Destination Analysis of Hong Kong - Case Study Example

Topic: Destination Analysis of Hong Kong as a tourist Destination Name: Student ID: Institution: Tutor: Due Date: Executive Summary Tourism is regarded as an example of economic activity that can spur the economy of a country and create beneficial impacts to residents of a country. Identification of the potential of a country to attract tourist is important in ensuring the potentials are utilized in creation of tourist attractions to ensure more tourists are attracted. Hong Kong is an example of a country that can make better use of its tourist attractions to improve economically and also create conditions that improve the lives of its citizens. Thus, it is important to conduct an analysis of the country’s tourist potential and determine strategies that can be used to improve its performance in the hospitality industry. This paper provides an analysis of Hong Kong as a tourist destination for tourists from China and other regions of the world. It also provides strategies that should be used to market the tourists’ attractions of the country to other parts of the world. This paper also presents the governance structure that should be implemented to promote tourism in the country as well as stakeholders and community relationships that should be implemented in the tourism sector. Table of Contents Executive Summary 2 1.Introduction 3 2.Destination product development 4 3.Destination Partnerships 7 4.Community and tourism stakeholder relations 8 5.The destination governance and leadership 9 6.Destination communication and promotion 10 7.Recommendations future management and marketing of the destination organization 12 8.Conclusion 13 9.References 14 1. Introduction This paper presents a report on Hong Kong as a major tourist destination. It presents the potential of the country to attract tourists by considering factors that contribute to enhanced tourism in the country. It provides an analysis of tourism product development by providing a report on the people, packaging and programming and the Destination Marketing Organization (DMO) used in the country and its attempts to diversify products to grow tourist markets. It also represents partnerships models that can be used to enhance tourism in Hong Kong and the impacts that can be brought to the improvement of tourism as a result of partnerships. The effect of stakeholders and theories are also used to describe their contribution in improving tourism and projects in the country and its effect in improving relationships with tourists and the general attitude towards tourism from the regional people. Destination governance is also provided by explaining governance models that best suits Hong Kong. This is supported by provision of an example that improves tourism and encourages its development in Hong Kong. This is followed by an outline of elements of the promotion mix and effective marketing that can be used to promote tourism in the selected destination. An example if integrated marketing model is provided that best suits Hong Kong tourism market. Aspects of promotional mix that are discussed include advertising, PR, sales promotion and digital marketing. It also discusses the campaign and promotion mix used by the DMO in the case study. Finally, this paper provides a recommendation of methods that can be applied to improve tourism in Hong Kong by suggesting theories that are applicable in managing the state in Hong Kong. 2. Destination product development Tourism development model has been accomplished in Hong Kong by the efforts made by the Hong Kong Tourism Board (HKTB). This board is responsible for creating awareness among potential tourists about the potential of visiting Hong Kong for tourism purposes (Baggio and Klobas, 2011). The board is headquartered in the capital city of Hong Kong and an extensive network has been created in major countries that have the potential to bring tourists to the country such as China, Malaysia and Russia. There are also global offices in other countries and the roles of these offices is to raise public awareness concerning importance of visiting Hong Kong for tourism purposes, providing advices to governments regarding tourism-related projects and seeking government funding, monitoring products and services of the tourists board (Richards, & Munsters). HKTB uses a number of marketing channels that ensures its objectives are achieved. These include partnering with other countries such as China, conducting trade fairs. Currently, infrastructure of the country is being developed to meet a range of tourists needs from the mainland in China. Ansoff model has also been applied in order to promote tourism in the country. In this model, ways in which tourism business can grow is demonstrated and associated risks can be identified in each option. This matrix shows that tourism in Hong Kong can be enhanced by making use of the guidelines in the four quadrants of the matrix. In market development, it recommends that marketing of tourism should focus on targeting different geographical markets or other regions while using a range of channels such as online and direct advertisement (Reiber, 2009). In Diversification, in case where a certain tourism product does not become popular in the market, it may not be possible to affect another product. Thus it recommends the use of a range of tourism products when attracting tourists. The element of market penetration, it is recommended