Chapter 1


The Problem and Its Background


 


In this chapter paper, the background, significance of the study, and scope and limitations of the study are presented. Moreover, the objectives of the study and the statement of the problem are formulated. Here, vital concepts, questions and assumptions are stated.


 


1.1 Background of the Study


            Tourism is one of the recreational practices an individual undertakes. People who exercise tourism are called tourists. According to  (2005) due to the fact that tourism is now one of the most popular recreational activity of people all over the world, in the year 2004 around 763 million tourists arrive in various parts of the world. Tourism plays a vital and crucial role in the economy of any country because the income and profit that is being obtained by the utilisation of products and services of the tourists will generate taxes which can be levied to the government. In addition, tourism provides employment and aids in the development of the economy of the nation. According to  (2000) tourism is not just a recreational and decorative activity but instead tourism correlates centrally to the modernity in numerous dimensions such as politics, moral, economical and technological.


            In Hong Kong, tourism was regarded as one of the important sector of their economy. Actually, Hong Kong is one of the most popular destinations in the world and the tourism industry is one of the most important aspects in the economy of Hong Kong.  According to the  (2007) the industry held another record last 2006 in which more than 25 million tourists arrived in Hong Kong. In order to maintain the number of tourist arrivals in Hong Kong, the tourism department plans, develops, and audits the possible competitive destination.


            Hong Kong government gave efforts to enhance their tourism industry.  Actually, Hong Kong created the Individual Visit Scheme in order to increase the number of tourist visitors. In Hong Kong tourism history, the outbreak of SARS in Hong Kong from March to June 2003 resulted in a sharp drop in the number of both Mainland and overseas visitors and the creation of Individual Visit Scheme was designed to allow travellers from Mainland China to visit Hong Kong and Macau on an individual basis.


 


1.2 Aims and Objectives of the Study


            While the background of the study gives information regarding tourism and Hong Kong, the research also needs to have its own aims and goals that must be followed for the completion of the study as well as the integration of the information that will be gathered based on the research questions. At the end of the study, there is the need to ensure that each of the objectives is met in order to guarantee that the study has managed to gain the information that can garner for the formulation of the conclusion.


 


            As such, the objective of the study will be thus:


  • To be able to assess the current status of economy of Hong Kong.

  • To assess the perception of the respondents regarding the current status of tourism industry in Hong Kong.

  • To investigate and clarify the effect of Individual Visit Scheme on Hong Kong Tourism industry.

  • Finally, this study aims to integrate all these information together and be able to assess their interrelationship and their relevance of their information.

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                By integrating these information and coming up with a conclusions that will help with the information-exchange and thus may be the basis of other studies. Moreover, it may also be the bases of information that may be beneficial for other organisations in Hong Kong, especially with regards to the factors that the organisation may be find useful for its success. While this may not be the regular procedures that other organisations may take, it nevertheless may give other organisations a chance to build the foundation from which they may be able to push their organisation into a jumpstart, thus another objective of this study is to be able to provide true and useful information that may be used for other practical reasons and can be used for other reason as well as the improvement of the organisation or Hong Kong economy in the study itself.


     


     


    1.3 Research Questions


                The previously given discussion shows the general direction and aim of the study, as well as the purpose, however there is also the need for the researcher to elaborate some questions that will be enable to study to go into a certain direction, especially with regards to the nature of the problem being researched. The research questions will then serve as the guide for the researcher for the information that should be gathered from the sources as well as the methods in which they will be extracted from the sources.


     


                As such, the following will be the research questions:


  • What is the status of Tourism Industry in Hong Kong?

  • Do Individual Visit Scheme directly affect the condition of Hong Kong Tourism Industry?

  • Is there any significant difference between the perceptions of respondents regarding Individual Visit Scheme of Hong Kong Tourism Industry with respect to their gender?

  • Is Individual Visit Scheme directly positively affect the condition of Hong Kong Tourism Industry?

