QCF

Unit Title: International Travel, Tourism and Hospitality

Learning Outcome:

1. Understand the process of internationalisation in the context of TTH and assess

the role of multinational travel, tourism and hospitality corporations in influencing
management practice.

Please note that the content of this Lecture Guide is listed in its recommended
teaching order, rather than in numerical order.

Indicative Content:

[N.B. This Learning Outcome will require two lessons to cover in full.]

1.1.1 Travel, tourism and hospitality have expanded hugely as an international

industry since the first trans-national operations started operations in the 1950s. Prior
to that, with the exception of transport companies operating between or across
national boundaries, businesses in the sector were exclusively domestic or national
in their operations.

1.1.2 Internationalisation in TTH needs to be understood in the wider context of

globalisation of all economic activity and the drivers that have facilitated this process
political, economic etc. Students should understand the role of major organisations
in the globalisation process World Trade Organisation, European Union, national
governments and the debates that take place over the process in terms of its
positive/ negative impacts on countries, especially those in the developing world.

1.1.3 Some of the factors behind the internationalisation of travel, tourism and
hospitality businesses can be identified as follows:
Growing political and economic freedom to travel internationally introduces
many new visitors to mobility out of their own country.
New travellers seek familiar products and services when out of their own
country e.g. Hilton, McDonalds.
Moves towards free trade and globalisation in services permits expansion of
branded travel, tourism and hospitality companies out of country e.g.
Holiday Inn, Prt a Manger.
Major national companies reach saturation point within their own domestic
markets e.g. Holiday Inn, Accor.
Governments seek foreign direct investment in the travel, tourism and
hospitality sector, wooing major companies to locate in their cities and resorts
e.g. in Malaysia, Turkey.
Liberalisation and deregulation permit new set ups, mergers and acquisitions
across borders in the airline and other transport sectors e.g. Air France/
KLM, British Airways/ Qantas, Star Alliance.
Changes in transport and communications technologies which have enabled
internationalisation to take place, both in terms of the supply-side
(businesses, tour operators) and on the demand side in terms of the tourists
themselves.

1.1.4 Students should look to understand and apply PEST analysis to the
internationalisation of the TTH industry in order to understand the impact of
environmental factors on internationalisation:
 How do political factors influence the internationalisation of the TTH sector?
How do economic factors influence the internationalisation of the TTH sector?
How do social (and cultural) factors influence the internationalisation of the
TTH sector?
How do technological factors influence the internationalisation of the TTH
sector?

1.1.5 Students should explore examples of each of these PEST factors. Students
may also want to think of other factors behind internationalisation and examples that
relate to their own country.

Examiners tips:

Think of the benefits and drawbacks to internationalisation from the point of view of
major stakeholders - companies (local, multinational), host countries and their
governments), consumers, employees.
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:
1. Understand the process of internationalisation in the context of TTH and assess
the role of multinational travel, tourism and hospitality corporations in influencing
management practice.

Indicative Content:
1.1.6 What factors militate against internationalisation of travel, tourism and
hospitality in some countries?
Political factors e.g. in Iran, North Korea.
Country size and population base is too small e.g. Iceland.
Remote location.
Economy too under-developed to attract investment/ international interest.
Efficient locally-owned competition in the marketplace e.g. Iceland.

1.2.1 The rapid growth of international tourism has resulted in recreational travel
becoming an industry with the travel experience itself evolving into a commodity
form. Greater unit size, increasing horizontal and vertical integration and the
penetration of non-tourism capital, have important repercussions for the internal
organisation and structuring of the industry. Internal organisation directly shapes the
nature of links between the various components of the industry.

