Hospitality and Tourism


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Hospitality & tourism and its management theories, strategic planning, critical evaluation are considered.

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Hospitality and Tourism

  2. 2. Table of contents: Task 1 Contents 1. Assess a range of tools for use in managing a hospitality or tourism project. 2. Critically evaluate the concepts of project management and decision making within a hospitality or tourism context. 2 1. Compare and contrast the challenges posed by different types of hospitality or tourism projects. 2. Use research techniques to identify different project options for hospitality or tourism organisations. 3. Define and justify a hospitality or tourism project. 4. Evaluate different approaches to managing the project within a hospitality or tourism context. 5. Recommend and justify a project management approach. 3 1. Formulate quantifiable and justifiable project aims and objectives. 2. Evaluate the resources and organisational issues and specify requirements associated with the project. 3. Identify the impact of not implementing a project for hospitality or tourism organisation. 4. Formulate a project plan for a hospitality or tourism organisation. 5. Evaluate the risks to a project plan for a hospitality or tourism organisation. 6. Develop quantifiable measures to minimise and control risk during the implementation of a project. 7. Evaluate project performance. SAMPLE | Hospitality and Tourism 2
  3. 3. Introduction Tourism and its definition The definition of tourism as used by the UN and WTO (World Trade Organisation) states that Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes. There are much more opportunities in the tourism industry. When marketing the service side of the hospitality and tourism industries, you need to consider the variables of perishability, intangibility, and changeability. Variables: These are the factors that can cause something to change or vary. Perishability: It is the probability of a product ceasing to exist or becoming unusable within a limited amount of time. Intangibility: It is a state of being abstract, as are things that cannot be touched. Changeability: It is a condition of being subject to change or alteration. History of tourism: The word travel is related to the French word travail, which means “work.” Throughout history, the growth of tourism has relied upon the development of transportation systems to reduce the work involved with travelling. Tourism began as an outgrowth of travel during the Greek and Roman Empires, beginning in the 5th century B.C. The Industrial Revolution of the 1700s led to rail service. In the 1900s, mass production of the automobile and the construction of superhighways made more destinations accessible to more travellers. The Wright brothers’ experiment with the first airplane launched today’s modern air-travel system. Hospitality and its definition The word hospitality is derived from the Latin word ‘hospes’, meaning “guest, visitor, or one who provides lodging for a guest or visitor.” SAMPLE | Hospitality and Tourism 3
  4. 4. The Oxford English dictionary defines hospitality as, “The act or practise of being hospitable, the reception and entertainment of guests, visitors or strangers”. According to Lashley the Joint Hospitality industry Congress defines hospitality as, “The provision of food, drink and accommodation on a way from home”. Brotherton and Wood (2000) offer a definition of hospitality as ‘A contemporaneous human exchange, which is voluntarily entered into, and designed to enhance the mutual well being of the parties concerned through the provision of accommodation, and/or food, and/or drink’. We can also define hospitality as private and commercial hospitality where private is defined as the acts by individuals towards individuals in a private setting such as home and commercial hospitality is defined as meals, beverages, lodging and entertainment provided for profit. Economically we should be looking at commercial definition. Basically hospitality industry is a group of businesses composed of establishments related to lodging and food-service management. The hospitality industry includes hotels, motels, inns, and bed-and-breakfasts (B&Bs). The concept of hospitality lies in the three domains of the social, the private and the commercial environments. History of Hospitality: The first fixed-price menus for food appeared in a type of tavern called an ordinary. By the end of the 13th century, the horse-drawn coach led to the development of wayside inns known as post houses. The word restaurant comes from the Latin word restaurateur, which means “to restore.” Because of the French Revolution in the late 1700s, many chefs of the French nobility were settling throughout Europe. By the 1800s, numerous fine eating-and-drinking establishments were operating globally. TASK 1: Critically evaluate the theories, concepts and tools relating to a project management and decision making for a hospitality or tourism organisation SAMPLE | Hospitality and Tourism 4
