Chapter 1
The Problem and Its Background
Rationale
Transportation plays an important role in the development of tourism in Taiwan. An introduction of Taiwan high speed rail train is going to revolutionise the transportation network though it has both positive and negative aspects. In this regard, evaluation pf performance of transportation network in Taiwan should be carefully handled. Basically, organisations, both public and private, must have performance measures. Through performance measures it ensures the clients and stakeholders the quality of the services of the organisations.
Background of the Study
According to The (1993), a performance measures tell relevant information about the organisation’s products and services, and its process, while performance measurement is the monitoring and reporting of accomplishments particularly to the organisation’s goals. Usually performance measurement is focused on the daily inputs and outputs of elements. Strategic Performance Measures links Strategic Management and Performance Measurement and translates it to smaller and more accurate measures. ( 2003). The four common Operational Performance Measures are Service Quality, Organisational Productivity, Staff Development, and Improvement Process.
Basically, an organisation can be described as a living entity composed of various interrelated parts that work together to make the organisation functional. These parts need not only interact, rather they need to work as one, towards a sole direction. The requirement for an organisational focus is the core of management. Management is the function concerned with providing the organisation its reason and aim for existence as well as steering the organisation towards accomplishment of goals and objectives. The management function requires a systematic process of making effective allocation and use of all organisational resources – human, intellectual and material.
In business industries particularly to transport and tourism business, management and leadership are two separate concepts that are often used interchangeably. (2006) stated that management is traditionally the combination of the four functions of planning, organising, leading and controlling the people and resources of an organisation. Leadership, on the other hand, is one aspect of management which has achieved definite focus in recent years. Many authors say that contemporary view on management gives more emphasis on the manager’s leadership capabilities. In transport business, managers today are faced with diverse internal and external changes that impact the organisation and the affectivity of management depends on its ability to motivate and influence the organisation to be vigilant to changes, analyse the effects of these changes to the organisation and formulate ways to either accommodate or counter these changes so that the organisation can smoothly continue in its existence.
Basically, the transport management in tourism industry of Taiwan is the focal of this study. Effective management and leadership is very vital in giving quality service. In the case of transportation sector engage in passenger and goods transportation, they need consider management and leadership in order to have good transport service. Accidents and other unnecessary incidents while moving to another place can be utilised and suppressed if proper management and leadership were applied. In line with this, evaluations using different strategies are considered such as PEST, SWOT and Survey.
Objectives of the Study
The aim of this study is to discuss Management of Transportation Network in Taiwan particularly its relation to tourism industry. This paper will also tackle the different factors in facilitating Strategic Performance Measures.
Statement of the Problem
This researcher finds the necessity for a study that specifically tackles how management of transportation network affects tourism in Taiwan. Specifically, this study intends to understand the effect of social impact on the community and the business itself. It will also try to evaluate the current status of management of transportation in Taiwan. Moreover, this study will try to answer the following queries:
1. What are the strength and weaknesses of the transportation network in Taiwan?
2. How does management of transportation affect the Tourism Industry in Taiwan?
3. How does Tourism benefit/suffer from the changes and problem issues of management of transportation network?
4. What is the current performance of transportation network in Taiwan tourism in terms of PEST and SWOT analysis?
5. In accordance to the perception of surveyed respondents, what are the positive and negative impacts of transportation network management in tourism?
Hypothesis of the Study
From the objectives and statement of the problem previously stated this paper will work on this hypothesis: “The management of transportation Network in Taiwan has significant effect to the tourism industry.”
Significance of the Study
This study is relevant for the study of Management of Transportation Network in Taiwan. It will also pave a way for furthers studies regarding this topic.
Moreover, this study will be helpful to the tourism industry and business practitioners in training and informing them in the area transportation management, particularly to transportation network and of course, to tourism development. It will help them in formulating policies, objectives, and strategies. It will also serve as a future reference for researchers on the subject of tourism development and transportation network. And importantly, this research will educate consumers/tourists in deciding on whether an industry is really fulfilling its responsibility to the community or is just showing off to promote its business.
Scope and Limitation
The scope of this paper is focused only on Strategic and Operational Performance Measures pertaining to the Management of Transportation Network in Taiwan, other topics related with these two were not discussed.
Chapter 2
Literature Review
The choice of literature for this study is limited only to those that have a vital contribution about the issues in tourism. This chapter reviews articles from books and journals on tourism. Specifically, this chapter discusses the nature of problems and potentials of tourism in Taiwan, the understanding of effective management of transportation network in Taiwan, and some issues about the topic.
Development of the Tourism Industry in Taiwan
The service industry has greatly contributed to the economic growth of Taiwan. Basically, (2001) stated that the tourism and tourism industry is expected to continue growing within the succeeding years. Actually, the success of the industry is partly attributed to the external factors providing an environment suitable for business such as the political and economic stability of the market and tourism efforts of the government to encourage and draw visitors from other countries and partly from the management and business practices developed and maintained by the individual businesses conducive to customer satisfaction and customer loyalty.
The vibrant tourism industry developed after passing through an industry cycle due to both external and internal factors affecting the number of tourists whose needs the industry meets. The hotel industry in Taiwan is delineated into international and domestic hotels based on business ownership and domestic hotels are also subdivided into domestic company owned hotels and family owned hotels depending on the scale of operation and ownership of the hotel (2003). These hotels differ in a variety of ways according to the manner that they utilise their available and created resources and business strategies to actualise their business goals.
Despite the differences in the scale of operation, organisational structure and business strategies of international and domestic hotels, the common objective is to utilise and maximise their resources to achieve a high brand equity founded upon efficient and excellent quality of service that results to customer satisfaction and eventually to customer loyalty. According to (2001), international and domestic hotels build a strong industry through their ability to cater to the diverse needs of customers in terms of price, customer relationship, accommodation arrangements, and other diverse tourism needs of customers. Although there is competition among international hotels, international and domestic hotels, and among domestic hotels it cannot be denied that these hotels provide distinct tourism services giving customers options for their service preferences.