1.3.1 The process of internationalisation has been further enhanced by the continued
liberalisation of trade through the World Trade Organisation (WTO). New technology
has also played its part in providing greater access to information and therefore
markets, as well as aiding competitiveness and widening consumer demand.
Multinationals have emerged in TTH over the past 40 years. They were first studied
by Dunning and McQueen in the early 1980s who noted the growth of
internationalisation in the hotel sector. This has been followed by similar
internationalisation in the airline sector, other forms of transport (railways, cruise
lines), tour operations (TUI) and in sectors of the attractions industry (Disney).
American, European and, increasingly, Asian companies have dominated the
internationalisation process in TTH. The model for internationalisation in TTH was
established by American companies, extending the process which had seen the
emergence of hotel chains from the 1950s and consolidation of the airline industry
following deregulation in 1979.

Students are expected to identify examples of TTH multinationals across all sub-
sectors.

1.4.1 The benefits to consumers of multinational TTH companies include:

Familiarity and consistency of product.
Easy access to information and reservations.
Loyalty programmes.
Economies of scale reducing prices.

1.4.2 The negative impacts to consumers of multinational TTH companies include:

Lack of local character and authenticity.
Lack of community/local involvement.
Leakage of profits from local economy
Examiners tips:

Think of examples of products and services you consume that you can buy because
of internationalisation. How would your everyday life as a consumer be affected if you
could not buy these things - would it be better or worse?
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

2. Be able to critically apply theories of internationalisation to the travel, tourism and

hospitality context.

Indicative Content:

2.1.1 There are a number of theories of internationalisation to which students can

refer. Among the best known internationalisation strategies adopted by companies
are the following:
1. Output driven models the product life cycle theory (Wells, 1972) using up
spare capacity.
2. Input driven models - new international division of labour (Frobel, Heinrichs
and Kreye, 1980) labour and other resources are cheaper overseas .
3. Integrated models eclectic theory (Dunning, 1981).

2.1.2 Perlmutter identifies a number of organisational structures that move from

home country control within the internationalisation process to one that is global in
orientation. Perlmutter found three distinctive orientations, which he labeled:
Ethnocentric, Polycentric and Geocentric.

Ethnocentric Orientation - orientated towards home country.

The prevailing attitude of senior management in this orientation is that the way of
doing business, at home, is applicable to the rest of the world. The attitude is
probably that national employees and leaders are more capable to maintain
international tasks than non-native employees recruited in the host-country. The
practices and policies of headquarters are transferred to the international
subsidiaries, which need to comply with these standards.

Polycentric Orientation - oriented towards host country.

The assumption of managers in this orientation is that the one-size-fits-all approach
is unfeasible. Subsidiaries are managed as autonomous units, who are allowed to
manage their operations as they see fit. This leads to a broader organisational
culture, where top positions are not as heavily staffed by nationals from
headquarters, and potentially to a better understanding of local needs and demands.

Geocentric Orientation - oriented towards the whole world.

This orientation does not regard nationality as a competitive advantage or
disadvantage. The employees are recruited from all over the world, so that the best
people are recruited to solve global problems. The MNC tries to develop both global
differentiation and global integration between headquarters and foreign subsidiaries.
The focus is therefore to gain the potential advantages of an integrated company,
and to gain the advantages of differentiation, for example in product offerings.

2.1.3 An alternative to Perlmutter is the work of Bartlett and Ghoshal (1991). They
identified four distinct types of multinational corporations (MNCs), which are depicted
in the image at the end of this article. These four types can be seen to illustrate which
strategic outlook MNCs have towards managing their subsidiaries, and how these
MNCs balance the potential needs of global integration and global differentiation.
Each MNC should ideally choose the strategic model that satisfies the needs of the
environment, will secure global competitiveness. Bartlett and Ghoshal (1991) added
a third force to this framework: forces for world-wide innovation. This force can be
seen as the pressure a MNC faces in levering the dispersed capabilities for
innovation within the MNC. However, Bartlett and Ghoshal argue that many MNCs
will have to adopt the transnational strategy, because the competitive forces of
almost every industry are increasing, due in part to the intense globalisation which
occurred during the last decades. Many modern MNCs will therefore most likely need
to choose a transnational strategy, because many MNCs must master both the art of
cost reduction and local differentiation to maintain its competitive edge.

