Tourism industry in Argentina has been growing at a commendable rate in the past couple of years despite the global and local economic crisis. The industry is basically boosted by presence of magnificent natural assets. The country has an extended geographical extension that favors the presence of natural assets.
There are also rich cultural offerings that attract tourists. In January 2010, Argentina tourism industry recorded the strongest position in a period of ten years. According to world tourism news (2010, 1), the number of tourist grew by 10.2% in January 2010 compared to the last decade.
The government recorded 9.5 million passengers and the number was projected to grow by a big percentage in the following months. As stated by Enrique Meyer, the secretary of tourism in Argentina, the growth will accelerate in February and March 2010. The provincial and municipal tourism projected 11% growth by the end of January 2010.
According World tourism news (2010, 1), quoting the report by the bureau of market research and statistics secretary, stated that the growth of Argentina tourism industry for the last decade was a contribution of both local and foreign tourists. The number of foreign tourists to Argentina especially for summer season has been growing by 32% between 2003 and 2009.
Despite the strong position of Argentina tourism industry, the growth has not been consistent over years due to existence of economic crises in the country. These crises have significant effects on tourism industry. The objective of this essay is to explore the effects of the economic crisis on tourism in Argentina and the recovery process.
Effects of economic crisis on tourism in Argentina
The most recent economic crisis in Argentina was experienced between 1999 and 2002 and was a big blow to the economy. The crisis was associated with currency and financial crisis where the fixed exchange rate regime and government policies failed. The Argentina currency Peso was exchanged for US dollar at a fixed rate on 50-50 basis. This means that one US dollar was exchanged for one Peso. This made Peso to appear very strong compared to other currencies.
As a result, travel to Argentina from other countries which have weak currencies became quite expensive. This is because the exchange rate for Peso to other currencies was very high. Tourists found it too expensive to travel to Argentina. The number of tourists coming to Argentina declined sharply. Tourism industry suffered huge losses as a result. The trend was different to the local tourists in that the fixed rate of Peso against US dollar favored their travel outside Argentina.
It was cheap for Argentina’s local tourists to travel to countries which have a currency weaker than Peso. The tourism industry lost a lot of money that it would otherwise have earned from local tourists. Domingo Cavallo, the minister of economy in Argentina in 2000, had a policy of revamping the convertibility system of Peso against dollar and euro (Tonelson, 2002, 1). He proposed that Peso be exchanged on 50-50 basis against both dollar and euro.
This policy worsened the situation in the country because euro and US Dollar were at their strongest season. According to World Tourism Organization (2008, 1), travel to Argentina became extremely expensive and the number of tourists declined.
Due to the crisis of 2002, the government of Argentina under Eduardo Duhalde as president came up with a policy of devaluing Peso by 40% against the US dollar. This is following his allegations that the current recession was due to the convertibility system of Peso against US dollar and euro.
The devaluation of Peso favored travel to Argentina because it became cheaper. This increased the number of tourists coming to Argentina. However, most of the tourists who visited Buenos Aires, the most colorful tourists’ city in Latin America, had a different agenda.
Buenos Aires is a very attractive tourist city with many museums, diverse culture and beautiful scenarios among others. The city has very skilled doctors and health care system is well advanced. Most American tourists took advantage of the collapse of Peso and came to Argentina for medical tourism. They knew they will receive world class health care in Buenos Aires for only a fraction of what it would cost them in United States.
The coming of tourists from America therefore did not benefit the tourism industry in Argentina as was expected. They came to take the advantage of cheap world class treatment in Buenos Aires but not to tour the gorgeous scenarios of the city. They spent most of their stay in Buenos Aires in hospital instead of visiting the tourist cites in Argentina.
The economic crisis of 1999 to 2002 also caused political unrest in Argentina where there were demonstrations and riots of people dissatisfied with the government and its policies. This is because the government policies were affecting their businesses. For instance, fixed exchange rate regime made Argentina exports very expensive and undesirable.
According to Tourism Review (2008, 1), political unrest in any country scares foreign tourists because they fear that there might be insecurity in that country. Argentina was not exceptional and therefore tourism industry was affected.
The time of crisis also affected local tourists in Argentina as they reduced their spending on tourism. People tend to conserve their cash when economic times are unfavorable to cater for their basic needs and fear of uncertainty (Santana, 2003, 23). This caused local tourists in Argentina to reduce their spending on tourism.
The recovery process of tourism industry in Argentina
The recovery process of tourism in Argentina started in 2002 following the crisis that occurred from 1999 to 2002. The first step toward recovery was abolition of fixed exchange rate by the government of Argentina and return of political stability. Prior to this abolition, the Argentina currency, Peso was trading at a fixed exchange rate on 50-50 basis against the US dollar. This was unfavorable for tourists because travel to Argentina was expensive.
When Eduardo Duhalde took over power as president towards the end of 2002, he abolished fixed exchange rate and devalued peso by 40% against the US dollar. According to Argentina tourism report (2003, 1), devaluation of Peso made travel to Argentina cheap for foreigners. As a result, there was huge influx of foreign tourists from the neighboring Latin America and the rest of the world.
Devaluation of Peso also affected argentines travel to other countries. It became expensive to travel to other countries and therefore they found it cheaper to spend their vacation in their country. The number of local tourists in Argentina increased as a result
According to Argentina tourism report (2003, 1), the government of Argentina projected the number of foreign tourists to increase to 10 million by 2010 compared to 3 million recorded in 2001. To achieve this, the government plans to target North America and Europe as the main sources of tourists. The government also plans to adequately fund tourism infrastructure in order to improve their quality and quantity.
The exchange rate will also be maintained at the current level to favor the travel of many tourists to Argentina. To attract local tourists, the government will charge them a relatively low price than the foreigners. The secretary of tourism also announced the government’s commitment to formulate policies that will improve infrastructure, air transportation and other facilities that will ensure better services to the tourists.
Conclusion
Although tourism in Argentina was greatly affected by the economic crisis, the current steps seem to take it to a higher level. The commitment of government to boost the industry is a bright idea. However, the tourism industry should not limit the target market to the neighboring Latin America and Europe. Instead, the target market should be expanded to the rest of the world in order to fetch huge benefits.
Reference List
Argentina tourism report. 2003. Argentine Tourism as a Source of Growth and Employment. Buenos Aires. Economic Section U.S. Embassy. Web.
Santana, G., 2003. Tourism in South America. New York: oxford university press.
Tonelson, A., 2002. The real root of argentine financial crisis. New York: United States business & industry council. Web.
Tourism is the largest economic activity in the world that involves multiple actors who play different roles in the industry. Urry (2002, p.2) states that tourism can play an integral role in the economic development of a country. Through this activity, countries are able to earn foreign income and create new employment opportunities for their citizens. One subset of tourism that has received significant interest from researchers is sex tourism.
This paper will engage in concise yet informative research on sex tourism. The paper will define this subset of tourism and highlight the major drivers for the industry. The paper will focus on Thailand, a country that is renowned for its thriving sex tourism sector. The significant benefits and demerits of sex tourism will be highlighted in order to show that this industry brings about financial and societal costs to the countries that allow it.
Brief Overview of Sex Tourism
Tourism is a major industry that involves traveling to new places for holiday purposes. Urry (2002, p.2) defines tourism as a leisure activity that is characterized by traveling to a new destination and staying in the new place or places for enjoyment purposes.
Tourism contributes significantly to the world economy with the World Tourism Organization (2014), placing its contribution at 9% of the world GDP. This industry is growing, and Laing and Crouch (2011, p.1516) state that increasing numbers of people across the globe are engaging in tourism. The tourism industry employs a large number of people, both directly and indirectly.
Sex tourism is one subset of tourism that continues to thrive on a global scale. By definition, sex tourism refers to “tourists who travel to other countries, specifically to purchase the sexual services of local women and men” (Nuttavuthisit, 2007, p. 23). Over the past few decades, the sex tourism industry has diversified beyond its traditional patriarchal form of exploitation and leisure with Garrick (2005, p.497) documenting that sex tourism is no longer restricted to Western men traveling to have sex with Third World women. The industry has expanded to include Western females engaging in commercial sex with Third World men and even gay sex tourism.
A major aspect of sex tourism is the commoditization of the bodies of the participants in the destination country. Pettman (2007, p.94) states that in sex tourism, the bodies of women, children, and young men become commoditized. The tourists are the buyers who choose the person they want, and for a price, they are provided with sexual services. Sex tourism has become prevalent, especially in South-East Asia and some African countries which are visited by about 3.5 million sex tourists annually (Xavier, 2004, p.542).
In spite of the prevalence of sex tourism, few travelers are willing to identify with the label of “sex tourist.” Garrick (2005, p.498) explains that many sex tourists are unwilling to identify with this label due to the negative stigmas associated with it, such as being called exploiters or dirty old men.
Child Sex Tourism
A more sinister aspect of sex tourism is that it sometimes involved children. Montgomery (2008, p.904) notes that while the morality of adult prostitution is open to debate, child sex tourism is found objectionable by a large segment of the global population. Unlike other aspects of sex tourism, child sex tourism is classified as a national or international crime by UNICEF and the Interpol (Xavier, 2004, p.542).
While adult prostitution is legal in some countries, tourism for the purpose of sexual relationship with a minor is a crime (Tepelus, 2008, p.103). A report by the children’s charity Save the Children indicates that 3.5 million individuals travel to Africa, Southeast Asia, and eastern Europe for the express reason of finding children to have sex with (Xavier, 2004, p.542). Asia has the largest numbers of child prostitutes with countries such as Thailand having 800,000 child prostitutes while India has 600,000 (Tepelus, 2008, p.104).
Tourists are attracted to children since there is a misconception that children are likely to be free from sexually transmitted infections. In addition to this, some sex tourists have a history of abusing children in their home country, and they therefore specifically target children in the tourist destination (Tepelus, 2008, p.104). Children between 3 and 17 years are exploited by sex tourists who mainly come from France, Italy, and Germany.
The situation of child exploitation by sex tourists is made worse by the fact that in some countries, the legal age of consent is 12 years old. A tourist can therefore legally have sex with a child in such countries. It is estimated that sex tourists are exploiting 2 million children from all over the world each year. This number is a modest estimation since the true scale of sexual exploited is difficult to quantify since, as Xavier (2004, p.542) observes, cases of child exploitation are rarely reported by most governments.
Drivers for Sex Tourism
A number of significant factors fuel sex tourism all over the world. To begin with, there is the desire of many Western men to have sex with women of different races to theirs as noted by Garrick (2005, p.499) who documents that there is a popularization of interracial sexual encounters due to the erotic idealization by the tourists. Many individuals have an erotic view of the culture other than their own. This view is in part encouraged by tourism advertisements, which represent the natives as exotic.
Garrick (2005) declares that the sex tourism industry thrives upon “the eroticization of the cultural Other and racist stereotypes towards Third World women who represent the ‘exotic’ Other are used as marketing tools” (p. 499). Pettman (2007, p.96) confirms that many hosting nations entice tourists by presenting their women as part of the tourist attraction of the country.
Laing and Crouch (2011, p.1527) note that many tourists are attracted to the “exotic” that the new destination offers. While this exotic mostly refers to culture and natural sceneries, it sometimes extends to the people in a foreign destination.
