INTRODUCTION
More than any other type of development, tourism requires an unspoiled environment in which to operate. This is particularly true in the Asian and Pacific region, where the region’s major marketing strategy exalts the beauty and tranquility of its coastal areas. It is essential that tourism in the region is developed and managed in such a way as to protect natural assets. The extent to which tourism development is planned and controlled in an orderly and coordinated manner will affect the long-term quality of the tourism product and subsequently the success of the industry. While tourism can be a catalyst for development, it is of the utmost importance that governments plan and develop tourism carefully so that the benefit can be optimized without creating social and environmental problems.
PART 1
Analysis of the best theoretical perspectives on policy-making
There are four theoretical perspectives on policy-making. These are institutional approach, group approach, socio-economic approach and rational choice. In these four approaches, there are certainly strengths and weaknesses of each of them. It is essential to know their basic differences and uses so that they can be applied in the right aspect appropriately and wisely.
Explaining the tourism policy-making process in a particular context can be one aspect of using the four theoretical perspectives. But explaining is not merely discussion of the important things to be known but also it involves critical thinking and good communication for the people to understand.
Of the four theoretical perspectives on policy-making, the tourism policy process can be best explained by three approaches. These approaches are considered the most fruitful for explaining tourism policy-making. The issue of urban in advanced capitalist economies will be tackled using the approaches of institutional, group and rational choice.
The rational choice
First to be discussed is the rational choice theory. It is characterized by the combined assumptions of maximizing behavior, market equilibrium, and stable preferences used relentlessly. Of the three assumptions, maximizing behavior is fundamental. It is however, a simplifying assumption to be employed and assessed within the context of predictive models that are themselves simplified representations of reality. The assumption implies that people approach all actions in the same way, evaluating costs and benefits and acting so as to maximize their net benefits.
Those features of social life that are conventionally called ‘social structures’ are, for rational choice theorists, simply chains of interconnected individual actions (Turner, 1992). They are the ‘patterns’ that result from individual actions. It is because many of these chains can be quite extensive that social life can appear to have a life of its own.
There are several assumptions of the rational choice theory. It stated that humans are purposive and goal oriented. Human have sets of hierarchically ordered preference, or utilities. In choosing lines of behaviour, humans make rational calculations with respect to the utility of alternative lines of conduct with reference to the preference of the hierarchy, the costs of each alternative in terms of utilities foregone, and the best way to maximize utility. Emergent of social phenomena that rise form natural choices constitutes a set of parameters for subsequent rational choices of individuals in the sense that they determine the distribution of resources among individuals, the distribution of opportunities for various lines of behaviour and the distribution and nature of norms and obligations in a situation (Scott, 2000).
Rational choice theory adopts a methodological individualist position and attempts to explain all social phenomena in terms of the rational calculations made by self-interested individuals. Rational choice theory sees social interaction as social exchange modelled on economic action. People are motivated by the rewards and costs of actions and by the profits that they can make. Some rational choice theorists have seen rationality as a result of psychological conditioning. Others have adopted the position that it is simply necessary to assume that individuals act as if they were completely rational (Iannaccone, 1994). The problem of collective action poses great difficulties for rational choice theory, which cannot explain why individuals join many kinds of groups and associations. The problem of social norms, the other aspect of the problem of order, also poses difficulties. Rational choice theories cannot explain the origins of social norms, especially those of altruism, reciprocity, and trust. The problem of social structure is a feature of methodological individualism, rather than rational choice theory per se, but it creates difficulties for the theories considered. Solutions to this problem have been in terms of the unintended consequences of individual action.
In rational choice theories, individuals are seen as motivated by the wants or goals that express their ‘preferences’. They act within specific, given constraints and on the basis of the information that they have about the conditions under which they are acting. At its simplest, the relationship between preferences and constraints can be seen in the purely technical terms of the relationship of a means to an end. As it is not possible for individuals to achieve all of the various things that they want, they must also make choices in relation to both their goals and the means for attaining these goals. Rational choice theories hold that individuals must anticipate the outcomes of alternative courses of action and calculate that which will be best for them. Rational individuals choose the alternative that is likely to give them the greatest satisfaction (Becker, 1976).