2.2.1 A number of benefits to companies of internationalisation can be identified.

Examiners tips:

Understand how theories explain different aspects of phenomena - the three

presented here are not necessarily in opposition to each other but rather give us
different perspectives on internationalisation. It is important to understand what each
can and cannot tell us.
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

3. Be able to critically apply theories that explain cultural differences in management

practice within a travel, tourism and hospitality context.

Indicative Content:

[N.B. This Learning Outcome will require 2 lessons to cover in full.]

3.1.1 TTH is a sector within which cultural factors play a major part. Culture
impacts on TTH in the sense that travel takes visitors out of their home culture
and into contact with other cultures, whether at home or abroad.

3.1.2 Guests from many different countries and cultures interact within TTH
operations, whether hotels, cruise liners or aircraft.

3.1.3 Culture is also of importance through the ownership and management of

TTH businesses (see above).

3.1.4 The TTH workforce is increasingly multinational, particularly in the

developed world, creating situations involving the interaction of diverse cultures.

3.2.1 Students will need to consider, in a critical way, theories that explain
cultural differences in management practice within a travel, tourism and
hospitality context, with particular focus on the work of perhaps the best known
researcher in this field, Geert Hofstede.

3.2.2 Hofstede applied his dimensions to some forty countries worldwide, with a
strong concentration in Europe. The five dimensions are as follows:
Power distance, defined as the extent to which the members of a society
accept that power in institutions and organisations is distributed
unequally, is a measure of the interpersonal power or influence between
two people, as perceived by the less powerful of the two.
Uncertainty avoidance reflects a societys fear of the unknown and the
extent to which uncertainty generates comfort or discomfort in its
members and is thus important to avoid.
Individualism/Collectivism is Hofstedes third dimension. Individualistic
societies (the United States, Australia, the United Kingdom) are those in
which ties are loose, where all members of society are expected to care
for themselves and their immediate family only, and where emphasis is
placed on individual achievement, identity and decision-making.
Masculinity/Feminity is Hofstedes next dimension, although the use of
these terms is open to criticism in that they appear to assume innate
gender characteristics against which to plot national cultures.
Time focuses on the degree to which the society embraces long- or short-
term devotion to traditional forward thinking values.

Examiners tips:

There is a need to be careful in the application of these theories because of the real
danger in stereotyping national groups.
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

3. Be able to critically apply theories that explain cultural differences in management

practice within a travel, tourism and hospitality context.

Indicative Content:

3.2.3 Having addressed Hofstede in some detail, it is important that students

understand that his is not the only theory of cultural variation and that others
(Trompenaar, Mole) provide alternative interpretations of how different cultures
behave. All the theories have more in common than they have differences.

Trompenaars model assumes major dimensions of person versus task, and

centralised (which is also assumed to be hierarchical) versus decentralised (which is
assumed to be more egalitarian). Both of these dimensions are very common
measures and can often be easily determined.

Egalitarian/decentralised

Guided
Incubator
Missile
(fulfilment-
(project-
oriented)
oriented)
Person/Informal Task/Formal
Style Style

Family
Eiffel Tower
(power-
(role-oriented)
oriented)

Hierarchical/centralised

3.3.1 It is also important to understand the dangers of stereotyping individuals based

on a theory such as Hofstede in a practical, operational situation in TTH. Students
must recognise that each guest should be treated as an individual in her/ his own
right and that you cannot assume expectations and/ or behaviour purely on the basis
of their passport!

It is important to emphasize that the generalisations which are derived from any
classifications and typologies must be treated with extreme caution in order to avoid
their use in support of stereotyping and, ultimately, the promotion of racist attitudes.
This is especially true in the classification of cultures. They provide guidelines and
identify the fact of cultural variation in the way that groups and people behave and
respond to different situations. However, each guest and employee/colleague is, first
and foremost, an individual who may or may not fit into the general attributes identified
for his or her cultural, national or ethnic group. The management of these dimensions
of diversity in the tourism and hospitality industry must at all times be sensitive to
individual behaviour and needs as well as to the norms of a group.

