The Role of Marketing Strategies in the Tourism Industry of Hong Kong

Research Questions

1. What are the marketing strategies present in the tourism industry of Hong Kong?

2. How do managers implement these marketing strategies in the tourism industry?

3. What are the advantages and disadvantages of marketing strategies being used?

4. What is/are the role(s) of marketing strategies in the tourism industry of Hong Kong?

Literature Review

According to the survey result (see Appendix 1), Hong Kong is receiving great revenue from the business and family travel sectors in recent years. Results say that the average stay of visitors is around four (4) days. In order to generate further revenue and consolidate the tourism position of HK, focuses are required to put on the marketing strategies used by managers in the tourism sector.

Tourism, the world's largest industry, is expected to grow to 1.6 billion arrivals by 2020 (Richter, 2003). As this subject directly linked to tourism industry, it is imperative to provide an intersecting point of discussion. Tourism, being the umbrella topic and business management and marketing studies are done by numerous researchers. This is in response to the growing needs to identify, monitor, and study the emerging trends affecting the business management and marketing strategies in both micro and macro setting.

Though tourism is not usually thought of as a single cohesive industry, the growth of tourism since World War II has nonetheless been dramatic. Higher discretionary incomes, smaller family size, changing demographics, lower transportation costs, improved public health standards, infrastructure development, and hospitable environments for tourists in many destinations have made tourism, especially long-distance tourism, an activity within the reach and desires of many members of many nations (Urry, 1990; Eadington & Smith, 1992; Ap & Crompton, 1998). Furthermore, developments in marketing, management, vertical and horizontal integration, pricing, and tour packaging, as well as capital investments in physical facilities – "bricks and mortar" – and public infrastructure, have provided tourism with the necessary framework to allow the tremendous growth it has experienced over the past half century. Thus, tourism has indeed emerged as an "industry" which, according to the World Tourism Organization (WTO), in 1989 generated approximately 74 million jobs in its direct and service-related industries, such as airlines, hotels, travel services, and publications.

Tourism, particularly international tourism that includes all other types of tourism, remains a consistently productive industry in a volatile global economy. Tourism and travel make up one of the world’s largest industries. In 1999, the World Travel and Tourism Council (WTTC) also reports that across the global economy, travel and tourism generates directly and indirectly: 11% of GDP; 200 million jobs; 8% of total employment; and 5.5 million new jobs per year until 2010 (WTO, 2002). The WTO data for 1999 showed that 663 million people spent at least one night in a foreign country, up 4.1 per cent over the previous year. Spending on international tourism reached US$453 billion – a growth rate of nearly 3 per cent over 1998 (WTO, 2002). Ghimire (2001, p. 99) added that tourism is frequently perceived as an outstanding means of invigorating and branching out the regional economic base, creating new employment and income potentials for communities and fortifying interpersonal contacts.

Many tourism studies have given much importance on knowing why people travel, which destinations they choose and the factors that play an important role in the selection of vacation destination (Orth, 2002). Much of the tourism studies have been focused on the push and the pull factors (Mak & Moncur, 1980 in Mak, 2004; Um & Crompton, 1990 in Orth, 2002). Push or motivational factors enable potential tourist to develop attitudes toward traveling while pull factors refer to the attractions in destinations.

According to most studies (Aaker, 1989; Porter, 1990; Crouch & Ritchie, 1999; Dwyer & Kim, 2003), success in tourism marketplace lies on the overall attractiveness and the experiences a destination delivers to its visitors. The strengths and weaknesses of a tourism destination can be recognized through determining the factors underlying destination competitiveness. Destination competitiveness determines the ability of a destination to attract markets and is linked to the ability of a destination to deliver goods and services that perform better than other destinations. Crouch and Ritchie (1999) develop a model that lists the factors that influence tourism.

Meanwhile, 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. Also, Hong Kong is known for sustaining its competitive advantage especially in Asia’s hotel as well as tourism industry (Lloyd, La Lopa & Braunlich, 2000; Yu, 1994). Because of its abundance in several attractions like its world-renowned cultural heritage, Chinese cuisine and dining, entertainment and leisure, tourists flock their way to experience Hong Kong’s magnificence and top offers. Hong Kong locates in a favorable geographic location in the centre point of Asia Pacific region with a minimum five (5) hour fly reaching most of the areas worldwide, with the support of HK’s hardware, events tourism thrives on this piece of land. Different kinds of events that consist of both commercial, social, cultural, educational in nature are present in this venue (HKCEC, 2004; HITEC, 2003; AsiaWorld – Expo, 2005; LCSD, 2006).

During the previous years, the Hong Kong Tourism Board (HKTB) works its way to promote HK as “Events Capital” in Asia. There are several ways and means 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, on the other hand, is to maximize 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 programs to promote Hong Kong as a top tourist destination is evident. As an example, the promotion of the 2006 Discover Hong Kong with the full support of the state and its stakeholders is highly applicable. The HKTB together with the Hong Kong government established innovative campaign and promotion to develop and promote the country. Historically, Hong Kong is a British colony. With this known fact, there is a wide assortment of information that documented the efforts of developing its tourism planning and economy.

