Sustainable Tourism Development - Essay Example

Student Name: Tutor: Title: International Tourism Management Institution: Due Date: Introduction International Tourism Management focuses on the sustainable tourism development to understand and improve communities. This indicates that Tourism significantly contributes to the economic development of a given place, region, or state provided sustainable tourism is put at the forefront of community development. International Tourism is a very significant export industry. This is a result of the desire of travel and to meet different people, as well as make relations with the rest of other civilization, which has been an ongoing act in man’s history. Today, Tourism is perceived as travel for recreation, emerging as one among the most dynamic, global, and multi-million pound industry; although the industry is not clearly defined due to the fragmented nature of the product offered. Thus, tourism industry requires services of hospitality, leisure and lodging as well as transportations that are increasingly provided by a number of other industry sectors. Operating like other industries, the tourism industry has great impacts on the economy of the locations where it is practiced such as on regional, country or continental development. Such areas are identified as touristic destinies, and most of which are entirely dependent of tourism arrival, for their sustainable economic development (Pavlovich 2001). International Business Networks is the distribution and co-ordination of the geographically separated activities in various country locations. International expansion involves countless resources based on the knowledge of international markets as well as of specific regions and partners so as to minimize risks and costs. It is important to argue that knowledge acquisition achieved via interaction among firms within business relationships, can play a great role in circumventing the issue of limited international operations knowledge which affects small to medium enterprises. The current strong focus on globalization is linked to the growth of international trade as well as internationalization of firms. For instance, banks have internationally expanded through the creation of foreign presence in form of partner banks. This strategy is not only focused on achieving high profits through banking with foreign customers, but also to enable all customers have equal access to the benefits of international network conveyed by banks (Lindstrand 2003). Function and value of international business networks International business networks acts as formations through which firms learn in form of social exchange to co-operate and co-ordinate their activities globally. The capability of firms to interact increases their accessibility to, transfer as well as integration of knowledge that reside both inside and outside such firms. Research indicates that through the use of experience to run a business in a given market creates new opportunities which result in extended international activities as well as new and practical experiences. Therefore, resource commitments facilitate a deeper understanding of a market and the foreign customers of specific firms. This clearly indicates that a firm’s sustained international business operation depends on its previous business and market experiences. The gained experience can as well be applied in the continued business internationalization (Richards & Carson 2006). According to Chetty, Eriksson and Lindbergh (2006) knowledge on foreign countries is achieved easily than experience about a particular business relationship. It is apparent that gained experience serves as a model for continued business expansion. Thus, experiential knowledge is a critical resource when firms, particularly Small Medium Enterprises (SMEs) consider internalizing their businesses. Lindstrand (2003) examined that the relationships created with the business network are vital assets for the firms involved since they reflect the daily interactions such firms make with their network partners. As a result, individuals in such firms learn how to manage their business operations within the international markets. By interacting as well as operating business within the foreign market networks, firms in particular SMEs learn where to obtain, commit resources and determine which firms to connect with. Therefore, business networks provide experiences that are not only used to minimize uncertainties and risks, but also create opportunities for business expansion. It is important to note that knowledge generation within business networks is a requirement for and positively affects the performance of firms and their sustained international expansion (Blomstermo et al., 2004). The Tourism Virtual Business Network Model With the introduction of the internet, information technologies and developments within the field of e-commerce, a concern is no longer given on the existing traditional limitations and barriers. As a result, small or medium sized businesses are competing nowadays within global markets. Such businesses develop into groups known as the business networks so as to further advance both their internal and external capabilities and reach. “Through business network, actors become autonomous and connected to each other in form of flexible relationships that may change in accordance with the fast changes within the business environment” (Micela, et.al. 2002, p.89). Today, organizations are moving, or forced to shift from the relatively stable as well as slow-moving business networks, to more open digital platforms. This enables most of the business to be conducted across the rapidly formed networks accessible worldwide despite different complexities associated with the various business processes and computer systems. Much of the work on tourism development is forecasted on the successful implementation of organizational alignment through business partnerships or networks. Tourism networks, however, have been comparatively neglected as a field of academic study (Morrison, Lynch & Johns 2004). Davenport-Hines discovered that “The Nathan Brothers preferred to operate their international trading in form of ‘kissing kin’, and thus had a bewildering network that comprised of cousins as well as connections through marriage where they related to some loosely-defined agencies that carried generous commissions” (pg.141-2). It is clearly indicated that the international expansion of business was largely developed through family character as well as decision making based on family needs. Based on this model, tourism can be defined as the relationships as well as phenomena that arise out of journeys and the temporary stays made