Tourism Sector Stakeholders

INTRODUCTION

To most people tourism is a recreational activity or a hobby that involves travelling to various tourist attraction sites. However, very few people recognize the efforts of the individuals who maintain, preserve and manage the tourist attraction sites. The effectiveness of tourism is therefore not anchored on the tourists who visit the sites but involve various stakeholders who are involved in the management of the attraction. Since most of the attractions are natural resources the overall management is under the government making the policies associated with tourism being part of the public policies. The government therefore exercises control over the tourism sector and makes decision that determine which direction the sector will take. However the government does not exercise monopoly over the sector but involves various groups in the policy formulation process.

            STAKEHOLDERS IN TOURISM POLICY MAKING FRAMEWORK

A public policy can be simply be defined as the decisions taken by the government which intend to solve problems and improve the quality of life of the citizens. However in this case the policies are more specific. These are policies which aim at addressing the issues in the tourism sector. This process therefore involves conceptualization of problems facing the sector and formulation of solutions which are referred to as policies (Kerr 2003). It involves five key phases beginning with agenda setting which is more the conceptualization of the issue at hand, this is followed by the formulation of the policy, the third phase involves decision making followed by implementation and evaluation.

The policy making process can be addressed using various approaches with the most popular approaches being the institutional approach, the group and network approach and the corporatist and pluralist approach (Kerr 2003). These approaches are used by the various stakeholders who are the focus of our study in formulation of the most effective policy that addresses the issues at hand taking into consideration the impact on all the stakeholders. The major stakeholder is the government which is the decision maker and the influencing stakeholders are pressure groups, community leaders, members of bureaucracy and other members relevant to the tourism sector.

            The Government

The government is the major stakeholder in the policy making since as noted earlier this is a public policy. In the UK for instance the department for Culture, Media and Sport (DCMS) is responsible for all the activities of the tourism sector. This is the case in most countries with the sector being grouped with other sectors such as culture and sports. The government’s major duty in the policy making process is making the decision on whether or not to adopt a policy and implementing the adopted policy (Page 2011). The government is also responsible for creating a platform where the stakeholders should meet and discuss the policies to be implemented.

The role of the government in the tourism sector goes beyond just the policies but it’s important for the overall functioning of the tourism sector since its responsible for the development of infrastructure, provision of security and responsible for the management of most of the tourist attractions through parastatals (Page 2011). The policy making process is also a political process and sometimes involve lobbying for support from representatives because for it to implemented it must be an approved legislation. It is important to note that the involvement of the government is not only limited to the national level but also at the local level through the local authorities (Page 2011).

            Pressure Groups

Pressure groups are present in almost every sector of the economy and the tourism sector is no exception. These are voluntary groups that are formed to advance the needs or preferences of a particular group of people. In the tourism sector, tourism sector associations, community groups, conservative groups and environmental groups form the pressure groups (Sharma 2004, p. 83). Each of these groups has specific interest which they pursue and seek to influence the policy in favor of their members and in the case of conservatives and environmentalist they seek to defend their course.

The tourism sector associations seek to influence the policies to maximize their profits and hence the welfare of their members. This is achieved by generating alternative strategies that the government should implement for the development of the sector. The associations do participate in lobbying of representatives or the executive to gain support of legislative pieces that are beneficial to their members. Community groups on the other hand seek address issues of the community surrounding certain tourist sites so that the sites can also be beneficial to the community. They also seek to protect the rights and needs of the community which can be overlooked in the activities of the sites such as expansion or closure. The conservatives are also involved so as to make sure that the heritage of the sites is maintained when activities such as expansion are carried out.

           

 

            Members of Bureaucracy

In most industries there are the main players in the industry which in the tourism sector maybe the leading hoteliers, the leading transport company or a major privately owned tourist attraction site such as spas. The managers or the owners of these market leaders constitute the members of the bureaucracy. These are individuals whose individual influence in the industry cannot be ignored though they may be part of other associations. Other players who can be classified in this group are regional developmental agencies or members of tourism commissions (Sharma 2004, p. 83).

The influence of the members of bureaucracy is not clearly outlined but they play a crucial part in policy making. Regional agencies and commissions are usually involved in formulation of the policies since they may be involved in the implementation of the policies and they formulate the rules guiding the sector. Involvement of the industry’s leading players is aimed at ensuring stability in the sector by having them evaluate the impact of the policies in the sector before they are implemented. The leading players are also used to promote the adoption of certain policies since they are the trend setters in the industry.

