivers of double taxation on foreigners. Similarly, Mauritius has experienced an annual growth rate of 5% over the last five years.

Market Analysis

Goal Beach Resort shall undertake a study on the market feasibility of the upper class oriented beach resort in Northern Mauritius. Market variables to be focused on in this research are the goods, services, facilities, consumers, competition, size of the market and its trends through primary and secondary research means.

Market size and trends

In view of the changing trends and market dynamics, the firm will undertake a study of these aspects with a bias on the 2010 FIFA World cup. It is expected that the number of tourists will multiply infinitely during the event to premier in Africa in June. Official reports from Mauritius tourism authorities, indicate that FIFA organs responsible for accommodation have been tasked with outsourcing 6,400 beds in Mauritius during the world cup period.

Required are high class accommodations owing to the high standards of life that football stars and tycoons live. This means that the 6,400 beds will be out of reach for ordinary customers. Accordingly MTPA tourism Office says that 20, 000 visitors are expected to source for accommodation in Mauritius. Goal Beach Resort expects to attract a considerable percentage of the total revenues expected from this arrangement. (MTPA Tourism para 3-5)

Goal Beach Resort also expects to curve out a niche from the world cup experience. In order to ascertain the demands and needs of the world cup community, primary research will be carried out through online surveys and interviews from potential and actual participants. Customers who will be accommodated during the sporting event will be indirect marketers and advertisers who will come through referrals and come-backs.

The ever busy tourism market, which is also expected to grow further, will provide an impetus of growth for Goal Beach Resort after successfully accommodating the world cup community.

Consumer market research

The impetus behind the idea of establishing Goal Beach Resort is satisfaction of the neglected consumer demands. The fact there is a high demand will guarantee success of the venture. However, it is important to redefine consumer demands for maximum results. This calls for market segmentation of the expected customer base, and a segment by segment analysis which needs to be carried out.

The first group here will be the aristocrats. This group is of great concern as its expected to form the future market for the resort. Its composed of ; world football stars: Wayne Rooney, Didier Drogba, Ji Park Sung; Top CEOs, executives and the world’s richest people: Steve Jobs, Larry Page, Jerry Yang, Warren Buffet; Actors: Angelina J, Will Smith and Megan Fox; Presidents, and high level diplomatic delegations. In order to fully understand the needs of this class, Beach Goal Resort will utilize the experiences and services of the Director General, Abdul Saif to develop the best suited goods, services and facilities. He will be in-charge of a panel which will evaluate their spending behaviors, patterns, inference their findings and make recommendations.

The second group of consumers will be the world cup fraternity. This is made up of football delegations composed of players, coaches and their technical benches, heads of state, and ultimately the spectators. Spectators will form the bulk of this group. This research will determine the consumption patterns and their decision making process through expert surveys in order to influence these patterns.

The goods, services and facilities Research

This resort is built to serve the needs of the nobles. It will be providing all facilities, goods and services provided expected of an international five star hotel. A research will be carried out to determine the changing attitudes, likes, tastes and preferences and emerging trends in the five-star hotel sector. The sector will need to come up with new innovative services and facilities which is necessary in satisfying the market. New innovations will ensure that the resort is unique as opposed to reproducing hotels models, similar to the present ones

Competitor analysis

In order to ensure that the resort is not driven out of business, a competitor analysis will be carried out prior to entry. The will involve a strength and weakness analysis of the hotel and that of its competitors (Forbes para 2-3)

Table 1.0

Financial Feasibility

Start up Costs

The initial costs required to set up Goal Beach Resort are listed in table 2.0 below:

Table 2.0

The total funds required are SR 39, 080, 000. The firm will be looking for loan that it will use to start the business. The loan will be repayable within 5 years at 8% p.a. But later on it will be converted into equity.

Operating Expenses

These are grouped into fixed costs that are independent of production and business status; variable costs dependent on scale of production. A detailed analysis is provided in the table 2.1 below:

Table 2.1

Firm’s projected cash flow analysis

In view of the 2010 FIFA world cup, and unsatisfied market demand the firm projects a positive favorable cash flow during the event. This world cup is expected lay a good foundation for future operations. The firm has projected a positive cash flow. A positive flow of profit is expected as a result of mass participation in this event.

However, earnings are expected to fluctuate in the period after the world cup but improve after the world cup fever is due and over. Online marketing coupled with on-the-ground ads in world cup venues is expected to boost sales from the first day on. Most of the internationally acceptable forms of money remittance will be utilized (FAO Corporate Document Repository n.d.)

Table 2.2 is a Goal Beach Resort cash flow

Goal Beach Resort Pro forma Income statement

Table 2.3

Table 2.4: Goal Beach Resort Pro- forma balance sheet analysis for year 1 SR

Loan repayment

As an upstart, partners will borrow a loan of SR 28 M which will be later converted into equity. The loan will attract an 8% p.a., simple interest. The business will operate as it repays the loan since from the forecasts business will continue improving year on. The earnings will be used to come up with more innovations and fund expansion.

Risk analysis

The underlying assumption behind all forecasts is that the 2010 FIFA world cup has the capacity to create supernormal changes in demand. Additionally, the proximity of Mauritius from the host nation South Africa , in addition to South Africa’s inability to accommodate all participants is another potential benefit for this venture. The aim is to capitalize on this demand to achieve our competitive advantage. Consequently, the risk of failure on start up is eliminated due to this certain spurt in demand. Major competitors are not readjusting any of their business strategies. This gives the firm a grace period to establish, before competitors re-brand. These will help to eliminate the barriers to entry. In addition, the government rules are investor friendly with no looming political or economic uncertainties. The business will likely rebound after the world cup as it heads to December. During the months from November to December business picks up as there is a lot of holidaying that takes place.

Works Cited

Constance Prince Maurice. Latest Special Offers. 2007. Web.

FAO Corporate Document Repository. Conducting a feasibility study, n.d. Web.

Forbes. Home Page for the World’s Business Leaders. 2006. Web.

MTPA Tourism Office. Discover Mauritius. 2010. Web.

Oberoi Hotels & Resorts. The Oberoi Mauritius overview. 2009. Web.

The aim of this study has been to examine the prevalence and impact of unbalanced working hours to reward ratio in the hotel sector. To meet this research aim, three objectives were developed. The first one was designed to understand the relationship between working hours and financial compensation received by employees in the hotel sector and the second one aimed at identifying the influence of unbalanced working hours to reward ratio on employees’ perceptions of organizational justice. The third one was to estimate the prevalence of unbalanced working hours to rewards ratio in the hotel sector. Using a quantitative research approach and collecting data from 112 respondents in a survey, the findings revealed that there was no relationship between working hours and financial compensation. Additionally, the researcher did not find evidence indicating that the influence of unbalanced working hours to reward ratio influenced employees’ perceptions of organizational justice. Furthermore, the evidence gathered in the study indicated that wage differentials were not widespread. These findings are inconsistent with the extant literature, which suggests a correlation between working hours and financial compensation.

Introduction

Maintaining an active and energized workforce is one of the most important roles of management. However, for most organizations, this is a daunting task because existing motivation strategies pose different results based on the industry involved. The hotel sector is one of the most significant tenets of the global economy because it employs millions of people around the world (Brotherton, 2015). Characterized by different players in the sector, their varying scope, nature, and size have forced them to adopt different rewards strategies to motivate employees. Therefore, paying attention to the efficacy of these strategies in bolstering workplace performance is important for the hotel industry because it is largely a service-oriented sector, and performance is based on employee motivation (Rosemberg & Li, 2018). This statement implies that quality is a key performance indicator for the sector owing to its importance in improving customer experience. Based on the need to provide high-quality services to customers, the importance of understanding the efficacy of employee reward strategies is of critical importance to the industry.

Different organizations motivate their employees using unique and adaptable ways to improve productivity. However, financial motivation outweighs other alternative strategies adopted by managers to energize their employees to improve their productivity. This type of HRM strategy is based on the assumption that employees would perform better if they get increased financial rewards (Boella & Goss-Turner, 2020). Therefore, the entire reward system is pegged on the provision of monetary gains for good performance. These kinds of rewards primarily involve money, but they may also include other aspects of its use, such as bonuses, commissions, and fringe benefits. Relative to this assertion, research studies have shown that financial rewards are directly correlated with improved levels of job satisfaction and security (Boella & Goss-Turner, 2020). Additional evidence suggests that better financial remuneration is associated with low levels of employee turnover and better recruitment opportunities (Tanwar & Prasad, 2016). These benefits are linked to enhanced organizational success because managers can retain knowledge and experience by having a motivated workforce. Consequently, such organizations allow their employees to become more stable in their work as they familiarize themselves with it because of staying with the company for a long time. Additional research evidence suggests that employees who earn enough money to cover their basic expenses and save for the future are unlikely to serve notice to their employers to vacate their positions because they will be contented with their work (Rosemberg & Li, 2018). This way, they are likely to save themselves the hassle of looking for a new job. Similarly, their employers save the time and resources needed to look for a replacement.

The aforementioned advantages that are linked to improved employee performance stem from the understanding that financial rewards signal to employees that their employers care about their wellbeing. Money is also a recognition of the value of work they put in their respective fields of operation. The association between these positive aspects of employee perception and work output has been linked with the view that money is a driver of employee performance and organizational change (Boella & Goss-Turner, 2020). Stated differently, the more a business makes revenue, the higher the chances that its employees will improve their performance. Therefore, those who feel valued work harder than their counterparts who do not expect any financial benefits because they believe that their work would ultimately create conditions for the improvement of the company’s overall financial situation.

The concept of organizational justice emerges from the above analysis within the context of how employees perceive compensation policies adopted by an organization as being either morally, ethically, or legally right. Broadly, this idea has been used to explain perceptions of fair pay, equal opportunities for promotion, and employee recruitment processes. The concept of organizational justice will be extensively mentioned in this paper to mean perceptions of fairness regarding a company’s reward policies. This concept is often compared to corporate social responsibility, which refers to how firms interact with their external partners (Lee, Kim, Son, & Kim, 2015). Therefore, in the context of this study, organizational justice will refer to how companies treat their internal partners – employees. In this assessment, employees make judgments about how their superiors should treat them based on how they are compensated for their work. These perceptions ordinarily result in attitude and behavioral changes among employees, which may ultimately affect organizational performance.

Rationale of Study

Financial motivation is an important determinant of employee productivity. However, significant wage discrepancies between high-ranking employees, such as managers and supervisors, and low-skilled workers have made it difficult to operate optimally. These wage gap discrepancies emerge in different ways. For example, there is a significant income disparity between employees in developed and developing countries because workers in the latter group could out-earn their counterparts in developing nations several times over (Artazcoz et al., 2016). Wage discrepancies have also emerged among genders, as women tend to earn lower wages compared to their male counterparts in several job groups. For example, researchers estimate that women in the hotel industry earn about 18% less than their male counterparts do (Witts, 2015). The pay divide gap is also evident in several other demographic groups, such as among older and younger employees, as well as across industries because they represent the same pattern of wage earnings.

Although pay gap inequalities continue to persist in many economic sectors, its effects on companies that operate in the hotel industry may be more extensive and impactful because of the important role that services play in contributing to customer satisfaction. Research studies suggest that the industry is in the top ten list for promoting wage gap inequalities (Brotherton, 2015). Typically, low wages, low levels of educational attainment, and high employee turnover characterize the employment and labor environment in the hotel industry (Joo-Ee, 2016). Ironically, employees who are the least paid also get to interact with customers more than their superiors do, thereby creating an opportunity for customers to feel disgruntled from poor services that originate from underpaid workers. Additionally, low-skilled employees spend more working hours in the organization compared to their managers. This statement brings to the fore the need to understand rewards policies relative to the hours employees work in an organization. Relative to this discussion, the following research objectives will be pursued in this study.

The main gap in literature justifying this study is the failure of researchers to link wage gap inequalities and the concept of organizational justice. In this regard, managers have an incomplete picture of the overall effect of their remuneration policies on employee performance because they fail to understand how it is linked to workers’ perceptions of fairness. Consequently, they fail to understand the influences of organizational justice as a subjective phenomenon affecting performance. Similarly, the failure of researchers to link wage gap inequalities and the concept of organizational justice has made it difficult to get a comprehensive view of the effects of employee behaviors and attitudes on a firm’s productivity through their perceptions of fairness and justice. By addressing this gap in the literature, it would be possible to have a broader understanding of the main factors influencing performance at individual and group levels, based on their perceptions of organizational justice.

Aim

This study aims to examine the prevalence and impact of unbalanced working hours to rewards ratio in the hotel sector. This research aim is linked to the research problem, which highlights wage inequalities in the industry.

Objectives

Stemming from the research aim described above, three objectives will guide this study and they are outlined below.

1. To estimate the prevalence of unbalanced working hours to rewards ratio in the hotel sector
2. To quantify the relationship between unbalanced ratio of working hours to rewards ratio in the hotel sector
3. To measure the effects of unbalanced working hours to reward ratio on employees’ perceptions of organizational justice in the hotel sector

Literature Review

This chapter contains an evaluation of existing literature addressing the research topic. To recap, this investigation aims to examine the prevalence and impact of unbalanced working hours to reward ratio in the hotel sector. To address the scope of this statement, three objectives will be pursued. The first one is to understand the relationship between working hours and financial compensation received by employees in the hotel sector. The second one is to identify the influence of unbalanced working hours to reward ratio on employees’ perceptions of organizational justice and the third one is to estimate the prevalence of unbalanced working hours to rewards ratio in the hotel sector. At the end of this chapter, the researcher will highlight the conceptual framework for conducting this investigation and interrogate existing literature on the research topic.

