Tourism in the Latin America has become a vital revenue source, mostly in Meso-America and the Andes. In this case, tourism looks at the culture of these Americans and also the physical aspect of the region. Many tourists go to the regions of Latin America for the purpose of cite-seeing or cultural interactions.
There has been a colossal contribution towards the economy from the sector of tourism. Tourism has contributed towards the population flow in the countries of this region like Brazil (Lumsdon and Swift, 2001).
Tourists move away from their home areas in search of cultures that appeal to them and also to interact with the native people. This cultural tourism occurs in close contact with the local society. Most of these countries are rich in culture. The citizens of Brazil, for instance, have a vast variety of food and a diverse social life.
This has increased number of tourists visiting the area. Due to this influx of tourists, there is an urgent need for a suitable strategy that will address their needs. In the Latin American regions, it is not only the culture of its inhabitants that attract tourists but also the entertainment and the sporting activities of the region (Gui, 2001). The Latin America is made up of many countries that have a desirable geographical value and culture.
Such countries as Brazil and Ecuador have a lot to offer the outside world. This paper looks at the impacts of trade on the environment and the culture of Salvador. In order to understand this aspect of tourism, both local and foreign tourism are brought into focus. This case study will consider culture as the main tourist attraction in Bahia.
Tourism has greatly impacted the region in several ways. For instance, Bahia was visited by over two million tourists in the year 1993. Statistics shows that this number is expected to rise to four million visitors, leaving Bahia to be the second largest tourist attraction spot after Rio de Janeiro.
Research shows that “the government invested more than twenty million dollars in the sector for the year 1993 and 1994” (Stonich, 2001). During this time, Brazil was in the forty seventh rank of attraction centers internationally. This gives Salvador hope for improved tourist activity in time to come.
According to Stonich (2001), many Latin American countries have also experienced a similar growth in their tourism industry. Apart from Bahia, tourism is seen as the means of rehabilitating the prime ancient districts. These ancient centers have been found to appeal greatly to the foreign tourists.
The architectural designs of the region are the most notable of the all the other attractions. In other nations like Salvador, rehabilitation has brought about the issue of depopulation of the areas (Lumsdon and Swift, 2001). These areas were inhabited by the poor in the urban centers who finally ended up in the slum areas. In most cases, tourism is reckoned to be the means of improving the poor regions from the economic perspective.
For many Third World nations, “an admired architectural heritage and culture are considered as an economic treasure and asset” (Gui, 2001). Tourism has had a large impact on the economy of many countries (Stonich, 2001). The impact of tourism on the economy of many Latin American nations is major. Tourism is the main foreign exchange earner that plays a fundamental role in the development of these nations.
Works Cited
Gui, Santana. Tourism in South America. New York: Haworth Hospitality Press, 2001. Print.
Lumsdon, Les, & Jonathan Swift. Tourism in Latin America. Cengage Learning, 2001. Print.
Stonich, Susan. The Other Side of Paradise: Tourism, Conservation, and Development in the Bay Islands. New York: Cognizant Communication Corp, 2000. Print.
Greece is one of the most attractive European countries for tourists from all over the world because of the country’s status as the place where history and myths meet modernity. The capital city of Greece is Athens.
Before the 2004 Olympic Games, the capital city attracted a lot of tourists who were interested in history, arts, and philosophy because of the possibility to visit Acropolis, the famous Greek temple Parthenon, many museums and galleries.
After the 2004 Olympic Games, the city is also known as one of the most visited European capitals. The major cities of Greece have not only the social but also historical significance as the European cultural heritage (Dubin).
Thus, the next city which is popular with tourists is the Rhodes City. It can be characterized by a lot of historical and archeological sites such as the Colossus of Rhodes and the numerous medieval structures in the Medieval City of Rhodes. Thousands of tourists visit the island of Rhodes and the city to see the Acropolis of Rhodes and the Temple of Apollo.
Moreover, the economy of Rhodes depends on the city’s nightlife in which tourists take the active part. It is important to note that each country’s region has its main city which plays the significant role in the country’s development and contributes to its economy.
Chania with the Samaria National Park and Heraklion are important for the development of Crete (Clark). Tourism in Thessaloniki is influential for the economic sector of the Macedonia region.
Economic and social implications of tourism
Tourism influences the economy and social life of Greece significantly. Greece is discussed as one of the European countries which have the definite economic problems, and tourism is considered as the way to stabilize the situation in the country. However, it is necessary to realize a lot of improvements in the field in order to maximize the possible benefits.
The dependence of the Greek economy on tourism is explained by the fact that the industrial sector of the country is not developed, and the orientation to the exporting agriculture requires many reforms, focusing on developing new distribution channels. From this point, tourism is important for increasing the Gross National Product of the country (Buhalis and Diamantis).
The particular features of the social life in Greece also depend on the development of tourism. Thus, the labor market of the country is closely associated with the seasonal character of tourism in Greece. The migrations of tourists cause the migrations of the workforce within the country.
The tourism sector provides the young population with jobs. Moreover, it is possible to speak about the gender character of distributing jobs because women are mainly employed in the tourism sector.
The accents made by the country’s leaders on the development of tourism are significant for the population not only because of the great job opportunities but also because the positive alternations in the Greek infrastructure are connected with the objectives to attract more tourists (Mak). The effects can be observed in the spheres of telecommunications, health services, and transportation.
Cultural factors
The culture and history are the main factors which attract tourists to visit Greece. The Greek resorts and spa centers take only the second position after visiting the archeological sites and museums of the country. The cultural diversity and uniqueness of Greece depends on the features of its location.
This territory is often discussed by historians as the cradle of the European history and culture based on the combination of myths, archeological sites, and philosophical works. Many tourists are impressed by the historical and archeological destinations and by different traditions and practices which have various roots, but they are combined at these lands.
The major trade ways crossed the country located between the Eastern and Western worlds. The Greek culture is based on the combination of the Christian and Islamic traditions which are the results of the impact of Byzantine and the Ottoman Empire. That is why, the major part of the country’s population is the Orthodox Christians, and the other significant part is the Muslims.
Thus, the examples of the Christian and Islamic cultures can be seen in each city of Greece where magnificent churches are located. However, the Greek culture is not only the combination of definite religious traditions as a result of the years of the empires’ dominance.
A lot of tourists visit Greece in order to observe the national customs, food traditions, and pay attention to the measured attitude of Greeks to their life (Bowman and Kerasiotis).
Climate and topography
The climate of Greece depends on its location and the particular features of the landscape. Many tourists concentrate on the fact that Greece is the country with the significant coastline where a lot of resorts are located. Furthermore, there are many wonderful islands with the mild climate.
That is why, a lot of opportunities are provided for diving, sailing, and cruising. Moreover, those people who are interested in mountains can observe the great mountainous landscape at the main territory of the country.
The Mediterranean climate is characteristic for Greece. Hot and dry periods of the weather from April till November are good for the development of tourism in the region. The rainy season is from November till March.
The best period for visiting the Greek islands is in June and September to avoid the warmest weather in the region during July and August. However, when the weather is not good for spending time at the beaches, it is possible to do sightseeing. Nevertheless, it is important to note that Greece is also characterized by the Alpine climate typical for the mountainous areas and by the Continental climate at the north of the country (Duke).
Demographics
The population of Greece is 11 million people. More than 17 million of tourists visit the country each year. The population of the country consists of the Greek majority. Nevertheless, it is important to pay attention to the diversity of the Greek population among which it is possible to determine minorities speaking different dialects.
Thus, the population of Greece is inclined to divide itself into Cretans, Maniots, Pontians, and other groups. The demographics of the tourists are also diverse. The majority of tourists are from the European countries, and they mostly visit Athens and Crete.
A lot of tourists are from the Americas. In spite of the fact the population of the Asian countries is not interested in visiting Greece, the tendency begins to change in the 2000s (Bowman and Kerasiotis).
Major tourist’s attractions
The major tourist’s attractions are the historical and archeological sites in the main cities of the country, islands, and resorts located at the country’s coastline. The visitors who come to Athens pay attention to the famous Acropolis, the Kallimarmaron stadium and observe the pieces of history in the National Archaeological Museum.
The capital of Greece is discussed as the main tourist’s city with a lot of archeological attractions and remarkable destinations. After visiting Athens, tourists often go to Delphi, Ithaca, and Olympia to experience the unity with the ancient history.
Nevertheless, the beaches of the Greek islands attract more tourists in comparison with Athens in summer. The Greek island Corfu is also popular for many attractions.
Tourists have the great opportunity to enjoy the warm waters of the Ionian Sea and observe the wonderful examples of the Venetian-Roman style architecture at the territory of the island. The volcanic island Santorini in the Aegean Sea attracts the lovers of romantic sunsets. It is the best place to see unique black sandy beaches (Clark).
Markets and competitive advantages and disadvantages
In spite of the fact the economy of Greece is based on the development of the tourism sector significantly, there are a lot of problems which prevent the country from competing effectively with the other European countries.
To analyze the market and advantages and disadvantages of the process, it is important to pay attention to the strengths and weaknesses of the sector’s development and management. The advantages of the process are in the fact that tourism sector is based on the definite natural and cultural resources, and it can be characterized by flexibility and the strong local character.
However, the supporting markets and industries are not developed enough to compete successfully; the problems are observed in management and marketing structures; infrastructure does not respond to the tourism seasonality (Buhalis).
To create the supporting conditions for the development of tourism in Greece and for increasing the sector’s competitiveness within the global market, it is necessary to focus on intensifying the standardization, training of tourism employees, and improving the quality of the services provided.
Today, the main problems in the sphere of tourism are connected with increasing the level of infrastructure to the world standards, concentrating on the transportation and hotel services. It is important to develop a new competitive strategy for managing and regulating the tourism sector in Greece.
Existing tourist infrastructure
The present-day tourist infrastructure of the country depends on the effects of the 2004 Olympic Games. The developed tourist infrastructure can be observed in the major Greek cities and on the islands where the famous resorts are located.
The most luxurious hotels attract visitors in Athens and in the region of Thessaloniki as well as on Crete. The development of infrastructure in Greece is slower than in the other countries, and the standards in hotels can differ from the worldwide standards and tourists’ expectations.
The most famous hotels and spa centers are located at the seacoasts to attract more visitors to such Greek destinations as resorts and the mild climate (Wickens). Thus, the distribution of hotels in the country depends on the tourists’ demands significantly.
Camps are also popular in Greece along with the traditional hotels. The camp sites can be found in Macedonia and Peloponnese, and they are chosen by the representatives of eco-tourists. Those tourists who visit the mainland territories of Greece and its major cities often choose rental rooms which are associated with a kind of intrusion and certain Greek traditions.
To contribute to attracting more tourists, the leaders of the country focused on developing the transportation systems and increasing the possibilities of the Athens International Airport and other international airports.
The role of the State Department of Tourism or National Tourism Organization
In Greece, the questions of the tourism sector in the country are resolved by the Ministry of Culture and Tourism in association with the Greek National Tourism Organization (GNTO). The Ministry and GNTO are responsible for developing the tourism policy in the country and for controlling the aspects of the policy’s realization.
The significance of tourism for the country’s Government can be explained by the fact the economy of Greece is based mainly on tourism. Much attention is paid to planning and implementing the effective strategies for the sector’s further progress. The most controversial issues discussed by the Ministry and GNTO are the questions of the correlation between the public and private sector within the market.
Conclusions
It is possible to conclude that tourism industry in Greece plays the significant role in the economic development of the country, but definite difficulties in the tourism sector’s progress influence the process negatively. The positive changes in the approach to tourism as the important factor for the country’s economic growth began after the 2004 Olympic Games.
A lot of improvements and alternations were realized in the tourist’s infrastructure. Nevertheless, to achieve significant results, it is necessary to pay attention to larger changes in the tourism sector of the country. The role of tourism in the Greek coastal regions is difficult to be overestimated. Moreover, the tendencies in the tourism sector influence the labor market of the country.
From this point, any positive changes in the tourism industry can result in improving the social life of the country because the trends in the tourists’ attracting are closely connected with the rates of unemployment within the country.