  5. 5. Some management theories Several theories are given for effectively managing the hospitality and tourism organisations. These theories if used properly will definitely contribute for the effective management of these organisations. According to management theory, manager is the central element of management. Manager is Man + Ager, which helps subordinate’s abilities to mature or causes employees to grow old earlier. According to A. H. Maslow, every managing organisation has some needs like primary needs and secondary needs. The primary needs are innate or basic whereas secondary needs are those needs which seem to exist because people live in a society composed of other people. There are other different types of needs also. These are 1. Self actualization: It covers personal fulfilment of approximately 10%. It also covers the needs for the realization of individual potential, the liberation of creative talents, the widest possible use of abilities and aptitudes. In other words we can say it as personal fulfilment. 2. EGO: It is self esteem and these are the needs for reputation, self respect and self esteem. People need respect recognition and status. 3. Social: Social needs covers love and affection. These are the needs people need to have for gregariousness and social interaction. People like to group together for many purposes of life. They need to associate, to belong, to accept and be accepted, to love and be loved. 4. Safety: This need covers the security aspects. These are the needs to be free from fear of deprivation, danger and threat, on and off the job. 5. Physiological: These are the needs for food, water, air, shelter, rest, exercise and other required to satisfy the biological demands of the human organism. Tools relating to a project management and decision making for a hospitality or tourism organisation SAMPLE | Hospitality and Tourism 5
  6. 6. There are several tools used relating to a project management and decision making for a hospitality or tourism organisation. Some of these are listed below: 1. Benchmarking 2. Strategic planning 3. Mission and vision statements 4. Customer relationship management 5. Outsourcing 6. Balanced scoreboard 7. Customer segmentation 8. Business process reengineering 9. Core competencies 10. Mergers and acquisitions The hospitality industry uses elements from traditional management theory as well as best practices based on industry-specific experience. Current trends focus on practices that simultaneously benefit multiple aspects of a business, such as those promoting employee productivity and improved quality and branding. Many best practices in hospitality reflect broader social and economic trends and seek to reduce the way in which hotels are considered interchangeable by consumers. Customer just needs a hygienic and beautiful location and environment and a good tourism spot where he or she could find his or her spent money justifiable. SAMPLE | Hospitality and Tourism 6
  7. 7. Following are some of the theories and concepts for hospitality or tourism organisation. Unique Selling Elements: The theory of "unique selling elements" analyzes how to make your hotel or restaurant stand out from the crowd. Each hotel should identify three unique selling elements and use them as a cornerstone of marketing efforts. These should be distinguishing features such as famous guests, special items such as fresh fruit bowls or freshly baked cookies for guests, superlatives such as "biggest" or "smallest" or "best," or unusual elements such as pet goldfish in every room. Company Culture: Organizational culture creates the preconditions for successful hospitality management. Best practices for creating a productive corporate culture include fostering the "C's" -- communication, coaching, collegiality, cooperation and compromise. These encourage employees to be creative, focused and committed. Green Initiatives: Hospitality industry leaders use green initiatives to save money, create goodwill and create positive guest experiences. Green cleaning products can cost less than SAMPLE | Hospitality and Tourism 7
  8. 8. traditional ones, improve the way a room smells, and avoid triggering allergies and chemical sensitivities in employees and guests. Green appliances reduce energy use, and green materials appeal to the tastes and preferences of affluent customers. Hans Magnus Enzensberger’s theory of tourism: This theory is a provocative attempt to understand and theorize tourism as an important manifestation of modern culture. Mass tourism is still propelled by romantic notions of the far away, the pristine and the untouched and by the desire to escape a social reality that is increasingly experienced as confining and suffocating. Paradoxically, this desire falls victim to its own inherent dialectics: the yearning to be free from society becomes harnessed by the very society it seeks to escape; the search for the authentic inevitably leads to destruction. Task 1.1: Assess a range of tools for use in managing a hospitality or tourism project The information that could be used for immediate development or adaptation of situation analysis and needs assessment tools to be used by industry operators in 1. Analyzing the current situation in their operations; 2. Identifying the gap in performance that training might reduce; and 3. Identifying their training needs. • For Situational Analysis: 1. Strategic Planning 2. Vision And Planning • For product development and innovation 1. Product Development: The Way of the Future 2. Innovating for Success: the Four Ds of Innovation - a non-interactive tool/process including four steps (define, design, develop and deploy). • For market and market development SAMPLE | Hospitality and Tourism 8