This theory is the most fruitful in explaining the tourism policy-making progress in the context of urban in capitalist economies. This is because the theory looks at different aspect like market equilibrium as well as the behaviour aspect of the policy. Though this theory is mainly used in problems of social structure, this can also help in defining policies involving the people. The weakness of this approach lies mainly on the question of why. This mainly deals with people so it tackles human phenomena that can be related to tourism.
The group approach
The group approach is being used even in small industries in many countries. Lack of trained manpower to implement the system can be the reason why some do not have it (Barnes, 1992).
The functions of group experiences in the development of individual personality have been described in various ways. Though there are minor variations in accent, most of the formulations place stress on the same basic elements. Individuals need friendship and comradeship; they need the satisfactions which come from being loved, wanted and accepted by others. To provide opportunities for the growth of intimate friendships is a major function of the group (Trecker, 1948).
Individuals need opportunities to participate in worthwhile collective enterprises where they can take responsibility and feel as though they have a part in achieving a goal outside of themselves. The group is the only means the individual has to realize this wish.
Individuals need avenues of self-expression and situations in which they may be socially creative. Groups provide such opportunities. Status needs, seemingly universal for all, must be met through group association (Hendry, 1941).
The socio-economic approach
The idea of the socio-economic approach is to build a bridge between the scientific and the local knowledge to define what is feasible and which scenario do people want.
The socioeconomic valuation is based on the identification of governance issues and identification of scenarios. It is also based on the constitution of a deliberative forum on the future of the area of interest (Douguet, 2002).
PART 2
Conceptual model framework for evaluating key forms of public sector intervention in tourism development
The Travel and Tourism industry is well on its way to becoming one of the most powerful growth engines in the coming millennium and is anticipated to generate nearly 338 million jobs by the year 2005 with an annual growth rate of 4.8% (Kafkalas et.al, 2002).
Tourism Policies are products of time, technology and needs of people. Secular growth trends in tourism witnessed all over are a result of social factors that boost demand for tourism and development in technology. Demand for tourism is driven mainly by growth. Growing wealth and the rise of a middle class creates that demand. Technology, in turn, makes travel better, easier and hassle-free. Service technology makes leisure an activity which delivers memorable experiences.
Tourism provides opportunity for economic growth, employment generation and poverty alleviation. Tourism holds the key for creation of rural wealth, opportunity for the previously neglected segments of society, artisans and service providers in the backward areas. This sector employs 212 million people world wide, generates .4 trillion in gross output and contributes 5 billion towards government tax revenues. Travel and Tourism is the world’s largest industry. By 2005, the industry is expected to grow to trillion. The industry accounts for 10.7% of the global work force and provides 1 in every 9 jobs. Between the years 1995 and 2000, the industry is adding a new job every 2.5 seconds (Narayan, 2000).
Local government is the most influencing factor concerning tourism decisions in the government areas. The government has shown strong support in the diversity influence, in which may impact in the decision-making in the government local communities. The factors (positive impacts and sense of community) the community needs are provided by the government. Structural influence has the second greatest influence.
The conceptual framework was designed to be able to evaluate key forms of public sector intervention in the development of tourism. Mostly of the tourist spots and other areas are owned privately, but there are also those that are managed by the government. The development of tourism is affected by the government in general since the rules and regulations were imposed by government officials.
The model consisted of the following hypotheses:
The conceptual model for the operation of the framework was initially proposed to be built upon three classes of attributes and the interfaces between and among them. These three classes of attributes are situation, action, and resolution. The interfaces between and among these attributes are public participation, empowerment and multi-sector partnerships.
