Stakeholder management in tourism and hospitality

Stakeholder management in touristry and cordial reception2. Structure of the touristry and hospitality constancy and role of stakeholders(Burcu Ozgur, 2008) The stakeholders consumes and demands ar understood and responded to by organizations, ground on the concept of stakeholder management. According to (Svendsen, 1998), the primary(prenominal) role of stakeholder management is to protect the organization from the damaging impacts of the activities of the stakeholder. almost techniques like consultation, issue analysis, strategic intercourses, and formal contracts or agreements should be utilized by the organization. (Huber, Scharioth, Pallas, 2004), explained that organizations strive to pass weewee the trust of the main stakeholders, who suffer a greater influence on them and with whom they have constructive interactions. For e truly organization, financial success is important and they mouldt use any tools at the expense of the environment, members of staff, and /or topical anesthetic communities. This c arless attitude will allow in losses and damages in relationships with the stakeholders. The both substantial variables for the decision on stakeholders by an organization are a) their possibility of scourgeening an organization and, b) their possibility of cooperating with an organization. The two relationship variables are cooperative potential and competitive threat. These two relationship variables reflect the capacity of stakeholders for cooperation and threat in a specific matter facing the organization.(Lim, Ahn, Lee, 2005), stated that companies can adopt four affirmable categories for stakeholder management a) reactive, b) defensive, c) accommodative, and d) proactive. Depending on the stakeholders potential for threat and cooperation, companies decide their postures and strategies for stakeholder management such as a) leading, b) collaborating, c) involving, d) defending, e) educating, and f) monitoring. (Clarkson internali ty for Business Ethics, 1999), developed a list of the essential normals of stakeholder management.The first dogma broad(prenominal)lights the requirement of identifying stakeholders legitimate interests, which will be used in decision making processes by an organization.The second principle refers to the need for communication between the organization and its stakeholders. The engagement with the stakeholder is mandatory to reduce conflicts.The third principle reflects the idea that there could be differences with the involvement of stakeholders in the organization. While the organization may have official relationships with few of stakeholders, some otherwise stakeholders are approached in unofficial ways either through direct contact, press release or advertising.The ordinal principle underlines the significance of balancing risks and rewards among various stakeholders impartially and observes the need of distributing benefits to all parties.The fifth principle highlights t he need for cooperation with public and/or private entities with the sole objective to reduce risks related to corporate practices.The sixth principle relates the aspect of respecting human rights which are threatened by the present and future activities in an organization.The last principle brings the attention of managers to identify their own difference of interests to normalize stakeholder relationships in order to maturation credibility of organization.3. strategic Stakeholder Management Tourisms PerspectiveOne of the important generators of revenue is the Tourism firmament which is likewise a job generating sector and serves as a medium of development. Tourism sector has gained great impressiveness as it generates economic development and prosperity even in places which would not be used as an economic source. The industrys coordinated actions highly fragmented and diverse structure makes it special and successful.The touristry sector could be contemplated as a system. As (Mill Alastair, 2002) mentioned, there are many reasons to view tourism as a system. Some of them areInterdependency in tourism i.e., all organizations in this sector are interrelated parts and work together to achieve common goals.Dynamic and constantly changing characteristics i.e. it be affected by outer influences such as political uncertainty, war, international relations, terrorism, technological developments, epidemics, and assortments in demographic conditions.Complex sector with different types of activities and organizations.Intense competitiveness of tourism i.e. all kinds of tourism organizations have to vie with each other globally.Need for responsiveness. Tourism is a sector where many elements which are fencesitter and any change in one element can cause changes in other parts. Therefore, its important to maintain harmony of all parts. The stakeholder management practices should be utilized to create the harmony and forge strong relationships between the tourism organizations and their stakeholders.4. Environmental trends in the global tourism industry(Dwyer, Deborah, Nina, Carolina, Noel, 2008) Tourism is almost connected to the environment. The two main reasons for find the viability and attractiveness of an area as a tourist finish is the natural environment and climate conditions (Dwyer Kim, 2003). The developments for tourism are base on features such as gaining uncomplicated access for visitors to natural or manmade environments. The concerns of stakeholders of tourism which include investigateers has always centered on the ways tourism development may offer opportunities for managing environmentally sensitive areas and the conservation of unique environments. (United Nations Environment Programme ((UNEP), 2002), describe that the focus is on tourism where it can help in reducing environmental pollution and habitude of resources.The main environmental trends include change of climate, depletion of natural resources and loss of biodiversityChange of ClimateThe increase in release of concentrations of greenhouse gases influences the change of climate and global warming. Climate change is a global item and its vignette effects are felt at the local anesthetic and regional scale. Effects of climate change and warming trends include rise in sea-level, changes to ocean currents, melting of glacial and polar ice, losing of snow cover, high heat index and high diurnal temperatures, and changes to precipitation patterns (IPCC, 2007).Climate changes are influential in determining the destinations preferred by tourists and also on the profitability of the industry through increase in cost of energy use.Policies to lessen emission of greenhouse gas will invariably affect the operator cost and destination competitiveness particularly for longer