Racism also contributes to the development of sex tourism. Deeply racist notions enable tourists from Western nations to rationalize their sexual activities with Third World women. Normally, involvement in commercial sex with women from economically less fortunate nations might lead to guilty feelings by the client. However, racist notions by the tourist enable himself to view the commercial sex workers from the foreign country as racially inferior.
The guilt that should accompany having sex with these Third World women is therefore decreased due to the race of the prostitutes. Garrick (2005, p.499) notes that racism has actually bolstered incidences of Western men engaging in commercial sex with minority women.
The submissive nature of women in the host nation also promotes sex tourism. Most sex workers assume a servile role, and they serve the Western in any way in exchange for money. According to Garrick (2005, p.500), the submissive role of the sex workers is in sharp contrast to the assertive nature of many Western women.
Garrick (2005, p.500) states that sex tourism provides an opportunity for many Western men to regain their “patriarchal rights” to women’s bodies. Most female prostitutes in Third World nations do not demand anything from Western males except for the provision of money. Their perceived lack of autonomy and assertiveness is attractive to many men who seek to reassert their masculinity.
The act of traveling also appears to encourage sex tourism among some individuals. When a person travels, he leaves a familiar place and experiences a new destination. In this new destination, some people feel that they can engage in activities that they would otherwise suppress in a familiar place.
In addition to this, traveling creates distance between the tourist’s home country and the vacation location. Garrick (2005, p.502) notes that when a person travels to a new location, he/she experiences anonymity in the new location. The tourist is not known by others in a foreign place. This facilitates the ease with which tourists can engage in sex with local prostitutes.
Benefits of Sex Tourism
In spite of the negative perception of sex tourism, it is a major source of income for some countries. Many Third World countries that have a thriving tourism industry get significant income from sex tourists. A substantial number of tourists travel with the intention of obtaining sex in their holiday destination. For this reason, some countries are able to enjoy the booming tourism business due to the sex industry. In this way, sexual labor becomes a means through which the country can earn foreign exchange.
Nuttavuthisit (2007, p.23) notes that because of the high revenue obtained from this sector, some countries actually try to promote the business. For example, in Thailand, the tourism sex industry is an organized business with bars and brothels set up explicitly to serve the demands of sex tourists. The economic role of sex tourism in many Third World countries is significant, and since little has been done to inhibit sex tourism, it can be expected to remain high in future years.
Sex tourism acts as a source of employment for many individuals in some countries, particularly those coming from poor socioeconomic backgrounds. In Thailand, a country that is a favorite destination for many sex tourists, it is estimated that there are between 200,000 and 300,000 sex workers.
Nuttavuthisit (2007, p.23) notes that many people who work in this industry are attracted to the business since it provides an easy way to earn money using one’s body. For most people who participate in this business, the only alternatives would be low paying and hard jobs such as domestic work or physical labor.
Demerits of Sex Tourism
Thailand is one country that is struggling to deal with the negative image of sex tourism. Thailand’s sex industry has become a prominent tourist attraction for the country, leading to some guidebooks explicitly recommending red-light districts that tourists visiting the country can go to obtain sex services.
Nuttavuthisit (2007, p.21) notes that while the country offers many impressive tourist attractions such as captivating natural beauty and local hospitality, sadly Thailand is best known for the thriving sex tourism industry. In spite of numerous attempts by the country to rebrand itself, many people continue to regard Thailand as the sex destination.
The ability of the country to attract many tourists from all over the world is hampered by this negative stereotype of Thailand as the sex tourism destination of choice. In a survey carried out by Nuttavuthisit (2007, p.24) to gauge the view held by foreigners about Thailand, 60% of the surveyed tourists express a dislike of the country due to the sex industry. The country, therefore, suffers from a loss of tourists who would otherwise be willing to visit the country for its other tourist attractions.
The health of individuals who actively participate in sex tourism is often negatively affected. The prostitutes who provide services to the tourists often have sex with multiple partners each night. On the same note, tourists have been documented to have sex with multiple prostitutes during the course of their holidays (Garrick, 2005, p.503).
Having sex with multiple partners exposes the individual to a myriad of sexually transmitted diseases. As such, sex trade introduces the problems of sexually transmitted diseases in the host county. Infections such as HIV and AIDS are prevalent among commercial sex workers and their clients (Nuttavuthisit, 2007, p.23).
Sex tourism also promotes human trafficking activities. A report by Tepelus (2008, p.101) indicates that there is a demand for trafficked persons in the major destination countries for sex tourists. Women and children are the major victims of this trafficking that occurs to meet the demands of more prostitutes for the sex tourism industry. Trafficked individuals are preferred by brothel owners since they can be paid cheaply or even forced to work for free.
Significantly, there is a link between child sex tourism with trafficking in human beings. The UNICEF reports that about 1.2 million children are trafficked each year to participate in sex tourism (Tepelus, 2008, p.104).
Conclusion
This paper set out to discuss the sex tourism industry. It began by highlighting the importance of tourism. It then described sex tourism as they travel with the intention of having sexual relations with commercial sex workers in the destination country. Sex tourism is on the rise since it contributes to the economic well being of individuals in the host country.
The destination country is able to benefit from the foreign currency brought by the tourists. However, the industry has dire repercussions that include the tarnishing of the nation’s image and exposure to SDIs by the commercial sex workers. Considering this major negative consequences of sex tourism, governments should take steps to curb and eventually dismantle this detrimental industry.
References
Garrick, D. (2005). Excuses, Excuses: Rationalisations of Western Sex Tourists in Thailand. Current Issues in Tourism, 8(6), 497-509.
Laing, J. H., & Crouch, G. (2011). Frontier Tourism Retracing Mythic Journeys. Annals of Tourism Research, 38(4), 1516–1534,
Montgomery, H. (2008). Buying Innocence: child-sex tourists in Thailand. Third World Quarterly, 29(5), 903-917.
Nuttavuthisit, K. (2007). Branding Thailand: Correcting the negative image of sex tourism. Place Branding & Public Diplomacy, 3(1), 21-30.
Pettman, J. (2007). Body politics: international sex tourism. Third World Quarterly, 18(1), 93-108.
Tepelus, C. (2008). Social responsibility and innovation on trafficking and child sex tourism: Morphing of practice into sustainable tourism policies? Tourism & Hospitality Research, 8(2), 98-115.
Urry, J. (2002). Tourist Gaze. London: Sage Publications.
Xavier, B. (2004). Spain makes plans to combat sex tourism. Lancet. 363(9), 542-542.
Radisson Hotels are located in a number of the developed countries in the world. What are the peculiarities of their management strategy? How are these features connected with the local peculiarities and problems which can be experienced in Radisson Hotels all over the world?
The main problem which is connected with the features of the management in Radisson Hotels in Dubai depends on the high level of business competition within the industry in the region. It is also associated with the issues of the hotel management and the programs of the customers’ support.
The problem of the high level of business competition in the field of hotel industry which can be observed in Dubai influences the position of Radisson Hotels in the range of the most successful hotels of the country and of the world. The major aspects of the problem are connected with the elements of the general program of improving the principles of management and service in Radisson Hotels and with the peculiarities of their realization in Dubai.
To improve the quality of the service and realize the contemporary tendencies in the management processes, the program of cooperation with the customers and employees were worked out in Radisson Hotels. The main principles of the program were directed to increasing the quality of service with using the results of the customers’ feedbacks and to implementing modern strategies in the work with employees.
The main idea of the program’s realization was in providing guarantees for the service of the highest level and in orienting on the customers’ satisfaction with the peculiarities of the service and the work of the personnel. According to the program, definite procedures and measurements were made.
The managers and economists of Radisson Hotels in Dubai have analyzed the first results of the strategy which was used in the hotels and concluded that the processes of decreasing the amount of the guests and the level of their satisfaction with the services can be connected with the peculiarities of the strategies which are realized by the main competitors of Radisson Hotels in the region.
The situation of the customers’ dissatisfaction with the services in Radisson Hotels is not related to the objective or current problems in the management organization in the hotels because it is discussed in comparison with the situation in the other hotels in Dubai. It is the effects of the rapid growth of the competitiveness among them.
Nevertheless, in spite of the fact that there are no drawbacks in the peculiarities of the management and organization in Radisson Hotels in Dubai, it is necessary to work out a new innovative strategy of the development in order to raise the level of the guests’ satisfaction with the service in the hotels.
Radisson Hotels are promoted as the hotels which provide the service with the orientation on the customers’ needs and comfort. However, these principles require their analysis and further development and improvement with references to the contemporary trends and changes in the sphere of hotel management.
The main perspectives of the development can be realized in the field of increasing the employees’ motivation and the usage of greater variety of information technology because today Dubai is one of the leading and progressive modern centers.
Thus, to solve the problem with the peculiarities of the management in Radisson Hotels in Dubai which depends on the high level of business competition within the industry in the region, it is important to change the main approaches to the strategies and management programs in the hotels.
The history of Radisson Hotels began in 1909 when the first hotel was opened by heiress Edna Dickerson in Minneapolis, Minnesota, in the United States of America. It was the beginning for the flourishing development of the company which today has its hotels in 73 countries all over the world.
Edna Dickerson planned to build the first-class hotel which could satisfy all the customers’ requirements. The first hotel was named after the French explorer of the 17th century Pierre Esprit Radisson. This great idea was proposed by N. H. Owen, a businessman, whose office was located in the hotel.
The first great 16-storey hotel in Minneapolis employed only 250 people. Today the chain of Radisson Hotels employs more than 130,000 people. The first Radisson Hotel was so famous among the public that even the march was composed by Franz Dicks and named after the hotel.
In 1938 Curtis L. Carlson established the corporation which developed rapidly in the industry of hotel business and presented several marketing groups. This company purchased the successfully developed Radisson Hotel and gave the start for worldwide spreading of the company’s influence in 1962.
A new age for Radisson Hotels came. A lot of hotels were built in many countries. Nowadays those Radisson Hotels which are located in different regions of the world are known as Radisson Blu in Europe, Africa, and Asia and as Radisson Edwardian Hotels which are situated in the United Kingdom.
The main office of Radisson Hotels and of Carlson Company is traditionally located in Minneapolis, Minnesota, because the majority of hotels from Radisson Group are situated in the USA. Today Carlson companies include Carlson Hospitality Worldwide, Carlson Leisure Group, Radisson Hotels, Radisson Seven Seas Cruises, and many other foundations.
The Kingdom has a potential for tourism development. Top managers must understand what differentiates their hotels from others and must understand the need of the visitors in their hotels (market) (Abu-Nasr 19). If these two elements in hotel industry are clear, hotel managers will be able to develop a strategic plan for their hotels in the kingdom, thus creating a market niche for themselves.
Each year, Saudi Arabia plays host to thousands and thousands of religious tourists who flock to the Kingdom to perform the yearly pilgrimage of Umrah as well as Hajj ((Hospitality Valuation Services International 18). In the next 10 years, the number of pilgrims arriving in Saudi Arabia is expected to increase to almost 15 million. With this, hotel industry will experience shortage in accommodating as a result of the large visitors coming into the Kingdom.
