Tourism & Hospitality Industry Stakeholders PDF

TH2108 Tourism and Hospitality Industry Stakeholders Definition of Tourism Stakeholders The tourism industry comprises a complex network of stakeholders and groups interested in the development, management, and marketing of tourism for a particular destination. These stakeholders' support, commitm...

TH2108 Tourism and Hospitality Industry Stakeholders Definition of Tourism Stakeholders The tourism industry comprises a complex network of stakeholders and groups interested in the development, management, and marketing of tourism for a particular destination. These stakeholders' support, commitment, and cooperation to tourism in a destination are essential for the industry's long-term sustainability. The participation of stakeholders in the decision-making process is essential for sustainable tourism development (Stainton, 2021). A stakeholder is anyone involved with a particular project, organization, or industry. To put it simply, they hold a metaphorical ‘stake.’ A stakeholder in tourism can be a person, such as a tourist or a taxi driver. They could be a group of people such as a student group or a family. They could be a company or organization. A stakeholder is different from a shareholder. A stakeholder is a person, group, or organization that is in some way involved with a project. A shareholder is a person, group, or organization that owns part of the project (i.e., a share). Therefore, a stakeholder and a shareholder are two (2) different things. When referring to a stakeholder in tourism, it is not somebody who is necessarily financially involved. Instead, s/he could have a wide range of involvements that are not necessarily related to ownership or money. Stakeholder Theory in Tourism and Hospitality Stakeholder Theory is all about how stakeholders should be considered when making business decisions. Most of the world nowadays is built upon a capitalist society, within which there is a complex web of interconnected stakeholders. From customers to suppliers, employees, investors, and local communities, their needs and desires must be considered to yield optimal results. Robert Edward Freeman first introduced stakeholder Theory in 1984. Since then, businesses and organizations in various industries worldwide have utilized Edward’s theoretical contributions in their operational plans. Stakeholder Theory presupposes that an organization should consider and create value for all stakeholders when undertaking their planning and operational activities. This theory has become a key consideration in business ethics research and has served as a platform for further research and development in the area (Stainton, 2021). Stakeholder Analysis in Tourism and Hospitality Stakeholder analysis is a process whereby key stakeholders are identified and grouped according to levels of participation, interest, and influence. The organization must then determine how best to work with and satisfy the said stakeholders. In the context of tourism, this could involve: Considering how best to work with the host community or the government on tax policies, for example, and Investigating what products would be most popular with tourists and what working conditions must be provided to yield the best outcomes from company employees. Stakeholder analysis is a complex task where each person, group, or individual must be assessed in terms of their value to the organization and their needs and requirements. Theoretically, if the organization operates with all of its stakeholders’ needs and requirements in mind, they are more likely to satisfy stakeholders and, therefore, conduct successful business operations. Roles of Stakeholders in Tourism and Hospitality According to the United Nations World Tourism Organization (UNWTO,2005), several stakeholders may directly or indirectly impact tourism planning and development. They play various roles and may sometimes have competing aims and objectives. Hence, it is important to identify the key tourism and hospitality stakeholders. 02 Handout 1 *Property of STI  [email protected] Page 1 of 4  TH2108 Governments - The government plays a key role in the tourism industry. It will dictate various rules, requirements, and practices, from visa policies to maintaining public infrastructure throughout the different levels of tourism policy and planning. These policies can take a top-down approach, for example, by international or national bodies, or a bottom-up approach, from a local level. o International tourism planning - At the international level, tourism planning typically involves international transportation services, the movement and scheduling of the tours of tourists among different countries, the development of major tourist attractions and facilities in neighboring countries, and the working strategies and promotional programs of many countries. o National tourism planning - The national level of tourism planning is concerned with tourism policy, infrastructure facilities, and a physical structure plan that includes important tourist attractions, selected tourism development regions, international entry points, facilities, and services. It is also concerned with the amount, kinds, and quality of accommodation and other required tourist facilities and services, the important tour routes in the country and their regional connections, tourism organizational entities, laws and