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The tourism industry contemporary issues
- 1. Contemporary Tourism The TourismIndustry: Contemporary Issues
- 2. Lecture Objectives • Understandthat tourism businesses have a range of objectives • Be familiar with the causes of globalisation • Recognise the responses of tourism businesses to globalisation • Appreciate the benefits of knowledge management for tourism businesses • Realise the explanatory power of network analysis for understanding the tourism industry • Be aware of the importance of embedding within networks for tourism businesses • Recognise the distinction between small businesses and entrepreneurs • Understand the characteristics of tourism small businesses • Appreciate the critical importance of human resources to tourism businesses • Be aware of the challenges facing tourism human resources
- 3. The Industry • Tourismbusinesses allow the tourism experience to happen • Business Objectives: • Profit • Sales • Prestige • Output • Satisficing • A quiet life
- 4. Key Issues • 1.Globalisation; • 2. The knowledge economy; • 3. Networks; • 4. Small businesses; and • 5. Human resources
- 5. Globalization • Boundarylessness • Drivers •Technology • Economy • Politics • Culture • Environment • Business
- 6. Service Sector Strategies •Strategic capability to develop national responsiveness • Administrative structure to allow networking flexibility • Alliances and partnerships • Internationalization
- 7. Managing Knowledge inthe Sector • Generation and transfer of knowledge to the tourism sector • Knowledge-based economy based on the production, distribution and use of knowledge • Technology facilitates • Depends on people • Abundance of knowledge • K-commerce
- 8. Types of Knowledge •Tacit knowledge • Explicit knowledge • Transfer the key for tourism
- 9. The Issue ofScale • Knowledge management traditionally for individual organizations • Destinations are networks of many organizations • Articulation of knowledge from individual organizations through networks is the key
- 10. Benefits of KM •Cuts learning time • Encourages smart solutions • Enhances responsiveness • Effective • Enhances staff performance • Uses intellectual assets • Leverages partners
- 11. Networks • Organizations changing •Flatter structures • Instant communication • Flexible specialization • Alliances • Loosely articulated networks as destinations or value chains • Businesses can ‘embed’
- 12. Approach Useful forTourism • Tourism needs collaboration to deliver product • Acts as a flexible diagnostic tool • Give insights into business behaviour • Shows how destination networks can be optimized
- 13. Tourism Networks • Networks •Actors • Relationships • Resources • Types • Innovative • Networks of businesses • Networks of destination organizations
- 14. Benefits • For tourismbusinesses membership of a network delivers a range of benefits including: • ｷ Scale and scope economies (such as alliances); • ｷ Coordination of complementary assets (such as marketing synergies); and • ｷ Higher strategic benefits where the members of the network share a common vision (such as destination branding).
- 15. Networks in theFuture • Internal • Vertical • Inter-market • Opportunity
- 16. Small Businesses • Tourismdominated by SMEs and entrepreneurs • No agreed definition of small businesses • SMEs protected by policy • SMEs seen as force for good • BUT - undermanaged?
- 17. SMEs and theDestination • ｷ They rapidly diffuse income into the economy through strong backward linkages into the economy of a destination; • ｷ Similarly, they contribute to employment; • ｷ They provide a localised welcome and character by acting as a point of direct contact between the host community and the visitor; and • ｷ In a market that increasingly demands tailored experiences, SMEs play an important role in responding to tourists’ demand and so facilitating ‘flexible specialisation’ (Ateljeic and Doorne, 2001).
- 18. Entrepreneurs • Who arethey? • Are all SMEs run by entrepreneurs? • They play a key role in tourism development • Three features • Expertise • Motivation • Source of capital • No blueprint for success
- 19. Tourism Human Resources •Tourism is labour intensive • Opportunities for women, the young and the less advantaged • Essential for tourism product delivery • Not taken seriously • Issues • Demographics • Jobs and working conditions • Management