by people who primarily travel for leisure or recreational reasons. Although many researchers differ on the extent to which other purposes of travel such as for business, health or educational should be incorporated under tourism management, efforts are made to recognize that tourism on one side constitutes of a large leisure spectrum. Such relationships and phenomena occur in tourist destinations. Therefore, tourist destinations can be perceived as a system containing various components, including attractions, transports, infrastructure and attractions (Tinsley & Lynch 2001). Value of knowledge transfer partnerships and their benefits to tourist destinations Tourism is basic service industry, and thus its management practices objectively focus on the how efficient and effective both the information and knowledge is exchanged. In particular, this happens between the various organizations that collaborate so as to deliver composite products. It is important to argue that within the global tourism market, only destinations and not individual businesses which compete to attract and retain more customers (Ritchie & Crouch, 2003). Perhaps, marketing destinations is a complex and more difficult aspect of marketing within the tourism. Therefore, destinations are struggling to get the most appropriate ways of causing a major impact on the tourist market as well as what actually takes place within the destination. Although destination marketing seems to be an intrinsically complex and involving task, it is vital for all the tourist destinations to strive and become effective at marketing given the contemporary competitive global tourism market. In the 21st Century, it is important for tourism destinations to innovate and remain competitive, particularly in the global competitive environment. This calls for Tourist destinations to necessitate the development of innovation as a way of staying highly competitive given the increasingly global environment. The requirement for innovation gives thought to how destinations source, share as well as make use of knowledge. However, much of the work on knowledge management and its applications are more concerned with specific organizations rather than the real complex amalgamations of such organizations that exemplify destinations. The focus on the specific organization is applicable to tourism enterprises, government ministries as well as destination management organizations. Conversely, for knowledge management to work effectively as a tool to innovate the tourism industry, then a consideration has to be given on how it can benefit the destination level of a specified organization (Baggio & Coope 2010). A range of innovations within society, a shift from the rigid and packaged tourism models to the networked business have caused radical changes to the operating environment of tourist destinations. Therefore, for destination managers to be successful in such challenging environment, a new and smart approach that focuses on understanding how the various trends map onto the operation. This means that a new approach should be applied to break the mire of traditional thinking and view destinations as flexible networks of tourist organizations and enterprises. Perceiving destinations as free networks harness the role played by knowledge so as its management across the tourist destination, and thus taken as important tool for tourism competitiveness and sustainability (Cooper 2006). Destinations as networks of organizations Tourism, more than other economic sectors, entails building of formal and informal collaboration, business partnerships as well as networks so as to deliver a product. In Australian study, tourism is considered as the economic sector with increased inter-organizational networks (Bramwell & Lane, 2000). The flow of information and knowledge in a destination network are important mechanisms to develop the general behavior of a tourism management system. Therefore, innovation and economic growth are greatly influenced by such processes, and thus the manner in which the expansion takes place can determine the rate at which individual actors present and plan for their future actions at a given tourism destination. This implies that the structure of the tourism business network is important in determining the efficiency of the efforts made to share knowledge and innovate a destination, hence, remaining competitive (Argote & Ingram, 2000). Destinations are perceived as networks of organizations and communities, a situation where the destination operates through the movement of resources, for instance, information through the network. This view of destinations is clearly beneficial because within a knowledge economy, tourism destinations are expected to be innovative so as to remain competitive. It is through the management of knowledge that innovation of destinations is strengthened. Therefore, the ability for the managers of tourism destinations to understand how to manage knowledge across their complex network organizations is a basic requirement. Most of the tourism destinations comprise of Small and Medium Enterprises (SMEs), organizations which are knowledge averse. This indicates that the intervention of public sector is needed in order to establish supportive frameworks as well as constructive networks at destination levels. It is important to argue that theoretical interest is crucial in evaluating the processes of knowledge transfer within a complex system, a case with tourism destination as perceived from practitioners’ point of view. It has been examined that the opportunities for tourism business are to a larger extent affected by key factors including country economy, technological capacity, geographic location as well as enterprise dimension. Thus, a producer of small tourism located within the remote community may not have equal facilities to run own business, compared to one located in more developed destinations (Peters, Weiermair & Withalm 2002). Research indicates that international business networks play a great role in the strategic internationalization of Estonian small and medium-sized chemical firms. One of the major positive impacts due to the shift from a business network to a firm being introduced in a foreign market is increased support and access to information on the target market. However, the negative impact occurs as a result of firms dominating the business network, for instance, competitors and holding companies that restrict the firm’s internationalization (Chetty & Blankenburg 2000, p.79). The size of the global tourism industry and its wide set of relations, indicates that there is existence of large amounts of information that is being processed at various