Tourism industry should be developed in Greece in order to contribute to maintaining the economic stability in the country. It is important to concentrate on the issue that tourism industry develops in various regions of Greece differently, and this fact is also significant for the country’s economic progress.
Recommendations to visitors
Before visiting Greece, it is important to pay attention to the necessary vaccinations and medications. The vaccinations are not required for the representatives of the USA and Canada.
The aspects of the standardization of the Greek hotels differ from the international rules to rate the hotels. That is why, it is important to pay attention to the rate of the chosen hotel with references to the both systems of rating in order to avoid possible problems with determining the required facilities.
A lot of tourists can experience difficulties associated with the fact that many people in Greece have the habit to smoke. That is why, it is important to focus on the places which are divided into the areas for smokers and non-smokers and where smoking is forbidden.
The choice of the time for travelling in Greece can depend on the season in the country. Thus, many tourists can experience problems while visiting Greece during the rainy season (Bowman and Kerasiotis).
Works Cited
Bowman, John, and Peter Kerasiotis. Frommer’s Greece. USA: Frommers, 2010. Print.
Buhalis, Dimitrios. “Relationships in the Distribution Channel of Tourism: Conflicts between Hoteliers and Tour Operators in the Mediterranean Region”. Journal of International Hospitality, Leisure and Tourism Administration 1.1 (2000): 113–39. Print.
Buhalis, Dimitrios, and Dimitrios Diamantis. “Tourism Development and Sustainability on the Greek Archipelagos”. Tourism in the Mediterranean. Ed. Georg Apostolopoulos and Dimitrios Ioannides. USA: Routledge, 2001. 28-50. Print.
Clark, Richard. Crete – A Notebook: Journeys through a Mystical Landscape. Greece: CreateSpace Independent Publishing Platform, 2012. Print.
Dubin, Marc. Greece Athens and the Mainland. Greece: DK Travel, 2011. Print.
Duke, Philip. The Tourists Gaze, the Cretans Glance: Archaeology and Tourism on a Greek Island. USA: Left Coast Press, 2007. Print.
Mak, James. Tourism and the Economy: Understanding the Economics of Tourism. USA: University of Hawaii Press, 2003. Print.
Wickens, Eric. “Rethinking Tourists’ Experiences”. Motivations, Behaviour and Tourist Types. Ed. Marc Robinson. Sunderland: Business Education Publishers, 2000. 455–472. Print.
The Impact of Terrorism on Tourism Demand by Jorge E. Arana and Carmelo J. Leon
Terrorism poses a threat to the security of a country and thus it has a negative impact to the tourism demand. The authors of this article major on the effects of September 11 terrorist attacks on the tourism sector. Due to the attacks, some destinations lost image and attractiveness while others upgraded their attractiveness.
The tourism industry is very sensitive to the negative events of a country such as political violence and terrorist threats and attacks (Arana & Leon 2008). The absence of security threats facilitates the developments of world’s tourist destinations. Terrorism has a great effect on the tourism industry as it affects accommodation facilities, transport infrastructure, urban and environmental management, and international relations between nations.
The success of a country’s tourism industry depends on various factors, which determine the purchasing decision of a tourist. Some major factors contribute to the success of the tourism industry and they include leisure, job opportunities, education, exploration, and others. Hence, the purchasing decision of a tourist is dependent on many factors including availability of theme parks, quality of services at accommodation centres, and social centres, working environment, and personal security among others.
Tourists value peace and tranquillity for pleasure and other activities offered at the preferred destinations as the most important factor in the selection of a tourism destination. The study showed that the September 11 terror attacks affected the international tourism in major parts of the world. Tourists feared for their personal security in overseas nations and airline transports. They feared terrorists’ retaliations and thus there was tourists’ shock in the world tourism industries.
In addition, the study highlighted the fact that the September 11 terror attacks were main contributors to the decreased number of tourists in Mediterranean and Canary Islands. The study found a 25 per cent monetary decrease in tourists’ willingness to pay for average package for various tourist destinations (Gilbert & Terrata 2001).
On the other hand, the tourism industry has a quick ability to recover from negative economic effects. However, the recovery depends on the speed of correction of the negative economic events. The authors argue that in the event of unrepeated terrorist attacks, tourism industry takes a six to twelve months period to achieve full recovery. Hence, terrorism affects both the purchasing and travel decisions in the tourism industry.
The study also found that the magnitude of the effect of the September 11 attacks affected world nations differently. Three forms of dimension, viz. cultural aspect, individual experience, and cost of risk avoidance played a major role in determining the magnitude of effect on a destination.
Beginning with the cultural aspect, countries with high Islamic population suffered the biggest blow. Tourists feared for their personal security due to prejudice that resulted from the attacks directed to the Muslims (Gilbert &Terrata 2001). Secondly, individual experience also played a major role in determining the effect of tourists’ purchasing choices.
Many people feared for their security due to high tension and anxiety that the world nations were experiencing. Tourists chose to go to the destinations that have less Islamic populations as opposed to those with high Islamic populations (Gilbert & Terrata 2001). Thirdly, the cost of avoiding the risk also played a major role in determining the effect of the September 11 terror attack to a country.
Due to the tourism shock, most of the tourist destinations were negatively affected, and thus it became a costly affair to make a choice of one’s destination. The choice of destination determines the degree of risk avoidance and hence prone to the negative effects of terrorism.
An Explanatory Study of Factors of Japanese Tourism Demand for the UK by: David Gilbert and Mikiko Terrata
The study shows the effects of cultural aspects in the Japanese tourism demand and purchasing decisions. According to the study, culture, language, and novelty among other UK features are the major pull factors of the Japanese tourism in the UK. The authors argue that individual’s motivation or in other words, the external and internal forces that guide a person play a greater role in the tourism industry.
The authors looked into tourism from the leisure perspective part of it rather than from the perspective of mere travelling to a unique destination. In tourism, there are positive internal and external forces, which drive an individual to travelling to specific world destinations.
On the other hand, other forces compel an individual to avoid travelling to some destinations as well. According to the Japanese culture, tourists are attracted to tangible products, but are unsatisfied with intangible aspects like spiritual and spare time space (Gilbert & Terrata 2001).
The authors argue that traditionally, Japanese tourists used to travel just for the sake of travelling, but the motivation has changed from that of tradition behaviour to travelling for specific objectives. The Japanese have the eagerness to learn new knowledge and enjoy the world’s adventures, which underscore the most common motivation of tourism, but motivations depend on the nature of demographics such as age, marital status, and gender.
For instance, young tourists are more adventurous than old tourists are, and thus more likely to travel overseas for adventure. However, many factors hinder the Japanese tourism and they include security concern, foreign language, cost of travelling, fear of flying, and need to care for the home and family among other reasons. Language is one of the most common factors that hinder the Japanese tourism. Many tourists learn foreign languages before travelling to overseas countries because the Japanese is a universal language in Japan.
Economic recession also determines the purchasing decisions of the Japanese tourists. The Japanese currency, Yen, is very vulnerable to economic recessions. In the recent recession, the Japanese Yen lost value to other foreign currencies. Consequently, Japanese tourists had a problem for cost of tourism was higher than normal and thus difficult for most of them to travel outside Japan (Lang, O’Leary & Morrison 1993).
Another factor that affects Japanese tourists’ purchasing decision is time and expense. Naturally, the Japanese are hardworking people and in most cases referred to as workaholics by other cultures. There is a cultural misconception that they feel guilty whenever they leave their colleagues at work.
Therefore, it is extremely difficult for a Japanese to leave his or her work for the sake of leisure. In most cases, they like travelling for economic reasons rather than for leisure as they consider such a move as a waste of timer (Montgomery 1992). Security concern is another crucial factor that affects the Japanese tourism.
Japan rates as one of the safest countries in the world according to their vow of not participating in international conflict and military involving activities after the World War II. As a result, the Japanese feel more insecure while in the other world countries than at their home country. The international threats of terrorist attacks in the world countries over the recent past have contributed to a great reduction of the Japanese tourists (Lang, O’Leary & Morrison 1993).
Comparing the two papers, both are persuasive, but the paper by David Gilbert and Mikiko Terrata is more reliable. Tourists’ purchasing decisions are dependent on various factors, which the second paper has elaborated extensively. Terrorism is an international threat and affects the tourism demand just like any other economic elements. Hence, the first paper, The Impact of Terrorism on Tourism Demand, is persuasive, but less reliable as compared to the second paper.
Culture is a major factor that determines the tourists’ purchasing decision. Every individual across the world is associated with a particular culture, which dictates the acceptable behaviours and activities of that person. Therefore, tourists determine their tourism destinations and purchasing decisions according to their cultures and beliefs. The second paper has provided evidence for this point whereby Japanese culture dictates time management and work as a person’s moral obligation (Gilbert & Terrata 2001).
Language concern is a major factor that affects international tourism. Tourists from countries that do not use universal languages as national languages experience problems when leaning other languages. Japan is a good example of such nations where the Japanese language is the national language, and thus the citizens are required to learn other foreign languages such as English in order to travel to other parts of the world.
There are other important journals of tourism. I looked into the article “Tourism management: purchasing decisions” in the International Journal of Tourism Management by John Fletcher and “Professing tourism: Tourism academics as educators, researchers and change leaders” in the Journal of Tourism Studies by Philip L. Pearce. The authors of the two journals have broadly discussed the issues of tourism.
From the above literature review, the authors have discussed the factors that influence the purchasing decisions of tourists. On the other hand, these two journals have discussed the management of tourism in a broader perspective. Government and locals have the sole responsibility of tourism management in a country. The government sets the policies meant to encourage foreign and local tourism as well as putting infrastructure in place to see to it that the tourism sector is running smoothly (Pearce 2005).
In addition to setting up policies, the government is also responsible for ensuring the security of tourists’ attraction sites against any threats. Tourists also need protection from any threats and it is the responsibility of the government to enforce laws as a measure of ensuring security in a country. Security of tourists and tourism sites is a priority of the tourism regulation boards, and thus the government should oversee the same (Fletcher 2013).
References List
Arana, J & Leon, C 2008, ‘The impact of terrorism on tourist demand’, Annals of Tourism Research, vol.35 no. 2, pp. 299-315.
Fletcher, J 2013, ‘Tourism management: purchasing decisions’, International Journal of Tourism Research, vol. 15 no. 2, pp.105-108.
Gilbert, D & Terrata, M 2001, ‘An exploratory study of factors of Japanese tourism demand for the UK’, International Journal of Contemporary Hospitality Management, vol.13 no. 2, pp. 70-78.
Lang, C, O’Leary, J & Morrison, A 1993, ‘Activity segmentation of Japanese female overseas travellers’, Journal of Travel and Tourism Marketing, vol. 2 no. 4, pp. 1-22.
Montgomery, M 1992, ‘The Japanese Market: a profile’, Tourism Intelligence Quarterly, vol.14, no. 2, pp.57-64.
Pearce, L 2005, ‘Professing tourism: Tourism academics as educators, researchers and change leaders’, The Journal of Tourism Studies, vol. 16 no. 2, pp.98-102.
Ryan, C & Gu, H 2009, ‘Tourism in China: Destination, Cultures and Communities, Routledge, New York.
Woodside, A & Martin, D 2008, Tourism Management; Analysis, Behaviors, and Strategy, CABI, London.
The Australian tourism and hospitality industry has continued to grow tremendously. Currently, the sector contributes significantly to the country’s GDP. Despite global threats such as terrorism and economic depression, the sector has continued to bolster impressive results.
However, with the growing competition from other countries such as South Africa, USA, and China, many factors need to be considered to gain a competitive edge. Price and quantity demanded are the principal guidelines to setting prices of facilities in this sector. As such, the country should endeavour to provide competitive prices as well as the right quantity to its domestic and international tourists.
Price and Quantity Adjustments for Australian Tourism and Hospitality Products
The impact on the market for Australian tourism products of a decrease in the price of tourism products in the United States
A decrease in the price of United States tourism products will have a significant effect on the demand for Australian tourism products. This will affect the demand curve of Australian tourism products. This phenomenon can be best explained using the traditional demand and supply curve.
