Tourism, Economic Development and Planning

Introduction

The latter half of the twentieth century has been marked with amazing changes in technology, transportation, and communication and, in varying degrees, a spread of geo-political stability that has accompanied economic affluence for many citizens in industrialized and developing countries throughout the world. These changes have triggered the development of a number of new industries and the substantial evolution of existing industries to address the needs of increasingly prosperous, educated, and sophisticated post-industrial societies. One of these industries, tourism, has quietly emerged to become an important force in many societies and economies in various parts of the world. Though 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.

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, in 1989 generated approximately 74 million jobs in its direct and service-related industries, such as airlines, hotels, travel services, and publications.

Destination: Hong Kong and Malaysia

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 (Kwong & Miscevic, 2002). Because of its abundance in several attractions, tourists flock their way to experience Hong Kong’s magnificence and top offers. Among these offerings to the various visitors of the country are the rich assortment of food, entertainment, culture and lifestyle.

This year, 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 maximise the social and economic contribution that tourism makes to the community of Hong Kong, and to consolidate Hong Kong's position as a unique, world class and most desired destination (HKTB, 2006).

The existence of the developmental action plans, policies, and 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 Hong Kong Tourism Board 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.

Another example would be Malaysia. The tourism industry in South-East Asia specifically to Malaysia has been under the spotlight since the October 13 terrorist attack in Bali, with mixed messages about the safety of traveling to different nations depending on which government website is consulted (Smith, 2002). After the Bali bombing, Malaysia, a close neighbor of Indonesia, has been forced to revise expected tourism figures. Malaysian deputy minister of tourism Ng Yen Yen recently announced the forecast for tourist arrivals had been cut by 7.7 per cent as a direct result of the attack.

Malaysia is known for its oriental collection of culture, nature’s beauty, and heritage. Like other neighboring nations, Malaysia’s reputation as a safe tourist destination was somewhat marred in 2003 because of its association with SARS hit countries in the region. In a quick response, Malaysia has committed itself to aggressive promotion and the economic relief package for players in the travel industry, extended by the government. The promotional efforts as well as Malaysia’s increasingly strong reputation as a center for international events boost the slow economy and ensure that the balance of tourism payments remains positive.

According to the Euromonitor International (2004) Malaysia’s domestic tourism has been steadily increasing, rising 11% in 2002 to 22.2 million trips. Programmes such as Cuti Cuti Malaysia, aim to encourage domestic traveling, undoubtedly contributed to the increase. Per capita increased in 2002 and 2003, where it reached RM 377 in 2002. Moreover, travel retail revenues increased by 12.6% to RM 4,689 million, although value growth slowed down to increase by an estimated 3% in 2003.

The two aforementioned examples have many things in common. Among these are the following:

They are both situated in the South East Asia regions – both oriental countries.

Government participation is increasing.

The viewed importance of tourism in the nation’s economy is mutual.

Planning and development including campaigns and promotions are combined efforts of the government and the people.

Continuous competitive advantage in terms of tourism is highly maintained.

Concepts and Theories of Tourism Development

International 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. World Tourism Organization (WTO) data for 1999 show 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).

These results are in line with WTO's long-term growth forecast Tourism: 2020 Vision which predicts that the tourism sector will expand by an average of 4.1 per cent a year over the next two decades. Annual international arrivals are expected to surpass one billion by the year 2010 and reach 1.6 billion by the year 2020 (WTO, 2002). Reasons for this sustained growth include greater disposable income in tourism generating countries, and, especially in some of the emerging economies of Asia, more leisure time, earlier retirement, improvements in infrastructure and transport (particularly air transport), and changes in consumer spending preferences.

Tourism is an "invisible" industry, encompassing transportation, lodging, and entertainment (Harrill & Potts, 2003). Unfortunately, tourism is also invisible to many planners, so tourism development is often left to private developers and leisure service providers. Given tourism's substantial social, economic, and environmental impacts – positive and negative – planners can no longer afford to dismiss tourism as tangential to other planning functions.