As discussed, the Taiwan tourism industry developed after experiencing a business cycle with its initial high during the implementation of the Six-Year National Development Plan applicable for the years 1991 to 1996, but becomes low with the outbreak of severe acute respiratory syndrome in 2003, and a rise again in the performance of the tourism industry at present (2003).
During the initial high of the tourism industry in the mid 90s, the Tourism Bureau of Taiwan reported that building the tourism industry requires leadership on the part of the government and the leading hotels within the industry to provide both administration and guidance to direct the industry towards growth; comprehensive and holistic facilities planning for the industry; and sufficient goal-oriented training for the employees of the tourism industry (1996). The result of the Six-Year National Development Plan is the increase in the gross domestic product of the country by 1.1 percent for the period 1990 to 1994 (1996) and .7 percent in 1997 (1998).
The economic growth spurred the development of the tourism and tourism industry in Taiwan. The 1997 Annual Report on Tourism showed that the composition of the visitors to Taiwan were mostly from other Asian countries who were also experiencing growth. Close to 76 percent of the tourists in Taiwan were Asians with the remaining percentage from North America, Europe and other regions. Apart from international tourism, the economic growth that Taiwan experienced also proved helpful to the tourism industry by encouraging domestic tourism ( 1993). In 1996, the average number of trips within Taiwan was 2.99 increasing to 3.2 in 1997 as a result of economic growth and the policy of declaring public holidays ( 1998). Economic growth translates to income for households and the empowerment to spend not only on their needs but also for leisure activities such as travel. The five-day workweek implemented in 1998 limited the time available for international travels resulting to the consumption of domestic tourism and tourism industry services.
The Tourism Bureau is strengthening international tourism through innovative leisure resorts and tourism packages. The visitor expenditure of foreign tourists amounted to 3.4 billion in 1997 with a US 3.56 average daily spending for every visitor. The cost of hotel accommodations amounted to around 50 percent of the daily spending. (1999) The bureau also sought to create an environment conducive to the tourism business by releasing a promotional brochure in different languages, using the internet as a marketing strategy, and participating in organisations for international tourism cooperation such as the East Asia Travel Association, American Society of Travel Agents and the Asia Pacific Economic Cooperation. The industry expects to gain external support through government efforts to help the industry grow.
In 2003, the industry experienced a rapid decrease in the occupancy rates because of the outbreak of the severe acute respiratory syndrome or SARS in the region. In the May 2003 new report of the China Post, around 84 percent of hotels in Taiwan had a lower than 30 percent occupancy rate and 96 percent of the hotels in Taiwan incurred losses. In the survey made by Pan Asia Human Resource Corporation, 79 percent of the 2,452 hotels questioned viewed the effect of the SARS outbreak as very severe. The quarantine measure implemented in the Ho Ping Hospital resulted to the deterioration of 79.01 percent of hotels represented by 50 to 60 percent drop in occupancy rates resulting to losses. In an effort to prevent further losses, many of the hotels requested some of their employees to take unpaid leaves or take their annual leave, implemented salary cuts, and suspended the payment of salaries until business performance improves. The owners of firms have asked the government for a bailout plan. ( 2003)
In just a few months, the industry development that the government and business owners sought to achieve was brought down by the SARS epidemic. Between April and May, all hotels tried to alleviate their losses by offering large discounts up to 70 percent of the original price in an effort to maintain the operations of the industry. Inter-industry collaborations were also in place such as the offer of a package that includes hotel accommodations as well as air fare for a discounted price. (2003)
The government held an emergency meeting to develop a plan to help the tourism and tourism industry. A plan to rescue the ailing airline transportation sector was implemented through the reduction of the fees for local airlines at the expense of government revenue. Tax cuts and exemptions were also planned for the other sub-sectors of the tourism industry. The legislature also approved the proposal preventing the local banks from not approving loans needed by the businesses within the tourism industry for short-term financing. (2003)
In 2004, the SARS outbreak has been controlled leaving behind bankruptcies for the hotels and other businesses unable to cope up with the economic cost of the epidemic ( 2005). By the end of 2004, the tourism industry in Taiwan is still in the verge of development but fairing well because of the growth in economy with the vibrancy in the different industries after the arrest of the SARS epidemic ( 2005).
At the end of 2005, the November 12 issues of Asia Times reported that the tourism industry in mainland China, Taiwan and Hong Kong continue to grow as observed through the rampancy of hotel construction in the different business and tourism centres of the country ( 2005). The rate of arrival of international visitors increased by 16 percent as a result of the increase in occupancy in the tourism industry.
Transportation Development
In regards to the development of transportation in Taiwan, it is always important to assess the security and safety issues. Actually it is applicable not only to tourism industry but also to other businesses engaged in transportation. Actually, Safety and Security in transportation is a wide context. There are lots of things that need consideration. As previously stated, overloading in this business is a treat for safety and security, thus parameters should be observed. Aside from this, most of the transport business are now utilising IT in their business process to easily track the deliveries, however, this is also a threat to security and safety of transport (1994). The business risk for a company engaged in technologically dependent business is normally greater than for one that is not. Business operations present a unique set of risks, including an increased reliance on technology and increased vulnerability to the rapid changes in technology (1994). To address such challenges, a company or a certain organisation needs to develop an effective strategy. An effective strategy requires operational efficiency; within organisation’s information systems, this means an emphasis on information security and controls. A cost-effective business internal control system should be designed and implemented toward the goal of reduced operating expenses and therefore increased profits ( 1994). Reducing operating expenses and increasing profits are critical to the success, even the continued survival, of companies heavily engaged in business.
In Taiwan, majority of the people here are leaving in the western portion in which the greatest concentration of roads and railways systems are located. These roads and railway systems are well-developed. The government-owned airline in Taiwan is China Airlines. The largest airport in Taiwan can be found outside T’aipei and is the Chiang Kai-shek International Airport, with another international airport located in southern Taiwan at Kaohsiung (2007). The main ports in Taiwan are Chilung, Kaohsiung, Hualien, Suao and T’aishung. Taiwan has a fully integrated transportation network of railways, harbours and shipping lanes, civil aviation, freeways and highways, and rapid transit (2007).