Figure 1: Demand and Supply of Hospitality Products 10 50 100 150 200 250
Assuming the graph is representative of the current Australian tourism demand and supply trend, we can conclude that the quantity demanded of hospitality products is 100 units at a price of 15. This is, therefore, our Australian market equilibrium.
However, it is generally accepted that marketing, technological advancements, and pricing policies of competitors can easily destabilise market equilibrium. Nada and Sarath notes that since the United States and Australian tourism industry share a lot, any changes in market activities in one region, easily affect the other party1. By reducing the prices of its products, the United States will attract more tourist, local, and international, to use its affordable facilities. This will consequently reduce the demand for Australian tourism products, which will be viewed by many tourists as too expensive. In this case, services become substitutes for one another.
Since the effect is price motivated, there will be a movement along the demand curve, but not a shift of the demand curve. The quantity demanded would thus, drop from 100 units to say 50 units. This drop will represent a downward movement along the demand curve.
These changes will influence quantity exchanged and price differently. To retain its tourism market, the Australian marketing authority may step in to reduce prices of its facilities. According to Singh, Australia being “one of the leading tourist destinations,” this option presents a good opportunity for curbing loss of market2. Otherwise, the Australian quantity will reduce. However, according to Tourism Australia, the reduction will not be very significant considering that international tourism only represents 27% of the country’s tourism earnings.3
The impact on the market for hotel rooms if the price of airline flights increases
Increase in flight prices affects the demand for travel negatively. Many people, even those who had planned for their trips, find it easy cancelling them when travel prices go up. In fact, air travel and accommodation demands are complimentary goods. Any change in the price of such a good affects the price of its complimentary good.
Figure 2: Demand for Accommodation
Increase in the cost of flight will affect the demand curve; it will shift to the left. As shown in figure 2, an increase in the cost of air travel leads to a decrease in the demand for accommodation. Dwyer & Forsyth claim, “…Arise in the price of air travel to a destination resulting in less visitation may lead to a fall in the demand for hotel accommodation in that destination.”4
This change may result in reduced prices for accommodation facilities to attract more guests and to compensate for extra money paid for air travel. Since most facilities will not be occupied, this is a probable resolute for many facility owners. However, if the situation remains as it is, most facilities will be vacant due to reduced number of visitors.
The impact on the market for restaurant meals if the government imposes a service tax of 20% of the price of each meal
By imposing a service tax on a particular product, the government reduces both the supply and demand of that product. This intern drives equilibrium price higher than it was before the imposition of the tax. The equilibrium quantity also drops as traders deliver less. This creates a complex scenario where a new demand and supply curve is created.
Every move by the authorities to impose, lower, or increase taxes is aimed at either the consumers or the sellers. In most cases, however, both parties share the tax burden. The principle governing the tax-sharing ration between these two parties is called tax incidence.
If the government imposes a service tax of 20% on restaurant meals, there will be a shift in the supply curve upwards to the left as illustrated in figure 3.
Figure 3: Effect of taxation on Supply and Demand
As shown in the figure, the original price for meals was $2. However, after government’s taxation, the supply curve has shifted upwards to the left. Consumers then pay extra $0.2 above $2.0 they paid before the 20% tax increment. In this case, sellers receive a payment of $2.2 per meal, but remits $0.2 to the taxman.
This scenario creates the region marked “deadweight loss due to taxation.” This results from a significant reduction in the number of mutually beneficial exchanges between the two trading parties, hotel owners and the customers.
The concept of price elasticity of demand
The demand for many products is often affected by changes in its price. In fact, a decrease in the price a product almost, always results in an increase in demand for the product. This is the basic rule of demand. In most cases, the changes in price do not lead to a proportional change in demand for a product.
This is where price elasticity of demand comes in. Mankiw states “Price elasticity of demand for any good measures how willing consumers are to buy less of the good as its price rises.”5 He further states that price elasticity of demand is “computed as the percentage change in quantity demanded divided by the percentage change in price”.
The diagram shown below better explains this, where P2 and Qd2 were the original price and quantity, and P1 and Qd1 are the resultant price and quantity after increase respectively. In this case, the change in price is P1-P2, while the change in quantity is Qd1-Qd2.
Figure 4: Calculation of Price Elasticity of Demand
The results from these manipulations may yield any of the following situations: elastic, inelastic, and unit elastic demand.
Commodities whose demand is significantly affected by price changes are said to have elastic demand. The demand for such commodities is said to be sensitive to price changes. For instance, if an increase in the price of such a commodity is affected by taxation, seasonality, scarcity, or hoarding, less of that commodity will be sold. On the other hand, a decrease in the price of the commodity will lead to increased demand for the commodity.
As illustrated in figure 5, consumers demand 50 units of product X at $20 per unit. However, increasing the price to $30 significantly reduces the quantity demanded to 10 units only. In fact, in a case of perfectly elastic demand, as illustrated in figure 4, increase in price results in a complete shift in demand as consumers take to other products or abandon the use of the product all together.
Elastic demand acts as a guide to producers in pricing their products. A producer who fails to incorporate elasticity of the demand of his/her goods is prone to fail. Price sensitive goods can only be sold in large numbers when consumers consider them fairly priced.
Elastic demand significantly affects producers’ revenue. This is because an increase in price will lead to a fall in demand, which intern reduces earnings. However, if a producer chooses to reduce prices to avoid loss of customers, he/she will still be cutting on his/her income. Either way, elastic demand’s effect on revenue is negative.
Many factors determine the elasticity of demand. However, the principal determinant of consumers’ continued use of a product after price change is the willingness and ability of the consumers. There are many other factors determining elasticity of demand.
To begin with, we will discuss the effect of availability of substitutes on elasticity of demand. When a product has close substitutes, its ability to have highly elastic demand is greatly enhanced. This is because consumers can easily switch to their substitutes in case of a price increase.
In fact, even a minor price change can upset the demand for such products highly. For instance, butter and margarine are substitutes. When the price of butter is increased, many consumers would opt to buy margarine instead. Thus, the demand for butter will significantly drop.
The second factor is the high percentage of income. The cost of a product plays a significant role in influencing a consumer to purchase. Cost, in this case, affects different income groups differently.
When a product’s price represents a huge chunk of an individual’s income, the individuals tend to give it much though before committing to purchase. For instance, a middle-income earner tends to give little attention to small price changes on cheap products such as milk.
However, changes in the prices of products such as cars, which represent a high percentage of their income, may affect their purchasing decisions. As such, the demand for products representing high percentage of an individual’s income is elastic to price changes.
Another factor is necessity. Consumers tend to give first priority to products they consider very necessary. Such products are purchased regardless of their prices. However, products and services, which are not very necessary such as swimming pool and massage, have elastic demand as they can be easily discarded if their prices go up.
Whenever there is a price change, the quantity demanded by consumers must change. This change varies as it at times fall or rise in relation to price changes. In inelastic demand, however, this change does not correspond to changes in price. A fall or increase in product prices affects consumer’s demand, but not in correspondence to the price changes.
As illustrated in figure 7, changes in price have a minimal effect on the quantity of goods demanded. At a price of $30, 3 units are demanded; while at a double price of $60, 2 units are demanded. Despite doubled prices, quantity of goods demanded has dropped insignificantly. This is the case with inelastic demand; consumers’ consumption pattern is not highly affected by prices.
Figure 6, which represents a perfectly inelastic demand, shows a slightly different pattern. Here, regardless of price changes, the quantity demanded remains the same. In the short run, a few products exhibit this kind of a pattern, for instance, gasoline and food. Gasoline has become extremely important in the world today.
Taylor believes that barely all economic activities are driven using gasoline.6 As such, a rise in the price of gasoline may not affect its consumption in the short run, as people will still fuel their cars and machines. In the long run, however, many people may shift to alternative means such as using public transport, which will render the demand for gasoline imperfectly inelastic.
In elastic demand does not affect producers significantly. This is because their products will still be sold despite price increment. Their revenues, therefore, remain stable and predictable. However, in the end, products with inelastic demand may be affected as consumers, realizing that the price increment is not going down, may seeking alternatives.
Inelastic demand can arise due to several factors. The first being consumer brand loyalty. Consumers tend to develop attachment to products or companies, which is at times hard to break.
Hoyer & Deborah asserts, “Brand loyalty occurs when consumers make a conscious evaluation that a brand or service satisfies their needs to a greater extent than others do and decide to buy the same brand repeatedly for that reason.”7Consumers who are loyal to a specific brand may not be easily swayed by price changes. Such consumers tend to exhibit inelastic demand trends.
Another factor that causes inelastic demand is the necessity of the product. When a product is very essential to buyers as food is, buyers will still purchase regardless of price changes. People must eat regardless of the cost of foodstuff.
Therefore, increasing the price of foodstuff does not lead to a complete withdrawal from consumption, but a small reduction in quantity consumed by those who cannot afford. Another example is insulin. The sick who need insulin must buy it regardless of price because they cannot do without it; failure to buy may be fatal.
Lack of substitute products also causes inelastic demand. Whenever there is a price increment, consumers naturally move to seek substitute products to satisfy their needs. For instance, when the price of bread increases, consumers may consider buying cakes or flakes to grace the breakfast table.
However, in a case where no substitute products exist, consumers have to buy regardless of price increment. In some cases, substitutes may be available, but are too expensive to shift to; a good example is fuel.
When fuel prices go up, many people may consider shifting to alternative fuels or using hybrid cars, but harnessing alternative fuels and buying hybrid cars is so expensive in the short run. In this regard, consumers are forced to continue using fuel.
Another probable cause of inelastic demand is the price of a commodity in relation to consumers’ income. Increase in prices of products considered very cheap by consumers may not affect the customers’ decision to purchase or continue using the product. A good example is packaged salt.
Globally, salt has remained one the most readily available and affordable kitchen products according to Preedy.8 In fact, most families do no budget for salt. An increase in the price of salt, therefore, may be insignificant to most families, which will intern not affect its consumption.
Consumers at times do not bear the cost of the products they purchase or consume. For instance, CEOs of leading corporations, company executives, and other cooperate expense account holders, do not bear the cost of their purchases. Such costs are directly transferred to the companies they work for.
In such a case, increase in price of commodities does not affect purchases or consumption in any way, since the companies concerned will meets the costs. Consumers only move to cut cost if they will feel the pinch personally. This is not the case with corporate accounts.
Unit Elastic
Occurs where e(R)=1
Figure 9: Unit Elasticity
Unit elasticity occurs when changes in the price of a commodity is directly proportional to changes in quantity demanded of that commodity.
Unitary elasticity does not affect the revenue of producers in any way. By charging high prices, few products will be consumed, but to the ratio that compensates for lost sales volume. For instance, if a product X is sold at $10, 1000 units will be sold and the producer will earn $10,000.
However, if the producer increases the price to $20, there will be a drop in sales. Interestingly this drop will only go down up to the extent of gapping the income lost. As such, 500 units will be sold at the new price of $20 generating $10,000 as it was before the price increment. In the case of a price drop, vice versa will be the case.
As illustrated in figure 8, any percentage change in price of the commodity is matched by percentage change in quantity equaling the change. Key to this observation is the fact that at high prices, the slope is very steep while registering low quantities; for large quantities, it is flat registering low prices.
Bibliography
Dwyer L & W Forsyth, Tourism economics and policy, Channel View Publications, Bristol, 2010.
The hospitality industry is ranked amongst the world’s largest economic sectors. The sector account for more than 10 per cent of the world’s Gross Domestic Product (GDP) and provides employment to a significant proportion of the total world’s population.
The industry is composed of firms that deal with different activities such as provision of products and services such as beverages, food, and accommodation. Some of the businesses that constitute the hospitality industry include hotels, restaurants, clubs, bars, and contract catering.
The industry is broad in nature in that it entails both public and private firms. The global hospitality industry has experienced a myriad of challenges over the past few years. Some of these challenges include labour shortages, increased competition, and cost containment difficulties (Bowie & Buttle, 2001).