An examination of Kingdom’s historical GDO and RevPAR reveals linkages between the kingdom’s economic performance and its hospitality industry (Hospitality Valuation Services International 23). A relationship nearing 100 per cent suggests that Kingdom’s hospitality sector is dependent on the local economy, whereas correlation of 50 per cent closer ties with the international market (Melikian 24).
City Correlation between City/Town
Correlation between RevPAR and GDP
Medina
5.6 per cent
Riyadh
-15.0 per cent
Jeddah
65.2 per cent
Makkah
28.4 per cent
Khobar
19.3 per cent
The above analysis discloses that hotels (restaurants) in Medina, Makkah, Khobar and Riyadh are dependent upon their source markets. While hotels (restaurants) in Jeddah are dependent on the local economy. For Medina and Makkah, hotels are dependent on high proportion of visitors that are largely composed of pilgrims which are not dependant on external financial forces (Hospitality Valuation Services International 25).
Demographic and Political Background to tourism
The population in Saudi Arabia is reported to increase rapidly. It is estimated the number of people in the Kingdom to have reached 21 million people. Half of the population is composed of indigenous people who are under the age of 18. At moment the country’s growth rate in terms of population is higher.
It has been estimated that the tourism sector could generate revenue or income of 3 billion dollars within four years when the country’s rules and issuance of tourist visa are relaxed (Hospitality Valuation Services International 26). Currently, the Saudi’s government through Seventh Development Plan (2000-2005) has set a goal of developing tourism and leisure industry to be among the major economic sectors in the country.
The strategic plan sees the need to diversify and expand hospitality facilities in the country. Additionally, private sector is being encouraged by the government to set more hospitality projects. In the past 5 years, approximately 5.3 billion dollars has been spent by the private sector in the setting up of leisure and tourism and amusement projects in the country (Melikian 29).
The Saudi’s government in 2001 announced the creation of the HCT (Saudi Higher Tourism Commission) as the first step in encouraging local tourists. Through this board, Visa regulations have been simplified to encourage international or foreign tourists to visit the Kingdom.
Pilgrims coming for annual Umrah or Hajj now can freely travel to other parts of the kingdom outside the traditional cities of Medinah and Makkah. All these new regulations are being introduced by the Saudi’s government gradually, and when they are fully implemented it will go a long way to encourage investment in the Kingdom’s tourism sector (Melikian 35).
Tourism sector Privatization
Three years ago the Saudi’s government privatized 21 sectors in the tourism sector; including government owned hotels and restaurants. Since 2000, major investment projects have been initiated in the tourism sector. Many of these projects are found in the grey areas between business, tourist and residential accommodation, and civic and tourist recreational provision.
A notable achievement that has been made so far by the Saudi’s government is the development of more than 60 theme parks throughout the Kingdom. The verdant Southern region of the Kingdom has been seen to attract approximately 3 million tourists annually and most recently it launched a nine-week summer festival. Assets of the country’s tourism company Syahya include resorts and hotels on Asir’s Red Sea coastline such as Al Habala, Al Sooda, Abha and Dourat which are linked by a cable car system (World Tourism Organization 45).
Tourism Growth
Saudi Arabia is a very fast-growing market in Middle East. Every 16 million tourist use Accor properties and Saudi Arabia is among the prime growth areas for the company. At the moment major international hospitality companies are planning to invest in the Kingdom. For example, Accor properties are planning to add more than 20,000 new rooms over the next four years. At the moment, the company starts to construct six new hotels in the kingdom.
The Kingdom’s Royal family has realized the goodness of aligning with major tourism companies. Most recently, Starwood Hotels announced its plans to expand its hotel business in the Saudi Arabia hotel sector with the opening of one new hotel in Jeddah. Also, the company is planning to build a 500 room hotel in the holy city of Madinah (World Tourism Organization 47).
Saudi Higher Tourism Commission (HCT)
The most undoubtedly creating by the Saudi’s government was the creation of Saudi Higher Tourism Commission (HCT) in 2001. Under the direction of Sultan bin Salman, Saudi Higher Tourism Commission (HCT) appointed a United Kingdom consulting firm to carry a 20-month feasibility study on the tourism sector in the Kingdom, beginning with many attractions that are largely unknown to the rest of the world.
In 1998 was another important year, when the government allowed tour operator Bale Worldwide from U.K to bring tourism groups to the Kingdom. It was a one week package features highlights such as visiting the Navatean rock tombs, hotel stay in Madinah, and visitation to villagers in Wadi Thama. Such visitations have been deemed officially successful, as reflected by the changes in the tourism sector in the Kingdom such as relaxation of visa rules (World Tourism Organization 49).
On the positive side about tourism development in the Kingdom, it is highly unlikely the new investment laws will be an impediment to the increased foreign investment in the tourism sector in the kingdom. At the moment, the Saudi’s government is planning to privatize or partial privatize Saudi Arabian Airlines and some business units in the tourism sector (Hospitality Valuation Services International 28).
For Medina and Makkah, hotels are dependent on high proportion of visitors that are largely composed of pilgrims that are not dependant on external financial forces (Hospitality Valuation Services International 25). Therefore, Saudi’s government should rely on the visitors coming into the kingdom.
Works Cited
Abu-Nasr, Donna. Digging up the Saudi past: Some would rather not. New York: Associated Press, 2009. Print.
Hospitality Valuation Services International. Middle East Tourism: Trends and Opportunities. New York: HVS International Publisher, 2005. Print.
Melikian, Souren. Routes of Arabia’ Exhibition at Louvre Is Startling. New York: World Tourism Organization, 2010.Print.
World Tourism Organization. Outbound Tourism from Saudi Arabia. New York: World Tourism Organization, 2003. Print.
Tourism is a major economic activity for many countries across the globe. A country such as New Zealand has relied on tourism industry for economic growth. The concept of sustainable tourism development has expanded in the last 40 years following the increasing public awareness of environmental issues.
Bhatia (2007), in his study suggested that sustainable tourism development refers to any form of tourist activity which is economically and socially equitable and acceptable, respects the environment and conserves cultural and natural resources.
According to World Tourism Organization, sustainable tourism development is aimed at meeting the needs of visitors and the host countries and cities and at the same time furthering the future prospects (Smith, 2010, P. 2). Thus, sustainable tourism development should be economically viable and also protect the tourist resources i.e. cultural, historical and natural resources (Curtin, 2003, P. 2).
Importance of adopting a Sustainable Tourism Planning Approach
The following are the benefits of adopting a sustainable tourism planning approach. First, a tourism plan provides the criteria for measuring new tourism projects. With this regards, a tourism plan aims at defining the objectives, implementation procedures and policies for developing new tourism projects.
A research that was done by Pearce & Butler (2002) suggested that a tourism plan plays an important role of developing new prospects within a planned framework. A tourism plan facilitates the development of new policy measures of supporting tourism organizations and improving their competitiveness. A tourism plan clearly explains the strategic themes and priorities for a country’s engagement in tourism.
A tourism plan provides the tourism stakeholders such as tourists, companies, environment and the community with a sense of involvement and ownership. The stakeholders participate in the planning process because most of the decisions have implications on them (Hall & Kearsley, 2001, P. 273-294).
Towards creating a sustainable tourism development
Achieving a sustainable tourism development calls for an interactive process. It is important for tourism managers to assess the developments on a current basis in order to mark any significant changes. Indicators of Sustainable Tourism supply the tourism management team with required information for making decisions for sustainable tourism development (Fennell, 2008, P. 10).
Indicators enable tourism management team to find out whether sustainable tourism has been achieved or not. They function as an early warning system to monitor economical and social changes over time thus preventing negative effects (Weaver& Oppermann, 2000, P. 354). The World Tourism Organization has proposed several Indicators of Sustainable Development that can be used by tourism management team in decision making.
The indicators include site protection, stress and use intensity, social impact and development control, waste management, planning process, critical ecosystems, consumer satisfaction, local satisfaction and tourism contribution to local economy. According to Dymond (1997), the indicators are aimed at meeting ecological, planning, social and economic goals.
The role of local authorities in Sustainable Tourism planning (public sector)
According to Swarbrooke (1999), the government intervenes in order to liaise, manage and plan the various group of interests that have a stake in tourism. The government is also responsible for marketing and promotion of tourism destinations.
The government through its tourism department is responsible for managing tourism throughout the state. The government usually obtains funds from taxes and the private sector in order to promote and market the country as a tourist destination.
The role of private sector in Sustainable Tourism Development
Sustainable tourism planning cannot be managed by the public sector alone. The government is usually not well equipped at local level to respond to the rapidly changing demand of national and global tourism demands. The private sector on the other hand possesses broad as well as powerful tourism planning techniques that are well coordinated.
The roles of private sector in developing a sustainable tourism include the following: Private sector business provides accommodations, transport, attractions and other visitor facilities and services. The private sector encourages and promotes tourism marketing and development.
Usually, the private sector intervenes in tourism to ensure that the business objectives like revenue maximization and others are balanced with stakeholders’ interests and local needs in relation to attractions, beaches, infrastructure and other resource base which are utilized by the tourism (Middleton & Hawkins, 1998, P. 106).
Private sector provides the financial resources that are required for tourism development and planning. They also provide the staff expertise which is required to enhance tourism planning and development (Swarbrooke, 1999, P. 97).
Steps that are involved in creating a Sustainable Tourism Planning
Tourism planning refers to the act of managing future events with the purpose of achieving objectives. The tourism development planning process involves a number of steps. The study recognition and preparation is the first stage in the process. In this stage, the planning authorities i.e. the private sector and the public sector, recognizes the strategy that is required for planning process (Kandari & Chandra, 2004, P. 164).
The second stage that is involved in tourism development planning process is setting the goals to be accomplished. For a development plan to be effectively designed, it is important to set clear goals that are to be accomplished.
A clear understanding of tourism goals enables the management team not to lose sight during the planning process. The objectives to be accomplished should not be vague and unachievable. Also, the objectives to be accomplished should not be conflicting (Kandari & Chandra, 2004, P. 164).
Survey of existing data is the third stage. Tourism management team should search for the available information before carrying out data collection. Surveying the available data is important because it saves time and resources (Kandari & Chandra, 2004, P. 164).
Implementing the new surveys is the fourth stage that is involved in tourism development planning process. This stage plays an important role of filing the information gap once the present data have been surveyed (Kandari & Chandra, 2004, P. 164).
Analysis of primary and secondary data is the other stage. Both the primary and secondary data is analyzed by taking into consideration various issues such as asset evaluation, market analysis, development planning and impact analyses (Kandari & Chandra, 2004, P. 164).
Policy and plan formulation is the sixth stage that is involved in tourism development planning process. This process enables the tourism management team to develop and evaluate alternative plans that facilitate the accomplishment of most tourism goals (Kandari & Chandra, 2004, P. 164).
Recommendations is the next stage. In this stage, various recommendations are put forward in order to facilitate policy choice (Kandari & Chandra, 2004, P. 164).
Implementation of the plan and monitoring is the last stage that is involved in this process. During this stage, the preferred plan having been completed is implemented and closely monitored with a view of detecting any deviations (Kandari & Chandra, 2004, P. 163-167).