            Community Leaders and Other Stakeholders

As noted earlier policies that are implemented by the national government have influence on the economy at different levels and some of the policies have influence at a local level. This therefore makes the local or the community leaders part of the policy formulation process. Though this issue is usually addressed by the conservative groups as part of heritage, certain policies may necessitate consultation with the local leaders. Involvement of the local or community leaders is aimed at ensuring cooperation during the implementation stage and at times the leaders may need to facilitate the process by mobilizing their community. Other stakeholders that play an important part in policy making are the scholars, tourists’ agents, transport agents and resort managers who play an important part of in the industry.

Unlike most industries where the consumers are represented by associations in the policy making process, the tourism sectors do not have consumer representation. The effectiveness of this sector is usually driven by the bargaining power of the beneficiaries of the industry who in pursuit of their own needs address the needs of the consumers. The main reason behind this is that the tourism industry is driven more by supply than demand. This explains why the industry is built around hobbies rather than activities that may seem fun to the consumers. Moreover the fact that the industry is based on natural attractions and the natural environment makes the involvement of the government crucial since the sustainability and protection of the natural resources and the environment is the duty of the government. The government also has the responsibility of exploiting or facilitating the exploitation of natural resources and tourism is one of the ways of exploiting the natural resources.

           

            THE CHANGING INFLUENCE OF STAKEHOLDERS

The business world is ever changing and the means and ways of doing business are changing along with it. The tourism sector has also been changing over the years meaning that the stakeholders have also been changing or their level of influence has been changing. Over the years the industry has been revolutionalized by the emergence of new tourist attractions and emergence of new trends. The main stakeholders in policy making process may have not changed but the main players of the industry have changed. This means that the monopoly that the government enjoyed is no longer there partly due to the fact that major players in the tourism industry have definitely changed. This is attributed to the changing trends of tourism with more people adopting more eco friendly activities and more fun activities rather than site seeing.

Technological advancements have to a great extent diluted the almost monopolistic power held by the government by being the main tourism marketer. The internet has become a major determinant of the decisions of tourist in determining the destinations they will visit. The impact of government advertisement has only been felt on corporate tourism and in seminars. The social media has become a popular advertising platform for alternative tourist destinations such as spas, resorts, sporting events and travel packages among other options. Changes in the organization of the travel and tourism industry have also significantly reduced the government influence on the industry (Warn 1999). For instance travel packages offer a complete holiday package with predestined destinations which may be within various countries. In the UK sporting events are a major tourist attraction with annual tournaments such as rugby and football which are usually not regulated or influenced by the government. The emergence of new tourism trends and the advancement of technology have significantly reduced the influence that the government has on the tourism sector but it is still the dominant factor in policy making.

The tourism sector players have been changing or transforming consistently in the recent past and thus a shift in the key players of the tourism sector. Take the transport sector for instance; in the last two decades or so this was not a major factor in the tourism industry but today its one of the major determinants of tourist destinations especially in Europe and North America (Warn 1999). Travelling by itself has become a form of tourism targeting both domestic and international tourist. The fast train network around Europe has promoted tourism more specifically sports tourism by facilitating fast movement of fans around the continent. Changes in society have also changed the key players in the industry such as the increased awareness which has made pressure groups less relevant since the industry is as competitive as ever and the target market is aware of the market trends therefore the market forces being the pressure sources.

The high level of competition has made the probability of one party being dominant in the entire industry impossible. The only way of being successful is through provision of efficient services so as to create a competitive advantage over the competitors. This therefore means that members of bureaucracy are no longer part of the policy formulation board which is another indication of the reduced influence of the stakeholders. The emergence of new luxurious tourist destination in Asia has really intensified the level of competition in Europe since the two share the same customer base. This has however given rise to new members of bureaucracy through takeover of various companies by the Asian tycoons. The government which is the major stakeholder is reluctant to involve them in the policy making activities since they are only business oriented.

The impact of the global economic development cannot be ignored when addressing the issue of tourism. This growth has led to the development of endless number of tourist destinations all over the world. It has facilitated the development of infrastructure in Asia and Africa therefore opening up new tourist destinations never explored before. The growth has also led to an increase in the spending power of individuals thus the increased uptake of tourism. This has led to the expansion of the industry both in investment and expenditure a factor that has led to the development of new tourism options such as travel packages and alternative destinations such as Dubai which has become a major destination for luxury lovers and an alternative to the cold Europe. The global economic development has reduced the importance of policies to mere regulation but no influence on the tourism industry. All the stakeholders of policy making do not have power to influence the market but can only formulate progressive regulations to facilitate the growth of the tourism sector.