The challenges posed by a culturally diverse workforce include:

Increased training costs. For example, a multicultural workforce may require
English language and cultural awareness training to facilitate integration into
the workplace and local society.
Increased incidents of conflict. Conflicts arise when two or more individuals
differ or disagree on a particular situation. In diverse workplaces, the most
common conflicts arise from feelings of superiority, ignorance or fear, and
result in derogatory comments or gestures. If management ignores such
incidents, productivity suffers.
Mismanaged diversity, which can cause employee dissatisfaction and affect
productivity, leading to lower job performance.
The need to accommodate a variety of religious and cultural expectations
such as holy days and dietary needs.
Reverse discrimination. This is a claim by a member of the majority that a
member of a minority received preferential treatment because of their minority
status and not their ability or qualification.

Examiners tips:

Think about how theories can actually help in shaping the way that managers
conduct their work but also recognise the limitations of theories - they do not provide
simple answers to problems.
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

4. Understand the interplay between organisational design and practices in

international travel, tourism and hospitality organisations and their impact on
management policy and practice.

Indicative Content:

4.1.1 Students will seek to understand the interplay between organisational design
and practices in international travel, tourism and hospitality organisations, and their
impact on management policy and practice

4.1.2 Organisational design may be seen as a process for improving the probability
that an organisation will be successful.

4.1.3 More specifically, organisation or organisational design is a formal, guided

process for integrating the people, information and technology of an organisation. It is
used to match the form of the organisation as closely as possible to the purpose(s)
the organisation seeks to achieve. Through the design process, organisations act to
improve the probability that the collective efforts of members will be successful.
Managers and staff work together to define the needs of the organisation and then
create systems, processes and procedures that are intended to meet those needs
most effectively.

4.1.4 Organisational design is intended to create an organisational structure and

culture that is best equipped to achieve the strategic goals and priorities of an
organisation.

4.1.5 Thinking about OD in the context of travel, tourism and hospitality necessitates
reference back to the structure of the sector in many countries small, dispersed
operations; individual ownership; stochastic demand cycle among others. This
fragmentation impacts greatly on attempts to operate to a common organisational
design and culture, even where two or more outlets of the same organisation are
located within the same region or country.

4.2.1 The extent to which common organisational design features can apply across
businesses in travel, tourism and hospitality is also influenced by the extent of
internationalisation within the company. Creating an organisational structure and
culture that is applicable on a cross-border basis is challenging and may not be
achievable.

4.3.1 The structure of the TTH industry impacts on organisational design in a number
of ways:
Business focus (leisure, business etc) impacts on the design of TTH
organisations and the type, speed and quality of services that they offer
through that design.
Seasonality impacts upon the manner in which services are offered and staff
are employed/utilised.
Location impacts on the type of services offered and the nature of the supply
chain utilised.
Dispersed business structure means that economies of scale are difficult to
 achieve.
Role of small businesses in TTH (which dominate in many countries)
influences the design of many organisations in terms of the services they offer
and the managerial structure that is in place within them.

4.4.1 The role of the manager within TTH businesses is predicated upon the
organisational structure within which she/he operates. In a small business, the role of
many managers is likely to be much less specialist than in larger operations and they
are likely to be more customer-facing in their day to day activities. Small businesses
are often family owned and this influences the role and responsibilities of managers
as well.

Examiners tips:

Think about application. Think about a TTH business that you know (it could be a
hotel, a small caf, an airline) and consider how internal and external structural
factors influence the manner in which it is organised as a business.
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

5. Understand the role of foreign direct investment in the travel, tourism and
hospitality sector, including its benefits and limitations.

Indicative Content:

5.1.1 Foreign direct investment (FDI) plays an extraordinary and growing role in
global business. It can provide a firm with new markets and marketing channels,
cheaper production facilities, access to new technology, products, skills and
financing. For a host country or the foreign firm which receives the investment, it can
provide a source of new technologies, capital, processes, products, organisational
technologies and management skills, and as such can provide a strong impetus to
economic development.

