Phuket tourism Essay

This report testament discuss how the rapid growth and mismanagement of the Hospitality, touristry and Events application has impacted the island of Phuket, Thailand. The Tourism exertion is a major source of revenue for the island and therefore has a signifi quartert impact.The Tourism pains has only been climb up on Phuket since the 1970s, and the increased employment opportunities and income score resulted in much better living conditions for residents in this unforesightful period of time. still there be multiple problems caused by topical anesthetic and Thai governments mismanagement of the labor.The sharp decline in tourist arrivals after the 2004 tsunami demonst gaitd the need for a wider head market place in order to sustain the local economy. A major segment with the potential to clear considerable revenue to Phuket is MICE (Meetings, Incentives, Conferences and Events), which is an bea of rapid growth in southbound East Asia.However the local government h as failed thus far to cook a world class company spirit on the island. This failure to pattern is in like manner affecting the environment in Phuket, as the island does not have the capacitance to dispose of the waste produced by the increased population particularly during peak tourist season. This is just matchless of many problems that the government and community in Phuket must resolve in order to develop an economic entirelyy and environmentally sustainable Tourism Industry.1.0 IntroductionThis report will discuss the impact of the Hospitality, Tourism and Events Industry on Phuket, in Thailand. It will first briefly explain the fundamental characteristics of the HTE Industry. It will then call down about some of the many costs for Phuket caused by the ineffective management by the government of the quickly developing HTE pains.This failure to plan has led to an unsustainable economy and an unsustainable environment which negatively affects the residents of Phuket. I t will discuss how Phukets lack of diversity in the HTE Industry hinders potential growth in the economy. However not all of the impact on Phuket is bad. The rapidly developing Tourism Industry makes a very large ploughshare to the health of the local economy.It has elevated the standard of living on the island by supplying the residents with wider employment opportunities. The quarrel is to find solutions to the problems faced by Phuket which satisfy thestake passers with different priorities residents, businesses, using and environmental departments. Its government call for to change its various stakeholders to collaborate in order to resolve the social, economical and environmental issues caused by the rapidly expanding HTE Industry.This needs to happen in order to develop Phuket into a sustainable touristry destination. 2.0 Fundamental Characteristics of the HTE IndustryThe HTE Industry consists of three segments Hospitality, Tourism and Events. The three segments are clas sified as separate industries, yet they are not always easily defined as separate because many elements of each(prenominal) are overlapping (William fuck MGT102 Study Guide, 2013). A comment of hospitality is The friendly and generous reception and entertainment of guests, visitors, or strangers (Bieringa, 2012). In the HTE industry a guest is a customer, and the drove is the businesses who offer operate for a fee. A host can also be a place, and Phuket the metropolis performs as a host to many tourists as a popular tourism destination.The hospitality industry consists of a wide range of businesses who win services such as accommodation, food and beverages (William Blue MGT102 Study Guide, 2013). Na Sakohakorn (2011) explains that Tourism involves all activities which are conducted outdoor(a) from home. Therefore a business is part of the tourism industry if it conducts business with customers who are traveling outside of their home territory.Events are an integrative effo rt of various services with the end result of an examine (William Blue MGT102 Study Guide, 2013). All three co-exist in a mutually beneficial relationship in which the different segments work together to meet the varying needs of their guests. 3.0 Development of HTE Industry in PhuketPhuket is the largest island in Thailand, which has been called the Pearl of the Andaman by the Government and local tourism operators in a bid to market it as an oasis of paradise floating in the Andaman Sea (Kontogeorgopoulos 2005). It is Thailands second largest international gateway by air, with nearly 20 million tourist arrivals in the year 2012 (Tourism Authority of Thailand, n.d). It was a popular trade port for tin from the 16th century, until the last tin mine closed in 1992 callable to a worldwide drop in tin prices (Asia News Monitor, 2009). In the 1970s theTourism Authority of Thailand licensed firms to come up with plans for the growth of Phuket (Lauzon, 2009.).This development resulte d in heavy investments in the local tourism industry from foreigners and mainland Thais, leading to increased employment opportunities and resultantly a strong creed of the local economy upon the sustainability of the tourism industry. This reliance has been increased overtime with the shift from traditional occupations such a tin mining, rubber tapping and fishing to jobs inwardly the tourism industry (Kontogeorgopoulos 2005). The impact of the HTE industry here is significant due to the unusually large cause it has on the lives of local people. 