The Growth of Tourism in Hong Kong - Essay Example

? Tourism Policy and Planning Introduction This research paper focuses on Hong Kong as a major tourism destination in the world. I will focus on the development of tourism in Hong Kong before and after 1997.Over the last decade, Hong Kong has changed into a modern and exciting city. It offers to its visitors the cosmopolitan amenities they expect from big cities and also a unique treasure trove of cultural attractions. Hong Kong is one of the most visited tourist destination in the world (Quan, 2013).Hong Kong is located in Southeast Asia and is one of the countries in the world which were colonized by Britain. Hong Kong offers visitors the opportunity to experience the glimpse of its culture which is a fascinating experience as this great city has successfully combined the essence of an ancient and a modern world. Hong Kong acquired independence from Britain and became part of main land china in 1997. This transition changed tourism in the city a lot as many infrastructures were built afterwards. Natural parks, Disney land, and different hotels were built later. Since then, tourism has become an important role of Hong Kong. (Tsang, 2007). According Kwong (1997), Hong Kong has at least 118 hotels with about 43,866 rooms with an average tenancy rate of 85 per cent and an average length of stay of overnight visitors of 4 nights. The Tourism Commission (TC) of Hong Kong was mandated in May 1999 by the government of mainland china to put in place a variety of tourism growth efforts and to provide better policy hold up and leadership on the part of government to the growth of tourism in Hong Kong. The commission aims to make Hong Kong Asia’s premier international city and a world-class destination for leisure and commerce tourists. The Hong Kong Tourism Board (HKTB) and the government work in agreement to bring in the community. It is healthy for the tourism industry that the community and the government work closely together. Literature review Tourism is travelling and staying in an unusual environment for leisure, recreation, or business among other purposes. Building on this understanding, it is agreeable that the tourism industry has experienced a substantial growth for the duration of the last century. Currently, tourism has become a global activity of leisure and recreational purposes, where most travelers spend time exploring and resting in attraction sites that are available around the world. Such attraction sites have unique features that are favorable to human enjoyment and perceptions. The features include great buildings, artwork, new cultures, and languages, historical and geographical sites, amongst other reasons. Such features in a given destination make tourists to travel several miles in order to experience their impacts towards the society. It is easy to wonder what tourists/consumers bring back after several days of total relation and or enjoyment of the great facilities, wonderful views and delicious food. Nonetheless, experience is an important benefit of the vacation. Consumers’ needs and wants noticeably differ, but gaining some positive (or negative) experiences is a predictable result of consuming the services/products they buy. Experience, or rather consumption experience, relates to the total outcome to a consumer from the combination of goods, environment as well as services purchased. Altogether, the nature of such experiences is vital for the tourism and hospitality industry especially considering that products associated with this industry are always experiential. This assessment demonstrates an understanding of the experiential nature of tourism and hospitality marketing. This is achieved through addressing various issues such as; the nature of the experience economy, importance of experiences in tourism and hospitality, and the concept of experimental marketing from a broad perspective. The first issue to examine is the nature of the experience economy. Economic experience is rather a new vision for a new economic era. In this fast growing economy, consumers are after affective memories, symbolism and sensation which combine to generate a long-lasting personal experience. In today’s world, conventional marketing approaches focusing on functional product attributes and quality are ineffective. Rather, consumers look for experiences that engage them personally, dazzle their senses and stimulate their minds whilst indulging in fun or fantasies. What is more, experience economy entails search for unique experiences by consumers. Therefore, consumers go beyond mere consumption of products and services, since the consistent high level of service and product quality cannot be used to discriminate the choices for the consumers. Experience economy is mostly associated with the four realms of experience including education, entertainment, esthetics as well as escapism. These realms are differentiated in terms of participation and involvement of consumers. The esthetics and entertainment dimensions involve passive participation, and a consumer does not necessarily influence the experiential outcome. On the other hand, education and escapism dimensions entail active participation since consumers play a significant role in their subsequent experience. Altogether, experience economy revolves around these realms, and combines to create the optimal consumer experience. Tourism destinations and resources are important factors related to the tourism industry. An important common feature of destinations is that they can be marketed and planned as an identified place and most have established systems and procedures for local government purposes (Holden, A. 2005). According to Holden (2005) all tourism destinations share common characteristics and if they were recognized, it would facilitate their design and development. He listed the characteristics according to the definition of destination as: • Natural environmental features and processes. • Economic structure and development. • Social structure and organization. • Political organization. • Level of tourism