that loyalty schemes should be introduced and sales force should be increased. In the element of Product Development, the same product can be improved by producing a variety of the same product. Figure 1. Ansoff Model for promoting tourism in Hong Kong The model above has been use by the HKTB to promote tourism in a number of ways. For instance, in product development, HKTB has identified new tourist attractions and new potential customers through diversification of its products that are attractive to tourists (Burns, Lester & Bibbings, 2010). In improving destination partnerships, HKTB has invested in sought new markets using the same products and services offered to tourists through market development where new customers that have not been reached are sought to attract them to visit the country. In promoting community and stakeholder relationships, the Asnoff model of product development has been used by creation of new products that serve the same tourists who visit the country to enable them benefit from other products that ensure they get a variety of products (Cai, Gartner & Munar, 2009). In promoting destination governance, the HKTB has ensured existing market and products are promoted to tourism through market penetration. This involves improving the existing tourist attractions to ensure they have the competence to attract the existing tourists (Goeldner & Ritchie, 2009). In promoting destination communication and promotion, a range of integrated communication methods will be used to promote products and services in the tourism industry. The process of market development will be used to advertise products and services in the media by advertising existing products and services in the new markets. 3. Destination Partnerships Hong Kong can enhance its tourism marketing by engaging in partnership with China. By partnering with China, the number of annual visitors to Hong Kong is expected to increase in mainland cities. This partnership will enable people in mainland of China make their individual visits to Hong Kong (Matias, Nijkamp & Sarmento, 2013). Those who will be willing to see sights in Hong Kong can be allowed to apply to visit the country for personal purposes or as tourists and most hurdles removed before they can be allowed to travel to Hong Kong. When the partnership scheme is expanded with China, permanent residents in Shenzhen will be allowed to obtain multiple-entry visas to Hong Kong. Communications are also underway between the government of Hong Kong and the Chinese government with regards to border crossing and s focus on enhancing staffing as required to reduce long immigration queues (Leng & Zhu, 2010). When the partnership deals are made, it will be possible to make regular trips from Shenzen to Hong Kong for the purpose of buying soy sauce and other daily goods. In addition, the partnership is focused on allowing Shenzhen residents obtain multiple-entry visas to Hong Kong, for those who are not permanent residents. Partnerships with the neighboring countries such as Russia, Australia and New Zealand can be enhanced by creating laws that allow easy entry of travellers into Hong Kong (Goeldner and Ritchie, 2009). These include amending immigration laws for the purpose of enabling tourists move easily from these countries into Hong Kong. Furthermore, trade among these countries can be enhanced by promoting social connection in terms of common sports such as football that promotes political and economic relations between Hong Kong and Far East countries such as China (Hudson, 2008). It is expected that when the government of Hong Kong acts on these requirements, tourist will increase in the country and it will be possible to increase income from tourism. 4. Community and tourism stakeholder relations Tourism in Hong Kong can be enhanced by promoting the relationship between the community and stakeholders in a variety of ways. This involves an approach towards tourism that ensures the communities are beneficial from tourism while they create favorable conditions for promotion of tourism in the country (Ivanovic, 2008). A number of models are important in achieving this goal. One model that can be used to enhance the relationship between stakeholders and the community is development of public-private partnerships in tourism which can be achieved in a number of ways in Hong Kong (Matias, Nijkamp and Sarmento, 2013). This involves starting with public-private strategies, joint proposals for common regulations among partners, and involving in collective businesses among partner states. In the partnerships, each side will create favorable conditions that promote the other side. For example, stakeholder in tourism in Hong Kong such as the Hong Kong Tourism Board (HKTB) will create legislations that allow local people in the region do businesses along the major tourism areas to enable them get income (Pfister and Tierney, 2009). In addition, stakeholders in the tourism industry will improve infrastructure in terms of the nature of roads that lead to major tourist attractions. This will be beneficial to the community due to improved transport systems in the areas visited by tourists. Local residents can also benefit from tourism in the regions by getting employment in tourist attraction areas to enable them get income that improve their lifestyles. In return, tourists will benefit from the local people by obtaining a variety of goods and services for their personal benefits. At the macro level, there is the government of Hong Kong can recognize that for success to be achieved in the tourism industry, private enterprises must be promoted and this should be reflected during policy making processes (Richards and Munsters, 2010). At the regional levels, the tourism industry should be beneficial to the local residents by enhancing local businesses that are mostly small-scale businesses that provide employment for the local supply chains. 