Rewards in the Hotel Sector

Reward policies adopted in the hotel sector continue to highlight wage inequalities that exist in the industry. Several research studies have been conducted to address this problem. For example, Casado-Díaz and Simón (2016) did a study in Spain, which is a leading hotel sector in Europe, and found that wage gap inequalities in the market disproportionately affected low-skilled workers and those who have lower education levels. Therefore, employees who have low skills, education qualifications, and experience generally occupy low-ranking positions in the sector, which, in turn, attracts lower wages. These findings were obtained after collecting data from a longitudinal study that occurred between 2002 and 2010 (Casado-Díaz & Simón, 2016). Within this period, the researchers found out that workers who suffer from these problems are often dispensable and that is why they rarely get fair compensation for their work.

Additional research studies have tried to draw a link between the low wages of unskilled workers and their poor standards of living. However, a majority of the body of evidence suggests that low wages are inherently linked to low standards of living (Tanwar & Prasad, 2016; Casado-Díaz & Simón, 2016). In other words, the findings suggest that workers are paid low wages because their standards of living are equally low. Conversely, the reverse is also true because it means that those who are paid higher wages benefit from this policy due to their higher standards of living. These findings also suggest that wage differentials could largely be explained by standards of living, but this reason is not sufficient to explain the extent of wage disparities in the hotel industry. This finding further suggests that wage inequalities also exist between workers in the same job category but living in different cities.

Based on the aforementioned statement, employees who live in some of the world’s major capitals are likely to struggle to make a living if they are paid low salaries compared to workers who live in villages or cities that have a low standard of living. These findings mean that wage inequalities vary across different job groups and are likely to be more poignant and impactful to workers in low-level jobs or those who live in areas that have a high cost of living. These categories of workers are also likely to exhibit low performance because of wage inequalities. Overall, these findings were obtained after sampling the views of respondents who were spread across 97 job groups in 67 cities around the world (Sturman et al., 2017). Therefore, the findings highlighted above are comprehensive and could be broadly relied on when making comprehensive rewards policies.

Importance of Working Hours to Rewards Ratio

The relationship between working hours and rewards ratio has largely been ignored in extant literature. However, there has been a big body of evidence explaining the role of rewards on employee performance, burnout, and turnover; with a majority of the research indicating that employees who get paid low wages stand a higher likelihood of performing poorly by providing low-quality service. Nonetheless, the larger debate regarding the importance of working hours to rewards ratio can be best understood by understanding employee wellbeing and their perceptions of organizational justice. The relationship between employee performance, working hours, and rewards ratio has been established in many research studies, including those of Kim et al. (2020), Pradhan and Jena (2017), but the same association has not been effectively addressed in studies that focus on the hotel sector. Indeed, most of the evidence gathered in this area of research has mostly been domiciled in the health or public service sectors. For example, a study by Ryu (2016), which sampled the views of 186 South Koreans investigated the relationship between working hours and age differentials and found out that most employees who clocked many hours at work but got little pay, had a lower sense of wellbeing compared to their counterparts who worked fewer hours and received better pay. This type of employee is likely to suffer from a high sense of dissatisfaction compared to their satisfied counterparts.

Studies that have investigated the same phenomenon in the health sector have come up with similar findings. For example, Roxo et al. (2020) and Nightingale (2019) conducted similar investigations in Europe after sampling the views of 20,000 participants drawn from a mixture of low and high-income countries and found out that most employees who worked long hours and did not receive pay commensurate with their contribution suffered poor health. This situation was found to be true for both male and female employees but was more impactful in countries that respected family values compared to those that had liberal policies. Collectively, these findings support the view that most employees who work long hours and receive low pay have poor well-being. To this end, the quality of their work may be undermined because of low job satisfaction levels. Again, organizational performance is likely to be undermined this way.

Relative to the above assertion, organizational justice affects the relationship between extended working hours and corporate performance by influencing the perception of employees regarding their contribution to an organization. It is particularly relevant to the problem of unfair wage differentials in the hotel sector because it refers to how workers develop their views about fairness in the workplace (Imran et al., 2015). For example, employees who work long hours and do not receive fair pay are likely to perceive a company’s reward system as being unfair. In this characterization of workplace performance, a negative perception of organizational justice is likely to have undesirable connotations on an organization’s brand and performance. Relative to this assertion, Imran et al. (2015) sampled the views of 300 Pakistani workers in the hotel industry and found that negative perceptions of organizational justice have a deleterious impact on productivity. Stated differently, organizations perceived as being unjust experience lower levels of profitability and service delivery compared to those that were mindful of fairness in the workplace.

Similar studies done in Asia have also arrived at the aforementioned conclusion because they affirm the relationship between poor perceptions of organizational justice and performance. Particularly, the concept of distributive justice has influenced how workers see their employers’ compensation policies (Ugaddan & Park, 2019). The main points of reference are perceptions of trust, commitment, and motivation, which are significant to the overall development of the notion of organizational justice. This statement means that an unbalanced relationship between working hours and rewards affected employee commitment, thus decreasing organizational performance.

Efforts-Reward Imbalance

The International Labor Organization (ILO) characterizes the imbalance between employee input and reward as a form of discrimination. Particularly, it identifies low-skilled and uneducated workers as being the most affected (ILO, 2020). It also points out that women are the most affected demographic in both developing and developed nations. Therefore, the imbalance between efforts and rewards means that discrimination is being embedded in the workplace. Mainstream researchers have taken a different approach to study the efforts-rewards imbalance with a vast majority of them suggesting that the unbalanced relationship between working hours and wages is symptomatic of the types of jobs employees choose to do (Shuck et al., 2017). Mainly, their argument is predicated on the understanding that the relationship between efforts and rewards can be explained within conventional tools of economic theory.

Different researchers have further explored the imbalance between efforts and rewards using power relationships that exist among employees and employers. Those who have adopted this line of reasoning argue that the labor market is a neutral force in countering the unbalanced power relationship between the two parties (Prasad, 2019). Therefore, labor-based policies can only act in strengthening or weakening these power relationships but do not fundamentally change the way they work. Additionally, managers who exercise these power relationships act according to traditional norms and procedures governing employee-employer relationships and are generally slow in adopting new ideas to improve employee welfare (Iddagoda & Opatha, 2020). It is in these traditional power relationships that pay differentials exist and have thrived for a long time.

This system of inequality supersedes the normal classification of discriminative policies in the workplace because, typically, an employer bases the traditional metric of defining discriminative practices on the presence of unequal treatment of employee groups. However, in the context of this discussion, the imbalance between working hours and remuneration is systemically embedded in the power relationships between employers and employees. In other words, the traditional forces of employer-employee relationships are, to an extent, implicit in supporting unfair rewards systems because the pay is pegged on value and the current remuneration system is based on traditional notions of value. This statement means that different types of labor have varied perceived value from the employer’s perspective. Thus, possible new conceptions of employee value are ignored in several organizations and by different groups of managers because they rely on traditional power relationships where the employer is always dominant. Therefore, instead of eliminating all forms of bias in an organization’s pay or reward system, the determination of wages is seen as a political and institutional process pegged on traditional conceptions of value.

The traditional imbalance of power between employers and employees contravenes fundamental principles of the ILO, which suggests that human labor should be deemed different from other types of commodities because it is provided by human beings who have feelings and can make their judgments about situations. Therefore, pay should not only be seen as a form of compensation for the value of work provided by workers but also a tool for sustaining livelihoods and families. Additionally, wages offered by managers are not only a basis for compensating employees for their work but also a tool for developing social constructs through which identities are reproduced. This reasoning has birthed the concept of wages as a social practice and it is linked to one of the fundamental principles of this study – organizational justice

Conceptual Framework

Based on the insights highlighted above, the conceptual framework highlighted in figure 2.1 below explains the modalities and framework for synthesizing the findings of this study. According to the diagram, the relationship between working hours and rewards ratio will be evaluated through an assessment of employee wellbeing and perceptions of organizational justice. These two aspects of performance will be further reviewed to understand employee performance and ultimately organizational output as highlighted below.

Summary

This literature review suggests that the relationship between working hours to rewards ratio is complex and characterized by subjective and context-specific factors that influence how employees construct ideas about organizational justice. However, the findings presented in this section of the paper are anecdotal and not specifically grounded in the hotel industry. At the same time, researchers have made minimal attempts at linking unbalanced working hours, age inequalities and organizational justice. Furthermore, the findings presented by other researchers regarding employee remuneration are too broad to make any sensible conclusions about the relationship between working hours, fair compensation, and organizational justice. Additionally, the evidence espoused in this report is not sufficient to explain the extent of wage disparities in the hotel industry. Consequently, there is a gap in the literature, which will be explored in this study because the present research seeks to understand the relationship among all the three elements of HRM performance. The techniques adopted by the researcher in undertaking the investigation are discussed in chapter three below.

Methodology

This chapter highlights the methods and techniques used by the researcher to meet the objectives of the study. Key tenets of this analysis will explain the research approach, design, philosophy, data collection processes, and analysis methods used in the study. Additionally, in this chapter, an explanation of the sampling procedures, ethical processes followed and limitations of the study will be outlined.

Research Philosophy

The philosophy underpinning a research investigation is dependent on one’s understanding of how data should be collected and analyzed. According to Patten and Newhart (2017), there are four main types of philosophies used in research studies. They include pragmatism, interpretivism, positivism, and realism. In this investigation, the positivism research approach was used in the study because the study aims to understand the relationship between working hours, wage differentials, and its impact on organizational justice. The positivism research approach was appropriate or this investigation because it presupposes that the social world can be evaluated and understood objectively. Using this line of reasoning, the researcher becomes a “scientific tool” aimed at investigating a research phenomenon without imposing personal values. Based on these characteristics, the positivism research philosophy underpinned this research investigation.

Research Approach

There are two main research approaches used in academic studies, qualitative and quantitative techniques. Researchers who intend to measurer numeric variables use the quantitative method, while qualitative research is often adopted in investigations that have subjective variables. Based on this classification, the quantitative research technique was selected for use in the current study because the research variables were measurable. Furthermore, the technique aligns with the nature of the research topic, which is similarly quantitative as it focuses on wage differentials. The qualitative research approach could not have been used in this investigation because the research objectives were quantitative in nature. For example, the need for measuring and quantifying relationships between and among variables was a quantitative process, which required a research approach that had similar characteristics.

Research Design

The research design selected for this study aligns with the aforementioned research approach. According to Stokes (2017), four main types of designs are associated with quantitative investigations: descriptive, correlation, quasi-experimental, and experimental. The correlation research design was selected for use in this study because it helped the researcher to determine the extent of the relationship between variables. The nature of this study is consistent with this design because the study aims to examine the prevalence and impact of unbalanced working hours to reward ratio in the hotel sector. The correlation research design is appropriate to use in such type of an investigation because it is equipped to establish relationships between or among variables. Using statistical data, this type of research design is equipped to recognize trends and patterns in data, which will be used to meet the research objectives.

Data Collection

The data collection process highlights mechanisms used by the researcher to obtain information from respondents. Based on the nature of evidence to be collected, data relating to the research was gathered using questionnaires and sentiments measured using a five-point Likert scale. The justification for using the survey method to collect data is enshrined in its widespread use in business-related research studies. The simplicity of surveys and the ability to collect large volumes of data were also other motivators for using the technique.

Sample Population

The researcher initially sought the views of 300 workers who were sourced from hotels. However, in one organization, management prevented workers from taking part in the survey because doing so would have contravened specific provisions of their contractual agreements. This problem reduced the number of remaining participants to 198. A further 56 respondents did not submit their questionnaires on time for review and were unreachable on phone, thereby reducing the count to 142 informants. A further 30 respondents submitted their questionnaires but the documents contained missing or invalid data. Therefore, they were eliminated from the study. These events led the researcher to remain with 112 complete and valid questionnaires, which formed the basis for the development of this study’s findings.

Sampling Technique

A sampling technique defines the framework for selecting respondents who took part in the investigation. The simple random sampling method was used to select respondents who took part in the study. It was adopted because of its objectivity in data collection. In other words, it is free from a researcher’s bias because every respondent who took part in the study had an equal chance of taking part in the investigation. Therefore, the simple random sampling method was justifiably used in this study because of its objectivity in recruiting participants. Kara (2015) supports its use in quantitative studies that involve a large number of respondents because it gives each employee equal probability of opportunity to take part in the research. Therefore, the context of the study was a significant motivator for the use of the above-mentioned sampling method because the research study was relevant to the hotel sector, which is an extensive industry to cover. Thus, the main motivation for pursuing this sampling strategy was to minimize researcher bias in such a context.

Data Analysis

Data was analyzed using the Statistical Packages for the Social Sciences (SPSS) software – version 23. This data analysis technique was used in this study because other researchers and professionals have successfully employed it while undertaking similar data analysis processes. For example, Denis (2018), Wilson and Lorenz (2015) say that government agencies, marketers, data miners, and even companies that conduct surveys for corporate clients extensively use the software to perform market research. Stemming from the use of the SPSS software described above, descriptive and correlation analysis tools were used to analyze quantitative data.