The terms "postmodernism" and "post-modernity" are associated with diverse interrelated phenomena that developed after World War II in varied spheres of activity, such as art, architecture, science, politics, cinema, sports, and tourism. Inconsistent use of these terms is recognized even by scholars who promote the postmodern perspective. However, the term post-modernity as a particular set of generalized developments that may constitute a new cultural paradigm and social consciousness (e.g. Urry, 1990).

Among the various developments associated with the notion of postmodern tourism, one could point to the proliferation of simulated environments and "hyper real" experiences, the growing awareness of the natural, the rise of small and specialized travel agencies, and the growing attraction of nostalgia and heritage tourism. Nevertheless, a complete discussion of these varied developments in the field of tourism is beyond the scope of this paper.

Specific attention is paid in this study to the phenomenon of de-differentiation, which is recognized as one of the most fundamental features of the postmodern era (Urry, 1990). In this context, the modern period has been characterized by horizontal and vertical processes of differentiation between normative, aesthetic, and institutional spheres of social activity. Horizontally, these processes involve the development of distinct fields of activity, each with its own conventions and modes of evaluation. Vertically, these processes are responsible for traditional distinctions between "high" and "low" culture, or between the consumption of fine art and popular pleasure. The postmodern condition, by contrast, involves a breakdown in the distinctiveness of each of these spheres of social activity.

The notion of de-differentiation was applied in the tourism literature by scholars stressing the decreasing distinctiveness of tourism as a field of social activity (Urry, 1990). In this context, Urry suggested that tourism could once be characterized by three forms of exchange relationships: financial exchange for rights to occupy mobile property, financial exchange for temporary possession of accommodations and facilities away from home, and financial exchange for ability to gaze at unfamiliar sites. Currently, however, these forms of exchange are no longer confined to tourism practices and may occur in various contexts of everyday life, such as shopping, eating-out, sports, education, and so on. In the era of mass media and simulated environments, this trend is primarily evident with respect to the aspect of visual consumption.

A similar process of horizontal de-differentiation between tourism and the routine of everyday life is delineated by Munt (1994), who argues that "tourism is everything and everything is tourism" (p.104). In this context, he mentions the growing tendency to combine a variety of activities, such as adventure trekking, climbing, skiing, and mountain biking with tourism. More significantly, he stresses the penetration of the domain of tourism by intellectual activities, such as the proliferation of ecological, archeological, anthropological, and scientific types of tourism. In addition to the intellectualization of tourism, he points out a process of "professionalisation" in the consumption of tourism. In this context, Munt (1994) suggests that the separation of occupational professionalism and the consumption of leisure are beginning to blur.

Historical Evolution and Structure of Tourism Development in Hong Kong and Malaysia

Smith and Eadington (1992) stated that tourism can be studied: it has a history and a literature; it has internal structure with operating principles; it waxes and wanes and is highly sensitive to external influences including natural and cultural events; and it can be analyzed in terms of economic social transaction. Many countries and regions that have the necessary resources for tourism development have chosen the path of developing large scale tourism as a major national or regional activity. Tourism becomes a major employer, taxpayer, and physical and political presence in many jurisdictions. It has altered the major of social, political, and economic interaction that occurs in these places, agrarians were pushed out by industrialization.

Travel and tourism is a priority sector for assessment because of its broad economic, environmental and social implications throughout the world, and its place in World Trade Organization (WTO) negotiations. In industrialized country, tourism has been replaced by manufacturing, distribution, or extractive industry as the economic mainstay, in developing countries however, the shift is basically from an agrarian economic base to a tourist economic base, bypassing an industrial phase altogether. While it is said that tourism becomes an important pillar in many societies and economies in various parts of the world, it can never be denied that the development of tourism always has a detrimental effect on the people and the environment of a tourist destination (Smith & Eadington, 1992).

In Hong Kong, the historical brief of tourism development is limited. Because it was a British colony for several years, there other information and developments 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 nations become an instant role model in international tourism. The development of the tourism is still in the making. Thus, it is still on the process of development in cooperation of the government, tourism related individuals, and Hong Kong people.