Railways[1]
Taiwan has a modern railway system that provides frequent and convenient passenger service between all major cities on the island. As of December 2002, Taiwan’s railway network had a total of 1,097 kilometres of track (2007). Public railways in Taiwan are operated by the Taiwan Railway Administration. In 2002, a total of 175.34 million passengers and 12.15 million tons of freight (0.99 billion ton-kilometres) were transported on Taiwan’s railway system (2007).
To help lessen heavy traffic congestion on Taiwan’s highways, the ROC government has initiated plans for a high-speed railway (HSR). The Bureau of Taiwan High Speed Rail under the Ministry of Transportation and Communications (MOTC) is responsible for implementing this project (Bax2007).
Harbors and Shipping[2]
With regards to Taiwan’s international harbours, actually, these harbours are located in Keeling, Kaohsiung, Hualien, Anping, Taichung, and Suao. In 2002, Kaohsiung harbor was the fifth largest harbor in the world in terms of the volume of container cargo processed. Maritime imports and exports handled by Taiwan’s ports totalled 247 million metric tons in 2002 (2007).
Ocean shipping is vital to the trade-oriented economy of Taiwan. As of December 2002, Taiwan had a fleet of 241 vessels over 300 gross tons for a total of 4.3 million gross tons or 6.82 million dead weight tons. Taiwan’s fleet of cargo container ships is one of the largest in the world. As of mid-2003, Evergreen Marine Corporation was the third largest container carrier in the world (2007).
Civil Aviation
Taiwan currently has two international airports: Chiang Kai-shek International Airport in the north and Kaohsiung International Airport in the south. Both airports are presently in the process of being expanding. Taiwan also has 15 local airports providing facilities for domestic flights (2007).
As of mid-2003, a total of 41 airlines, including code-share airlines, were providing flight service to destination in Taiwan. Of these airlines, 35 foreign carriers and six Taiwan-based airlines (China Airlines, EVA Airways Corporation, Mandarin Airlines, Far Eastern Air Transport Corporation, Transasia Airways, and UNI Airways) are operating scheduled international air services to and from Taiwan. Six companies including two helicopter operators, offer domestic passenger flight services (2007).
Highways and Freeways
Although the number of highway passengers declined 3.4 percent and cargo decreased 3.6 percent in 2002 from 2001, major highways in Taiwan were still often congested, especially on weekends and holidays. In 2002, there were 17.91 million motor vehicles in Taiwan ( 2007).
Traffic on the north-south Sun Yat-sen Freeway has increased dramatically since its opening in 1978, especially on its northern section. Statistics show that the road handles more than 70 percent of the traffic between Keelung and Hsinchu. Thus, to alleviate some of this heavy traffic, the Second Northern Freeway was constructed, beginning in Keelung and connecting with the North-South Freeway near Taipei and Hsinchu. The 106 kilometer section between Hsinchu and Sijhih of this new 117-kilometer freeway was opened to traffic in 1997, and the entire line was completed in 1999 (2007). Other measures taken to lighten congestion on the Sun Yat-sen Freeway include the adding of an additional lane to each side of the heavily used 111-kilmeter stretch from Hsinchu to Yuanlin, and the widening of the section in southern Taiwan between Yuanlin and Kaohsiung in 199 (2007).
Rapid Transit
Preparations for the Taipei Rapid Transit System (TRTS) began in early 1986. By 2000, all five lines of the TRTS had been completed. The Mucha Line began revenue service on March 28, 1996; the Tamsui Line started operations in 1997; the Chungho line in 1998; the entire Hsintien Line and the Nankang Line from Hsimen Station to Lungshan Temple in 1999; and the Panchiao Line from Lungshan Temple to Hsinpu Station in September 2000 (2007). Extensions to the original TRTS network are currently underway. Aside from this, the Kaohsiung Metropolitan Area Mass Rapid Transit System Development Plan developed by the Kaohsiung City Government is also considered as part of transportation system in Taiwan (2007).
Synthesis
In Taiwan, transportation is very vital to its development, not only to the major public but also to the different business industries in the country. Basically, the previous discussion shows that the tourism in Taiwan is definitely affected of the development in transportation business, thus it is very important to assess if the current strategy employed by the transportation networks in Taiwan is effective.
In the end, transportation development in tourism has it share of good and bad impacts, socially, economically and even environmentally. In addition, it has to be noted that tourism is not one industry but many. It also depends on subjective perceptions of landscape and culture which may not support domestic development objectives.
Chapter 3
Methodology
This part of the chapter illustrates the methods to be used for this research. This details the steps, stages and procedures made in order to accomplish the study. The said steps are then includes the collection procedure of the data that is required in the delivery and completion of the research. This chapter justifies the means in which the study is performed. It also emphasised its credibility by making mention of widely accepted scientific methodologies. Through the methods mentioned in this chapter, a plausible conclusion may be obtained.
This methodology part of the research underwent into several stages. In the research design, the research uses SWOT and PEST analysis to evaluate the management of transportation networks in Taiwan. Aside from this, the researcher also collected both primary and secondary data and formulated and developed the questionnaire and interview. During the data collection, the researcher collated and summarised the data obtained from the questionnaire and survey. The researcher then analysed these data and from these, the researcher came up with findings and recommendations that shall be presented in analysis chapter.
For this study, the descriptive research method will be utilised. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. Thus, this study used the descriptive approach. This descriptive type of research utilises observations in the study. To illustrate the descriptive type of research, (1994) guided the researcher when he stated: Descriptive method of research is to gather information about the present existing condition.
The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the causes of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.
To come up with pertinent findings and to provide credible recommendations, this study utilised two sources of research: primary and secondary. Primary research data were obtained through this new research study. Questionnaire survey and in-depth interview were conducted. On the other hand, the secondary research data were obtained from previous studies and company details on the same topic.
