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Contemporary Tourism

Contemporary Tourism. The Tourism Industry: Contemporary Issues. Lecture Objectives. Understand that tourism businesses have a range of objectives Be familiar with the causes of globalisation Recognise the responses of tourism businesses to globalisation

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Contemporary Tourism

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  1. Contemporary Tourism The Tourism Industry: Contemporary Issues

  2. Lecture Objectives • Understand that 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 • Tourism businesses 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 in the 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 of Scale • 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 for Tourism • 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. Networks Actors Relationships Resources Types Innovative Networks of businesses Networks of destination organizations Tourism Networks

  14. Benefits • For tourism businesses 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 the Future • Internal • Vertical • Inter-market • Opportunity

  16. Small Businesses • Tourism dominated 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 the Destination • 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 are they? • 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

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