Introduction to Entrepreneurship PDF

Introduction to Entrepreneurship Ivy Joy R. Fonclara, CHP, MMITHM LEARNING OUTCOMES: 1. Definition of Entrepreneurship 2. Discuss the Characteristics of an Entrepreneur 3. Explain why motivation is an important factor in entrepreneurship 4. Describe the 6Cs that motivate entrepreneurs and thei...

Introduction to Entrepreneurship Ivy Joy R. Fonclara, CHP, MMITHM LEARNING OUTCOMES: 1. Definition of Entrepreneurship 2. Discuss the Characteristics of an Entrepreneur 3. Explain why motivation is an important factor in entrepreneurship 4. Describe the 6Cs that motivate entrepreneurs and their results 5. Describe Entrepreneurial Rewards and Risks 6. Describe Entrepreneurial Drivers and Barriers CONCEPT OF ENTREPRENEURSHIP  Art of starting a business, Entrepreneurship basically a start-up company offering Creative Product Process Services Lesson 1: Introduction to Entrepreneurship  A creator or a designer who designs new ideas and business processes Entrepreneur according to the market requirements and his/her own passion. Derived from the French verb enterprendre, which, means “to undertake”. This refers to those who “undertake” the risk of new enterprises. Lesson 1: Introduction to Entrepreneurship  Characteristics and Roles of an Entrepreneur A to Z Entrepreneur A Agile J Judicious S Sincere B Bold K Keen T Tenacious C Creative L Loyal U Unrelenting D Diligent M Meticulous V Vibrant E Energetic N Noble W Wise F Fair O Observant X eXcellent G Grateful P Persistent Y Youthful H Humble Q Quick Z Zealous I Innovative R Responsible Lesson 1: Introduction to Entrepreneurship  Essentials Components of Grit and Tenacity to Begin Something Strong Initiative Integrity in business Willingness to take risks dealings Boldness to try new ideas Versatility to welcome Persistence and perseverance innovations in pursuing business success Leadership and managerial aptitude Diligence and hard work to get things accomplished Lesson 1: Introduction to Entrepreneurship  Essentials Components of Basic Business Skills Active observation of potential products and services within the context of the community’s needs and wants. Close communication with customers, identification of their needs and expectations Keen consideration of data gathered on consumer behavior, consumer process, and purchase pattern Careful adoption of strategies involving product, place, price, promotion, process, people, and physical evidence Lesson 1: Introduction to Entrepreneurship  Essentials Components of Basic Business Skills Astute handling of funds, prudently, using it for product development, people management, stakeholder involvement, and government compliance Strategic creation of healthy alliances, and networks with suppliers, creditors, customers, government agencies, regulatory bodies, industry associations as well as the local and larger communities. Lesson 1: Introduction to Entrepreneurship  Essential Components of Good Feel of Environment Knowing where a business should go; Relating to other existing businesses in the area; Implementing business plans at a proper time. Getting ahead of potential competitors and, Innovating for unique and latent products and services. Lesson 1: Introduction to Entrepreneurship  Essential Components of the Strong Sense of the Needs to Embark on the Road to Becoming an Entrepreneur Seek relevant information Rely less on chance but on carefully studied data Act decisively yet with prudence and; Prepare to act on strategies with the counsel and good of stakeholders in mind. Lesson 1: Introduction to Entrepreneurship  Discover new sources of raw materials Mobilize Develop new capital markets Identifies the Role resources of an Entrepreneur in the Larger Context of Society Introduce new Create technologies, new industries, and new employment products and services. Lesson 1: Introduction to Entrepreneurship  Derived from the word “motive” which is nothing Motivation but what prompts any person to act in a particular manner. Important Factor Tough competition To enhance creativity Unfavorable environment To increase productivity To create a public demand Lesson 1: Introduction to Entrepreneurship  The 6Cs that Motivates Entrepreneurs 1. Change Entrepreneurs often want change, not only change, but they also want to be the bearers of change. 2. Challenge Some people love challenges and they choose to start a new business as it is very challenging to handle big problems. 3. Creativity Running one’s own business is all about being more creative and having the independence to make discoveries. 