destinations. Today, the tourism industry is globally supported by a huge information network that interconnects all actors who develop its value chain. This business network is significant in the sharing, marketing as well as coordination of the tourism activities. They include Computer Reservation Systems (CRS’s), Internet based applications, Digital Interactive Television Applications (DITA’s) and Global Distribution Systems (GDS’s). The Internet based applications, provides tourism consumers with direct access to the touristic information, and thus able to make reservations without necessarily going through intermediaries. On the other hand, the Digital Interactive Television increasingly adopted as a business channel by the majority of the tourism operators. Since DITA is enabled with Internet accessibility and use, it is used to advertise the various touristic products and services to a larger audience through a television (Gretzel & Fesenmaier 2002, p.38-44). The e-Tourism market has grown rapidly, though dominated by big tourism organizations that provide normalized products and highly supported by influential marketing actions, strong communication links as well as access to the systems that provide value added services, for instance, the capability to remotely develop reservations in real time. A number of the large, small and medium enterprises that form Alternative Tourism, particularly those located within the remote communities is excluded from this restrict circle. The research on background to tourism destination can be based on both marketing and statistics, particularly for the tour operators as well as their agents. However, use of qualitative technique to understand a given phenomena as it occurs, upon which decisions and assumptions are based on, implies that greater understanding of the destination development as well as its links with the tourism business networks must be developed. It is still unclear as to how and why the exact manner through which the developed networks can be fully utilized in a locality and how they contribute towards the development of tourism destination. Conclusion Innovations within society, a shift from the rigid and packaged tourism models to the networked business have caused radical changes to the operating environment of tourist destinations. Tourism is recognized as the travel for recreation, emerging as one among the most dynamic, global and multi-million pound industries. The size of the international tourism industry and its wide set of relations is a reflection of how large amounts of information is being processed at various destinations. Business networks are significant in the sharing, marketing as well as coordination of the tourism activities. They provide experiences that are not only used to minimize uncertainties and risks, but also create opportunities for business expansion. Theoretical interest is fundamental to the evaluation of knowledge transfer process within a complex system of tourist destinations. The capability of tourist firms to interact increases their accessibility to, transfer and integration of knowledge that reside both inside and outside such firms. In the international tourism market, it is only destinations and not individual businesses which compete to attract and retain more customers. The management of knowledge strengthens the innovation of destinations. Most of the tourism destinations comprise of Small and Medium Enterprises (SMEs), organizations which are knowledge averse. Bibliography Argote, L., & Ingram, P., 2000, Knowledge transfer: A basis for competitive advantage in firms. Organizational Behavior and Human Decision Processes, 82(1), 150–169. Baggio, R & Coope, C., 2010, Knowledge transfer in a tourism destination: the effects of a network structure, The Service Industries Journal, 30(10), 1–15. Blomstermo, A., Eriksson, K., Lindstrand, A., & Sharma, D.D., 2004, The perceived usefulness of network experiential knowledge in the internationalizing firm, Journal of International Management, 10(3), 355-73. Bramwell, B., & Lane, B., 2000, Tourism collaboration and partnerships: Politics practice and sustainability, Clevedon, UK: Channel View Publications. Chetty, S., Eriksson, K. and Lindbergh, J., 2006, The effect of specificity of experience on a firm’s perceived importance of institutional knowledge in an ongoing business, Journal of International Business Studies, 37(5), 699-712. Chetty, S & Blankenburg, H.D., 2000, Internationalization of small to medium-sized manufacturing firms: a network approach, International Business Review, (9), 77–93. Cooper, C., 2006, Knowledge Management and Tourism, Annals of Tourism Research, 33 (1) 47-64. Davenport-Hines, R.P.T., “Glaxo as a Multinational before1963" in G. Jones (ed.) British Multinationals: Origins, Management and Performance (A ldershot, 1986). Gretzel, U & Fesenmaier, D. R., 2002, Implementing Knowledge-based Interfirm Networks in Heterogeneous B2B Environments: A Case Study of the Illinois Tourism Network pp 39-48 in Wober, K. W. Frew, A. J. and Hitz, M. Information and Communication Technologies in Tourism 2002, Springer Verlag, Vienna. Lindstrand, A., 2003, How to use network experience in ongoing international business, in Blomstermo, A., and Sharma D. D. (Eds.), Learning in the Internationalization Process of Firms, Edward Elgar, Cheltenham, UK, pp. 77-104. Micela, A. L. Roberti, P & Jucucci, G., 2002, From Individual Tourism organization to a Single Virtual Tourism organization for Destination Management pp 87-96 in Wober, K. W. Frew, A. J. and Hitz, M. Information and Communication Technologies in Tourism 2002, Springer Verlag, Vienna. Morrison, A, Lynch, P & Johns, N., 2004, International tourism networks, International Journal of Contemporary Hospitality Management, 16 (3), 197-202. Pavlovich, K., 2001, The Twin Landscapes of Waitomo: Tourism Network and Sustainability through the Landcare Group, Journal of Sustainable Tourism, 9(6), 491-504. Peters, M. Weiermair, K & Withalm, J., 2002, Small and Medium Sized Enterprises Alliance Through Research in Tourism (SMART-UP) pp 145-156 in Wober, K. W. Frew, A. J. and Hitz, M. Information and Communication Technologies in Tourism 2002, Springer Verlag, Vienna. Richards, F & Carson, D., 2006, Foundations of Innovation: The Role of Local Government in the Production and Distribution of Knowledge in Regional Tourism Systems Paper presented at the 2006 CAUTHE Conference, Melbourne. Ritchie, J.R.B., & Crouch, G.I., 2003, The competitive destination: A sustainable tourism perspective, Oxford, UK: CABI Publishing. Tinsley, R., & Lynch, P., 2001, Small tourism business networks and destination development. Hospitality Management, 20(4), 367–378. Read More

