Research Articles Base: Hong Kong Tourism

Contemporary Issues in Tourism

Contemporary Issues in Tourism   Introduction The Hong Kong Special Administrative Region (HKSAR) Government views tourism as a sustainable industry and one of the major pillars of Hong Kong’s economy (2001).  As the Government realizes that tourism (1995) is a vehicle for economic and social development, some proactive policies and contingency planes had been adopted to further strengthen and enhance Hong Kong’s capacity to be a key tourist destination. However, even if Hong Kong has been able to manage the tourism issues and problems well, there are still issues that they should consider so as to sustain the development of their tourism industry. Primarily, the main goal of this paper is to identify the contemporary tourism issues and determine how these issues affect both the community and the industry.     Tourism Issues Five to ten years from now, tourism will be envisioned as an aspect in which progress is utmost. Many alternative tourism activities and programs are implied to drive this development. It includes movements of persons for essentially cultural motivations such as study tours, performing arts and cultural tours, travel to festivals, visits to sites and monuments in which all movements of persons satisfy the human need for diversity, tending to raise the cultural level of the individual giving rise to new knowledge, experience and encounters ( 2002). In contemporary tourism, we have seen a development from mass tourism to alternative tourism, and this trend marks the changes from modern to postmodern age. The issue of mass tourism was criticized for its pessimistic impacts on environment destruction as was evident in the slow but sure change in the late 1970’s to the 1980’s, which saw the manifestation of alternative tourism (1998). However, it also recognized that such economic gains from the commercialization of tourism can directly or indirectly help in supporting the conservation missions of these tourist attractions.  (1993) as well as  (1995) raised a question which inquires into “ascertaining to whom the past belongs” associating it to the influence the conservation processes of tourist attractions.   Analysis of the Issue As mentioned above, the contemporary tourism issue that should be given attention is the commoditization aspect and the destruction of environment. Commoditization refers to the social heritages that become or treated as a sanitized package offering and glorified version of cultural artifacts and experiences for public consumption just like a commodity. Tourism has been criticized for presenting the concept of heritage in exploitative manner in which commercial considerations outweigh the historical accuracy and value. In this sense, communization is argued to result to the static portrayal as well as “production of staged authenticity” which is popular in village folk museums, pseudo-festivals, trivialization, and mass-produced handicrafts therefore, highlighting the substitution, reconstruction, replication, reproduction, simulation, invention, and permutation of otherwise authentic artifacts ( 1993;  2000).        According to  (1994) and (1983) a culture is said to be commoditized for tourism when the customs, rituals and arts are performed or produced for tourist consumption changing not only the meaning of cultural products but also the human relations between the producer and the purchaser, the history of these relations, and their ethnic identities (, 2000). Moreover, the commoditization of tradition as a tourist product can likewise create and perpetuate misinformation in the form of stereotypes, biased viewpoints, and prejudices since heritage tourism in particular often serves to facilitate the construction and dissemination of “hyper-real images” of the lives, cultures and traditions of host communities.  On the part of the tourists, such involvement in the commoditization is inevitable in their quest to getaway from their routine life and to seek and be exposed to extraordinary and alternative environment, behavior and living ( 2002).     Discussion Tourism is regarded as the world’s largest industry in the 21st century.  In this manner, more and more places especially like in Hong Kong have been able to use their natural resources and also their tourism development and creativity to make their regions or sites become the number tourist sites. It was mentioned above that there are various issues that should be considered in the tourism industry. These issues may have positive and negative effect in the community and the tourism issues and problems as a whole.  Tourism issue, if managed strategically and efficiently, it would likely to provide economic growth for the place.              First, the tourism issues if managed properly and solve efficiently may be able to enhance the employment status of people. Because of the large number of tourists, more individuals are needed for construction purposes to build more accommodations, restaurants and other infrastructure that will enhance the tourism ability of the area. In this manner, when these people are working, they will have a stable income which may help them avail the products and consumer goods in the market place.  Hence, more demands are required which will basically permit the enhancement of the economy. Further, the tremendous growth any trends of tourism in Hong Kong may have a tendency to attract more investors to invest in Hong Kong. To be able to invite tourists, a certain place must be attractive so place would be given the chance to improve more landmarks and other tourist-spots within the area.  Although, tourism issues may post significant advantages for Hong Kong community and tourism industry it also encompasses some disadvantages.  One of which is the notion that there are some tourists which may cause pollution and can destroy the natural environment such as noise pollution and visual pollution from different infrastructure built for enhancing the tourism industry.  In addition, reengineering of a certain place to build other buildings that will contribute to be one of the central attractions for Hong Kong is costly and that the funds that have been spent may have been better used for other needs of the place or the regions such as educational needs.  In addition, there are some tourists who do not respect traditions, customs and cultures, hence, will result conflict among tourists and residence.  Another disadvantage of tourism is it may destroy the natural beauty of a certain place and it may provide the loss of open spaces for future needs.  Crowding and congestion are also some pointed disadvantage that Hong Kong may experience due to the rapid growth of tourism.     Conclusion With the issues and problems faced by the tourism industry, it is but necessary to address tourism issues accordingly. Tourism and the changes in the social, economic and cultural environment call for the necessary measures of proving otherwise the claims made in the previous researches. The challenge that confronts the people in the tourism issues and problems is how to manage their attractions grounded on the standards and ideals of the preservation of the historic context and integrity of promoting particular places and artefacts. This will not only uphold the quality of the services provided by the tourism issues and problems but will likewise serve as an excellent tribute to the history that produced our contemporary society. The conflicts which arise from differing cultural interpretation should be in the realm of constant evaluation and adjustment.       Moreover responsible and educational tourism involves social responsibility, a strong commitment to nature and the integration of local people in any tourist operation or development that meets the needs of present tourists, host regions while protecting and enhancing opportunity for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, and biological diversity and life support systems in which tourism products are operated in harmony with the local environment, community and cultures so that these become the beneficiaries not the victims of tourism development. Resolving immediately the differences that hinder the balance of cultural preservation and economic considerations in the tourism issues and problems should be the number one priority.    Credit:ivythesis.typepad.com

Contemporary Issues in Tourism

Contemporary Issues in Tourism Introduction The Hong Kong Special Administrative Region (HKSAR) Government views tourism as a sustain...