The high rate of globalisation is one of the factors that explain the changes currently being experienced in the industry (Reid & Bojanic, 2010). Despite its profitability potential, the industry is characterised by extreme volatility. The recent global financial crisis has pushed most hospitality firms into significant decline in their occupancy ration.
In an effort to augment their competitive advantage, firms in the hospitality industry are considering integrating different marketing management practices (Belch & Belch, 2001). Brand management is one of the most marketing management practices that have become prevalent in the hospitality industry.
Problem statement
Despite its effectiveness in determining the consumers’ purchasing trends, celebrity endorsement is costly. Additionally, immense social capital is associated with the issue of celebrity. Consequently, product endorsement by celebrities is critical to success of a firm (Smith, 2007).
However, endorsement of products by celebrities can sometime be a bad idea if the contracted celebrity negatively influences the consumers’ perception of the brand they are endorsing.
Findings of a recent study conducted by the CU-Boulder’s Leeds School of Business revealed that there is a high probability of the celebrities’ negative perception by consumers being transferred to the product or service compared to the positive attributes (Hudson, 2003).
Conceptual framework
In conducting this study, the researcher will adopt a conceptual framework based on the impact of the food TV program celebrities on the hospitality industry. The study is based on the premise that consumers’ decision-making processes and their behaviours are influenced by the marketing strategies adopted by organisations.
According to Belch and Belch (2001), marketing within the hospitality industry is a very challenging task to undertake because in most cases it entails marketing of a service. In their marketing process, most hospitality firms conduct advertising through various mediums such as television.
However, the effectiveness of the advertising strategy in influencing consumers’ behaviour is dependent on how the advertising is undertaken. Most hospitality firms have adopted the concept of endorsement by renowned food celebrities.
Most consumers consider celebrities as public figures and role models. Consequently, celebrities’ actions have significant impact on the lifestyle and behaviour of a significant proportion of consumers.
Due to contracting food celebrities, there is a high probability of hospitality firms influencing the consumers’ action and hence their perception towards their products and firm. In a bid to ensure effectiveness in influencing consumers, hospitality firms should select renowned and reputable food celebrities.
Research issue / Hypothesis
The purpose of this research is to find out the impact that TV Food Programs have on the hospitality industry. It will look at which celebrities are popular, whether people eat out more due to watching these TV programs, and whether people have been inspired to cook these meals at home. The researcher also evaluates the most favourite food celebrity according to the respondents’ opinion.
It also evaluates whether consumers visit restaurants based on their favourite celebrities and whether they would like to visit their celebrity’s restaurant again. The research also analyses the extent to which consumers find food programs appealing. The study also assesses whether the TV Programs help consumers in their cooking habits.
Literature review
Brand management has become an important consideration by firms in different economic sectors over the past few decades. The current growth in the concept of brand management in organisations has arisen from the fact that brand image has a significant impact on firms’ competitiveness hence profitability. Previous studies conducted indicate that brand image enhances the level of customer loyalty.
Brand image is one of the factors that influence consumers in their purchasing process. Brand image is composed of a number of elements amongst them being the set of beliefs that consumers hold regarding the firm and its products (Freeman, 2003).
Development of brand image is an intricate process that is composed of developing unique product or service image in the consumer’s minds. The need to promote brand image has led to development of various marketing management practices.
One of the marketing management practices that have been incorporated by hospitality firms is celebrity marketing. Hospitality celebrity marketing is concerned with creating awareness regarding a particular hospitality establishment.
By virtue of being public figures, celebrities have a significant impact on a firm and its brand. Encouraging celebrities to consume hospitality products and services is beneficial for it gives the involved firm sufficient media coverage. As a result, this element is a very effective method of creating market awareness compared to conventional marketing communication methods (Shimp, 2003).
When launching the Virgin Atlantic Airways, Richard Branson incorporated public relations in its marketing campaign. The firm’s management team contracted numerous rock stars musicians who flew in its airline to improve the effectiveness of the public relations campaign.
The Ski Resorts located at Whistler Canada have nurtured a strong public reputation because of hosting high profiled music and film stars such as Seal, Arnold Schwarzenegger, and Kevin Costner. In 1998, the Ski Resort’s reputation improved significantly when it hosted Prince Charles, Prince Harry, and Prince William.
This understanding illustrates that celebrities play an important role in promoting the reputation of firms in the hospitality industry.
In the modern hospitality marketing environment, celebrities have become known as ‘ubiquitous’ features. Approximately, 20 per cent of companies in the world have incorporated celebrities in their marketing management practices. Hospitality firms that have incorporated celebrities in marketing their products stand out as trustworthy and credible institutions.
Endorsement of products and services by celebrities has been a common phenomenon in the hospitality industry for decades. The junk food and fast food companies in the United States are some of the firms that have incorporated celebrities in an effort to promote their brands.
In an effort to ensure that its product penetrates the market, the manufacturer of “Wheaties” formulated a marketing strategy whereby the product would be marketed as a “Breakfast of Champion”. The firm contracted renowned sports celebrities to endorse its product and thus influence consumers. The outcomes were very positive thus making such associations to become a common phenomenon ever since.
Majority of fast food companies have contracted numerous celebrities to endorse their products. For example, McDonald’s, a renowned fast food company in the US, enlists services of Michael Jordan, Donald Trump, Venus Williams, Kobe Bryant, and Serena Williams.
McDonalds contracted Cindy Klassen, who is one of the most adorned Olympians in Canada, to eat an Egg McMuffin (one of its fast products) in a television commercial in a bid to influence its consumers. Jason Alexander, a renowned actor, has been contracted severally by Kentucky Fried Chicken to endorse its food products (Smith, 2007).
After winning the 2008 Super Bowl in New York, Eli Manning entered into a contract to participate in television commercials aimed at promoting Oreo cookies. Celebrity endorsement is very effective in generating sales because a large number of consumers recognise the celebrity’s face, voice, and name.
Celebrity’s expertise
Currently, consumers are increasingly becoming health conscious in their consumption patterns. Therefore, in a bid to influence the consumers’ decision-making process, it is imperative for the celebrity’s message to stand out as a legitimate source of knowledge. A food celebrity who has sufficient knowledge regarding the product s/he is endorsing is likely to influence consumers in their purchasing patterns.
The celebrity’s trustworthiness
The selected food celebrity should portray a high degree of honesty and integrity amongst the consumers. Selecting a dishonest celebrity can have a negative impact on a firm’s product because their message to the target audience will be questionable despite the credibility of the firm being high.
Research method
The success of every study is dependent on the effectiveness of the research design incorporated. Research design refers to the framework that the researcher uses in collecting data from the field to help him or her analyse a particular phenomenon (Creswell, 2003). The objective of integrating research design is to create a logical flow and ensure that the findings of a particular study are appropriate.
Additionally, research design contributes towards the creation of a high degree of accuracy in a particular study. This study aims at establishing the link between firms in the hospitality industry and food celebrities and to achieve this objective, qualitative and quantitative research designs will be integrated.
Qualitative research design will make it possible for the researcher to undertake an in-depth appraisal of the subject matter. Decision to adopt qualitative research design is due to the fact that most of the data that the researcher will collect from the field is qualitative in nature.
Additionally, qualitative research design will provide a higher opportunity for the researcher to expand the scope of the research questions by enquiring additional information from the respondents. Quantitative research design will give the researcher an opportunity to quantify findings of the study.
Data collection
Researchers should ensure that the data collected is relevant to the market in a bid to increase the credibility of a research study. Various methods of data collection can be integrated. These methods include primary and secondary methods. The study will incorporate primary and secondary methods of data collection.
In collecting data from the market, the researcher will use both questionnaires and interviews. The researcher will use self-administered type of questionnaires, which will provide an opportunity to ask leading questions thus accessing the required answers. The researcher will use open and close-ended questionnaires to give the respondents an opportunity to answer the questions freely.
Data coding
The researcher will code the data collected to improve the ease of data analysis. Data coding will provide the researcher with an opportunity to integrate different data analysis tools such as Microsoft Excel and the Statistical Package for Social Sciences (SPSS), and Microsoft Excel (MS Excel).
Integration of data analysis tools such as SPSS will make it possible for the two data analysis tools to understand the data collected. Through Microsoft Excel, the researcher will be capable of using bar graphs showing the consumers’ preference with regard to food celebrities and TV program. This argument is well illustrated by the graph below.
Favorite Cooking TV show
Program
Responses
Masterchef
21
My kitchen rules
4
Ready Steady Cook
1
Jamies Kitchen
4
Iron Chef
8
Antony Boundain’s A cooks Tour
0
Others
3
Figure 1: Graph showing consumer response with regard to favourite TV show Sampling and sample size
The target population for this research is composed of friends and family who are Facebook users. Target population will provide an opportunity for the researcher to collect the right information from the market. The researcher will use sampling technique to select the research sample.
Sampling will be incorporated because it is difficult to conduct a study on the total population in the market; moreover, it is difficult to conduct a research study on the entire population because of time and resource constraints. A sample population is the total number of objects in a study, which have the same and independent potential of being selected as the actual sample (Longnecker, 2008).
The convenience sampling method was used of which 40 responses were collected. Decision to select 40 respondents was reached due to the existence of time and resource constraints. Additionally, it was assumed that the responses received with regard to food TV programs from the respondents selected were representative of the prevailing consumer opinions.
Research findings
Out of the 40 responses collected, 82.5per cent were in the age category of 21 – 29 year old (see Appendix 1), which is consistent with the average age of friends of the research team. On the other hand, 12.5 per cent and 2.5 per cent or respondents were aged 30-39 years and above 40 years respectively. There were no respondents aged between 18-20 years, while those below 18 years constituted 2.5 per cent of the total number of respondents.
Most respondents interviewed (55.3 per cent) cited “Masterchef” as their favourite cooking TV program while 21.1 per cent of the respondents cited “Iron Chef” as their most preferred cooking TV show. On the other hand, 10.5 per cent of the respondents cited “My Kitchen Rules” and “Jamie Kitchen” as their favourite programs. On the other hand, 2.6 per cent of the respondents cited “Ready Steady Cook” as their favourite program (see appendix 2).
With regard to frequency of cooking, 57.5 per cent of the respondents said that they cooked between 1 to 3 days every week, while 35 per cent said that their frequency of cooking ranged between 4 to 6 days per week. Only 2.5 per cent and 5 per cent of the respondents said that they cooked every day or did not cook respectively (see appendix 3).
The respondent’s opinion varied with regard to favourite food celebrity. Jamie Oliver was cited by 41 per cent of the respondents as the most favourite celebrity, while 33.3 per cent of the respondents preferred Gordon Ramsay (appendix 4). Most of the respondents interviewed (67.5 per cent) said that they had ever tried to follow the cooking method shown on the TV program while 32.5% had not (appendix 5).
Most of the respondents interviewed (77.5 per cent) had never visited a restaurant of their favourite celebrity (appendix 6). However, a significant proportion of the respondents (63.6 per cent) were of the opinion that they would appreciate such an opportunity (appendix 7). With regard to their interesting characteristic, the respondents’ opinion varied from very uninteresting to very interesting.
Most respondents found TV food cooking programs interesting, while a few found the programs very uninteresting (appendix 8). Most respondents (60 per cent) found the food TV programs beneficial with regard to improving their cooking skills, while only 40 per cent did not consider the programs beneficial (appendix 9).
The study made it evident that Food TV programs and food celebrities have diverse impact on individuals’ response towards the hospitality industry in addition to their cooking habits (appendix 10).
Research Discussion
The literature review conducted reveals that there is a strong positive relationship between the hospitality firms and food celebrities. The success of hospitality firms in using food celebrities in their marketing management practices is greatly dependent on the personality of the celebrity selected.
When selecting the celebrity to endorse their food products, hospitality firms should consider integrating characteristics such as the celebrities’ level of expertise, honesty, trustworthiness, attractiveness, and credibility.
Conclusion and implications
Perhaps further study should also focus on the characteristics of celebrity chef. Similar to food TV celebrities, celebrity chefs have a significant influence on consumers’ perception towards hospitality firms. Most consumers prefer consuming quality and delicious food products.