development. Holden (2005) also points out that within a tourist destination, residents and tourists share certain characteristics and elements while other elements are used exclusively by one group or the other. Tourism is becoming a key industry in Hong Kong. In the last decade, tourism in Hong Kong has developed rapidly. According to the Hong Kong tourism board (HKTB), “overall arrivals to Hong Kong totaled to over 36 million in 2010, an increase of about 21.8% over the previous year. Tourism is a major foreign exchange earner for Hong Kong, and this money is the foundation of development of industry. Industrial development needs a lot of money as investment; this amount money lays a solid foundation for industrial development in Hong Kong. Tourism also creates employment to the people of Hong Kong. Tourism provides jobs to over four million people in Hong Kong according to the research by the world tourism council, 2009. Unemployment has become a serious problem throughout the world; however tourism in Hong Kong does have positive effects of the society, and the unemployment rates are considerably low compared to many other countries in the world. Besides positive effects, tourism also has negative effects on Hong Kong’s population such as education. Most tourism workers despise education because most of them do physical lab our, for example, cleaning hotels, selling goods to customers among other odd jobs. Tourism is not solely to blame for this; Hong Kong’s education system is poor and is not properly managed. The government is paying less attention to education and poor education and this has long-term negative impact on the country. (Sweeting, 2004). Tourism has also led to increased prostitution and HIV/AIDS prevalence in Hong Kong and other parts of Hong Kong. In the end of 2010, there were 470,000 people who were living with HIV, and in 2010, 40,000 people died from AIDS (Gosh, 2002). AIDS is a sexually transmitted disease which can only be controlled by controlling the sex industry and through educative measures and awareness. SWOT ANALYSIS Strengths A wide range of tourism sites and structures Presence of already established reputation for the destination Proper destination processes and management Good customer relationships Proper customer care Distribution processes Weaknesses Lack of proper market penetration Presence of other tourist destinations Poor access in distribution services to some remote regions Low levels of customer retention Absence of proper marketing skills Unreliable marketing processes/service Opportunities Conducive political environment in the region Reduced personal taxation Improved transport systems in the area Growing economy status Presence of new channels for distribution Threats Changes in taxes Presence of new channels of distribution Increase in taxation Changes in customer taste and preference Presence of competing destinations Changing population age Current economic instability Low income levels of possible consumers Changing customer base Challenges facing Hong Kong as a tourism destination Hong Kong is facing increased competition from other tourism destinations looking to grab a piece of the regional and global tourism pie, with Vietnam, Laos and Cambodia all experiencing double-digit growth in arrivals. The challenges faced by Hong Kong’s tourist industry are currently fluctuation in the security situation, maintenance of price competitiveness and changes in the world economy (Kwong, 1997). Hong Kong’s political organization is also to blame for the decline of its tourism industry. The country’s political situation is occasionally unstable (Cooper and Michael, 2007). Political turmoil does not affect tourism as such, though, as tourists are not very interested in politicking. On the other hand, deterioration in the security situation can be perceived as a huge risk. If the unrest spreads and escalates, tourists’ fear of insecurity will naturally intensify, and the perception of weakened security will have an impact on travel plans. If the unrest spreads to key tourist areas, it could significantly damage the tourism industry – Hong Kong is, nevertheless, still a fairly safe destination. Increasing inflation is also a challenge facing Hong Kong as a tourist destination. The forecast is that inflation rates in Hong Kong will increase at a considerable rate. The inflation is fueled by the increasing crude oil prices, but the problem is global. The Hong Kong dollar is under upward pressure, and if its value increases this would have a negative impact on the tourism industry. Hong Kong’s tourism industry usually faces long term challenges too. Although tourists are offered a wide range of services, there is need for improvement in the infrastructure and in road traffic safety in particular. Berger (2007) suggests that more attention should be given to conserving the natural environment else tourism will suffer for long if the environment is placed with a heavy load. Many tourists seek various types of activities as well as natural sceneries and authentic cultural experiences. According to Beirman (2013), there is need to seek other markets for Hong Kong’s tourism industry to guarantee its survival in the near future. Hong Kong’s strategic location in Asia puts her at a better place to fight competition than her neighbors (William, 2012). Hong Kong needs to put in place measures that will ensure that she attracts more visitors annually than any of her competitors. Hong Kong and India are rapidly becoming prosperous, and their population sum is more than a billion people. Williams (2012) says that an increasing number of people are beginning to travel abroad and Hong Kong has what it takes to meet this growing demand in the tourism industry. Hong Kong’s close location to mainland china, India and Hong Kong is a factor which will significantly influence the growth of her tourism industry in the future. All in all, the future of Hong Kong’s tourism industry looks good (Hansel and Gerald, 2008. pp. 203-320). Recommendations: Hong Kong needs professional management to attract tourists