  9. 9. 1. Your Small-Business Marketing Tool - a partly interactive tool which includes  brainstorming (process)  plan framework (tool)  priority action (interactive tool)  marketing agenda (tool) • For Organizational Analysis 1. Strategic Planning 2. Marketing 3. Human Resources 4. Operations 5. Finance and Accounting 6. Information Management • For Human Resources Needs Analysis 1. human resources diagnostic (surplus / gaps) 2. recruitment 3. employee orientation 4. employee communication 5. performance appraisal 6. job definition 7. training and development 8. compensation and benefits 9. employee relations 10. health and safety SAMPLE | Hospitality and Tourism 9
  10. 10. Task 1.2: Critically evaluate the concepts of project management and decision making within a hospitality or tourism context. The concept of project management in tourism is that it minimizes the costs and maximizes the benefits of tourism for natural environments and local communities, and can be carried out indefinitely without harming the resources on which it depends. Tourism is one of the largest global industries, with much of the growing market focused around pristine natural environments such as coastal and marine protected areas. MPAs are increasingly attracting interest from foreign visitors, as well as local residents. Tourism can benefit local communities and MPAs through revenue generation and employment. However, tourism can also threaten MPA resources by destroying habitat, disturbing wildlife, impacting water quality, and threaten communities by over-development, crowding, and disruption of local culture. The global tourism industry is becoming increasingly competitive and sophisticated and as such the tourism practitioner needs to acquire new and different skills to set so that their organisation could respond quickly and knowledgeably to the rapidly changing external environment. Planning, developing, implementing, evaluating and monitoring tourism policies and actions require both a sound knowledge of the constituent parts of tourism and effective project management skills. Total quality management, information management and management by the objectives: In most small and medium size companies, focus is on getting things done, hands-on to satisfy the customer, realizing profits and growing the business. Often less focus is given to the Business Management System also because these SME’s usually started out as micro companies and have been growing fast over time. The QMS is offering an excellent business structure about how things should be done, how registration should take place, what the requirements are for your documentation and records, and how to realize continual improvement. Adopting such a QMS in your company will streamline the management processes and will eventually pay back the time and effort you have put in it to get it started. The figure shown below tells us how these tools are used. SAMPLE | Hospitality and Tourism 10
  11. 11. Task 2: Define a specific project for a hospitality and tourism organisation Task 2.1: Compare and contrast the challenges posed by different types of hospitality or tourism projects. The impact of the financial and economic crisis on the HCT(Hospitality Catering and Tourism) industry: 1. The effects of the global recession: The sector is more or less affected by the current economic conditions of developed and emerging countries. In the second half of 2008, a decline in international tourism began and intensified in 2009 after several consecutive years of growth. A sharp decline in tourist flows, length of stay, tourist spending and increased restrictions on business travel expenses led to a significant contraction of HCT economic activity worldwide. These effects resulted from increased unemployment, SAMPLE | Hospitality and Tourism 11
  12. 12. market volatility, economic and social insecurity, and a significant decline in the average household income. SAMPLE | Hospitality and Tourism 12
  13. 13. 2. Employment impact and recovery The crisis had a significant, regionally distinctive impact on global employment in hotels and restaurants. On a global level, employment grew by about 1 per cent between 2008 and 2009. The Americas faced a major downturn of employment throughout the crisis period. By contrast, the most resilient region appears to be Asia and the Pacific. Its positive development in employment terms seems to have led to an increase in employment at the global level between 2008 and 2009. During the first quarter of 2010, employment increased by 1.9 per cent globally, though distinctive regional effects were still evident. Compared to the same quarter in 2009, employment levels rose by 5.4 per cent in Asia and the Pacific and 2.7 per cent in Europe. Employment levels declined, however, in the Americas by 0.8 per cent during the same period. SAMPLE | Hospitality and Tourism 13
  14. 14. The high employment rates in Asia and the Pacific and recent European employment increases are likely to have resulted from temporary, casual, seasonal or part-time contracts and from increases in domestic and regional tourism. Although it varies from one location to another, within OECD‘s sub regions, the tourism sector has been severely affected by the global economic crisis and associated fluctuations in exchange rates. In terms of international tourist arrivals and employment, there are dissimilarities between countries (i.e. important declines of 2 per cent and over were registered in Czech Republic, Iceland, Ireland, Japan, Netherlands and New Zealand and while significant increases of 2 per cent or more were reported in Finland, Germany, Italy, Mexico, Portugal, Slovakia, Sweden and Switzerland). There is an obvious gap between employed men and women that could be due to typically high levels of female part-time, temporary, casual and seasonal occupations in the sector, especially in times of recession. The significant employment increase in Asia and the Pacific may also be explained due to a rapid increase of female employment. The average employment rate of women increased from 4,751,000 to 5,197,900 between 2008 and 2009, while male employment grew from 3,127,600 to 3,282,700 during the same period. Although this trend has been observed, research should be conducted to determine the quality of work, contracts and worker employment status within these workplaces. SAMPLE | Hospitality and Tourism 14