Data analysis

Data Analysis             The research findings gathered from the investigation showed a number of important implications. One of which is that majority of the participants used in the study were dissatisfied of the tour-related products and services provided by travel agencies in Hong Kong. This tourist behavior is brought about by several factors. Among the satisfiers, respondents noted that poor escort and tour guide quality serve as one of the causes of tourism dissatisfaction in the country. This can be related to how travel agency managements handle their operations, particularly their staff. Specifically,(1990) noted that how the managements train, motivate and recognized their employees results to a significant effect on the quality of customer service they deliver.  In addition, the level of commitment the management provides on this matter also has a direct impact on the quality of customer service a company provides.   According to  (1997), the empowerment of employees should be a priority. This plays a significant role in speeding up the company’s utilization of personnel for optimal effectiveness. Within an organization, an important behavior is the inclusion of constant improvement, which enables it to apply innovations and strategies that are more appropriate. Training the employees properly and increasing their responsibilities are then the important organizational behaviors that must be observed not only in tourism companies but businesses in general. The value that the management puts on employee empowerment results to important customer service outcomes. For example, through proper employee training, employees become more efficient in handling customer concerns by providing effective solutions. Based from the gathered results of the study, respondents who are dissatisfied with the tourism services in Hong Kong are those who have good educational background and economic status. This implies that customers are aware of what makes a tourist package or service efficient and satisfactory. From this it can be concluded that customers are more knowledgeable, selective and expectant. Thus, the management must be committed in enhancing their employees to become good providers of customer service ( 2005).   As agencies lack the observation of employee empowerment, resulting to poor tourism quality services, it can also be drawn that the level of communication within the agencies also needs improvement. In order for employees to participate effectively in providing quality customer service, communication is important. In self-managed teams for instance, the quality of customer service provided are significantly enhanced when effective and open communication is practiced (1999). This is primarily because communication allows employees to learn from others, including company standards and information updates. Learning this information can help employees apply appropriate strategies when handling customer concerns. Aside from knowledge enrichment, communication among employees also allows the coordination of different departments handling customer services. Through coordinated efforts, employees are more organized, resulting to higher chances of customer satisfaction. In addition, communication also helps in establishing harmonious relations within the workplace, which makes goal achievement easier and faster.               In the article done by  (1992), it has been cited that quality customer service is a multi-faceted concept as it is influenced by a number of different factors. Specifically, reliability, empathy, assurance, responsiveness and tangibles are considered to be the main dimensions of quality customer service. In line with this perspective, the role of the employees in providing quality service to customers must be supported by these dimensions. Hence, values and attitude towards work and service is also important among employees.   Employees should not just resort to vague solutions; it is important that the employees provide reliable information. Otherwise, this will only result to more customer dissatisfaction. They must also have a working principle that is not substandard to the company’s expectations. Most importantly, the employees must have a strong sense of accountability and professionalism in serving the customers. It is significant that the employees realize that quality service is not only for the sake of achieving the goals of the company but because customers are valuable. In addition to lack of employee empowerment, travel agencies in the country and its poor services can also be attributed to other factors. Specifically, the management sector of these agencies may have neglected some aspects that are essential in building effective customer services. These include leadership and openness to change (2000). In order to train the employees and provide satisfaction to customers, the management must have effective leaders that will orchestrate accomplishments, direct all efforts to set objectives, coordinate resources, address financial needs, give emotional support and promote teamwork. In addition, the leaders must be willing to change conventional methodologies and be open to accept new business practices for enhanced customer services. Generally, the role of the management in order to establish quality customer services should be characterized by commitment, leadership and adaptability. It is then important for the management to be involved in the concept of quality service, instead of just placing all the responsibility on the employees. In delivering better customer services and minimizing complaints, both the management and employees should then be actively involved.   Another important implication that can be drawn from the research findings is the necessity of understanding the customers. The results showed that travel agencies in general provide satisfactory response to the complaints of the clients. Within a reasonable period of time, agencies can reach a form of settlement with the client, usually through verbal negotiation. Other means of settlement can be through apology letters, refunds, compensation or legal action. Despite these efforts, it should be noted that while agencies can resolve the complaint, they have already lost valuable repeat customers. In this case, it is essential that travel agencies in the country learn the value of customer loyalty.   It is a known fact that customer loyalty is beneficial to businesses as it helps in building good company-customer relations as well as achieving high profitability. Customers are said to be loyal when their buying behavior remains consistent to one type of item and completely ignore the pleas of competitors. There are a myriad of ways on how this loyalty can be achieved. Among these methods include customer satisfaction. Previous researches have concluded that satisfied consumers are more loyal to the product as compared to unsatisfied customers (2000). Customer behavior is yet another factor that affects consumer choices and trends. Recognizing consumer behavior’s essentiality to business, marketers attempt to develop means on assessing or measuring how a customer behaves. Examples of these measurement indicators are customer longevity that pertains to the period over which a consumer purchases a certain item, and customer consistency, which refers to the number of times a consumer purchases goods over a particular period ( 2000).   Aside from these factors, individual characteristics inherent of a customer, such as personal interests, lifestyle and economic reasons are among other factors that directly affects consumer preferences. The dominance of these affective factors is also dependent on the culture, population and product item involved. In other words, achieving customer loyalty lies on learning and knowing ones customers. The company should among others, consider the viewpoints of it customers, including their needs, interests and preferences. Rather than concentrating on personal objectives and requirements, the company should exert effort in studying their customers. By doing so, their level of commitment towards service quality significantly increases.   Aside from being more knowledgeable, customers have more options that influence their purchasing behavior. This implication has been emphasized in the response given by the dissatisfiers. In particular, participants can be categorized into two: the non-action and the action tourists. While action tourists are those that openly voice out their complaints on the services given to then, agencies should also consider non-action clients who neither display their dissatisfaction nor employ the services of dissatisfactory agencies again. Tourist companies should take due attention on this type of customers as negative word of mouth can not only affect existing client count but the gain of potentially interested customers as well. In general, the analysis of the study’s findings stress that the dissatisfaction of the tourists for Hong Kong travel services is mainly brought about by poor quality services. Furthermore, efforts to improve current operations must be planned and carried out.   Summary             Hong Kong is one of the most popular tourist destinations in Asia. In particular, the country is visited by tourists worldwide for its shopping districts which offer products at good price deals. However, statistical reports have shown that the rate of tourists visiting the country has been declining over the years. This outcome has been attributed to the increasing prices of the goods as well as the poor services offered to customers. The congestion of the main tourist sites of the country as well as the weather have also been considered as external factors that are affecting the level of tourism in the country. Travel agencies operating in the country are also receiving more and more complaints from clients, resulting to high customer dissatisfaction. This study was then conducted in order to investigate on the current behavior of the customers towards the travel agencies tourism services as well as the effect of this behavior. This study was also done in order to identify the problem areas related to the tourism services provided by the agencies as well as the means on how these can be solved.               In order to gather relevant data that would help achieve the objectives of this study, the research conducted a descriptive research, participated by a total of 100 respondents. The respondents were Hong Kong shoppers and categorized as either satisfiers or dissatisfiers. A survey questionnaire structured in Likert format was used for the data-gathering process. The questions were designed in order to learn more about the current status of the products and services of the shopping centers and tourist spots in the country. The level of satisfaction the respondents have towards these services has also been obtained through the questionnaire. The responses of the participants were then processed through the computation of the weighted mean scores of each questionnaire item. Computed values were then compared to a Likert scale for interpretation. Findings were then summarized and analyzed through relevant literatures.   Conclusion             Based from the gathered findings during the research process, several significant conclusions can be drawn: <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> Majority of the respondents used in the investigation are dissatisfied with Hong Kong tourist sector, particularly its services.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> The dissatisfaction of the respondents was mainly caused by the poorness of the service quality provided by the tourist companies and travel agencies.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> Despite the efficient effort of travel and tourism companies to address the complaints relayed by the clients, negative word of mouth and the presence of several alternatives lessen the opportunity of the companies to establish high customer satisfaction and loyalty.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%; text-autospace: none"> The company management, employees and local government of the tourist sector should be more proactive in developing means of enhancing service quality and achieving better satisfaction rate from the tourists. </li>   Recommendation             As the findings of the investigation revealed that majority of the respondents are dissatisfied with the current status of the tourism sector in Hong Kong, it is then essential that the travel agencies and relevant government departments act on this issue. Below are some possible recommendations for improvement:   1. Inclusion of TQM practices to existing operations Total quality management (TQM) has long been applied by companies and industries worldwide. The strategy, which is primarily customer-driven, is focused on quality through the emphasis of commitment and involvement of each employee within a working organization so as to produce products and services of quality.  (1991) noted that in general, the effective implementation of TQM in an organization leads to a number of significant benefits. These advantages include enhanced competitiveness, improved productivity, increased market share and superior customer satisfaction. In relation to the improvement of the services offered by Hong Kong’s tourist sector, TQM training for the employees should be conducted. Generally, there are two forms of TQM training that will be useful for this purpose. These include statistical training and problem-solving training (1992). In statistical training, team members are trained how to measure overall company performance in relation to the implemented quality system project. Technical problems and other factors related to the project that affects the company’s performance can easily be identified through this training.   On the other hand, the problem-solving training enables members to learn how to apply the qualitative approach and identify non-technical issues. Specific techniques like general participative techniques, brainstorming techniques or nominal grouping techniques are some sample strategies applicable for this type of training (1992). By means of training the employees with the necessary TQM concepts, quality in the agencies’ major activities can be observed and maintained. Moreover, the training will also help boost their confidence and willingness to integrate quality in their daily work duties. In turn, the inclusion of quality in the agencies’ operations will help out in improving the tour guide and escort quality of the tourist sector.   2. Development of better processes for handling customer complaints             The results of the study emphasized that majority of customers who complained with the services in the tourist sector no longer employ the same services, resulting to reduced visitors and high customer dissatisfaction. Travel agencies and tourism company managements in Hong Kong should then develop a system that will foster better complaint management. In particular, the process on how the complaints can be relayed and addressed should be clearly explained to the customers. Contact details or staff members to call on to should be identified. Companies in the tourist sector should also help improve the speed of handling the complaints so as to reduce the likelihood of losing repeat customers. High-skilled and efficient staff should be placed to handle the complaints so as not to heighten the dissatisfaction of the clients as well as to make the process run in a smoother fashion.   3. Apply performance measurement measures             Improving the quality of services of the tourist companies should not stop from the implementation of various company programs and employee trainings. It is also essential that a system that would assess the progress of the agency with these efforts should also be utilized. According to and associates (1996), performance measurement may be defined as the process of measuring the competence and efficacy of a project, plan or organization. In the company setting, the development of performance measures can be useful in assessing whether the strategic objectives of an organization have been achieved or not. This system also allows the company to visualize the overall contribution of the employees in the achievement of its objectives ( 1998; 2000). Through this recommendation, travel agencies and tourist companies can then ensure that their efforts are aligned with their customer-oriented objectives.   The most common examples of performance measurement system include the Balance Scorecard, the Performance Pyramid and the Performance Prism (2000). These systems are applied to the organization depending on its vision and strategies (1996). The company can make use of financial indicators, non-financial indicators or a combination of both so as to measure performance. These indicators are chosen to evaluate success factors from various points of view including those of the employees, customers, financial success and business operations. View of past, present and future performances may also be measured.   In order to apply this recommendation, the tourist company must consider some factors. According to and colleagues (2000), the process of performance measurement undergoes four major phases. First, the company must choose which specific performance measure or system to apply. After which, the selected system will then be applied to the organization. Within this phase, how the system results are collected, reported and used is taken into consideration. After the design and implementation procedures, the system will now be used. Finally, the system will be redesigned in accordance to the changes of the organizations objectives. If the company fails to do this final step, the strategic purpose of applying performance measurement systems will not be achieved ( 1999).   4. Involvement of relevant government agencies should be observed             Tourism-related government agencies should support the efforts of tourism companies in achieving greater tourist satisfaction and improving its services. The support can either come in the forms of funds provision or seminar/training conduction for the employees. In addition, government agencies should also be active in promoting the tourism services and opportunities that are provided in the country so as to address the increasing number of dissatisfied clients and tourists.   Credit:ivythesis.typepad.com

Data analysis

Data Analysis The research findings gathered from the investigation showed a number of important implications. One of which ...