On the other hand, Malaysia is a potential tourism spot. During the 1980s and 1990s, community-driven tourism became a major research theme, frequently under the guise of downtown redevelopment. In this era of strategic planning, tourism was seen by many planners as a replacement for "twilight" industries and a form of civic boosterism (Judd & Fainstein, 1999). Like all other nations, the country and its people gradually paved way to the development of tourism through planning. The wide collection of Malaysian historical account is discussed in their website.

Recently, the concept of sustainable development provided new momentum for tourism planning. For example, Hall (2000) and Inskeep (1991) identified sustainable development as a primary planning and development theme. In addition, Gunn's (1994) third edition of Tourism Planning included a chapter on sustainable development as a critical element of effective tourism planning. Recent contributions to tourism planning show a diversity of perspectives. For example, The Tourism City (Judd & Fainstein, 1999) is composed of case studies on urban tourism as an economic development strategy. Managing Tourism Growth: Issues and Applications (Bosselman et al., 1999) approaches tourism planning from a growth management perspective and presents case studies of historic districts in Santa Fe and New Orleans. Articles by Marcouiller (1997) and Ioannides (1995) address rural tourism planning in the United States and tourism planning in less developed countries, respectively. Marcouiller's (1995) extensive tourism planning bibliography remains a useful guide to seminal research in the field. Finally, the World Tourism Organization's (1994) National and Regional Tourism Planning offer tourism planning case studies from an international perspective.

Impact and Relationship of Government and Commercial Planning Initiatives

With the evolution of tourism industry, comes the commercialization of tourism (Urry, 1990). Evidence shows that over the last four decades, the dominant model of tourism production has been shifting from Fordist mass tourism to post-Fordism model of tourism production (Urry, 1990). Basically, Fordism is a stage in the development of 20th century capitalism. It is marked by intense relationships between governments, unions, and international capital (Urry, 1990). Moreover, Urry (1990), states that distinct divisions associated with the Fordist model are being broken down because the era of mass communication has transformed the taste of tourists. The mass consumption of a standardized product is a guide to new ways of competing and co-operating (Williams & Montanari, 1995). Increasingly, changing cultural values, business and national competition for tourism, and improvements in Information and Communication technology (ICT) are all facilitating greater emphasis on more individualistic or specialized forms of holidays (Williams & Montanari, 1995).

Tourism has continued to be an essential component of development planning in developing nations. In some instances tourism has been perceived as a redeemer to sluggish industries and conventional agriculture, generating new connections and demands. Specifically, the diverse subdivisions of the tourism industry, such as hospitality, catering, food and beverages, tours, recreational activities and the entertainment industry, transport, souvenir manufacturing and sale are accounted to unlock enormous outlooks for employment and profits to varied populations. Governments, connected business clusters and international financing organizations are inclined to look upon tourism as an uncontaminated industry. (Ghimire, 2001)

Developing nations believed they had a comparative advantage in comparison with their industrialized counterparts as they have incomparable tourist resources and appeals, like temperate and sunlit climate, gorgeous beaches, exceptional flora and fauna and tropical forests, and exotic or authentic civilization. Undeniably, in the 1950s and 1960s, newly-self-governing nations in Asia and Africa recurrently surmised tourism development to be a way of resource conveyance from the North to the South. (Ghimire, 2001) In isolation, developing nations wanted to endorse tourism by means of recognition and improvement of new locations, endorsement and advertising of expanded tourism merchandise, ratification of complimentary labor laws, granting of financially supported credits and tax immunities to foreign investors. Local and global tourism business organizations willingly joined forces with governments when they make out potentials for profit.