  15. 15. Task 2.2: Use research techniques to identify different project options for hospitality or tourism organisations For tourism research must encompass the impacts of tourist activities on staff and destinations and consider how the complex structure of the industry mediates both tourist satisfaction and destination impacts. In relation to hospitality, the scale is smaller and the staff who serve them in the context of particular models for each hotel or restaurant. In many instances, investigation of a research question and particularly attempts to develop theory may require a research design that examines aspects of both the tourism and hospitality rather than attempting to make fundamental distinctions between these subsectors. Top-Down Management: There are numerous cases where tourism programmes formulated at the top and implemented by people at the bottom have not achieved the desired outcomes. One reason for this consequence is that the formulation and application of policies by central government is out of touch with the needs of local people and is not based on detailed knowledge of the local environment. Ambiguous Institutional Arrangements: The tourism policy process takes place within a certain institutionalised context and tourism programmes have little chance of success, unless this context is considered and arranged carefully. Uneven Distribution of Power and Responsibilities: The extent to which power is distributed equally or it is concentrated in a relatively small group of organisations that dominate decision processes can be an important influence on plan success or failure. Task 2.3: Define and justify a hospitality or tourism project. Tourism is defined as a composite of activities, services, and industries that delivers a travel experience to individuals and groups traveling fifty miles or more from their homes for purposes of pleasure. The business sectors comprising the tourism industry include: transportation, accommodations, eating and drinking establishments, shops, entertainment venues, activity facilities, and a variety of hospitality service providers who cater to individuals or groups SAMPLE | Hospitality and Tourism 15
  16. 16. travelling away from home. Tourism product is not produced by a single business, non-profit organization, or governmental agency; rather, it is defined as “a satisfying visitor experience.” This definition encompasses every activity and experience that a tourist encounters during his or her entire trip away from home. SAMPLE | Hospitality and Tourism 16
  17. 17. Task 3: Develop a project plan Sustainable tourism and hospitality development meets the needs of present tourists and host regions while protecting and enhancing opportunities for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems. For sustainable tourism and hospitality management, several plans and principles need to be carried out. Sustainable development needs to address economic, social and environmental issues. Many businesses now include social and environmental factors as part of their performance measurement. Sometimes referred to as ‘triple bottom line’ measurement and reporting, this approach focuses on accountability, transparency, commitment to stakeholder and community engagement and systematic measurement and reporting. These plans, principles, guidelines and case studies illustrate success factors in tourism at natural and cultural heritage places. The principles from Successful Tourism at Heritage Places are listed below: 1. Recognise the importance of heritage places 2. Look after heritage places 3. Develop mutually beneficial partnerships 4. Incorporate heritage issues into business planning 5. Invest in people and place 6. Market and promote products responsibly 7. Provide high-quality visitor experiences 8. Respect Indigenous rights and obligations. Task 3.1: Formulate quantifiable and justifiable project aims and objectives. 1. To promote healthy relationship among individuals who are actively engaged in tourism related business through useful interaction, organising regular meetings and cultural and social activities. SAMPLE | Hospitality and Tourism 17