and well established service delivery mechanisms to continue attracting more tourists. Infrastructural development should be done in order to increase the number of tourists visiting Hong Kong. Long-term and proper education should be provided to the population in order to improve service delivery in the tourism industry. Marketing should be done worldwide in order to encourage more tourists to visit Hong Kong (Beirman, 2013). However, information on the current trend should be provided by the tourism management authorities to potential visitors, this will help counter the increasing competition against Hong Kong. In order to promote Hong Kong and make it a major tourist destination, it is appropriate that we identify the nature of resources and how they suit the audience. For Hong Kong region, the targeted market is the one that likes everything. This means that the city should be able to provide diverse services and resources to the targeted market with different environmental, sociological, and cultural aspects. Basically, the visitors targeted at Hong Kong region are mainly the Latino Americans. They come to the region mainly for its unique services and greenery plus other historical resources. Foreigners from different countries also visit the country due to environmental resources, the people’s culture and historical preservations, among others. Generally, Hong Kong’s targeted market is of different lifestyles and any group including married couples, singles, and families have something to gain from the place. This is because Hong Kong offers clean, green and unique resources forming the pride for the area (Rewi, 2010). Although the current status of Hong Kong is appreciable for its uniqueness and what it has to offer, it should be observed that there are several approaches that can be applied to improve its current status and make it the favourite destination for many. The environmental resources include gardens, parks, and beaches. It is necessary that these features are developed through conservation efforts. Lowering prices is another approach to improve the earnings from these environmental resources. Maintenance of wildlife is necessary as well as promotion the infrastructure to these regions. The surf schools and regional council can also make arrangements to increase Hong Kong’s appeal to the people. Cafes should be made classic and also be brought closer to the people. Actions should be put in place to prohibit littering and pollution of these resources. People who contaminate beaches and parks should be fined. The main idea is to increase Hong Kong’s appeal by making sure the environmental resources have been conserved and properly developed. Hong Kong region has a culture and history that is available for tourists. However, the current cultural resources can be elevated such that they become the best attractions to the region. Some cultural sites are very interesting resources of the area. Enhancing these resources will help enhance the tourist experience in Hong Kong. Improving the structures can help increase the number of individuals who visit the region. Proper categorization of the available resources and their historical relevance will help improve the number of individuals visiting the city. The use of marketing strategies can help increase the number of people visiting the region because majority of the Latino Americans will be made aware of their existence. The tourism website in the country should also include the materials and attractions available in the city. Although the social resources in Hong Kong are considerable, it is necessary to make them more attractive and available to the tourists visiting the city and its environs. This can be promoted by organizing more events such as Maori cultural practice and their daily performances. The ceremonies and festivals held in the city can also be improved in terms of quality and frequency. As well, the social amenities such as ethnic festivals and multicultural events can be promoted to become tourist attractions. More Maori events can also be staged in different centers where the tourists will find comfortable and appealing. Advertisement is another approach which can play a huge role in promoting these resources. Fashion events can also be displayed as an aspect of cultural inspiration based on the culture of the local people. More time should be allocated for visitors and make sure the police have been instructed to maintain security and prevent crimes in the city. Conclusion Tourism in Hong Kong is the main industry that attracts millions of tourists annually. This earns the city millions of dollars which are used for infrastructural development. Hong Kong offers a friendly environment for tourist attraction. Tourism has a social impact on the population. The people of Hong Kong are open to strangers and accept other people to visit their beautiful land provided they do not alter their social life, but enrich them. The potential of culture, nature and beauty of Hong Kong must be maintained by the authorities of Hong Kong for it to continue attracting more tourists. References Tsang, S. 2007. A Modern History of Hong Kong. London: I. B. Tauris & Company, Limited. Beirman, D. 2013. Restoring Tourism Destinations in Crisis: A Strategic Marketing Approach (Cabi). Kwong, K. 1997. Tourism and the Hong Kong economy. Hong Kong: City University of Hong Kong Press. Cooper, C. and Michael, M. 2007. Contemporary Tourism; effects of political instability on Hong Kong. Kindle ed. Gosh, L. 2002. Prostitution in Hong Kong: Myth and Reality. Hansel, S. and Gerald, L. 2008. Tourism demand modelling and forecasting-A review of recent research. 29 (2), pp. 203-320. Holden, A. 2005. Tourism Studies and the Social Sciences. Sweeting, A. 2004. Education in Hong Kong, 1941 to 2001. Hong Kong: Hong Kong University Press. Quan, K. 2013. "And the World’s No. 1 Tourist Destination Is …. time.com, 1st June. Williams, C. 2012. Southeast Asia on a shoestring. Footscray, Vic.: Lonely Planet. Ingham, Michael. (2007) Hong Kong: A Cultural History. Oxford University Press Read More