Conclusion
Good tourism planning is the means of achieving economic prosperity. Both the government and private sector plays an important role in tourism development planning. It is important for the planners to involve all the main stakeholders such as the visitors and tourist companies during the planning process.
Reference List
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Curtin, S. (2003). Whale-Watching in Kaikoura: Sustainable Destination Development? Journal of Ecotourism, 2 (3), 1-34.
Dymond, S. (1997). Indicators Of Sustainable Tourism in New Zealand: A Local Government Perspective. Journal of Sustainable Tourism, 5 (4), 1-9.
Fennell, D. (2008). Ecotourism, Edition3. London: Routledge.
Hall, C & Kearsley, G. (2001). Tourism In New Zealand: An Introduction. Oxford: Oxford University Press.
Kandari, O & Chandra, A. (2004). Tourism, Biodiversity and Sustainable Development, Volume 3. New Delhi: Gyan Publishing House.
Middleton, V & Hawkins, R. (1998). Sustainable tourism: a marketing perspective. London: Butterworth-Heinemann.
Pearce, D & Butler, R. (2002). Contemporary issues in tourism development. London: Routledge.
Smith, S. (2010). Practical Tourism Research. Oxford: Oxford University Press.
Swarbrooke, J. (1999). Sustainable tourism management. Oxford: Oxford University Press.
Weaver, D & Oppermann, M. (2000). Tourism Management. London: John Wiley & Sons.
Tourism is one of the largest and major industries in the world. The sector has become a major source of income for numerous economies. Its significance is growing by the day. China, as the most populous country in the world, is projected to become a major market for both inbound and outbound tourists.
Consequently, Chinese authorities in the various provinces are promoting tourism in their regimes to attract both local and foreign visitors. Recently, the number of European tourists travelling to China has increased. The proposed study is an exploration of Shanghai to create a tourism experience for the European traveller.
Various factors leading to this experience are analysed in the study. In addition, the factors that can facilitate more European tourists visiting Shanghai are explored.
Introduction
Background Information
One of the major industries in the world today, and which is exhibiting considerable growth in importance, is that of tourism. The industry is a substantial source of income and employment in numerous economies worldwide. In addition, it is of social importance to many people. China currently boasts of the world’s largest population.
It is predicted that the country is going to become a major source of global tourists in the 21st century. On the other hand, the country is also becoming a major tourist attraction. China’s opening up to the world in the last few decades has greatly enhanced its image as a popular tourist destination.
Various Chinese cities are competing to become number one foreign tourist destinations. To this end, these cities are coming up with measures to woo more tourists. Some of these popular destinations include Shanghai, Guangzhou, Beijing, and Chengdu.
In the recent past, diplomatic relations between the European states (EU) and China have improved. For instance, more than 50 dialogues are currently taking place between the two sides through annual summits (Pantucci 2012).
The dialogues focus on three major pillars. The three are economic and sectoral, strategic, and people-to-people relations between the two economies (Pantucci 2012). Tourism between the two regions falls under the people-to-people diplomatic concerns. China is undertaking considerable measures to make its cities major tourist destinations for the Europeans.
Shanghai, as one of the large metropolitans in China, is a very popular tourist destination for both locals and foreigners. The various sites of attraction in the city create a unique tourism experience, giving the metropolis a major ranking globally. The authorities are putting in place measures to woo large numbers of tourists from Europe.
Problem Statement
According to Bayes (2004), Shanghai is a Chinese city with an allure of its own. It is characterised by a combination of western and local cultures. The city is sophisticated and cultured. In addition, it is emerging as a major economic powerhouse in China. Western visitors are usually amazed by its air of mystery.
Some recent developments, however, threaten to jeopardise the standing of this region on the global tourist market. For example, in the recent past, China had not been very open to the world, and especially to the western countries.
According to Lew and Yu (1995), before the 1970’s economic reforms, the country shunned external relations with other countries. Instead, the country focused on domestic industries, suppressing major economic relations with foreigners, including tourism engagements.
The post 1978 economic reforms in China led to an open door policy, which has been a significant driver to the rapid development in the country. For instance, China has made considerable progress in foreign investments. The country has invested in more than 5973 enterprises outside its territories, with tourism being one of them (Lew 2001; Zhang 1995).
Prior to the reforms, the country had very restrictive policies determining who entered as a tourist (Gareth & Allan 2002). Until recently, language barriers made China an unpopular destination with European tourists. According to Hall and Page (2000), negative depictions of the country in the western media have also been an obstacle in wooing foreign tourists.
It is a fact that some of the stories carried in foreign media outlets about this country may be right. However, some of these outlets ignore the positive aspects of the region, which reveal the attractiveness of the country to tourists from Europe.
Several issues in relation to environment, pandemics, climate change, human rights, natural resources, as well as energy supplies and demand have been used to discredit China. Such coverage can and should be considered as selective. The coverage depicts China as a dangerous place, posing major threats to global environment (Tan 1986).
However, since the adoption of the reforms and the open policy, China has become a major destination for global tourists, and especially Shanghai. The World Tourism Organisation (WTO) predicted that by 2020, the country would be the largest tourist destination in the world (Pantucci 2012). In addition, the country would also be among the largest in relation to overseas travel.
The proposed study will explore Shanghai in order to create a tourism experience for the European travellers. The study will highlight the factors that are set to increase the number of European tourists visiting Shanghai-China. Creation of such experiences would dispel the popular notion discouraging some European tourists from visiting China.
Significance of the Research
Tourism is currently recognised as the world’s largest and fastest growing industry (Cooper & Wahab 2001). Although China is an emerging economy and EU a relatively developed one, both stand to gain immensely from tourism. In addition, this sector is making meaningful contributions to the development of Shanghai and EU economies. The contributions are especially apparent in foreign exchange earnings and job creation.
Shanghai can further play a very significant role in wooing and convincing European tourists to come to China. Japan, Korea, USA, Taiwan, and Hong Kong are the leading sources of overseas tourists for Shanghai (World Expo 2010). The Expo further notes that tourists from Europe have increased over the years (World Expo 2010). Germany, France, and Britain were the leading origins of European tourists travelling to Shanghai.
The proposed study is relevant to European and Shanghai tourism industries. It is important for Shanghai to create a comprehensive tourism experience for the European traveller. Knowledge on the systems of operation for the Shanghai tourism industry will be made available to the European tourist.
Consequently, a new image of Shanghai as a choice destination will be enhanced. A popular perception of Shanghai as an exciting destination for leisure and business travellers can be enhanced through such an image.
It is apparent that convincing the European tourist to venture into Shanghai requires data and resources that can be used to enhance the city’s image. The information also needs to be updated regularly to make it more relevant.
Limitations and Delimitations of the Study
Shanghai is a very modern city considered to be a major gateway destination in its own right. In addition to its modern infrastructure, the city has maintained most of its traditional features. Visitors have the privilege of seeing and experiencing the culture and history of China, as well as that of the city itself.
The study will focus on the major attraction sites in Shanghai that can be used to create a lasting experience for any tourist. Shanghai is endowed with a number of such sites. The study will focus on the most popular ones.
In the proposed study, European tourists are considered as individuals travelling for leisure from the EU countries. For the last thirty years, the number of European tourists to China has grown immensely.
The signing of the Approved Destination Status (ADS) between China and the EU in 2004 further enhanced the prospect of more foreign tourists (Staiger 2004). Similarly, the agreement enhanced the prospects of more Chinese visiting the EU countries. The restriction of the current study on the EU countries is based on this fact.
Literature Review
Introduction
Chapter one addressed the background to the proposed study and developed the problem statement. The current chapter will review various studies regarding Shanghai as a destination for foreign tourists.
In addition, the chapter will highlight diplomatic relations between China and the EU. In addition, the major attraction sites for European tourists travelling to Shanghai will be analysed. Finally, the researcher will highlight the city’s destination management initiatives.
Shanghai-China
According to Bayes (2004), Shanghai is a city located on a coast. It acts as the gateway to the Yangtze River Delta, famous for its depiction of Chinese cultural and historical backgrounds. As a municipality, Shanghai is under the jurisdiction of China’s Central Government. It is also the largest trade and economic centre in the country. In addition, it has the largest port in China (World Expo 2010).
Bisected by River Huangpu, Shanghai faces the East China Sea, which is a part of the Pacific Ocean. The city is the most populous metropolis in the world. As of 2013, it had a population of more than 24 million persons. The city is also a major global financial centre.
Shanghai is known throughout the world due to its prosperous cosmopolitan features, which are complemented by its rich ‘humanistic’ resources (World Expo 2010). In the recent years, for instance, several modern buildings have been erected in the city.
Some of these include Shanghai Museum, Shanghai Grand Theatre, Shanghai Library, and the popular Oriental Pearl Television Tower (Shanghai Jiao Tong University [SJTU] 2014). Other popular buildings include Jin Mao Tower, Shanghai City-Planning Exhibition Hall, Shanghai Circus City, and the Shanghai Science and Technology Museum (SJTU 2014).
The buildings, together with other oriental architectural marvels, make up some of the most scenic sites in the city. In addition, colourful festivities, such as the Shanghai China International Art Festival and Shanghai Tourism Festival, are popular. All these elements act as significant tourist attractions for both locals and foreigners.
Development of Diplomatic Relations between China and EU Countries
Diplomatic relations between China and the EU began more than thirty years ago. According to Dai (2006), these relations began as early as May 1975. Subsequently, by the end of the 1970s, several events in relation to these relations took place. An example is the signing of an agreement between EU and China in Brussels.
Other events include visits to China by the then presidents of the European Community and European Parliament (Zhang 1995). The launch of China’s economic reforms and policies regarding opening up of the country in 1970s further strengthened the ties.
EU-China bilateral ties broadened in the 1980s, covering such aspects as academic and cultural exchange (Zhang 1995). Development of scientific programmes, as well as trade ties and cooperation, also deepened. The extent of these relations can be discerned from, for instance, the establishment of a Delegation of European Commission in Beijing. The delegation was established in 1988.
The relations between the two sides were, however, strained following the crackdown on students’ protests in 1989 by the government (Zhang 1995). The incident, which took place at the Tiananmen Square, prompted the European Community to freeze ties with China (Pantucci 2012). Such sanctions as arms embargo followed. The sanctions were inspired by similar actions taken by the US against China.
Freezing of the EU-China relations was however short lived. As the years progressed, the importance of China as a Foreign Direct Investment (FDI) became more apparent. Importance of China as a global competition frontier for the Triad Economies (Europe, US and Japan) also led to dropping of the sanctions.
Three years following the massacre at Tiananmen Square, relations between China and the EU were normalised. The sanctions by the EU were dropped, with the exception of the arms embargo (Dai 2006).
According to Zhang (1995), the EU-China relations have further deepened, since the 1990s. Several annual summits have been launched between the two sides, from 1998. In addition, high-profile visits between the two sides have further strengthened the relations. The two countries are finding that they are important to each other.
The mutual feeling of importance is evident in the foreign policies relating to each other by the two sides. For instance in 2004, the EU became the largest trading partner of China (Dai 2006). On its part, China conducts significant trade volumes with the EU. For example, it was the second trading country in that year.