  18. 18. 2. To set up educational institutions and other institutions which create an environment for offering various courses in tourism and get affiliation/approval from University/Universities or other institutions for conducting such courses. 3. To institute awards, prizes and gifts for encouraging tourism. 4. To promote and improve the standard and quality of tourist movement in India. 5. To reward and recognise, persons and organisations working in the field of tourism. 6. To provide medical insurance and other welfare schemes to tourism related persons. 7. To collaborate with tourism related industries like hotels for mutual benefit. 8. To establish a printing and publishing house or otherwise bring out periodicals, magazines and books. 9. To engage in charitable and social service activities of every kind to help the poor, needy, aged, ill, backward and weaker sections of the general public without discrimination of religion, caste, creed or sex. 10. To purchase, construct, take on lease or otherwise acquire land, building and other movable and immovable properties and to sell, lease, mortgage or hypothecate or otherwise dispose of all or any of the property and assets of the society on such terms and conditions as the society may deem fit for attaining the objects. 11. To accept donations in cash or in kind, grants and collect subscriptions, fees and other charges for the services rendered by the society and take and raise funds by way of loans or otherwise and the receipts shall be solely utilised and applied towards the promotion of aim and objectives of the society. 12. To do all other lawful acts, as are necessary for and/or incidental to the attainment of the aims and objectives of the society. Task 3.2: Evaluate the resources and organisational issues and specify requirements associated with the project. The aims of the Tourism Development Programme are as follows: 1. To assess recent changes in the tourism sector; SAMPLE | Hospitality and Tourism 18
  19. 19. 2. To elaborate a further tourism development policy and means for its implementation which would encourage development of the tourism sector; 3. To establish priorities for state aids, investment promotion and investment priorities; 4. To enhance the scope of local and foreign tourism; 5. To table means for forming a good image and popularising tourism. Requirements: General preconditions: There exist favourable conditions for tourism and its development which are • favourable geographical location • plenitude of tourism resources • interest shared by miscellaneous ethnical groups • currently revived relations • improvement of general and international tourism image • abundant neighbouring tourism markets • interest in Lithuania as a new region for tourism. Major social-economical preconditions for tourism development • sustainable macroeconomic situation and economic growth • increased foreign investments • privatisation process • increased scope of foreign trade and international relations • enhanced standard of living and purchasing capacity • use of existing and new manufacturing capacities, employment and creation of new jobs Legal preconditions: The field of tourism is directly regulated by the Law on Tourism. In the Law there are defined means of state tourism policy and planning, namely National Tourism Development Programme and regional projects. The state commits itself to do the following for the promotion of tourism: to create favourable conditions in the procedure of issuing visas as SAMPLE | Hospitality and Tourism 19
  20. 20. well as for proper functioning of border check points and customs offices for the local and foreign travellers; to form tax policy favourable for foreign tourism and for tourism business in general; to establish tourism information system and country’s tourism image, properly regulate the use and protection of tourism resources. Domestic and foreign tourism defined in the Law as state priority is designated as an export service. Task 3.3: Identify the impact of not implementing a project for hospitality or tourism organisation. The major impact of not implementing a project for hospitality or tourism organisation may lead to financial crisis in its worst cases. It helps a lot in improving the economical condition of a country. Tourism's role in the economy is often perceived as being limited to the hospitality industry and outbound and inbound travel agencies and carriers, which form the leading service sector in many countries. However, the economic impact of tourism is much greater, since many inputs are needed in order to produce tourism and leisure services, spanning the whole range of farm, agrifood and industrial production, including the production of capital goods as well as construction and public works. Task 3.4: Formulate a project plan for a hospitality or tourism organisation. SAMPLE | Hospitality and Tourism 20
  21. 21. All these step will help us as shown in the two photos shown below: SAMPLE | Hospitality and Tourism 21
  22. 22. SAMPLE | Hospitality and Tourism 22
  23. 23. Step 1: What are your aims? A clearly defined aim will guide the work ahead. It can be as simple as you like and can be worded many different ways such as in a vision statement, mission statement or statement of purpose. Invest a little time in making sure this statement is tight, clear and achievable. Step 2: Who is, could be or needs to be involved? SAMPLE | Hospitality and Tourism 23