5. The destination governance and leadership The governance system of Hong Kong can be designed to promote tourism in a number of ways. This involves the amendment of laws that regulate tourisms and making them favorable for tourism in the country (Richards and Munsters, 2010). Leadership can also be promoted by appointment of qualified personnel to head tourism sector in the country and ensure this sector of the economy is steered in the right direction. The amendments of laws can be achieved by reviewing regulations to entry into the country and ensuring these laws do not prevent tourists from entering into Hong Kong. The government can also embark on improving tourist attraction sites by promoting security and infrastructure into these sites. The sites can also be renovated by increasing their capacities. For instance, game parks and game reserves can be expanded while natural sites can be improved by creation of access roads to the sites (Sweeney and Sweeney, 2008). Leadership of tourist attraction sites can be improved by employing qualified personnel to head the reserves based on merit. There should regular rehabilitation of tourist attraction sites and regular inspection to ensure the site is free from factors that do not promote tourism (Hudson, 2008). Governance structure should also be designed in a manner that reduces taxes on tourists who visit the attraction sites. There should also be regular training of personnel that work in tourist attract sites to promote their competence. Accommodation facilities can also be improved by creating a number of hotels and resorts that provide sanctuary to tourists, while laws should be amended so that tourists are able to visits the country with minimum restrictions (Ivanovic, 2008). Furthermore, laws can be enacted that prevent human activities in tourist attraction sites such as game reserves and natural site attractions. 6. Destination communication and promotion Integrated marketing communication refers to the process of using a number of using different channels to send messages as an interactive process (Baggio and Klobas, 2011). It involves means of informing, persuading and reminding consumers directly or indirectly about brands that are sold. Similarly, tourism in Hong Kong can be improved by applying integrated marketing communication techniques. There are number of integrated marketing communication tools that can be used within the tourism industry such as direct marketing, personal selling, public relations, sales promotion and trade shows. It also involves the use of the internet, sponsorships, packaging and word of mouth. Advertising in IMC can be achieved by paying for announcements by identified sponsors to assist in reaching large audiences, creation of brand awareness, helping in positioning of the brands and building of brand images (Hudson, 2008). The media that can be used in advertising include radios, TV, newspapers, magazines and directories. For instance, in Hong Kong, HKTB has used TV to advertise tourist attractions in the country, immigrants into the country are also issued with newspapers and magazines regarding tourist attractions in the country (Matias, Nijkamp & Sarmento, 2013). This creates awareness of these attractions and increases their chances of visiting the tourist attraction sites. The use of technology such as internet can also be useful in promoting tourism. HKTB has invested in the use of emails and web pages are used to advertise tourist attractions such as wildlife, accommodation facilities and its infrastructure to potential tourists (Reiber, 2009). Its limitation is that the visual representation is limited and the audiences are not assured that ‘hits’ will represent their interests. Public relations can be used to promote tourism industry through creation of product publicity, press releases, non-paid stories, corporate communication, lobbying and counseling (Goeldner & Ritchie, 2009). In Hong Kong, HKTB ensures public relations is maintained by employing agents who assist tourists at the sites of tourist attractions get the right information regarding the attractions and convincing them to return for similar purposes. 7. Recommendations future management and marketing of the destination organization There are other recommendations that need to be implemented by the Hong Kong government for the purpose of improving tourism in the country. For instance, it is recommended that China should reduce visa cost barriers to enable more of its citizen’s move to Hong Kong for tourism purposes. In Hong Kong, more tourists can be attracted by providing cheaper accommodation services to tourists and providing quality services to them in flexible manners (Chan, Chan & Lo, 2010). Meals in hotels should also be improved for the purpose of creating a pleasing experience to tourists. In addition, there is the need to apply a number of theories that have been suggested during the process of marketing tourism to other countries. This can involve applying the Ansoff Model to promote