There are specific motives why governments all over the world sustain the development of tourism. Initially, the prospective for tourism to produce foreign currency is vital, even more so in countries which have artificial or controlled exchange rates, or which are, frequently accordingly, caused to undergo balance of payments difficulties. Second is the truth that tourism is labor exhaustive, and generates employment throughout the economy. Similarly, tourists pay out money on lodges, transportation, and meals, but also on an extensive assortment of goods and services. Third is the actuality that the tourism industry does not, in general, have need of costly or intricate technology or an extremely skilled labor force. With the exemption of a handful of multifaceted projects like airline operations, investment in tourism is not relatively costly, and will frequently give back a profit practically speedily. Furthermore, a lot of nations previously have prepared the basic and most imperative prerequisites for the improvement of the tourism segment; an agreeable climate, striking surroundings, historical locations, and welcoming population. In other words, governments frequently sense that their nation possesses an unexploited economic resource, and come to a decision to take advantage of it. (Gray, 1997)

More and more, in more than a few developing nations, national tourism has turned out to be more significant in the context of the overall amount of tourists and its contribution to national economy than international tourism (Ghimire 2001). Generally, it can be stated that national tourism is less responsive to international political unsteadiness and economic stagnation, less harmful to the nation's balance of payments and is supposed to generate considerable income and employment. But regardless of this potential, a handful of developing nations have a steady policy on national tourism. When a noteworthy amount of tourists start on to acquire holidays, they demand amenities and services. Governments have a propensity to deal with this development in an unplanned way, with tourism policies being created in a totally unintentional manner. Another feature of tourism is the speedy growth of regional tourism within developing nations, with specific up-and-coming prospects for economic growth in the South, but similarly a lot of imminent troubles akin to those connected with international tourism. This feature is up to now completely abandoned in tourism literature, but a small number of policy measures are being taken on at the ranks of regional institutions.

In fact, tourism seems to have become political in nature considering international organizations are formed in order to forge links that will intertwine their industries together. To illustrate, the issue of South-South partnership has been particularly restated throughout regional organizations such as Association of South-East Asian Nations (ASEAN), South Asian Association for Regional Cooperation (SAARC), and the Southern African Development Community (SADC). These organizations have intended to strengthen regional economic and political collaboration. In proportion to this underlying principle for regional support, 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. And a handful of particular policy schemes have been in progress along these lines in different regions. (Ghimire, 2001, p. 99)

On another case, it is also utilized as a tool to resolve or even avert conflict. The term 'conflict' is bound with negative insinuations. It is repeatedly regarded as the converse of collaboration and peace, and is most frequently connected with hostility or the danger of violence. This perspective of conflict is not constantly supportive. In a lot of situations it is supposed to be perceived as a possible force for constructive social reform, its existence an observable manifestation of society becoming accustomed to a new political, economic or physical atmosphere (Warner and Jones, 1998). A possible peaceful method to resolve these conflicts at the least social, economic, and environmental costs may possibly be by means of developing alternative tourism policies.

In the middle of increasing anxiety and worries all over the place getting away from it all is reasonably popular. With so many fantastic locations in the world, costs of international tours declining, and the pressures and tensions of everyday life growing, more individuals are traveling. And as the populace increases and incomes mount in a lot of societies, the development is precipitously positive. On the economic side of it, tourism has been an advantage as it makes a vital contribution to economic growth of a certain nation. It could be that a certain country in which tourism development is very low would suffer from economic instability. Taking a deeper look of it, tourism, first and foremost provides employment; it gives additional livelihood; it affects the balance of payments. Subsequently, there would be economic boom. However, tourism would also need to use facilities such as roads, airports, railways which are government concerns. It uses resources of land and water which government must manage for the nation.

The scale and distribution of responsibilities in the development vary from several factors such as economic status, culture, and the current state of the country’s tourism as a whole. In Hong Kong and Malaysia, the governments with its stakeholders have a specific action and developmental plans for the tourism of both countries. However, the participation of the people and the hospitality industry is also recognized. Initially, development starts in the community in which the attractions are located. Then, the process goes on. With some limitations in geographic locations and time constraints, developmental scale and distribution is subject for legislation and policy decision-making.

