THE ROLE OF SMALL BUSINESS IN THE TOURISM INDUSTRY

Get Complete Project Material File(s) Now! »

The importance of tourism

It is generally accept ed that tourism can play an important role in the regional development of developing countries th rough the creation of work opportunitie s (Bryden, 1973; De Kadt, 1976; Britton, 1989; Singh et al., 1989; Burns, 1999; Ayres, 2000; Coccossis, 2001; Fayed and Fletcher, 2002; Theuns, 2002; Balaguer & Cantav ella-Jorda, 2002). The majority of African governments acknowled ge tourism as a source of growth (Christi e & Crompton, 2001:1). They recognis e the fact that, within the boundaries of an appr opriate policy environment, tourism can contribute immensely to economic and s ocial development, including poverty alleviation (Ashley et al., 2000). This potential is also acknowledged by the New Partnership for Africa’s Deve lopment (NEPAD), which has presented to the international community the first African development strategy which was entirely self prepared (Enoki, 2002:64). It is also accepted that, although the industry is characterised by small to medium enterpri ses (SME’s),1 there is a shortage of relevant data and concurrent research concerning the successful development of these tourism related SME’s and their ro le in regional economic development (Morrison & Thomas, 2004; Ro gerson, 2004). Furthermore , the high quality and personal requirement s demanded by the new tourist are best served by SME’s who are potentially flexible enough to satisfy such discerning visitors (Keller, 2004; Poon, 1993).

Small businesses in the tourism industry

One of the key c hallenges identified by the Department of Touris m and Environmental Affair s (DEAT), (2000), is the importance of stimulating and supporting emerging touris m entrepreneurs, and of maxi mising opportunities for the SMME sector. Thomas (2004:10) is of the opi nion that there are factors that distinguish the study of small firms in tourism from small firms in other sec tors. According to him there are areas of common interest, probably mo st notably relating to job creation and economic development, and the impact of management interventions, such as training or marketing, on business performance.

Integrated development planning

On the 1 st April 1997, the Western Cape Tourism Act No 3 of 1997 was promulgated. It provided for … the establishment, appointment, funding, powers and functions of a representative and effective tourism structure in the Western Cape which will facilitate the promotion, support and development of tourism to and in the Western Cape, and to provide for matters incidental thereto. Similarly, the Municipal Systems Act, 2000 (Act No 32 of 2000), provides the primary statutory context for the preparation of an Integrated Development Plan (IDP) by all spheres of government as the basis to its intervention strategies. This r aises the question: To what degr ee do local government st ructures make use of Integrated Development Planning (IDP ) to fulfil the dev elopment planning function?

Problem statement

The main problem can thus be stated as follows: Can a strategy be formulated to stimulate SMME development and concurrent job creation among SMME’s operating in the tourism sector of the Southern Cape, and can such a strategy be depicted within a framework of a development model?