Ethical Considerations

The integrity of a research process is partly protected by the ethical principles that guide it. The ethical implications of a study refer to the conduct of researchers in the course of undertaking their studies. In line with this view, Ababneh et al. (2020) and Petillion et al. (2017) say that addressing the ethical considerations of a research study is an important step in reducing bias and improving compliance with relevant laws and policies governing research investigations. Particularly, the use of human subjects in research demands that a researcher protects and respects their rights throughout an investigation. Petillion et al. (2017) support this view by saying that studies involving human subjects are often subject to ethical considerations to protect the rights of informants. To this end, several ethical considerations were observed in the study. Key among them was the need to protect the privacy of respondents who took part in the investigation and obtain their consent to be recruited in the study. Therefore, all the participants who took part in the research did so voluntarily.

The researcher also provided the informants with information relating to the aim and objectives of the study to get sufficient data for making an informed decision on whether to take part in it, or not. In other words, they were not coerced or given financial incentives to take part in the study. Additionally, the researcher presented the respondents’’ views anonymously, meaning that their identities were protected, including their job positions, organizations, and employers. The aim of doing so was to prevent attempts of victimizing the informants for the views they gave in this study. Furthermore, the information obtained from this investigation was stored in the researcher’s computer and the contents protected using a password. Doing so helped to prevent unauthorized access to the research data collected. Upon completion of the study, the information collected was destroyed to preserve the integrity of the data collected. It is expected that the above-mentioned ethical procedures were sufficient in protecting the respondents from all possible harm that could affect them because of participating in the study.

Limitations of the Study

The use of the correlation research design has been highlighted as a key tenet of this research design. However, investigating the correlation between and among variables is a limitation in this study because the scope of the investigation did not cover causation. This limitation has emerged because this study is observational and does not necessarily seek to explain the cause and effects of the variables analyzed. Instead, only the relationships underpinning the data obtained were examined. In other words, the researcher did not manipulate the variables and only observed themes that appeared in the study setting. This limitation explains why correlation research studies are also described as a form of descriptive research because a researcher does not manipulate any of the variables analyzed (Stokes, 2017). Additionally, another limitation of this study is its indicative nature. In other words, the evidence and findings outlined in this report only seek to guide policymaking and are not necessarily context-specific. In other words, they are not specifically designed to solve wage gap differences in a specific organization, because they are developed to indicate the overall state of affairs underpinning the relationship between working hours and remuneration in the hotel sector.

Results and Discussion

In this section of the paper, the findings derived from implementing the research strategies outlined in chapter 3 above are reported. The results will later be compared and contrasted with the information highlighted in chapter two to identify consistencies or inconsistencies. Key sections of this chapter will explain the demographic findings of the study as well as the respondents’ views regarding the research questions. To recap, the researchers sought their views using a survey questionnaire that explored four key issues about the research aim: working hours, employee wellbeing, compensation, and organizational justice.

Demographic Data Findings

The first part of the survey questionnaire sought to find out the respondent’s age, gender, and education levels. This information was later used to evaluate whether the demographic characteristics of the respondents affected the overall findings. The results are highlighted below.

Gender Findings

According to table 4.1 below, most of the respondents who took part in the study were male (52.7%), while females were 47.3% of the total sample of participants.

Table 4.1 Gender Findings (Source: Developed by Author).

Age Findings

Age was the second demographic variable highlighted in this study. According to table 4.2 below, most of the respondents (49.1%) who took part in the study were between 18 and 30 years. The second-largest group of respondents was between 31 and 40 years old and they represented 21.4% of the total sample of participants. Those who were between the 41-50 age range comprised the third largest group of respondents (17%), while those who were above 60 years formed the fourth largest group of informants comprising of about 11.6% of the total sample. Additionally, only one respondent was between 51 and 60 years and she represented 0.9% of the total sample.

Table 4.2 Age Findings (Source: Developed by Author).

Education Qualification Findings

Employees who took part in the investigation were also asked to state their highest verifiable education qualification. According to table 4.3 below, most of them (58%) had a high school education certification. Comparatively, informants who had a bachelor’s degree certificate formed the second largest group of respondents (18.8%), while those who had a diploma certificate formed 17% of the total sample. The smallest group of respondents was made up of employees who had an advanced diploma. They formed 6.3% of the total number of respondents who took part in the study.

Table 4.3 Education Qualification Findings (Source: Developed by Author).

Employee-Management Data Findings

The findings depicted in this section of the report relate to the second part of the questionnaire that sought to sample employees’ views regarding the relationship between working hours, compensation, and its effects on organizational justice. In this section of the questionnaire, the respondents were supposed to react to different statements relating to varied areas of the above-mentioned relationship, including their views on working hours, employee wellbeing, compensation, and organizational justice. The findings are highlighted below.

Working Hours

The first part of the questionnaire sought to sample the views of the respondents regarding the number of hours worked. In this section of the analysis, the respondents were supposed to react to four issues highlighted below.

Adequate Hours in Job Group

The first statement sought to find out the respondents’ views on the adequacy of hours worked and most of them (38.4%) “disagreed” with the view that they worked adequate hours in their job groups. Furthermore, 35.7% of the respondents held neutral views regarding the same issue to imply that they “neither agreed nor disagreed” with the aforementioned issue. A broader overview of the findings is presented in table 4.4 below.

Table 4.4 Adequate hours in job group (Source: Developed by Author).

Time off Work

The second statement posed to the respondents sought to find out whether employers gave workers time off work if it was justified to do so. As highlighted in Table 4.5 below, a majority of the respondents either “strongly agreed” (40.2%) or agreed (44.6%) with this statement.

Table 4.5 Time off work (Source: Developed by Author).

Fluctuating Work Schedules

The next statement posed to the respondents sought to find out their views about fluctuating work schedules. According to table 4.6 below, most of them (45.5%) agreed with the statement that their job demands lead to fluctuating work schedules. The findings are summarized below.

Table 4.6 Fluctuating work schedules (Source: Developed by Author).

Availability of Workers to Complete Work Schedules

Respondents were also supposed to give their views regarding the availability of workers to complete work schedules and none of them “disagreed” or “strongly disagreed” with the statement stating that there were often few workers in the organization to complete work obligations on time. Conversely, a majority (51.8%) of them either “strongly agreed” or “agreed” (34.8%) with this statement. A broader overview of the findings is presented in table 4.7 below.

Table 4.7 Availability of Workers to Complete Work Schedules (Source: Developed by Author).

Employee Wellbeing

The second set of statements that the respondents reacted to was linked to their wellbeing. In this section of the survey, the informants were required to react to three statements touching on work-family conflict, work stress, and employer concerns about employee wellbeing.

Work-Family Conflicts

The first statement related to work-family conflicts and a majority of them (51.8%) held “neutral” views on this matter, meaning that they neither agreed nor disagreed with the view that their work caused them this type of conflict. A broader overview of the findings is highlighted below.

Table 4.8 Work-Family Conflicts (Source: Developed by Author).

Work Stress

The next statement posed to the respondents sought to find out their views regarding the presence of work stress. Most of the respondents (46.4%) disagreed with the statement that work stresses them out, while the second-largest group of respondents (35.7%) held neutral views about the same statement. A broader overview of the findings is presented in table 4.9 below.

Table 4.9 Work Stress (Source: Developed by Author).

Employer Concerns about Employee Wellbeing

Linked to the above findings, the respondents were also asked to react to the statement, that their employers showed concern for their wellbeing. This statement attracted the least diversity of responses because most of the informants (75%) either “strongly agreed” or “agreed” (25%) with this statement. Table 4.10 below summarises these findings.

Table 4.10 Employer Concerns about Employee Wellbeing (Source: Developed by Author).

Compensation

The next part of the investigation in the questionnaire focused on compensation. The respondents were supposed to react to four statements linked to this issue: fairness in compensation, adequacy of salary, promotion policies, and types of compensation. The findings are highlighted below.

Fairness in Compensation

Table 4.11 below shows that most of the respondents believed that they received fair compensation for the work they did. This statement is supported by the fact that a majority of the respondents (39.3%) “Agreed” with this statement. A further 32.1% of the total sample of respondents “strongly agreed” with the same view, while a further 28.6% held neutral positions. The findings are summarized below.

Table 4.11 Fairness in Compensation (Source: Developed by Author).

Adequacy of Salary

The next statement made by the respondents related to the adequacy of salary received and most of them (51.8%) “Strongly” held the view that they received adequate salaries, while a further 42.9% “agreed” with the same position. Only 5.4% of the total sample held “neutral” views regarding this statement. A broader overview of the findings is highlighted in table 4.12 below.

Table 4.12 Adequacy of Salary (Source: Developed by Author).

Promotion Policies

In the next statement, the respondents were supposed to react to related to promotion policies in their organizations. As highlighted in Table 4.13 below, most of the respondents (38.4%) “strongly agreed” with the statement that their organizations’ promotion policies were based on merit and employee contribution. Additionally, 33.9% of the total sample also “agreed” with the same statement, while a further 13.4% of the sample held “neutral” views.

Table 4.13 Promotion Policies (Source: Developed by Author).

Types of Compensation

The last statement relating to employee compensation sought to find out the employees’ views regarding the presence of different forms of rewards for their contributions to their organizations. A majority of them (48.2%) “strongly agreed” with the statement that their employers provided different forms of compensation, while 25.9% of them “agreed” with the same position. A broader overview of the findings is presented in table 4.14 below.

Table 4.14 Types of Compensation (Source: Developed by Author).

Organizational Justice

The last part of the survey results related to organizational justice. In this section of the analysis, the respondents were supposed to react to three statements focusing on the fairness of compensation policies, type of work environment, and management support. The results are outlined below.

Compensation Policies

The first statement probed the employees’ understanding of whether management adopted fair compensation policies for hours worked. According to the findings highlighted in table 4.15 below, most of them (40.2%) disagreed with this statement.

Table 4.15 Compensation Policies (Source: Developed by Author).

Work Environment

The next statement that the informants reacted to focused on the presence of a supportive work environment that would allow them to address unfairness in compensation practices and a majority of the respondents (41.1%) were undecided on this matter. Table 4.16 below shows a broader overview of the findings.

Table 4.16 Work environment (Source: Developed by Author).

Management Support

The last statement that the informants reacted to related to the need for extra support from management to improve their wellbeing. According to the findings highlighted in table 4.17 below, a majority of the informants (77.7%) “strongly agreed” with the statement, insinuating the need for extra management support in improving compensation policies.

Table 4.17 Management Support (Source: Developed by Author).

Correlation Findings

As highlighted in the introduction section of this chapter, four key issues about the research aim were explored – working hours, employee wellbeing, compensation, and organizational justice. The findings highlighted in table 4.18 below highlight the correlation between the four variables highlighted above.

Table 4.18 Correlation Findings (Source: Developed by Author).

According to the findings highlighted above, the variables did not share correlation, meaning that working hours were not linked to compensation levels, employee wellbeing, or organizational justice. This is because all the variables identified above had correlation values that were higher than p>0.05, which is the significance level. The next step of the evaluation process involved understanding whether any of the three demographic variables identified in this chapter (age, education level, and gender) affected these results and the findings are highlighted below.

Impact of Demographic Variables

Gender was one of the variables analyzed in this study. Its effects on the variables analyzed are presented in table 4.19 below.

Table 4.19 Impact of gender on findings (Source: Developed by Author).

According to the findings highlighted above, gender did not play a significant role in influencing the respondents’ views because the significance value was higher than p>0.05. For example, organizational justice had a significance value of 0.722, which is higher than 0.05. The same is true for compensation, employee wellbeing, and working hours. The effects of education on the same variables are highlighted in table 4.20 below.

Table 4.20 Impact of education levels on findings (Source: Developed by Author).

Similar to the findings investigating the impact of gender on the variables, education also did not have an impact on the respondents’ views. This is because the significance values were above P>0.05. For example, compensation had a significance value of 0.870, while organizational justice had a significance value of 0.261. Employee working hours and wellbeing also posted significance values higher than p>0.05, meaning that the respondents’ education levels did not affect their views on the study. The impact of the respondents’ age on their findings is highlighted in table 4.21 below.

Table 4.21 Impact of age on findings (Source: Developed by Author).

According to the findings highlighted above, age had no effect on the respondents’ views regarding working hours, employee wellbeing, and compensation. However, it affected the respondents’ views on organizational justice. This effect could stem from generational differences between different groups of employees who work in the hotel industry. Particularly, older workers could have a different view from their younger counterparts regarding fairness and justice in employee compensation. For example, older workers could be willing to take a lower pay compared to their younger counterparts because of varying levels of commitment towards their job.

Alternatively, younger workers could be motivated by the increase in employment opportunities available today to demand better terms of remuneration from their employers. Therefore, they would perceive an employer who does not meet their demands as being “unjust” compared to an older worker who grew up in an environment characterized by scarcity. The impact of age on organizational justice could be further traced to differences in work ethic between older and younger workers. Several researchers have narrowed the analysis to differences in perceptions between millennial workers and the baby boomer generation (Chawla et al., 2017). For example, according to Omilion-Hodges and Sugg (2019), the aforementioned generational differences could be explained by differences in perceptions about work between millennials and “baby boomers.”

Conclusion and Recommendation

From the onset of this study, the goal has been to examine the prevalence and impact of unbalanced working hours to rewards ratio in the hotel sector. To meet this research aim, three objectives were formulated. The first one was designed to quantify the relationship between working hours and financial compensation received by employees in the industry and the second one was aimed at measuring the effects of the relationship between unbalanced working hours to reward ratio on employees’ perceptions of organizational justice in the hotel sector. The third objective was designed to estimate the prevalence of unbalanced working hours to rewards ratio in the hotel sector. The findings revealed that there was no relationship between working hours and financial compensation. Furthermore, the evidence gathered in the study indicated that wage differentials were not widespread. These findings are inconsistent with the majority of the literature, which suggests a correlation between working hours and financial compensation.