5.1.2 Foreign direct investment, in its classic definition, is defined as a company from
one country making a physical investment into building a factory in another country.

5.1.3 FDI may take many forms, such as a direct acquisition of a foreign firm,
construction of a facility, or investment in a joint venture or strategic alliance with a
local firm with attendant input of technology, licensing of intellectual property.

5.1.4 Since 2000, FDI has come to play a major role in the internationalisation of
business.

5.2.1 The most important reason for a country to attract foreign direct investment in
tourism is probably the prospect of acquiring modern technology, interpreted broadly
to include product, process and distribution technology, as well as management and
marketing skills, which are often scarce or unavailable in such countries.

5.2.2 There are various ways in which nations can benefit from the presence of
tourism multinational affiliates in a sustainable manner.

5.2.3 Tourism MNCs often possess strong competitive advantages from their image
as international brands; experience and knowledge from previous international
operations; established affiliation with other sectors within and between the industry;
and existing loyal customers. As a result of their own international tourism marketing
operations, tourism MNCs may pave the way for local firms to enter the same
markets. For example, a new schedule or an increase in frequency of flights to the
host country may be created by a tourism MNC; or may be reflected when a tourism
MNC fails to retain the business of its own customers next visit or word of mouth
recommendation because the customer gathers awareness of local alternatives.

5.3.1 Tourism appears, to many developing countries, to be a promising source of

development. In developing countries, it is already worth more, in terms of export
revenues and share of GDP, than traditional commodity-based or manufacturing
exports, and seems to offer opportunities for employment, earning foreign exchange
and encouraging investment and economic growth. Most developing countries
therefore prioritise attracting FDI in their tourism sectors. However, this form of FDI is
complex, and its dynamics and impacts are not well understood. The search for
appropriate policies is hindered by the lack of study that has been given to the topic.
5.3.2 Developing countries often fear that they gain too small a share of the gains
from tourism, and while it has been widely assumed that this share would improve
over the years, it is not evident that this is occurring. As international tourism
increasingly becomes a web of integrated tour operators, travel companies and hotel
owners, it could go the other way, with developing countries gaining even lower
shares of the tourism dollar. Similarly, little is known about the linkages between FDI
in tourism and the local economy beyond anecdotal evidence.

Examiners tips:

Think about leakages from FDI. Have a look at the United Nations take on FDI and
tourism, especially leakages at http://www.unctad.org/en/docs/iteiia20075_en.pdf.
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

6. Understand the role of strategic business development models in the

internationalisation of travel, tourism and hospitality organisations.

Indicative Content:

[N.B. This Learning Outcome will require two lessons to cover in full.]

6.1.1 Students will consider the use of the following approaches to

internationalisation in travel, tourism and hospitality strategic alliances; and vertical
and horizontal integration. They should be comfortable with examples for each of
these types. Having done so, students will need to consider the benefits and
limitations of each approach and will be able to give examples of the application of all
these concepts in the travel, tourism and hospitality industry.

6.1.2 Strategic alliances can be defined as agreements between two or more

individuals or entities stating that the involved parties will act in a certain way in order
to achieve a common goal. Strategic alliances usually make sense when the parties
involved have complementary strengths. Strategic alliances have become
increasingly important in travel, tourism and hospitality as a means to permit
companies to develop integrated services on behalf of their clients, either over a
range of service areas or in spatial terms over a wide geographical area.

6.1.3 Vertical integration takes place when a company expands its business into
areas that are at different points of the same production path. This model of strategic
development is very important in travel, tourism and hospitality if it is seen in terms of
the total guest cycle whereby guests avail themselves of a wide range of services
during the course of a normal vacation travel agents, tour operators, airports,
airlines, local transport, accommodation providers, attractions and retail outlets.
Major travel, tourism and hospitality companies seek to ensure that their clients
purchase as many of these services from or through the one provider and, in seeking
to do so, have used purchase of complementary providers as a means to integrate
vertically.