BIRD FLU ON HONGKONG’S TOURISM

Bird Flu on Hong Kong’s Tourism   Executive Summary               This paper aims at evaluating the perceived effects of the bird flu outbreak in Hong Kong’s Tourism.  It has been identified that the particular outbreak originates from the mainland China.  In achieving the purpose of this paper, we tend to critically analyze the actual happenings and information that would be the basis for this paper’s conclusion whether there has been really a significant effect of the bird flu outbreak in the tourism of Hong Kong.                Initially, an introduction and background of the topic has been discussed for a clearer understanding of the terms being used throughout this paper.  Along with the background, it is important to dig deeper to the previous situation of Hong Kong in its experience and knowledge about bird flu outbreak.  By studying the region’s past experiences with outbreaks (bird flu and SARS), it would make clearer in realizing the purpose of this paper.    After the analysis of data, this paper also formulated recommendations and proposals for the tourism market in Hong Kong.  Recommendations and proposals are based on the evidences gathered by the paper with a mix of practicality.   Introduction and Background               The 1997 bird flu outbreak in Hong Kong was another form of threat of influenza.  Though the outbreak has been initially associated to Hong Kong, many people in the region believe that bird flu originated from the mainland China.  The mainland China was at first “off” to the outbreak since authorities there claimed that there were no cases of bird flu over the border.  However, stories still emerged as to the mystifying deaths of thousands of poultry deaths during the same year (around 80% of chickens in Hong Kong comes from the mainland China).  Likewise, most people living in the region believed that the new kind of flu is far more deadly than its predecessors.  As the outbreak has almost come to an end, it cost a reported six lives of people.                In medical terms, bird flu is a kind of influenza that normally makes people bed-ridden for a week or two when struck by the flu.  As for the most common human influenzas, people then get better in due time but unluckily not with this kind of flu – the bird flu.  Medical personnel admitted that most influenza are familiar and poses no fatal threat to people notwithstanding the fact that influenza has always been a killer.                According to  (1998), what makes the bird flu so worrisome is that the virus responsible for the Hong Kong deaths and chicken slaughter contains a unique combination of proteins on its outer shell that renders it unrecognizable to the human immune system and therefore able to wreak its destruction before the body even a previously young and healthy body.  This is what makes it alarming notwithstanding the few fatality count.    To make it more alarming, when new viruses are introduced into the human population, like the bird flu virus, people with no previous exposure to the new flu strain have diminutive or even no immunity and thus are highly susceptible to the virus that can easily spread and reach from person to person ( 2005).  The outbreak was additionally quoted with its association with globalization as the disease is rapidly spreading like that of the global market.  Providentially, Hong Kong health authorities are taking the threat sincerely and critically.  Authorities say they have slaughtered more than 1.3 million chickens, as well as other poultry raised near chickens, and have excluded and prohibited importation of chickens from mainland China, notwithstanding the economic and political suffering such measures indicate. And our scientific radar still goes on to be adjusted to the existent likelihood that an enormous influenza pandemic is without a doubt a public health hazard of global consequence.  The universal community is now progressively, reluctantly, learning what the scientific community has been trying to tell us for years.  They said that all our medical superiority and sophistication is still comparatively unable to help in the face of the indefinable strategy of our smallest possible adversary.   Bird Flu’s Effect on Tourism               During the outbreak of the bird flu virus, not only is the people themselves were threatened and affected but also the tourism and the Hong Kong government as a whole.  During the occurrence of the bird flu in December of 1997, Hong Kong also suffered monetary crisis right before the outbreak of the bird flu.  Even though Hong Kong was the only country that stood out as open economy and had not suffered devaluation during October 1997, it suddenly experienced monetary predicament (. 2000).    Moreover, the outbreak went along with a couple of other crises just after the handover of Hong Kong.  Aside from the major problems associated with the opening of Hong Kong’s new airport in July 1998, there had also a series of misfortune at public hospitals.  In particular, the bird flu outbreak revealed deep distrust and conflict between the administration and the politicians elected to the municipal councils ( 2001).   (2001) added that it also reflected poor departmental coordination and administrative leadership in times of crises.                The most obvious and direct department that has been affected by the outbreak was Hong Kong’s tourism.  After the bird flu news has been reported widely, the tourism arrivals in Hong Kong went down to 25% year on year ( 1998).              The occurrence of the bird flu virus nonetheless brought about some changes in the Hong Kong government.  It paved the way for the development of the region’s medical preparedness.    The Current Outbreak, is it true or not?   As of the moment of the making of this paper, there hasn’t been solid evidence as to the reality of the bird flu outbreak in Hong Kong.  While other articles say that the bird flu in Hong Kong is at the peak season of its outbreak, some also claim that government is in the process of “prevention”.                Hong Kong is battered extremely by the outbreak of bird flu virus.  Even though the outbreak didn’t actually originated from the region, it is fairly evident that the situation is real and true.  Hong Kong can no longer deny the outbreak since it has been already manifested and proven.                It is admittedly true that the bird flu is naturally contagious and can be easily transferred from one person to another.  With this reality, it can be predicted and expected that the tourism inflows would be greatly affected.  However, the more depressing truth surrounding the issue is the media and the dissemination of the news.    Media has the power to expand areas of concern that oftentimes exaggerate some issues.  They are so powerful that they can be the immediate source of information for people to believe and decide especially on crucial issues.  Even though the last outbreak of bird flu didn’t really originate in the region but in the mainland China, it was still Hong Kong that bore the name associated to the deadly virus.    In one article, for example, it talks about the alarming effects of bird flu that is compared to the terrorist attack ( 2005 January 31).  The article expresses the more distressing effects of bird flu outbreak and its embarrassing insight compared more of a terrorist attack.  Some media presentations would even disregard the deeper source of the outbreak and points out to Hong Kong as the main source of the bird flu.  There’s no wonder Hong Kong experienced its tourism demise.    To those people who do not believe that Hong Kong is experiencing an outbreak of bird flu, they are focusing on the prevention campaign.  They have sited several threats and means of prevention.  The campaign concentrated on the connection between mainland China and Hong Kong.  In fact, both signed an agreement on October 2005 to increase cooperation on stopping the smuggling of uninspected food products across the border.  This is in relation to the report of Taiwan the capture of a shipment of infected birds smuggled from the Chinese mainland.                          Some certain articles that talk about the situation of Hong Kong cannot really deny the tremendous effect of bird flu outbreak.  In a single year 2004, Hong Kong Tourism posted a tourism update that is apparently on the rise.  This augmentation and development followed after the outbreak of SARS (Severe Acute Respiratory Syndrome).  It was even predicted that the following year, Hong Kong Tourism would still continue to progress.  However, due to the exposure of tourism into uncertain factors, like the outbreak of bird flu, the tourism sector finds it as a barrier that hampers the continuous and supposedly uninterrupted growth in tourism arrivals.  According to Hong Kong Tourism Board executive director , despite the encouraging development seen during the year, there still remains volatility in the market, with avian flu spreading across Asia and across the United States and Canada since February of 2004 (cited in  ).   even noted that Hong Kong’s tourism industry decline in a double-digit in terms of arrivals last year (2003) during the outbreak of SARS.    The outbreaks of SARS and bird flu are very much alike in terms of its impact to the tourism of Hong Kong.  It is a practical thinking that goes upon most visitors that “why risk visiting a country if there are risks perceived?”  There could be nothing much that the Hong Kong tourism board can do about this than centering their attention to the matter at hand.  More than most surveyed countries, Asian nations are more confident of resolving a possible bird flu pandemic.  