Stemming from the above findings, the researcher did not find evidence indicating that the influence of unbalanced working hours to reward ratio influenced employees’ perceptions of organizational justice. The inconsistency of the findings highlighted above could stem from the favorable labor policies prevalent in today’s labor market, which have improved working conditions for most employees and boosted their satisfaction level as well. This statement means that these conditions should have neutralized the effects of unbalanced working hours and employee compensation that has been reported in other studies. However, it is also important to note that a significant percentage of the informants sampled in this study also held contrary views regarding the research issue and age accounted for most of the variations in responses witnessed in the findings. In this analysis, low-skilled employees could have held contrary views regarding the favorability of employee matters, indicating that there is still some room for improvement.

Overall, the role of rewards in boosting employee performance has been an essential topic of inquiry in human resource management literature. In the hotel sector, this relationship is crucial because rewards are connected to employee motivation and performance, which, in turn, affect productivity and customer satisfaction. Ensuring that the relationship between rewards and employee outcomes is understood and implementation gaps addressed, could help to enhance HRM practices, bringing better performance and productivity to companies. Alternatively, this process is instrumental in developing a combined policy action among stakeholders in the hotel industry, thereby improving their relationships. Thus, it will provide a foundation for galvanizing more efforts to address wage gap inequalities as a broader HRM problem in the hotel sector.

Recommendations

Broadly, there is a need to increase investments in the provision of decent and sustainable work to reduce the pay gap inequities in the hotel industry. Particularly, this approach could be more useful in low-income countries because the pay gap is wider among low-skilled and highly skilled employees. Particularly, rapidly industrializing nations, such as China and India could find such information useful in managing labor issues in their economies. More importantly, they could find these insights to be useful in supporting their struggling tourism markets as labor dynamics tend to apply to multiple industries. The contributions made by these insights to the above-mentioned economies could happen by providing strong business incentive structures to oversee the improvement of wages among of workers. Particularly, the creation of paid employment frameworks for many low-skilled workers at the bottom of the pay pyramid needs to occur if lasting changes are to be made to improve employee performance and organizational output. For example, employees who work on a casual basis may be incentivized to improve their work terms and make their employees have the benefits of a permanently employed worker. This strategy will minimize the pay discrepancies between employees who are contracted on a casual or permanent basis.

The second strategy that can be adopted in the hotel industry to minimize pay gap inequalities involve increasing investments in work institutions. The process should first start through the development of a wage determination mechanism that would outline the framework for setting wages and outline modalities for improving it over time. For example, enhancing employee fundamental rights and limiting working hours among certain job groups would improve the profile of low-skilled employees and increase their chances of earning better wages. Alternatively, raising the minimum wage to a level that is substantially high and that can cover the basic needs of all employees would also be a welcome step in minimizing wage disparities linked to unbalanced working hours. Doing so would introduce dignity to low-skilled workers who may feel trapped by low wages and a rising standard of living.

In this discussion, the minimum wage should be seen as a starting point for challenging traditional norms and patterns of engagement among different groups of workers. However, minimum wages should not be merely set at a certain price point and assumed to have solved the traditional power imbalance between employers and employees because managers also need to do more work in creating new opportunities for workers to generate additional revenue from their work. Therefore, this policy complements existing HRM policies aimed at improving employee welfare by periodically increasing the minimum wage. This practice is prevalent around the world and in many countries as different labor organizations often advocate for better pay and remuneration from their employers by requesting an increase in their minimum wages.

By following the above-mentioned strategy, progress has been achieved in various sectors of the economy, such as through the success of labor unions, which have managed to highlight unfair remuneration policies by organizations that pursue profits at the expense of workers’ welfare. Similarly, they have achieved success in improving employee working conditions by demanding better compensation for extra hours worked. Therefore, increasing investments in people’s abilities should be a welcome step because it may help to minimize wage inequalities in the hotel sector. This could happen by providing new educational opportunities for workers to improve their skills. Training and seminars could also be organized to improve the level of skills required of employees in the 21st-century workplace.

References

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Annotated bibliography

Spending a holiday in Europe can be unaffordable for many tourists. This blog will present various ways of saving money in different European countries and will focus on transportation, housing, food, and entertainment. The sources included below aim to contribute to the general understanding of the tourism sector, as well as provide specific ideas and guidelines for experienced travelers.

Batabyal, Debasish, and Dilip Kumar Das. Global Trends, Practices, and Challenges in Contemporary Tourism and Hospitality Management. IGI Global, 2019.

This book focuses on contemporary tourism and its major aspects. The authors provide an insight into the preferences of modern tourists and the concerns of the modern hospitality sphere. An advantage of the source is that it covers various aspects of traveling in different regions, including Europe. Moreover, it presents and discusses in detail trends in tourism that cannot be considered traditional, such as ecotourism. I think that the relevance of this source is expressed in how it presents tourism from a socio-economic perspective, which can be especially informative for tourists interested in budget traveling. Moreover, the target audience of the book includes travel agents, marketers, and consultants, which allows an understanding of how tourists are perceived in the modern tourism sector and how to avoid hard-selling of touristic services. Therefore, the ideas presented in this source may be used for describing the contemporary tourism sector in general and creating an image of a modern tourist.

Oskam, Jeroen A. The Future of Airbnb and the “Sharing Economy”: The Collaborative Consumption of Our Cities. Channel View Publications, 2019.

The book by Oskam is a comprehensive description of Airbnb as one of the most popular vacation rental platforms. The author focuses on the “sharing economy” of this particular online marketplace and discusses its hidden practices and impact on the accommodation sector of business. It can be suggested that the goal of the book is to provide an understanding of how Airbnb functions and warn prospective guests about its disadvantages, such as issues related to social inequality. The source is connected with the topic of budget traveling in Europe because Airbnb is considered one of the affordable platforms for renting accommodation. Some of the chapters cover the peculiarities of the “sharing economy” in the European region in particular. At the same time, not all travelers are aware of the hidden disadvantages of Airbnb accommodation, especially ones related to economy and social sustainability. Moreover, the book was published in 2019 and represents the current reality of the vacation rental sector. To summarize, the book focuses on Airbnb in the broader socio-economic context in different regions, including European.

Plumridge, Nardia. Lost in Florence: An Insider’s Guide to the Best Places to Eat, Drink and Explore. Hardie Grant Travel, 2019.

Plumridge’s book presents her travel experience in Florence from the point of a budget tourist. She does not only describe the major sights of the city but also mentions less well-known places appreciated by local people. A remarkable feature of the book is that the author discusses various aspects of exploring the city, such as eating and drinking, shopping, and visiting tourist destinations. Moreover, she mentions affordable ways of exploring this Italian city. This book can be considered appropriate for the chosen topic because it covers both traditional and cheap ways of traveling in Italy. Even though the author writes about only one European city, the source provides an insight into general aspects of traveling in Europe and includes specific ideas and advice for the travelers. Finally, I think that this book is a trustworthy source because Plumridge is a traveler herself and is familiar with the described city. To conclude, written in the form of a guidebook, this source provides examples and advice connected to cheap and unconventional travel in Florence, based on the author’s personal experience.

The presented research project is entitled How augmented reality can impact on the guest experience of the hospitality industry in the UK. The choice of the topic is preconditioned by the increased importance of innovations in the modern business world. They create multiple opportunities and help to generate a competitive advantage by reconsidering old approaches and replacing them with new ones. Thus, global hospitality organisations are impacted by technologies and benefit from their application to perform various tasks and work with clients. At the same time, augmented reality allows hotels and other social businesses to improve the physical environment. In such a way, the research focuses on the impact augmented reality might have on the hospitality industry in the UK, the existing cliques’ perceptions about AR, its acceptance, convenience, and the ability to attract potential guests.

The central purpose of the research is to understand how the context of augmented reality can impact on the guest experience of the hospitality industry in the UK. The given aim is supported by the following research question:

What are the features of augmented reality that could be used as a competitive advantage in improving the guest experience in the hospitality industry?

Moreover, to structure the research and ensure that all vital issues are covered, the following research objectives are formulated:

• To analyse the impact of augmented reality on the hospitality industry in the UK
• To explore how the characteristics of augmented can enhance the guest experience of the hospitality industry in the UK
• To recommend on how augmented reality can be integrated as a part of the marketing strategy for the hospitality industry in the UK

The nature of the research presupposes the use of a particular research methodology. The positivism philosophy combined with a deductive approach is viewed as an approach useful in investigating the impact of virtual reality on the guest experience in the hospitality industry. The quantitative data collection methods are used to collect credible information and evaluate the influence of virtual reality on the guest experience. This paradigm also presupposes using surveys and close-ended questionnaires to gather data among respondents. At the same time, convenience sampling is utilised to select participants for the research.

Using the research methodology mentioned above, the following findings are acquired:

• 57.50% of respondents know about augmented reality
• 44.74% have used augmented reality applications
• 51.52% have utilised the technology once, 39.3% have utilised more than two to three times, and 9.09% have used them more than three times
• 82.86% would be choosing hotels on the basis of the AR
• Almost all mobile devices allow using AR
• 46.67% agree that using AR in hotels is needed
• 77.14% will be utilising the AR apps as it will help in visualising the hotels and other services from home

These numbers evidence the high acceptability levels and numerous options of using AR in the sphere to improve guests’ experiences.

The practical utility and importance of the research come from its ability to fill existing gaps in knowledge related to the problem. Thus, the project highlights how individuals view AR and their experiences in using it for different purposes. Moreover, the study shows that individuals and hotels are ready to accept it as a way to attract the attention of new guests and entertain them. Finally, the investigation describes how AR can be useful in reconsidering the work of the hospitability industry and create digitalised environments.

Altogether, using results acquired by quantitative data collection tools, we conclude that AR becomes a vital and practical tool that can improve the guest experience and attract new clients. For this reason, mobile augmented reality apps should be used to create pleasurable and enjoyable experiences. Innovations, such as 360° interactive virtual tools, can be useful for clients. The existing level of digitalisation and contemporary environment are beneficial for implementing AR in most hotels. That is why it can be recommended to devote much attention to exploring the given technology and integrating it into the industry.

The hospitality industry is key to the economic development of a country. Due to technological, social, and political changes that happen from time toover time, hospitality companies are forced to develop effective strategies for their operation. One of the essential steps that hospitality companies take to ensure they say ahead of competitors and remain relevant in the changing world is planning. The notion of group moves comes in handy as it helps hospitality companies analyze group behavior and strategize ahead to take advantage of upcoming opportunities and thriove.

Group moves can be applied to the hospitality industry through market research. Hospitality companies need to figure out how different groups behave and their influence on the company. For instance, a hotel can find that most of its customers are is the young generation who always book accommodation on weekends. In another situation, a company may assess the a group’s specific needs, make up a considerable percentage of its customers, and strategize on meeting their needs beforehand. This is important for customer satisfaction, thus maintaining a customer base and increased profit.

Extended Stay America is one of the key players in the American hospitality industry. The company is an example of how hospitality companies’ adoption of group moves for for strategic planning. Research of the U.S. population reveals that most people who seek accommodation in hotels keep pets. Travelling and lodging have become the norm with increased globalization and tourism. Knowing that many people like to travel with their children and pets, such as dogs, Extended stay Stay America used strategic planning to develop its facilities with a pet-friendly environment (Bulloch, 2018). The company has also strategized on budget by allowing the children to stay for free. These are strategic plans resulting from group moves’ analysis and application in the hospitality industry.

Reference

Bulloch, L. (2018). Home away from home: Assistance animals, extended-stay hotels, and the fair housing act. Ariz. St. LJ, 50, 1265.

Introduction

Attaining economic growth and development is one of the fundamental macroeconomic issues that governments pursue. Countries can assess their economic performance by examining the trend of their Gross Domestic Product [GDP] (Gitman & McDaniel 2008). The level of GDP is subject to the occurrence of business cycles. A steady increase in a country’s level of GDP indicates a strong economic performance and hence its prospects. The effectiveness with which a country grows its GDP is influenced by the government’s focus in stimulating the various components of the GDP, which include consumption, investment, and the net exports. The consumption variable is fundamentally one of the most effective dimensions that a country can pursue in its quest to achieve economic growth. An increase in the level of government and individual consumption or expenditure within a particular economic sector translates into a multiplier effect hence culminating in economic growth of other sectors (Hede 2007). Gitman and McDaniel (2008, p.43) argue that an ‘increase in business activity results in rising output, income and prices’. Therefore, the significance of stimulating consumption in diverse economic sectors should not be undervalued.

Governments should take advantage of the opportunities available in the global arena. Therefore, the importance of establishing relations with other countries through economic and cultural aspects is essential. Hosting hallmark events is one of the most effective avenues that governments should pursue in promoting economic growth (Kavetsos & Szymanski 2010). The past decades have been characterised by growth in the value of social and cultural events in countries economic growth. This phenomenon is illustrated by the degree of competition amongst countries bidding to host mega sporting events such as the FIFA World Cup and Commonwealth Games (Dembek & Wloch 2012).