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    1.4 Significance of the Study


    This work will be a significant to tourism authorities and business in Hong Kong. The researcher believes that the tourism schemes will curb tourism problems and will benefit the tourism industry and Hong Kong businesses as well. Also, this study may provide insightful recommendations on the subject of environmental issues that may become useful contribution in the field of Hong Kong economic progress. Finally, this study may provide authentications on existing theories on consumer spending or at least provide generalizations that may also contribute in the academe field (e.g., students and researchers).


     


    1.5 Scope and Limitations


    This research will only discuss issues involving the impact of Individual Visit Scheme in Hong Kong. However, related literature and studies cited for this study came from different parts of the globe so as to draw information about tourism, economic development and SARS impact. Other countries with similar experience will also be cited and discussed briefly. The outcome of this study will be limited only to the data gathered from books and journals. As this study is specific to Hong Kong, a similar study on other underdeveloped countries is further suggested. Projected time period for the implementation of this study will be at least three to five months, or if possible, even shorter than three months, as long as all the objectives of the study have been met.


    This research work was limited financially due to other expenses and projects/activities outside this study. Time was limited, too, due to other obligations apart from the study.


     


     


     


    Chapter 2


    Review of Related Literature


     


    This chapter will be discussing the findings of related research to this study. It will provide a discussion on the significance of this study to the existing literature. Moreover, this chapter will discuss several issues regarding Hong Kong development and tourism based on the existing literatures. The following discussion chronicles the subject of Individual Visit Scheme, tourism, and SARS.


     


    2.1 Individual Visit Scheme


                (….to be continued)


    2.2 Tourism as Business in Hong Kong


                Hong Kong’s identity as one of the most promising and vibrant tourist destination in the world is uncontested. It projects an aura of opulence, efficiency, and high-tech competence ( 2002). Hong Kong had many unique competitive advantages such as the hardware and software required of a world-class city, including keen business acumen, well-developed infrastructure, versatile financial system, robust legal institutions, policies conducive to a free and open society, clean and efficient civil service, simple and low tax, large pool of talent and very cosmopolitan community (2003). Because of its abundance in several attractions like Ocean Park, tourists flock their way to experience Hong Kong’s magnificence and top offers. Offerings for visitors of the region range from various to rich assortment of food, entertainment, culture and lifestyle. Hong Kong locates in a favourable geographic location in the centre point of Asia Pacific region with a minimum 5-hour fly reaching most of the areas worldwide. With the support of region’s hardware, events tourism thrives on this piece of land – commercial, social, cultural, educational in nature are present in this venue.


        In 2006, the Hong Kong Tourism Board (HKTB) works its way to promote the region as “Events Capital” of Asia. There are several ways being studied, designed and implemented to realize such vision. The primary responsibilities of HKTB are to market and promote HK as a destination worldwide, as well as to take initiatives to enhance the experiences of its visitors once they have arrived. Its mission is to maximise the social and economic contribution that tourism makes to the community of Hong Kong, and to consolidate Hong Kong’s position as a unique, world class and most desired destination (HKTB 2006). The existence of the developmental action plans, policies, and programmes to promote Hong Kong as a top tourist destination is evident. With this known fact, there is a wide assortment of information that documented the efforts of developing its tourism planning and economy.


     


    2.3 Tourism and SARS in Hong Kong


        Much has been written and documented in the subject of SARS. Research studies vary from medical, economic, sociological, political, industrial, consumer, and business perspectives. Generally, a comprehensive authoritative guide for managing crises and disasters in tourism risk management for the Asia Pacific region was provided by  (2005) have conducted a research study on the SARS-related perceptions in Hong Kong.(2003) wrote an inclusive literature of the SARS epidemic in Hong Kong while  (2005) discussed pertinent factors about SARS and its effects in relation to public health.  enumerated the peculiarities of the disease like its novelty, ease of transmission in certain settings, and the swiftness of its spread through plane travel, joint with extensive media coverage; psychological impacts; international travel policies released by authorities; governments’ and press’ role in fair and balance communication and risk management; pre-departure screening in airports; screening and infection control capacities at points of entry into the healthcare system; and others. Incorporated in the research body are lessons learned during the outbreak and its effects on the overall scope of international travel.