On the other hand, celebrity chefs are known for their expertise in preparing such food products. As a result, celebrity chefs can help hospitality firms increase their customer base because most consumers would like to consume food prepared by such celebrities.
References
Belch, GE & MA Belch, Advertising and promotion: An integrated marketing communication perspective, Irwin, Boston, 2001.
Bowie, DA & FA Buttle, Hospitality marketing, Routledge, Chicago, 2001.
Creswell, JA, Research design: qualitative, quantitative and mixed method approaches, Sage Publishers, Newbury Park, 2003.
Freeman, EM, Blackwell handbook in strategic management, Wiley-Blackwell, Washington DC, 2003.
Hudson, SA, Tourism and hospitality marketing: a global perspective, Sage, New York, 2003.
Longnecker, ME, An introduction to statistical methods and data analysis, Cengage Learning, New York, 2008.
Maxwell, JA, Qualitative research design: an interactive approach, Sage Publishers, Newbury, 2004.
Reid, RD & DC, Bojanic, Hospitality marketing management, Wiley Publishers, New York, 2010.
Shimp, TA, Advertising, promotion and supplemental aspects of integrated marketing communication, The Dryden Press, Boston, 2003.
Smith, FA, Fast food and junk food: An encyclopedia of what we love to eat, ABC-CLIO, New York, 2007.
The sale of local handicrafts is a prominent feature in most countries who have a growing tourism industry which helps to support local artists as well as small to medium scale enterprises that specialize in the sale and distribution of such items.
Bahrain for instance receives 8 million visitors per year (as of data from 2008) with an annual tourism income of $7.75 billion (Economy Recovering, But Risks Loom Large 2012, pp 1-11). While most of this money comes directly from revenues derived from hotels, restaurants, and tour groups, a large percentage does go to local artists and crafters which acts as a major source of income for them (Country report: Bahrain 2011, pp 1-21).
This is a particularly important point to remember given the following sets of data examining the local economy of Bahrain. Currently, Bahrain is ranked as having the 12th freest economy in the world, is considered the fastest growing financial center as well as possesses vast oil and natural resource wealth (Miller & Epstein 2011, pp 1138-1147).
Its primary exports are centered around petroleum, aluminum, various metallic ores and food products. The inherent problem though with Bahrain’s local economy is that much of it is centered around the export of the aforementioned products with little attention being paid to the development of small to medium scale enterprises that focus on the production and sale of local handicrafts (Economy 2011, p. 6).
In fact, an examination of the local handicraft industry reveals that most of the sales of authentic native handicrafts are done through local handicraft centers or markets with little in the way of export depots existing which would help to sell such items in overseas markets.
Despite the fact that SMEs constitute 92 percent of local businesses within the country, they are still overshadowed by the country’s oil and natural resource industry which accounts for 60 to 80 percent of export earnings, 45 percent of the GDP and 80 percent of the government’s budget revenues.
This is in stark contrast to the situation found in countries such as the U.S., U.K., China and other industrialized countries where local SMEs makeup more than 70 percent of GDP, 60 to 70 percent of local government revenue and 75 percent of export earnings.
The inherent problem with this particular situation is that the lack of support for the local handicraft industry in Bahrain combined with the method utilized to produce handicrafts, which is a normally long and tedious process, leaves this particular industry vulnerable to differences in labor economics.
Background of the Issue
Traditional knowledge can be comparable to the inherited traditions and long standing practices inherent within a particular culture, society, or community.
Another way of looking at traditional knowledge is from the concept of “adaptively acquired knowledge” wherein the various processes and techniques inherent to a particular indigenous community were developed as a response to the unique environmental and topographical situation they found themselves in (Traditional knowledge and the international context for protection, 2005: 142).
This can be seen in the different weaves and means of producing traditional clothing that is unique to particular regions such as the “sarong” in the Philippines, the Kimono of Japan and the thickset clothing developed by the indigenous people of Tibet.
In a way, traditional knowledge can be defined as a form of claimed ancestral heritage wherein cultural traditions, societal norms and customs, methods of preparing food and clothing as well as aspects related to medicine, agriculture and fishing are all a result of hundreds if not thousands of years of shared oral and written traditions which are inextricably bound to the people that inherited them and can be considered their “property” so to speak since for them it is a form of cultural inheritance.
Yet over the years the process of globalization and cultural assimilation has increasingly placed a strain on the concept of “ownership” of traditional knowledge (Taylor 2003, pp. 409-418).
Aspects related to traditional symbols, designs, distinctive cultural crafts, artwork, songs, stories and even knowledge related to traditional medicine have been misappropriated by corporations, schools and opportunitistic individuals in order to market an aspect related to another society’s traditional knowledge with no regard to the concept of “intellectual ownership” of the “product” that they are distributing (Taylor 2003, pp. 409-418).
Such a case can be seen in the Kingdom of Bahrain at the present wherein the demand for local handicrafts by millions of visiting tourists has resulted in the establishment of a new source for such products that are far from what one can consider “traditional”.
This refers to various handicrafts such as pottery, metalwork, woodwork, fabric and basket weaves that are not made by local craftsmen but are in fact mass produced in factories or even imported from locations as far as India or China with the mark of the Bahrain culture but were not created with the assistance nor consent of local artists or craftsmen.
What is Outsourcing?
Outsourcing is a term used to describe the practice of contracting a particular business function whether in the form of manufacturing, accounting, customer service etc. to an outside provider for the express purpose of reducing operating costs.
For example, as indicated by Wee, Peng, & Wee (2010) the main costs of doing business within the U.S. are related to local taxes, employee salaries as well as federally required health benefits and insurance services (Wee, Peng, & Wee 2010, pp. 2081-2094). Such factors drive up the cost of doing business within the country due to the amount of money that goes into them (Holweg & Pil 2012, pp. 98-115).
On the other hand outsourcing aspects of the company’s functions to locations such as China, India and the Philippines reduces these particular costs due to lower tax rates, lower minimum wage requirements as well as different far lower costs of employee benefits.
In the case of China the low minimum wage combined with the low cost of doing business within the country resulted in more companies outsourcing their manufacturing services to the country between the periods of 1990 to the present (Whitaker, Mithas, & Krishnan 2010, pp. 11-42).
This particular situation is not unique to China but can similarly be seen in India and the Philippines where business process outsourcing has become a $100 billion a year industry.
What you have to understand is that in the case of the production of local handicrafts such as textiles, metalwork and various aspects related to the general look and appearance of an object, doing it the “traditional way” often involves tedious practices which are done by hand and take a long time to accomplish.
Not only that, when taking labor economics into consideration local artisans often charge large amounts for distinctive types of crafts given the relatively high living standards within Bahrain (Working on reform 2006, pp. 35).
Another factor that should also be taken into consideration is the fact that the production processes that go into authentic handicrafts, as mentioned earlier, take far longer as compared to conventional products that are made “en masse” from a factory.
When taking into consideration the number of visitors to the country per year (8 million) and the number of people that are natives of Bahrain (1.2 million) of which local artisans comprise a small population of (less than 1,000), simple labor economics would suggest that it would be virtually impossible for local producers to supply even a modicum of tourist demand for traditional artifacts.
It is due to this the merchants that specialize in the sale of such items needed to turn towards other means by which such items could be produced and, as a result, had to utilize external methods of production in the form of outsourced services (Working on reform 2006, pp. 35). The fact remains that hiring a supplier from China or India to make the same type of handicraft based on the design alone accomplishes several factors:
It is cheaper since workers from India or China have a lower minimum wage
It solves the supply issue given that items can be produced in wholesale quantities utilizing industrial techniques
It enables the sellers to gain higher profit percentages given that such products are far cheaper than those made by local artisans
The end result satisfies the demand side of the market; however, this comes as a direct result of a distinctly negative impact for the supply side in the case of local artisans.
Labor Economics at Work
The various processes that have been mentioned within this paper are actually not a recent development but were actually established during the early to mid-1990s as Bahrain’s tourism industry continued to pick up. What you have to understand is that the local handicraft industry during the 1990s did not keep pace with the relative increase in the amount of tourists (Foreign fruits 2005, pp. 37).
The main reason behind this is the fact that in order for something to be considered “traditional and authentic” it would need to be made in a manner that is line with local methods of creation and not be subject to industrial processes. Given that becoming a local artisan for a craft is an exceedingly difficult endeavor kept to a few select groups and families, it is not surprising that it produces relatively few professional artisans per year.
Not only that, due to the increasing level of Bahrain’s economic sophistication more and more individuals are choosing to enter into jobs with industrial companies rather than continue on with their traditional roots (Foreign fruits 2005, pp. 37).
As a result, the number of artisans has dwindled over the years with government programs even in place to ensure that the production processes that are unique to particular local handicrafts do not disappear.
It thus becomes rather strange that despite such difficulties many of the local markets and tourist shops in and around Bahrain continue to have vast stocks of “local” handicrafts despite the fact the dwindling nature of traditional artisans.
The most obvious answer to such a mystery is the fact that most of what is present in such shops are in fact complete fakes that merely imitate the style established by artists but were in fact made in locations such as India or China.
The government is well aware of this; however, given the labor shortage of artists and the high demand for local artifacts the end result is that the government turns a blind eye in favor of satisfying local demand. What the government does not understand in this particular case is that such practices actually further destabilize the local labor market for the creation of local artifacts (Foreign fruits 2005, pp. 37).
With local markets flooded with handicrafts made in other countries this actually limits the ability of local artisans to sell what they make. As mentioned earlier, not only are locally made artifacts more expensive but they take far longer to make as compared to the ones that are imported which can be made in bulk lots.
Such a situation leads to various merchants actually refusing to sell handicrafts made by traditional artisans since tourists who buy artifacts from them do not know any better whether what they are buying is original or authentic, what they usually care about is the overall price in correlation to how the item looks.
Since merchants are able to sell fake handicrafts at a far lower cost and make larger profits from them, they would in turn start to prefer such items over the originals. The end result of such actions is that authentic locally made cultural artifacts are increasingly becoming harder to come by within Bahrain given the proliferation of mass produced forgeries from international factories.
When examining such an issue, it must be questioned whether labor economics in Bahrain, regarding the supply and demand for local handicrafts with a gradually declining artisan labor force, actually gives factories in various international locations the right to produce such items given that the production of the cultural artifacts of Bahrain is part of their legacy of traditional knowledge which is firmly in their possession.
Understanding the Legal Implications
Intellectual property rights are broadly defined as “exclusive rights pertaining to distinct intangible creations of the mind which range from music, designs and various artistic works to broad categories such as inventions, literature and even phrases”.
The basis for intellectual property rights is to protect the creators of unique inventions, concepts or ideas from having their work arbitrarily utilized without their permission for the profit of other individuals/ companies. Companies apply IPR law as a method of protecting their patented and copyrighted products from being subsequently copied and sold by other companies.
It is through this method of business law implementation that various corporations have been able to maintain their positions in the global market place due to their protection and control of their patented processes, products and designs.
Yet, while the protection of IPRs of businesses is clearly defined and regulated by law, aspects related to the IPRs of indigenous people and local communities which takes the form of traditional knowledge (a form of inherited knowledge consisting of cultural processes, traditions, artistry, environmental knowledge etc. which has been passed from generation to generation for hundreds if not thousands of years) has as of late not received the same level of equanimity in regard to proper protection and regulation as seen in the case of business law applied to IPRs.
Under the commission of human rights it is expressly implied that all indigenous people or local communities have an inherent right to “possession” over the various pieces of cultural traditions, knowledge and development that are classified as originating from traditional knowledge.
What must be understood though is that despite the fact that such statements have been indicated by the commission on human rights, it is often times subverted by both countries and private corporations.
The fact is that it is getting increasingly harder to protect traditional knowledge given that individual countries have different rules regarding the protection of certain types of intellectual property rights with China usually being considered one of the largest violators of such rights.
It should also be noted that while the government of Bahrain has tried to “save” the local handicraft industry, it does so while at the same time turning a blind eye to the processes that are destroying it from within.
Labor Economics: Traditional versus Progressive
It should also be noted that there have been relatively few protests from the local labor force regarding the introduction of cheap imitation handicrafts into the local markets and, as a result, imitation products continue to flood the market.
