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Stakeholder management in tourism and hospitality

2. Framework of the tourism and hospitality industry and role of stakeholders:

(Burcu & Ozgur, 2008) The stakeholders needs and demands are grasped and taken care of immediately by organizations, predicated on the concept of stakeholder management. Regarding to (Svendsen, 1998), the key role of stakeholder management is to safeguard the organization from the detrimental impacts of the activities of the stakeholder. Some techniques like assessment, issue analysis, strategic communications, and formal deals or agreements should be utilized by the business.

(Huber, Scharioth, & Pallas, 2004), explained that organizations strive to gain the trust of the main stakeholders, who've a greater impact about them and with whom they may have constructive interactions. For any business, financial success is important and they'll use any tools at the trouble of the environment, members of staff, and/or local neighborhoods. This careless frame of mind will bring about losses and damages in relationships with the stakeholders. Both significant factors for your choice on stakeholders by a business are a) their likelihood of threatening an organization and, b) their likelihood of cooperating with a business. The two romantic relationship factors are cooperative potential and competitive danger. These two romantic relationship variables reflect the capability of stakeholders for co-operation and danger in a specific matter facing the business.

(Lim, Ahn, & Lee, 2005), stated that companies can adopt four possible categories for stakeholder management: a) reactive, b) defensive, c) accommodative, and d) proactive. Depending on the stakeholders potential for threat and cooperation, companies decide their postures and strategies for stakeholder management such as a) leading, b) collaborating, c) relating, d) defending, e) educating, and f) monitoring. (Clarkson Centre for Business Ethics, 1999), developed a set of the essential concepts of stakeholder management.

  1. The first principle highlights the requirement of figuring out stakeholders legitimate hobbies, which will be used in decision making procedures by a business.
  2. The second process refers to the necessity for communication between the organization and its stakeholders. The proposal with the stakeholder must reduce issues.
  3. The third concept reflects the idea that there may be dissimilarities with the involvement of stakeholders in the business. While the business may have official relationships with handful of stakeholders, other stakeholders are contacted in unofficial ways either through direct contact, news release or advertising.
  4. The fourth theory underlines the significance of balancing hazards and rewards among various stakeholders impartially and observes the need of distributing benefits to all functions.
  5. The fifth process highlights the necessity for assistance with general population and/or private entities with the sole objective to reduce dangers related to commercial practices.
  6. The sixth process relates the facet of respecting human protection under the law which are threatened by the present and future activities within an organization.
  7. The last process brings the attention of managers to identify their own difference of hobbies to normalize stakeholder human relationships in order to increase trustworthiness of firm.

3. Strategic Stakeholder Management: Tourisms Perspective

One of the top generators of earnings is the Travel and leisure sector which is also employment generating sector and acts as a medium of development. Travel and leisure sector has gained great importance as it generates economic development and success even in places which wouldn't normally be used as an economical source. The industrys coordinated activities; highly fragmented and diverse composition helps it be special and successful.

The travel and leisure sector could be contemplated as a system. As (Mill & Alastair, 2002) brought up, there are many reasons to view travel and leisure as a system. A few of them are:

  1. Interdependency in travel and leisure i. e. , all organizations in this sector are interrelated parts and work together to attain common goals.
  2. Dynamic and constantly changing characteristics i. e. it be influenced by outer influences such as politics uncertainty, warfare, international relations, terrorism, technological innovations, epidemics, and changes in demographic conditions.
  3. Complex sector with different kinds of activities and organizations.
  4. Intense competitiveness of tourism i. e. all sorts of tourism organizations have to vie with each other globally.
  5. Need for responsiveness. Travel and leisure is a sector where many elements which are indie and any change in a single factor can cause changes in other areas. Therefore, its important to keep up harmony of all parts. The stakeholder management techniques should be used to build the tranquility and forge strong relationships between the tourism organizations and their stakeholders.

4. Environmental fads in the global tourism industry:

(Dwyer, Deborah, Nina, Carolina, & Noel, 2008) Tourism is closely linked to the environment. The two significant reasons for determining the viability and appeal of a location as a tourist destination is the natural environment and climate conditions (Dwyer & Kim, 2003). The developments for tourism are based on features such as gaining quick access for people to natural or manmade environments. The concerns of stakeholders of travel and leisure which include experts has always centered on the ways travel and leisure development may offer opportunities for taking care of environmentally very sensitive areas and the conservation of unique conditions. (US Environment Program ((UNEP), 2002), reported that the focus is on tourism where it can help in reducing environmental pollution and use of resources.

The main environmental styles include change of environment, depletion of natural resources and loss of biodiversity:

  • Change of Environment:

The upsurge in release of concentrations of greenhouse gases influences the change of climate and global warming. Local climate change is a worldwide occurrence and its major effects are noticed at the neighborhood and regional level. Effects of climate change and warming tendencies include: climb in sea-level, changes to ocean currents, melting of glacial and polar snow, burning off of snow cover, high heat index and high diurnal conditions, and changes to precipitation habits (IPCC, 2007).

Climate changes are important in deciding the places preferred by travelers and also on the profitability of the industry through upsurge in costs of energy use.

Policies to lessen emission of greenhouse gas will invariably have an effect on the operator costs and destination competitiveness particularly for longer places (Dwyer & Forsyth, 2008).

  • Depletion of natural source of information:

The increasing paucity of natural resources required to steer commercial development gives rise to lots of results. The factors impacting on the availability of natural resources like food development, drinking water and energy, are increase in population and monetary development. The consequence of peaking in essential oil production, often called Peak Petrol, will raise the expenses of fossil gas based energy resources.