DECLARATION
ABSTRACT
ACKNOWLEDGEMENTS
INTRODUCTION
CHAPTER ONE: GENERAL ORIENTATION OF THE STUDY
1.1 BACKGROUND TO THE STUDY
1.1.1 The importance of tourism
1.1.2 Planning for tourism
1.1.3 Benefits of tourism
1.1.4 Small businesses in the tourism industry
1.1.5 Integrated development planning
1.1.6 Development of tourism–related SME’s
1.2 FORMULATION OF THE RESEARCH PROBLEM
1.2.1 Rationalisation
1.2.2 Problem statement
1.3 THE AIM AND OBJECTIVES OF THE STUDY
1.4 IMPORTANCE OF THE STUDY
1.4.1 Contribution to the economy
1.4.2 Contribution to job creation
1.4.3 International importance
1.4.4 Contribution to Eden District Municipality
1.5 RESEARCH DEMARCATION
1.6 SUMMARY
CHAPTER TWO: RESEARCH DESIGN AND METHODOLOGY
2.1 INTRODUCTION
2.1.1 Organisation of chapters
2.2 THE RESEARCH PURPOSE AND APPROACH
2.2.1 Aim
2.2.2 Approach
2.2.3 Quantitative approach
2.3 RESEARCH METHODOLOGY
2.3.1 Research design
2.3.1.1 Secondary data search
2.3.1.2 Survey research – structured telephone interview
2.3.1.2.1 Background and design
2.3.1.2.2 Pilot testing
2.3.2 The layout and content of the questionnaire / interview schedule
2.3.3 Population and sample size
2.3.3.1 Population
2.3.3.2 Limitations
2.3.3.3 Sampling
2.3.3.4 Stratified random sampling
2.3.3.5 Precision
2.3.4 Sample backup
2.3.5 Training of interviewers
2.3.6 Execution of the survey
2.3.7 Information capture and analysis
2.4 RELIABILITY AND VALIDITY OF DATA
2.5 SUMMARY
Section 1
CHAPTER THREE: THE ROLE OF SMALL BUSINESS IN THE TOURISM INDUSTRY
3.1 INTRODUCTION
3.2 DEFINITION OF KEY TERMS
3.2.1 Small medium and micro enterprises
3.2.2 Tourism industry
3.2.3 Third world/developing country
3.3 TOURISM, SMALL BUSINESS AND DEVELOPMENT
3.3.1 Tourism and development
3.3.2 The benefits of tourism-led development
3.3.2.1 Benefits to less developed countries
3.3.2.2 Impacts of tourism development
3.3.3 Tourism as a development strategy
3.3.4 Considerations for tourism development
3.3.5 Rationale for small business in tourism
3.3.5.1 Importance
3.3.5.2 Benefits of developing small businesses
3.3.5.3 The informal sector
3.3.6 Measuring the economic benefits of tourism
3.3.6.1 Approaches
3.3.6.2 Leakages
3.3.6.3 The multiplier factor
3.3.6.4 Other methods
3.3.6.5 Measurement problems
3.3.6.6 Method adopted
3.4 TOURISM, SMALL BUSINESS AND ENTREPRENEURSHIP
3.4.1 The relationship between SME’s and entrepreneurship
3.4.2 Entrepreneurship and tourism
3.4.2.1 Importance of entrepreneurship
3.4.2.2 Government intervention
3.4.2.3 International research
3.4.2.4 Understanding the impact of tourism
3.4.2.5 Benefits of stimulating entrepreneurship
3.4.3 Tourism entrepreneurship – regional considerations
3.4.4 The role of culture
3.4.5 SME’s in tourism – key success factors
3.5 OPPORTUNITIES FOR SMMTE’s IN DEVELOPING COUNTRIES
3.5.1 The link between entrepreneurship and economic development
3.5.2 Shortage of statistics
3.5.3 Limited opportunity
3.5.4 Alternative tourism
3.5.5 An alternative approach
3.6 TOURISM-RELATED SMME’s IN SOUTH AFRICA
3.6.1 Approach
3.6.2 Forecast figures
3.6.3 Comparing forecasted figures
3.6.4 Importance to South Africa
3.6.5 Progress and achievement since 1996
3.6.6 Guiding principles
3.6.7 Key economic objectives