Studies such as “Exorcising the ghosts in the labor market (2004)” have indicated that this is directly related to the increasingly small part that the handicraft labor force has been playing in the local market (Exorcising the ghosts in the labor market 2004, pp. 36-38). It is usually the case that various artisan techniques and methods of creation are kept within a single family with succeeding generations often reproducing the techniques of their forefathers.
Unfortunately, within the past 15 years a distinct shift in the local labor force was noted wherein white collared workers became increasingly more valued as a commodity with many individuals from various artisan families choosing to enter into the financial and industrial sectors of the local economy (Exorcising the ghosts in the labor market 2004, pp. 36-38).
The reason behind this is actually quite simple, the monetary rewards derived from white collar jobs in such industries are often fire higher than what they would have gotten as local artisans. It is due to the very simple aspect of labor economics (i.e. differences in wages) that has exacerbated the slow decline of the local handicraft industry.
Is a solution to this current problem possible?
Impossibility due to Labor Economics
When examining the present issue under the context of labor economics, it becomes clear that there is no viable solution given the orientation of the present day labor market within Bahrain.
What you have to understand is that the labor market within the country at the present focuses more on the development of white collar workers within the petroleum and natural resource industries as well as the development of Bahrain as one of the world’s best financial centers.
If the country had focused entirely on the development of an export oriented handicraft industry then a concentration of its labor force into the production of local cultural artifacts might have been plausible, however, given the information provided within this paper it can clearly be seen that this is not the case at all.
Combined with the fact that Chinese and Indian workers are willing to be paid far less to do the same level of work as well as the fact that the local labor force is unwilling to enter into the handicrafts industry due to more lucrative wages being found in the financial sector, it becomes clear that labor economics in the case of Bahrain when combined with the import oriented tactics of handicraft merchants regarding handicrafts will in effect kill off the traditional handicraft industry of the country within the coming decade
Impossibility due to Insufficient Protection for Traditional Knowledge
One of the other problems that was noted within this paper is the insufficient amount of protection given to the local artisans. While it may be true that they were initially unable to sufficiently supply the demand for local cultural artifacts by tourists, the fact remains that the design and techniques utilized in the conceptualization and creation of particular artifacts belong to the indigenous population that created them.
As such, there should be some level of protection that prevents labor from other countries from appropriating certain techniques and selling them.
Unfortunately, while there are some countries that have sufficiently adequate methods of protection in place to protect their local cultural traditions, such a case unfortunately does not exist in the case of Bahrain and, as such, is a contributing factor to the downfall of the artisan labor force of the country.
Conclusion
Overall, it can be seen that labor economics in the case of Bahrain is primarily responsible for the continued deterioration of its artisan workforce. The fact is that its artisan labor force simply cannot compete against the far lower wages of people from India and China and the fact that becoming a local craftsman does not seem like an ideal career path given the current state of Bahrain’s economy which is oriented more towards finance and natural resource extraction.
Taking all these factors into consideration, it can be expected that within the next few years local artisans of cultural artifacts will completely disappear with most of the local handicrafts within the country originating from external sources.
Reference List
‘Country report: Bahrain’ 2011, Bahrain Country Monitor, pp. 1-21
‘Economy Recovering, But Risks Loom Large’ 2012, Middle East Monitor: The Gulf, 12, 3, pp. 1-11
‘Economy’ 2011, Background Notes On Countries Of The World: Bahrain, p. 6
‘Exorcising the ghosts in the labor market’ 2004, MEED: Middle East Economic Digest, 48, 52, pp. 36-38
‘Foreign fruits’ 2005, MEED: Middle East Economic Digest, 49, 40, p. 37
Holweg, M, & Pil, F 2012, ‘Outsourcing Complex Business Processes: Lessons from an enterprise partnership’, California Management Review, 54, 3, pp. 98-115
Miller, M, & Epstein, S 2011, ‘The Challenges of Assessing the Output of Emergent Economies: The Case of Bahrain’, Chinese Business Review, 10, 12, pp. 1138-1147
Taylor, I 2003, ‘The United Nations Conference on Trade and Development’, New Political Economy, 8, 3, pp. 409-418
‘Traditional knowledge and the international context for protection’ 2005, Journal Of Intellectual Property Rights, 10, 2, p. 142
Wee, H, Peng, S, & Wee, P 2010, ‘Modelling of outsourcing decisions in global supply chains. An empirical study on supplier management performance with different outsourcing strategies’, International Journal Of Production Research, 48, 7, pp. 2081-2094
Whitaker, J, Mithas, S, & Krishnan, M 2010, ‘Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing’, Journal Of Management Information Systems, 27, 3, pp. 11-42
‘Working on reform’ 2006, MEED: Middle East Economic Digest, 50, 11, p. 35
The WTO defines tourism as an encounter between a person and a destination in its natural setting. It is also an encounter between individual groups of people and social groups. It can also be viewed as an encounter between nations and an exchange of values. The exchange is however significantly different when it occurs between an industrialized country and a developing country as is common in tourism.
It follows therefore that social impacts are felt more in this scenario as compared to an exchange between two industrialized countries. The social impacts of tourism can be classified into two positive and negative. Some of the positive social impacts include social change and multicultural understanding as tourism enables people from different and diverse backgrounds to socialize which helps them understand one another.
It also enables the host country to adapt to the realities of life as well as improve their lifestyle through the development of urban infrastructure, population benefits, and development of the middle class of the increased income from tourism, increased social mobility, and modernization.
Tourism also promotes knowledge and the use of foreign language by the host country as it brings people of different language groups together. It also precipitates the improvement of health conditions and disease control as tourists require high quality public health services and tourism also provides extra income for the improvement of such. Tourism also creates awareness of good hygiene and health problems with the locals, which eventually leads to changes in the health infrastructure of the host country.
Social negative impacts of tourism on the other hand include; social saturation as tourists usually visit during certain times causing an influx in the population and a consequent strain on the public facilities and public amenities. Tourism also influences changes in the social structure, behavior and roles.
For instance, it lowers the status of traditional forms of employment such as agriculture; it causes migration of people and a subsequent break of families. Tourism also exposes the young people to the social behaviors, modes of dressing, attitudes of the tourists, which may not be according to the traditional norms and values. In the homes gender roles are changed as the wives may earn more than the husbands or start working outside the home.
Tourism also causes community problems such as an increase in prostitution, women’s employment, loosening of morals, increase in crime and negative demonstrative effects such as nude bathing, inappropriate dressing, irresponsible behavior, polarization of the local workers among others.
An example of the social impacts of tourism on the host community can be seen in a case study done on Kaniki point resort in the Philippines. The resort is a world-class scuba diving and ecotourism resort located on a small island Kaniki near Basuanga in the Camalan group of Palawan in the Philippines.
Basuanga is a popular tourist destination due to its excellent natural environment and scuba diving. Basuanga is a poor rural area with a low population marred by unemployment and compounded with an influx of in-migration of people from other poor areas in the Philippines due to tourism. The influx of in-migration has caused a strain on the existing social fabric evidenced by the poor health conditions and lack of adequate infrastructure especially water, sewers and roads.
These strains are also evidenced by the prevalence of diseases such as malaria, diarrhea, parasitism which have also become the major causes of death in the area. The ocean around kaniki has been the major food source for the locals Bausanga and Kaniki. The area has however been affected by dynamite, cyanide and illegal fishing causing significant decline of fish numbers.
This is however being alleviated through the preservation of the marine environment for business interests and tourism. The development in the tourism sector has also caused a strain in the area resources through deforestation to create space for development. Tourism through the Kaniki resort has however contributed to an increase in income, enhancement of livelihood and cultural exchange opportunities for the locals in the area.
The conservation of the environment, reforestation and rehabilitation of the island in the resort has also has also been beneficial for the whole area in general. The Kaniki point resort has also been in the Frontline to facilitate meaningful dialogue with the communities in Basuanga, become involved in regional planning, contribute to the formation of strong regulations, and cooperate with tourism operators to increase positive social impacts of tourism in the area.
The town of Gawler in Australia identifies that tourism has impacted its society positively and negatively. Among its positive social impacts is the improvement of infrastructure especially power, water and telecommunications, access to these and in the service sector which includes banks and transport.
Tourism has also promoted new investments which have enhanced the lifestyle of communities. It has also fostered a sense of community pride as it is common belief that tourists pick a specific tourist destination for a reason. A well kept town or destination will definitely attract visitors and vice versa.
Tourism has also provided a platform for intercultural exchange, for them to learn about traditions and confront their beliefs on new perspectives of lives and society. Tourism has helped fund conservation efforts as well as fosters effective management of sensitive and significant areas. Tourism has also seen an increase in cultural celebrations which highlight important events and pay homage to ancestry.
It has also seen the sustenance of local crafts, foods and personalities. Tourism has however contributed to issues which have detracted the quality of life for the locals. The intrusion of daily life, loss of privacy, sense of crowding has caused some to have ill attitudes towards tourists. Tourism has also been accused of taking the local sites and the best community secrets to be mere spectacles thus losing their destination appeal.
The Gawler strategic plan: 2005-2009 identifies events and heritage as being its major tourism strengths. The plan therefore sets out clear steps for the town to utilize their infrastructure to sell the personality of the town in an attempt to maximize on the positive social impacts of tourism.
In a South Australian community attitudes survey, South Australians consider tourism as having a positive effect on their region. They identify tourism as having created employment opportunities and a demand for business. Tourism has also increased their levels of community pride as it is a common perception that tourism increases demand on the communities.
In a study done on the Red bull Bid wave Africa a professional sporting event held in Africa specifically Hout Bay Cape Town several social effects on the community were identified. It is an extraordinary surfer event as one can view the most radical and biggest surf break from the Sentinel point.
To get to this point tourists have to travel 2kms through the town of Hunderberg. The harbor also serves as the base for the RBBWA event. It is the departure point for the boats and jet skis as well as the viewing point for surfers and water events. The harbor also hosts the National rescue institute which is the headquarters of the event. The harbor is also a departure point for those who wish to view the events at the sentinel point.
The event attracts the best surfers and surfing enthusiasts from all over the world annually. It therefore hosts a large group of tourists to the region annually. Results from the study show that the locals agreed that the event provided them with a chance to socialize with people as well as increased their entertainment opportunities.
The locals also felt that the fact that this event was held in their country enhanced their sense of community pride. The event made the locals feel good and proud of their country and community.
To the locals however, the event does not promote the development and maintenance of public amenities and facilities such as roads, parks, sporting facilities or public transport. The respondents also complained of lacking access to these amenities during the event due to closure and overcrowding especially because of the proximity of this event to the local community.
South Africa having realized the social impacts caused by tourism have put in place legislative measures to curb the negative impacts and promote the positive ones In cape town one of the most common tourist destinations in the country, the RT charter has committed its signatories to abide by a set of principles geared towards the protection of the cultural heritage as well as the reduction of negative social impacts.
Community tourism forums are also conducted regularly in areas such as Atlantis and Nyanga to raise awareness in the communities on their role as the protectors of their cultural heritage and values. The Cape Town tourism guide also outlines guidelines for responsible tourism behavior for the tourists, which includes respect for the local culture, religion and social practices as well as dignity and privacy of the local people.
The government has also put in place measures to protect the sacred Xhosa initiation tradition from interference by the tourists, which has gone a long way in alleviating negative social impacts of tourism in their communities. To enhance the positive impacts, Cape Town in 2009 published the Khayelitsha tourism map, which showcases various tourist destinations and sites where tourists can experience both traditional and contemporary cultures of the Xhosa.
The map also includes traditional healers, shebeens, eateries, peace gardens, historical sites, and musicians. Cape Town also funds cultural festivals and events that attract tourists such as the Cape Town jazz festival, annual cape minstrel’s carnival, Fashion week and Indaba expo which showcase contemporary fashion and craft design tradition, industrial and interior design through the cape craft design institute which also supports entrepreneurs and artists.
In conclusion the social impacts of tourism should not be ignored and where positive should be cultured. In areas where a one dimensional agenda of economic gain from tourism has been pursued the result has been the disdain for tourism among the locals. The locals ending up feeling as though the city , neighborhood or the area that they have come from no longer belongs to them.