It is thus evident that China and EU have very crucial and strong diplomatic ties, in the various social and economic aspects. Both sides benefit each other mutually. Consequently, Shanghai can seek to benefit from these relations, in furthering its tourism objectives with the EU.
Major Tourist Attractions in Shanghai-China
Perhaps the definition of a tourist attraction should precede creation of tourist experience in any destination of tourism. According to Wang and Pizam (2011), an attraction refers to any object, person, concept, or place that draws people so that they might have an experience.
An attraction can either draw people geographically, or through remote electronic means as witnessed in the contemporary society. Tourism experience on the other hand can be spiritual, recreational or otherwise (Laws 1995).
Shanghai as modern city has numerous attractions for leisure travellers from all walks of life. As an attraction for European tourists, various descriptions of the city make it a curiosity for leisure travellers. Bayes (2004) for instance describes the city as a mixture of both the Western and Chinese cultures. Such a description of the city enhances the perception of Shanghai as having an allure of its own.
Shanghai can be regarded in tourism terms as cultured, sophisticated, and among the leading economic powerhouses of China. It is thus apparent that the city is not only a choice for leisure, but also for business travellers.
Oriental Pearl Radio and Television Tower
One of the major tourist attractions in Shanghai is the Oriental Pearl Radio and Television Tower. According to Eleftherios (2003), the tower is designed in a manner that it has eleven spheres (pearls), and three massive columns. Six high speed elevators built into the columns raise visitors to the viewing platform above. Although there are queues at the elevators, the viewing platform affords visitors a panoramic view of the city.
The lighting of the building also presents an impressive scene. The light on the tower is alternated according to the weather pattern, controlled via a computer system (SJTU 2014). Although there are other taller buildings in the city, the tower remains a very significant tourist attraction in the city.
Figure 1: Oriental Pearl Radio and Television Tower
Source: SJTU (2014)
The Bund
The bund is the most famous landmark in Shanghai, regarded as a symbol of the new and the old (Eleftherios 2003). It is an imposing feature on the landscape of the country. It is four kilometres long. It stands out as one of the most important features in Shanghai. The landmark attracts both local and foreign tourists.
Earlier in the 1930s, the course of buildings constituting the bund hosted the city’s financial as well as commercial centres (Hall & Page 2000).
Numerous foreign banks and financial empires were hosted in the bund. Another feature is the Russian embassy in the city. It is an imposing blue structure near the bank of the river. In the colonial times both the British and the Japanese guards secured the bridge, which functioned as a boundary of territory (Zhang 1995).
The western wing of the Bund is equally striking. A number of buildings with varying architectural designs are found here. For instance, Gothic, Romanesque, and Baroque architecture buildings can be seen here. The combination of these architectural marvels results to a unique boulevard, a very beautiful site for tourists.
Figure 2: The Bund
Source: SJTU (2014)
Jade Buddha Temple
Built during the era of the Guangxu of the Qing Dynasty (A.D. 1875-1909), the Jade Buddha Temple was burnt down during the early 20th century (Zhang 1995). It was restored in 1918. The Song Dynasty architectural designs influenced the new structure. The temple is made up of different areas. One of them is the Main Hall (Zhang 1995).
Today, the temple is occupied by a group of monks. In addition, the Shanghai Buddhist Instituted is housed in the shrine. A number of historical artefacts are also found in the temple. They include statues, religious scriptures, and paintings.
Figure 3: The Jade Buddha Temple
Source: SJTU (2014)
The People’s Square
It is another prominent feature in Shanghai. It is found at the centre of the city. The space occupied by the Square used to be a racing track before it was converted into a recreational feature for the larger public. The changes were carried out after the war, perhaps to cater for the rising demands for social amenities (Bayes 2004).
The People’s Square is significantly different from similar features in the country. For example, most public spaces are made up of concrete. However, the People’s Square is more natural. It is made up of plants, including trees and lush bushes. In addition, the square is surrounded by marvellous buildings. The People’s Square covers an area of 140 000 square meters (Zhang 1995).
At the northern end of the Square is the Municipal Government Mansion. The bureaucratic structure is, however, not accessible to members of the public. On the northwest lies the Shanghai Grand Theatre, constructed almost in entirety from glass. The Exhibition Hall for the City Planning is located on the East.
The Shanghai Museum however constitutes the most impressive building located in the square (SJTU 2014). The structure is symmetrical and has a very smooth texture. The design was inspired by a traditional cooking pot.
Figure 4: People’s Square
Source: SJTU (2014)
Yu Garden
Many tourists are attracted to this feature. It is located in the south-western part of the city. It is near the Bund. Yu Garden can be described as a Chinese Disney, only that it exhibits different twists, such as being lower in quality.
Yu Garden was first established by Pan Family in 1577, however it was destroyed twice in the 1800s (Zhang 1995). The Garden was however restored later. Although the garden usually has massive masses of people, visiting it while in Shanghai is worthwhile.
Yu Garden occupies a strategic place in the city. The surrounding area is made up of the Old City God’s Temple, referred to as the ‘Chinese City’ during the colonial times (Zhang 1995). The area surrounding the Garden has however been recently renovated, with numerous tourist attraction shops. The small side streets and the antique market are also very attractive sites for tourists.
Figure 5: Yu Garden
Source: SJTU (2014)
Xin Tian Di
Xin Tian Di Plaza is constituted of two blocks, the North and the South (Dai 2006). The southern part of the building is made up of modern architecture. The design is accompanied by Shikumen. Shikumen is a unique feature of Chinese architecture.
It is a combination of domestic and foreign cultures. The northern part of the building is equally captivating. It also has elements of Shikumen design. It is a beautiful contrast of the rest of the building. The South block hosts a shopping, leisure and entertainment complex, covering 25 000 square meters (SJTU 2014).
The South Block also has a series of international restaurants catering for the various world flavours. The same applies to the North Block. The restaurants specialise in American German, Italian, Brazilian, French, British, Japanese, and Taiwanese cuisine among others.
The combination displays the international dimension of Shanghai as a tourist destination, capable for catering for a variety of foreign tourists. The dividing line between the North and South Blocks of Xin Tian Di (which is the Xingye Road), is the site of the First Congress Hall of the Chinese Communist Party (Zhang 1995).
Figure 6: Xin Tian Di
Source: SJTU (2014)
Destination Management in Shanghai-China
The magnificent attractions in Shanghai can be used to woo the European tourist by the spectacular experience that they create. However, another important aspect to creating the desired tourism experience can be further achieved through destination management. In this case, Shanghai would be the destination.
Mill and Morrison (2012) provide a working definition of destination management. Mill and Morrison (2012) regard it as the organisation of the various aspects of the destination mix. The elements constituting the mix should be in regard to a particular geographic area. In addition, these should be in relation to defined tourism plan or strategy.
Destination mix elements comprises of the attractions, events and facilities within the geographic location (Morrison 2012). Others include infrastructure and transport and communication network. Destination management also comprises of branding and marketing a given location. The marketing is targeted at both local and international travellers.
The various attraction sites, events, culture, among other aspects of Shanghai constitute the city’s destination mix elements. The destination mix of Shanghai develops the tourism experience that can attract more European tourists. The destination mix can also be regarded as the destination product, since the concepts are the same (Morrison 2012; Timothy 2001).
According to Knapp and Sherwin (2005), every destination mix must exhibit at least the four products namely physical, people, packages and programs. Physical products include items such as the attractions, transportation, facilities, and infrastructure (Mill & Morrison 2012). Tourists are drawn to the various attractions associated with a location, such as Shanghai.
It is apparent from the major attraction sites of Shanghai that the city has impressive physical products, which it can offer to the European tourist. The modern infrastructure of Shanghai and the transport system supports safe and enjoyable travelling in the city (SJTU 2014).
The hotel and restaurants in Shanghai meet the aspirations of the European traveller. The feature is another potential reason why the city is an emerging tourist destination.
It is important to take into consideration the people element of the destination mix. To this end, the local population accommodates and entertains the foreign tourists (Morrison 2012). Local lifestyles and cultures also constitute the people aspect of the marketing mix.
Shanghai city exhibits diverse cultures, from European, to Chinese. The various cultural events also indicate the awareness and appreciation of tourists by the city residents.
Different combinations of packages and programs are availed to the tourist. The European traveller can purchase and use these combinations. A number of tour operators have come up with unique packages for those travelling to Shanghai city (Morrison 2012).
Most of the packages are organised to attract different tourists. In addition, most of them are based on industry partnerships such travel and hospitality companies. The tourists can access the packages from conventional retail outlets. Such outlets include travel agents and online channels.
Destination mix programs are unique. They include the various events organised for the travellers (Harris, Griffin & Williams 2002; Mill & Morrison 2012). The European tourists can be further drawn towards Shanghai through well designed and promoted events and festivals.
Some European tourists have unique interests that should be addressed. The objective can be achieved through the use of prearranged packages. The city for instance hosts several colourful festivities such as the Shanghai China International Art Festival, and the Shanghai Tourism Festival (Lew & Yu 1995).
Shanghai has apparently made considerable effort in destination management, in order to become a global tourism choice, not only for the Europeans. For instance, the city has introduced a policy allowing visitors jetting into the country to stay for three days without a visa (Tourism Review 2013).
Travellers from more than 45 countries have already enjoyed the three day visa free stay in the ‘administrative area’ of Shanghai. In addition, the Shanghai Municipal Tourism Administration is seeking the Central Government permission to extend the same to the cruise terminals (Tourism Review 2013).
The aptness of Shanghai authorities in destination management is also apparent from the various expos held by the city such as the Shanghai 2010 world expo (Mill and Morrison 2012). Objectives of such events by the city included attracting visitors globally. The events also advance Chinese culture, in the world.
It is very easy to access many ports of China from Shanghai. Consequently, local organising committee sometimes organises trips for tourists within and outside the city (Tourism Review 2013).
For instance, these trips can be to the neighbouring water towns or historical cities such as Suzhou and Hangzhou. Arrangements to visit other popular tourist attraction in China can be made in Shanghai to other locations such as Hong Kong, Xian and Beijing. These cities are only two-hour flight away.
Conclusion
The diplomatic relations between China and the EU are apparently a stepping stone for Shanghai, in attracting more tourists from these countries. In addition, these relations have been developed for the mutual benefits of the two sides. In attracting tourists from the European countries, Shanghai offers a wide range of attractions that create a unique and lasting tourism experience. The destination management initiatives of Shanghai also make the city a choice destination for European tourists in Asia.
Research Methodology
Introduction
In chapter 2, a critical review of literature in this field was conducted. In this chapter, the design of the overall study is provided. The types of research methods employed in the study are described. In addition, the techniques employed in the study are also elaborated in this chapter.
Literature Review
Collection of materials in relation to exploration of Shanghai in order to create an experience focusing on the European tourist was a relatively difficult task. Most of the literature found focused on tourism in China as a whole.
In addition, materials focusing on specifically wooing the European tourists to Shanghai were even harder to come by. The literature review is majorly based on secondary materials that the author collected from libraries. In addition, online resources were extensively reviewed in order to develop a comprehensive image of Shanghai for the European tourist.
