Setting up a Tourist Venture - Case Study Example

Setting up a Tourist Venture Name: Course: Tutor: Date: Setting up a Tourist Venture Industry Description Tourism is an industry that is ever growing daily, as the number of tourist visiting tourism sites worldwide increase. Many people, especially from the western countries have a passionate interest in visiting other nations to see and enjoy their tourist sites. Even if they may be out for an official business visit, many of these foreign visitors turn into tourists. This is because they do want to discover the world during their leisure time, after they have finished the official business. Most them incorporate in their business visits some time to tour different tourist sites and enjoy. The tourist usually get into a given tourist country when they are ready to spent. Most tourists spend a considerable time saving enough money specifically for their visit before embarking on it. Therefore, they do not fear any cost implication that comes because of their visit. They have enough money even to cater for any emergencies that may occur. This is had been proved by different research done by engaging various tourists during the time of their visit. When the tourists are engaged, especially during their departure time, to find any feedback on their experience in a given country, a common response of a proper financial preparedness has always been evident (Lennon & Foley, 2000). Reasons for choosing the business and its profitability Therefore, these findings show that a country with different tourist attraction sites usually benefits a lot from any visit by tourists. Most of these countries have earned enormous amounts of money, which has helped to boost other areas of their economy. Tourism is one of the main foreign exchange earners in most countries, especially in Africa and some European countries, which have been found to have diverse tourist sites. Therefore, the government and some private developers have called for necessary actions to be taken for the optimal realization from the tourism industry. It is, indeed, true that most of the countries that have taken necessary actions to develop the tourism industry in their countries have significantly benefitted from the industry. Some key examples of such countries, from which I can draw my references, include Kenya and Denmark, to mention but a few. Tourism remains a terrifically lucrative industry that is worth putting in some investments. When the tourism industry grows, other industries also benefit both directly and indirectly. The industries that benefit indirectly include those that rely on the foreign exchange earned from the industry, for instance the banking industry. On the other side, the industries that benefit directly from the industry include those industries offering accommodation, restaurant and travel services. A tourist will urgently need accommodation and restaurant services when he or she jets into any country. Secondly, they will need travel services to move around to the different tourist centers. Other groups of people who directly benefit from tourists are the tour guides, who take the tourists around a given country to allow them enjoy the different attraction centers. However, most of the times the tour guides are attached with the travel industry. I am strongly convinced beyond any reasonable doubt that the tour business opportunity is the place for me to put my investments. I can visualize a bright future in this industry because of the increasing trends of growth that are currently in the tourism industry. Anyone who has invested in the accommodation and restaurant services is bound to earn substantial returns from their business in the near future. Although the numbers of tourists decrease as is often the case during the low tourists’ seasons, this business type may not be seriously shaken. This is because the services can still be extended to the local people, especially those in the business class. Conference halls can be extended besides the accommodation and restaurant services, to serve as centers for business meetings. This will still keep the business up running. Therefore, this is the way to go as far as tour business is concerned (DFID, 2001). Key Driving Forces and Key Success Factors for the Industry Various factors affecting tourism revolve around the welfare of the potential tourists as far as their financial welfare is concerned. For instance, the household income should be increased. This will ensure that the tourists have enough money that will help them tour the different tourist sites across the globe. There are many people across the world who would love to visit various tourist attraction sites around the globe, but they are restricted because they have not amassed enough cash to enable them fulfill their precious wishes. The higher the house income one receives, the better the tourist industry will become. This is because tourism is all about the household. Tourism cannot do without the household. It entirely relies on the household for its success. In case the household were to be entirely blocked from accessing tourism, it will be the end of this powerful industry. Another success factor for the tourism industry is the rising number of retired baby boomers who have infinite disposable income to spend. This highly favors the tourism industry. As already seen earlier, tourism heavily relies on the household. Therefore, when the household members have the time and enough cash to spare, it is likely that they are going to influence growth positively in the tourism sector. After retirement, many people do become less busy as they used to be. During this time, they have to discover the world and do various things that they had limited time to do when they were