This has already happened in the Sagrada familia and the Ramblas in Barcelona and in certain areas of Majorca. Tourism in these areas is regarded as a social burden which has also created an anti-tourist attitude of the locals. In Barcelona for example it is not uncommon to see a sign written “tourist, you are the tourist”.
References
Cruz, Z. (2005). Principles of tourism Part II 2005 edition. Rex Bookstore inc.
Gawlervisitorinformationcentre. (2011). The social and cultural impacts of tourism. Australia: Tourism Fact sheets; A service of the ‘Town of Gawler’.
Peris, D. A. (2012). The impact of tourism in society. Generated Catalunya.
RTCapeTown. (2011). Social Impacts: reducing social impacts of tourism. Capetown: Responsible tourism cape town.
Tloko, N. J., & Swart, K. (2008). Sport tourism event impacts on the host community: A case study of red bull wave Africa. South Africa Journal for research in sport, physical education and recreation, 79-93.
Trousdale, W. J. (2001). Appropriate Impact assessment: A case study of kaniki point resort, Palawan Phillipines. Vancouver: Cognizant communications Corp.
Philip Sim & Associates is a law firm based in Sydney that articulates culture variations when dealing with its customers. The strategy is meant to improve the livelihoods of individuals by aiding in the local and international property transactions.
In present, emphasis is being directed towards the Chinese culture as a strategy in matching the stiff competition in the world. The corporate postulates that cultural appreciation would be the best way to expand its target population.
In this context the main culture that is being targeted by Philip Sim & Associates is the Chinese. To realize this strategy the firm workers are educating themselves about Chinese cultures so as to ensure that their clients will feel respected and not offended.
They are also recruiting more lawyers who are versed with Chinese language and culture because most of the Chinese clients, would feel more comfortable when services are rendered to them in their own language (Murray, Caulier-Grice and Mulgan, 2010).
In addition the organization strategy has positive effects on the firm as the lawyers are more appreciative to the new attitudes that come with various cultures. As a result the firm will be in a better position to handle its clients without offending them despite culture variation in different countries (Gavetti and Rivkin, 2008).
The organization strategy of the corporate has rendered it more competitive due to the diversity that has in return led to increased efficacy in the provision of the services to the customers. More clients are being won by the corporate while the loyalty of the already existing clients is intensified.
Consequently the present economic situation that is limiting the client turnover is being catered for in the inclusion of Asian market. As a matter of fact the economic situation is one of the reasons why the corporate has settled for the diversity in the demographic target segmentation. Since the market is not so good in Australia then search for better market that will increase profitability margin for the firm would be worthwhile.
Philip Sim &Associates has the strength of having a cultural sensitive approach that is on escalation. This would mean that more clients are likely to prefer it services to others that are less cultural sensitive. As a result the firm has the opportunity of being more competitive due to its attraction to new clients and maintenance of the already existing ones (Pretorius, Maritz and 2011).
The firm has a weakness in that it is not the largest. This means that there will be still more clients who will be willing to access the services from larger firms as compared to smaller ones (Carter, Clegg, Kornberger and Schweitzer, 2011). Further the firm has the threat of already existing Chinese firms as clients would not be willing to move from firms they are familiar with to those of foreign origin.
In conclusion Philip Sim & Associates has its organization strategy well formulated and cultural variation is well articulated with services it provides. The paper shows that acceptance of cultures from different countries will have a positive impact on the organization.
This is because the organization will be in a better place to offer good services when it understands and respects it clients. Consequently more clients will be willing to access services from firms that respect them. When a firm understands and appreciates more cultures the better the services that will lead to increased number of new clients and high level of maintenance of the existing customers as it becomes more competitive
Reference
Carter, C, Clegg, S, Kornberger, M.,Schweitzer, J, 2011, Strategy: Theory and Practice. Sage Publications, UK (pp. 126-129).
Gavetti, G., Rivkin, J, W, 2008, Competitive Advantage: Seek Strategy the Right Way at the Right Time. Havard Business Review, pp. 22-23.
Murray, R, Caulier-Grice, J, Mulgan, G, 2010, The Open Book of Social Innovation. London. NESTA.
Pretorius, M., Maritz, R., 2011, Strategy Making: The Approach Matters. Journal of Business Strategy, 32(4), 25-31.
This is a field trip report about the Pewsey Downs. Pewsey Downs is a nature reserve of Marlborough in Wiltshire. The place provides an attractive view from three hills overlooking Pewsey Downs. The place has controlled agricultural systems to sustain the natural environment.
Field Trip of the Pewsey Downs: Knap Hill, Adams Grave, Golden Ball Hill, the Eald Burh, Milk Hill, and Tan Hill
From the car park, the direction is eastwards to the Knap Hill. Knap Hill has pleasant grasses. It also has a Neolithic Camp with visible earthworks (Thomas, 1999). Knap Hill gives the best view across the Vale of Pewsey to Salisbury Plain. The Neolithic Causeway Camp connects Adam’s Grave and Knap Hill.
The pathway leads to Adam’s Graves through the White Horse. Adam’s Grave is a long barrow in Walkers Hill. Early occupants of this place called it Woden’s Barrow. These places are visible from the car park. The place has well-kept ditches. The chalk has beautiful flowers and varieties of butterflies. This is ten minutes walk from the car park. The view reveals steep slopes of Marlborough Downs to the north. This place also has sarsen stones.
The road continues to Golden Ball Hill beyond Knap Hill. The place has the Mesolithic buildings and Mesolithic flint knapping wastes (British Archaeology, 1997). The southwest route leads to earthworks of the Eald Burh (‘Older Castle’). This place is the back of Milk Hill. Visitors can cross to Oxna Mere and to Adam’s Grave using the Walkers Hill pathway.
Knap Hill connects with Golden Ball Hill through a steep place with the shape of a saddle.
The southwest route leads to the Eald Burh. From here, visitors can find their ways to Milk Hill. The heights of Tan Hill and Milk Hill look the same. However, Milk Hill is taller than Tan Hill. Conversely, Tan Hill offers a perfect view of Wansdyke and other surrounding areas.
Why the Pewsey Downs is important: setting, Location, Chronology, and Conservation
Pewsey Downs is on the southern parts of Marlborough Downs. It lies on a steep location overlooking a scarp facing the Vale of Pewsey. This place is within the setting of North Wessex Downs. These hills make Pewsey Downs an outstanding attraction site.
Pewsey Downs has unique flowers and grasses. These are mainly common in the upper chalk. The place has created fine herbs due to its natural climate. This place also has different types of plants.
Pewsey Downs has rare butterflies, fragrant orchids, and burnt tips. These species are not common but are within the bank of the plains along the way. There are also field fleaworts in Pewsey Downs.
Knap Hill has several round-headed rampions. The place also hosts rare species of thistle flowers without stems but have tuberous systems. Knap Hill also has the frog orchids and bastard toadflaxes. This is usually during July.
Walkers Hill conserves lady’s stresses, which are common along driveways during September in autumn.
These plants are in the grassland of Pewsey Downs. The area only has the two types of outstanding grass species in England. These are mainly the upright brome and the red fescue.
Grazing and farming in these areas are mainly for conservation purposes. The Natural England conserves the place through controlled grazing of local cattle to keep the overgrowing upright brome under control. This allows flowers to grow during various seasons.
Milk Hill has the red fescue grass for cattle and sheep. This is a grazing field throughout the year. Both Knap Hill and Walkers Hill have low activities of grazing between May and autumn. Winter seasons are for sheep. However, during April, the grazing stops so that the upright brome can grow.
The planned grazing has ensured that these fields have the best conditions for animals, varieties of plants, and other types of insects found on these plains. Pewsey Downs has unique butterflies, which conservation efforts aim at protecting. There are skippers, wall browns, and green hairstreaks during early periods of spring. During late summer, there are chalk-hill blue butterflies. In addition, there are also rare varieties of marsh fritillaries, dark green fritillaries, and small coppers and marbled white fritillaries (Natural England, 2007).
Pewsey Downs also has rabbits, moles, and badger. These animals create conducive environments for coexisting in the park in different ways.
Chronology and Own Interpretation
Pewsey Downs has rich archaeological features dating back to 1812. The White Horse makes the place noticeable. Students have used Golden Ball Hill for their geological classes.
Between 1966 and 1970, there were major excavations in Pewsey Downs. The excavations at SU 117648 and SU 193665 revealed Roman artefacts. This showed that there were elements of post-Roman activities in the area (Fowler, 2000; Draper, 2006). During excavation for water pipes in 1997, excavators did not discover any artefact along the existing Causeway running to West Wansdyke. The excavation revealed that the soil was of a modern formation (Anon, 1999).
According to a study by Maud Cunnington, excavations of 1909 and 1910 at the Causeway Enclosure revealed some activities archaeologists did not discuss earlier. As a result, Cunnington believed that the Causeway Enclosure was Neolithic (Cunnington, 1909). This was a period before the age of radiocarbon dating. Cunnington based her argument on the remains of pottery and features of the Causeway. She found bones of domesticated pigs and ox, and a pottery currently called the Windmill Hill.
In 1961, Graham Connah adopted the Cunnington’s method of excavation (Connah, 1969). However, he used advanced techniques together with methodical approaches. He also had high standards of recording and applied radiocarbon dating to evaluate his discoveries. Connah confirmed the discoveries of Cunnington regarding domesticated ox in a Neolithic setting. However, the study did not draw conclusions on the bones of pigs, sheep, and goats (Connah, 1965). This was because the stratigraphy remained unclear.
Pewsey Downs also presents periods misunderstood in history (Tubb, 2011). According to Tubb, most people do not understand prehistoric activities in the Vale of Pewsey in Wiltshire. Therefore, understanding of prehistoric activities in Pewsey Downs requires “a combination of archival reassessment, aerial photographic interpretation and non-intrusive fieldwork” (Tubb, 2011).
According to Connah, it is difficult to classify the origin of artefact at Pewsey Downs. However, he shows that the Causeway of Knap Hill did not receive many activities during the prehistoric occupation (Connah, 1965). At the same time, it is difficult to know what activities went on at Knap Hill. However, interpretation shows there was a meeting point at a flint. Still, it is difficult to establish significant activities, which took place there.
In the recent studies, Tubb shows that the “Vale was the location for a considerable density of Late Bronze Age and Early Iron Age sites” (Tubb, 2011).
Reference List
Anon, R 1999, ‘Excavation and Fieldwork in Wiltshire’, The Wiltshire Archaeological and Natural History Magazine, vol. 92, pp. 133-143.
British Archaeology 1997, ‘Three Mesolithic houses discovered near Avebury’, British Archaeology, no. 28, p. 1.
Connah, G 1965, ‘Excavations at Knap Hill, Alton Priors’, The Wiltshire Archaeological and Natural History Magazine, vol. 60, no. 1, pp. 1-23.
Connah, G 1969, ‘Radiocarbon dating for Knap Hill’, Antiquity, vol. 43, no. 172, pp. 304-305.
Cunnington, M 1909, ‘On a Remarkable Feature in the Entrenchments of Knap Hill Camp, Wiltshire’, Man, vol. 9, pp. 49–52.
Draper, S 2006, Landscape, Settlement and Society in Roman and early Mediaeval Wiltshire, Archaeopress, BAR British Series, Oxford.
Fowler, P 2000, East Wansdyke, Red Shore and New Buildings, Alton and Savernake. Web.
Natural England 2007, Pewsey Downs: National Nature Reserve, Natural England, Wiltshire.
Thomas, J 1999, Understanding the Neolithic, 2nd edn, Routledge, Oxford.
Tubb, P 2011, The LBA/EIA Transition in the Vale of Pewsey, Hadrian Books, Oxford.
Brazil is the largest country in South America. The country is situated along the east central coast and has over 193 million people. The country has 26 states and one federal district.
With an area of 8547404 square kilometers, Brazil has a lot to offer in terms of international tourism. The country has a blend of cultural and natural sites making it a preferred destination in Latin America. The country’s natural beauty and international recognition are crucial to attracting tourist around the world.