4. Control Some people tend to start a business because they don’t want to be pushed around and work for a product/company in which they have no way to shape their destiny. 5. Cash Many non-entrepreneurs have a misconception that cash comes first for entrepreneurs but this is never really true. 6. Curiosity Successful entrepreneurs are always anxious and ask “what if we do X this way?” Lesson 1: Introduction to Entrepreneurship  Heavy Industrialization Proper Social Self- Benefit Employment Results of Motivation Creating New Economic Jobs Growth Lesson 1: Introduction to Entrepreneurship  Entrepreneurs run the risk of Entrepreneurial Risks employing resources that are and Rewards unmaximized and underutilized. Enterprises are at risk of sustainability due to the following reasons: Proper access to finance Inappropriate location Low productivity Management incompetence Lack of skills upgrading Poor market success Technological obsolescence Lack of infrastructure Lack of information Difficult business procedures Inability to make the smooth Severe global competition business transition Poor linkage among small, medium, and large-scale industries Lesson 1: Introduction to Entrepreneurship Entrepreneurial Risks The rewards of entrepreneurship are more easily far-reaching and Rewards Enterprises are encouraged to thrive with the following rewards: Low Start-up Cost Relatively low overhead costs Catering to small markets Opportunity to develop more personal relationships Agile response to changing trends Lesson 1: Introduction to Entrepreneurship  The situation of the global and the local Entrepreneurial environment are critical considerations Drivers and Barriers Variables Global Variables Local Variables Research and Development Culture Information and Competitors Communication Technology Environment, social and Customers corporate governance standards Population and cross-cultural Community diversity Emerging Ideas Collaborators Trade Agreements Lesson 1: Introduction to Entrepreneurship Assessment Tasks: Create a group for upcoming Activities Prepare for Quiz on next onsite class. Assignment #1 What is the difference between an entrepreneur and a business owner? Reference must be included. Activity #1: Illustrate your Ideal Business (related to Tourism) and explain why you chose that business  “Entrepreneurship is about turning what excites you in life into capital so that you can do more of it and move forward with it.” -Richardson Branson- Thank You!  Role of Tourism and Hospitality Industry in Entrepreneurship IVY JOY R. FONCLARA, CHP, MMITHM Learning Objectives: 1. Describe the Entrepreneurial Process 2. Discuss the Preparation for the Tourism Entrepreneurial Journey 3. Differentiate Types of Entrepreneurs 4. Define Tourism and Entrepreneurs and understand what Tourism Entrepreneurs do. 5. Understand and analyze the intricacies of the Tourism and Hospitality Business Environment Role of Tourism and Hospitality Industry in Entrepreneurship  Developing a Business Plan Discovery Resourcing Managing Harvesting company Lesson 2: Role of Tourism and Hospitality Industry in Entrepreneurship  Preparation for the Tourism Entrepreneurial Journey Converting Ideas to Reality Creativity in Entrepreneurship Innovation in Entrepreneurship Passion Follow-through in Entrepreneurship The Three Os (Opportunity Seeking, Opportunity Screening, and Opportunity Seizing) Personal Entrepreneurial Competencies Interpersonal Competencies Business Competencies Protection of Creative Ideas Lesson 2: Role of Tourism and Hospitality Industry in Entrepreneurship  Imitating Innovative Fabian Drone Lesson 2: Role of Tourism and Hospitality Industry in Entrepreneurship  Types of Entrepreneurs 1. Innovative These are the ones who invent new ideas, new products, new production methods or processes, discover potential markets, and reorganize the company’s structure. 2. Imitating Those who immediately copy the new inventions made by innovative entrepreneurs. 3. Fabian Are skeptical about the changes to be made in the organization. 