The primary sources of data came from the survey-questionnaire and interviews conducted by the researcher. The secondary sources of data were based on published articles from transportation industries in Taiwan, Transportation Network strategy in Taiwan, business and innovation journals, books and related studies on strategic management.
Respondents of the Study
Basically, the results of this study is not only based from the information gathered from transportation industry information, strategy, business and innovation journals, books and related studies on strategic management but also to several employees and managers who are very much familiar to management of transportation network and tourism industry. The general population for this study will be composed of selected personnel related to Transportation Network Management in Taiwan, numbering to 30 respondents. The researcher shall also provide interviews for three (3) managers whose function is directly related to the organisation and implementation of the management strategy employed by the organisation.
Instruments to be Used
To determine the effects of organisation’s internal and external environment management, the researcher will prepare a questionnaire and a set of guide questions for the interview that will be asked to the intended respondents. The respondents will grade each statement in the survey-questionnaire using a Likert scale with a five-response scale wherein respondents will be given five response choices (Creswell, 1994). The equivalent weights for the answers will be:
Range Interpretation
4.50 – 5.00 Strongly Agree
3.50 – 4.49 Agree
2.50 – 3.49 Uncertain
1.50 – 2.49 Disagree
0.00 – 1.49 Strongly Disagree
The decision was made to use a questionnaire for the data collection for this project due to the sensitivity of the information being obtained. It is important for the respondents to be open and honest in their responses. The use of the questionnaire provides the project owner with the ability to test the views and attitudes of the managers. The questionnaire was designed to allow the collection of specific information about the participants to conduct statistical analysis, e.g. age, sex, length of time with the organisation and position in the organisation.
In the Likert technique, a set of attitude statements are presented, where subjects of a study are asked to express agreement or disagreement using a five-point scale. The degree of agreement is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses (1994).
Validation and Administration of the Instrument
For validation purposes, the researcher initially submitted a sample of the set of survey questionnaires and after approval; the initial survey were conducted to five respondents. After the questions were answered, the researcher asked the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument. Afterwards, the researcher again examined the content of the interview questions to find out the reliability of the instrument. The researchers then excluded irrelevant questions and changed words that would be deemed difficult by the respondents, to much simpler terms. The researcher excluded the five respondents who were initially used for the validation of the instrument. The researcher also tallied, scored and tabulated all the responses in the provided interview questions.
Statistical Treatment of the Data
After all the survey questionnaire will have been collected, the researcher will use statistics to analyse all the data. The statistical formulae to be used in the survey questionnaire will be the frequency, percentage, and weighted mean. The researcher will be assisted by the SPSS in coming up with the statistical analysis for this study.
1. Percentage – to determine the magnitude of the responses to the questionnaire (1994).
n
% = ——– x 100 ; n – number of responses
N N – total number of respondents
2. Weighted Mean (Creswell, 1994)
f1x1 + f2x2 + f3x3 + f4x4 + f5x5
x= ——————————————————;
xt
where: f – weight given to each response
x – number of responses
xt – total number of responses
Issues to be Addressed for the Study
Aside from the SWOT and PEST to be conducted as part of the analysis, the use of survey to different staff engaged in Management of Transportation Network in Taiwan will be analysed. Because this study will also utilise human participants, certain issues must be addressed. The consideration of these issues is necessary for the purpose of ensuring the privacy as well as the safety of the participants. These issues must be identified in advance so as prevent future problems that may arise during the research process. Among the significant issues that need attention include consent, confidentiality and data protection.
Gaining Consent
Securing permission and gaining the consent of the participants for this study is an important ethical consideration. In order to do so, the researcher must relay the aims of the research clearly to all participants. Each participant should be asked to accomplish a consent form, stating in detail all the activities involved as well as the purpose of the study. The reasons why tourists are selected as participants should also be stated so as to enable the selected participants to connect the aims of the research with that of the participant qualifications. In the consent form, the researcher should also discuss in detail all the treatments or procedures that will be done during the process.
Building rapport and gaining the trust of the participants who were involved in the study are also essential (1994). These will help in ensuring the cooperation and willingness of the participants to give dependable and sufficient data that will help the study. Although the participants may initially give their consent for the research process, the researcher must give the assurance that they are allowed to withdraw from the study even without providing any reason. By giving this freedom, the participants will not feel forced to participate in the process.
The possible risks that were included in the research were also discussed with the participants in an effort to gain their consent and also to let them know about their position in the study. More importantly, mechanisms to prevent risks of information leak was also considered and used; one of these is to practice openness and to ensure that the researchers who have access to the information will keep their confidentiality. Openness and honesty all throughout the study assured the research respondents that their security and safety is of utmost priority. All of these factors to gain the consent of the research participants were discussed in the most comprehensive manner based on their level of understanding.
Confidentiality
The privacy of the respondents as well as the confidentiality of their responses was prioritised by the researcher as well. This was done through keeping their private information confidential and by merely using the information that they have given as part of the statistical information of the study. Moreover, it was ensured that the respondents know the purpose and subject of this study in order to help them with the formulation of their own perspectives. It is thought that this reassurance lends to better and more accurate responses from the respondents as their reasons will be given better assessment and they will be less inhibited when it comes to responding on the questions that may be based on some personal information.
Synthesis
Performance measurement has long been used by the various firms to assess different business factors. In general, three methods are being used to measure performance. In this research, three measures are being considered i.e. through SWOT, PEST and survey analysis. While these approaches have their own advantages and drawbacks, the goal of their application remains one and the same. Through the beneficial effects of performance measurement, businesses are able to create successful strategies towards success.
Firm competencies are immutable, since the firm has irrevocably sunk resources into developing these capabilities. Moreover, for a company to be successful, business strategy must be based on these capabilities. In the external environment, the intensity of competition is not completely under the firm’s control. Since competitive advantages for the firm will depend on the match between its strategy (i.e., mode of competing based on its internal resources and capabilities) firms must endeavour to achieve the best fit between their preferred business strategies and these exogenous mandates from the market.
