Htt 770 chapter 1

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HTT 770: TOURISM COLLABORATION & PARTNERSHIP BY: NORHASIMAH BT HAMIM 2013838972 MASTER IN TOURISM MANAGEMENT 1.0 INTRODUCTION: COLLABORATIVE & PARTNERSHIP IN TOURISM PLANNING

Transcript of Htt 770 chapter 1

Page 1: Htt 770 chapter 1

HTT 770: TOURISM COLLABORATION & PARTNERSHIP

BY:NORHASIMAH BT HAMIM

2013838972MASTER IN TOURISM MANAGEMENT

1.0 INTRODUCTION:COLLABORATIVE & PARTNERSHIP

IN TOURISM PLANNING

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1.1 Conceptual Background

Collaborative arrangements for tourism planning involve face-to-face interactions between stakeholders who may be in the public, semi-public, private or voluntary sectors, including pressure and interest groups.

Partnerships involved in tourism planning usually bring together interests in the same destination but in different sectors, or else parties in different destinations but with mutual interests in one issue or related issues.

Key reason: The belief that tourist destination areas and organizations may be able to gain competitive advantage by bringing together the knowledge, expertise, capital and other resources of several stakeholders (Kotler et al., 1999).

All the case study cross-sectoral partnerships are engaged in developing policies and planning that go beyond basic tourism questions: they also deal with broader economic, social, and environmental issues.

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Specific highlight is to assess the potential for to contribute to the wider objectives of sustainable development.

In theory, collaborative approaches should help to further the core principles of sustainable tourism: Collaboration among a range of non-economic interests might promote more

consideration of the varied natural, built and human resources that need to be sustained;

There may be greater potential for the integrative or holistic approaches to policy-making that can help to promote sustainability (Jamal and Getz,1995 and 1996; Lane, 1994);

Might lead to a more equitable distribution of the resulting benefits and costs; Broad participation could help in democratize decision-making, empower

participants and lead to capacity building and skill acquisition amongst participants and those whom they represent (Benveniste, 1989; Roberts and Bradley, 1991).

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1.1 Conceptual Background

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Because of the complexity of tourism issues, both the resources and capacities to affect an issue can be dispersed among several stakeholders – there are potential mutual and collective benefits from stakeholders collaborating with each other.

‘Collaboration occurs when a group of autonomous stakeholders of a problem domain engage in an interactive process, using shared rules, norms and structures, to act or decide on issues related to that domain’ (Wood and Gray, 1991:146).

The definition can also include partnerships that form around broad strategic issues as well as around a highly specific concern within an individual project.

Tourism collaboration ‘may be highly structured, characterized by legally binding agreements, or may be quite unstructured verbal agreements between participating organizations’ (Selin and Chavez, 1995:845).

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1.2 What is Collaboration and What are Partnerships?

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Focused on key issues of its formation, types of alliances, selection of alliance partner/s, governance structures, and its performance and outcome in various tourism sectors such as destinations, airlines, hotels and distribution channels.

Theoretical Perspectives and Conceptual Framework of Tourism Alliance and Networks: Resource Dependence;

Corporate Social Performance and Institutional Economics;

Strategic Management/Social Ecology;

Microeconomics;

Institutionalism; and

Political Theory.

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1.3 Alliances and Networks in the Tourism Industry

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The success of alliance depends on the level of inter-organizational trust, commitment, interdependencies, coordination, communication and information exchange.

Morrison (1994) introduced ‘tripartite’ model: Member-controlled, single-line specialist alliance of HMS alliance; and

Formation of VMS alliance with a multi-line public sector agent.

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1.3 Alliances and Networks in the Tourism Industry

Customer

National Tourism Board (VMS)

Small Hotel Hotel Consortium (HMS) Consumer

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Tourism System and Network of Inter-organizational Relationships: Hollaway (1998) described it as the networks and chain of distribution in travel

and tourism businesses involving various components.

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1.3 Alliances and Networks in the Tourism Industry

Product Public SectorSupport Services

Public SectorSupport Services

Accommodation Man-made AttractionsCarriers

Tour Operator and Broker

Travel Agents

The Tourist

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Key Issues of Alliances: Long (2000) highlight the factors that lead to the development of formal

collaborative arrangements in tourism development.

Motivations for Forming Strategic Alliance in the Tourism Industry:

a) Globalization and Competitive Advantage;

b) Convergence of Consumer Need and Preferences;

c) To Achieve Economies of Scale;

d) Reach and Penetrate Target market;

e) Survival and Innovation; and

f) Resource Dependency.

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1.3 Alliances and Networks in the Tourism Industry

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The Selection of Alliance Partners Medcof (1997) introduced four (4) referred to as the ‘Four C’s: Capability,

Compatibility, Commitment and Control’.

Choice of partner(s) is an important factor as it contributes to the success of an alliance and partnership especially in tourism sector, where the sectors are interlinked and inter-dependent in providing services to travellers.

Governance Structure of Tourism Alliances The factors that contribute to governance style are social and cultural

environments, the purposes of the alliance, the stages in the life-cycle, financial, human and operational resources, and size as well as duration of the relationship (Palmer, 1998).

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1.3 Alliances and Networks in the Tourism Industry

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Dynamic and Evolution of Alliances and Networks in the Tourism Industry A Classification of Tourism Partnerships (Adapted from Waddock, 1991)

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1.3 Alliances and Networks in the Tourism Industry

Systematic Programmatic Project

Nature and focus of partnership

Usually informal arrangements to promote destination and/or tourism as an industry.

Usually time-limited, but renewable partnerships that aim to develop and implement a tourism development program.

Partnerships established for the purpose of devising and implementing a specific project.

Examples National and regional level advisory groups.

Local and regional tourism initiatives.

Visitor and traffic management initiatives.

Typical representation

Senior management from the tourism industry.

Local and regional planners, politicians, businesses and communities.

Specialist managers and steering groups.

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Tourism Alliances and Networks in Marketing of Destination

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1.3 Alliances and Networks in the Tourism Industry

Situation Analysis

Environmental Analysis Resource Analysis

Goal Formulation

Strategy Formulation

Target Market Strategy

Positioning Strategy

Marketing Mix Strategy

Organizational Design

Management Supporting System

Analysis of Current Product

Product Market Expansion

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Several aspects of alliance formation such as the symmetry and dependency, and alliance functioning were studied and discussed.

The relevant questions related to those issues are: What are the types of marketing alliances and network relationships forged

between the NTO, Tourism Malaysia and profit and non-profit organizations in Malaysia?

What are the factors that influence the development on inter-organizational alliances in the tourism industry?

Which firms form alliances and what are the criteria used in selecting partner/s?

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Conclusion