4. Drone These entrepreneurs are reluctant to change since they are very conservative and do not want to make changes in organization. Lesson 2: Role of Tourism and Hospitality Industry in Entrepreneurship  A person who undertakes a risk to start up their Tourism Entrepreneur own business. What does a Tourism Entrepreneur do? Defining what area of tourism you want your Liasing with a bank manager for a loan businesses to be in. Researching the tourism industry and Hiring and firing the right people working tourism needs long hours to make sure your business takes off. Writing a business plan Marketing your business Planning a working schedule Networking with people in the industry that will benefit your business. Lesson 2: Role of Tourism and Hospitality Industry in Entrepreneurship  Tourism and Hospitality Business Environment Factors that must be assessed in considering a business in tourism and hospitality industry; The Tourism and Hospitality Features of Tourism and Hospitality-Related Business Tourism and Hospitality Industry System Trends in Travel and Gastro Markets Tourism and Hospitality Industry Value Chain Innovations in the Tourism and Hospitality Business Environment Entrepreneurship and Entrepreneurs in Tourism and Hospitality Lesson 2: Role of Tourism and Hospitality Industry in Entrepreneurship Assessment Tasks: Group Performance Task: My Tourism and Hospitality Experience” 50 points Try to recall your most unique travel or hospitality experience and list down the top ten (10) qualities that made the experience unforgettable. List down three items on how the said experience could have been made better using the perspective of the business owner Assessment Tasks: Assignment: My Entrepreneur C-Card (50points) List and Describe the essential characteristics, skills, and competencies of a successful entrepreneur whom you are familiar with, and compare yourself vis-a-vis these characteristics, skills, and competencies. “The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” – Peter Drucker Thank You! Forms of Tourism and Hospitality Business Ownership and Franchising IVY JOY R. FONCLARA, CHP, MMITHM Learning Outcomes: 1. The Characteristics of each form of ownership and how well they match an entrepreneur’s business idea 2. Describe the features of tourism and hospitality business forms like sole proprietorship, partnership, corporation, and franchising 3. Acquire a relevant familiarity with the Philippines Corporation Code 4. Know the government’s compliance for the hospitality industry DIFFERENT TYPES OF BUSINESS OWNERSHIP AND FRANCHISING  Different Types Of Business Ownership And Franchising A. Sole Proprietorship B. Partnership C. Corporation D. Franchising Sole Proprietorship A business owned and operated by one person only. It is also may use a trading name or business name other than its legal name Sole Proprietorship Advantages Disadvantages 1. Simplest to set up 1. Demanding on owner’s time 2. Least costly form to begin 2. Growth is limited by the with owner’s financial means. 3. Total decision-making 3. Unlimited personal liability authority 4. Lack of continuity for the 4. Profit Incentive business 5. No special legal restrictions 5. Limited capabilities and skills Partnership A union or association of two or more persons to manage a business to earn a profit. Each of the partners willingly agrees to provide some amount of work, capital, and sharing of profits. Partnership 1. General Partnership – a kind of partnership where the general partners are liable for the contracts and obligations of the partnership pro-rata with their individual private or personal property after the exhaustion of partnership assets. 2. Limited Partnership – a kind of partnership that is composed of one or more general partners and one or more limited partners. Partnership 3. Partnership at will – A partnership whose term of existence is indefinite. 4. General professional partnership – A partnership formed for the exercise of a profession.  Advantages Disadvantages 1. Easy to set-up 1. Unlimited liability of at least one 2. Partners can complement their partner expertise and skills in business. 2. There is a possibility of conflicts and 3. More financial resources are available disagreements between the partners. for the business than a sole 3. There is a divided authority and profits proprietorship. among partners in the business. 4. Partners share in the decision-making 4. The partnership firm suffers from of the enterprise. uncertain existence because it can be 5. The business is not subject to as many dissolved if one of the partners dies. government regulations as companies in 5. There is limited capital due to a corporations. restriction on the maximum number of partners. Partnership’s Registration Requirement “Article 1767. By the contract of partnership, two or more people bind themselves to contribute money or industry to a common fund, intending to divide the profits themselves.” Corporation A legal entity that is separated and distinct from its owner. A corporation issues the stock to individuals or other businesses, who then become owners or stockholders of the corporation. Republic Act 11232 or the