Data Collection Techniques
Generally, the bulk of this study is qualitative as opposed to quantitative. The title and objective of the study gives a certain orientation towards the methodology suitable for the study. Exploring Shanghai in order to create a tourism experience for the European Tourist is the overall objective of the study.
As indicated earlier, data collection is mostly based on materials collected from secondary sources in libraries and online databases. Travelling to the European countries to collect views on their perception of Shanghai as a tourist destination of choice could not be done.
Consequently, primary data was collected through questionnaires mailed to several European countries. Popular tourist agencies were requested to select some of their clients, who responded to the questionnaires. The trip would be apparently very costly to the author, hence the option on the method of data collection.
The author, however, made a point of touring most of Shanghai’s popular tourists’ attractions. The objective was to develop a firsthand experience, in order to enhance and compliment the information collected from the secondary sources.
Data Analysis
Despite of the study being qualitative, the responses from the questionnaires, as well as other secondary data need to be analysed. Consequently, the software SPSS version 10 would be used for the purpose of analysing and representing the data. SPSS refers to the Statistics Package for the Social Science.
SPSS is an integrated system comprising of computer programs, used in the analysis of social data (Norman, Dale & Hadlalh 1970). The system is designed in a manner that it provides social scientists with a comprehensive package. The package enables them various types of data analysis, in a very convenient and simple manner.
Limitations of the Study
Potential limitations to the study include:
Since the research was limited to a tourism experience in Shanghai, the views represented do not necessary reflect destination China.
Some of the respondents to the questionnaires might lack the specific aspect of the study which is focusing on Shanghai, and respond with a viewpoint of China as whole.
The geographical area covered by the study is very large, hence become an impediment to collection of primary data in Shanghai and Europe directly by the author.
Conclusion
Shanghai offers a very fascinating, unique, and impressive destination for the European tourist. Traditionally, Europeans have shunned the idea of visiting this region, especially due to the distorted perceptions they had previously held about the country.
It is apparent that the diplomatic relations between China and Europe are improving. Shanghai can take advantage of these developments to lure more tourists to the region. The proposed study will determine some of the factors that can increase the number of European tourists to Shanghai.
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Identification of the main points of the literature review
The current paper explores the issues of sustainable tourism with special reference to New Zealand. Specifically, the paper examines the existing correlation between sustainable tourism in this country and the Resource Management Act.
The paper begins with the traditional requirements for tourism planning which include a physical-spatial approach, boosterism, a community-oriented approach, and an economic-industry approach (Page & Thorn, 1997). It then narrows down to sustainable tourism planning as the fifth and more recent approach.
This choice has been necessitated by its impact on the environment and economic development, long-term concern for resources, and a desire to fulfil both the current and future needs. Nonetheless, certain conditions must also be fulfilled before the tourism planning approach can be achieved.
They include industry co-ordination, co-operation, non-sustainable options, consumer awareness regarding the issue of sustainability, commitment to the sustainable goals, and strategic planning.
The existence of sustainable tourism hinges on the ability of the tourism industry to embrace growth and development, along with varying levels of tourist at specific locations. This calls for proper planning. The paper argues that tourism development should be a concern for both the public and the private sectors
New Zealand is both a local as well as an international tourist destination and as such, the government is concerned about tourism growth because of its potential to generate foreign exchange. The government therefore plays an active role in the sector, through the Resource Management Act (Page & Thorn, 1997).
This is a body charged with the responsibility of enacting legislation regarding land planning laws with regard to tourism. In this case, emphasis is on pollution, soil management, and waste disposal. However, New Zealand has failed to achieve sustainable tourism alternatives both at the local and regional level because there is a lacking national strategy or policy to guide the principles documented by the Resource Management Act.
Research methods
The study made use of a survey to examine the issue of tourism sustainability both at the local and the regional level. The research methodology for the research study was designed to explore the level to which tourism acted as a fundamental activity in as far as the planning process is concerned, not to mention its function with regard to the Resource Management Act (Page & Thorn, 1997).
The survey was quite descriptive in nature. In this case, the main objective of the survey was to capture how councils plan their tourism activities as a foundation for further research. The survey questionnaire consisted of 21 specific questions, each of which had multiple responses.
The survey respondents were the planning managers at both the regional and local authorities within New Zealand. Therefore, the survey questionnaire was posted to the respondents and in order to encourage the response the questionnaire include a pre-paid return envelope. The study realized 49 responses out of the 81 posted.
Findings
The study realised a 64% response rate. It is worth of note hat of the 36% who did not respond, 50 % of these consisted of city councils. The non respondents were made up of primary rural and primary urban councils. Out of the 14 city councils interviewed, only 7 respondents and out of 55 district councils interviewed, only 22 did not respond. The patterns of identifying tourism reduced with increase in resident population.
The ability of the respondents to forecast on the anticipated volume of visitors within their localities was also low, at 12%. 50% of the respondents were optimistic that the 1999/2000 America’s Cup Defence and the Sydney 200 Olympics would have a positive impact on the industry (Page & Thorn, 1997). 63% of the respondents lacked a specific policy to tackle the issue of tourism within their area.
Although almost two-thirds of the councils had already implemented a visitor management strategy, many of them (65%) are yet to embrace it as a tourism strategy. The RMA legislation was met with resistance by a number of the council. In terms of development, a majority of these were attributed to the private sector (68%).
Discussion
Although tourism continues to enjoy social and economic importance in New Zealand, nonetheless the government has abandoned regional and local economies to grapple with the challenge of attending to future tourism development. The RMA has also not succeeded in establishing if indeed tourism needs to be constrained, deterred, or expanded in certain areas (Page & Thorn, 1997).
The domestic and international tourism may be enjoying economic and social benefits of tourism but owing to a lack of a national framework, these benefits cannot be spread out to larger localities.
Critique
Although the article argues that the New Zealand government recognised the need to strike a balance between the profit-oriented private sector and the public sector which is more concerned with the issue of economic optimisation, it is not clear yet why the Tourism Policy Group is both understaffed and underfunded, yet tourism remains a key employer in New Zealand.
It is also ironical that the same body is also charged with the responsibility of stimulating local and regional tourism. However, the study has managed to capitalise on one of the weaknesses of prior research studies that have failed to examine the role played by such statutory bodies as the RMA with respect to both local and regional tourism sustainability.
Nonetheless, the study is characterized by a number of discrepancies with regard to the respondents. For example, some of the councils responded on behalf of others and this not a reflection of the true findings of the study. The method of administering the questionnaires (postal survey) may also have played part in reducing the response rate.
Also, there was no follow-up of those respondents who did not submit their survey questionnaire, leaving the researchers to guess as to the lack of their response. The questionnaire was also detailed and demanding (21 multiple response questionnaires) and this could have contributed to the lack of completion of the questionnaire by some of the respondents.
Details on the volumes of domestic tourist are also very sketchy and yet the study intends to examine sustainable tourism at the local and regional levels. Planers and decision makers rely on outdated data and this may perhaps explain the lack of a clear picture on domestic tourism.
Generation of Question
One of the questions that could be generated from the current study is; does the future look bright for sustainable tourism planning in New Zealand?
Reference List
Page, S. J., & Thorn, K. J., 1997. Towards Sustainable Tourism Planning in New Zealand: Public Sector Planning Responses. Journal of Sustainable Tourism, 5(1).
Macpherson’s case study, “Golden goose or Trojan horse? Cruise ship tourism in
Pacific development” highlights how the pacific governments are in need of addition finances to support their demanding economy. They claim their economy is dwindling because of insufficient financial resources to support their respective economies. Therefore, the respective governments have devised diverse ways of raising money. One of the preferred methods is tourism (Macpherson 2008, p. 186).
The form of tourism arrived at concerns using ships as a means of transporting tourists across various preferred destinations. This type of tourism is referred to as cruise ship tourism. In this form of tourism, individual tourists use ships to access historical locations or geographical sites.
The main concern here is to gain access to remote areas and what needs to be done to facilitate access to these locations. Also, the pacific governments have released statistics demonstrating how the move will be beneficial and convenient to both the people and the states at large.
What would have changed 10 years on?
Had the concept of cruise ship tourism been introduced earlier, a number of improvements would have been achieved. Cruises create employment to the population and also give governments returns in form of taxes collected. This money can be spent to develop the economy of the country.
Also, there is the growth of marine- based industries. Various industries would have emerged by now had the cruise ship tourism started earlier. In addition, there would have an increase in the volume of businesses along the coastal region. This is because tourists enhance businesses whenever they tour an area.
They purchase local commodities, further aiding in the development of the local industries. Ship- based tourism incur fewer costs and lower financial risks than the land- based tourism involving hotels and motels. This is because a large portion of costs incurred in ship management and promotion of destinations are borne by the operator. If this type of tourism had been introduced earlier, a lot of money spent on inland tourism would have been directed to other development activities.
Advice to remote ship destinations
There is a challenge to countries located in remote areas that cannot be accessed by cruise ships. These countries should try and improve their coastal regions in order to allow ships of various sizes to access their coastal regions. It is vital for the government of the said countries to initiate programs that will help in developing their coastal line.
Countries with remote cruise ship destinations should be encouraged to build easily accessible destinations from which ships sailing along the coastal line can comfortably harbor. In addition, this tourism adventure is expected to increase in figure and therefore the respective governments are encouraged to collaborate in their effort to develop the coastline.
Also, as a secondary measure, these countries with remote destination should expose their geographical sites that are attractive to the tourists and capitalize on how to expand the area to allow quick and comfortable access. In conclusion, the countries should ensure the safety of their coastal region as this can be a limitation to their efforts.
Reference List
Macpherson, C., 2008. Golden goose or Trojan horse? Cruise ship tourism in Pacific development. Asia Pacific Viewpoint, Vol. 49, No. 2, pp. 185-197.
Sustainability is the concern for everyone who is concerned about the future success. Sustainability will enable the future generation to attain development and success. This will also ensure secure job opportunities and provide a platform for current development programs. The issue of sustainability is also found in the tourism industry.
In this case, the players in this industry are expected to engage in activities that have little or no impact on the environment. Such activities should allow for future employment of local people. Tourism is a major sector in the global economy.
The industry ranks as one of the largest industries in the world contributing a lot towards economic development. Therefore, this industry is a major concern since its fall can have a considerable effect on the world economy.
The airline transporters are the major contributors to the tourism industry. Tourism involves travelling across the globe, and planes are used for this purpose. Planes use fossil fuel as a source of energy and thus contribute to environmental pollution through carbon dioxide emission. Notably, carbon dioxide is a greenhouse gas that is very harmful to the environment.
Therefore, airline companies should take responsibility for the pollution caused by the aircrafts. They should establish programs whereby they will compensate for the pollution caused. This is possible through carbon offsetting programs. In addition, the companies can also engage in waste recycling projects.
This will help reduce the level of pollution by the waste products from companies. For waste that is not recyclable, they should develop ways of properly managing it to reduce its adverse effects.
Introduction
In the recent years, there have been efforts to engage in practices that have limited detrimental impact on the environment. Customers have been willing to spend significantly on practices and products that have limited damage on the environment. Similarly, there has been efforts to make the tourism and hospitality industry sustainable.
