Stakeholder theory and its application as a tool for tourism development.

Stakeholders in sustainable tourism management planning are all the individuals who are interested in and/or affected by tourism development and biodiversity conservation. They should participate in the planning process from the early stage.

 

Reasons for stakeholder involvement when developing a tourism management plan

They live within the BR and are affected by tourism and conservation measures.

They are engaged in the tourism industry (directly or indirectly) and therefore influence tourism development.

Their businesses usually benefit from the natural resources and services in the area.

They may be required to carry out certain tasks to achieve the sustainable tourism development goals. They can also cause major degradation and depletion of natural resources.

They may utilise it to such a degree that they threaten biodiversity.

They constitute part of future generations for whom the natural and cultural heritage should be maintained.

 

The tourism sector includes a great variety of products and services and influences the local economy as well as the culture and living-conditions of the tourism destination. This means that there is a wide range of people involved in tourism, such as local tourism service providers, retailers, hoteliers, etc. Furthermore, the whole local population is affected by tourism development. The preparation of the tourism management plan means also, deciding on which of these different stakeholder groups are important for the process. Care should be taken not to exclude parts of the local How to identify stakeholders: - division in „key stakeholders“ or small cohesive groups - grouping according to their background (political, social, environmental, etc.) - division into general and professional public S t a k e h o l d e r i n v o l v e m e n t 2 1 population which are not directly involved in tourism. There are various methods which can be used to identify and group stakeholders. One of these is the division of all stakeholders into smaller more cohesive groups or “key stakeholders”. Stakeholders come from governmental, nongovernmental and private sectors and from indigenous and local communities and can be grouped according to their background, e.g. whether they are primarily political, economical, social, technological, legislative or environmental. Another way would be to divide them into the professional public and the general public (see the box below).

 

Stakeholders in tourism management planning:

Neighbours and residents (local communities)

Farmers, foresters, hunters and fishermen

Tourism providers such as hoteliers, restaurant owners, tourist guides, etc.

Tours operators and tourism agencies

Local business men, e.g. retailers

Local authorities: local municipalities, local administration

Local NGOs

Educational institutions (schools, universities, etc.), research centres

Visitors

Media

 

Stakeholder involvement serves the purpose of:

- building new capacities

- creating a „common issue of concern“ Different stages of plan development demand different ways of stakeholder participation.

 

 

2.

Impact assessment comprises negative and positive impacts of tourism on the environment for the present state as well as for the future.

 

A large part of tourism management involves the assessment, the moni￾toring and the management of the impacts that tourism has on the natural and cultural environment. Impact management means: Identifying the impacts of existing tourism activities Assessing these impacts, taking the viewpoint of sound tourism development and biodiversity conservation into consideration Predicting the impacts of the future tourism development Developing ways to monitor and react on impacts of existing tourism activities and of the future tourism development

 

Impact management can include measures for the siting of tourism development and activities, measures to control tourist flows, the promotion of appropriate tourist behaviour and the limiting of the number of tourists (using the LAC method). The tourism management plan describes the concrete measures either to avoid or to mitigate existing and potential negative impacts. Impact management can be divided into the following steps:

definition of a clear set of indicators, that will be used to measure and assess the impacts

measuring of impacts (constant monitoring)

assessment of the monitoring data: are the impacts within the acceptable limits or not?

description of action plans which will become effective in case of unacceptable negative impacts implementation of action plans

Those who are responsible for the implementation of the action plans, and the resources necessary for impact management should be identified in the tourism management plan. Information on the impact assessment and management should be made available to the stakeholders and the public (e.g. annual publications, conferences, workshops)

 

 

Impact management for tourism development and tourism activities

Controlling impacts of major tourist flows including excursions, cruise ships, etc., which can cause serious effects on destinations even though they are visited for only shortly

Reducing impacts of activities outside tourism areas on adjacent and other ecosystems of importance for tourism (e.g., pollution from nearby farming activities or extractive industries may affect areas of tourism development)

Responsible use of natural resources (e.g., land, soil, energy, water)

Reducing, minimizing and preventing pollution and waste (e.g. solid and liquid waste, emissions to air, transport)

Promoting the design of facilities that are more eco-efficient, which adopt the cleaner production approach, and use environmentally sound technologies, in particular to reduce emissions of carbon dioxide and other greenhouse gases and ozone-depleting substances, as set out in international agreements

Conserving flora, fauna and ecosystems

Preventing the introduction of alien species as a result of the construction, landscaping and operating of tourism activities, including for example from shipping associated with tourism

Conserving landscapes, cultural and natural heritage

Respecting the integrity of local cultures and avoiding negative effects on social structures, involving, and cooperating with, indigenous and local communities, including measures to ensure respect for sacred sites and customary users of these sites, and to prevent negative impacts on them and on lands and waters traditionally occupied or used by them, as well as on their subsistence resources