Peak Petrol refers to the maximum rate, i. e. top of development of world olive oil to a spot beyond which it goes to permanent drop. The decline in creation of olive oil along with upsurge in demand will lead to increase of fuel costs. Consequently, the new carbon economy is defined to thrust the want for energy efficiency and investment in renewable varieties of energy. In future, 50 percent of the worlds people will face scarcity of water credited to scarcity of drinking water resources. The arable land and local bush land will reduce intensive agriculture and broad-scale land clearing anticipated to requirements for higher food production.

  • Loss of bio variety: (United Nations Environment Programme (UNEP), 2003), reported that the main danger to lack of varieties biodiversity is habitat damage. Loss of biodiversity is expected to substantially influence those places that highlight mother nature centered or eco tourism.

Analyzing Marketing Opportunities & Problems: The Macro-environment

(Amy, Eliza, & Cynthia, 2009) The major macro-environmental causes realize and discuss the have an effect on the power of hospitality industry to market its offerings. All organizations in the hospitality industry function in a constantly changing macro-environment, and so giving potential customer for marketers to conduct business or pose threats to the companies. The environmental changes have to be monitored shut before marketing strategies are believed by companies. The hospitality marketers must analyze and take notice of the six major causes (demographic, economic, politics/legal, social/cultural, technological and natural/ecological), as shown below:

Figure 1: Macro-Environmental Forces



What it is?

Relevant indicators

(Types of what to examine?)


Characteristics of men and women that framework the geographic device of analysis as country, state, region.

Population size, density, gender, era structure, occupation, geographic distribution, ethnic mix.


Issues affecting the type and journey of the market in which a business operates.

Disposable income, power of purchasing, interest rate, GDP progress, inflation, consumption design, unemployment rate.


Issues related to electoral politics, legislative and legislation, including regulatory organizations and stresses from interest categories.

Government balance, Control of wage/ price, Execution of legislation such as identical opportunities, health insurance and safety, tax insurance policy, lawsuits, patents/ copyrights.


Changes in product/service/process technologies.

Activities in Research and development, applications of knowledge, information management, development of new product / service, improvement in productivity.


Values people hold and broad tendencies in society

Research and development activities, new product/ service development, output improvement, applications of knowledge, information management.


Issues regarding environmental sustainability.

Water and quality of air, solid misuse, energy management, conservation, recycling.

Table 1: Macro-environmental Forces

5. Market research

Importance of Psychographic Research

(Yvette & Felix, 2004) (Wells, 1975), identified Psychographic research as quantitative research designed to place consumers on internal dimensions. Relating to (Gladwell, 1990), this type of research analyzes consumers attitudes, perceptions, needs, interests, viewpoints, activities, and daily lifestyle. (Shih, 1986), regarded that Psychographics is very significant and relevant and (Abbey, 1979) explained that its very important means to provide more information beyond the demographic characteristics. Abbey suggested that psychographic variables produce major distinctions between the groups of consumers, and these differences were bigger than the distinctions made by the demographic profiles. (Mayo, 1975), stated that psychographics are useful than demographics in detailing consumers because they identify better between them (Ryel & Grasse, 1991).

The market segmentation has found a very important means in Psychographics. (Gladwell, 1990), seen that psychographic characteristics of visitors have to be examined completely by marketing consultancy if their places have to be marketed efficiently to vacationer. Psychographic variables are helpful in spotting numerous kinds of tourists, distinguishing their segments and differentiating between your sections (Schewe & Calantone, 1978). Psychographic methods provide complete profiles of tourists and give the marketers a clear picture of the travellers they are appealing to. Psychographics can't be independent even though psychographics has a comparative benefit over demographics, (Schewe & Calantone, 1978). In order to understand a consumer market better, marketers should use psychographic data and also other conditions such as demographic, geographic, or behaviorist. Psychographic data needs to be incorporated in its research studies of the tourism and hospitality industry to take advantage of the knowledge of its customers.

The data was collected via a qualitative research method. Qualitative methods offer diverse empirical processes intended to illustrate and interpret the experience of individuals in a context specific setting up. Data was collected from 30 associates via semi-structured, in-depth interviews. Local residents, governmental, non-governmental and academics stakeholders were considered in order to acquire the thoughts and opinions locally, regionally and nationally regarding the implementing sustainable tourism development.

The concept of sustainable tourism development became important anticipated to fact that local residents get excited about travel and leisure planning and decision-making. (Jackson, 2000). A sampling strategy was attained to ensure residents participating were ambassadors of the cross-section of the community. The sampled residents included those who resided in the travel and leisure/non-tourism zone and were straight/indirectly involved with and/or influenced by tourism activities. Lots of the interviewed residents and who had been mixed up in industry were employed as local tutorials or owners of home stay lodging and resorts, or souvenir and food catering retailers. In-depth interviews found involvement of 20 local residents. Convenience sampling constituted a technique of non probability that attempts to get a sample of convenient elements which is less expensive and less time-consuming when compared with other sampling techniques (Malhotra, 2004).

Governmental institutions acquired an essential part in lasting travel and leisure development initiatives. Therefore, they participated in the study and to assist in building a swell of other respondents. This was considered the most likely method, as the researcher was not up to date about the formal or casual network associations locally (Jennings, 2001). The researcher opt for few respondents included decision making for the destination i. e. Town Council, Sub-District Administration Corporation. Other relevant stakeholders interviewed were the neighborhood holiday office, a non-governmental business and academics. Totally 10 governmental respondents were interviewed. Interview questions related to the sustainable tourism development notion and stakeholders were developed. These questions were directed to five local residents in August 2012. The interviews resulted in alterations in: (1) interview time and how respondents were approached, and (2) the interview questions using simpler and non-technical terminology. Then, in-depth interviews were conducted in Sept 2012. In order to gain further insights and data, the questions were open up finished. The interviews were registered, transcribed and structured based on the interview questions.

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