working. In addition, most of them do have enough money to spare, out of their savings and the pension scheme. This explains why most tourists are mainly aged people (Eco-tourism Support Services, 2000). However, tourism can also be inhibited incredibly by poverty across different families. This limits potential tourists from getting to different tourist attraction centers. Lack of enough time to spare due to involvement at work places and school may also indirectly affect the growth of the tourism sector. This explains why many young people do not frequent many tourist sites across the globe. They simply do not have enough time to spare for such ventures. Description of Products/Services As I venture into the accommodation and restraint services in the tourism industry, I intend to diversify my products and services. This will enhance better service delivery than the potential competitors already be established in the market. From my observation, it is obvious that there are few accommodation and restaurant service providers in the tourism industry, which have diversified their operation. For instance, many service providers in the tourism sector are involved in the restaurant services either only or in the accommodation services only. This may be due to the fear to risk out to venture in providing both services. I have also not come across companies that are ready to incorporate the travel and tour guide services in their company operations (Urry, 2003). In my tourist service provider company, I intend to provide the three services incorporated in one unit. This means that tourists will gain access to accommodation, restaurant, and travel and tour guide services. Once they have come to the restaurant, they will not have to bother themselves to move around to search for other places to get accommodation or get the travel services. They will nether have to bother looking for tour guides and end up being manipulated and conned. Apart from selling out my company, this move will be to the advantage of the tourists, favoring them during their stay in my country. The restaurant will provide an assortment of meals and drinks, both local and western types. This gives tourists the opportunity to place forth orders according to their preferences. They will have the opportunity to try out local meals and drinks, out of their own curiosity. This aspect is often neglected by many restaurants attending to tourists. They seem to assume that the tourists will only choose the western meals and drinks. Some will want to try local meals, and this is an advantage to the company to make more cash. In addition to the advantages enjoyed by the tourists, they will splurge less than when they were to obtain the three services from different providers. I plan to initiate discounts at different rates depending on the services hired by the tourists. For instance, the tourists who hire all services will receive more discounts than those who may hire only two services. This will ultimately enable the tourists to visit more tourist attraction centers than what they had planned before. The discounts will enable them save some money for this to be possible. I also intend to provide free services in air ticket booking. This will be advantageous to the tourists who may not have acquired their return ticket. They will not have to go through all the booking procedures at the airport. Foreign tourists accommodated at our premises will also enjoy free transport services back to the airport during the time of their departure (Beaver, 2002). My business will also own a uniquely designed website, which I will ensure is updated every day. This will enable us to start an online booking process for the services offered at the hotel. The tourists will have an opportunity to book for accommodation; restaurant, tour travel, and tour guide services online, and specify all the services that they will need. This will assist the tourists to avoid the trouble having to come a long way from their countries before booking for the services they will need. The tourists will also be given some brief information concerning their expectation in the country and the various tourist sites available in the country. I intend to work closely with the ministry of tourism in the country to guarantee that all the tourist sites are put up on the website. Operations Plan In the operation plan of my tourist business, there will be various operations objectives, which will drive the operations of the company. These will form the point of reference where all employees will draw self-drive and motivation to compete favorably company in the competitive tourist industry. The main objectives of this company will be: To provide high quality services in accommodation, restaurant, and tour travel and tour guide services in the tourism industry To ensure comfort and wholesome fulfillment of tourists during their stay and a visit to the local tourist sites To equip all employees and empower them as leaders I the tourism sector Location of the Premises The proposed site of location of this business is in the Gold Cost City. This is advantageous because, first, it is near my hometown. Secondly, this is a large city, which is often frequented by tourists and corporate businesspersons from all over the world. This is strategic since, as a business, my premises will be a direct beneficiary. This is because there are very few businesses of this type in the Gold Cost City. Besides the tourists, the business will be able to offer accommodation services and conference rooms to the corporate world. This, from my own research, comes with lots of lucrative packages as far as income is concerned (Singh, 2008). Acquiring of the Premises The premises will be built from scratch at the proposed site. This is