The Conceptual Framework Model for evaluating the key forms of public sector intervention in tourism development
In the input phase of the conceptual framework, there are two context involved the national and local context. They are both very useful in the tourism industry because concepts are specific and general. The intervention of the government can be local or general. The local and national government should go hand in hand to be able to come up with the best input for the development of tourism.
The process to be done is very critical since it involves several steps that need attention for each. Setting priorities is very essential to be able to determine which of the things to be done will come first. Those that really need attention and are urgent should be done first. The private sector also needed to be enhanced for them to cope up with the government sector and the policies they entail. After the prioritizing and improving, the actual activity implementation shall be done.
Then the output will reflect on the implications of the model to the sustainability of the tourism industry.
Evaluation of the four indicators (partnership, competitiveness, event promotion and place marketing, social policy goal)
Partnership is a relationship between two or more entities wherein each accepts responsibility to contribute a specified, but not necessarily equal, level of effort to the achievement of a common goal. The public and private sectors are contributing their relative strengths to protect and assure the continued operation of critical infrastructures. In civil law countries, partnership is company of two or persons who co-own and manage a business and who are each liable to the full extent of their personal assets for its debts. In common law countries, it is an association of two or more persons who both own and manage a business for profit and who are each liable to the full extent of their personal assets for its debts (Horesh, 2001).
The partnership of the private and government agencies can be a good arrangement for boosting the tourism of a certain country. Since the government gives the policies, it is essential that it also joins forces with the private sector to be able to know their concerns about tourism. The role of the private sector is to help in the implementation of these policies in achieving a common goal of developing tourism. Both parties are responsible for the management of the assets of tourism and promoting them to the people.
Competitiveness is the ability of an entity to operate efficiently and productively in relation to other similar entities. Competitiveness has been used most recently to describe the overall economic performance of a nation, particularly its level of productivity, its ability to export its goods and services, and its maintenance of a high standard of living for its citizens. It is also a measure of the country’s advantage or disadvantage in selling its products in an international market (Horesh, 2001). It determines how successful is one party in offering favorable terms and securing the business. More favorable terms may involve a lower price but with higher quality.
Tourism also promotes the products a certain country has. It showcases the products alongside with the tourist spots found in a specific place. Mostly these products are very unique form one another since most of the products can only found in a definite place, not anywhere else. The competition enters in when the goods and services being offered are of different quality or service. Also some products are so popular that others try to imitate it and sell it in lower prices. The fake products now compete with the original ones, since they really are identical. Same is true with the tourist spots; some also imitate in order to display a place even though not present in that country.
Social policy is used to apply to the policies which the governments use for welfare and social protection. It is also used to describe the ways in which welfare is developed in a society. And lastly, it refers to the academic study of the subject (Horesh, 2001).
In the first sense, social policy is particularly concerned with social services and the welfare state. In the second, it is a broader sense; it stands for a range of issues extending far beyond the actions of the government- the means by which welfare is promoted, and the social and economic conditions which shape the development of the welfare.
The main objective of a social policy is to strengthen international cooperation for social development, in the context of the comprehensive and detailed framework of commitments and policies for the action by governments, intergovernmental and nongovernmental organizations with particular attention to the three core issues of poverty eradication, employment generation and social integration, in contributing to the creation of an international community that enables the building of secure, just, free and harmonious societies offering opportunities and higher standards of living for all.
Social Policy, by targeting specified outcomes would also be more transparent than current policies. As well, social and environmental goals are often more stable than the best ways of achieving them: scientific knowledge and technology, for instance, are always changing, and policies that specify ways of achieving goals can become obsolete overnight by awareness of new scientific relationships. Social Policy, however, would specify only the particular target – not the way of achieving it.
Social Policy therefore could improve the efficiency, transparency and stability with which public and private sector social and environmental goals can be achieved.
Promotion is the most funded aspect. It is lavished and given most of the attention. Companies probably use promotion as a part-time or full time basis. Promotion with guidance and use of proven strategies will result to communication campaigns (White, 2000).
