Security and Climate Change Challenges for Hilton Hotels in Kenya - Research Proposal Example

Phase Business Problem and Research Objectives Security and Climate Change Challenges for Hilton Hotels in Kenya In what one may observe as internationalization of hotels, Hilton Group of Hotels has not been left behind in tapping of markets in Africa. As one of the leaders in the hotel industry, Hilton has always embarked on a path of exceptional quality service that has seen it rise from a single business in 1919 to a chain of hotels all over the world. In fact, one may observe that the hotel company has made efforts come up with a brand name anchored on remarkable customer service and customer care. The hotel has also developed a consistent human resource management strategy that it applies globally to conduct recruitment, management and staffing (Ying-Chang 215). This has made the services offered by the company unique and up to standard irrespective of where the hotel operates. This is what one may refer to as global integrated strategy. In addition, the company also adopts a culture of diversity in management whereby it recruits its staff from various nationalities. To cater solve the issue of employee turnover, the company has also put in place a development and performance evaluation program to make sure that its employees are well motivated and are enumerated satisfactorily. In order to sell its culture and share with the world its standards for the global hospitality industry, Hilton Group had also set The Hilton University in the year 2002 (Hilton University Annual Report 5). Broad Problem Area Even so, the problems that have started affecting the hotel’s operations in Africa are those that one may observe as originating from the business’ external environment. Taking focus on security and climate change issues in Sub-Saharan Africa, one may observe that firms that face serious challenges are large hotels. This is because the clienteles for many leading hotels such as Hilton are usually tourists from foreign countries. Such foreign countries include the UK, United States of America, and Australia amongst others. Domestic clientele is quite insignificant but also exists. To be specific, Hilton Hotel in Kenya has faced problems of below capacity bookings. This has been occasioned by the rising level of insecurity since Kenya’s incursion into the formerly lawless state of Somalia. When Kenya entered Somalia to flush out the Somalia militants, the repercussion has been counter attacks in Kenya’s capital of Nairobi. Many countries responded by issuing travel advisories preferring that their citizens avoid destination Kenya due to rising insecurity. Given that the Nairobi National Park is just on the periphery of the city, many tourists usually books Hotels within the Nairobi Central Business District (NCBD). Hilton hotel, which is situated right in the NCBD, has been one of the hotels whose operations have been profoundly affected by the rising level of insecurity and travel advisories. Coupled with climate changes problems, the wilder beast crossing at the Mara River has also started losing its unique significance. Mara was recognized as a UNESCO world heritage site and one of the Seven Wonders of the World. It had since then boosted tourism, but when climate changes resulted in low levels of water, tourism to the Mara also dropped, consequently affecting hotel bookings in Hilton hotel. Therefore, one may observe that although Hilton Hotel has put in place measures to ensure sound management, good customer relations and customer service, factors in the external business environment in selected countries have become a problem. There is, therefore, a need for hotel management to consider ways of making sure that the hotel finds a solution to problems arising from the business’ external environment. Therefore, the aim of this study is to investigate the extent to which insecurity and climate change have affected hotel industries in Nairobi-Kenya with particular consideration to Hilton Hotel. List of Information Prior to taking any corrective measures, it would be imperative for the Hilton Hotel Kenya to analyze and understand how the two broad issues affect the operations of the hotel. Understanding of the most appropriate remedy would be based on the following: Government Involvement in Tourism Promotion Active government involvement in promotion and marketing of Kenya as a tourism destination would be beneficial to both the government and the hotel. While the central bank benefits from increased foreign reserve currency, Hilton will benefit through increased bookings at the hotel. The question to be answered here did government’s poor involvement in marketing Kenya as a tourist destination contribute to low sales turnover at Hilton Hotel? Improvement of Security in the Region by the Government Did deteriorating security in the Kenya’s capital city contribute to the Hilton hotel’s low performance? Was the Hilton Hotel doing well prior to the rise of insecurity situation? Internal Environment What is the role of marketing department in selling the brand Hilton Hotel as the preferred choice of hotel? Environmental Management Issues To what extent does climate change affect nature tourism and consequently hotel bookings? Customer Habits To what extent are customers’ tendency to book in the hotel connected to security and environmental issues in the national parks? Statement of General Aims and Specific Objectives The aim of this research is to analyze the extent to which tourist destinations and hotel industries are dependent on security and environment conditions. The research also aims at highlighting the connectivity between tourism and hotel industry in Africa, especially the East African region of sub-Saharan Africa. The result collected will be used to appeal to leading hotel industries to join efforts in environmental conservation as well supporting government initiatives in security provision. This is because the consequences of improved management in such selected areas directly benefit their operations as the immediate stakeholders. Specifically, the following research objectives shall be addressed: 1. What is the effect of insecurity on Hilton hotels in East African region of Sub-Saharan Africa? 