The country’s natural beauty sites include: the Rio de Janeiro city with its mystic carnival, the natural beauty of the Amazon, wildlife, the pristine of the Atlantic coastline, volcanic beaches, waterfalls, mountains among other scenic tourist sites (Brazil Ministry of Tourism).
The country has many modernistic cities such as Brasilia, Sao Paulo and ecologically advanced cities such as Curitiba. Brazil expects to attract over 9 million tourists every year.
In Brazil the promotion and regulation of tourism is mainly carried out by the ministry of trade, Commerce and Tourism. There are tourism ministries in each state. The ministry is responsible for promoting and advertising tourism in the country and aboard.
Despite having a huge potential, Brazil tourism sector has been hampered by several problems. These problems stem from poor policy and managerial strategies as well as lack of supervision in this industry. There is need to revitalize the tourism sector in Brazil. In this paper, a critical analysis of the existing policy in Brazil is done so as to reveal areas that need amendments.
The Challenges Facing Tourism Sector
There are several challenges that face the tourism sector. An analysis of these problems is imperative because the policies are mainly developed to curtail these problems.
There is also the need for the tourism ministry to team up with other ministries so that the development in the country is holistic. For example, for tourism to thrive security must be improved and this is the responsibility of security agents and defense. The major challenges include:
Political corruption
Political corruption has been inculcated in the Brazilian culture. Brazil has high level of corruptions and is ranked by transparency international as the having high corruption rates. Brazil is ranked no 68 as of 2012. Most of the corruption stems from the elite members of the community seeking to take power instead of allowing political participation for all.
Poor political leadership result to the direction of resources towards areas controlled by the elite in the society rather than to tourism. Due to corruption, most politicians concentrate on their own needs and neglect tourism industry. In order to revitalize tourism, government resources should be directed to the tourism sector and it should be given first priority.
Poverty and crime
Despite the brimming natural beauty culture and energetic people, the country suffers great poverty, inequality, crime and violence. There are many shanty towns in the country and a great divide between the poor and the rich. The numerous shanties result to increased crime which is a great impediment towards tourism growth.
Police have little control over the shanties and they use futile and harsh methods which result in the death of innocent people. Lack of proper police control results to a power vacuum which leads to other heinous crimes such as drug trafficking.
Most of the shanty towns develop in tourist zones and this hinders tourism development. Crimes committed against tourists have far reaching effects and this makes tourist avoid Brazil.
Poor and insufficient infrastructure
Promotion of tourism necessitates the development of other investments to support the tourism sector. The development of the tourism sector requires that there are adequate roads to take the tourist to their destination. Of the 350 national parks in the country, very few have adequate hotels, information centers and restaurants. There is also the need to develop hotels which are spacious and luxurious.
The government may not have enough money to invest in this area but it can encourage the private sector to build hotels. The government should also refine the foreign policy so as to attract investors in the hotel and hospitality industry.
Transportation is another vital issue preventing the growth of this industry. Some tourist destinations are not accessible by road or air. For example, tourism in the Amazon rainforest could be more developed if there was appropriate infrastructure. This makes tourism in this forest incipient.
Lack of strategies
There is general lack of appropriate strategies, vision and goals. Most of the historical, cultural and natural sites are unexploited because of lack of clear goals and objectives on how to promote tourism in this country. There is need to have strategic goals which consolidate, improve and market all tourist destination.
Visa policies
Brazil has stringent measures imposed on foreign tourist. They are required to pass through a maze of bureaucracy, pay for tax and wait for long period before greeting the visa. This makes tourist avoid these lengthy procedures and opt to go to other destinations.
Environmental concerns
There are also environmental issues associated with tourism. Increase in population results to increased pollution and destruction of the environment.
Discussions On Main Policies
There are several policies that are used to promote foreign tourism in Brazil. These policies are not effective and need to be changed. The National Tourism Plan (NTP) was a planning and management tool developed so as to induce development in the tourism sector and also result to increased jobs and income.
NTP main objective is to create new employments and bring tourists in the domestic market (Ministry of Tourism). To achieve these objectives, NTP has special emphasis on social aspects of tourism so as to benefit the community and ensure that aspects of ecotourism are inculcated in the new plan.
NTP was expected to continue the functions started by the Brazilian tourism institute (Embratur) such as consolidating the major tourist destination in the country. The main actions stipulated by the NTP are tourism promotion, strengthening the domestic tourism, training workers in the hotel industry and promoting Brazil abroad (Ministry of Tourism). One of the goals of NTP is to accelerate growth in the tourism sector.
This will be achieved by partnership between the private and public sector. The state will deal with logistics infrastructure such as development of roads, airports and water ways; energy infrastructure and urban social infrastructure. The private sector will in turn be motivated to build hotels.
The participation of the private sector is very important. In addition to allowing the private sector construct more hotels, the government should carry out an audit and classify hotels based on the amenities they have. Profiling hotels gives imperative information to potential tourist as they are able to choose hotels that suit their class.
Holistic development in this sector will require other participants in the private sector such as tourism agencies, tourism operators, private jet operators, providers of the tourism services, merchandise companies, promotional film producers and other stakeholders. The government policy framework should create an enabling environment to ensure that all these people participate in an equitable manner.
The NTP plans for development of infrastructure is credible and will achieve good success as tourism development relies heavily on the infrastructure. The policy should therefore target on improving the national infrastructure.
There is also the need for the increased private sector participation in infrastructural development. The policy should lower the taxes and other charges levied to those willing to start hotels at designated tourist sites. The policy should also offer incentives to those in the private sector willing to engage in provision of infrastructure.
The current policy does not include the issue of foreign investments in the tourism sector. Foreign investors usually bring a lot of experience, technology and other innovations that can rejuvenate the whole industry.
The foreign investors are also likely to carry out advertisement in other nations more effectively as compared to Brazil. The NTP should therefore be improved so as to consider creating an attractive environment for foreign investments in this sector.
Promotion of eco-tourism is a center theme in the NTP. Social inclusion is imperative in the development of sustainable tourism. Involving the society will enable the local residents gain income from the tourism sector.
The income from this sector will transform the shanty towns to better residential areas which will result to reduction in crime and violence. Creating jobs will also shift the society from immoral behaviors such as prostitution which is seen as a moral evil resulting from tourism.
Another NTP goal is to increases the competitiveness of the Brazilian tourist products. It is imperative that products be marketed both nationally and internationally. Aggressive marketing will be necessary to ensure that products are marketed into international market so that potential tourist can choose Brazil as their destination.
NTP also seeks to consolidate tourist information. This will enable the organization perform a social, economic and environmental survey and identify areas that need improvement.
This is necessary as it will act a means of monitoring and evaluating the tourism sector in order to indentify shortfalls and develop appropriate strategies to meet these goals. Periodic assessment of the industry is pivotal to the overall success of the sector (Healy 1996).
Education is another key strategy in the NTP policy document. Educating the people in the tourism and hospitality industry will create more jobs for the local resident.
Training the locals on tourism will also ensure that the services provided to the tourist are of high quality and more attractive to the tourists. As aforementioned, creation of jobs will result to reduction in poverty levels and crime.
Another key area is the decentralization of the tourism industry, currently tourism is concentrated on certain areas and this results to uneven development prompting more and more people to move to these areas. This results to development of poor neighborhood. Decentralization is therefore crucial in ensuring equitable distribution of the resources from tourism.
NTP also addresses the issue of management of the tourism sector. Proper management of the sector is imperative in achieving the set goals and objectives.
The management should however work with the private sector and ensure the investor views and concerns are addressed by the current management system (Hotelmule). There is need to establish a stakeholders committee comprising of the private and public sector members.
Issues To Be Addressed
One of the issues not directly addressed by the NTP is the need to improve security in the country. For tourism to succeed, security must be improved in all the major tourist destination sites. The government need to develop policies geared at improving security especially in this sector. Strategies such as enrolling more policemen so as to increase the number of policemen serving a given area should be done.
Though the government has been trying to establish special units to protect tourists, their efforts have been thwarted by their ineffective operations. The state should give special training to tourist police, procure adequate resources and institute aggressive operations and crackdown against crime perpetrators.
Community policing should also be encouraged in addition to the normal police force. Most people who live in favelas are decent and law abiding and would like the crime rates to reduce. These people would easily volunteer information to the police and improve the security of the whole region.
Branding is another concept that has not been given priority in the policy documents. Branding entails the development of a brand name for Brazil. There are several brands that represent Brazil but there is no consistent brand.
The country needs to develop a dominant brand name that will be recognized worldwide. There are attempts to produce brand image for the country (Ham 2001). Aspects such as football, modernity, Christianity, strength, vibrancy should all be taken into consideration when developing the brand.
The issue of inculcating culture on Brazil tourism has not been addressed by the NTP. Cultural creates a unique brand name which attract tourist to the destination country. The government should encourage the local people to develop products linked to their culture as well as painting that represent cultural heritage of Brazil. These products will increase trade and also create employment.
The NTP does not also emphasize on protection of the environment. There is need to check the environmental impacts that tourism has. There are many sites that are currently under threat due to urbanization. First the government should carry out an extensive environmental impact analysis and then develop strategies to mitigate any environmental pollution taking place.
Ecotourism should bring health, educations and other amenities to the community. In order to develop ecotourism, the country should partner with the international community and organizations that can finance ecotourism. Historical sites in Brazil should also be protected.
Towns such as Ouro Preto in Minas Gerais which were ancient mining grounds and other areas should be consolidated and refurbished so as to attract more tourists.
A political corruption is another impediment to development in the tourism sector. Corrupt leaders focus on self interest as opposed to national development. The government should establish a proper governance structure for the tourism sector.
The state should also view tourism as a major income earner and allocate more resources so as to revamp the industry. Some of the money earned from the tourism sectors should be directly invested in the sector.
The NTP does not address the issue of reducing the travel regulations document. The government should develop strategies that make it easy for travelers to Brazil destination to obtain visas in a speedy way.
Complicated processing procedure brings about uncertainties and these could reduce the number of tourist visiting the country. Thus, the visa processing procedure and time should be reduced and tourist given the guarantee that their travel documents will be processed in time.
Sexual tourism and prostitution have not been addressed in the NTP policy. Though the policy talks about creating jobs, it does not explicitly deal with the problem of prostitution and exploitations of children to sex. Since prostitution is legal in Brazil, it has the capacity to thrive and increase. The government should strive to move prostitution away from tourist destinations by establishing areas where it can be practiced.
Proper governance should also be advocated for. Tourism and other sectors of the economy depend on the political environment. Strict penalties should be given to those who take bribes. All public officials engaging in unethical behavior should be penalized heavily. The government should encourage anticorruption agencies to deal with cases regarding corruption and abuse of power.
Conclusion
In culmination, Brazil is richly endowed with many tourist attractions sites. The tourism industry can significantly contribute to the development of the nation if well harnessed.
The nations has been facing some impediments such as violence and increase in crime, sexual tourism, lack of proper policies, poor infrastructure, corruption, lack of a good branding procedures and failure to implement ecotourism. These challenges can be overcome by formulating proper policies that can improve the sector.
Among the main areas that should be considered are improvements of infrastructure, enhancing the Brazil brand, adopting aggressive promotional strategies, inculcating cultural aspects into the tourism products, educating the communities, adopting ecotourism, improving the services provided by policemen and improving governance.
Policymakers should therefore formulate regulations such that these crucial recommendations will be achieved.
References
Brazil Ministry of Tourism, Brazilian Ministry of Tourism Website. Web.
Ham, P. 2001, ‘The Rise of the Brand State: The Postmodern Politics of Image and Reputation.’ Foreign Affairs. Vol.80 no. 5, pp101-105.
Healy, R. G 1996,Tourism Policy in Brazil: Development Alternatives and Environmental Consequences, Nicholas School of the Environment, Duke University.
Hotelmule, Brazil Tourism Policies and Trends – Hotelmule – Hospitality and Tourism Industry Portal. Web.
Ministry of Tourism, Brazil 2007. 2007-2010 National tourism plan. A journey towards inclusion. Web.