Bayar and Schaur (2014) emphasise that countries pay a substantial amount of money to host such events. This trend has generated interest amongst scholars on the value of mega sports event to a country’s economy. One of the assertions made by scholars is that the events present an opportunity for countries to signal their commitment to trade openness. The hosting of the 2010 FIFA World Cup in South Africa led to remarkable improvement in the country’s reputation. Briedenhann (2011, p.5) emphasises that such ‘events are perceived by government and its agencies as an avenue through which to garner economic, employment and tourism benefits’. Thus, the mega sports event boosts a country’s visibility in the international market, which underscores its economic relevance. Subsequently, the likelihood of promoting international trade is improved remarkably (Nauright 2013).

Nevertheless, some scholars argue that the mega sports events may lead to negative outcomes such as social degradation within the host country (Briedenhann 2011). However, it is the perceived economic gains associated with such events form the rationale for countries to bid for hosting such events. Subsequently, the host governments are ready to commit a substantial amount of finance in facilitating such events (Kruger & Heath 2010).

Tourism comprises a major catalyst in a country’s socio-economic growth (Information Resources Management Association 2015). The sector does not only lead to economic expansion through an increase in the level of investment but also provides a country an opportunity to brand itself in the international arena (Damster & Tassiopoulos 2005). The tourism sector ranks amongst the greatest beneficiaries for countries hosting the mega sports events. Therefore, governments should consider leveraging on hosting the mega sports event as an opportunity to improve their tourism sector. Qatar tourism sector is likely to benefit from the country’s successful win of the bid to host the 2022 FIFA World Cup.

Problem statement

Until recently, the Qatar was misconceived as a business-only tourism destination. Moreover, the country did not have the adequate understanding about the significance of the tourism sector in promoting the country’s sustainable development. Legislative barriers also limited the tourism sector (Baggio 2011). However, the government has increased its commitment in promoting the tourism sector as evidenced by the formulation of the Qatar National Tourism Sector Strategy 2030 by the Qatar Tourism Authority. The strategy entails a comprehensive series of projects, programs, projects, and policies that are intended at promoting the country’s tourism sector to achieve long-term growth. The strategy is aligned with the best practices in the tourism sector and is expected to minimise the country’s overdependence on hydrocarbon resources as a source of the country’s economic growth. Moreover, the plan is projected at perpetuating the country’s culture, traditions and values through tourism. Despite the fact that the Qatar tourism sector has experienced remarkable growth in the recent past, the country can explore other avenues to improve the potential of the tourism industry (Qatar Tourism Authority 2015).

The Qatar industry can be defined to be in the growth phase. A press release issued by the Qatar Tourism Authority showed that the total number of tourist arrivals in Qatar increased to 1.42 million during the first half of 2014, which represents an 8% growth. Additionally, the number of tourists from the Gulf Cooperation Council countries visiting Qatar account for 38% of the total number of tourists in the region (Just Here 2015). However, the degree of sustainability within the country’s tourism sector will be influenced by the efficiency with which the Qatar Tourism Authority undertakes tourism planning.

The country’s opportunity to host the 2022 World Cup will present an opportunity for the tourism sector to grow. It is projected that over 400,000 fans will attend the event (Qatar Tourism Authority 2013). Subsequently, the demand for the country to host the tourists during the event is critical. Thus, the government will be required to commit a substantial amount of resources in developing the requisite infrastructure. The challenge for the Qatar Tourism Authority is to ensure that the increase in the level of tourism arising from hosting the 2022 World Cup is sustainable. Therefore, the Qatar Tourism Authority will be required to ensure that effective planning is undertaken. This aspect may entail adjustments to the current tourism strategy. Through this approach, it will be possible for the Qatar Tourism Authority to hasten the attainment of the desired vision 2030. Therefore, the challenge is for the Qatar government to establish a link between the requisite tourist systems.

One of the aspects that the Qatar government should consider in its tourism planning process entails leveraging on hosting the 2022 World Cup as an opportunity to establish a link between the core industries of the tourism sector. These sectors include the transport sector, travel organiser sector, attraction sector, accommodation sector and the destinations organisations sector (Getz, Anderson, & Larson 2007). Failure to establish a link between the tourism planning process and the opportunity to host such a mega event might limit a country’s effectiveness in effectively using the tourism sector in catalysing the country’s economic growth. Furthermore, it is imperative for the Qatar government to consider the most effective approaches through which hosting the 2022 World Cup would contribute to the development of a sustainable tourism sector. Such considerations will culminate in enhancing the country’s economic performance.

Aims and objectives

The aim of this study is to investigate on the innovative approach of Qatar Tourism planning for the World Cup 2022 and its future.

To achieve this objective, the study will focus on achieving the following objectives.

1. To evaluate if Qatar has made the right choice in bidding to host the 2022 World Cup
2. To analyse the current Qatar economy as an independent country and its rationale for hosting the World Cup games.
3. To investigate the requisite innovative issues that Qatar should consider in its tourism planning in the preparation for the 2022 World Cup.

Research questions

To actualise the above research objectives, the following research questions will be taken into consideration.

1. Did Qatar make the right choice by bidding to host the 2022 World Cup?
2. What is the current state of the Qatar economy and the economic rationale for hosting the 2022 World Cup?
3. What are the requisite issues that the Qatar government should consider in its tourism planning in the preparation for the 2022 World Cup?

Limitations of the study

The study will involve an evaluation of the impact of hosting the World Cup to the Qatar economy. To achieve this goal, the study will specifically target on the tourism sector. Subsequently, the study is limited to planning in the tourism sector and its future for hosting the event. Moreover, the study is based on secondary research by reviewing documented literature related to the topic under investigation. To overcome the limitation associated with relying on secondary research, it is ensured that the data is only gathered from credible sources. The rationale for effective selection of the data sources is to improve efficiency in managing the time and cost required to undertake the study successfully.

Significance of the study

The study’s findings will be of significant value in Qatar’s quest to develop a sustainable competitive advantage in the tourism sector. Currently, Qatar has formulated a comprehensive plan to achieve economic growth through promotion of the tourism sector. The country’s winning of the bid to host the 2022 World Cup presents a great opportunity for the country to improve its tourism sector. The study will be of critical importance to the Qatar government in understanding the relationship between hosting mega sports event and stimulating sustainable economic growth. This goal is achieved by reviewing past literature on how hosting mega sports event has contributed to strong economic performance in countries such as Germany and South Africa. The study will provide the Qatar Tourism Authority insight on the fundamental aspects that should be considered during the planning process to exploit the available opportunities. Therefore, the government will effectively restructure the tourism sector to achieve sustainability.

Theoretical and conceptual framework

Industries or economic sectors progress through diverse stages that include introduction, growth, and maturity and decline (Butler 2006). The belief that tourism destination progresses through a lifecycle indicate that it is a living entity (Jago et al. 2010). Numerous studies have been conducted to document together with profiling the various life stages and the respective degree of vitality. During the initial states, the tourist destinations are characterised by enormous promise. The destinations generally become unproductive and unhealthy during the decline or aging phase hence culminating in premature demise (Kim, Gursoy, & Lee 2006). The decline phase entails the reduction in the tourism resource base and its associated competitive advantage. This aspect means that the destination’s long-term sustainability is compromised.

Mason (2012, p.11) corroborate that attempts ‘to improve the quality of life of the host community, to provide high-quality visitor experiences and to maintain a vibrant and supportive environment, become increasingly difficult to achieve and maintain’. The effectiveness of the Tourism Area Life Cycle theory in tourism planning is underlined by its application in the rejuvenation of the Danxia Mountain as a tourism destination, which had declined considerably during the early 1990s (Butler 2006). However, some critiques argue that the stages associated with tourism are only hypothetical and not applicable to all tourism destinations. This paper argues that destination evolution through the stages of exploration, growth and development, stagnation or decline, consolidation, and rejuvenation are critical in the process of undertaking tourism planning.

The growth of the Qatar tourism sector experienced over the past decades underlines the existence of high prospects in the future. However, it is imperative for the Qatar Tourism Authority to think beyond the numbers. On the contrary, the QTA should appreciate the importance of integrating strategic shift towards quality tourism. To achieve this goal, the Qatar government should emphasise on aspects such as high standards, innovative developments, tourist attraction and hospitality. This aspect will play a critical role in promoting Qatar image a competitive tourism destination.

Based on the above aspects, this study is based on the Tourism Area Life Cycle model. The rationale of the TALC model is based on the view that tourism operates in an environment that is increasingly becoming dynamic and hence the need to take advantage of the opportunities presented by the broader environment should not be ignored (Waugh 2000). Through the TALC model, it is possible for the Qatar Tourism Authority to achieve sustainable and long-term performance. In the process of undertaking tourism planning how to exploit the opportunities presented by hosting the 2022 World Cup, it is essential for the Qatar Tourism Authority to ensure that the respective components that constitute an efficient tourism sector are taken into consideration (Presenza, Sheehan, & Ritchie 2005). This research conceptualises that the sustainability of the Qatar tourism industry depends on the country’s effectiveness in establishing a link between the diverse sectors of the tourism sector (Waller, Trendafilova, & Daniell 2014). It is critical for Qatar to take into account the diverse sectors to take advantage of the opportunity to host the World Cup in its tourism planning. Through this approach, the future performance of the tourism industry will be improved hence promoting the country’s economy.

The conceptual framework hypothesises that the efficiency with which Qatar successfully exploits the opportunity presented by hosting the World Cup in promoting its tourism sector will be influenced its effectiveness in establishing a link with the diverse sectors of the tourism industry.

Literature Review

Introduction

Chapter 1 highlights tourism as a critical component in Qatar’s future economic performance. Moreover, the chapter identifies Qatar’s winning of the bid to host the 2022 World Cup as an opportunity to promote the sustainability of the tourism industry. Consequently, the country’s economic performance will be promoted. However, to exploit the opportunities presented by hosting the mega sports event, it is imperative for Qatar Tourism Authority to undertake effective tourism planning. This aspect will contribute to the strengthening of the country’s economy.

This chapter entails a critical review of past literature on economic rationale associated with bidding a mega sports event such as the World Cup. Therefore, the chapter entails an extensive review of the foundations associated with hosting a mega sports event. The chapter is organised into different sections.

Economic and tourism impacts of hosting mega sports event

Fourie and Santa-Gallego (2010) accentuate that despite the fact that different factors contribute to sector’s growth; one of the distinguishable sources of the growth entails global events. The mega sports events not only attracts the global audience, but have also remarkably shaped the global tourism patterns (Lee 2009). Hosting such events contributes to the creation of lasting legacies on the host country (Maennig 2012). Rogerson (2009) supports this view by affirming that winning to host a major sports event is a unique opportunity in the future of a country’s tourism economy.

One of the fundamental contributions relates to the establishment of various infrastructural developments (Smith & Stewart 2007). The successful hosting of a mega sports event is influenced by the quality of infrastructure (Briedenhann 2011). Moreover, Westerbeek et al. (2005) emphasise that effectively integrated infrastructural developments comprising of transport and communication network, accommodation facilities and physical venues are essential for a mega sports event. The rationale of such developments is to ensure that the fans and athletes attending the mega sports event attain a high level of convenience and satisfaction (Crowther 2010). However, the benefits associated with such infrastructural developments are not only limited to the period within which the event is held but also benefits the host community in the future (Maennig 2007).

Available literature indicates the existence of variation with regard to the contribution of mega sports on the economy. Preuss (2004) emphasises that the gains emanating from mega sports events are ambiguous. Similarly, Lee (2009) emphasise that the gains arising from mega sports events are doubtful. This aspect indicates the existence of debate on the costs and benefits associated with hosting mega sports events. However, Westerbeek et al. (2005) argue that mega sports events are associated with quantifiable tourists’ behaviour. Access is an essential element in improving the effectiveness of sports facilities during the sports events. During the 2010 World Cup, South Africa prioritised the construction of the transport system. This aspect entailed upgrading the road and airport system (Briedenhann 2011).

The availability of sufficient accommodation is another major factor that is critical in the process of planning to host a mega sports event. Nevertheless, Briedenhann (2011) warns that countries hosting a mega event should be cautious not to over-develop the accommodation facilities during the mega sports event in areas that are not likely to be characterised by sustainable tourism growth in the future. Their opinion is that such developments would not translate into sustainable profitability after the event is over (Briedenhann 2011). Therefore, it is imperative for the Qatar Tourism Authority to identify the sustainability of the accommodation facilities established to facilitate the hosting of the 2022 World Cup.

Tourism expectations of mega sports events

During the previous World Cup held in South Africa, it was projected that approximately 460,000 international visitors would travel to South Africa for the event. The total fan base during the event was expected to be approximately 3.5 million fans (Melwani 2009). The senior government officials in South Africa were of the perception that the event would culminate in tourism boom hence generating approximately $ 1.25 billion (Melwani 2009). However, Preuss (2004) criticises the projections on the number fans attending such events. In his opinion, Preuss (2004) argues that the projections are optimistically estimated. Moreover, the government officials charged with the responsibility of planning the mega sports events did not take into consideration the possibility of crowding out effect on the level of normal tourism within the country (Dwyer, Forsyth, & Dwyer 2010). Maennig (2007) identifies the crowding out effect on the tourism sector that occurred in Germany during the 2006 World Cup. The degree of accommodation occupancy declined in some of the country’s major cities such as Berlin and Munich by 11.1% and 14.3% respectively compared with the degree of occupancy in 2005 (Maennig 2007).

