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SUSTAINABLE TOURISM & FUNCTIONAL MANAGEMENT

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Nadiah Amiruddin

on 18 November 2013

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Transcript of SUSTAINABLE TOURISM & FUNCTIONAL MANAGEMENT

SUSTAINABLE TOURISM & FUNCTIONAL MANAGEMENT
Human Resource
Operations Management
"concerned with day-to-day management of hotel or attraction. It's about managing the organization's resources, include staff and physical equipment in order to provide satisfactory service for the customer & an acceptable of return on use of these resources. Main goal is smooth and efficient operation.
Financial Management
Marketing Management
ENVIRONMENTAL EFFECTS
ENVIRONMENTAL AUDIT
Provide a measure of the environmental performance of a company as regards management procedure, resource issues, waste production and ways which this performance can improved
10 Rs
RECOGNITION
refuse

Reduce
REPLACE
re-use
recycle
RE-ENGINEER
retrain
Reward
re-educate
R
E
C
O
G
N
I
T
I
O
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Before an action, must recognize nature of issue, problems and opportunity of environmental impact
REFUSE
WHEN THEY ARE RECOGNIZED THE ACTIVITIES ARE GOING TO DAMAGED THE ENVIRONMENT, THEY REFUSE TO INVOLVED
REDUCE
reduce current level of usage,
example : control
portion on food menu to avoid food wastage
REPLACE

change the products or produce the environmentally friendly
R
E
-
U
S
E
D
re-used materials whenever possible,
example : cotton laundry bag in hotels
R
E
C
Y
C
L
E
recycle being used where re-used are not an option
RE-ENGINEER

make a changes in traditional corporate organizations strategies and operations to reduce cost and achieve growth for more competitive advantages.

example : rather than use Check out counter at hotel, it much easier use Check out kiosk
R
E
T
R
A
I
N
Retrain staff to be more environmentally friendly manner and help educate tourist
Do reward staff
who perform well in
relation to
environmental
practices
REWARD
RE EDUCATE
Do educate the tourist
so that tourist would changes their behavior
PURCHASING POLICIES
KEY ELEMENTS
:
1.
Supplied should be sourced locally
;
advantages
:
maximize economic benefits for local community
reduce needs of transport & energy consumption
Providing most environmentally friendly products available
example ; Cleansing materials
Only buying goods from supplier which operate environmental
management systems
WELCOMING CUSTOMERS WITH SPECIAL NEEDS
Wheelchair = Ramp access
Hearing difficulties = training staff with some sign language
Impaired sights = displays make use of sense like touch and sense


GOOD neighbors
EXAMPLE

hotel should encourages guest who left discos at late of night be quite
free tickets to local people as good will gesture
The SAFETY of staff
&
customers
Hotel
; Fire safety, swimming pool safety
Tour operation
; make customer aware of potential risk in some destination such as health & crime problems

FINANCIAL MANAGEMENT ISSUES IN SUSTAINABLE TOURISM
Investment Appraisal
ethical investment & tourism project
SHORT TERM BUDGETING
Cost reduction & sustainability
PUBLIC SPENDING CUTS, PRIVATIZATION AND SUSTAINABLE TOURISM

OPTIMIZING THE USE OF RESOURCES
Many capital projects in tourism viewed by potential investors as relatively high risk in relation to residential property

THIS IS BECAUSE ;
Tourism development are highly specialized and inflexible and cannot easily be adapted for new uses. For example, convert most theme parks to a new use
There have been a number of well publicized ‘failures’ in the attraction sector. For example, Windsor Safari Park in UK

The market is seen to be volatile and fickle with ever shortening life cycle

For these reason investors in tourism projects tend to want to get their money back very quickly to balance the risk and forces organization to behave in non-sustainable ways

Tourism projects have increasingly been seen as attractive investment opportunities by organizations whose ethical belief are highly questionable