4.0 Impact of HTE Industry on the Local EconomyThe HTE Industry is a decisive element in the growth and sustenance of the local economy. This is because 38.5% of Gross Provincial Product comes from hotels and restaurants in Phuket (Ichinosawa, 2006). nearly 80% of locals work within the HTE Industry, with only around 20% remaining in traditional occupations. Because tourism has become such an integrated part of the economy, even traditi onal occupations such as fishing and manufacturing also indirectly rely on the industry for income.Tourism has many benefits to Phuket, such as increasing revenue intake, increasing employment and aiding social development by stemming the migration of youth to the mainland (Sakolnakorn, 2011). However the government has damaged opportunities to develop a sustainable plan for tourism with constant political infighting (Asia News Monitor 2009). Sustainable development is defined in the 1987 Brutland report (William Blue MGT102 Study Guide, 2013) as Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. 5.0 2004 Tsunamis Impact on the HTE industry in PhuketThe ruinous Tsunami of 2004 served to highlight the vulnerabilities within Phukets economy. This Tsunami was the biggest the Indian Ocean has ever seen with a devastating 155,000+ fatalities in the 11 countries it hit (Do Something, n.d).The Tsunami left a se condary impact of a stagnated regional economy in its wake. As Kasperson (2004) says, Unfamiliar or distant places may easily fall play to distorted or unimaginativeperceptions. Tourists stopped coming after the Tsunami, and there is no insurance against stigma. The tourism agencies selling the majority of packages to Phuket were set in foreign countries therefore local businesses could not develop correct supply chain relationships with them to realize sales continued.Phukets marketing strategies revolved solely around its Pearl of the Andaman image as a paradise of sun and beaches. The Tsunami tainted this image by increasing the perception of risk for tourists visiting its famed beaches. Sales in the beginning of 2005 dropped to only 10-30% of normal rates (Ichinosawa 2006). Phuket paid the price for relying upon a elflike segment of a potentially diverse HTE industry. 6.0 Events as a Potential Major Source of tax revenueA segment of the HTE industry with vast untapped po tential for Phuket is the Meetings, Incentives, Conferences and Exhibitions, or MICE, segment. MICE events are one of the hurried growing segments in the industry and particularly in the South East Asia region. According to a ingest done by IHG in 2012, 50% of delegates coming to South East Asia for MICE events come from outside the region.However Phuket handicaps itself in this sector as despite decades of talks and studies it still lacks a world class conference centre (Fein, 2012). There was an attempt to build 2.6 billion BAHT centre in 2011 however the examine is still in limbo as the environmental impact assessment was rejected. This is an example of the constant dispute between government departments for environmental planning and tourism resulting in a lack of efficient city planning. A world class conference centre would contribute to the local economy by diversifying the market and drawing in high spending MICE delegates (Asia News Monitor, 2010).The failure to build a conference centre demonstrates the continued failure of the Phuket government to build a sustainable economy. 7.0 Impact of HTE Development on the surroundThe rapid growth combined with ineffective management has resulted in many environmental issues in Phuket. An denomination in the National Geographic Traveller rated Phukets environmental status as 46/ c and categorized it as in serious trouble. These problems spawn from a lack of planning, combined with controlling environmental behaviour due to lack ofdiscipline in Thai culture, and increasing materialism and consumerism (Boonchai, Beeton, Srichai).The acclivity population and urbanisation have drastically increased the use of natural resources, with approximately 75% of the environmental impact being caused by the consumption of non-durable goods, water and energy (Ruiz-Molina 2010). An example of the problems caused by over-population is the piling up of solid waste on the island. Phukets incinerator only has the capacity for 250 tonnes of waste per day, while the island produces 300-350 tonnes per day.This means that the overindulgence waste is piling up at the rate of 50-100 tonnes every day. Phuket also can only provide 30,000 cubic meters of water, yet the demand is 40,000 per day (Lauzon, 2009). The disputes between development and environmental protection sectors of the government hold back progress in finding solutions to these issues.These government departments fail to seek the input of the many wide-ranging stakeholders on Phuket who could offer vast insight into potential solutions the business owners and local people (Boonchai, Beeton, Srichai). Once again these unresolved issues highlight the inability of the local government in facilitating a satisfactory compromise to get to long term sustainable development in Phuket. 