  24. 24. It is important to find out who is concerned about and responsible for tourism, environment and heritage issues relating to your place or region. If you systematically and strategically identify and involve those with a stake in your place, region or tourism product, you will: • ensure the right people are involved in planning and future activities • help determine heritage significance of places involved • help make sure all the important issues are considered • help to decide what future actions are realistic and will best meet everyone’s needs and • help build support for regional plans, management plans and development proposals. Step 3: What is known? This step will help you to: • identify existing studies or sources of information relevant to your process or project • locate and summarise available information on the current and potential market for tourism • determine the heritage assets, their heritage values and themes Environment and heritage information: A useful starting place for environment and heritage information is through the internet at sites such as the Australian Heritage Directory ( The websites of the Australian Government Department of the Environment and Heritage, and state environment, park and heritage agencies are also useful. Tourism data: The websites of the Australian Tourist Commission and state tourism organisations may be helpful. If you prefer, you can contact these organisations directly and other bodies such as regional tourism organisations, local tourist information centres and research authorities such as the Cooperative Research Centre (CRC) for Sustainable Tourism. Step 4: What makes this region, place or product special? This step will help you to: SAMPLE | Hospitality and Tourism 24
  25. 25. • identify what is special about your region, place or product • establish how well its special values are recognised and currently communicated • establish whether further potential exists to use these special values in tourism and interpretation In this step you need to identify the important values of your place, region or product, and the ways in which they are understood and communicated. Places can be special for all kinds of reasons — they may be important to the local community or to the world as a whole. Tourism, heritage and local community interests will benefit from developing a common understanding of what is significant so that they have a unified approach to presenting local and regional heritage to visitors. Identifying natural and cultural heritage values: Natural and cultural heritage places are often the key assets for tourism. The unique qualities of a place, or its values, can be a large part of a tourism business and its key selling points. Step 5: What are the issues? This step is about identifying all the important issues or factors that might affect what happens in the future. This means talking to people and looking at the information you have collected to date. Tease out the important matters that are unresolved or that will impact on your place, region or tourism product. Following points must be considered: • issues are not always problems — they can be worked on and with • identify conflicts in perspectives or issues — flag these for further clarification and analysis so that you can find ways to address them later • focus on the issues and not the people raising them • if people have identified issues, make sure these are considered through the next steps. People’s views need to be reflected in the process and individuals should also be able to see their input • in identifying issues, you may come across some which require expert advice or further investigation. This could include professional assessments of the condition of places, SAMPLE | Hospitality and Tourism 25
  26. 26. market potential, and visitor management and interpretation. Obtaining professional advice or digging out extra information may help to build a sturdier foundation for planning future work, forecasting budgets and preparing for any necessary approvals • a thorough knowledge of issues will also help you to develop performance measures and monitoring indicators as you address the issues over time. Step 6: Analysing the issues Now that the issues have emerged from the last step, you may need to delve further to clarify what is going on. Important issues need to be fully understood if the right decision is to be made about a particular course of action. Concentrate your efforts on analysing priority issues. If resources are limited you may need to make a judgement based on available information and analysis. Analysis may simply be a matter of presenting a reasoned judgement about an issue with justification of how you came to that position and citing what data or information supports this. More sophisticated analysis may help you to make better business and management decisions, but this can also be time-consuming and costly, so compromises may have to be made. In any case you should clearly state how you have reached your current understanding of the situation. Step 7: Principles or objectives to guide action These principles or objectives, need to deal with the realities of tourism while maintaining and protecting what is special about the area’s natural and cultural heritage. It is very important that principles or objectives are agreed by key stakeholders and that they have a high level of ownership. Implementation of the principles works best when people feel they have played an important part in their development. Step 8: What are your ideas and options? It’s likely that you will have many different options and pathways to your final goal or goals. If you are working in a region or community, you may need to consider many possibilities before SAMPLE | Hospitality and Tourism 26