It is assumed that organized crime syndicates in the USA have invested heavily in hotels in resort like Las Vegas, where gambling is the main attraction

There can be controversies over investment in tourism in foreign countries by entrepreneurs from country which are seem as undesirable by the international community. For example in 1998 there was controversy over alleged Libyan investment

Nevertheless, sustainability must be about ethical investment in new tourism projects

The short-term financial objectives of an organization have to be met within 1-year period
OBJECTIVE ;

profit maximization
Breakeven
OPERATING WITHIN A LEVEL OF SUBSIDY
The fact that these objectives have to met every year, might go against the fundamental principle of sustainable tourism which is about taking a longer-term perspective
In service industry, cost reduction usually mean cutting staff, reducing salaries, or increasing productivity by making people work harder.


Any cost reduction can cause employees lose their jobs or reduce the multiplier effect of the organization in the local economy.


Reduce the quality experience for the tourists themselves as staff become demoralized and less enthusiastic about their jobs.
Cost reduction means trying to extract lower prices from suppliers to sustain their enterprises.

Cost reduction can provide a commercial motivation for tourism organization to take action to make their operation more sustainable

;
THIS INCLUDE
Increase recycling to reduce wastage
initiative to reduce consumption of water & energy
reducing mileage allowances
Two major trends in the public sector have negative implications for sustainable tourism, as follows:

The desire of central & local government to reduce public expenditure has led them to making cuts in the budget of a range of public sector agencies.
this trend make it more difficult for these organizations to compete in the market
The trends towards privatizations & regulations is leading to public sector agencies either being transferred into the private sector
the needs for organizations to behave more commercially
Most physical developments in tourism have high fixed costs, which mean that if the facility is unused or under-used at any time costs are still incurred.


It could be argued that sustainable tourism also means optimizing the utilization of tourism facilities and reducing the times when they are unused or under-used.


This clearly means deal with the issue of seasonality and variations in demand, so as to make the best possible use of the staff and the premises. i.e.
pg 248

Such attraction realizing this and using the attraction for special events in the off-peak season.

A range of events were attracted to fill this role including:

Using the hard-surfaced otherwise under-used car park for caravan rallies.
Boat rallies using the canal that runs through the site
Charity evenings
The use of the attraction’s own acting company to put on evening performance.




Many hotels seek to optimize use of their resources by using themed weekend breaks to bring in business.

Optimizing the use of their resources can helps the staff by guaranteeing them permanent all-year-round jobs.

However, some would argue that off-peak closure is more sustainable because it allows the destination to ‘recover’ from tourism.

THE IMPORTANT OF HUMAN RESOURCES
The capabilities of operative staff in the hotel and the catering establishment where the tourist eat
The skill and knowledge of tour guides at historic sites.
HUMAN RESOURCES
&
SUSTAINABLE TOURISM
Tourism can only exist if the individual can attract and retain an adequate supply of good quality staff, in other words if there is a sustainable workforce.
The way in which staff are treated by both managers and tourists given the sustainability is about social equality and justice

HUMAN RESOURCES MANAGEMENT CHALLENGES TOURISM
equal opportunities and sustainable tourism ( sex and race discrimination)
Pay and working conditions ( Low hourly rate of pay)

Seasonality and casual labor ( filled either by local young people or in-migrant labor)

Management styles (high staff turnover, unplanned recruitment)
Training and personal development ( in difficult economic times, training tends to be the first areas to be cut)
Staff and tourist relations ( Tourist often show a little respects towards staff)
Job satisfaction ( do the standardize job)
High turnover and sustainability ( take jobs in the sector on a short- term basis until a better opportunity arises)


POSITIVE dimension of tourism employment
Creates large numbers of jobs at a relatively low cost.
Provides opportunities for dynamic young people to develop interesting careers
Involve high levels of contact between customers and staff and provides opportunities for staff to meet people from many different country.
GLOBALIZATION, MULTINATIONAL CORPORATIONS,HUMAN RESOURCES AND SUSTAINABILITY
Many of the multinational corporation such as McDonald have grown through standardized products and selling them in a highly regimented environment. this restricts the opportunity for local staff to develop products and service delivery processes which reflect local cultural differences.
Multinational corporations feel free to use labor from anywhere in the world and tend to employ those who will work for the lowest salary.