2. What is the effect of climatic changes on Hilton hotels in East African region of Sub-Saharan Africa? 3. Can improved security improve and environmental conservation efforts eventually improve Hilton hotel performance in East African region of Sub-Saharan Africa? 4. To what extent can Hilton and other hotels work closely with the government in improving their external business environment? Theses Statement There is a relationship between homeland security, tourism, and Hotel performance There is no relationship between homeland security, tourism, and Hotel performance There is a connection between climate changes, eco-tourism, and hotel performance There is no connection between climate changes, eco-tourism, and hotel performance The relevance of analyzing how various trends affect tourism is based on the fact that tourism trends eventually affect hotel operations. It is understood that as a service industry, tourism sustains businesses in the hospitality and hotel management. Focus shall be on Kenya’s hotels as a representative of sub-Saharan countries in East African Region. Phase 2: Literature Review Many researchers have attempted to unravel the close-knit connection between security and tourism. István Kovari and Krisztina Zimanyi note that tourism has become so prominent in the age of global tourism. According to them, safety problems influence decision on tourism destination. They observe that although security presents a complex dimension, it has gone changes over the years to move from a less passive factor to an active component of tourism. Kôvári and Zimányi contend that because tourism is perceived to be an industry of peace, factors that may act to adversely distort this picture eventually affect tourism negatively and consequently hotel industries (Kovari and Zimanyi 60). Research conducted by Anita Mendiratta also observes the effect of insecurity in tourism and related sector. In her work Taking Care of Tourists: Beyond Safety and Security, Mendiratta observes that acts of terrorism and crime do affect tourism sector. She assert that the cost of not caring would be drop in revenues for the stakeholders, lay-offs, and discourage further investments. She also highlights the destination is also likely to have a negative image on the global front, lose its pride. She therefore advises that destinations should formulate policies that would eventually boost the service industry (Mendiratta 8). Even so, research by Waleed Hazbun, Explaining the Arab Middle East Tourism Paradox, offers a contradicting picture for certain areas. According to Hazbun, the 9/11 was expected to impact negatively in the Middle East and Arab world. However, many countries experienced an increase in tourism in the subsequent years. Egypt, for example, recorded a rise in arrivals from European, Lebanon, United Arabs Emirates, and Tunisia in 17.3%, 16%, 9.4% and 9% respectively. Unlike other models, Hazbun observes that much as insecurity affects tourism negatively, some areas operate under a paradox model (Hazbun 52). This implies that the hotel industries in Egypt were not affected negatively as a result of perceived insecurity in the region. On the other hand, research has also shown that climate change also affects tourism and related industries. Scholars Bas Amelung and Alvaro Moreno in their work Impacts of climate change in tourism in Europe, observe that climate change is likely to affect tourism. The researchers offer an example of winter sports in France, Austria, and Switzerland usually attract tourists who come to ski. During such times, hotel industries books in many visitors and make a catch (Elsasser and Burki 12; Amelung et al. 17). In the event that there is a climate change whose consequences result in reduction in the usual activity, it is highly likely that the number of tourists will reduce and consequently hotel incomes (Amelung and Moreno 37). As noted from other researches, Hilton Hotel is a case study of how hotel industries are affected by climate change and security issues. The research will analyze trends in the hotel business prior to Kenya’s incursion in Somalia and the subsequent trends as a result of travel advisories issued by some western countries. It is expected that the perceived insecurity in the country is what is responsible for the decline in sales (Olorunfemi and Raheem 201). Research by environmental agencies indicates that deteriorating climatic and environmental conditions have affected animals’ habitat. As a result, nature tourism and game viewing have been affected in the country. Other observations by Kenyan Tourism Board also indicate that tourism industry was doing well a few years back before significant changes in water levels at Mara River. Mara River has been a prime tourist attraction given the annual wilder beast crossing from Maasai Mara on the Kenyan side into Serengeti national park. The drop in hotel bookings is therefore associated with decline in eco-tourism in Kenya. The impact is particularly felt by Hilton hotel (Stockholm Environment Institute Report 18). Other studies also support the idea that climatic change as a result of environmental degradation and the current insecurity usually impact on all sectors that are anchored on tourism. This suggests strongly that the current situation in Hilton Hotel Kenya is not exceptional to the trend (Mutimba et al. 30; Bigano et al. 179; Hamilton and Tol 168; Hamilton and Lau 59). Conclusions Relevance of the Research As noted by Kovari and Zimanyi in their research about the connectivity between tourism and security, the two scholars noted that a country’s homeland security is highly likely to affect tourism a terrific deal. Mendiratta also lends support to their research to note that security is an issue that government should address so that tourism is improved. Other scholars note that tourism is also affected by climate change especially for countries that rely on eco-tourism such as Kenya. The matter