Sustainable tourism will make a very low negative impact on the environment and provide future employment opportunities for local residents. Sustainable tourism’s main objective is to make sure that local people enjoy a constructive relationship emanating from the developments in the tourism industry1.
Tourism is one of the largest industries in the world. It brings a lot of income to the international community. Therefore, it plays a major role in the economic development of many countries across the world. Sustainable tourism is different from ecotourism.
However, tourism and environment are closely related. Tourism involves travelling across the world to visit tourist sites, and the major means of transport is by air2. Various airlines are associated with the tourism and hospitality industry for transport purposes. They include Emirates airline, British Airline and Thai Airways.
This paper focuses on the effectiveness of sustainable practices, plans, programs, and initiatives implemented by industry operators and organizations within the tourism and hospitality industry. The three airlines will form the case studies for this paper. The paper will provide a policy planning for a sustainable tourism and hospitality industry.
Emirates Airline
This airline is found in the United Arab Emirates3. The airline is a subsidiary of the Emirates Groups, and it is the largest airline operating in the Middle East4. The airline is capable of operating as many as over 2500 flights in a week. It has terminals in over one hundred cities spread in over 70 countries across the world5.
(Source: Emirates group, 2011)6
As one of the largest airlines in the world, Emirates Airline is a major player in the tourism industry. Therefore, the airline company is critical in the establishment and development of a sustainable tourism and hospitality industry.
The airline has the capability to cause a share of the problems that affect sustainable development since aircrafts use fuels that emit carbon to the environment. In addition, tourism is a people-oriented industry that can make a significant contribution in loss of cultural heritage in communities, as well as economic dependency.
Carbon
Emirates airline can make a great impact on the environment depending on the aircraft they fly and the way the aircrafts are flown. It is for these reasons that the group has spent substantially investing in aircrafts that have a low, negative impact on the environment. In fact, Emirates airline runs the quietest aircrafts. In addition, their aircrafts have the lowest emissions of carbon.
The group further tries to be as efficient as it can in order to ensure that it makes a significant contribution in reducing its carbon footprint. This will further reduce its impact on the global environment. The company uses forms of energy that are efficient and have less damage to the environment.
The company released an environmental report in the year 2010-2011. In this report, the company acknowledged resource preservation as one of the major challenges that the company was going to face in its bid to establish a sustainable development. However, the sustainable development is not likely to be successful unless the general society adapts the principles of energy conservations as part of their core values7.
(Source: Emirates group, 2011)8.
Waste
One of the major ways to reduce environmental pollution is to manage waste effectively. Waste can be managed through recycling. This will ensure sustainable development. The tourism and hospitality industry has to be sustainable to ensure its future success and development. Therefore, airlines should be active in ensuring sustainability.
Emirates airline has been the leading airline in matters of sustainable tourism and hospitality industry. The group has initiated programs whereby it recycles waste products9. The programs target diverse range of waste products that are produced in the company. In fact, in the financial year 2010-11, there was close to 5000 tons of waste, which were recycles by the Emirates Group in Dubai.
The major objective for these recycling efforts is to pave the way for future initiatives. The waste materials recycled by the group include plastic bottles, printer cartridges, aluminum drink cans, paper, and cardboard, as well as steel cans.
The recycling is carried out at the Emirates Group Headquarters in Dubai. In the last financial year, the group collected over three hundred tones of recyclable materials. The waste materials were collected from the group’s office buildings10.
Carbon Offsetting
The company has policies that have been laid down to help in the conservation of ground and air environment. The company’s environmental policy is:
As the senior managers of the Emirates Group, we are committed at ensuring that environmental responsibility underpins our core values as an organization.
Our vision is to make the group an environmental leader in the aviation and in the travel industries. Our goals are to make sustainability and eco-efficiency the cornerstones of all group operations – both in the air, and on the ground.11
The company has been able to reduce its environmental degradation through carbon emission significantly by modifying its aircrafts to consume little fuel. In this case, they emit limited, carbon dioxide. The company’s aircrafts are the most efficient, and they use the latest technology to speed up transportation. This reduces the flight time and hence the amount of carbon dioxide emitted12.
(Source: Emirates, 2012)
British Airline
This is regarded as the main airline serving the United Kingdom. It is based in Waterside, which is located close to the airline’s main hub at London Heathrow Airport. Compared with other airlines in the United Kingdom, it has the largest fleet size, the biggest number of international flights, and the most international destinations. The airline is at number two behind Easy Jet concerning the number of passengers.
(Source: British Airways (a), 2012)13
Carbon
British Airways through its aircrafts contribute to the carbon emission. This has been an issue of major concern throughout the world. For this reason, the actions that the company takes to deal with the situation will be of major importance in ensuring a sustainable tourism and hospitality industry.
According to a report by British Airways in the year 2008/09, it was reported that over 50,000 tons of carbon dioxide had been offset by the airline. The airline set a target to reduce its carbon emission by half before the year 2050. For it to be successful in this bid, it requires to invest heavily in the development of sustainable bio jet fuel, technology, and emissions reduction measures that are cost effective14.
Waste
The company is aiming at reducing the amount of waste disposed to landfill. At the same time, it has also engaged in attempts to increase the level of recycling used materials. In case the waste materials are not recyclable, the company has strategies whereby it manages the waste in a responsible manner. The strategy has been gaining success since it was started.
In fact, the company recycled 35% of dry waste at Heathrow in the year 2008. This was an increase from the previous year’s 30%. The company has continued to increase its recycling centers to be in a position to handle a wide range of waste materials and the increasing amount of waste. The initiatives have contributed to the fall of the amount of waste in Heathrow15. The following group shows aircraft generation in the United Kingdom.
(Source: Newton, 2000)16
Carbon Offsetting
The company is aiming to create effective carbon trading markets as one of the ways to reduce emissions. It has developed a strategy known as the “British Airways’ Unique One Destination Carbon Fund.” This program aims to take a certain amount of money from customers, and use it to support activities aimed at reducing carbon emission and projects for generating renewable energy17.
Thai Airline
This is the largest airline operating in Thailand with its headquarters based in Bangkok. Its operations are primarily based at the Suvarnabhumi Airport.
Thai Airline carbon offset program
The company is a major contributor to carbon emissions through its aircrafts. Therefore, it is taking part in programs aimed at minimizing its impact on the environment. For this purpose, the company has adopted the IATA – administered carbon offset program.
In this program, the passengers are required to compensate for the emissions resulting from their travel. The money they contributed is directed towards programs managing the environment. Carbon offsetting is an important strategy used to reduce the effect18.
Waste
Thai Airways has been on the front line in the development of a sustainable tourism and hospitality industry. Thus, the company has engaged in several programs meant to develop innovative ways of recycling waste materials.
Among the innovations is the recycling of vegetable oil, which is a by-product in the production of in-flight meals, to form useful fuel. The company also recycles waste food to form fertilizers. Further, it neutralizes and disposes chemical wastewater used in plane maintenance.
Recommendations
Carbon offsetting programs should be set by all the companies that carry out activities, which contribute to carbon emission in an effort to compensate for the pollution caused. The companies should arrange to ensure that they get cash to be directed to the initiatives.
All airline companies should take responsibility for pollution caused through emission of carbon dioxide by their aircrafts. In addition, companies should develop alternative sources of energy that have limited damage to the environment. They can also use technology to come up with aircrafts that emit less carbon dioxide.
Companies should also engage in waste recycling to reduce pollution. There are waste materials that can be recycled and put into other constructive usage. However, there are waste materials that cannot be recycled. Companies should develop strategies to manage such waste properly in order to reduce their effect on the environment.
Conclusion
The issue of environmental pollution is of major concern due to its effects on global warming. Carbon emission is a great concern given that it is the most common greenhouse gas with significant effects. The level of pollution has to be put under control to secure a sustainable development.
The various aircrafts are major contributors of air pollution due to their carbon emission. Aircrafts use fossil fuel as a source of energy. Therefore, they should take the responsibility to control the situation. This will be important for maintaining sustainable tourism and hospitality industry in the future.
Bibliography
British Airways (a), One Destination Carbon Fund, 2012. Web.
British Airways (b), Flight Information, British Airways, 2012. Web.
Porter’s five forces analysis is necessary for the Mallorca Hotel Industry as it assists in comprehension of the market strengths and weaknesses. Although the Mallorca Hotel Industry has been a household name in the general tourism industry in the last five decades, the hotels in Mallorca Island have expanded business portfolio as a strategic competitive advantage initiative.
The expanded portfolio provides the hotels within the Mallorca Hotel Industry with a competitive advantage in the sense that they can still maintain profitable performance even in instances where the market swings in the tourism industry are negatively skewed. Through diversification and portfolio balance, the hotels within the Mallorca Hotel Industry are in a position to survive turbulence in the harsh economic environment characterized by stiff competition and sensitivity to market dynamics.
The paper attempts to explicitly carry out a Porter’s five forces analysis for the Mallorca Hotel Industry by reviews the elements such as bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes, and industry rivalry. Besides the paper explores the hotel target market in Mallorca and how the market will evolve by 2020.
Mallorca Hotel Industry: Porter Five Forces
The five forces determining the competitive advantage of hotels operating within the Mallorca Hotel Industry in the Mallorca Island are discussed below.
Potential entrants
The current players in the Mallorca Hotel Industry have been in existence for long and have very large production capacities. For instance, Palma de Mallorca, Acudia, and Playa de Plama hotels among others have diverse and very attractive tourism packages spread across the island. In fact, there are more than 1,200 well established hotels ranging from three stars, four stars, and five stars within the island.
Therefore, it is easy for these players to lower their prices as a competitive strategy since they directly benefit from economies of scale. Thus, a new entrant is disadvantaged in terms of pricing of its hotel services since it will not benefit from economies of scale in the same magnitude as the current industry players (Porter 21).
The cost of putting up a single well furnished hotel within the Mallorca Island is very expensive for a new entrant since the current players such as Palma de Mallorca, Acudia, and Playa de Plama hotels among others have breakeven and can easily manage the cost of running the hotels with clear market projections.
A new entrant will find itself in the mucky waters of trying to manage the cost of creating a new hotel brand name to compete the average industry cost, which may not be practical for a small establishment (Tynan and McKechnie 510). Players in the industry such as Palma de Mallorca, Acudia, and Playa de Plama hotels among others have diversified their products as part of portfolio balance strategy.
For instance, each of the above players have diversified hotel services to include business package, premium package, and economy package to boost the total revenues each year by serving clients within the high, middle, and low economic ends. A new entrant may not be able to compete with these players since their diverse products and strong brand presence is almost impossible to challenge, especially when the new entrant plans to start small (Porter 39).
The Mallorca Hotel Industry is characterized by capital intensive ventures since most of the hotel establishments are very expensive to maintain because of the high service quality standards and high cost of running the hotels. For instance, Playa de Plama has a capital worth of 1.2 billion dollars.
It is very difficult for a new entrant to easily enter this market and breakeven within two to three years since such ventures require a lot of capital in putting up the hotel, hiring skilled workers, and creating affordable and quality hotel services and packages targeting different classes of domestic and international tourists.