They believe that their country are well prepared and can handle very well a probable outbreak.  This can be explained in view of the fact that Hong Kong, being the place where the avian flu was discovered in 1997, exactly knows the risks brought about by bird flu.  This makes Hong Kong a better and experienced region in handling an outbreak better than any other city in the world.  It can be apparently said that Hong Kong is considered the best and well-prepared city to deal this next outbreak of the fatal bird flu as far as experience is concern.             Notably, in the research conducted by a recent Synovate survey, respondents in the United States, Canada, Portugal and Turkey do not have the kind of faith that Asians have in their nations.  Correspondingly, less than a quarter of respondents in those countries believe that their governments are well prepared for an outbreak (cited in  2006 ).    Research Approach and Design             Like the above survey conducted by the , there would be a need of searching for deeper evidence as to the reliability of the current perceived situation on another Hong Kong bird flu outbreak.  In realizing this purpose, a research approach has been developed in order to collect data and information that would support that vagueness of the reported bird flu outbreak.              In order to come up with solid evidence, an actual gathering of data and information will be conducted.  The actual gathering of data would involve specified number of people who are residents in the Hong Kong locality.  Through questionnaires, we would be able to sum up the responses from the people that are directly concern with the matter.  Aside from the randomly-selected residents, hospitals in Hong Kong and the mainland would also be given separate questionnaires.              In addition to the survey conducted in the Hong Kong region, the same number of respondents will also be included from the mainland China.  In this way, we would be able to compare the two results.  Combining the two surveys from Hong Kong and mainland, we would be able to come up with a rundown of their responses that would straightforwardly answers the question whether Hong Kong really is experiencing another bird flu outbreak.    Data Analysis             Majority of the randomly selected respondents were of mature age and awareness of the matter.  For this reason, data and information incurred by these respondents (both residents and hospitals) are consistent and trustworthy enough to be reserved as firm proof and evidence.  The result of the questionnaire proved to be a support of the blurred truth that Hong Kong really has another bird flu outbreak.  Out of one thousand respondents (local residents), almost 90% were firm in their stand that there hasn’t any bird flu cases in their community.  Furthermore, hospitals also reported that there hasn’t been any bird flu cases brought up to their concern.  Hospital representatives uniformly consented that even though they were expecting for it, they haven’t have any cases by far not even a single patient.    Recommendations   Ø      Public awareness of the outbreak as a lesson in hygiene and cleanliness as one way of prevention campaign.  Ø      Focus on prevention Even though there are divisions of belief whether there is really an outbreak of bird flu in the region, one important thing that Hong Kong government can do is to focus on the prevention.  As great part of Hong Kong lies in the tourism industry, the problem should be acted upon immediately for the faster recovery.    A rather effective program has been adopted by the Hong Kong government.  This is the implementation of a three-tier alert system similar to the terror alert charts used in the United States.  The system has three stages: “Alert”, “Serious”, and “Emergency”.  It has been activated right away during the early part of 2005 when the number of avian flu cases mounted in Asia.  The Hong Kong government then activated the “Alert” level (cited in  2005 ).    With the activation of the “Alert” level, Hong Kong instantaneously instigated a proactive awareness campaign aimed at travelers.  It was really an effective campaign that controls the growing panic in the tourism industry.  As a means, pamphlets about health information were distributed to airline passengers both flying to or from the infected regions.    Passengers that usually hear safety instructions are rather heed on health messages and everything that concerns the influenza outbreak.  This is especially for passengers traveling on highly-conscious countries like Indonesia.  Similarly, incoming flights are also regularly checked for fever using some electronic testers.     Ø      Appropriate Medicines Antiviral drugs are of the run-outs even in the electronic shopping centers.  Tamiflu and Relenza are effective and proven antiviral drugs particularly for the purpose of curing avian flu.  These two kinds of antiviral drugs will be presumably given to citizens during the “Serious” or “Emergency” stage.    Ø      Quarantine Antiviral drugs may not be enough for the people to feel secured considering the fact that bird flu is contagious and fast spreading which could possibly run-out the medicinal supply.  In support to the medicines and antiviral drugs, quarantine also plays a great importance.  This step will expectedly lower the rate of rapid spread of the virus from one person to another and from one particular place to the other.    Ø      Recommendations on Tourism sector What the Hong Kong tourism board is currently adopting can be considered as almost the best that it can do in reacting and responding to the outbreak.  It would have a great impact on the maintenance and control of the tourism in the region much more that the government is primarily concern on the tourism department where a large part of Hong Kong’s revenues comes from.      Questionnaire   Bird Flu Survey             The researcher is conducting a study on the outbreak of bird flu in Hong Kong region and its effect on the region’s tourism.  This survey will be the basis and proof whether an outbreak of bird flu exists in Hong Kong that initially comes from mainland China.  This study would hopefully regain tourists’ confidence in traveling to Hong Kong should the study invalidates the claims of widely reported bird flu outbreak in the region.              Two separate questionnaires are formed for two kinds of respondents: (1) Local Residents, and (2) Local Hospitals.   Residents’ Questionnaire   Direction:  Please fill up all the necessary information stated.  Try not to leave any item unanswered. <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Age ______</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Sex:   Male ( )            Female ( )</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Civil Status </li> Single ( )        Married ( )      Separated ( ) <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Educational Attainment</li> Elementary ( )           High School ( )         College ( )      Graduate ( ) <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Occupation ____________</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Which part of Hong Kong __________</li>   Bird Flu Awareness <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Where did you hear about the possible bird flu outbreak? Encircle the letter of your answer. <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Magazines, newspapers, book and other print media</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Television, movie, and other broadcast media</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Billboards and posters</li> </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> What are your personal views and experiences on the possible outbreak of bird flu in your region? <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Yes, it is true</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> No, it just mere exaggeration</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Not sure and in doubt</li> </li>   Hospitals’ Questionnaire   Directions:  Please fill up all the necessary information needed.  Try not to leave any items unanswered.  Hospital’s Information <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Name of the Hospital ____________</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Length of Service ____________</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Name of Hospital’s Representative _______________</li>   Bird Flu Awareness <li class="MsoNormal" style="text-align: justify; line-height: 200%"> How the hospital reacts to the possible outbreak of bird flu in the locality?</li> ( )  Still on prevention since the hospital has no record of any cases of bird flu infection ( )  Requesting additional reserved medicine for the treatment of a bird flu (possible) victim ( )  Providing public information in every development of the possible outbreak <li class="MsoNormal" style="text-align: justify; line-height: 200%">  Within the last three (3) months, are there any recorded cases of diseases relevant and showing signs of bird flu effects?</li> ( )  Yes, there are ( )  No, there isn’t Limitations             The findings of this study are limited to the number of respondents with respect to their location.  In the aim of this research to formulate solid and reliable findings, respondents are carefully chosen even though they are randomly selected.  The outcomes of this research should not be taken solely as the truth answering the question (whether Hong Kong really has bird flu outbreak) but merely and purely a representation and illustration from a limited source.      References Credit:ivythesis.typepad.com