Despite the existence of divergent views on the possibility of the crowding-out effect, it is possible for countries to promote the level of tourism by attracting domestic and international tourists during the mega event (Dwyer, Forsyth, & Spurr 2005). However, this goal can only be achieved if the host country undertakes extensive pre-event promotion (Koh & Jackson 2006). Through pre-event promotion, it is possible for the Qatar government to improve the attractiveness of the country as a tourist destination during and after hosting the event (Siaegfried & Zimbalist 2006). Pre-event promotion is further considered as an effective approach through which a country can increase the length of stay and the likelihood of the tourists visiting different tourist destinations within the host country (Bowdin et al. 2006). Thus, the possibility of the country experiencing remarkable future flow in the number of tourists will be improved considerably. Westerbeek et al. (2005) identify this phenomenon as the ‘flow-on effect’. The outcome of this occurrence is that the economic benefits associated with hosting the mega event will be distributed to other regions of the country that were not directly involved in hosting the event because of the legacy created (O’Toole 2010).

The mega sports events present the host country a unique opportunity to position itself in the global market because of the extensive television coverage (Gratton, Shibli, & Coleman 2006). The FIFA World Cup is identified as one of the mega sports events watched by billions of people around the world. Approximately 4 and 5 billion people watched the 2004 FIFA World Cup in Greece, which presented a free advertising opportunity for Greece hence promoting its future tourism prospects (O’Brien 2006). Similarly, the 2000 Olympic Games held in Sydney improved Australia’s tourism marketing effort by 10 years (Westerbeek et al. 2005). In spite of the marketing opportunity associated with hosting the mega event, Appel (2008) emphasises that the tourism marketing and media coverage of the host country must be innovatively designed and managed. The South African government was extensively criticised for not taking advantage of the media coverage associated with the mega sports event (Sulelo 2009).

Economic growth and employment generation

The mega sports events are identified as a major catalyst in a country’s economic growth (Smith 2006). Therefore, hosting the mega sports event creates an opportunity for countries to achieve their macro-economic growth and development (Korr & Close 2008). The probability of attaining balanced economic growth emanates from the fact that the opportunities with regard to local entrepreneurship are stimulated. Nabli (2007) affirms that the small and medium enterprises have an opportunity to access the international market by taking advantage of the trade opportunities associated with hosting such events. Canela and Figini (2011) affirm that hosting the World Cup contributes to improvement in the degree of investor confidence. The hosting of the 2006 FIFA World Cup led to a 29% decline in the level of unemployment in Germany. On the other hand, net exports grew by 14% because of increase in the level of leisure and business tourism (Appel 2008; Ahler 2006).

Analysis of the Qatar economic performance

Economic growth is a critical component in a country’s long-term sustainability. Hubbard, Garnett, and Lewis (2014, p.346) define economic growth as ‘the ability of an economy to produces increasing quantities of goods and services’. A country characterised by a slow rate of economic growth fails to improve its citizens’ living standards (Getz 2008). The rate of economic growth differs significantly across different countries. Contraction of a country’s economic performance may culminate in a reduction in its economic growth. Koh and Jackson (2006) affirm that maintaining the level of employment is one of the most effective ways through which a country can promote its economic growth. Some of the most successful countries have achieved remarkable economic growth because of their commitment to improve the level of employment (Hubbard, Garnett, & Lewis 2014).

Qatar ranks amongst the fastest developing countries in the Gulf Region (Deloitte 2015). The country’s economy has relied on the production and exportation of hydrocarbon products because of the enormous oil reserves. However, the Qatari government has over the past few years focused on diversifying its economy by focusing on other economic sectors such as the tourism sector. The rationale for this shift arises from the disruption of the country’s economic performance due to global economic changes. Available literature shows that Qatar has experienced a remarkable fluctuation in the rate of GDP growth (Deloitte 2015). Graph 1 indicates the performance of the country’s annual GDP growth rate. From the graph, it is evident that the country GDP growth rate has fluctuated significantly between 2013 and 2015. During the 3^rd quarter of 2015, the country’s GDP increased by 2.8%. Between 2004 and 2015, the country’s average annual rate of GDP growth was estimated to be 3.65%. The country’s highest rate of GDP growth was experienced in 2008, which averaged 14.40%. However, during the 2^nd quarter of 2008, the rate of growth declined to -23.20% (Trading Economics 2016).

Apart from economic growth, the other macroeconomic goal that governments are required to pursue relates to ensuring stability with reference to the level of employment. It is imperative for governments to unlock their country’s potential to achieve economic growth by stimulating the rate of employment. A low level of unemployment is critical in stimulating a country’s economic performance. This aspect arises from the fact that the consumers’ purchasing power is improved considerably hence stimulating the level of consumption across different economic sectors (Qi, Gibson, & Zhang 2009). The ultimate effect is that the consumers’ purchasing power is improved considerably. The graph below illustrates the economic performance of Qatar with regard to the rate of unemployment.

Despite the fluctuation in the rate of unemployment, Qatar has managed to maintain the rate of unemployment within a single digit range. This aspect indicates that the government is extensively committed to the reduction of the rate of unemployment. The Qatar rate of unemployment was lowest in 2013 and 2014 at 0.3 and 0.2 respectively (Trading Economics 2016). Solanki and Sen (2015) indicate the existence of a positive correlation between the growth in the rate employment and the level of public expenditure. Between 2004 and 2005, India increases the level of public expenditure as a percentage of the country’s GDP by 15.61%. Subsequently, the level of employment grew by 2.62% (Solanki & Sen 2015). Considering the relationship between public expenditure and the level of employment creation and GDP growth, it is imperative for the Qatari government to consider the public expenditure that will be undertaken in establishing the requisite infrastructure as an opportunity to stimulate the country’s future economic growth.

Conclusion

The literature review conducted is limited to the hosting of a mega sports event and its economic contribution to a country. The review specifically focuses on the tourism sector. The literature review identifies winning the bid to host a mega sports event such as the FIFA World Cup as a unique opportunity to promote economic growth. The review shows that winning such a bid contributes to an improvement in the host country’s visibility in the global market, and thus the level of international trade. However, hosting mega sports event is strongly correlated with a country’s economic growth because of the direct and indirect impacts. The review identifies the tourism as one of the economic sectors that can greatly benefit from hosting a mega sports event. Therefore, the need for the host government formulating effective approaches in the tourism sector to leverage on the available opportunities should not be ignored. Currently, Qatar has experienced remarkable economic improvement over the past few decades. However, the country is re-evaluating its overreliance on the hydrocarbon sector. One of the areas that the government is focusing on entails the tourism sector.

Methodology

Introduction

This study aims at evaluating to investigate on the innovative approach of Qatar Tourism planning for the World Cup 2022 and its future. The study’s rationale arises from the recognition of the valuable opportunities that the firm’s tourism sector can acquire by taking advantage of the country’s opportunity to host the World Cup. Hosting mega sports event presents an opportunity for countries to promote their tourism sector. However, the effectiveness with which this goal is achieved is influenced by the commitment of the parties responsible of promoting the tourism sector ensuring that the appropriate issues are taken into consideration in the strategic management process. This approach will contribute to enhancing the level of sustainability within the tourism sector.

This paper intends to achieve the research objective by evaluating the innovative approaches that the Qatar government can integrate into its planning process to take advantage associated with hosting the 2022 world cup. The research further evaluates the benefits that will emanate from hosting the world cup hence contributing to the sustainability of the tourism industry. This chapter outlines the methodological approaches that have been taken into account in the process of conducting the research study. The chapter outlines the research design and its justification, method of data collection, data analysis and presentation.

Research design and justification

This study is based on the qualitative research design. The rationale of selecting this design is to gather sufficient data on the implementation of the concept of the contribution of hosting a mega sports event such as World Cup to the tourism sector and hence the overall performance of the economy. Therefore, the research study can be defined as exploratory (Yin 2012). The study intends to use the exploratory research as an approach of gathering insight on the impact of hosting the World Cup on the country’s economy (Saunders, Lewis, & Thornhill 2007). McNabb (2015) emphasises that exploratory research is very effective in analysing a particular situation. The exploratory research approach improves the efficiency with which the researcher understands the critical issues associated with the problem or issue under investigation. According to Sreejesh, Mohapatra, and Anusree (2014), exploratory studies are conducted for three main reasons, which include analysing a problem situation, to evaluate alternatives and to discover new ideas. To achieve this outcome, the exploratory research design is supported by entrenching a case study on the Qatar tourism industry. Therefore, the case study approach provides the researcher an opportunity to examine the specific components related to tourism planning in Qatar.

Data collection

The data used in conducting a research study influences the value of the study’s findings in making relevant recommendations on how to improve the situation under investigation. Subsequently, the relevance of the study to the target audience is reduced significantly (Smith 2008). To overcome this challenge, effective selection of the sources of data is essential. The data used in conducting this study is sourced from secondary sources, which entail obtaining data from previously documented sources such as journals, magazines, and online articles. Church (2001) corroborates that secondary data is the most common source of data used in undertaking exploratory research. The choice of secondary sources of data is informed by the ease associated with collecting data from such sources. Rao (2008) accentuates that secondary sources improve the efficiency with which researchers undertake research data. Rao (2008) cites resource scarcity as one of the major hindrances in the process of conducting a research study.

To improve the quality of the research study, the research data is sourced from literature such as press releases on hosting the 2022 World Cup. The process of collecting data will be achieved by sourcing data from the internal sources such as the Qatar Tourism Authority. Through this approach, the credibility and reliability of the research data improve substantially. Moreover, the reliability of the research finding in making decisions on tourism planning and its future is improved. In addition to internal sources, the secondary sources of data further entail external sources such as analysis by industry experts and from periodicals.

Data analysis and presentation

The research data collected from previously documented sources is both qualitative and quantitative in nature. The data obtained from the secondary sources is evaluated using secondary analysis. Smith (2008) asserts that the secondary data analysis method involves re-analysis of existing data. The secondary data analysis is implemented by entrenching the thematic analysis approach. Long-Sutehall, Sque, and Addington-Hall (2010) define this method as a technique in which the researcher examines the collected data and identifies the information that is relevant to the research questions and objectives.

The secondary data analysis method provides investor an opportunity to re-interpret the secondary data. Long-Sutehall, Sque, and Addington-Hall (2010, p. 336) support the view that the ‘re-use of archived datasets and secondary analysis has gained interest and momentum due to the recognition that many qualitative datasets offer narratives that discuss issues related to the primary research questions, but which have never been analysed’. The secondary data analysis approach creates an opportunity for the generation of new knowledge on tourism planning with respect to its sustainability.

In the process of analysing the data, the study focuses on qualitative and quantitative data analysis approaches. The data collected is analysed and presented using tables and graphs. Using these techniques, the paper has been in a position to review and re-analyse the secondary data collected. Subsequently, the re-analysis of the data collected provides insight on how to Qatar government can utilise the opportunities associated with hosting of the World Cup.

Conclusion

The implementation of the above methodological approaches and techniques will lead to the generation of critical insight from the secondary data collected. Subsequently, the study will make a conclusive analysis on the rationale of Qatar’s bid to host the 2022 World Cup and its contribution to the country’s economy. Based on the analysis of the data collected, the capacity of the Qatar government through the Qatar Tourism Authority to undertake innovative tourism planning will be improved significantly.

Results and Discussion

Introduction

The adoption of the descriptive research design and the secondary sources of data in the study have led to the generation of a substantial amount of data on the research topic. The data collected has illustrated the prevailing situation in Qatar in its quest to prepare for the 2022 FIFA World Cup coupled with how it intends to use the event innovatively to plan for the future of the tourism industry. This chapter presents the results, analysis and discussion of the study’s findings. The analysis focuses on answering the research questions and hence the study’s objectives.

Results and analysis

An evaluation of different secondary data shows that the Qatar tourism sector is a critical component of the country’s economic growth. The Qatar government appreciates the contribution of the tourism to the country’s GDP. The sector’s contribution to the Qatari economy has improved considerably over the past decade as illustrated by graph 3 below.

Table 3

Graph 3Graph 3 shows that the largest contribution of the tourism sector to Qatar’s GDP was experienced in 2005. The percentage contribution reduced significantly between 2006 and 2010 from a high of 2.5% to a low of 1.2%. However, between 2011 and 2015, the percentage contribution has increased steadily as depicted by the graph. The Qatar government expects the direct contribution of the sector to the country’s GDP to increase by an annual rate of 4.7% to reach QAR 26.2 billion, which represents 1.7% of the total GDP by 2025 (World Travel & Tourism Council 2014).

The capacity of the sector to contribute substantially to the country’s GDP has been stimulated by the strong performance of the supportive segments that constitute the tourism industry such as travel, hotels, travel agents, and effective passenger transportation. The contribution to the total GDP can be subdivided into three main segments, which include direct, indirect and induced contribution. The graph below illustrates the trend in the contribution of the three segments between 2014 and 2015 and the projected contribution in 2025.

Table 4

Graph 4 shows that the percentage contribution of tourism to the economy’s GDP due to induced, indirect and direct impact of tourism remained relatively stable between 2014 and 2015. However, the projected contribution of the sector to Qatar’s GDP by 2025 is considerably lower as compared to the performance experienced in 2014 and 2015. Moreover, the projected growth in 2025 as illustrated by graph 3 is substantially lower as compared to 2.7% contribution experienced in 2005. Based on these projections, the tourism sector might not sufficiently stimulate the country’s economic growth. In 2014, the sectors’ direct contribution was projected to grow by 9.1 % (World Travel & Tourism Council 2014). The increase in the sector’s contribution to the country’s GDP was projected to arise from improvement in the level of economic activities within the supportive sectors such as the travel, hotel, accommodation and transportation. Furthermore, it is projected that the tourism sector direct contribution to the country’s GDP will grow at an annual rate of 4.5% to reach QAR23.1 billion by 2024(World Travel & Tourism Council 2014). To achieve this projection, it is critical for the Qatar Tourism Authority to focus on exploiting the opportunity presented by its win to host the 2022 FIFA World Cup (World Travel & Tourism Council 2014).