the most preferred choice of putting up the premises to customize the various facilities, to ensemble the requirements of our clients. This will allow the facilities to be uniquely designed from the competitors in this sector. This may give as an edge over the competitors. Most tourists will want to do their own comparisons and choose on the best accommodation services, which they can afford. In addition, my research revealed that the construction costs are much cheaper than the costs of purchasing or leasing already established premises. This was after interacting with various contractors and construction managers in the building and construction industries. I found out that it would cost me $500,000 in building new premises compared to the whooping purchasing costs at $1,000,000. On the other hand, the costs for leasing the structure for twenty years were found to be $1,000,000. Therefore, it is advantageous to construct the premises rather than using the other means of acquiring similar premises, despite the length of time that may be taken in the construction. Indeed, construction is accompanied with many risks, some being natural on which no one has control, and management of the construction process is extremely involving. However, it is ultimately the best choice that anyone can make considering the part of cost effectiveness. Service Delivery Flow Chart Illustration My engagements in the tourism industry are purely service oriented given that I will offer accommodation, restaurant services, and tour travel and tour guide services. Despite this, the service delivery process in the three main areas will be procedural but correlated. The flow chart below best explains the process: The online booking of services, as discussed earlier will involve the tourist accessing the company’s websites and requesting for the services they may need. The second stage involves picking the tourists from the airport after they arrive into the country. They will be in constant communication with the transport manager to enhance a successful process. Thereafter, the tourists will be oriented, which will involve the introduction to services offered at the premises and their location, and the general introduction to the country. The tourist will have the freedom of seeking clarifications where they do not understand. The next stage involves accommodation, where every guest will be allocated rooms, before being served with their meals. The serving of meals will always be before and after various visits of the tourist sites, according to the desires of the tourists. Graphical Illustration of the Layout A graphical illustration of the layout is as indicated by the diagram below. Service delivery in the industry increases with the increase in the production efficiency. When the production is high, the service processes are increased. Facilities Required for Operations For the operations to run smoothly, some equipment will be needed to enhance them. Some of the key equipment is as listed: One server computer and five networked computers – will be purchased at an approximate cost of $2000. Vehicles – Three vans and one passenger track – to be purchased at a total cost of $50000. The vans at $10000 each and the track at $20000 Projector – to be purchased at $800 Modern beds – to be purchased at $500 each Beddings – the total purchasing costs for every all the accommodation facilities is $10000 Furniture – this is to furnish the lounge rooms and the restaurant. The purchasing costs totaled to $20000 Kitchenware – total purchasing costs estimated at $10000 The business is anticipated to grow quite fast once it has been launched. This explains why the premises have to be built and not purchased. However, expansion plans in the next five years are still under way, where there is a planned acquisition of more land around the premises. Plans are also under way to construct different premises in some tourist sites that are far away from the main premises. This will assist in when there are too many tourists, and when some tourists wish to spent more time in such sites. During the construction process, an established building supplies company within the city will supply the building materials necessary. The furniture, kitchenware, and vehicles will also be supplied directly by the manufacturing companies after signing of a contract. This choice of suppliers will eliminate the risks of exhausting building materials or disappointments before the project is over. However, the building process will be under a contractor experienced in the tourism industry for more than 10 years. Before the selection of suppliers and the contractor, the board of directors of the business will deliberate on the existing suppliers and contractors before choosing the best. The contractor and suppliers will all sign a form with our agreement terms as security for any legal actions in the future. However, the individual suppliers will meet any costs associated with the transportation of goods to the site. My company will only pay for the final quotation as will be reflected in the agreement form. Process for the maintenance of the facilities For effective functionality of the facilities in the premises, it is wise for proper maintenance to be done regularly. Properly maintained facilities will ensure maximum delivery and smooth running of the facilities. Therefore, there is a set out plan for maintenance to be done biannually, after every six months. However, this is in exception of the vehicles and other machines in premises. These are to be maintained on quarterly basis. This will ensure that they are kept in good condition throughout because they are involved in a lot of work. The maintenance engineer will coordinate the maintenance process after proper inspection