3.6.8 Key social objectives
3.6.9 Current position
3.6.10 Previously disadvantaged communities
3.6.11 Shortcomings
3.7 TOWARDS FORMULATING A STRATEGY FOR THE DEVELOPMENT OF TOURISM–RELATED SME’s
3.7.1 Justification and measurement
3.7.2 Overriding policies and direction
3.7.3 Socio-cultural factors
3.7.4 Support for SME’s
3.7.5 Factors causing failure and which should be avoided
3.8 SUMMARY
CHAPTER FOUR: THE FUTURE OF SMALL TO MEDIUM TOURISM ENTERPRISES IN THE AGE OF GLOBALISATION
4.1 INTRODUCTION
4.2 SME’s AND SMTE’s IN THE AGE OF GLOBALISATION
4.2.1 The effects of globalisation
4.2.2 International overview
4.2.3 The future of tourism-related SMME’s
4.2.3.1 Difficulties encountered
4.2.3.2 Strategies for improvement
4.2.3.3 Challenges
4.3 INTERNATIONAL BEST PRACTICE
4.3.1 International best practice – Location as a factor
4.3.2 International best practice – Encouraging linkages
4.3.3 International best practice – Clusters
4.3.3.1 Clusters defined
4.3.3.2 Competitive advantage through clusters
4.3.3.3 Applicability to tourism
4.3.3.4 Agglomeration of clusters
4.3.3.5 Diagonal clustering
4.3.3.6 Other methods which enhance competitiveness
4.3.3.7 The South African tourism cluster
4.3.4 International best practice – The role of alliances
4.3.5 International best practice – Cooperation as a strategy
4.3.6 International best practice – Networking
4.3.7 International best practice – Entrepreneurial support organisations 1
4.3.7.1 Incubator organisations
4.3.7.2 Successful ESO’s
4.4 TOWARDS THE FORMULATION OF A STRATEGY FOR THE DEVELOPMENT OF TOURISM – RELATED SME’s
4.5 SUMMARY
CHAPTER FIVE: POLICY MAKING AND PLANNING FOR SMALL TO MEDIUM TOURISM ENTERPRISES
5.1 INTRODUCTION
5.2 TOURISM PLANNING AND TOURISM POLICY
5.2.1 Planning
5.2.2 Policy
5.2.3 The relationship between policy and planning
5.2.4 The importance of planning
5.2.5 Planning levels
5.3 APPROACHES TO TOURISM PLANNING
5.3.1 Boosterism
5.3.2 The economic tradition: Tourism as an industry
5.3.3 The land-use/physical/spatial approach
5.3.4 Community oriented tourism planning
5.3.5 A sustainable approach to tourism planning
5.3.6 Continuum approach
5.3.7 Integrated quality management approach
5.4 THE POLICY, PLANNING AND THE DECISION–MAKING PROCESS 13
5.4.1 Planning and policy at the international and supra-national levels
5.4.2 Planning and policy at the national and sub-national levels
5.4.2.1 Government intervention
5.4.2.2 A planning model
5.4.2.3 Examples of intervention
5.5 THE MEANING OF STRATEGY
5.5.1 Definition
5.5.2 Levels of strategic decision-making
5.5.3 Successful strategy
5.6 INTERNATIONAL BEST PRACTICE – REGIONALISM
5.6.1 Regionalism defined
5.6.2 Regionalism for development
5.6.2.1 Regional development strategies
5.6.2.2 Increasing competitiveness
5.6.2.3 Support for regionalism as a strategy
5.6.3 Examples of regionalism
5.7 TOWARDS FORMULATING A STRATEGY FOR THE
DEVELOPMENT OF TOURISM-RELATED SME’s
5.8 SUMMARY
CHAPTER SIX: THE ROLE OF GOVERNMENT IN THE SOUTH AFRICAN TOURISM INDUSTRY
6.1 INTRODUCTION
6.2 THE ORGANISATION OF TOURISM IN SOUTH AFRICA
6.2.1 International organisations
6.2.2 Regional international tourism organisations
6.2.3 National tourism organisations
6.2.3.1 Public sector bodies