To overcome the slowdown in the sectors’ contribution to the country’s economy, the Qatar government should consider the most effective approach that should be integrated in Qatar Tourism Authority planning process to leverage on the opportunities associated with hosting the 2022 World Cup. Through effective tourism planning, the expected mega event will improve the likelihood of Qatar improving the future sustainability of the tourism sector and hence its contribution to the country’s future economic growth (Chen & Funk 2010).

The secondary data further shows that the tourism sector contributes to economic growth through employment creation. The sector has been a source of employment for a significant proportion of the country’s population. The sector has employed a significant number of people either directly or indirectly. In 2013, the travel and tourism sector contributed QAR 13.6 billion, which accounts for 1.8% of the country’s GDP. Graph 5 shows the trend in the level of employment within the sector over the past decade.

Table 5

Graph 5 shows that the number of new jobs created in the Qatar tourism sector declined significantly between 2007 and 2010. However, the sector’s capacity to create new jobs rebounded between 2011 and 2015. Despite the growth experienced between 2011 and 2015, it is projected that the number of new jobs created will reduce by 2025.

The level of consumption amongst tourist is an essential economic aspect in governments’ quest to exploit the opportunity associated with tourism (Hall 2012). The World Travel & Tourism Council (2014) affirms that the money spent by international tourists within a country is critical in the contribution of a country’s tourism sector to a country’s economy. Therefore, in its process of preparing for the 2022 World Cup, the Qatar government should appreciate the importance of stimulating the tourist’s propensity to consume. Qatar projects the total number of international tourist arrivals reach 5,141,000 by 2025 hence generating a total expenditure of QAR 35 billon. This figure represents a 3.7% annual growth rate (World Travel & Tourism Council 2014). The graph below indicates the trend in visitor exports in Qatar between 2005 and 2015 and the projected growth in visitor exports by 2025.

Table 6

Despite the slow performance in the volume of visitor export in Qatar between 2005 and 2010, graph 6 indicates that the country expects to experience an increase in the size of total visitor exports. The effectiveness with which a country’s tourism sector contributes to economic growth is influenced by the degree of capital investments. The capital investments mainly relate to the requisite infrastructural development such as establishments of hotels and resorts amongst other tourist attraction facilities. An increase in the number of tourists demands a country to have the requisite infrastructures to sustain the long-term development of the tourism sector (Sharma 2004). This aspect is correlated with the TALC theory, which stipulates that tourism progresses through different stages. Sharpley and Telfer (2002, p. 85) affirm that tourism in ‘the contemporary business environment is promoted and politically supported with investment in tourism infra and superstructure’. An increase in the level of capital infrastructure leads to a subsequent increase in the level capital output ratio (Sharpley & Telfer 2002). Over the past few decades, Qatar has experienced an increase in the level of capital investment within the tourism sector as depicted by the graph below.

Table 7

According to graph 7, the level of capital investment in the Qatar tourism sector has improved at a considerably low rate. Despite the fluctuations experienced between 2005 and 2007, the rate of growth has been relatively stable. However, it is projected that the level of capital investment will increase significantly between 2015 and 2025 from QAR 6.8 billion to QAR 14 billion.

One of the core guidelines in bidding to host the World Cup entails a country’s capacity to accommodate the fans. In bidding to host the 2022 World Cup, Qatar pledged its capacity to develop 100,000 rooms, which was above the minimum 60,000 rooms’ requirement by FIFA. Over the past few decades, Qatar has been focused on fulfilling this requirement. One of the strategies that the Qatar Tourism Authority has adopted entails establishing cruise ships that will serve as rooms to be used during the event (Walker 2015). Through this approach, the Qatar Tourism Authority expects to secure 10% of the total FIFA room requirement. Moreover, the QTA is currently rolling out a plan to establish 80 new apartment hotels, which is expected to be actualised within 5 years (Kovessy 2014). Despite the ambitious plan, Qatar continues to experience remarkable pressure to fulfil the promise to host the event successfully. Failure to provide the required accommodation might translate into a negative impact amongst the international tourists visiting Qatar (George & Swart 2012). Subsequently, the capacity of Qatar to sustain the attractiveness of its tourism sector might be impacted negatively. In the event that Qatar is inefficient in satisfying the accommodation requirement during the World Cup, the country might lose a significant proportion of tourists to the neighbouring countries such as the United Arabs Emirates (Trenwith 2015).

Furthermore, a study conducted by Deloitte (2014, p. 7), shows that Qatar ‘could only support around 38,000 hotel rooms after the tournament, based on approximately 60% room occupancy’. Therefore, the capital investment in the Qatar travel and tourism invest with reference to accommodation facilities might not sufficiently support the development of a sustainable tourism sector. To overcome this challenge, the Qatar Tourism Authority should appreciate the importance of ensuring that the tourism generated during the event is sustained. This aspect will ensure that the oversupply of hotels and accommodations facilities established before and during the mega sports event continue to contribute to the country’s economic growth. Currently, the Qatar government in collaboration with other stakeholders in the tourism sector has formulated a comprehensive Vision 2030 strategy aimed at promoting the country’s tourism sector. The strategy focuses on different areas of tourism. First, Qatar projects to improve its ranking with reference to the Travel and Tourism Competitiveness Index [TTCI] (Qatar Tourism Authority 2015). Moreover, Qatar intends to grow the level of domestic tourism.

Qatar has experienced improvement in the level of leisure and business travel spending. By the end of 2013, the contribution of leisure travel spending in Qatar was estimated to be 30.1% of the country’s GDP compared to the 69.9% contribution from the business travel spending. The country expects leisure and business travel spending to increase to QAR 11.7 billion and QAR 39.5 billion by 2024 (World Travel & Tourism Council 2014). This aspect indicates the existence of potential within the different areas of tourism.

Summary of Findings, conclusion, and recommendations

Introduction

The purpose of this paper is to illustrate whether Qatar made the right decision in bidding to host the 2022 World Cup. This decision is founded on the rationale that the event will contribute to the country’s economic growth through promotion of tourism. However, the capacity of Qatar leveraging on the mega sports event in developing a sustainable tourism sector will be influenced by the effectiveness with which the Qatar government undertakes innovative approaches in its tourism planning process. This chapter summarises the entire research. It first provides a brief summary of the whole study with particular reference to the research problem, research methodology, results, the main contributions of the research and recommendations.

Summary of the main findings

The study shows that Qatar has experienced strong economic performance as illustrated by the trend in it GDP. Moreover, the country has managed to maintain the rate of unemployment at a substantially low level. The study identifies the tourism sector as a vital component in the country’s economic growth. Despite the fact that Qatar is characterised by substantial oil and gas reserve, the Qatar government has been focused on exploiting the opportunities available in the tourism sector. This shift has arisen from the increase in the level of challenges associated with production and marketing hydrocarbon products. The study’s results show that the contribution of the tourism sector to the country’s GDP has increased substantially over the past decade.

The sector’s efficiency in strengthening the country’s economic performance arises from its capacity to support other industries either through direct, indirect or induced means. Subsequently, the sector has created employment to a sizeable population hence increasing the consumers’ purchasing power. Some of the supportive industries that have benefited from the growth experienced in the tourism sector include the travel, accommodation and the hotel industries. The study underscores the growth in the Qatar tourism sector by highlighting the increase in the number of tourists that visit the country annually. Consequently, the volume of visitor exports in Qatar has grown considerably. The study further shows that the Qatar tourism sector has experienced significant fluctuation with reference to its performance. Nevertheless, the sector has been considerably resilient as illustrated by the steady improvement in its contribution to the country’s economy.

Despite its past performance, the sector’s performance over the next decade is projected to slow down as depicted by the 2025 projections. Therefore, it is imperative for Qatar to be concerned on how to establish a vibrant tourism sector. The country’s successful bid to host the 2022 FIFA World Cup presents an opportunity for Qatar to strengthen the contribution of the tourism sector to the country. However, exploiting the mega sports event as a catalyst for improving the performance of the tourism sector will depend on the efficiency with which Qatar Tourism Authority adjusts its approach to tourism planning.

Conclusion

The Qatar government intends to stimulate country’s economic performance through economic diversification. One of the economic sectors that the government has identified to be characterised by a high potential for enhancing the country’s economic performance entails the tourism sector. Despite the fact that the tourism sector has remarkably contributed to the country’s economic performance, the sector’s projected performance over the next decade is expected to be relatively low. However, Qatar’s winning of the bid to host the 2022 World Cup presents an opportunity for the country to stimulate the future performance of the tourism sector. Therefore, the Qatar government did not err in bidding to host the event. The literature review conducted shows that hosting mega sports events has been of great economic benefits to countries that have previously hosted the mega sports events such as Germany and South Africa.

The mega sports event will significantly improve the country’s visibility in the global market. This scenario will play out due to the extensive media coverage that is associated with the FIFA World Cup. It is expected that the mega sports event will attract a substantial number of fans both locally and internationally. Thus, the level of consumption during the sports event is expected to be high. To facilitate the successful hosting of the event, the Qatar government is expected to invest a substantial amount of money in establishing the requisite infrastructure such as accommodation and transport facilities. The study shows that Qatar might experience a shortfall with reference to its capacity to accommodate the fans and tourists during the mega sports event. Thus, the country might lose revenue to the neighbouring countries such as the United Arab Emirates. The accommodation challenge might hamper the development of a positive perception regarding the country’s tourism sector amongst the fans. Therefore, the sustainability of the country’s tourism sector and the profitability of the facilities established after the event is a major challenge.

Recommendations

From the study, it is evident that hosting a mega sports event influences the future performance of a country’s tourism sector. One of the issues that emerge from the study relates to the sustainability of the high level of tourism generated during the 2022 World Cup. Despite the fact that Qatar has formulated comprehensive Vision 2030 strategy targeting the tourism sector, it is imperative for the government to appreciate the importance of adjusting the strategy to improve the probability of establishing sustainable growth in the tourism sector. To improve the sustainability of the tourism sector, the Qatar Tourism Authority should focus on the following aspects.

Branding

Considering the extensive media coverage associated with hosting a World Cup, it is imperative for the QTA to consider the most effective way of improving the country’s visibility. One of the approaches through which the country can achieve this goal relates to creating awareness of the country’s tourist destination (Zhang & Zhao 2009). The government should invest a substantial amount of money in conducting a global marketing campaign on the tourist destinations in Qatar. The government should ensure the message on the tourist destinations is developed effectively to create sufficient level of awareness (Kaplanidou 2007). This approach will lead to the establishment of interest amongst the local and international tourists hence improving consumption (Chalip & Costa 2005). Subsequently, the country will experience a remarkable growth in the level of domestic and foreign tourism. In the course of branding Qatar as a tourist destination, the Qatar Tourism Authority should focus on two main areas of tourism that include the leisure and business tourism.

Destination Management Organisation

The Qatar Tourism Authority should establish a destination management organisation, which should be charged with the responsibility of ensuring continuity of the attractiveness of the tourist attraction destination. Therefore, the DMO should undertake continuous marketing and management of the destination. The operation of the DMO should involve collaboration with different stakeholders such as the tourist bureaus. Moreover, the DMOs should be established at the local, regional and national levels (Bornhorst, Ritchie, & Sheehan 2009). This consideration will play an essential role in motivating the fans visiting the country for the event to visit the various tourist attraction destinations during and after the sports event (Gibson, Qi, & Zhang 2008). Moreover, the DMO will improve Qatar’s efficiency in promoting a positive visitor experience. Through this approach, the Qatar Tourism Authority will succeed in increasing the contribution of the tourism sector through direct, indirect and induced impacts (Blackman, Kennedy, & Ritchie 2011). For example, the level of capital investment in the tourism will grow substantially.

Sustainability of the travel and accommodation facilities

The study shows that the future sustainability of the infrastructure established to support the mega sports event in improving the country’s economic performance is a major issue. Thus, the Qatar Tourism Authority should be concerned with formulating a plan aimed at ensuring that the economic significance of the facilities. One of the aspects that the country should consider entails entering into strategic partnership with the private sector. The public-private partnership should focus on how to ensure continuity of tourism activities in the regions within which the facilities are established (Mohan 2010). An example of the issues that the strategic partnership should consider entails promotion of business and other cultural activities in such regions. Thus, the Qatar Travel Authority will lead to improvement in sustainability of tourism due to the emergence of business, leisure and cultural tourism. This aspect will play an essential role in stimulating domestic and international tourism.

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Introduction

• Byron bay is a beachside town in New South Wales. It is located in the far northeastern corner of the country (Bureau of Tourism Research, 2001).
• The town is home for more than 28,000 residents.
• The town boasts its wealth in the tourism sector. It has several beaches that are popular for surfing (Ludwig, 1988).
• It is also a resort that has become popular with both domestic and international tourists.
• The type of tourists visiting include backpackers, among others.
• Tourism activities include whale watching, scuba diving and snorkeling (Abnett and Realty, 1999).