The historical brief of Hong Kong tourism development is limited. This is rooted on the history of the island being British colony for several years. There are other information and developmental facts that are not credited to the present situation. However, in reference to the previous national history, it could be said that Hong Kong tourism is just fresh and pioneering. With the influence of free trade, globalization and advent of modern technological means, the island becomes an instant role model in international tourism and economic progression. Now, there is a need to identify the most efficient marketing strategy to be applied as well as its role(s) in reaching the maximum development of the whole industry.

Methodologies

The researcher used the descriptive research method, which is primarily concerned with describing the nature or conditions of the current situation in detail (Creswell, 1994). The emphasis is on describing rather than on judging. The primary data collection method is interview of tourism managers and personnel. An interview, according to Kahn and Cannel (1957) is a purposeful discussion between two or more people. The use of this research method is said to be useful in the gathering valid and reliable data that are relevant to a research question as well as objectives. In some special cases wherein there are no definite research questions or objectives, this method may aid the researcher to achieve this. In general, the research interview is a general term for several types of interview. Accordingly, Saunders and colleagues (2003) believed that this fact is significant since the very nature of any interview should be consistent with the research question or objective, the purpose of the research, and the research strategy that is being considered.

On the other hand, secondary data collection method includes library and Internet research. Data and information from marketing management and tourism books, articles in journals, research studies, reports, policy documents from various organizations, theses, papers presented at professional meetings, and documents publicly accessible over internet are reviewed and collated in relation to the subject. This will also serve as the reinforcing and validating agents of the information collected during the interview process.

References

Aaker, M.A. (1987). Managing Assets and Skills: The Key to a sustainable competitive advantage. California Management Review, 31(2), p. 91.

Ap, J. & Crompton, J.L. (1998). Developing and testing a tourism impact scale. Journal of Tourism Research, 37(2), pp. 120-130.

AsiaWorld – Expo. (2005). Event Calendar. Retrieved January 22, 2007, from http://www.asiaworld-expo.com/eventCalendar/eventCalendar.aspx?lang=enUS

Creswell, J.W. (1994). Research design: Qualitative and quantitative approaches. Thousand Oaks, CA: Sage.

Crouch, G.I. & Ritchie, J.R.B. (1999) Tourism, Competitiveness, and. Social Prosperity. Journal of Business Research, 44, pp. 137–52.

Dwyer, L. & Kim, C. (2003) Destination Competitiveness: A Model and Determinants. Current Issues in Tourism, 6(5), pp. 369 – 414.

Eadington, W.R. & Smith, V.L. (1992). Tourism Alternatives: Potentials and Problems in the Development of Tourism. Philadelphia: University of Pennsylvania Press.

Ghimire, K.B. (2001). Regional Tourism and South-South Economic Cooperation. The Geographical Journal, 167(2), p.99.

HITEC. (2003). Event Calendar. Retrieved January 22, 2007, from http://www.hitec.com.hk/eng/events/monthlyCalendar.cfm

HKCEC. (2004). HKCEC Event Calendar. Retrieved January 22, 2007, from http://www.hkcec.com.hk/english/eventcalendar/event_list.php

HKTB. (2006). 2006 Discover Hong Kong Year Introduction. Retrieved January 22, 2007, from http://www.discoverhongkong.com/eng/mustknow/dhky/flash/main.jhtml

Kahn, R. & Cannel, C. (1957). The Dynamics of Interviewing. New York and Chichester: Wiley.

LCSD. (2006). Leisure & Cultural Services Department. Retrieved January 22, 2007, from http://www.lcsd.gov.hk/en/home.php

Lloyd, J., La Lopa, J.M. & Braunlich, C.G. (2000). Predicting Changes in Hong Kong's Hotel Industry Given the Change in Sovereignty from Britain to China in 1997. Journal of Travel Research, 38(4), pp. 405-410.

Mak, J. (2004) Tourism and the Economy. Hawaii: University of Hawaii Press.

Orth, T. (2002). Segmenting the Tourism Market Using Perceptual and Attitudinal Mapping. Agriculture Economics, 48.

Porter, J. (1993). The Transformation of Macau. Pacific Affairs, 66(1), p. 8.

Richter, L.K. (2003). International Tourism and its Global Public Health Consequences. Journal of Travel Research, 41(4), pp. 340-347.

Saunders, M., Lewis, P. & Thornhill, A. (2003). Research Methods for Business Students, 3rd ed., London: Prentice Hall Financial Times.

Urry, J. (1990). The tourist gaze: leisure and travel in contemporary societies. London: Sage.

World Tourism Organization (WTO) (2002). Facts and figures. Retrieved January 22, 2007, from http://www.world-tourism.org

Yu, R. (1994). Hong Kong: sustaining competitive advantage in Asia’s hotel industry. Cornell Hotel & Restaurant Administration Quarterly, October.