of concern is that tourism as a sector in many countries directly sustains hotel industries to a higher level. A particular concern arises from the case of developing countries where domestic tourism is still poor and hotels that target tourists have to rely on international arrivals. By default, a drop in security levels directly affects leading hotels that rely in foreign tourists more than domestic tourists do. Such is the case for even exceptionally managed hotels such as the Hilton Group of Hotels. Therefore, the relevance of this research is that it highlights the need for governments to address security issues in developing countries so that other economic sectors that directly depend on such outcomes are not jeopardized. Doing so will also guarantee increased government revenue and opportunity for hotels to grow and provide more employment opportunity. Besides, this study also points out the need for hotels to be directly involved in environmental management under corporate social responsibility. This is because they are directly beneficiaries through eco-tourism that attracts them clientele. This research, therefore, also aims at sensitizing hotel investors in Sub-Saharan Africa on external factors that directly affect that particular business sector so that they may make informed decisions. Remaining Gap Although the research identified the need to address security issues, the matter is just too much for the hotel industries to handle. What remains to be found out are the following: Is the government making any tangible efforts to address the insecurity issue? Are relevant stakeholders mitigating the environmental issues? Phase 3: Primary Research Proposal Research Objectives Investigate customer trends in Hilton Hotel prior to the insecurity situation Investigate customer trends in Hilton Hotel prior to the onset of climate change Analyze deviations in Hilton sales turnover in the period after the insecurity situation and climate change Investigate the role of government in security provision Investigate the role of relevant stakeholders in mitigating environmental issues Approach to the Problem The aim of this primary research is to find out how the areas of problems identified impact on the activities and operations of the hotel. It is also the purpose of the primary research to find out how the actions of relevant stakeholders in the issues affecting the hotel industry may act to avert the problem. This research will majorly aim at analyzing from previous and the current trends from the industry to analyze the impact of the identified issues on the industry. It is a research that aims at finding connectivity between the forces in the external environment and their effects in the operations in a normal business. The particular methodology will entail analysis of the Hilton Hotel records such as annual reports. This method had been adopted because annual reports are normally a summary of all trends registered in the concluded trading period. Research Methodology Research Techniques The research methodology employed in this research would be analysis of company records, proposals and trends. The research would analyze registered trends in bookings during previous seasons. The seasons would be divided into low and high seasons. Records to be used will be within a span of the last five years. This would enable analysis of consistencies and deviations. Population and Sampling The population will be analyzed from company reports in terms of: Native country Gender Nature of visit (government, corporate duty or private) Returning client or new client Suggested Questions to be investigated The following questions have been suggested for investigation from the annual reports to be analyzed: Which countries are mostly affected by the by the decline in hotel bookings? What is the most affected gender in the trends? Which type of clients suspended their visits as a result of travel advisory (government, corporate or private visits)? To what extent can the decline in hotel bookings be directly associated with security and environmental issues? Works Cited Amelung et al. Implications of Global Climate Change for Tourism Flows and Seasonality. Journal of Travel Research, 45(3), 285-296, 2007. Amelung, Bas and Moreno Alvaro. Impacts of climate change in tourism in Europe. PESETA- Tourism study, 2009. Anita Mendiratta. Taking Care of Tourists: Beyond Safety and Security .Insights into Tourism Branding. CNN Task Group July, 2010. Bigano et al. Prediction tourism flows under climate change—an editorial comment on Goessling and Hall. Climate Change 79(3–4):175–180, 2006. Elsasser, Hans & Bürki, Rolf. Climate Change as a Threat to Tourism in the Alps. Climate Research, 20(3), 253-257, 2002. Hamilton, Jacqueline and Lau, Maren. The role of climate information in tourist destination choice decision-making. In: Gossling S, Hall CM (eds.) Tourism and global environmental change. London: Routledge, 2005. Hamilton, Jacqueline and Tol, Richard. The impact of climate change on tourism in Germany, the UK and Ireland: a simulation study. Reg Environ Change 7:161–172, 2007 Hazbun, Waleed. Explaining the Arab Middle East Tourism Paradox. Department of Political Science, Johns Hopkins University, Baltimore. Kovari, Istvan and Zimanyi, Krisztina. Scientific Papers Safety and Security in the Age of Global Tourism: The changing role and conception of Safety and Security in Tourism. Applied Studies in Agribusiness and Commerce, 2011. Olorunfemi, Felix and Raheem, Usman. Sustainable Tourism Development in Africa: The Imperative for Tourists/Host Communities Security. Journal of Sustainable Development in Africa Vol.10, (3), 2008. Mutimba et al. Climate Change Vulnerability and Adaptation Preparedness in Kenya Camco Advisory Services (K) Ltd. Heinrich Böll Stift ung, East and Horn of Africa, 2010. Stockholm Environment Institute Report. Economics of Climate Change Kenya. Stockholm Environment Institute. Project Report, 2009. Ying-Chang, Chen. A Case Study on the Business Performance Management of Hilton Hotels Corp. International Business Research Vol.4 (2), 2011. Read More