Act Providing for the Revised Corporation Code of the Philippines, was signed into law by President Rodrigo R. Duterte in February 2019. Key Provisions of the New Code 1. Perpetual Term – Section 115 provides that corporations are now allowed to exist beyond the 50-year term provided in the old code. 2. One-person corporation 3. No minimum amount of capital stocks 4. Participation via remote communications, in absentia 5. Emergency Board 6. Electronic filing and monitoring system Other Corporation 1. C Corporation 2. S Corporation 3. Non-Profit Corporation 4. Limited Liability Corporation 5. Professional Corporation  Advantages Disadvantages 1. Limited liability of owners or 1. Cost and time involved in the stockholders incorporation process 2. Attracts capitalization (organizing expenses) 3. Ability to continue indefinitely. 2. Double Taxation/Higher tax rates 4. Transferable ownership. 3. Mandated by governmental 5. Increased ability and expertise requirements and law 6. Management or decision- 4. Potential loss of control by making is shared by the board of founders directors, not the sole individual 5. Lack of representation Examples of a Corporation JG Summit is created by Mr. John L. Gokongwei. He first opened a cornstarch plant which is called Universal Corn Products, Inc. in Pasig. Since then, JG Summit widened its enterprises and diversified into other products and services, which include the following: Franchising This is another form of business that exists in the tourism and hospitality sector. Franchising enables a business to grow quickly into several geographic markets at once with a proven and tested strategy. Franchisor The owner of the business that provides the product or service. Franchisee The one who receives the rights to use the franchisor’s business name. Types of Franchising According to Allen (2013) Dealership Service Franchises Product Franchises Types of Franchising According to Scarborough (2011), Trade Name Product Distribution Pure Benefits Proven business system and procedures Management training and support Benefits from the strong brand name Standardized quality of goods and services National Advertising programs Financial Assistance Proven product and tried recipes The franchise can benefit from economies of scale Benefits Market research may be undertaken by the franchiser Franchise systems are often favored by banks due to an established track record. Drawbacks Franchise fees and ongoing royalties Strict adherence to standardized operating procedures Restriction on purchasing Innovation may be limited Franchising Rules and Regulations Department of Trade and Industry (DTI) Securities and Exchange Commission (SEC) Association of Filipino Franchisers, Inc. (AFFI) Philippine Franchise Association (PFA) Assessment Tasks Prepare for graded recitation for next week face to face. Grade Recitation #1 “Recalling and Improving” “Never start a business just to make money. Start a business to make a difference” –Marie Forleo Thank You! ENTREPRENEURIAL OPPORTUNITIES IN TOURISM IVY JOY R. FONCLARA, CHP, MMITHM Learning Outcomes: 1. Discuss the Entrepreneurial Opportunities in the Accommodation Sector: Nature, Scope, Risk, and Return 2. Discuss the Entrepreneurial Opportunities in the Transportation Sector: Determinants of Success of the Venture 3. Discuss the Entrepreneurial Opportunities in the Restaurant Services Sector: Extent of Tourist Spending in Shopping 4. Discuss the Entrepreneurial Opportunities in Tourism Attraction Development Entrepreneurial Opportunities in Tourism I (Accommodation)  ENTREPRENEURIAL OPPORTUNITIES IN TOURISM: NATURE, SCOPE, RISK AND RETURN Lodging - With the free market hospitality services, the demand for nontraditional lodging has become a streamlined technique for landowners to generate additional income. Ridesharing - Companies such as Uber, OLA, and Shuttle function as an excellent option to traditional shuttle and taxi services. They offer the prospect for individuals to earn at their own pace.  ENTREPRENEURIAL OPPORTUNITIES IN TOURISM: NATURE, SCOPE, RISK AND RETURN Guided Tours - In many tourist destinations, guided tours are planned by professionals, companies, as well as local organizations for tourists willing to explore the destination with expert assistance. Open for Business - As travel has become easier, the obligation for local businesses has developed exponentially.  