Role of Civil Society in the Development and Planning Process

Most tourism planners consider maintaining and improving resident-tourist relations critical to the long-term viability of tourism destinations (Ap & Crompton, 1998). Resident attitudes toward tourism development range along a continuum from negative to positive. Milman and Pizam (1988) found that despite positive feelings toward tourists, residents often noted specific negative impacts. These impacts included increases in unsafe traffic conditions, crime, drug addiction, and alcoholism. Benefits perceived by residents included increased employment opportunities, income, tax revenues, and quality of life. Many tourism researchers have assumed that determining sources of negative impacts can result in policies that mitigate them and improve resident attitudes (e. g., Lankford, 1994). McCool and Martin (1994) hypothesized that residents with strong feelings of community attachment were more likely to have negative attitudes toward tourism development than less attached residents, but their results refuted this notion.

During the years of mass tourism after World War II, the tourism industry stressed tourism's positive economic benefits. By the 1970s, however, researchers such as Jordan (1980) began documenting negative social, economic, and environmental impacts of tourism. Over the last 20 years, a more balanced perspective has emerged, with researchers investigating both positive and negative impacts as reflected in resident attitudes (Ap & Crompton, 1998). Mental states or dispositions, attitudes are "reinforced by perceptions and beliefs of reality, but are closely related to deeply held values and even to personality-unlike opinions, they do not change quickly" (Getz, 1994, p. 247). Resident attitudes are now recognized by tourism researchers as related to both the processes and outcomes of tourism development (Lindberg & Johnson, 1997).

Although many research articles address attitudes toward tourism development, few researchers examine this issue with community attachment. Um and Crompton (1987) suggested measuring resident attachment levels in a host community as length of residence, birthplace, and ethnic heritage. McCool and Martin (1994) examined relationships between tourism attitudes, length of residence, level of tourism development, and feelings of community attachment. Williams et al. (1995) measured community attachment as length of residence, age, and income, and Jurowski (1998) asked respondents to rate their quality of life and satisfaction with the community as a place to live.

Um and Crompton (1987) found that resident perceptions of tourism impacts on environmental quality did not relate significantly to attachment levels. However, the authors did find that, except for the environmental dimension, the more attached residents were to a community in terms of length of residence, birthplace, and heritage, the less positively they perceived tourism development impacts in their community. Conversely, McCool and Martin (1994) reported that strongly attached residents rated the positive dimension of tourism higher than unattached residents, although they were more concerned about sharing the costs of tourism development. Similarly, Williams et al. (1995) found that residents with high levels of attachment, measured as regional identity, tended to be more supportive of tourism development than less attached residents. Jurowski (1998) reported that residents with stronger feelings for their community were more supportive of tourism development and more optimistic about the impacts of tourism on the quality of life in their community.

Contribution of Planning to Sustainable Tourism Development

Though tourism may perhaps bring about an assortment of potential advantages, unrestrained mass tourism, the most predominant structure of tourism nowadays, unavoidably boosts the previously existing conflicts, in addition to generating new ones. (Moli, 2003) Tourism's gluttonous craving for basic resources like land, water and energy, has preordained that the tourism industry and government agencies are progressively finding themselves more in opposition over land rights and water rights by local individuals. Inadequacy of access by local residents to public beaches, contravention by hotels of environmental directives, and rough policies by local authorities to open beach regions for hotels' employment have all been mentioned in legal disagreements all over the world. Therefore, the modern world is exemplified by mass concentrations of individuals, mass production, and mass actions. Assortment and magnificence of land and life are increasingly substituted by standardization and unattractiveness. Human settlements in their mad rush for growth have converted attractive tree-clad backgrounds into uninhabited concrete jungles, and rich lands with varied local foliage are ever more ruined by monocultures. (Moli, 2003).

Like most economic enterprise, planning plays a vital role. Through planning, there is a specified objective to be attained at a specified time. In Hong Kong and Malaysia, marketing strategies planning is very important. Most tourism planners consider maintaining and improving resident-tourist relations critical to the long-term viability of tourism destinations (Ap & Crompton, 1998). To fully achieve the goals of HKTB in promoting and marketing HK on its 2006 Discover Hong Kong Year, planning is the key for its success. The strict implementation of strategic plans and marketing strategies will procure positive result sustainable development of the whole country. Planning will serve as the blueprint of all the development intended by the state, people and tourism stakeholders.

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