destinations (Dwyer Forsyth, 2008).Depletion of natural resourceThe increasing paucity of natural resources required to steer industrial development will give rise to a number of effects. The factors affecting the availability of natural resources like fodder production, water and energy, are increase in population and economic development. The result of peaking in oil colour production, commonly known as Peak Oil, will increase the expenses of fogey fuel based energy sources.Peak Oil refers to the maximum rate, i.e. peak of production of world oil to a point beyond which it goes to permanent decline. The decline in production of oil along with increase in demand will result in increase of fuel costs. Consequently, the new carbon saving is set to push the want for energy efficiency and investment in renewable forms of energy. In future, fractional of the worlds population will face shortage of water collectible to scarcity of water resources. The arable trim down and native bush land will diminish extensive agriculture and broad-scale land clearing due to demands for higher food production.Loss of bio diversity (United Nations Environment P rogramme (UNEP), 2003), reported that the main danger to loss of species biodiversity is habitat loss. Loss of biodiversity is expected to substantially affect those destinations that highlight nature based or eco tourism.Analyzing Marketing Opportunities Challenges The Macro-environment(Amy, Eliza, Cynthia, 2009) The major macro-environmental forces recognize and discuss the affect the ability of hospitality industry to commercialise its offerings. All organizations in the hospitality industry function in a constantly changing macro-environment, and so giving prospect for marketers to conduct business or pose threats to the companies. The environmental changes have to be monitored unappealing before marketing strategies are considered by companies. The hospitality marketers must analyze and observe the six major forces (demographic, economic, political/legal, social/cultural, technological and natural/ecological), as shown belowFigure 1 Macro-Environmental ForcesTable 1 Macro- environmental Forces5. Market researchImportance of Psychographic Research(Yvette Felix, 2004) (Wells, 1975), defined Psychographic research as quantitative research think to place consumers on psychological dimensions. According to (Gladwell, 1990), this type of research analyzes consumers attitudes, perceptions, needs, interests, creeds, activities, and daily lifestyle. (Shih, 1986), recognized that Psychographics is very meaningful and relevant and (Abbey, 1979) stated that its very important means to provide additional development beyond the demographic characteristics. Abbey suggested that psychographic variables produce major differences between the groups of consumers, and these differences were bigger than the differences produced by the demographic profiles. (Mayo, 1975), stated that psychographics are useful than demographics in explaining consumers because they differentiate better between them (Ryel Grasse, 1991).The market segmentation has found a rich means in Ps ychographics. (Gladwell, 1990), observed that psychographic characteristics of tourists have to be examined thoroughly by marketer if their destinations need to be marketed successfully to tourist. Psychographic variables are helpful in recognizing various types of tourists, distinguishing their segments and differentiating between the segments (Schewe Calantone, 1978). Psychographic measures provide complete profiles of tourists and give the marketers a clear picture of the tourists they are attracting. Psychographics cannot be independent even though psychographics has a comparative expediency over demographics, (Schewe Calantone, 1978). In order to understand a consumer market better, marketers should use psychographic data along with other criteria such as demographic, geographic, or behaviorist. Psychographic data needs to be incorporated in its research studies of the tourism and hospitality industry to benefit from the knowledge of its customers.The data was collected thro ugh a qualitative research method. Qualitative methods offer varied empirical processes intended to describe and interpret the experiences of participants in a mount specific setting. Data was collected from 30 representatives via semi-structured, in-depth converses. Local residents, governmental, non-governmental and academic stakeholders were considered in order to acquire the opinion locally, regionally and nationally regarding the implementing sustainable tourism development.The concept of sustainable tourism development became important due to fact that local residents are involved in tourism planning and decision-making. (Jackson, 2000). A sampling scheme was arrived at to ensure residents participating were ambassadors of a cross-section of the community. The sampled residents included those who resided in the tourism/non-tourism zone and were promptly/indirectly involved with and/or affected by tourism activities. Many of the interviewed residents and who were involved i n the industry were engaged as local guides or owners of home stay lodging and resorts, or souvenir and food catering shops. In-depth interviews saw participation of 20 local residents. Convenience sampling constituted a technique of non probability that attempts to get a sample of convenient elements which is less expensive and less time-consuming when compared with other sampling techniques (Malhotra, 2004).Governmental institutions had an essential part in sustainable tourism development initiatives. Therefore, they participated in the study and to aid in establishing a swell of other respondents. This was considered the most appropriate method, as the researcher was not well informed about the formal or informal network connections locally (Jennings, 2001). The researcher chose a few respondents involved decision making for the destination i.e. Town Council, Sub-District Administration Organization. Other relevant stakeholders interviewed were the local tourist office, a non-gov ernmental organization and academics. Totally 10 governmental respondents were interviewed. Interview questions related to the sustainable tourism development concept and stakeholders were developed. These questions were directed to five local residents in August 2012. The interviews led to alterations in (1) interview time and how respondents were approached, and (2) the interview questions using simpler and non-technical terminology. Then, in-depth interviews were conducted in September 2012. In order to gain further insights and data, the questions were adequate to(p) ended. The interviews were recorded, transcribed and organized based on the interview questions.