6.2.3.2 Private sector bodies
6.2.4 Developmental organisations
6.2.5 Provincial tourism organisations
6.2.6 District Municipalities
6.2.7 Local Municipalities
6.3 THE ROLE OF GOVERNMENT IN TOURISM
6.3.1 White Paper on the development and promotion of tourism in South Africa
6.3.2 Local government: Municipal Structures Act
6.3.3 Local government: Municipal Systems Act
6.3.4 Integrated Development Planning (IDP)
6.3.5 Short-comings of existing structures
6.4 REGIONAL GOVERNMENT – EDEN DISTRICT MUNICIPALITY AS A CASE STUDY
6.4.1 Composition
6.4.2 Demographics
6.4.3 Tourism as an economic activity
6.4.4 Strategies for tourism development and management
6.5 ORGANISING FOR TOURISM
6.6 TOWARDS FORMULATING A STRATEGY FOR THE DEVELOPMENT OF TOURISM–RELATED SME’s
6.7 SUMMARY
CHAPTER SEVEN: ENTREPRENEURSHIP DEVELOPMENT MODELS
7.1 INTRODUCTION
7.2 ENTREPRENEURSHIP DEVELOPMENT
7.2.1 Understanding the entrepreneurship process under government Intervention
7.2.1.1 Determinants of entrepreneurship
7.2.1.2 A framework of entrepreneurship determinants
7.2.1.3 Influencing key determinants
7.2.1.4 Traditional policy options
7.2.1.5 Government intervention
7.2.2 The role of culture
7.3 OVERVIEW OF PREVIOUSLY DEVELOPED MODELS
7.3.1 The Maasdorp and Van Vuuren model
7.3.2 Echtner’s three-pronged model
7.3.3 The GEM model
7.3.4 The SME-Worklife renewable model
7.3.4.1 Foundations for entrepreneurship
7.3.4.2 Pillars of entrepreneurship
7.3.4.3 Entrepreneurial building blocks
7.3.4.4 Incubation as entrepreneurial cement
7.4 ENCOURAGING ENTERPRISE DEVELOPMENT
7.4.1 Understanding enterprise development and growth cycles
7.4.2 Framework for enterprise development
7.4.3 Regional development model for the Southern Cape
7.5 TOWARDS FORMULATING A STRATEGY FOR THE DEVELOPMENT OF TOURISM-RELATED SME’s
7.6 SUMMARY
Section 2
CHAPTER EIGHT: PRESENTATION AND DISCUSSION OF RESULTS
8.1 INTRODUCTION
8.2 RESULTS – SECONDARY SEARCH DATA
8.3 RESULTS – THE EMPIRICAL STUDY
8.3.1 Overall response
8.3.2 Section A – General information
8.3.3 Summary – Section A
8.3.4 Section B – Job creation and tourism visitors
8.3.5 Summary – Section B
8.3.6 Section C – Government incentives
8.3.7 Summary – Section C
8.3.8 Section D – Requirements for growth
8.3.9 Summary – Section D
8.4 TOWARDS FORMULATING A STRATEGY FOR THE DEVELOPMENT OF TOURISM RELATED SME’s
8.5 SUMMARY
Section 3
CHAPTER NINE: A STRATEGY FOR THE DEVELOPMENT OF SMALL BUSINESSES OPERATING IN THE TOURISM SECTOR OF THE SOUTHERN CAPE
9.1 INTRODUCTION
9.2 FRAMEWORK CONSIDERATIONS
9.2.1 Aims and outcomes
9.2.2 Construction methodology
9.2.3 Assumptions
9.2.3.1 General assumptions
9.2.3.2 Industry-specific assumptions
9.2.3.3 Region-specific assumptions
9.2.4 Components / role players
9.3 FRAMEWORK DEVELOPMENT
9.4 MEASUREMENT AND TESTING
9.5 LIMITATIONS AND RECOMMENDED FUTURE RESEARCH
9.5.1 Testing
9.5.2 Scope of applicability
9.5.3 Legislative constraints
9.5.4 Population and sampling
9.5.5 Forms of job creation
9.6 RECOMMENDATIONS
9.7 SUMMARY AND CONCLUSIONS
REFERENCES

READ  The impact of information on a 3PL-relationship

GET THE COMPLETE PROJECT
TOWARDS A DEVELOPMENT STRATEGY FOR SMALL BUSINESSES IN THE TOURISM INDUSTRY OF THE SOUTHERN CAPE

Related Posts