Promotion can be through advertising (TV, radio, prints, Internet). It can also be through PR (Public Relations), through the released writings, case studies and reviews, video news release and speaker programs. It can also be through publicity e.g. charity. The trend of promotion today is through interactive means like e-mail, websites, multimedia, CD-Rom and newsletters. And also events like tradeshow, product launches and sales.
The State Government may decide to focus on tourism promotion and development in a few areas which have good potential for both tourism and investment inflow to take advantage of economies of scale. In this context, some important tourist centers/areas have been identified and an integrated action plan prepared for developing them through public and private investment. Both Central and State Governments will make special efforts for the development of tourism in these areas.
In any social set up the identity of life style is taken for granted hence rarely studied and never catalogued. For promoting tourism that becomes the first critical issue to be tackled because tourism based on the life style & culture as its main product, without institutional measures will destroy it in no time. The challenge lies in mobilizing the local population into enriching their life style with out loosing authenticity and local identity, and allowing participation by external entities.
Media & Promotion like for other products is the key to the success of tourism. The European countries print catalogues providing photographs of great ambiance and accommodation, providing authenticity to the stated life style. In the some country’s context the brochures could also relate the potential tourist to the mystique of cultural richness of the region, opportunity for participation & indulgence in ethnic life style, local tours and other offerings.
Place marketing is also one of the critical issues. Strategic marketing can be applied to places, and the tools of corporate marketing can be transferred to place marketing. Places can also be branded, through creating and communicating a place identity, which increases a place’s attraction (Rainisto, 2003).
The aim of the present studies is to evaluate the most critical success factors in place marketing. Place, or distribution channel, is the method for making your products or services available to the consumer. Place-based, or ambient, advertising reaches prospects wherever they happen to be–preferably in the right environment to be receptive to your message.
SWOT Analysis of the Tourism Industry
Within the last two decades, tourism industry has grown dramatically, in the process overtaking the traditional export sector as the main foreign exchange earner and employment creator. Since countries depend enormously on tourism for its growth and development, analysis if its strength weaknesses, opportunities, and threats on tourism industry is essential. A clear picture of tourism industry will provide information, particularly for the policy-makers that will assist them in making policy decisions regarding the future growth and development of the industry. Development of future plans is also one factor to be considered.
The strengths of the tourism industry depend on the environment; attractive natural diversity is a great asset. The strong private sector can also be a key to the success of the tourism industry. To be able to purchase products of the country, a large domestic market could be a good showcase. Political commitment to tourism development is needed so that the said sector will not be taken for granted. And the most important is the acknowledgement of the private-public sector partnership by the state (APTTDC).
There are also several weaknesses of the tourism industry in general. Limited market segmentation is one. Another is the lack of awareness of the people of the tourist potential in their places. They have been popular to many beautiful places but do not consider it for tourism purposes. And finally, there is lack of awareness about potential of tourism for employment and economic development.
There are so many opportunities offered to the tourism industry. A budding travel and trade market are on the demand side. The supply of vast, untapped potential in heritage, pilgrimage, conventions is at hand, they jut need to be exposed. The energy of the private sector for tourism just needs harnessing.
But there are also threats to the industry. There is competition for existing and future destinations. These are foreseen by many of the guest, and the host will be competing with the others. Tourism investment can become the victim of seasonality factors which threaten several targets. The problem of seasonality is applicable to almost all products in the market, and can affect tourism itself. There is also a threat on the quality of tourism to be outscored by the quantity of tourist spots (APTTDC).
PART 3
Analysis of a Tourism Strategy
(Participative and Responsible Tourism in Andhra Pradesh, India)
Acknowledging the vast potential and spin-off tourism has on other industries, the Government of Andhra Pradesh is focusing on tourism for generating greater employment and achieving higher economic growth.