investment policies, tourism marketing strategies and promotion, education and training programs, and environmental, economic, and socio-cultural impact analysis. o Regional tourism planning - Regional planning looks at aspects including regional policy (regional entry points and transportation facilities and services), kinds of tourist attractions and their locations, the amount, kinds, and location of tourist accommodation and other tourist facilities and services, and location of tourist development areas including resort areas. Regional tourism planning also covers the management of socio-cultural, environmental, economic impact analysis, education and training programs on the regional level, marketing techniques and promotion, organizational establishments, laws, regulations, and investment policies and implementation methods, including project plans and regional zoning regulations. o Local tourism planning - Local-level participants will consider tourism planning goals/objectives, analysis, plan preparation, outputs, outcomes, and evaluation at the grassroots level. Examples of local-level participation groups include local government, producer, non-producer, and single-interest organizations. Tourism Establishments and Enterprises - Tourism establishments and enterprises play a variety of roles in tourism development, such as the following: o Airlines increased world trade activity by enabling faster and easier movement of passengers and goods. o Trains are among the most important, commonly used, and cost-effective modes of commuting and goods carriage over long and short distances. o Buses transport tourists from one place to another. o Restaurants provide tourists with food and drinks. o Hotels provide accommodation products/services. o Tour operators, travel agencies, and tourist information centers that assist tourists also fall into this category. Traveling abroad is almost impossible without tourism organizations. Tourists - Tourists are at the very heart of the tourism industry. Without tourists, there would be no tourism. Perhaps the most important stakeholders are business travelers and visitors to tourism destinations, sites, and attractions. Tourists visit attractions, spend money, and promote the attractions through word of mouth and social media if their experience is positive. If the experience is not positive, tourists may not return to the attractions and even spread negative word of mouth. Tourism Employees - Tourism employees, professionals, and consultants also play a very important role in tourism development. The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operators to cleaners, tourism creates many employment opportunities. Restaurants, hotels, airlines, buses, trains, and other tourism 02 Handout 1 *Property of STI  [email protected] Page 2 of 4  TH2108 sectors will certainly struggle should they employ an inadequate number of employees or shortages of skilled people in the market. Local People - Local people are also very important in tourism development. They may have legitimate concerns and may resist any tourism development. Therefore, they need to be involved in the decision-making process where appropriate. With their distinct values and cultures, local people can add value to any tourist destination. Being hospitable to tourists is a great way to make them feel comfortable during their trip. Another thing that locals can do is share more about their culture and customs as this will help tourists understand local etiquette, and as a result, they will enjoy and appreciate their trip even more. Education - The education sector is also a stakeholder in tourism. Many educational courses will involve visits to tourism areas to enhance the educational provision offered. o School Trips - It may pay host communities to create reasons for school children to visit. While these trips rarely translate directly into overnight stays, they can help promote tourism products in two (2) ways: (1) children may bring their parents back for a longer visit, and (2) they aid local businesses. o Study Abroad Experience – It is also known as student exchange programs where students often travel not only within their destination country of choice but throughout that county and even to neighboring lands. The goal here is to widen the educational experience so that university students know their own culture and that of another nation. o Workshop Travel – According to International Air Transport Association (IATA), this provides a broad understanding of the global tourism sector and the knowledge and skills to maximize the business potential of this industry through seminars and workshops. Utilities and Infrastructures - Certain utilities and infrastructure are required for the tourism industry to function. This means that the local power plant is a stakeholder in tourism because it provides energy. It also means that the builders, road workers, and engineers are stakeholders in tourism because they provide and maintain the necessary infrastructure. Infrastructure is the key to developing a successful tourism destination. The tourism industry stimulates investments in new infrastructure, most of which improves the living conditions of residents and tourists. Tourism development projects can include airports, hotels, restaurants, and other tourist destinations and infrastructure. The structuring and delivery of modern infrastructure