Planning and development stages

• Based on the course outline, Byron Bay was selected as a suitable case study.
• Research was done on the case study and relevant literature collected.
• The main issues in the tourism industry of the case study were assessed based on the existing literature.
• Based on the issues identified earlier, alternatives have been proposed.

Overview and key issues

• With increased tourism activities, there is increase in cases of uncontrolled holiday rentals in residential areas. This causes disturbances due to noise pollution.
• There is traffic congestion and lack of parking space.
• They cause negative impacts on the environment. The policies in place do not seem to ensure sustainability.
• There is risk of loss of the town’s cultural identity.
• There are issues with planning legislation that control tourism development.
• Most screens of the blackberry phones are small and make reading texts or enjoying applications difficult.

Policies in tourism planning

• Tourism is the economic lifeblood in Byron (Richardson, 1994).
• In the quest to maximize returns from tourism, the tourists visiting Byron are welcome with no consideration on the impact of tourism pressure.
• The legislative framework appears deficient in regulating some of the activities by the tourists (such as noise) that seem to cause conflict.
• The coalition roads policy is starting to recognize the need to improve its infrastructure in order to ease traffic congestion and delays.
• The state also recognized the pressure in the sewerage system due to the population pressure.

Main stakeholder considerations

• In Byron, the main stakeholder considerations during the policy making process seem to be the tourists.
• Tourism is the main economic activity; the only way to foster it is by giving priority to the tourists and ensuring their comfort (mostly at the expense of its resident’s comfort).
• Many residents leave the town due to the unfavorable environment created by the tourists.
• However, efforts have been underway to try to make tourism sustainable.
• Some of the efforts include setting aside funds to enable studies to be conducted in order to ensure sustainability in tourism management in Byron Bay (Rob, 2001).

Results of the tourism development

Economic growth

• Since tourism is fully exploited in Byron Bay, the economic returns are high (Backer, 2002).
• Tourism is diversified with the availability of various tourism activities that attract tourists of all kinds.

Employment

• With the increase in tourist attraction sites, the need to increase workforce arises which this implies an increase in employment in the tourism industry.

Environmental impact

• The increase in customer number exerts a great pressure on the available resources and the residents of the area (Bannister, 1997).
• Increase in noise pollution due to freedom that tourists enjoy.
• Deterioration in the sewage system due to population pressure.

Community

• It is evident that the population pressure is now having its toll on the indigenous community. This has caused an increase in the community resistance (Jackson, 1990).
• Uncontrolled rentals in residential areas are causing discomfort to the community.

Social and cultural considerations

• Due to the ever-increasing number of visitors from various cultures, the risk of culture erosion is posing a threat to the residents’ identity (Rob, 2002).

Sustainability and visitor satisfaction

• Since priority is given to the tourists, there is customer satisfaction (Butler, 1980). However, if tourism is not made sustainable, there may be customer dissatisfaction in the near future.

Proposed alternative strategy

• The population pressure is becoming high. Therefore, the leaders of the country should limit the number of tourists visiting the area.
• Priority should be given to those visiting the area for a short while.
• The infrastructure should be developed to sustain the population.
• The sewage system should be able to sustain the population.
• Regulations should be put in place in order to ensure that the environment is sustained and the cultures of the people preserved.

References

Abnett, C & Realty, R 1999, Draft Report on the Byron Bay, Suffolk Park, Ewingsdale and Brunswick Heads Tourism Capacity Study, Brisbane.

Backer, E 2002, The importance, and tourism potential of the visiting friends and relatives (VFR) market to coastal and hinterland communities within Eastern Australia, NSW, Lismore.

Bannister, B 1997, Attitudes of residents towards the economic, social and environmental impacts of tourism on Byron Bay, NSW, Lismore.

Bureau of Tourism Research, 2001, Northern Rivers – Tropical NSW Region, Tourism Profile, Sydney.

Butler, R 1980, Concept of a Tourist Area Life Cycle Evolution, Canadian Geographer, Canada.

Jackson, R 1990, ‘VFR Tourism: Is It Underestimated?’, The Journal of Tourism Studies, vol. 1, no. 2, pp. 1-21.

Ludwig, R 1988, Byron Shire Tourism Plan, Mullumbimby, Lismore.

Richardson, L 1994, What attracts People to Byron Bay, NSW, Lismore.

Rob, T 2001, Study of Visitor Information Centre Establishment and Operation, QLD, Coolum Beach.

Rob, T 2002, Study of National Tourism Trends: Internal Working Paper, QLD, Coolum Beach.

Introduction

Wight (1996) defines sustainability as the ability to maintain a certain situation or state. It is the ability to take and use what we require now without having to affect the needs of the future generation. It can also be said to be the act of maintaining something to an unlimited future period. Hospitality on the other hand may be defined as the process of treating people especially strangers or guests with goodwill or with a good heart (Jacques 2000). Sustainability in hospitality can therefore be defined as the process of maintaining goodwill among the people one interacts with. The review aims at coming up with themes which support the fact that sustainability in hospitality is compatible or directly affects profitability.

According to Jacques (2000) hospitality mainly comes into effect in those areas where people need to interact directly with one another. Every firm’s aim is to make profits and those firms which directly relate with their clients need to ensure that they maintain proper hospitality standards in order to promote their profitability measures. This means that the commercial sector and the tourism industry need to critically look into means of ensuring hospitality in order to attract sales and in turn increase their profitability. The review carries out an objective study of the major areas where profitability co-relates with sustainability in hospitality.

The study helps to identify the various ways in which a firm may create hospitable conditions so as to promote their profits. It also brings out the concept of compatibility between sustainability in hospitality and profitability in different sectors of the economy.

There are major areas in which sustainability in hospitality and profitability may be said to be compatible with each other. One broad area is the tourism industry where hospitality plays a key role in promoting its growth. The tourism sector must apply hospitality ethics in its management and in most cases, hospitality and tourism comes as two distinct practices that are dependent on each other. Therefore, promoting sustainability in hospitality in the tourism sector is one way of enabling the industry to flourish (Wight 1996). The study looks at the ways in which the sector’s sustainability in hospitality may be said to be compatible with its profitability.

According to Gillepsie (2000) sustainability in hospitality is also important in the commercial sector like hotels and other companies that operate directly with their customers. In business enterprises, hospitality creates a basis for improving their services and marketing their products and in this aspect it can be argued that the business enterprises would be required to observe ethics in hospitality for them to make their ventures profitable. Sustaining hospitality in the business sector should therefore be a major factor to consider in promoting growth and enhancing its success.

The literature will focus on these two sectors in bringing out the concept of compatibility between sustaining hospitality and promoting profitability. The sectors, tourism sector and commercial sector will form the themes of the literature review since their success depends on how well they treat their clients and this bases the judgment on how sustainability in hospitality co-relates with profitability.

The tourism industry

The tourism industry is one major sector that enhances hospitality in its operations. In the recent society, it has been deemed necessary to create the hospitality industry with an aim of working hand in hand with other sectors towards fulfilling their objectives. The industry sets ethics, generally known as hospitality ethics, to enhance good relations in the entire community. Hospitality and tourism combine their services to provide the best to the society and at the same time increase their profits. Good behavior is a requirement for the tourism industry because it is only through treating tourists properly that the industry can attract more customers.

Therefore one major way of marketing the tourism sector is by offering hospitable conditions. The World Tourism Organization has come up with a code of ethics that is supposed to guide tourism industries on the proper way to handle their clients and this way, it has become clear that the sector may not survive without enhancing hospitality (Clifford 1999).

Wight (1996) argues that tourism is part of sustainable development in a country and the extent to which a country is able to create good destinations depends on the natural and cultural/social environment; the natural environment because, it forms the basis for tourist attraction sites and the cultural and social environment because, tourists greatly interact with the people of the country when they visit. This means that for sustainable tourism to work, a country must develop its natural factors that attract the tourists and must also enhance the good relations between the tourists, their guides and the local community.

This means that hospitality must be enhanced in order to maintain tourists and attract many others. A hospitable community is one whose cultural values take into consideration the well-being of other people including the foreigners. The morals of a community play an important aspect in promoting hospitality of the community towards strangers and since tourism involves dealing with people from other parts of the world, there is need to ensure that the morals and values in the tourism sector are focused towards making the tourists feel important and appreciated.

Sustaining hospitality-is it compatible with profitability?

According to Wight (1996), tourism involves developing ways of promoting quality products in the industry without negatively affecting the natural and social environment which sustains it. This means that the industry ought to critically review the norms and values to be used in order to ensure that they are able to benefit more from the tourist visits. The tourism industry plays an important part in the development of a country and every country ought to market its destinations in order to win more tourists from its competitors. For the industry to benefit the country it must be profitable, that is, the benefits gained from having the tourists in the country must exceed the costs incurred. The benefits of tourism include creating revenue for the country, job creation and regional development. These benefits are gained if the sector is flourishing and in this aspect favorable conditions need to be created for the tourists to enjoy the services of the host country.

Hospitality in the tourism sector involves properly educating the local community on the proper way to welcome the visitors. It involves creating awareness to the community on the importance of tourism in the country. This will help the community to appreciate the tourists and enhance good relations with them. When the tourists feel appreciated, they enjoy their stay and they will be willing to offer their services for the benefit of the country in general.

The tourism industry will then grow and there will be greater room for attracting more visitors and promoting growth and development in the country. This means that through maintaining a hospitable environment for the tourists, the industry grows and earns higher revenues. It can hence be argued that in the tourism sector, sustainability in hospitality directly relates to the profitability of the sector. Tourists will be motivated to tour the country and this will help the industry make great sales of their services and in turn promote higher profits. Hospitality needs to be sustained all through in order to ensure that there will be progressive growth in the sector even in the future (Lindberg 1997).

The Commercial Sector

The theme of the commercial sector implies those enterprises that are concerned with selling goods or services to the benefit of the society. They buy or produce goods and services and sell them to the general public with the major aim of making profits as they also satisfy the needs of the society. The commercial enterprises normally set standards which they must meet in order to be profitable and they are guided by these standards. They aim at providing the best for their customers so that they can win large markets and make high sales (Gillepsie 2000).

According to Gillepsie (2000) one major feature found in the commercial sector is the competitiveness in the market. For instance, the motor vehicle industry is a commercial industry and its activity involves buying vehicles or their unassembled parts and then assembling them to produce vehicles which are then sold to the general public at a profit. There are many companies in the motor vehicle industry and each of these companies must ensure that they win as large markets as possible. They do this by ensuring that they offer the best services to their clients. Hospitality in the commercial sector would therefore create a basis for acquiring markets for their goods and services.

A motor vehicle industry that takes care of the relations between the entrepreneurs and the customers will make higher sales than that which is not concerned with the welfare of its clients. To promote their markets, therefore, the industries ought to take into consideration the social factors of both the owners of the businesses and their prospective buyers, especially where the business involves direct interaction with the buyers.

Sustaining hospitality and its compatibility in profitability

Unlike the tourism sector, the commercial sector need not critically emphasize on the means of sustaining hospitality among its clients. This is because commercial is mainly concerned with increasing their sales which can be made even without directly associating with its clients. The sector should aim at providing the needs of the society and through providing these needs, markets are created and both the buyers and sellers benefit. Hospitality comes in to ensure that the sellers provide the buyers with a suitable environment that will encourage them to buy their products even in the future. In this aspect, hospitality may or may not be compatible with profitability in the commercial sector, mainly depending with the kind of business that they are carrying out (Morrison 2000).

Those sectors that provide intangible services to their clients must ensure that they offer hospitable conditions for them to make profits. This is because most people will opt to buy the services of those industries that take into consideration their social needs like the need to be recognized and appreciated. Therefore, other than providing quality services, hospitality is also important as a way of increasing the profits of the service providers. On the other hand, while providing tangible goods, the major factor to consider is the quality of these goods. Since the goods industries need not directly interact with their markets, sustaining hospitality is not a priority and it may be compatible to profitability. Profitability in these industries can be promoted by taking into consideration other factors like providing the basic needs to the buyers other than sustaining hospitality between the buyers and the sellers (Morrison 2000).

Social enterprises

Ridley (2008) defines social enterprises as those enterprises or organizations that aim at providing services to the society in general. They may be business oriented but they focus their services to the society and their activities are based on the social needs and they may or may not make profits. Most government enterprises can be referred to as social enterprises and sustaining hospitality in these organizations is a core aspect. This is because their aim is to accomplish social targets as well as the financial targets and to meet them both, there must be conducive and good conditions for the society. The enterprises gain profits from the sales they make to the society and they use these profits to further improve the living standards of the society. This implies that the social enterprises are incompatible with the general society; they must work hand in hand to fulfill the desires of both parties.

According to Ridley (2008), sustainability in hospitality is very important among the social enterprises for them to promote their profits. Unlike the commercial enterprises, the social enterprises must take into consideration the desires of the society and it is through this that measures of promoting hospitality need to be emphasized on. The enterprises directly work with the society and it is important that the society feels appreciated so that they may obtain services from the enterprises and in turn improve their sales and increase their profits.

Conclusion

To conclude, it can be argued that sustainability in hospitality is a necessary aspect in major areas of our social and economic well-being. Hospitality ought not to be a one-time factor but it should be made a long term goal in most enterprises. It can also be noted that hospitality determines the profitability of those sectors that directly deal with their clients because it is one major way of marketing their services. Where the sectors need not handle their clients directly, the concept of hospitality may not affect the profitability and it may be argued that in this case sustainability in hospitality is compatible with profitability.

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