ENTREPRENEURIAL OPPORTUNITIES IN TOURISM: NATURE, SCOPE, RISK AND RETURN Luggage Delivery Service - Creating a luggage delivery service is a reasonable way to break into the tourism industry and provides several entry points. Eco and Urban Tourism - Guided tours via both lush nature preserves as well as urban destinations have one more available form of income for those trying to earn a profit in the tourism industry.  ENTREPRENEURIAL OPPORTUNITIES IN TOURISM: NATURE, SCOPE, RISK AND RETURN Souvenir Shops - Shopping is a major activity for most tourists. Apart from food and accommodation, tourists usually spend a significant part of their money on clothing, crafts as well and souvenirs. Lost in Translation – Linguists looking to flourish in the tourism industry can leverage their capabilities for a consistent income in a variety of ways, including translation/interpretation work. Event Organizers - In India, tourists often opt to see cultural events, such as folk dance and folksongs.  ENTREPRENEURIAL OPPORTUNITIES IN TOURISM: NATURE, SCOPE, RISK AND RETURN Risk Associated with Tourism The five main risks associated with tourism are: Terrorism (Ritcher, 2003) War and political instability (Sonmez, Apostolopoulos, & Tarlow 1999); Health (Ritcher, 2003) Crime (Dimanche & Lepetic, 1999); Cultural and Language difficulties (Basala and Klenosky, 2001)  RISKS ASSOCIATED WITH TOURISM Some examples of risk associated with tourism are discussed below: Crime Possibility of being robbed, becoming a subject of rape/murder. Cultural Experiencing complications in communicating with foreigners. Equipment Possibility of mechanical, equipment, organizational troubles occurring during travel or at destination (transportation, accommodation, attractions). Financial Possibility of not obtaining value for money; losing or wasting money if travel opportunities are not met. Health Possibility of becoming unwell while travelling or at the destination  RISKS ASSOCIATED WITH TOURISM Some examples of risk associated with tourism are discussed below: Performance Possibility of not getting holiday benefits due to the travel product or service not performing fine Physical Possibility of being physically injured, including danger and injury detrimental to health (accidents) Political Possibility of becoming involved in the political disorder of the country being visited Psychological Possibility that the travel experience fails to reflect the traveller’s personality or self-image, harms their self-image or reflects poorly on personality Satisfaction Possibility of not achieving personal fulfilment with the travel experience  OPPORTUNITIES IN ACCOMODATION Various Types of Accomodations Hotel Hotels range from high-end five-star hotels to low-end budget hotels. Resort Resorts are for those tourists who are looking to spend extra on their holidays. Homestay A homestay is essentially a private house, offering accommodation to tourists. Entrepreneurial Opportunities II (Transportation)  ENTREPRENEURIAL OPPORTUNITIES IN THE TRANSPORTATION SECTOR: DETERMINANTS OF SUCCESS OF THE VENTURE  ENTREPRENEURIAL OPPORTUNITIES IN THE TRANSPORTATION SECTOR: DETERMINANTS OF SUCCESS OF THE VENTURE MODES OF TRANPORT  MODES OF TRANPORT Air Transport The growth and advancement in air transport in recent years has made long-distance travel easier as well as reasonable. These days, the distance is measured in terms of hours, rather than in kilometers. Road Transport Road transport is ruled by the automobile, offering a landscape-viewing experience as well as the liberty to travel according to one’s own wishes. Tourists frequently travel/drive with their family for holidays. Rail Transport The railway is the most cost-effective, appropriate, and popular mode of travel particularly for long-distance travel. The railways modernized transportation and mass movement of people.  MODES OF TRANPORT Water Transport Transportation is the most vital part of the tourism infrastructure. It is necessary not only for reaching the tourist destination but also for visiting the famous sites and moving around the said destination.  PLANNING CONSIDERATIONS FOR SETTING UP A TOURIST TRANSPORT BUSINESS Business If you choose to cater to the upmarket, then you will have to Environment plan to hire/buy the following: Luxury coaches, Luxury cars, and Luxury vans or jeeps. For the budget market, you might plan for ordinary buses, ordinary cars and jeep.. Financial Planning While drafting your financial plans, you should keep in mind the following: 1. Based on the category of vehicles, a financial feasibility report should be prepared for forecasting the necessary capital, expected revenue and expenditure, and expected profits. 2. In case of any incentives available from the government, such incentives are required to be accounted for while preparing the financial report. 