The cost of switching to different hotel service packages at the peak and off-peak periods is very high since it requires complete overhaul of the pricing, billing, service chatter, and logistic support (Tynan and McKechnie 509). This is not sustainable in the short run for new player with relatively limited capital. Within this aspect, switching cost for a new entrant may translate into closing down such a hotel.
The players in the Mallorca Hotel Industry such as Palma de Mallorca, Acudia, and Playa de Plama hotels among others have partnered booking agents spread across the Island and beyond, opening numerous business opportunities in all major cities and centers within the Spain territory. It would require massive capital for an aspiring investor to outperform their business prowess, in terms of established distribution channels.
A new entrant will be in a disadvantaged position when attempting to penetrate this industry. There are stringent rules by the government that must be followed by any player in this industry. As a legal requirement, each company in the industry is expected by the regulatory authorities to be tax compliant and meet the minimal threshold in terms of safety, environmental friendliness, labor laws, and other business requirements (Porter 36).
The approval process is very long and expensive for a new entrant with limited capital. From this analysis, it is apparent that the threat of a new entrant is very low since the switching cost and capital requirement are very high for a new player. Besides, the current players have high competitive advantage as a result of benefits from brand differentiation and economies of scale.
Threat of substitutes
Palma de Mallorca, Acudia, Playa de Plama, and other hotels pose the greatest threat to existence and business performance of a new player in the Mallorca Hotel Industry. These hotels have been in the industry for long period and are well established. The above hotels have almost similar hotel service packages that are customized and sometimes offer big discounts to customers.
In the Mallorca Hotel Industry, loyalty to a brand plays an important role in customer behavior since the hotel industry is very sensitive to changes in customer preference for different products and services (Tynan and McKechnie 511). Therefore, Palma de Mallorca, Acudia, and Playa de Plama among other hotels have the ability to offer an alternative perfect substitute to customers who may be unsatisfied with hotel service packages offered by other players within the Mallorca Hotel Industry.
Unsatisfied customers have other alternatives from where they can get similar and competitive hotel service packages within the Mallorca Hotel Industry from the numerous players (Porter 34).
However, the threat of substitutes is moderate since changing a brand is very expensive for customers in terms changing loyalty points, flexible services for repeat visits, and customized nature of the services in each hotel. In order to remain relevant, the hotels within the Mallorca Hotel Industry have established unique market for their customer through tailored optometry hotel products that are customized.
Power of suppliers
Suppliers in the Mallorca Hotel Industry have power owing to the existence of many players and high demand for different hotel related services used by the establishments within the Mallorca Island. Since suppliers within the Mallorca Hotel Industry operate at local and international levels, their influence differs (Tynan and McKechnie 513). For instance, China, India, and Spain supply the largest volume of services to the hotels within the Mallorca Island.
As a matter of fact, suppliers may instigate market demand and supply variances since most of the raw materials used in this industry such as menus, ingredients, transport services and booking are imported from Asia, Europe, and the US. All the players depend on the suppliers such as tour company operators directly for the delivery customers that can pay competitive prices for different services offered by hotels within the Mallorca Hotel Industry.
This leaves the suppliers with the power to dictate on proceedings in the industry such as the cost of agency fees as a percentage of each hotel service package and their availability (Tynan and McKechnie 513). However, through series of partnership agreements with independent manufacturers and ticket vendors, the players in the Mallorca Hotel Industry have managed to curtail the power of the suppliers to moderate since there are series of jointly negotiated deals on the cost of these services through formal contracts and outsourcing from more than one supplier. Besides, the major players in the Mallorca Hotel Industry have endeavored to use their deep reservoirs as a strategy for balancing the supply forces in the fragile hotel services market of the Mallorca Island.
Power of buyers
Reflectively, the amount of output in terms of turn over sales depends on the buyers’ purchasing power within the Mallorca Hotel Industry since the hotels fully depend on the availability of customers. The higher the purchasing power, the better the turnover in total sales realized over a definite period of time.
The performances of Palma de Mallorca, Acudia, and Playa de Plama among other hotels in the Mallorca Hotel Industry depend highly on the power of the hotel service package consumers who are local and international tourists visiting the Mallorca Island. On the other hand, unreliable and weak purchasing power translates into losses and underperformance (Porter 24).
For instance, during the off-peak (winter), most the hotels record booking equivalent to half of their capacity during peak season. The players must therefore do everything within their means to ensure that service delivery and quality meets the expectations of customers since the power of the buyers is very high in this industry by customizing the hotel service packages, offering discounts, and delivering high end services.
Rivalry
There are several players such as Palma de Mallorca, Acudia, and Playa de Plama among other hotels operating in the Mallorca Hotel Industry with virtually all of them dealing in a variety of hotel service packages, which can perform similar functions to customers. With many customers looking for good value for their money, quality, and affordability of the hotel service packages have remained the main basis upon which customers make their final decision to purchase products in the dynamic and stratified Mallorca Hotel Industry.
All the players in the industry are putting measures in place to ensure they attract more customers and therefore expand their market share through creation of a smooth supply chain, diversification, and brand positioning (Porter 19). Therefore, the size, in terms of space occupied by business premises, defines the temperature of the competition.
For instance, the hotels are divided into three stars, four stars, and five stars to serve specific customer segments. In line with this, the Playa de Plama boosts of being the biggest and most luxurious hotel in the Mallorca Island. The influence of rivalry is very high due to existence of very many players with the same product brands that have similar price range (Porter 24).
Conclusion
From the above analysis, it is apparent that the Mallorca Hotel Industry is dominated by strong hotel brands that have been in the market for a long period of time. The players in the industry offer very competitive hotel service packages as a strategy for sustaining their business activities in the dynamic Mallorca Island. Apparently, the influences of all the five force of porter are very high in the Mallorca Hotel Industry.
For instance, it is difficult for a new hotel brand to enter and penetrate the industry due to high capital outlay, strong brand presence, and stringent registration and regulation laws. In terms of threat of substitute, a new entrant in the market will have to come up with very unique products since hotel package services within the Mallorca Hotel Industry are perfect substitutes, despite slight variances in pricing and packaging.
Suppliers in the Mallorca Hotel Industry have very high power due to existence of many hotels within the Mallorca Island demanding for services such as ticketing agencies, tour guides, and different menus/ingredients for local and international clients. The power of the buyer is very high since the common business-to-customer platform is dependent on customer satisfaction and perception of quality of the hotel package service.
The hotels within the Mallorca Hotel Industry are very sensitive to changes in customer preference. Therefore, the players in the industry must Endeavour to create high quality products that meet the expectations of customers to remain competitive.
Lastly, in terms of rivalry, the industry has several players such as Palma de Mallorca, Acudia, and Playa de Plama among other hotels competing for similar customer and market segments. Therefore, each player must expand its market share through creation of a smooth supply chain, diversification, and brand positioning to survive rivalry since the impact of rivalry is very high in the Mallorca Hotel Industry.
Hotel Target Market in Mallorca
Targeted clients
The hotels in Mallorca target the domestic and international tourists in need of hotel package products such as accommodation, meals, and other services. The clients are further segmented into low end and high end customers. The low end customers are clients in need of affordable but comfortable hotel services while the high end customers are tourist in need of luxury hotel services (Cheverton 35). Each segment of the customers may consist of family, individual, corporate, and institution tourists visiting the Mallorca Island.
The needs of the targeted clients
The needs of the target customers are competitive prices, high quality products, flexible services, friendly environment, and authentic product presentation as part of the outcome driven creativity. This means that the targeted customer are interested in innovative service provision model that guarantee their satisfaction since choosing these hotels signifies deep trust they have towards the different hotel brand within the Mallorca Hotel Industry (Ulwick 28).
There is need to increase the scope of operations through strategic and innovative ideas of tourism service delivery to customers to meet the desires of the clients. There is also need to provide efficient, cost effective, and comprehensive logistics services to customers to guarantee complete satisfaction (Ulwick 29).
Te customer expect the hotels to incorporate interesting features to the existing hotel service so as to cater to the changing demands and needs of different service packages. Besides, the targeted customers want excellent marketing, advertisement and promotional strategies that can win their confidence and loyalty to the different hotel brands within the Mallorca Hotel Industry (Ulwick 31).
The other factor is the choice of distribution channel that the company decides to use. A company should choose a channel that is most appealing and convenient to customers. The second factor that determines success is the product line breadth of the company in addressing the desires of customers. For a company to be successful, it must offer a wide variety of differentiated products that are designed to meet the needs of different customers.
The third factor is the pricing strategy that the hotels use. A hotel within the Mallorca Hotel Industry will be well positioned in a business industry when its products are relatively cheaper as compared to its competitors as perceived by the customer. The final factor that can contribute to success as perceived by the customer in the Mallorca Hotel Industry is the geographical coverage of the hotel in terms of multiple product brands with different purchase/uptake bundles (Ulwick 21).
How Mallorca Market Will Evolve by 2020
The Mallorca market will evolve by 2020 into a more complex, technological oriented and highly stratified as the demographic dynamics of customers are not static. Since the industry targets clients across the globe, the customers may not be the same if integrative marketing strategies are misapplied.
In trying to ensure that the marketing strategies for the industry are effective, there is the challenge of sustainability, especially in the dynamic Mallorca market since majority of the targeted customers in this sector can easily change their preference (Bowden 69). It may not be easy to create a sustainable marketing plan to cover the market dynamics of the 2020 if the strategic marketing approach is skewed towards a single business platform.
Besides, the needs of the customers will not remain the same since clients are often responsive to innovative ideas and would want to associate with what they perceive as ideal. The difference in the need by the year 2020 could be attributed to the dynamics that determine customer behavior as influenced by the current and future customer relationship management strategies.
It is very difficult to create a strategic and effective customer relationship management approaches to guarantee customer loyalty for a period of more than five years since the needs of customers will not be the same. Through the laggard activism strategy, some hotels might be able to guarantee customer loyalty in the long term by offering premium customer experience, low charges, and compact customer care support.
In the long term, any hotel that wants to remain competitive by the year 2020 must establish a contact management system that integrates the standard operating procedures that promote consistency in customer service. These strategies are aimed at ensuring continuous expansion and customer satisfaction through the business to customer (B2C) strategy for sustainable business (Blythe 34).
Works Cited
Blythe, Jean. Essentials of Marketing Communications, New York, NY: FT/Prentice Hall, 2006. Print.
Bowden, John. “The Process of Customer Engagement: A Conceptual Framework.” Journal of Marketing Theory & Practice, 17.1(2009): 63-74. Print.
Cheverton, Philip. Key Marketing Skills: Strategies, Tools, and Techniques for Marketing Success, London, UK: Kogan Page, 2004. Print.
Porter, Michael. Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York, NY: Simon and Schuster, 2008. Print.
Tynan, Caroline and Sandra McKechnie. “Experience Marketing: A Review and Reassessment.” Journal of Marketing Management 25.6 (2008): 501-527. Print.
Ulwick, Anthony. What Customers Want: Using Outcome-Driven Innovation to Create Breakthrough Products and Services: Using Outcome-Driven Innovation to Create Breakthrough Products and Services, New York, NY: McGraw Hill Professional, 2005. Print.