 

            BRITISH HOSPITALITY ASSOCIATION INFLUENCE ON POLICY MAKING

The British Hospitality Association (BHA) is an organization that champions the interests of Restaurants, holiday attractions, catering establishment and hotels. The association which has been in existence for over 100 years has been on the frontline in advocating for the rights, needs and opinions of its members not only to the government but also to the entire service industry. Its membership has continued to grow as it gains more traction in the consumer oriented industry making it even more influential in the tourism and service industry. The association’s long history comes is a symbol of experience and its lobbying and negotiation prowess cannot be questioned as it has delivered for its members time and again during its long existence. The association however is not only concerned about the welfare of its members but also about that of its customers and the tourism industry in general.

The organization main activities are engaging the government and the elected representatives in promoting the interest of its members. The organization is also responsible for creating awareness of what the hospitality business entails to the public, the media and the government. This is achieved through campaigns to promote the activities of the members for the betterment of the British community at large. The organization is also responsible for ensuring best practices among its members so as to ensure that the customers are also protected and their lobbying and campaigns are not watered down by unethical practices. The association also has a responsibility to the public and its recent endorsement of the health responsibility deal that seeks to reduce the levels of obesity among British citizens. The association is very critical to the success of the health campaign since the hospitality industry provides about 20 per cent of all food consumed in the UK.

The core focus of the association is its relationship and influence on the government in addressing matters related to the industry. At its inception in 1907, the industry was facing a major threat from the government since the Liberal party had promised to abolish a third of the liquor licenses so as to reduce drunkenness in the country. The association lobbied the Chancellor of the Exchequer and had the policy adopted by the government amended. This was the beginning of a long and influential relationship with the government as the association became part of the policy making committee in matters relating to the tourism and hospitality industry. The association is charged with the duty of providing expertise on matters relating to the industry as to the expected impact certain policies will have on the industry both in the short term and in the long term. The duty of the association in the policy making process is not only reactionary but it’s also proactive in that the association can come up with policies that it want to be adopted and have them discussed among the members.

The British Hospitality Association main goal is advancing the interests of its members in relationship with the government. One of the ways of achieving this is lobbying members of the government to advance issues related to the industry. The said members include government ministers and MPs among other representatives who have the capability of presenting bills at the floor of the National Assembly. BHA may also drum up support for its bills by organizing seminars for members of the house in which it has presented its bills to guarantee that the bills are adopted into law. Most of the bills and policies that BHA come up with are usually geared towards creating a more enabling environment for its members to operate in and making Britain the destination of choice thus more customers. One such policy is the VAT cut which aimed at reducing the VAT charged to hospitality facilities such as leisure parks, amusement parks among other tourist attractions so as to make the UK more competitive in the tourism industry. The association has also championed policies such as the Air Passenger Duty branding reform, the increase of the minimum wage and the hosting of various events such as the Olympics which is a major source of revenue for the industry as well as a marketing opportunity.

The association’s activities are however not only geared to the benefits of its members but also to the welfare of all the stakeholders. One such policy that adopted was the Excellence through People Scheme which was in response to National Heritage report which stated that the tourism and hospitality industry was at the risk of perpetuating a vicious circle that could have dreadful impact on the industry (Boella and Turner 2013, p.11). This prompted the association to come up with an employment policy that addressed the needs of the employees in terms of wages, engagement with the employer and the development of his or her skills among other issues. The association has also been promoting eco-friendly disposal of wastage in effort to achieve the EU standards which comes at a cost. Another policy that BHA has adopted is the plan to create over 300,000 jobs by 2020 which will be of great benefit to the UK economy.

 

CONCLUSION

The tourism industry contributes to over 9 per cent of the total GDP and therefore its importance cannot be overemphasized. Being a public good the involvement of government is mandatory both as a regulatory authority and as a manager. Therefore any stakeholder in the industry is subject to the government rules and regulations and their influence is limited to the government’s will to consider. However the industry has been on a long journey of evolution and the change has been for the better. The competitiveness in the industry has greatly diluted the influence and power of the government though it still remains the authorizing authority of all policies. The stakeholders have become partners as the image of the country is critical to the success of the entire industry.

 

Reference

Boella, M & Turner, S 2013, Human Resource Management in the Hospitality Industry a Guide to Best Practice, 9th edn, Hoboken: Taylor and Francis.

Kerr, WR 2003, Tourism public policy, and the strategic management of failure, Oxford: Boston.

Morrison, AM 2013, Marketing and managing tourism destinations, New York: Routledge.

Page, S 2011, Tourism management an introduction, 4th edn, Oxford: Butterworth-Heinemann.

Sharma, KK 2004, World tourism today, New Delhi: Sarup & Sons.

Warn, S 1999, Recreation and tourism: a changing industry, Cheltenham: Stanley

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