3. Careful evaluation of resources and obligations should be made to regulate plans in such a manner that the on-hand resources are more productively utilized.  PLANNING CONSIDERATIONS FOR SETTING UP A TOURIST TRANSPORT BUSINESS Cost Comparison Cost comparison should be performed to assess for Purchase whether to import the vehicles or to buy them from the Decisions local market. Human Resource HR planning is very important to the enterprise in Planning several respects. The five business management functionalities of planning, organizing, leading, directing, and controlling depend on the oversight and action of HR planners for their effectual implementation. PLANNING CONSIDERATIONS FOR SETTING UP A TOURIST TRANSPORT BUSINESS  PLANNING CONSIDERATIONS FOR SETTING UP A TOURIST TRANSPORT BUSINESS Office Location The location of your office should depend on the specific segment of the tourist crowd you desire to cater. If you are providing service to domestic tourists and looking for walk-in clients, then your office should be located near the railway stations near the bus terminal or near the inter-state bus terminal. Computerization It is recommended that depending upon the intensity of your operation, in terms of size, your booking and finances should be computerised for superior efficiency.. Entrepreneurial Opportunities III (Shopping and Restaurant)  ENTREPRENEURIAL OPPORTUNITIES IN RESTAURANT SERVICES SECTOR: EXTENT TOURIST SPENDING ON THESE ASPECTS A food or culinary entrepreneur is someone who initiates their own business in the food or culinary industry. It could be someone who prepares the meal for a specialty diet (for instance, vegetarian meals), someone who procures a food truck and launches their own small food business, or someone who starts a catering firm. Food entrepreneurs can resolve a challenge they experience in the food system by amalgamating food, business, and social entrepreneurship.  ESSENTIAL SKILLS FOR STARTING A FOOD ENTERPRISE Food entrepreneurs either require profound culinary and business skills or they must have a partner who has the required skills. ESSENTIAL SKILLS FOR STARTING A FOOD ENTERPRISE Technological advances in recent times have transformed the global food industry. Food business leaders are either utilizing technology within their business model—as in the continued reputation of rapid service restaurants where diners can order from their devices or buck the drift with pop-up or personalized food businesses that focus on the experience, not the technology.  DIFFERENT TYPES OF FOOD BUSINESS Bakeries and From a customary French bakery to a fashionable Dessert Shops cupcake shop to a place that doesn’t have a public front and instead makes wedding and birthday cakes, few towns are complete without at least one great bakery. Pubs, Bars and the The pub and bar scene is constantly varying. While the Likes emphasis is often on drinking and not dining, gastro- pubs are becoming an enormous draw in many urban and suburban areas.. Restaurant A restaurant can be anything from a small set-up offering simple snacks/starters to a fine dining experience offering various courses of meals.  DIFFERENT TYPES OF FOOD BUSINESS Delivery Services Delivery is becoming very common as people get busier and busier. Food Trucks Food truck is a small food business that you can carry on you anywhere you go. Catering If you are opting for a food-related business that lets you make your own hours and choose your own way of doing business, catering could be one of the options. Coffee Shops A coffee shop can be an excellent option for those looking to enter food service without a vast menu Specialty Food A food-related business doesn’t always mean that you Shops have to cook meals or serve beverages. Specialty food shops are a fantastic way to share your love for food with your community.  TOP TRENDS FOR FOOD SERVICE BUSINESS Focus on Health Today, people are extremely conscious about their health. For many, this comprises eating healthier meals on a regular basis. Dining for Those Food truck is a small food business that you can carry on Restricted on you anywhere you go. Diets Delivery Services If you are opting for a food-related business that lets you make your own hours and choose your own way of doing business, catering could be one of the options. Entrepreneurial Opportunities in Tourism IV (Tourism Attraction Development) Tourism is considered a global phenomenon, and tourist attractions have developed radically over the past years. The characteristics of tourist attractions in the contemporary world are changing. Adoption of innovation in various sectors of tourism has led to the development of the tourist attraction market, leading to the diversification of the market. Tourist attractions are dynamically altering in terms of site, form, style, and scale.  