facilities are extremely complex. According to Grzinic and Saftic (2012), seven (7) actions can ensure adequate tourist and related infrastructure: o ensure accessibility to and within the destination; o improve communal infrastructure; o develop new accommodation capacities; o advance the service quality of provided services; o develop the necessary infrastructure; o upgrade existing accommodation capacities; and o focus on destination safety and cleanliness. Transportation - There is a strong relationship between transport and tourism. Transportation is a fundamental driver of the tourism industry. It is a precondition for travel since it facilitates mobility and the movement of tourists from their place of origin (i.e., their home area) to their destination and back. As such, the method of transport between point A and point B is an integral part of the tourism system, thus making the transport providers (e.g., airlines, trains, and taxis) important stakeholders in tourism and economic development. Here are some of the reasons why: o Transportation helps in economic development. Human beings depend upon natural resources and materialistic goods and services to satisfy the needs and wants of life. Transportation distributes the necessities and luxuries from one place to another. It becomes 02 Handout 1 *Property of STI  [email protected] Page 3 of 4  TH2108 one of the major forces in boosting tourism products and services that mobilize the capital market. o Transportation offers numerous opportunities. It can be measured in terms of added value and employment. There is an increase in employment opportunities, and it helps boost the national income of a country. It also acts as a viable opportunity for the consumer to enjoy the usage of numerous goods and services that were previously unavailable at their local place. o Transportation helps in social development. Because of transportation, human beings have been able to travel to faraway places where the idea of a visit was inconceivable. New lands have been discovered, which are now utilized to gain optimal benefits. Quality transportation links have ensured connectivity, resulting in social inclusion and a better lifestyle. It is also convenient for a tourist to travel and visit places. o Transportation helps in political development. Transport also plays a major role in maintaining national defense. An effective transport system can move quickly between sensitive areas and transport defense personnel, equipment, materials, food items, and other necessities during war or emergencies. It is also an important source of revenue for the government and helps boost national income and wealth. o Transportation helps in bringing people closer during natural calamities. In such dire circumstances, transportation is a blessing in disguise and manages to distribute survival kits and emergency food items immediately afterward. Helicopters dropping important items like food packages and medicinal facilities are common during natural disasters. Moreover, transportation helps helpers and disaster management personnel travel to these places and lend a helping hand for further re-habilitation. o Transportation helps in the growth of business organizations. Transportation is considered a major force that has contributed heavily to the growth of business organizations. It is the medium that physically connects a business entity to its customers and suppliers. Bringing raw materials from the source stations to the manufacturing facilities and later distributing the finished goods from these locations to the consumer market via warehouses is an essential service that would not have been possible without it. It is a fact that most business activities are dependent upon transportation and are also influenced by its role. References: Bhasin, H. (2020, January 20). The Importance of Transportation Explained. Marketing91. Retrieved August 27, 2021, from https://www.marketing91.com/importance-of-transportation/ IPL. (2021). Importance of infrastructure in tourism. Retrieved August 27, 2021, from https://www.ipl.org/essay/Importance-Of- Infrastructure-In-Tourism-P3G692FC4D6 Page, S., & Ge, Y. (2009). Transportation and tourism: A symbiotic relationship?. In T. Jamal, & M. Robinson The SAGE handbook of tourism studies (pp. 372-396). SAGE Publications Ltd, https://www.doi.org/10.4135/9780857021076.n21 Rahman, M. (2021, July 16). Stakeholders in tourism development. Retrieved August 27, 2021, from HowandWhat: https://howandwhat.net/stakeholders-tourism-development/ Stainton, H. (2020, December 10). Different levels of tourism policy and planning. Tourism Teacher/ Retrieved August 27, 2021, from https://tourismteacher.com/tourism-policy-and-planning/ Stainton, H. (2021, July 13). Stakeholders in tourism: Who are they and why do they matter? Tourism Teacher. Retrieved August 27, 2021, from https://tourismteacher.com/stakeholders-in-tourism/#1-stakeholder-theory-in-tourism- Tomas, H. (2010, May 10). Opportunities and tips for educational tourism providers. Tourism Review News Respected Voice of Tourism. Retrieved August 27, 2021, from https://www.tourism-review.com/educational-tourism-opportunities-and-tips-for- organizers-news2180 Educational tourism. (n.d.) Tourism beast. Retrieved August 27, 2021, from https://www.tourismbeast.com/educational-tourism/ 02 Handout 1 *Property of STI  [email protected] Page 4 of 4