BIRD FLU ON HONGKONG’S TOURISM

Bird Flu on Hong Kong’s Tourism Executive Summary This paper aims at evaluating the perceived effects of the bird flu ...

HONGKONG DISNEYLAND

诚 信 声 明   我声明，所呈交的毕业论文是本人在老师指导下进行的研究工作及取得的研究成果。据我查证，除了文中特别加以标注和致谢的地方外，论文中不包含其他人已经发表或撰写过的研究成果，也不包含为获得其他教育机构的学位或证书而使用过的材料。我承诺，论文中的所有内容均真实、可信。         毕业论文作者签名：              签名日期：  年  月  日   香港廸士尼开业带来的预期利益及存在的问题 [摘要]这篇论文与香港第一个开业的主题乐园有关。廸士尼乐园, 一个世界闻名的主题乐园, 选择在香港建立她的第五个乐园王国。这件盛事对香港所有的市民应是既快乐也期待的。 可是, 由于受到环境变化和难以预料的因素影响, 香港廸士尼在开业后有不少问题产生。在这种情况下, 最迫切完成的是寻求可行的解决辨法。因此, 我们应该根据禾路廸士尼公司及香港政府就香港廸士尼开业前预期所产生的好处与实际运作后产生的问题作比较, 从而找出可行及适当的解决方法。   [关键词]香港廸士尼乐园; 禾路廸士尼公司; 预期利益; 存在问题；        解决办法                                 Expected Benefits from the Opening of Hong Kong Disneyland and the Existing Problems   [Abstract]This thesis is about the first overseas theme park opened in Hong Kong. Disneyland, a world-class and famous resort theme park, chose to build in Hong Kong. It should be a grand occasion and welcomed by every Hong Kong citizen. Before the opening of Hong Kong Disneyland, the Walt Disney Company and the Hong Kong Government had a very high expectation on this project. So they predicted that Disneyland can bring lots of benefits such as large amount of profit, development of the tourism sector, and etc. However, the variable environment and unexpected factors caused lots of problems after the opening of Hong Kong Disneyland. Under these circumstances, the urgent thing needs to do is to find out the solution to the problems. So in this case, we should analyze the expectation by Walt Disney Company with Hong Kong Government and the outcome after the operation of Hong Kong Disneyland, compare these two situations and find out possible and suitable solutions.   Key Words: Hong Kong Disneyland; Walt Disney Company; expected benefits; existing problems; tentative solutions                                     Contents Chapter 1 A brief introduction of Hong Kong Disneyland.. 1 1.1 The famous theme park in the world.. 1 1.2 The Reasons for building Hong Kong Disneyland.. 1 1.2.1 Situation faced by Walt Disney.. 1 1.2.2 Situation faced by Hong Kong Government. 2   CHapter 2 The Benefits. 4 2.1 To Walt Disney Company.. 4 2.1.1 PROFITS. 4 2.1.2 LOW CONSTRUCTION COST.. 5 2.1.3 POTENTIAL OF INCREASING TOURISTS (ATTENDANCE) 6 2.1.4 A STEPPING STONE TO ENTER THE CHINESE MARKET.. 8 2.2 To Hong Kong Government. 8 2.2.1 STIMULATE HONG KONG ECONOMY.. 8 2.2.2 REDUCE UNEMPLOYMENT RATE.. 10 2.2.3 STIMULATE TOURISM SECTOR.. 11 2.2.4 INTANGIBLE BENEFITS. 12   CHAPTER 3 EXISTING PROBLEMS TO HK DISNEYLAND…..….…………………………………………………14 3.1 Miscalculation.. 14 3.2 Limited attracting ability and developing area.. 14 3.3 External competitor. 15 3.3.1 THE HOMETOWN COMPETITOR.. 15 3.3.2 THE COMPETITOR IN CHINA.. 15 3.4 Dissatisfied Hong Kong Citizens. 16 3.4.1 THE SOCIAL ORGANIZATION.. 16 3.4.2 ABUSING JURISDICTION GETS THE NOTICE OF PUBLIC.. 16   CHAPTER 4 eXISTING pROBLEMS TO Hong Kong Government.. 17 4.1 TO HK GOVERNMENT 4.1.1 Possibility of profit earned.. 17 4.1.2 The inefficiency of job created.. 17 4.1.3 Environment. 18 4.2 TO THE ENVIRONMENT 4.2.1 REDUCING THE ATTRACTION OF HONG KONG.. 18 4.2.2 AIR POLLUTION.. 18 4.2.3 DEATH TO MARINE LIFE.. 19   CHAPTER 5 Tentative Solutions. 20 5.1 SOLUTION FROM Walt Disney Company.. 20 5.1.1 SOLUTION TO MISCALCULATION OF ATTENDANCE.. 20 5.1.2 SOLUTION TO ATTRACT MORE VISITORS. 20 5.1.3 SOLUTION TO INCREASE COMPETITIVENESS. 20 5.1.4 SOLUTION TO RDDUCE REJECTION VOICE.. 21 5.2 SOLUTION FROM Hong Kong Government. 21 5.3 Solution to reduce the pollutantS. 22   Conclusion.. 23 Acknowledgements. 24 Bibliography.. 25       Chapter 1 A Brief Introduction of Hong Kong Disneyland 1.1 The famous theme park in the world Hong Kong Disneyland Resort is the fifth theme park of Walt Disney Company. After the first overseas theme park opened in Tokyo, Japan, this is the third theme park opened by Walt Disney Company outside America. Although Tokyo Disneyland is the first overseas theme park, Walt Disney Company takes no ownership of the theme park in order to limit the risks. As a result, Tokyo Disneyland becomes the most profitable theme park when compared with the other parks. So Walt Disney Company decided to become a partner in the investment when building Disneyland Paris. However, what had been expected by Walt Disneyland did not become true. It not only bears a heavy debt, but also needs to face a lot of problems. So this time, when building Hong Kong Disneyland, Walt Disneyland used a very strict and serious manner to make a good planning. Hong Kong Disneyland is a joint venture operated by Hong Kong International Theme Parks Limited (HKITP), which is jointly owned by Hong Kong Government and Walt Disney Company. In early 1990s, the top management of Walt Disney Company began to visit lots of the Asian countries in order to find a suitable country to build the fifth Disney theme park in the world. Hong Kong, which is one of the most choices, was chosen by Walt Disney at last because of her best infrastructure and the high potential of mainland tourists. In the spring of 1999, Hong Kong Government and Walt Disney began to negotiate about Hong Kong Disneyland Plan. On 1, November, 1999, Walt Disney announced to the world that they had entered in an agreement and the construction work would begin soon. Hong Kong Disneyland will be divided into four major parts in Phase 1, which are the Main Street U.S.A, the Fantasyland, the Tomorrowland and the Adventureland. Also, there will be two hotels adjacent to the theme park. On 12, September, 2005, the opening ceremony of the theme park took place in the morning and the Hong Kong Disneyland opened to the pubic in the same afternoon. 1.2 The reasons for building Hong Kong Disneyland 1.2.1 Situation faced by Walt Disney Walt Disneyland Company owning 100% of Disney Enterprises Inc. is a worldwide entertainment company with operations in five business segments: media networks, studio entertainment, theme parks and resorts, consumer products and Internet and direct marking. In theory, provided with its famous brand name in the world and the second largest place in the media industry, they should able to earn lots of money. However, in fact, Walt Disney Company was suffering a profit slump at the end of the 20th century. All of the profits in the field such as the net income of the company, its studio division, the consumer product division, income, Disney’s catalogue and Internet operation were reported an income fall. In order to solve the problem, the most useful method is to find a growth driver. At this time, the theme park and resorts division are able to act at this role, the income from this sector increased by 12% to US.4 billion, while revenue increased US to US.1 billion (,  ,  , 2000a:). On the other hand, as the development in China becomes larger and faster, the potential of development in the Chinese market is very big, provided with the huge population density, Walt Disneyland believes that they are able to gain the market value as Mc Donald, which is one of the successful cases (, , , 2000b:). Also, there were many investors flocking to the mainland China, in order to gain a toehold in this enormous market, constructing the fifth theme park is also a wise decision. Although there were many different choices provided to Walt Disney Company, they finally chose Hong Kong for building their fifth Disney theme park because of her best infrastructure and the growing potential of tourists from mainland China.   1.2.2 Situation faced by Hong Kong Government Firstly, after the financial storm in 1997, the economy development in Hong Kong slowed down during these few years. It was mainly because the economy of Hong Kong overly relies on the property sector. So when the property market took a nosedive during the financial year of 1998-1999 after the financial storm, a budget deficit of HK billion was resulted. HK Government needed to find out a method in order to turn over the plight. Secondly, the unemployment rate has stayed in a high position after the financial storm. Before the crisis, the unemployment rate in Hong Kong remained relatively low, not exceeding three percent. However, the unemployment rate surged to six percent within two years after 1997. As a result, many Hong Kong citizens have had a sense of job insecurity. This resulted in a much more caution about spending money which created a bad effect on Hong Kong economy. Also, the tourism sector in Hong Kong also receded seriously since 1997. Before the handover to China, the tourism sector in Hong Kong was very prosperous, nearly 12 million people visiting Hong Kong aimed to have a final look at the British colony. This brought in a foreign exchange of HK4 billion in 1996. However, after Hong Kong’s return to China, the number of total visitors began to decrease, and the foreign exchange dropped to HK billion in mid-1997 from HK4 billion in 1996. In order to save the economy of Hong Kong, the Government believed that the only way was to develop the tourism industry. According to the situation faced by Walt Disney Company and Hong Kong Government, they both believed that Hong Kong Disneyland could generate certain benefits and advantages which were able to help them overcome the crisis faced by them. So they decided to set a joint venture company called Hong Kong International Theme Parks Limited (HKITP) and cooperated with each other.                                                                       Chapter 2The Benefits from the Opening of Hong Kong Disneyland 2.1           To Walt Disneyland Setting up the fifth theme park by Walt Disney Company was a long planning and process. But finally, the company decided to implement this project because of the benefits generated.   2.1.1        Profits One of the major aims of Walt Disneyland Company is to find a growth driver to save the risks in her business, so the amount of net revenue that could be generated is the most important factor. After negotiating with Hong Kong Government, the two sides finally agreed to the following terms of the revenue given to Walt Disney Company:   Fig. 2-1 the Revenue of Walt Disney Company Royalties 5% on gross revenues for merchandise, food and beverage, and hotels 10% on gross revenues for admission and participants who invested money toward the construction of specific rides Base management fee 2% o gross revenues Variable management fee 2-8% of EBITDA ( (A): , 2000: 6)   Such terms of revenue arrangement promised certain amount of income to Walt Disney Company. Also, forming a joint venture with Hong Kong Government could be entitled to dividends pro rata from operating profits of Disneyland when business results are permitted.   