marketing of tourism in the country and in other parts of the world by applying the theories of the model to promote tourism in the country (Cai, Gartner & Munar, 2009). Functions of integrated marketing mix can also play a significant role in promoting tourism if applied in marketing tourism in the country. This can be achieved by enhancing awareness regarding tourists’ attractions in Hong Kong through use of media such as television and improving brand names of tourist attractions. Improvement of infrastructure is also a factor that needs to be considered during expansion of tourist sites both locally and internationally (Baggio & Klobas, 2011). There is the need to invest in improved roads that lead to tourist sites and proper renovation of facilities at tourists’ sites to promote popularity of these sites to tourists. In addition, it is necessary to ensure stakeholders in tourism industry and local community engage in healthy partnerships which ensures they are able to both benefit from tourism activities in the country . Laws should be enacted that allows mutual benefits between the stakeholders and tourists. The governance structure should also be focused on improving tourism in Hong Kong by creating laws which favor development of tourism (Veeck, 2011). These include reduction of restriction towards acquisition of travel documents such as visas and passports and enhancing international relationship with partner countries to promote tourism. 8. Conclusion This paper shows that Hong Kong provides an exciting destination for tourism purposes. It the management system of tourism activities in the country is also effective and there is more concern by the government to promote tourism in the country. This is supported by the existence of Hong Kong Tourism Board (HKTB) in the country that promotes activities that result into improved tourism in the country. This paper also shows that tourism has been successful in Hong Kong as a result of better partnerships and political relations with other neighboring countries such as China. This has promoted influx of people from China into Hong Kong. There is also diversity in the culture of people in Hong Kong and neighboring countries that promotes exchange of these diversities, contributing to improved tourism. Stakeholders and community a relation is regarded as a factor that has promoted tourism in Hong Kong. Stakeholder in tourism industry has created a number of benefits for the community in terms of employing them in tourist sites and allowing small scale businesses to be operated near tourist attraction sites. This has resulted into improved lifestyles of the local communities. Furthermore, the governance structure has been designed that results into improved tourist attractions. These include creation of government departments that manage tourism activities, improvement of infrastructure to tourist sites and legislation for protection of endangered species of plants and animals. This paper also shows the elements of integrated marketing communication and technology have been used to promote tourism in Hong Kong. Factors such as brand names, advertising and technology have played significant roles promoting tourism in Hong Kong. The use of technology has enhanced marketing of tourist attraction sites to possible tourists and has resulted into increased number of tourists in the country. However, there are other areas of improvement that need to be included in maximizing tourism potential of Hong Kong. These have been explained in the recommendations section. Generally, Hong Kong has a potential to attract a large number of tourists and improve its economy from benefits that result from tourism. 9. References . Baggio, R., & Klobas, J. E. 2011. Quantitative methods in tourism: a handbook. Bristol [UK], Channel View publications. Burns, P., Lester, J.-A., & Bibbings, L. 2010. Tourism and visual culture. V. 2, V. 2. Wallingford, Oxfordshire, U.K., CAB International. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=554592. Cai, L. A., Gartner, W. C., & Munar, A. M. (2009). Tourism branding: Communities in action. Bingley, UK: Emerald Group Publishing. Chan, M. K., Chan, M. K., & Lo, S. H. (2010). The A to Z of the Hong Kong SAR and the Macao SAR. Lanham: Scarecrow Press. Goeldner, C. R., & Ritchie, J. R. B. 2009. Tourism principles, practices, philosophies. Hoboken, N.J., John Wiley. Hudson, S. 2008. Tourism and hospitality marketing a global perspective. Los Angeles, SAGE. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=435381. Ivanovic, M. (2008). Cultural tourism. Cape Town, South Africa: Juta. Journal of Marketing Management,Vol. 34, No 5/6, pp. 667-686 Leng, T.-K., & Zhu, Y. (2010). Dynamics of local governance in China during the reform era. Lanham: Lexington Books. Matias, A., Nijkamp, P., & Sarmento, M. 2013. Quantitative methods in tourism economics. Heidelberg, Physica-Verlag. http://dx.doi.org/10.1007/978-3-7908-2879-5. Pfister, R. E., & Tierney, P. T. 2009. Recreation, event, and tourism businesses: start-up and sustainable operations. Champaign, IL, Human Kinetics. Reiber, B. (2009). Frommer's Hong Kong: With Macau. Hoboken, NJ: Wiley Pub. Richards, G., & Munsters, W. 2010. Cultural tourism research methods. Wallingford, Oxfordshire, U.K., CAB International. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=554596. Richards, G., & Munsters, W. 2010. Cultural tourism research methods. 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