Using local products and skills, and providing local employment

Promoting appropriate behaviour by tourists so as to minimize their adverse impacts, and to promote positive effects through education, interpretation, extension, and other means of awarenessraising Alignment of marketing strategies/messages with the principles of sustainable tourism;

Contingency plans for handling accidents, emergencies or bankruptcies that may occur during construction and use of facilities and which may threaten the environment and the conservation and sustainable use of biodiversity

Environmental and cultural sustainability audits and review of existing tourism activities and developments and of the effectiveness with which impact management is being applied to existing tourism activities and developments

Mitigation measures for existing impacts, and appropriate funding to support them. Such measures should include development and implementation of compensation measures in cases when tourism has resulted in negative environmental, cultural, and socio-economic effects, taking into consideration the range of redress and compensation measures

 

Travel and tourism has many positive benefits, including that it is, for some countries, the main source of job creation and revenue. However, there are many negative consequences of tourism, including the often-cited destruction of both the environment and the traditions of local populations. Vellas and Becherel (1995: xxii) go as far as to describe international tourism as ‘undeniably one of the most influential phenomena (possibly even the most influential) in the economic and social development of our society’. The economic impacts of tourism for tourist-receiving areas can be hugely significant. Indeed, some destinations depend on tourism for their income. Such income is generated from a number of sources, including wages and salaries of those in tourismrelated employment. A well-recognised phenomenon in tourism is the tourism income multiplier (TIM), whereby tourists’ expenditure in an area is re-spent by recipients, so augmenting the total. The factor by which tourist expenditure is increased in this process is the multiplier (Holloway, 1994). Also important to tourist-generating and receiving areas is the creation of jobs. Tourism can greatly influence a country’s balance of payments. Money spent by tourists overseas acts as an invisible on the balance of payments account of the country visited and a debit against the home country account. Any money spent overseas is an import to the generating country and an export to the receiving country (Holloway, 1994). The social and environmental impacts of tourism are now very well documented, as are suggestions for the minimisation of the negative consequences of tourism. Chapter 18 on the environmental impacts of tourism particularly illustrates how the debate has moved on in this area of tourism management.

 

3.

HRM ‘is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques’. The challenge of HRM then would seem to be how to recruit, deploy, develop, reward and motivate staff, leading to them being a source of competitive advantage. As the above discussion suggests, however, there is more than one route to seeking competitive advantage and this point is further considered in examining the notion of ‘hard’ and ‘soft’ HRM.

 

Human resource management in tourism organizations should consider:

1. Good human resources planning and skills need to have the worker in tourism, said the achievement, otherwise tourism plans should be taken into account swings in seasonal employment-season;

2. Recruited staff should be prepared according to the labor market: - Size: large / small; - Character: primary / secondary; - Payment level: high / low. Tourist recruitment market consists of four main elements: - setting standards of employment; - the observation target market; - identifying the sources of recruitment; - calculation of costs involved in.

3. Determining rewards of tourism industry staff should consider: - seasonality; - diversity of activities performed; - involving employees in achieving tourism products.

 

5.

Tourism marketing is different because the customer purchases a series of services. While marketing a tourism product, the sales or marketing person insists on the positive facets of the following four components −

Product

The tourism being a service sold to the customers, tourist experience is the product, which is intangible, and non-storable. The quality of the tourist experience as a product is directly proportional to the quality of the service a tourism business provides. The product must be designed to highlight its features and to satisfy the tourist’s needs. If the product is branded, the customers find it more reliable.

 

Promotion

Promotion is intended to inform the customers about the products, create an image about the product, and position the products in the market. There are various effective ways of promoting the tourism products −

· Advertising the products on television commercials, newspapers, radio stations, and websites.

· Distributing promotional material such as diaries, brochures, keychains, wallets, purses, water bottles, pens, or any small gift item designed for promoting the product.

· Setting Point of Sale (POS) displays at various places such as retail stores, shops, malls, or petrol pumps.

· Promoting tourism products in local fairs.

· Promoting the products with their attractive features on the website of the tourism enterprise.

· Conducting programs of sponsorships, or promoting products by offering them as incentives.

 

 

4.

The term Business Environment is composed of two words ‘Business’ and ‘Environment’. In simple terms, the state in which a person remains busy is known as Business. The word Business in its economic sense means human activities like production, extraction or purchase or sales of goods that are performed for earning profits.

On the other hand, the word ‘Environment’ refers to the aspects of surroundings. Therefore, Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects the functioning of organization. Business Environment has two components:
1. Internal Environment
2. External Environment

Internal Environment: It includes 5 Ms i.e. man, material, money, machinery and management, usually within the control of business. Business can make changes in these factors according to the change in the functioning of enterprise.