2.1.2        Low construction Building a theme park needs a large amount of investment because of the high construction cost, so it is another important factor affecting the net profit of Walt Disneyland Company. But in Disneyland project, Walt Disney Company bore the least amount of cost when building the theme park. Nearly 90% of the costs were borne by Hong Kong Government. So it is very profitable to build Disneyland with such a low cost. Constructing the theme park included land reclamation cost, superstructure and facilities erection cost, and the recurrent operating cost of the theme park. The major costs of building Hong Kong Disneyland is the land reclamation, infrastructure and the land premium cost. The land reclamation and infrastructure cost would amount to HK.6 billion, but the cost would be borne by Hong Kong Government because much of the infrastructure would  form part of the Government’s capital works program to prepare Northeast Lantau for tourism and recreation development even if HK Disneyland were not built. On the field of the land premium, the Company believed that the park would not be profitable to pay for the HK billion for using the land, so they bargained with HK Government for free land use. Although Walt Disney Company was required to pay for a land premium at first, the Government finally decided not to charge any cost for the land premium. Compared with the investment for setting up Paris Disneyland, the cost of constructing Hong Kong Disneyland is relatively low. The following table shows out the details of the cost distribution borne by Hong Kong Government. Fig. 2-2 the Construction Costs Borne by Hong Kong Government (, “”, NOV. 1999) *A: Land Formation B: Construction of associated infrastructure & government, institution & community facilities # a: engineering cost b: public transport interchanges c: road works d: public transport interchanges e: public piers f: landscaping berms g: water recreation centre h: sewerage network i: storm water drainage system j: fresh and salt water supply systems k: provision of Government, institution and community facilities l: contingencies   2.1.3        Potential of increasing tourists (attendance) After the return to China in 1997, the tourists from mainland China began to increase. In 1998, the total number of visitors from mainland was 2.6 million and accounted for 27% of the total number of visitor arrival. In 1999, these mainland visitors contributed to 60% of the total visitor of Hong Kong major theme park—the Ocean Park. In 2000, the visitors from Mainland China increased to 3.7 million. Until 2006, after the opening of Hong Kong Disneyland at the final quarter of 2005, the visitors from Mainland China increased to 13.6 million. According to this trend, there is a great potential of growing visitors from the mainland to Hong Kong, especially those visitors from the Pearl River Delta region who have the highest average earnings in the mainland cities. Such data promised a steady and certain amount of visitors to Hong Kong Disneyland, also promised the revenue to Walt Disney Company. Here is the table of Visitor arrivals from Mainland China in the recent year and the total number of visitors to Hong Kong. Fig 2-3 the Number of Visitors to Hong Kong (Source: ) Before the opening of Hong Kong Disneyland, Walt Disney Company had already made estimation about the future attendees between 2005 and 2024. Here is the graph of the estimated attendees of HK Disneyland between the years of 2005-2024. Fig. 2-4 the Projection of attendees at Hong Kong Disneyland   ((A): , 2000, projection prepared by the case writer)   2.1.4        A stepping stone to enter the Chinese market As mentioned before, one of the aims of Walt Disney Company is to gain a toehold in China market, opening the fifth Disney theme park in Hong Kong should be the most suitable decision. It is because since the late 1970s, Hong Kong has already recognized the opportunities by opening up of the Mainland economy. During these few decades, Hong Kong strived for being the middleman between the Mainland and the rest of the world, and channeling trade and the huge market value in China. So investing in Hong Kong can give a stepping stone for Walt Disney Company to entering the huge Chinese market. 2.2           Benefits to Hong Kong Government 2.2.1        Stimulate Hong Kong economy After the financial storm in 1997, the economy of Hong Kong stayed in the period of recession. As mentioned before, Hong Kong was over reliant on the property sector, so when the property market took a nosedive during the financial year of 1998-1999, a budget deficit of HK billion was resulted. In order to turn over the plight, Hong Kong Government believed that cooperation with the foreign company to open a new tourist spot should be a useful method. According to the statistics provided by Hong Kong Tourism Board, the 2006 spending figures showcase the increasing contribution of tourism to Hong Kong’s economy, with all market regions recording increase in total and per capita spending. The average per capita spending of overnight visitors, those staying one night or more, grew by 2.9% to HK99, while that of the same-day in-town visitors increased significantly by 25.3% from HK0 in 2005 to HK 15 in 2006. A key factor leading to the growth of same-day, in-town visitor spending is higher than average spending by consumption visitors from Mainland China. Continued with this development trend, the Government estimated that the GDP of Hong Kong will keep increasing because there will be more and more tourists attracted by the opening of Hong Kong Disneyland and more and more revenue will be brought to the hotel, retail, restaurant, local tour, entertainment and other tourism-related sectors by the increasing spending as a result. The graph under is the recent development of GDP in Hong Kong between the year 2000 and 2005. Fig. 2-5 the GDP of Hong Kong Economy in Recent Years (, 2005:.466) The government hoped that with the increasing GDP of Hong Kong in the past few years, plus the stimulation of Hong Kong Disneyland, the continuing increase of GDP could help to bring our economy out of the valley of recession and recovery and become as prosperous as before. The following tables are the prediction of profit and cash flow generated from the HK Disneyland in next 20 years. These following graphs show the profit and cash flow created from HK Disneyland in the next 20 years are on the rise. This prediction is corresponding to the increasing GDP prediction by the Government. Fig. 2-6 the Projection for Hong Kong Disneyland Fig. 2-7 the Projection of Cash Flow for Hong Kong Disneyland (b:18-19)   2.2.2        Increase unemployment rate The unemployment rate also stayed very high during the period of recession. Before the crisis, the unemployment rate in Hong Kong remained relatively low, not exceeding three percent. However, the unemployment rate surged to six percent within two years after 1997. As a result, many Hong Kong citizens have had a sense of job insecurity. This resulted in a much more caution about spending money which created a bad effect on Hong Kong economy. Fig. 2-8 the Unemployment Rate of Hong Kong Job Market  Source:  , March 2000 and  2005. (: 20) In Disneyland project, there will be 18, 000 direct and indirect job opportunities created within these 20 years. The government hopes that this can help to relive the tension of the job market. Also, during the construction period, there will be more than 4,000 construction workers needed so that the high unemployment rate can be leased for a while immediately.   2.2.3        Stimulate tourism sector Before the handover to China, the tourism sector in Hong Kong was very prosperous, nearly 12 million people visiting Hong Kong aimed to have a final look at the British colony. This brought in a foreign exchange of HK4 billion in 1996. However, after Hong Kong’s return to China, the number of total visitors began to decrease, and the foreign exchange dropped to HK billion in mid-1997 from HK4 billion in 1996. In order to save the tourism sector of Hong Kong, the Government believed that the only way was to draw some attractive tourist spot. Fig 2-9 the Total Number of Visitors from 1990-1998 to Hong Kong   ( : , November 1999) As Mr. , the Tourism Commissioner, said “This (Disneyland) project tells the world that we are alive and kicking”[①]. The project of Disneyland can help to reinvigorate the tired-looking of tourism sector by giving a positive image to Hong Kong. This was also a good change for Hong Kong to turnaround from the economic slowdown environment and diversified the phenomenon of over-reliance on the property sector.   2.2.4        Intangible benefits Finally, there are some intangible benefits to be generated too. The first one is the symbolic message sending to the world that Walt Disney chose Hong Kong as their fifth theme park resort. The international image of Hong Kong will be enhanced and the image of a vibrant, cosmopolitan and key tourist destination in Asia and the world will be set up. Such message can attract more people to come to visit and the investment from the world may be able to increase too. Secondly, as Walt Disney was renowned for its creativity, operational excellence and ability to deliver a high level of satisfaction to customers, it is able to set a new standard for the service industry in Hong Kong and stimulated the other service sectors to reach the world service standard. Thirdly, Hong Kong can learn about some high-tech technology as the operation of the theme park would showcase the best of cutting-edge technology in its attractions and shows. Then, as Disneyland resort announced providing family entertainment for their customers, Hong Kong families can have more choice when they are planning their family activities, so that the life quality in Hong Kong may be improved. Also, Walt Disney Company always emphasizes the training of their employees. There is a “Disney University” for its employees with a wide variety of career-development, so the workforce in Hong Kong can benefited from the resource given by the Company. Finally, as Walt Disney is an environmental friendly company, their experience about operating a company more environmentally can set a good standard for Hong Kong companies.                                                                       Chapter3 Existing Problems to HK Disneyland However, although there are many benefits brought to Walt Disney Company and Hong Kong Government, the operation of Hong Kong Disneyland in the first year also created some problems to the company. 