Chapter 4
Analysis, Presentation and Interpretation of Data
As one of the world’s largest industries, tourism has the capacity to improve the material life of communities that have lost traditional industries as trade barriers have fallen (2000). This is particularly true in Taiwan where international travellers flock the city for business, leisure and for shopping. This development had in return produced positive and negative effects on the economy and the lifestyle of residents of the country. Specifically, the tourism industry had greatly produced an impact on the hotel industry, the aviation, communication and transportation industries, the environment, the tourism planning of the country and the residents.
While tourism is said to produce several constructive developments in Taiwan, transportation development can also have severe negative impacts on a community as well as to tourism business, outweighing any economic and cultural benefits. This part of the study evaluates the information gathered though the methodology discussed in the previous chapter. This chapter is divided into three parts. The first part shall tackle the demographic profile of the respondents. The second section shows the result of the questionnaire conducted on 30 respondents regarding their perception towards management of transportation network and tourism development. The Third part explored the status of Transportation Network using PEST and SWOT analysis.
As indicated, this chapter presents the information gathered from the responses of the respondents to the surveys and interviews conducted by the researcher. Basically, this paper seeks to answer the following queries:
Ø What are the strength and weaknesses of the transportation network in Taiwan?
Ø How does management of transportation affect the Tourism Industry in Taiwan?
Ø How does Tourism benefit/suffer from the changes and problem issues of management of transportation network?
Ø What is the current performance of transportation network in Taiwan tourism in terms of PEST and SWOT analysis?
Ø In accordance to the perception of surveyed respondents, what are the positive and negative impacts of transportation network management in tourism?
The researcher shall also place figures for greater clarity on the discussions.
Part 1. Demographic Profile of the Respondents
The respondents of the survey questionnaire can be considered as young adults. A majority of 65% came from the age group 25-30 followed by those in the age group 20-24, they comprise 23% of the total respondents. Consequently, only 8% and 4% came from the age group of 31-35 and 36-40 respectively. There were no respondents from the age group 41-50. This data showed that most of the respondents are relatively young. Most of them are also females who comprised 60% as against the 40% males. The dominance of the young adult respondents has a significant impact to the study since it was unexpected. Meaning to say, majority of the respondents in the area are in this age range.
In terms of educational attainment, the respondents are on the average. A major bulk comprised college graduates- they consist of 45% of the total respondents whereas 42% are in currently in graduates program. Thirteen percent had finished graduate studies.
The demographic profile of the respondents shows two important characteristics of the sample: (1) the respondents are basically ordinary individual connected in the tourism and transportation industry; and (2) the sample size is evenly distributed. These two factors are of significance in determining the representativeness of the sample since the relationship of the samples to the development of transportation in tourism industry is in good condition and the information from the samples has a significant impact to the study. Moreover, these samples are based from the standard population sample determination formula i.e.
The demographic profile shows that it has accomplished these two main prerequisites. Apparently, the perception of the respondents on management of transportation network with respect to tourism development is divided into two main issues: (1) the impact of management of transportation network on the residents and the community and (2) their perception on the effectiveness of the management of transportation network with respect to tourism planning and development measures.
Part 2. Perception of the Respondents
A. Perception towards the impact of management of transportation network on the residents and the community.
With respect to the survey conducted, the respondents were asked pertaining to their perception towards the impact of management of transportation network on the residents and the community.
Table 1. Impact to Residents and Community
Statements
5
4
3
2
1
Weighted Mean
Interpretation
1. The management of transportation network is good for the local economy.
5
12
11
1
1
3.67
Agree
2. The current management of transportation network in Taiwan eases the traffic and parking problems.
8
12
8
1
1
3.87
Agree
3. The management of transportation network proves to be an advantage rather than a disadvantage.
9
15
3
2
1
4.00
Agree
4. The management of transportation network is the answer towards transportation issues.
6
13
9
2
0
3.80
Agree
5. The management of transportation network helps to attract more tourists.
25
2
1
1
1
4.67
Strongly Agree
6. Most of the Taiwanese commuters accepted the practices of the management of transportation network.
12
15
2
0
0
4.23
Agree
The previous table illustrates the perceptions of the respondents pertaining to the impact of management of transportation network on the residents and the community. From these statements, majority of them agreed on it. Based on the computed weighted mean, most of them agreed that the management of transportation network is good for the local economy. It actually eases the traffic and parking problems. In addition to these, majority of them have seen that the management of transportation network proves to be an advantage rather than a disadvantage. On this part, it shows that management of transportation network improves the overall efficiency of any industry connected to transportation since it is the foundation of construction. Thus, the government tried pushing various transportation projects, planning public rapid transport systems and building convenient transportation networks. Actually the final goal is to completely modernise facilities, systematise management, and up-grade the overall quality of public transportation services. With regards to the responses of the respondents, they believe that this appropriate management of transportation network is the answer towards transportation issues.
Apparently, these respondents also believed that the management of transportation network helps to attract more tourists, thus, most of the Taiwanese commuters accepted the practices of the management of transportation network. Good transportation scheme actually reflects how good the economy of a certain country is. If the transportation is good and efficient, there is a great possibility that more tourist will come to visit the goods spots within the region or possibly to invest a business on the country.
B. Perception on the effectiveness of the management of transportation network with respect to tourism planning and development measures.
Within the past century, international tourists have increasingly sought exotic destinations in their pursuit of relaxation, escape, and adventure. Recognising the opportunity to earn valuable foreign currency, Taiwan have catered to these desires by encouraging tourism development. Recognising the opportunity to earn valuable foreign currency, most developing countries have catered to these desires by encouraging international tourism development. Some countries, such as Nepal and Jamaica, have gone so far as to make international tourism a top priority in their national development strategy (2003).