TOWARD MORE SUSTAINABLE HUMAN RESOURCE MANAGEMENT ( Baum, 1995)
Human resources management in tourism should have a strong moral dimension, where pay and conditions are improved.
Employers must accept a sense of responsibility towards the local community and the people who live within it.
Organizations should see their employees as an asset and should have faith in the
ability of their staff.
THE POTENTIAL ROLE OF MARKETING TECHNIQUES IN SUSTAINABLE TOURISM

The classic marketing techniques could be used to help achieve more sustainable forms of tourism

Seeking to understand our customers in term of their motivation and determinants

The organization needs to scan its business environment for relevant data that might determine the stances it takes towards sustainable tourism

The scanning should involve
:

Government legislation on environment issues
The economic climate
The level of public concern over the social and environmental impacts of tourism
The potential influence of technological innovations such as virtual reality

The organization or destination would then look at itself and its current marketing situation, through a SWOT analysis for example.
One approach that can be taken by either organization or destination is to use one of the three forms of generic strategies put forward by
Michael Porter
:


Cost Leadership
Producing the product cheaper that competitors
Sell at the lowest price and gain more customers or
Sell at normal price and increase the profit margin


Product Differentiation
Differentiating the product you offer from that offered than other competitors
Emphasis on quality rather than price
Exploiting the local uniqueness rather than standardization

Market Focus
Focus on the market rather than the product
The area or region sets out to become ac knowledgeable leader in particular market segment
i.e. environmentally sensitive people, those concerned with healthy life styles or those who enjoy particular activities.

THANK YOU

Q & A SESSION

PRODUCT
DIMENSION INVOLVED,
DEVELOPING PRODUCTS - BE MORE TO SUSTAIN THE NATURE
WHICH NOT SUSTAINABLE
FORMER CATEGORY
:
vacation packages using public transport rather than private car ,
now
, latter principle should cover a destinations with poor environmental standards where inappropriate development taking place.
PRICE
SUSTAINABLE IN TOURISM, INCLUDE ALSO ;
generate appropriate level of benefit for host community
cover any cost involved in putting right any damage caused by tourist to environment
PLACE
2 MAIN IMPLICATIONS :
Encourage direct selling, for better price to consumer.
when use an agent, ensure the way of selling is ethical, avoid additional charges.
P
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M
O
T
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USE A BEST METHOD OF PROMOTION TO MARKET THE PRODUCT. example; brochures, website
SUSTAINABLE TOURISM & COMPETITIVE ADVANTAGES
THE CONCEPT OF DE-MARKETING
De-marketing involves manipulating the marketing mix to discourage rather than encourage potential tourist to visit particular destination.
THE THREE Ps OF DE-MARKETING
PLACES
That are perceived to receive too many tourist overall
PEOPLE
Who are felt to be undesirable in some way,because of their behavior or their low spending.

When for a limited period of time a destination is visited by too many tourist.
PEAK PERIODS



IN ORDER TO DECIDE ON THE NEED TO DE-MARKETING WE MUST DETERMINE THE CAPACITY OF A DESTINATION.
* SOME CARRYING CAPACITY OF DE-MARKETING
Physical capacity
=
the number of tourist a place can physically accommodate.
Environment or ecological capacity
=
the number of tourist that can be accommodated before damage begins to be caused to the environment or ecosystem.
Social capacity
=
the number of people beyond which social disruption or irrevocable cultural damage will occur.

EXAMPLE
:
The Body Shop
increasingly marketed themselves on basis of their corporate ethical issues.
not tasted animals

OHERS:

hotel Intercontinental practices good environment
Full transcript