  27. 27. making a final decision. In planning for tourism the feasibility of one or more options may need to be tested and presented before funding or approvals are granted. Step 9: How you do it? Making new projects or ideas happen may involve many stakeholders, organisations and groups. Even if implementation is the responsibility of one organisation or business, you will probably need to gain the support or approval of others. Whatever your situation, a clear implementation plan is essential. This not only makes sound business sense but is standard practice in project management. This plan can also be called an action plan or a work plan. Step 10: Statement of directions If you are using this process to run a meeting or series of meetings, or a major project, this step comes at the end so that all the people involved can see what they have achieved and can be clear about the outcomes. There may also be other creative ways to present your outcomes through images or other forms of communication. Whatever case, you will find this summary very useful for briefing colleagues, superiors and for including in newsletters, electronic information or media materials. Task 3.5: Evaluate the risks to a project plan for a hospitality or tourism organisation. Following are some of the risks: • Atmospheric 1. Cyclones 2. Tornadoes 3. Storms 4. Floods 5. Frosts SAMPLE | Hospitality and Tourism 27
  28. 28. • Earth or geological risks 1. Earthquakes 2. Tsunamis 3. Landslides 4. Volcanoes 5. Erosion • Biologic 1. Human epidemics 2. Plant epidemics 3. Animal epidemics 4. Plagues 5. Fires • Human 1. Industrial accidents 2. Traffic accidents 3. Crime 4. Terrorism 5. Economic 6. Political conflict Task 3.6: Develop quantifiable measures to minimise and control risk during the implementation of a project. Following are some of the measures to minimise and control risk during the implementation of a project: Seasonality of tourism: SAMPLE | Hospitality and Tourism 28
  29. 29. • Load of tourists as an absolute number during different seasons • Load of tourism in relation to seasons with higher exposure to natural hazards Composition of the tourism load: • Nationalities • Age groups with special needs (children, old people, families) • People with disabilities • Tourists with specific interests and capacities Distribution of the tourism load: • Landmarks • Pilgrimages • Restaurants and other entertainment places • Open areas (including beaches) • Other places with high visitation Task 3.7: Evaluate the project performance 1. The project has significant potential as a driver for growth for the world economy: The tourism economy represents 5 per cent of world Gross Domestic Product (GDP), while it contributes to about 8 per cent of total employment 2. The development of project is accompanied by significant challenges: The rapid growth in both international and domestic travel, the trends to travel farther and over shorter periods of time, and the preference given to energy-intensive transportation are increasing the non-renewable energy dependency of tourism, resulting in the sector’s contribution of 5 per cent to global greenhouse gas (GHG) emissions, which is expected to grow substantially under a business–as-usual (BAU) scenario. 3. The project has the potential to create new, green jobs: Travel and tourism are humanresource intensive, employing directly and indirectly 8 per cent of the global workforce. SAMPLE | Hospitality and Tourism 29
  30. 30. It is estimated that one job in the core tourism industry creates about one and a half additional or indirect jobs in the tourism related economy. Conclusion: Five key dimensions of hospitality organisation as a commercial experience are identified; the host-guest relationship, generosity, theatre and performance, lots of little surprises and safety and security. To conclude, hospitality businesses must focus on the guest experience and stage memorable experiences that stimulate all five senses. They must behave like hosts taking responsibility for the experience and creating lots of little surprises. They must appoint and develop their staff as performers and the cast in the experience. They must create a feeling of generosity, avoid parsimony, and not allow financial and operational control procedures to dominate the guest experience. Hospitality organisations that are able to capture this sense of theatre and generosity will gain competitive advantage by providing their guests with experiences that are personal, memorable and add value to their lives. SAMPLE | Hospitality and Tourism 30
  31. 31. References: 1. Aitchison, C. 1999. New cultural geographies: the spatiality of leisure, gender and sexuality. Leisure Studies 18(1):19–39. 2. Ateljevic, I. 2000. Circuits of tourism: stepping beyond a production–consumption dichotomy. Tourism Geographies 2(4): 369–88. 3. Chang, T. C., Milne, S. and Fallon, D. 1996. Urban heritage tourism: exploring the global–local nexus. Annals of Tourism Research 29(2): 1–19. 4. Featherstone, M. 1987. Lifestyle and consumer culture. Theory, Culture and Society 4: 55–70. 5. Burgess, J. 1990. The production and consumption of environmental meanings in the mass media: a research agenda for the 1990s. Transactions of the Institute of British Geographers 15(1): 139–61. 6. Hirst, P. and Zeitlin, J. 1991. Flexible specialisation versus post–Fordism: theory, evidence and policy implications. Economy and Society 20(1): 1–56. 7. Asia-Pacific Economic Cooperation. (2003a). About APEC. [Online] Available at:, accessed 30 June 2003. 8. Inocon Group. (2003). Crisis Management. Workshop Materials. Brisbane, Queensland, 3 July. International Strategy for Disaster Reduction. (2002). Living with Risk. A Global Review of Disaster Reduction Initiatives. Geneva: ISDR (CD Rom, preliminary version July). 9. Quality Control Handbook, J.M. Juran, McGraw-Hill Publishing Co. New York 1999 10. Guide to Quality Control, Kaoru Ishikawa, Asian Productivity Organisation, Tokyo 1982 SAMPLE | Hospitality and Tourism 31