Table 2. Impact to Tourism Industry
Statements
5
4
3
2
1
Weighted Mean
Interpretation
1. The management of transportation network in Taiwan affects the overall process in Tourism Industry.
10
14
2
3
1
4.00
Agree
2. The tourism industry shows improvement because of the management of transportation network.
5
12
11
1
1
3.67
Agree
3. The benefits of management of transportation network in Taiwan get distributed widely through the tourism industry.
8
12
8
1
1
3.87
Agree
4. Because of the management of transportation network in Taiwan, the tourism industry can cope with the number of tourists.
24
3
1
1
1
4.63
Strongly Agree
5. The management of transportation network in Taiwan helps to improve the services in tourism industry.
6
11
12
1
1
3.80
Agree
6. The tourism industry shows acceptance to the management of transportation network in Taiwan.
14
13
1
1
0
4.27
Agree
Similar to the findings in Table 1, this part (table 2) of the chapter shows that majority of the respondents agreed on each statement. Basically, the findings of this study are supported by the earlier findings of scholars asserting that tourism is affected by the management of transportation network since it helps to improve the services in tourism industry. Tourism shows improvement because of the management of transportation network justified by 3.80 weighted mean. For example, the developments in technology and transport infrastructure such as jumbo jets and low-budget airlines have made many types of tourism more affordable. There have also been changes in lifestyle, such as retiree-age people who living as a tourist all the year round. This is facilitated by internet purchasing of tourism products. Some sites have now started to offer dynamic packaging, in which an inclusive price is quoted for a tailor- made package requested by the customer upon impulse.
Through the use of effective and efficient transportation network management scheme, the tourism industry can easily lure tourists to visit the country and gain some business advantage which is really helpful to the development of the economic condition of the country. As previously discussed in the literature review chapter, most of the transportation services of the country is concentrated to the tourism industry, in this regard, majority of the respondents agreed on this statement which was justified by 3.87 weighted mean. For them, the benefits of management of transportation network in Taiwan get distributed widely through the tourism industry.
C. Interview
The result of the interviews presents almost similar results in terms of two areas: the planning strategy of the tourism agency and the support of the tourism business in developing the transportation network. Moreover, they supported the management of transportation network and asserted that is central to the aviation, transportation and other sectors connected to tourism.
The key personnel in the tourism development emphasised the role of tourism in developing the other industries connected to tourism. They asserted that the aviation industry particularly of Airlines in Taiwan has been seeing productive and profitable financial health because of the tourists. Commercial planes the suggested had also increased showed profitable years despite the economic fluctuations that the world had experienced. This goes to show that the tourism industry had been ensuring the health of the aviation industry. This is also supported by the two public tourism officials. They added that the aviation industry has also been supportive in return and has kept their plane fares reasonable. While the aviation industry remains competitive, there are enough tourists to keep the plane companies operating at a profitable level.
In addition, the interviewed personalities in Taiwan agreed that there are several factors affecting the development of tourism in every country specifically, the treaty relation with other country and beyond have been influential in bringing about the tourism development in Taiwan. The interviews from these personalities also yielded to a conclusion that tourism development is now a key economic area for further investment, re-generation of Taiwan revenue.
In terms of the transportation industry, public transports have also been enjoying a substantial share of the advantages that tourists bring. The public officials suggested that they have set measures preventing abuse from drivers and have built instructional guides to tourists on how to go around in the country. The efficient transportation services offered by Taiwan have also resulted in pleasant experiences of tourists.
In terms, of the planning strategy of the tourism sector, the interviewees showed a more conservative approach that the tourism development strategists. The interviewees supported a more conventional means of marketing the tourism industry by sticking to the historical tourist’s site whereas the development strategists stressed the importance of expanding tourists’ spots and developing new ones. There was also a divergence in their views on public consultation. The public officials were leaning more towards a more participative decision-making involving the residents. However, the tourism strategists were focusing more on the expansion and the marketing of tourism for the tourists. The result of the interview presented the concerns expressed earlier by the respondents of the survey while there has been differences in their perception of the tourism planning and how it should be done, they all presented the same view that transportation in tourism is a significant component of the Taiwan economy. Thus, tourism and transportation development must be advanced.
Part 3. SWOT and PEST Analyses
A. SWOT Analysis
SWOT analysis can provide a framework for identifying and analysing strengths, weaknesses, opportunities, and threat. This can also provide an impetus to analyse a situation and develop suitable strategies and tactics, a basis for assessing core capabilities and competences. Moreover, this can provide the evidence for, and cultural key to change and a stimulus to participation in a group experience.
Table 3. SWOT
STRENGTHS
WEAKNESSES
Ø Wide knowledge of industry
Ø Competent top management and rank & file for operation and maintenance
Ø Strong financial performance
Ø Strong returns through transportation
Ø Dedicated and professional employees
Ø Wide range of services and destinations
Ø Low supervision on international market
Ø High prices of services
Ø High operational costs
Ø Client losses
OPPORTUNITIES
THREATS
Ø Expansion of target market
Ø Healthy market environment
Ø Diversification
Ø Further development in Taiwan
Ø Vertical integration
Ø Economic restructuring
Ø Government regulation
Ø Volatile market condition
Ø Additional supplementary tax charge
Table 3 illustrates the SWOT analysis of the management of the transportation network in Taiwan. From these results and due to the dynamic changes happening in the society at present, including the advancements in science and technology and the development and improvement of market and business strategies, many business organisations like tourism industry focus on adopting suitable strategic options for the development of the industry. Through the effective management of the transportation network and identification of its drawbacks and strengths as seen in the SWOT table, the tourism industry can now formulate strategies to cope up with the changes emerging in transportation.
B. PEST Analysis
Another marketing model for analysis that can be utilised in order to analyse the corporate strategy of the Management of Transportation Network in Taiwan is the PEST analysis (See Appendix 4). PEST Stands for Political, Economic, Sociocultural and technological factors that influence Millipore’s overall performance in the market place. The PEST Analysis establishes a good analysis of the external effects on a company by breaking them into essential and obvious sorts.