3.1. Miscalculation At the very beginning of the project, Walt Disney Company expected that 5.6 million visitors would come to the theme park in the first year. This expectation was made in 2002 when China only allowed its citizens to visit Hong Kong as part of tour groups. However, after the Individual Visit Scheme began in July, 2003, and extended to 40 cities in 2006, the number of attendees to HK Disneyland on theory should be more than expected. But the annual report by the HKITP stated that the total visitors to HK Disneyland cannot meet the first-year target of 5.6 million visitors. The attendance before the park’s anniversary had only exceeded 5 million visitors. Also, HK Disneyland planned that the maximum capacity of the park was 30,000 people each day. But, on the fund raising day of The Community Chest, confusion existed, and even the theme park only received 29,000 visitors. The Government had requested the theme park to reduce the park’s planning maximum capacity, but Walt Disney Company insisted that they could handle the operation smoothly by extending the office hour. However, in the first Lunar Year Holiday, the first and the second of January in 2006, large confusion happened. Thousands of Chinese tourists with ticket could not go into to the park because the entrance gate was fully occupied. The angry guests who were not willing to leave began to climb over the gate and argue with the staff and securities. Chaos happened in the whole day, the management of the theme park sometimes reopened or refunded to the tourists, but sometimes allowed their entrance. The tourists were very puzzled and confused. The park is notorious for its poor management. In this year, the entrance rate of HK Disneyland in Lunar New Year only reached 70%. Compared to the last year, many visitors were not willing to visit HK Disneyland, and some of them chose to visit the Ocean Park. 3.2.        Limited attracting ability and developing area Compared with the other Disneyland theme parks in the world, HK Disneyland only has 22 scenic spots, where there are 44 spots in Disneyland Paris, 45 spots in Tokyo and Florida, and 65 spots in California. The total area of HK Disneyland Phase 1 is only 126hectares. There are only four themed lands to be found inside the park, which are the Main U.S.A., Adventureland, Fantasyland and Tomorrowland. The tourists who came to HK Disneyland can visit the whole park at once. So, the attraction for the tourists is relatively lower than any other Disneyland in the world. Unit now Disneyland in America is still continuing to expand its size in order to maintain 10million visitors every year. But HK Disneyland cannot imitate this method, because Hong Kong is too small to have enough land. Although the sea reclamation method can be used, the sea area inside Hong Kong is disappearing rapidly. Also, as the smallest Disneyland in the world, the overcrowding problem in HK Disneyland is another major reason which can reduce the attraction to tourists. On the fund raising day of The Community Chest on 4, September, 2005, the poor management of controlling entrance rate caused a full-occupied park. Visitors needed to wait nearly 3 hours for each game, the souvenir shops were full of customers, and the restaurants were so full that some tourists needed to use the rubbish bin as their lunch table. 3.3.         External competitor 3.3.1    The hometown competitor The major competitor of HK Disneyland is the homegrown theme park- the Ocean Park. Ocean Park has been opened for more then 30 years. It aims at being developed into a world-class attraction scenic spot which allows people to connect with the nature and recognize its animal husbandry, research and relationship with the community. Last year, Ocean Park was chosen as the seventh most popular theme park in the world by the Forbes magazine. Also, the park recorded a bump of visitors in last year too. After the declaration of building a Hong Kong Disneyland at the Penny Bay, the park declared to redevelop itself. She had planned to use HK.5 billion to rebuild the park, in order to enhance the status of HK as a premier tourist destination and generate significant economic benefits. “We are grateful to the Government for its decision to financially support our redevelopment master plan which is a booster for the Park’s development. This support signifies the Government’s endorsement of Ocean Park as not only playing a key role in public education and conservation but also being a catalyst for increasing tourism, stimulating economic growth and facilitating the urban re-generation of the Southern District,” said Dr. , Chairman, Ocean Park Corporation. The redevelopment of the park is expected to bring a net quantifiable economic benefit of from HK to HK billion and create 11,300 to 12,800 jobs during 2021-2022.   3.3.2    The competitor in China The second competitor is Shanghai Disneyland. Shanghai Disneyland is another risk threatening HK Disneyland in the next 10 years. According to , the new administration president of Walt Disney Company, the second Disney Theme Park inside China will be set up in the future. The total area of this new theme park will reach 500 hectare, nearly 4 times of HK Disneyland Phase 1. 3.4           Dissatisfied Hong Kong citizens 3.4.1 The social organization Before the opening of HK Disneyland, there was a civil organization, the Disney Hunter, set up by different Hong Kong university students. They join together by person or in group. They aim to raise the concern of the society about the problems caused by Walt Disneyland. Such problems include the working conditions in the developing countries and the staff inside the park; the impact on our environment; social discrimination, etc. Before the day of the opening ceremony, Disney Hunter had organized a night meeting outside HK Disneyland aiming to demonstrate against the park. During the meeting, some demonstrators had crossed over the limit set by Disneyland’s security. As a result, the security used some “water hose” to push back the demonstrators and trample on their banner. Both sides involved in conflict, the police beside them using nonintervention method. Finally, the demonstrators leave peacefully, but they were still planning to organize another action to reflect their opinion against Disney Company. (, 2005:; , 2005:)   3.4.2 Abusing jurisdiction gets the notice of public Besides, the park was accused by critics on 30, August, that the park management abusing its jurisdiction by asking the health officers to remove identifying park of the uniform before going into their restaurants. (, 2006: ) After that, the Food and Environmental Hygiene Department (FEHD) reiterated in Press Release that the department staffs were empowered under the Public Health and Municipal Services Ordinance to inspect food premises and take enforcement actions for and breach of the law. “We attach great importance to the incident and find the request unacceptable. We have contacted the management of Hong Kong Disneyland and advised them the statutory role of our law enforcement officers.”     “The department will in all circumstances exercise its powers as necessary for the protection of public health,” the spokesman said (Net. 1). The spokesperson of HK Disneyland immediately made apology to Hong Kong citizens and stated that there should be some misunderstanding between each another. However, the explanation was not quite accepted by HK citizens, the bad effect caused by this incident had not released.   Chapter4 Existing Problems to Hong   Kong Government and the Environment The operation of Hong Kong Disneyland in the first year even created some problems to government and the environment of our society. 4.1           To the government 4.1.1Possibility of profit earned In Disneyland project, Hong Kong Government has invested 2.3billions which accounts for 90% of the total investment. Based on the base tourists increasing rate, the market penetration rate, the government assumed that the attendees of HK Disneyland, the profit and cash flow in the next 20 years will continue to increase. But, in fact, the entrance rate of HK Disneyland cannot meet the first target of 5.6 million in the first year after the opening. Does this mean that the expectation of Hong Kong Government was too optimistic or does this mean that the government made a wrong decision? According to the Government prediction, in the next 40 years, HK Disneyland will bring 148 billion net profits to HK. But, according to the statistics of Hong Kong Tourism Board, the average expenditure by the tourists decreased from HK, 502 in 2003 to HK, 478 in 2004. On the other hand, the number of visitors in 2006 cannot reach the target 2.7million with only 2.5million. For this reason, Hong Kong Tourism Board has already reduced the number of assumed tourists coming to Hong Kong from 8.1% to 4.6% in 2007. Many critics pointed out that if the situation of annual visitors and average tourist expenditure continue to reduce, is the prediction by the Government able to achieve? Or is it too good to come true? On the other hand, the government has invested over HK.3 billion in Disneyland project, but the management authority belongs to Walt Disney Company, not the HK Government. In fact, except Tokyo Disneyland which is operated by Japanese themselves is making profit each year, the rest in the world continue to make a deficit. To add, last year the result of the entrance ticket and the demand for touring bus are not the same as anticipated. This statistics made many people worried if HK Disneyland was able to earn money under the management of Walt Disney Company. Is Hong Kong Government’s prediction about the next 40 years able to succeed? Such questions directly affect the development of HK economy.   4.1.2The inefficiency of job created According to the Government’s expectation, there will be 18, 000 direct and indirect job opportunities created from HK Disneyland. Also there will be 36, 000 job positions created within the next 20 years. Apparently, HK Disneyland is beneficial to Hong Kong employment situation, but in fact, the jobs created by HK Disneyland are usually some low-technique and low-paid jobs, which are not beneficial to raising the technology and production ability of Hong Kong. Also, the staff required by HK Disneyland must be able to speak Cantonese, English and Mandarin. For the middle-aged group and low education level group it is not helpful. Then, some investigation reflected that the tourism industry will reduce the whole salary standard in Hong Kong job market. In Osceola, Florida, the actual salary standard between 1979 and 1997 continually slide after developing their tourism industry, only 12% salary was above the standard. On the other hand, during the publicity, Disneyland stated that the minimum wages to each staff must be above HK,000 per month, but some job positions only have HK,050 per month such as cleaning and restaurant staff. Also, the staff of Disneyland needs to bear the transportation cost and time cost, but they do not have the allowance of double-paid and others except some medical welfare. 