        Meanwhile,(2004) reviewed the spread and impact of the SARS virus within Southeast Asia from a human security perspective. It is intended that the utilisation of human security in this instance will not only provide a better understanding of the impact of SARS on regional states but will also advance the conceptualisation of the human security model (2004). Several empirical research studies conducted are bounded on the economic aspect.  and  (2004) provided an assessment of the global economic impacts of SARS and a more comprehensive approach to estimating the global consequences of major disease outbreaks using the a global model called the G-Cubed (Asia Pacific) model. Specifically,(2004) focused on the economic impact of SARS in Hong Kong wherein the chronologies of SARS as the first deadly infectious disease of the 21st century – its spread in Hong Kong, number of cases, and affected regions. Also, demand and supply side is discussed.


        In relation to tourism industry, numerous research articles are published. (2004) made a case study on the impact of SARS on Hong Kong’s tourism industry, with special attention given to the chronological arrangement of critical SARS-related events. Their findings affirmed that the epidemic had brought out negatively profound impact not only in Hong Kong but also to world tourism particularly strong impacts on Southeast Asian countries. (2004) evaluated the effects of SARS on the Chinese tourism and hotel industry – from Mainland China and territories like Hong Kong and Macau. Findings avowed that the overall effect of SARS to the Chinese economy is relatively minimal yet  reiterated that the main lessons are deemed to be social and political in applications.  (2005) also assessed the effects of SARS on Hong Kong tourism industry as they give an empirical evaluation of extensive body of knowledge on the pervasive effects of the disease to almost all industries related to hospitality, travel and tourism.  (2004) expounded on the overreaction to SARS and eventual collapse of Asian tourism. They evaluated sensationalism brought about by various channels of communication (e.g. media) and provided significant facts about the real nature of the condition.


        Other related studies on the effects of SARS in the tourism industry fall in the subject of consumers and their behaviours, and marketing management conditions.  (2004) explored consumers’ perspective in their research wherein they discussed the reluctance of Hong Kong consumers in purchasing travel online due to issues like privacy, security and poor customer service, time savings, site usability and information provision. Other consumer-based researches are mainly focused on consumer satisfaction and other related issues. colleagues (2004) investigated the patterns of behaviours and attitudes related to SARS prevention in Hong Kong’s cross border traveller population using the survey method. They found out several practises done by the respondents surveyed as follows:


    ü                  Around 40% of the respondents were using masks all or most of the time in public places or washing their hands frequently (>10 times per day) and about one third avoided visiting crowded places in mainland China.


    ü                  Around 70% of the travellers would have delayed medical consultation for influenza-like illness in China; 12.7% would not wear masks during such episodes of illness.


    ü                  About 30% of the respondents used to wear masks in Hong Kong but not in mainland China.


    ü                  Gender differences were also observed.


     


                Lastly, (2006) examined the impact that SARS on the marketing management functions using the case study method. They provided recommendations for how uncertainty may be managed in increasingly ‘globalized’ world while aspects of strategic and risk-management, supply-chain management and corporate strategy, and planning are extensively discussed.


    Records from WHO (2004) stated that SARS outbreak in the 2002-2003 only resulted in 774 deaths. Together with weak domestic demand conditions, it resulted in low growth in parts of East and Southeast Asia (such as Hong Kong, Korea, Taiwan and Singapore) (ADB 2004). Generally, the outbreak of SARS directly and indirectly affected various industries of Hong Kong and the world. In this context, marketing activities prove to be necessary in creation of destination image and attraction and maintenance of profitable customers. These activities start with management of tourist destination, including infrastructure, environment and natural attractions, development of specific strategies and investments, segmenting and monitoring the tourist market, communication with tourist market, and organization and management of tourism marketing (1996).