This strategy is not only focused on achieving high profits through banking with foreign customers, but also to enable all customers have equal access to the benefits of international network conveyed by banks (Lindstrand 2003). Function and value of international business networks International business networks acts as formations through which firms learn in form of social exchange to co-operate and co-ordinate their activities globally. The capability of firms to interact increases their accessibility to, transfer as well as integration of knowledge that reside both inside and outside such firms.

Research indicates that through the use of experience to run a business in a given market creates new opportunities which result in extended international activities as well as new and practical experiences. Therefore, resource commitments facilitate a deeper understanding of a market and the foreign customers of specific firms. This clearly indicates that a firm’s sustained international business operation depends on its previous business and market experiences. The gained experience can as well be applied in the continued business internationalization (Richards & Carson 2006).

According to Chetty, Eriksson and Lindbergh (2006) knowledge on foreign countries is achieved easily than experience about a particular business relationship. It is apparent that gained experience serves as a model for continued business expansion. Thus, experiential knowledge is a critical resource when firms, particularly Small Medium Enterprises (SMEs) consider internalizing their businesses. Lindstrand (2003) examined that the relationships created with the business network are vital assets for the firms involved since they reflect the daily interactions such firms make with their network partners.

As a result, individuals in such firms learn how to manage their business operations within the international markets. By interacting as well as operating business within the foreign market networks, firms in particular SMEs learn where to obtain, commit resources and determine which firms to connect with. Therefore, business networks provide experiences that are not only used to minimize uncertainties and risks, but also create opportunities for business expansion. It is important to note that knowledge generation within business networks is a requirement for and positively affects the performance of firms and their sustained international expansion (Blomstermo et al., 2004). The Tourism Virtual Business Network Model With the introduction of the internet, information technologies and developments within the field of e-commerce, a concern is no longer given on the existing traditional limitations and barriers.

As a result, small or medium sized businesses are competing nowadays within global markets. Such businesses develop into groups known as the business networks so as to further advance both their internal and external capabilities and reach. “Through business network, actors become autonomous and connected to each other in form of flexible relationships that may change in accordance with the fast changes within the business environment” (Micela, et.al. 2002, p.89). Today, organizations are moving, or forced to shift from the relatively stable as well as slow-moving business networks, to more open digital platforms.

This enables most of the business to be conducted across the rapidly formed networks accessible worldwide despite different complexities associated with the various business processes and computer systems. Much of the work on tourism development is forecasted on the successful implementation of organizational alignment through business partnerships or networks. Tourism networks, however, have been comparatively neglected as a field of academic study (Morrison, Lynch & Johns 2004). Davenport-Hines discovered that “The Nathan Brothers preferred to operate their international trading in form of ‘kissing kin’, and thus had a bewildering network that comprised of cousins as well as connections through marriage where they related to some loosely-defined agencies that carried generous commissions” (pg.141-2).

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