Political Sector
The management of transportation network will not be able to gain success if they will not consider legal and political sector as part of their strategy. The organisation has observed business ethics. Hence, the organisation considers legality in all their actions. They make sure that all their services will be useful in response to their social responsibilities. Politically, the management of transportation network has tried to be helpful not only to tourism industry but also to the whole society. In fact, the organisation has established different transportation services for the public that support science and technological advancements.
Economic Sector
Economically, tourism industry in Taiwan is secured by having continuous growth rate throughout the years. Through the Management for excellence strategy, the industry as been able to established an economic stability to continue to serve and offer people from different agencies and sectors private or public, locally and globally.
Sociocultural Sector
Culture is an important factor in understanding an industry, because for any organisation to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organisation. (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organisations with their own national culture. In the management of transportation network, the management sees to it that they value the opinion of the general public. Moreover, the management of the transportation network has seen to it that they would be fair in treating all their allied industries.
Technology Sector
The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry (1993) . As mentioned earlier, the organisation establishes a research and development department which is responsible for the maintenance of the quality of the services of the organisation, innovativeness, and ensures technological advancement for all the activities of the organisation.
Herein, the management of transportation network uses state of the art facilities that will secure all their transportation service. Their technology is built upon the highest quality and functions in order to provide customer’s demands in transportation technology. Herein, the physical resources of the organisation were being monitored to maintain its efficiency to further enhance the services they offer to the business industries and to the general public of Taiwan.
Synthesis
Tourism is classically regarded as travelling for recreation although this definition has been expanded in recent years to include any travel outside of one’s normal working or living area. The tourist originated when large numbers of middle class people began to join aristocratic travellers. As societies became wealthier, and people lived longer, it became not only possible but probable that lower-middle and middle class people steadily employed would retire in good health and with some significant savings.
Most tourism planners consider maintaining and improving resident-tourist relations critical to the long-term viability of tourism destinations (1998). Resident attitudes toward tourism development range along a continuum from negative to positive. (2000) found that despite positive feelings toward tourists, residents often noted specific negative impacts.
These impacts included increases in unsafe traffic conditions, crime, drug addiction, and alcoholism. Benefits perceived by residents included increased employment opportunities, income, tax revenues, and quality of life. Many tourism researchers have assumed that determining sources of negative impacts can result in policies that mitigate them and improve resident attitudes (1994;1993). (1994) hypothesised that residents with strong feelings of community attachment were more likely to have negative attitudes toward tourism development than less attached residents, but their results refuted this notion. With regards to Taiwan’s Tourism Industry, Taiwan transportation and hotels should be taken in consideration.
Chapter 5
Summary, Conclusions and Recommendations
Summary
From the findings in this research, successful strategy requires the tourism industry to choose the markets in which its distinctive capabilities yield competitive advantage. But the adaptive, incremental nature of strategy means that the starting-point is where the industry is now. Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet needs of the markets and fulfil stakeholder expectations. The strategy answers both the questions “where do you want to go?” and “how do you want to get there?” but the first question is answered when each industry set the goals and the second is answered when such industries plan the strategies.
The traditional approach basically focused on the first question but the traditional approach gives equal importance to both of them. While developing a corporate strategy for the any profit organisation, the management have to keep in mind the demand of the customers and the marketability of the services offered. These generic strategies are used by different organisation because of the potentialities that the management have seen with these strategy and the benefits it may provide. However, if the organisation should not strongly commit themselves with these strategies, like what most tourism businesses in Taiwan have done, then, instead of achieving competitive advantage within the marketplace, the industry might be at risk of falling. These generic strategies are guiding an organisation relative to challenges and opportunities appearing in the contingent environment. This environment is composed of those external elements that most directly affect organisational goal achievement and new goal development. Thus, organisation system design and management should complement strategic actions taken for productive subsystems, as well as those providing output delivery and other support functions for the organisation. To the extent possible, the organisation bases its actions on strategic planning that, rather than a one-time effort, is an ongoing process of adaptation of original conceptions of mission, goals, structure, roles, and so forth relative to environmental dynamics.
From this, the management of transportation network has remained an integral part of development planning of tourism in Taiwan. In some cases tourism has been viewed as a saviour to stagnant industries and traditional agriculture, creating new inter-sectoral linkages and demands. Specifically, the different branches of the tourism industry, such as accommodation, catering, food and beverages, excursions, recreational activities and the entertainment industry, tour operating and transport, souvenir production and sale are considered to open vast prospects for employment and income to diverse population groups. Governments, associated business groups and international financing institutions tended to regard tourism as a ‘clean’ industry compared to manufacturing.
Conclusions
As illustrated in the previous chapters, tourism is an “invisible” industry, encompassing transportation, lodging, and entertainment. Unfortunately, tourism is also invisible to many planners, so tourism development is often left to private developers and leisure service providers. Scholarship on tourism planning remains scarce some 15 years after it was announced as one of planning’s “emerging specialisations” (1988 ). Given tourism’s substantial social, economic, and environmental impacts–positive and negative–planners can no longer afford to dismiss tourism as tangential to other planning functions.
On the other hand, competitiveness of transportation network in tourism has become increasingly important for Taiwan as they are striving for a bigger market share of the fast growing industry tourism. The issue is especially crucial for many ‘tourism dependent’ countries such as Taiwan, which rely heavily on travel and tourism industry for their economies. Moreover, the role of travel and tourism industry in most countries also tends to increase overtime, further highlighting the importance of travel and tourism industry in the economy.
From the results of the survey analysis, PEST and SWOT, Taiwan is a competitive tourist destination with respect to management of the transportation networks. Aside from this, Taiwan also promotes the region on its beautiful environmental aspects. The expanses of sea and unpolluted beauty of Taiwan environment is a strong attraction to the travelers, to promote a harmony in their busy lives. This can be integrated into different market niches. In addition, the mystery and romance of the diverse cultures of the country can provide an attraction to niche markets such as wedding and honeymoon and those seeking adventure and ecotourism holidays. The friendliness of the Taiwanese, their smiles and genuine warmth are all a part of this cultural paradigm, making the visitors feel at home in unfamiliar surroundings.