has been done, and it is ascertained that maintenance is required. The entire maintenance process will be done in teamwork, under the supervision of the supervisors in the facilities. The supervisors will be directly involved in the allocation of the maintenance duties. They will also ensure that there is a properly drawn and working schedule for the maintenance activities. This will ensure that the facilities do not develop frequent mechanical breakdowns, as is often the case when maintenance is poorly done or not done at all. Inventory Management System and the Management Strategies There will be a well-established department of inventory management system, which will deal with the ordering times, safety stock levels and inventory levels with succinct measures to ensure safe storage of inventory. This will enhance a smooth run of activities right from construction to the operations after the launch, with minimum losses (Mitchel, 2009). This department will also be directly responsible in ensuring that the seasonal variations in demand do not interfere with operations in the company. The department will carry out market analysis as it regulates the supply chain to avoid any possible losses. Regulatory and Legal Issues The company intends to comply with all the state, federal, or local regulatory requirements that may be in existence. This is in the spirit of patriotism and enhancement of growth in the entire tourism industry. This will be carried out by obtaining an official license to run the business. Other legal documents necessary like the zoning permits, health permits and the environmental permits are required. A proper compliance to these legal issues will boost the business. This is because the tourists will have confidence in our company knowing that it is a legal business recognized by the state. Employees, and their Work Schedule, Trainings, Remunerations and the Legal Requirements The company intends to maintain a sizeable team of employees for effective management. However, the team should also be large enough to realize all the necessities of the clients. For a start, the company will have 100 employees, from the top management to the least employee. Four top managers shall coordinate the activities of the three-business line including accommodation, restaurant, and tour travel, and tour guide. The fourth manager will be the maintenance engineer in charge of the maintenance services (Dubai’s tourism industry grows 10% to 9.3 million, 2012). The managers will each have three supervisors to help them coordinate the work. The supervisors will ensure that tourists have all received what they desired. That means that they will supervise all the other employees. The rest of the employees will be in the workforce, which involves the cashiers, waiters, cleaners, tour guides, drivers, security men, and the maintenance crew. The employees will be required to report on duty early enough to avoid any inconveniences to the guests. There will be three shifts at the premises that will be interchangeable, to allow each employee to work for a maximum of 8 hours in a day. The shifts will also allow the operations to run throughout the day and night. Every employee will be expected to work at their stations fulfilling their responsibilities unless directed otherwise by the supervisors or the managers. The supervisors will make the weekly schedules and allocate the employees to different shifts. Trainings will be done when an employee is recruited to ensure that the employee complies with the set standard in the company. This will also introduce them to what will be expected of them. In addition, there will be yearly trainings done to all employees to equip them with skills necessary to help the company fit in the tight competition. The top managers will receive remunerations $2000, followed by the supervisors who receive $1500, and then the junior workers who earn a salary ranging from $500 to $1300 depending with their level of experience and performance. This difference in salary ranges is due to the qualifications and the responsibilities that one has. There are legal requirements in the employment of workers, which need to be observed. These requirements protect the workers, giving them the job security and ensuring that their rights are respected at the job place. For instance, the legal requirements dictate that workers have a right to proper payment, which I intend to comply with through the proposed salary figures above. I also intend to get a company lawyer who will help in the streamlining of legal issues. Conclusion From the information presented above, my idea is technically feasible. This is because it complies with all requirements needed to run a successful business in the tourism industry. I also believe that I am capable of successfully operating this business with the diverse understanding I have gained as far as the business is concerned. I also have various people, who are veterans in this industry and have promised their rigid support to me in case I engage in the business. References Beaver, A. (2002). A Dictionary of Travel and Tourism Terminology. Wallingford: CAB International. Cooper, C., & al, e. (2005). Tourism: Principles and Practice (3rd ed.). Harlow: Pearson Education. DFID. (2001). Changing the Nature of Tourism - Developing an agenda for action . Department for International Development. London . Dubai’s tourism industry grows 10% to 9.3 million. (2012). Gulf News , 53-61. Eco-tourism Support Services. (2000). Tourism Awareness Seminars for Rural Communities – Module 9. Botswana Tourism Development Programme, Department of Tourism, Gaborone. Lennon, J. J., & Foley, M. (2000). Dark Tourism. London: Continuum. Lew, A. A. (2008). 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