6.1.4 Horizontal integration takes place when a company expands its business into
different products that are similar to current lines. This strategic model allows
companies to capture complementary segments within a common market by
purchasing specialist companies that cater for these groups.

6.2.1 Students need to address three further means by which companies in the
travel, tourism and hospitality sector are able to expand and develop their products
and services on an international scale. Students will need to consider the benefits
and limitations of each approach and will be able to give examples of the application
of all these concepts in the travel, tourism and hospitality industry. Understanding the
benefits and limitations of such arrangements should include reference to the
perspectives of major stakeholders the companies themselves, their consumers
and the communities within which they operate, partners and suppliers.
Examiners tips:
Think about strategic alliances from different stakeholder perspectives - customers,
the businesses and their suppliers.
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

6. Understand the role of strategic business development models in the

internationalisation of travel, tourism and hospitality organisations.

Indicative Content:

6.3.1 Franchising: according to the British Franchise Association, the term

'franchising' has been used to describe many different forms of business
relationships, including licensing, distributor and agency arrangements. The more
popular use of the term has arisen from the development of what is called 'business
format franchising'. Business format franchising is the granting of a license by one
person (the franchisor) to another (the franchisee), which entitles the franchisee to
trade under the trade mark/trade name of the franchisor and to make use of an entire
package, comprising all the elements necessary to establish a previously untrained
person in the business and to run it with continual assistance on a predetermined
basis.

6.3.2 Franchised businesses are locally owned and operated but the operator
(franchisee) is able to trade under the brand name of the franchisor and with full
product, facility and marketing support from that company. The franchisee pays a
franchise fee to the franchisor together with a percentage of turnover or profit.

6.3.3 Franchising has been a very important vehicle in the international expansion of
businesses in travel, tourism and hospitality. Some of the best known brand names in
the sector have developed through use of various forms of franchising. Examples
include McDonalds, Starbucks, Holiday Inn but the list of operators is very large, from
the relatively local to the truly global. In the airline sector, British Airways have
franchised services to partners in Denmark and South Africa.

6.3.4 Management contracts: a management contract is an agreement by which a

company will provide its organisational and management expertise in the form of
services. Thus, in the travel, tourism and hospitality sector, a business may be locally
owned but is operated under the branding of an international company with systems,
marketing and management provided by that company. Use of the management
contract is a common method of international expansion for major hotel companies,
especially into areas of perceived uncertainty where the international company is not
faced with the same level of risk that is linked to outright ownership.

6.3.5 Management contracts tend to be time limited so that the owner of the business
may change franchise partners after 3, 5 or 10 years.

6.3.6 Joint ventures: a joint venture is a contractual agreement joining together two or
more parties for the purpose of executing a particular business undertaking. All
parties agree to share in the profits and losses of the enterprise. Joint ventures are
employed in travel, tourism and hospitality where the level of investment required is
beyond the means of a single partner. However, it is more commonly employed
where, for political reasons, governments place limitations on the level of foreign
ownership that is permissible in an enterprise.
Examiners tips:

Thinking point: Does it make any practical difference to the consumer whether a
business is owned, operates under a franchise or management contract or is a joint
venture?
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

7. Understand the impact of national and cultural factors on the utilisation of

resources (financial, brand, product, human) in travel, tourism and hospitality
organisations.

Indicative Content:

7.1.1 Students will address the impact of national and cultural factors on the wider
utilisation of resources in travel, tourism and hospitality.

7.1.2 In the context of this subject, resources here are to be seen in a wide ranging
and inclusive sense. They include finance, physical environment, products and
services and human resources.

7.2.1 In terms of possible national and cultural differences, students might wish to
explore a range of application themes.

7.2.2 Cultural differences may lead to variation in the utilisation of resources in travel
tourism and hospitality. There are clearly others and students should seek these in
the context of their own experiences.