These elements provide the comparative advantage Taiwan can offer over other holiday destinations in the Asian region. As environmentally and culturally based products do not follow the usual product life cycle, and can have a prolonged maturity phase due to the uniqueness, scenic attributes, historical and cultural value of the products, these elements need to be preserved, protected and carefully exploited through ecotourism and responsible tourism practices. This will maintain the aspects important for the tourists’ needs for harmony.
Moreover, strength of Taiwan tourism lies on its aggressive promotions. The “word of mouth” and “seeing is believing” are important mediums to translate perceptions into realities. Taiwan is adopting strategies in boosting its tourism industry. These include familiarisation tours involving the media, magazines and newspaper travel editors. Moreover, the Taiwan tourism is boosted by its improved destination information. With the utilisation of the Internet, tourism operations are able to update tourists in a very timely manner. Additionally, the Internet, as a growing marketing tool, makes marketing promotion cheaper, more effective and interactive.
Recommendations
Aside from the development of the management of the transportation network in Taiwan and in order to attract more tourists, tourism operations in Taiwan need develop a clear and concise wholesale and retail price lists based on the greater number of tourists that prefer package tours. In order to be competitive, there needs to be developed competitive packages which offer optional activities at reduced and reasonable prices. Prices are competitive with other tropical destinations for air transport, accommodation and activities.
Package prices need to reflect what the tourists expect to pay for a holiday, while considering costs. The cheapest holiday package is not necessarily the most desirable or successful. This is particularly important for such travel as weddings and honeymoon travel and different activity travel. The wedding and honeymoon market can be further developed as there is less concern for price here and the romance and mystery of Taiwan can be exploited, utilising the unique cultures and environment.
The development of a “Taiwan Brand” differentiates the different forms of holiday travel from that of other tourist destinations. Branding includes elements of friendliness and tourism of the Taiwanese; its diverse culture; relative safety of locations; and the pristine environment of Taiwan. Tourists are targeted through a cognitive based impact, allowing them the opportunity to be part of a different culture in a different environment for a short time, giving them a feeling of responsibility and belonging.
To meet the travellers’ needs for recreation and relaxation based holiday, there is a need for careful positioning of the Taiwan tourism products, as there is a high competition in other destinations for the majority of tourism products the region has to sell. Areas in which the country has a comparative advantage over other competitors, such as the eco-cultural experiences, need to be preserved, highlighted and exploited, with information on the specific niches and their positions disseminated through appropriate channels. These different unique eco-cultural aspects, boasting a competitive advantage include Taiwanese cultural experience. The destination has a diverse cultural attributes and characteristics, making it both exciting and mysterious to the traveller. This experience and its mystery needs to be exploited on a commercial level, while preserving the cohesive cultural structures for future generations.
The Taiwan tourism industry must also continuously develop quality products. As the global leisure market is growing and the need for relaxation is becoming increasingly important, the country can boost the rest and recreation aspects of the travel package. Taiwan boasts several world-class up market hotels and resorts. These hotels and resorts have what resorts from other countries do not have: the Taiwan flavour which is characterised by friendly, genuine and quality service. A growing sports activity product is also part of a package, which can reduce the costs of the total holiday package. These advantages must be maintained and promoted to exploit the benefits of this market.
Taiwan tourism bodies must develop responsible tourism products. This can include ecotourism and community based tourism and should be promoted and further developed to maximise the promotion of culture and environment in a sustainable manner. The unpolluted environment is very important to foreign tourists. As noted, beaches, sea and beautiful people were the main characteristics of Taiwan. Although many of the tourism operations in Taiwan achieved world-class standards, many are small, nationally owned, with few resources. Therefore, they should strengthen, upgrade and improve the products to meet international standards. With strengthening, many of these tourist operations will offer a nature and cultural based product, which can leave an unforgettable image in the mind of the traveller.
Appendix
Questionnaire
The researcher is conducting a study on the management of the Transportation Network in Taiwan’s Tourism industry. To enable the researcher to accomplish this study, please kindly answer all the items in the questionnaire. Your assistance would be very much appreciated.
Please note that information given will be treated in strictest confidence.
Thank you.
Part 1. Demographic Data
Please fill up in all the necessary information about yourself. Don’t leave any item unanswered.
a. Age ________
b. Sex
Male ( ) Female ( )
c. Marital Status
Single ( ) Married ( ) Separated ( ) Widow/Widower ( )
d. Educational Background ________________________
e. Occupation ____________________
Part 2. Impact of Management of Transportation Network to Residents and Community
1. The management of transportation network is good for the local economy.
5 4 3 2 1
2. The current management of transportation network in Taiwan eases the traffic and parking problems.
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3. The management of transportation network proves to be an advantage rather than a disadvantage.
5 4 3 2 1
4. The management of transportation network is the answer towards transportation issues.
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5. The management of transportation network helps to attract more tourists.
5 4 3 2 1
6. Most of the Taiwanese commuters accepted the practices of the management of transportation network.
5 4 3 2 1
Part 3. Impact of Management of Transportation Network to Tourism Industry
1. The management of transportation network in Taiwan affects the overall process in Tourism Industry.
5 4 3 2 1
2. The tourism industry shows improvement because of the management of transportation network.
5 4 3 2 1
3. The benefits of management of transportation network in Taiwan get distributed widely through the tourism industry.
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4. Because of the management of transportation network in Taiwan, the tourism industry can cope with the number of tourists.
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5. The management of transportation network in Taiwan helps to improve the services in tourism industry.
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6. The tourism industry shows acceptance to the management of transportation network in Taiwan.
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Interview
Directions: List down your concerns and suggestions regarding impact of management of transportation network in Taiwan’s tourism.
What are the most common problems you’ve encountered with regard to the management of transportation network in Taiwan’s tourism?
a.____________________________________________________________
b.____________________________________________________________
c.____________________________________________________________
What solutions would you suggest to solve these problems you’ve mentioned?
a.____________________________________________________________
b.____________________________________________________________
c.____________________________________________________________
Credit:ivythesis.typepad.com
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