TYPES OF TOURISM Domestic Tourism A resident traveling within their own country is defined as domestic tourism. Inbound Tourism In simple terms, inbound tourism occurs when a foreigner or non-resident visits a particular country. Outbound It refers to the movement of the resident of a particular Tourism country to visit another one. PRIMARY FACTORS THAT INFLUENCE THE DEVELOPMENT OF TOURISM  PRIMARY FACTORS THAT INFLUENCE THE DEVELOPMENT OF TOURISM Environmental A resident traveling within their own country is defined Factors as domestic tourism. Socio-Economic Accessibility, Accommodation, Amenities and Ancillary Factors Services Historical and Some destinations famous for their historical and Cultural Factors cultural importance are forts in Rajasthan and Delhi; Nazca Lines and Machu Picchu in Peru; the Pyramid of Giza in Egypt; the Great Wall of China; and Stonehenge in England. Religious Factors Some destinations famous for their religious significance are Jerusalem in Israel; Mecca and Medina in Saudi Arabia; and Tirupati, Puri, Varanasi and Amritsar in India.  PRIMARY FACTORS THAT INFLUENCE THE DEVELOPMENT OF TOURISM Other Factors Sites such as the UFO crash site in Roswell, New Mexico (USA) attract a huge number of tourists from around the globe. Aboriginal Culture Toraja funeral ceremonies in Sulawesi, hill tribes, northern Thailand famously attract tourists due to their cultural significance. Natural Ecology Places such as Sunderbans, India (famous for tigers); Raja Ampat and Andaman Islands for coral reefs; Brazil for its rainforests; and Borneo/Sumatra for orangutans are famous for ecological tourism. Man Made Some examples include Eiffel Tower, Paris; Taj Mahal, Monuments India; Colosseum, Rome; and Great Wall of China, China. Tourism Development Models  TOURISM DEVELOPMENT METHODS Discovery The area is first visited by a small number of people exploring the primary tourist attractions. Growth/Development In the second stage of development, tourist numbers increase and a tourist season may develop. Success At this stage, mass tourism replaces the original economy; tourist facilities, including transport, guiding, accommodation and restaurants are fully developed and used. Problem/Stagnation At this stage, visitor numbers reach their peak with carrying capacity reached or exceeded. Rejuvenation or Decline At this last stage, the area either declines as tourists go to other more fashionable, unspoiled destinations, or it rebrands with new, more sustainable approaches to tourist development. THE HAWKINS MODEL  HAWKINS MODEL Infrastructure This includes the capacity of transportation, the sewage mechanism, and the water supply systems along with accommodation. Social This includes the influence of tourism on local ethos, charges and welfares to services. Economic This includes the revenue generated from the tourism, cost of living, costs of services offered to the tourists, investment in tourism related services and facilities for tourists and residents. Environmental This includes the effects on the flora and fauna, level of pollution and the visual landscape. Political This includes the regulations related to tourism/visitors, restrictions of visa and government spending of taxes collected from the tourism. VARIOUS DETERMINANTS OF THE TOURISM DEVELOPMENT  MODEL OF TOURIST ATTRACTION MARKET DETERMINANTS Political Factors These factors have a negative impact on harmless tourism regions. Economic Factors The residents of this emirate expected some opportunity for the country’s economic development, in the area of tourism. Socio-Cultural These factors include altering the family models, Factors ageing communities, the challenge with the disabled, and nature preservation. Technological These factors include advancement in the area of Factors electronic communication and telecommunication, virtual reality, home theatres, and computers. Assessment Tasks Activity #2: Research Short Essay (50 Points) What are the critical factors needed to consider in starting a tourism industry Explain each of the sectors within the Tourism Industry. What are the functions and services offered? Explain government compliances with the tourism industry “Don’t worry about being successful but work toward being significant and the success will naturally flow.” Oprah Winfrey Thank You!