4.2           To the environment 4.2.1    Reducing the attraction of Hong Kong The Friends of the Earth pointed out another negative impact on Hong Kong is the investment from overseas and the attraction for professional to Hong Kong will be decreased if the polluting level continues to increase. “Recently, a survey by the American Chamber of Commerce in Hong Kong …… 79% feel environmental issues will make Hong Kong less attractive to foreign companies (1). The study surveyed 140 top executives from member companies of the chamber. ” ((August 2006)) The loss caused by this negative impact is difficult to be calculated. It not only affects the economy environment in Hong Kong but also and affects the health of our next generation. Both are contradictory to the original aim of the government.   4.2.2    Air pollution Firework show is the star turn in every Disneyland theme park. Everyday, as the closing time approaches, Disneyland will operate a firework show to signify the close of the park. The show is very popular. Many tourists will wait inside the park until the end in order to enjoy the show. In Disney resort in Anaheim, they are using a new air launch technology in order to reduce ground-level smoke. However, this technique isn’t used by Disney Company inside Hong Kong because the released pollutants caused by gunpowder-send technique can meet the local environmental requirements. But some critics do not agree with the government. One of the legislators of Islands District Council, , had said that “Why the Disney Company used this technique in American, but not in Hong Kong?” in the Island District Council Meeting. Also, the environmental organization, Friends of the Earth, stated that the pollutants caused by the firework inside Disneyland could increase the level of air pollution or the nearby residential area, the impact of the increasing pollutants can cause a health threat to the residents, especially for sensitive groups.   4.2.3    Death to marine life The Penny Bay reclamation project has caused lots of death to the marine life, especially to the Sousa Chinensis. According to the , one of Hong Kong’s leading environmental charitable organizations, the discovery number of Sousa Chinensis has continued to decrease in the last 11 years, dramatically decreased by 40%. It is because the reclamation project in the Penny Bay has caused lots of pollutants in the sea water. In March of 2005, the suspension particle in sea water recorded 30% exceeding the standard. In the final analysis, the pollution to our natural environment is mainly because of the HK Government. In order to finish the construction of HK Disneyland punctually, the Government approved the reclamation project without the permission by the Environmental Department. After that, the Civil Engineering and Development Department “illegally” dig away the sand at the sea bed. This action eventually destroyed the habitat of Tabular Corals and also caused the death of thousand of marine life. Some fishermen in Lantau Island pointed out that the reclamation project had caused the death of more than 2,000 burdens fish.                                     Chapter 5 Tentative Solutions 5.1           Solutions from Walt Disney Company 5.1.1    Solution to miscalculation of attendance In order to control the number of visitors on some specific day, the most effective way is to control the number of tickets on the specific day. After the Lunar New Year in 2006, Hong Kong Disneyland learnt to use this method to control the number of visitors. However, the shadow still cannot release the bad memory of the visitors. 5.1.2    Solution to attract more visitors As mentioned before, the expansion of size to increase attraction is not possible, and the only way is to create new things to increase her attraction in order to maintain the freshness to tourists. The recent program promoted by Disneyland is called “903 Disney Attack”. The Disneyland teamed up the hottest young adult radio channel CR2 to host this party. This party will transform the futuristic Tomorrowland into one of a kind of late-night playground featuring a giant dance floor and party zone, and hosted by CR2’s top DJs including Sammy and the I Love You Boyz. The Party will be held after the show of firework and ended until the midnight. 5.1.3    Solution to increase competitiveness Faced with two large competitors, HK Disneyland must find out some methods to resist the threat. According to the theory of strategic management, the external factors, such as competitor, can have a great impact on the firm performance. It is because such factors can affect both the industry average performance and the relative firm performance within the industry. To solve the problem caused by external factors, we should use strategic method to increase the company’s competitive advantage and reduce the threat from others. One of the methods is changing customer knowledge. Changing customer knowledge can help to develop the loyalty of the customers to particular company, because the knowledge about the company can help the customers to appreciate the importance and the quality of the products or services produced by the company, and developed their brand loyalty as a result. According to , Hong Kong Disneyland‘s head of Sales and Travel Trade Marketing, the customers is not familiar with Disneyland theme park, especially the customers from Mainland China. In order to improve the familiarity of customers,  suggested that they should launch a 10 to 15 minutes show to every customer. Also, strengthening the sales and marketing initiatives is another useful method. And the theme park can launch some new promotion programs to raise the attention of the customers such as Halloween Day, Christmas Day and Lunar New Year, etc. Increasing the knowledge of Disneyland in tourist can increase the competitive advantage of the theme park. On the other hand, another method is finding out the key success factor of Disneyland and striving to develop its strength.   5.1.4    Solution to reduce rejection voice As Hong Kong citizens are one of the major customers to HK Disneyland, the Company should deal with the problem carefully. From the last decade of 20th century, communicating with the public was one of the major strategies of many organizations. So, making a good relationship with the public should be the most useful and effective tool to reduce the bad effect by the oppositional force. Changing the mind of “Disney Hunter” is quite hard, so the only way to do is to persuade “the silent majority” to believe that the benefits of HK Disneyland are larger than the disadvantages. It is because “the silent majority” always holds the key to success and they are usually the most readily influenced by the organization’s communicators. The most common example is the political campaigns. On the other hand, when facing the demonstration again, the park should not solve this by force. It is because Hong Kong is a city suggesting the freedom of speech, force is not allowed and permitted by every Hong Kong citizen, and such action will cause lots of dispute and debate. It is very easy to create a bad image to HK Disneyland. 5.2           Solution from Hong Kong Government In fact, the problem faced by Hong Kong Government is Hong Kong citizen lacks confidence in their Government. One of the methods is to educate Hong Kong citizens that the development of this project is in a good situation, such as telling the citizen that the expected data of visitor cannot reach the target number, but it will not affect the profit and benefits from the theme park. Also, the Government should make some investigation and survey to prove that a large investment especially involved with an international cooperation must need a period of time to make revenue, so the public should have patience and should not make judgments in such a short time. On the field of job market, the Government has continued to provide many training programs to different people. The Labor Department has introduced a package of market oriented employment initiatives method such as The Employment Programme for the Middle-Aged, Skills Upgrading Scheme for workers with secondary, or below secondary education. Also, the government tried to improve the job market by creating a number of temporary jobs from 2000 year. This scheme can help the unemployed enter or re-enter the labor market and meet operational needs. In 2005, 11, 600 temporary jobs were extended. Many to those jobs were suitable for workers with a lower education and skills level. So, the inadequacy of the job provided by Disneyland can be supplemented by other job schemes. 5.3           Solution to reduce the pollutants One of the most efficient ways to reduce the pollutants and improve the air quality at Lantau Island is to install the new fireworks launch system in the Disneyland Park, because one of the reasons to accelerate the pollution at Penny Bay is the pollutants emitted by the firework. Reducing the pollutants is able to reduce the pollution level at Lantau Island. Also, implementing a continuous monitoring on the air quality at Lantau Island can be helpful to protect the environment. The data collected by the monitor station can be used for doing environmental research and testing possible solution. Conclusion On current situation, HK Disneyland seems to bring many problems. Such problems are very hard and tough to Hong Kong. But, in the final analysis, the conclusion of HK Disneyland’s future cannot be made in such a short time. “It was too early to deliver a verdict on HK Disneyland”—John a professor of hotel and tourism management at HK Polytechnic University (,1999:). From the opening ceremony until now, the Disneyland has operated not more than 2 years. It is too unfair to judge whether it is successful or not based on her short life. “It’s going to take 10 or 15 year for us to really say’ yeah, was it worth our while” “No business is necessarily going to be operationally successful and viable in the first year of operation” some words by HK citizens (, 2005:). But there are still many problems and difficulties produced by HK Disneyland. This accusation is not allowed to deny HK Disneyland. “I think they have learned their lessons after this year” said the opposition lawmaker   (, 2005:). Although the operation experience of HK Disneyland is not very good, still some people believe that “The park record was still outstanding by local standards” (, 2005:). They are still willing to give chances to HK Disneyland to have a bright future.   Acknowledgements I would like to thank all the people and teachers who have helped me during these few years, especially Professor , who is very patient and kind to me. Since the first year in Jinan, Professor  has taught us much knowledge, which helps me a lot. During these few years in Jinan University, I have learnt many things: not only the knowledge from the books, but also the way of getting along with people. After these few years, I become an independent and confident person. I hope that this experience can help me make a bright and colorful career.   Bibliography Credit:ivythesis.typepad.com

HONGKONG DISNEYLAND

诚信声明我声明，所呈交的毕业论文是本人在老师指导下进行的研究工作及取得的研究成果。据我查证，除了文中特别加以标注和致谢的地方外，论文中不包含其他人已经发表或撰写过的研究成果，也不包含为获得其他教育机构的学位或证书而使用过的材料。我承...