     


     


     


     


     


     


     


     


     


     


     


    Chapter 3


    Methods and Procedures


     


    This chapter will be dedicated to the description of the methods and procedures done in order to obtain the data, how they will be analyzed, interpreted, and how the conclusion will be met. This section is to justify the means in which the study was obtained and will help in giving it purpose and strength as it will then be truthful and analytical. All these will help in the processing of the data and the formulation of conclusions.


                Specifically, this research will cover the following: the research design and method, the respondents or subjects to be studied (which will include the sampling method), the data collection instrument, and the data analysis. These will be presented below.


     


    3.1 Research Design


                The research design chosen both qualitative and quantitative research, which uses explanatory methods in describing the variables wherein the data, situations, or other facts collected will be explained or correlated with other data. It is especially useful when conducting a study wherein the data are immeasurable, such as feelings, beliefs, thoughts, and others (2000). Furthermore, the study will be descriptive as it will focus on the conditions set and the nature that surrounds the data and does not focus on the correlation with other collected facts.


    3.2 The Respondents


                The researcher, in choosing subjects or respondents for the topic at hand, is usually thought of to have the power over who the respondents of the study will be. Such a task would have been easier, except a researcher cannot simply choose out of whim; the subjects must be selected carefully with the intention of having subjects who each posses characteristics that, when put together, will represent a community. It is not only themselves whom these subjects will represent, but the bigger whole or the whole population. The characteristics which the researcher has chosen them for will determine which part of the community they belong and what part of the community they are representing. Thus, the choosing of the subjects must be based on their characteristics.


                In this study, it is necessary to collect information from Hong Kong Tourism’s clients.


     


    3.3 Data Collection Instrument


                In order to obtain the desired data, the researcher has chosen to use the primary research data, which is to collect firsthand the data to be used for the outcome of the research. In able to do this, the researcher must have a data collection instrument to be presented to the respondents. Thus, the researchers have chosen obtaining data through the questionnaire. The questionnaire is administered by writing questions on a page and distributing it to the respondents, expecting them to return the paper with their answers on it. This is easier than other methods of data-collection (e.g., interview, observation, etc.) as particular details may be hard to talk about during interviews and cannot be drawn out from observation.


                The advantage of using the questionnaires method is that the respondents have time to think of their answers, thus allowing smaller rate of errors. Also, concerning delicate matters, the respondents may feel more at ease when answering questionnaires as they are not required to speak with someone else in order to give information. The disadvantage of the questionnaire method is when the respondents are unable to read or write; then the questionnaire will be rendered useless by the respondents as they may need interpreters for the questionnaires. Thus, in case such that unlikely event may happen, then the researcher will have no choice but to quickly switch to the interview method, wherein the researcher will be allowed to interact with the respondent and ask the questions based on the prepared questionnaire.


      3.4 Instruments to be Used

    To determine the perception of the respondents about the status of Individual Visit Scheme and Hong Kong Tourism, the researcher prepared a survey-questionnaire. The respondents graded each statement in the survey-questionnaire using a Likert scale with a five-response scale wherein respondents were given five response choices (1994). The equivalent weights for the answers were:


    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 respondents. The questionnaire was designed to allow the collection of specific information about the participants to conduct statistical analysis, e.g. age, gender, and social status.


     


    3.5 Data Analysis


                In order to correctly interpret the data in such a way that its result will reflect what the study originally intends to show then the researcher must employ the correct and accurate way of data analysis.


                Moreover, simple statistics can be done and applied, and it will be easier to determine the status of the perception of the respondents regarding Individual Visit Scheme and Hong Kong Tourism.


     


    3.6 Summary of Action


    As stated in this chapter, the researcher undergoes stages. In the research design, the researcher collected secondary data and formulated and developed the questionnaire. In this stage, these instruments were subjected to approval and validation. During the data collection, the researcher collated and summarized the data obtained from the Hong Kong development reports, questionnaire and survey. The researcher analyzed these data and from these, findings and recommendations were presented.



    Credit:ivythesis.typepad.com


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