8.0 Impact on Local ResidentsThe development of the HTE industry in Phuket has brought many increased challenges into the local peoples lives however the benefits outw eigh the costs for close residents. One particularly dark segment of the industry which affects local women and children is Sex Tourism.Prostitution began due to a lack of employment opportunities for uneducated women during the Vietnam War (Ehrfurcht, n.d). It has been illegal since 1960, but the law is rarely enforced due to the governments reliance upon it to maintain the economy (Morison, 2008). A wide survey of tourists revealed that 17% apprehension that the sex industry was motivation to come back to Thailand as it is easy to find (Rittichainuwat 2008).It is so easy to find because it is practiced widely in bars and brothels, and like in other segments of the Tourism Industry locals are increasingly being replaced by foreign women (Hanenberg 1998). Another area where the Thai people are being replaced is the labouring industry. It is increasingly expensive to employ residents due to the high cost of living on Phuket, which means more labourers are being hired from the Union of Myanmar (Sakalnakorn, 2011).The increasingmigration of people from the Union of Myanmar, also known as Burma, is causing a perceived loss of culture and increased crime rate in the local community. Despite all of the negative aspects introduced to Phuket by the HTE industry development, quality of life has been improve for residents. 9.0 What the Future Holds for PhuketPhuket has rebounded from the economic downturn following the Tsunami. The average hotel occupancy rate was a very strong 75% for the year 2012 (Chinmaneevong, 2012). This rebound has been spawned by new direct flights from China and Eastern Europe, combined with lour costs from competition with the local cheap airlines.The Tourism Authority of Thailands marketing targets for 2014 and beyond are health and wellness tourism, golfers, honeymooners and weddings, and ecotourism. It is targeting the first three areas due to the high spending customer demographics in each segment. Kontogeorgopoulos (2005) says that t he Desire to spend leisure time in natural settings is a key factor behind the recent rapid growth of ecotourism.The challenge for tourism operators is Phuket is to give the Ecotourists the perception that they are still on a paradise island, despite the mass tourism and close proximity to urban areas.This is achieved partly by means of communicative staging (Kontogeorgopoulos 2005) where the landscape near resorts is designed to give the appearance of a natural environment. Guests to Phuket can also go for day trips to Phi Phi and other nearby islands which remain untouched by urbanisation to fix the sense of exploring a natural island environment (Lauzon, 2009). All stakeholders in the Phuket community (locals, businesses and government alike) wish for Phuket to be regarded as a Green City in the future (Boonchai, Beeton, Srichai). This can only be achieved by engaging all members of the local community to form a comprehensive and sustainable development plan for Phuket (Xing, 2 011). 10.0 ConclusionThis report discussed the effects of the Hospitality, Tourism and Events Industry on the island of Phuket. The Industrys rapid development has resulted in economic benefits, but has had some negative side effects upon society and the environment.The problems have been caused by the Thai and local governments lack of compromise, lack of planning and failure toenforce laws. Phuket seems to have not learnt from the 2004 Tsunami that economic reliance upon a small segment of the HTE industry is not a good long term plan in the changeable modern world.The new era of mass tourism which is hitting Phuket now, combined with the level of opportunity currently growing within the MICE segment in South East Asia, is an opportunity to develop more diversity in order to maintain its economy. It is vital that sustainability of the Tourism Industry is achieved as the local economy has become dependent upon it. Protecting the environmental is of equal wideness as the Tourism In dustry and peoples livelihoods depend on an attractive and natural-seeming environment in order to keep the guests arriving. Hopefully the many stakeholders in Phuket can find solutions so the island can develop as a Green City with a stable economy.Reference ListAsia News Monitor, 2009, Thailand colorful Pearl Phuket Distinctive concept taps Into Islands rich history, Asia News Monitor, 2 November 2009, Bangkok. Asia News Monitor, 2010, Thailand sleaze says Phuket is the most favored destination for international beauty contest and wedding party, 8 January 2010, Bangkok. Bieringa, L., 2013, One definition of hospitality is the friendly and generous reception and entertainment of guests, Dominion Post, 13 August 2013, Wellington, New Zealand. Boonchai, C., Beeton, R. J. 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