Tourism destinations have successfully used tourism to encourage other sectors of the economy and to generate new and innovative employment opportunities. In Jamaica, Jamaicans teach tourists to speak Jamaican and dance reggae. Local live entertainment is the norm in most hotels. In Barbados, hair-braiding, one of the most profitable activities takes place in the casual sector (Andhra Pradesh Travel and tourism Development Corporation).
Given its potential for revolving benefits for all, principally people in backward areas, it is required that the kind of tourism to be developed is a participative result. Local house owners offer a paying guest accommodation. The host population provides guides and leisure services such as boating, horse-cart rides and sale of handicrafts. Unless the population sees itself as a success, the value of tourism still remains under-exploited.
One of the strategic moves here is to create participative tourism where local communities participate and gain while transferring unique experience to the visitors. Without this participative idea, tourism will be stagnant and lifeless, distant and elitist, and this is not what the visitors want.
The idea of the responsible tourism on the other hand is that tourism industry has the responsibility to its environment and to develop sustainable tourism. Responsibility of the government to involve the local communities should be considered for the development of useful economic linkages. There should also be a responsibility to empower and endorse the local culture. The host should also e responsible for the visitor’s security and health. Lastly, the host needs to respect the local culture and create a low impact.
The partnership in this sense is tight, since the host country will be in cooperation with the visitors or tourist. It may not be in business partnership, but it is a personal understanding between the two parties. The strategy of participation is very dynamic. There will be interaction between the host and the visitors, while they are enjoying the goods and services offered. It is also an indication of reduce in discrimination of group. This means that whoever the tourist is, there will be equal treatment to them.
This strategy is a good point for events promotion and place marketing. This will set a new trend in the tourism industry and will influence most of them. Promotion will be easy since the strategy involves interaction. The visitors that cam to that place will spread the news that there is good accommodation in the place they have been. The impression that was made cannot be erased and it will be passed to others. Entertainment is one of the best assets of this strategy to attract people to come to Jamaica. This is one factor that will boost the promotion of the place.
In terms of social policy goal, the sense of human welfare and social protection is the concern of the strategy. It is the concept of responsible tourism that brought about the issue of security of the visitors. This is very essential since the people when coming to a new place encounters many undesirable incidences due to the dangers in that certain place. The responsible strategy has the context of having guides and also the responsibility for the security of the guests. This scheme is very important in order for the guest to really enjoy instead of worry.
The indicator of competitiveness is not so apparent in this strategy. This is because every tourism agency can do this type of scheme but still have the same quality of services and goods given. The only thing to be worried about this strategy is the attitude of the visitors towards this approach. Most of the visitors will surely appreciate this but not all. Maybe some of the guest would like to be alone and do not need tour guides.
The strategy in general is excellent. This can be one of the keys to break barriers between the guests and the hosts and also promote the appreciation for responsible tourism. The benefits to be earned is not one way, it is mutual. This will encourage other countries to do the same and develop interactive and responsible tourism.
Conclusion
The assessment of this essay is focused on the tourism industry. It was said that rational choice theory is the best method for explaining the tourism policy-making progress. This is because it considers the aspect of market and behavior aspect of the policy. In the second part, the conceptual model is being formulated and is evaluated by the four aspects; partnership, competitiveness, events promotion, and social policy. The model emphasizes on the partnership of the government and private sector, and also the local and the national context. The third part is an analysis of a tourism strategy in India which proposes responsible and interactive tourism.
Tourism can provide much needed impetus to the tourism activities as well as preservation of cultural resources. Its planning will involve setting up institutions (formal and informal) at grass root level with participatory approach adopted by the state institutions. The training of service providers and creating awareness among the stakeholder population are key factors for its successful implementation. At organization level mechanisms for protecting the interest of service providers, ensuring the quality of services and supervisory body services to avoid unscrupulous elements from exploiting masses, are to be created. Finally a marketing plan to create awareness among the desired segments of tourist is necessary for the success of tourism.
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Andhra Pradesh Travel & Tourism Development Corporation (APTTDC)
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