External Environment: Those factors which are beyond the control of business enterprise are included in external environment. These factors are: Government and Legal factors, Geo-Physical Factors, Political Factors, Socio-Cultural Factors, Demo-Graphical factors etc. It is of two Types:
1. Micro/Operating Environment
2. Macro/General Environment

Micro/Operating Environment: The environment which is close to business and affects its capacity to work is known as Micro or Operating Environment. It consists of Suppliers, Customers, Market Intermediaries, Competitors and Public.

(1) Suppliers: – They are the persons who supply raw material and required components to the company. They must be reliable and business must have multiple suppliers i.e. they should not depend upon only one supplier.

(2) Customers: – Customers are regarded as the king of the market. Success of every business depends upon the level of their customer’s satisfaction. Types of Customers:
(i) Wholesalers
(ii) Retailers
(iii) Industries
(iv) Government and Other Institutions
(v) Foreigners

(3) Market Intermediaries: – They work as a link between business and final consumers. Types:-
(i) Middleman
(ii) Marketing Agencies
(iii) Financial Intermediaries
(iv) Physical Intermediaries

(4) Competitors: – Every move of the competitors affects the business. Business has to adjust itself according to the strategies of the Competitors.

(5) Public: – Any group who has actual interest in business enterprise is termed as public e.g. media and local public. They may be the users or non-users of the product.

Macro/General Environment: – It includes factors that create opportunities and threats to business units. Following are the elements of Macro Environment:

(1) Economic Environment: – It is very complex and dynamic in nature that keeps on changing with the change in policies or political situations. It has three elements:
(i) Economic Conditions of Public
(ii) Economic Policies of the country
(iii)Economic System
(iv) Other Economic Factors: – Infrastructural Facilities, Banking, Insurance companies, money markets, capital markets etc.

(2) Non-Economic Environment: – Following are included in non-economic environment:-
(i) Political Environment: – It affects different business units extensively. Components:
(a) Political Belief of Government
(b) Political Strength of the Country
(c) Relation with other countries
(d) Defense and Military Policies
(e) Centre State Relationship in the Country
(f) Thinking Opposition Parties towards Business Unit

(ii) Socio-Cultural Environment: – Influence exercised by social and cultural factors, not within the control of business, is known as Socio-Cultural Environment. These factors include: attitude of people to work, family system, caste system, religion, education, marriage etc.

(iii) Technological Environment: – A systematic application of scientific knowledge to practical task is known as technology. Everyday there has been vast changes in products, services, lifestyles and living conditions, these changes must be analysed by every business unit and should adapt these changes.

(iv) Natural Environment: – It includes natural resources, weather, climatic conditions, port facilities, topographical factors such as soil, sea, rivers, rainfall etc. Every business unit must look for these factors before choosing the location for their business.

(v) Demographic Environment:- It is a study of perspective of population i.e. its size, standard of living, growth rate, age-sex composition, family size, income level (upper level, middle level and lower level), education level etc. Every business unit must see these features of population and recongnise their various need and produce accordingly.

(vi) International Environment: – It is particularly important for industries directly depending on import or exports. The factors that affect the business are: Globalisation, Liberalisation, foreign business policies, cultural exchange.

Characteristics:-

1. Business environment is compound in nature.

2. Business environment is constantly changing process.

3. Business environment is different for different business units.

4. It has both long term and short term impact.

5. Unlimited influence of external environment factors.

6. It is very uncertain.

7. Inter-related components.

8. It includes both internal and external environment.

Consumer behaviour refers to the process of acquiring and organizing information in the direction of a purchase decision and of using and evaluating products and services. This process encompasses the stages of searching for, purchasing, using, evaluation and disposing of products and services. The tourist buying decision presents some unique aspects: it is an investment with no tangible rate of return, and the purchase is often prepared and planned through savings made over a considerable period of time. That is, the vacation tourist will invest with no expectation of material and economic return on his or her purchase of an intangible satisfaction.

As travellers become more sophisticated in their vacationing behaviour, research must continue to become more sophisticated to explain this behaviour. There are many factors that influence an individual’s behaviour. To take adequate actions in the area of tourism marketing, one must understand how people perceive such things as destination areas, air travel, travel distances and travel advertising; how they learn to consume and to travel; how they make travel decisions; and how personality affects those

decisions. One must also analyse what motivations influence the individuals’ travel decisions; how attitudes are formed; and how various groups affect travel behaviour.
The rise in the cost of energy, the trend to smaller family units and to live in smaller spaces, the improvement of forms of communication and the access of more people to higher education, are examples of general and diverse factors that have