7.2.3 Resources in the context of these also include reference to human resources,
in particular the internationalisation of the TTH workforce.

7.2.4 Expatriate labour in travel, tourism and hospitality:

Low skills in developed countries (Europe, North America).
Mixed skills levels with specific cultural groups undertaking assigned roles
in the industry Gulf States, Saudi Arabia.
High skills in developing countries;
- management
- technical specialisms (chefs)
- linked to international corporate management/ ownership.

7.2.5 Skilled expatriate labour in travel, tourism and hospitality - the case in favour:
Supports/ reduces risk with respect to foreign investment.
Supports brand/ hotel marketing/ image.
Provides skills/ competence unavailable in developing countries.
Supports training of local expertise to take over role.
Part of globally mobile workforce.

7.2.6 Skilled expatriate labour in travel, tourism and hospitality - the case against:
Reduces opportunities for local enhancement.
Expensive for owner/hotel company.
Provides negative role model to aspiring managers.
Part of globally mobile workforce but does it happen in reality?
A form of neo-colonialism.

7.2.7 The use of expatriate labour in tourism, hospitality and leisure is an issue of
considerable political, social and economic significance in many parts of the
developing world. Some movement of expatriate labour has a long-standing tradition
in Europe, with French chefs as well as German and Swiss chefs and managers
featuring in the London hotel industry since the early years of this century. The
growth of multinational companies has further developed this trend. However,
perhaps the most significant trend in this respect at the present time, and one that is
likely to continue, relates to the development of the tourism, hospitality and leisure
industry in developing countries. Much development investment and operational
control is foreign and this brings - understandable - requirements for the protection of
that investment and reputation through the employment of Western European and
North American expertise in key positions. This expertise, represented on the ground
by significant numbers of managers, chefs and other personnel, is further supported
by the importation of management and working cultures which are largely alien to the
experience of the local working population. The practice of expatriatism may only be
justified and will only be sustainable in the long term provided that local staff are
trained and given the opportunity to progress to positions of senior responsibility in
the companies in question. The experience of many developing countries is that the
development of such practice is by no means universal.

Examiners tips:

Students may like to think about whether it matters what national and/or ethnic
background the person serving you in a hotel/restaurant/airline is?
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:
8. Understand the relationship between internationalisation in travel, tourism and
hospitality and issues of sustainability within the sector.

Indicative Content:

[N.B. This Learning Outcome will require 2 lessons to cover in full.]

8.1.1 The Ontario Round Table on the Environment and the Economy (ORTEE)
Summer 1994 proposed a number of principles for a sustainable community which
have relevance in the context of the internationalisation of travel, tourism and
hospitality. The impact of our global industry can be evaluated against the following
criteria which state that a sustainable community is one which:

1. Employs ecological decision making (e.g. integration of environmental criteria

into all municipal / government and business decision-making processes);
2. Recognises that growth occurs within some limits and is ultimately limited by
the carrying capacity of the environment;
3. Uses renewable and reliable sources of energy;
4. Minimises harm to the natural environment;
5. Fosters activities which use material in continuous cycles;
6. Values cultural diversity;
7. Makes best use of local efforts and resources (strives for local self-sufficiency
and nurtures solutions at the local level);
8. Has respect for other life forms and supports biodiversity;
9. Does not compromise the sustainability of other communities (a geographic
perspective);
10. Does not compromise the possibilities of future generations by its activities (a
temporal perspective);
11. Has shared values amongst the members of the community (promoted
through sustainability education).

8.2.1 The question for debate here is whether an international travel, tourism and
hospitality sector is better or worse equipped to meet the requirements of these (or
other) sustainability principles.
8.2.2 There is an argument that international organisations, with their resources and
experience/expertise are best equipped to ensure that these principles are met.
8.2.3 On the other hand, the more locally focused argument is that international
companies have no sense of loyalty to the community and environment within which
they locate and are less likely to act within these principles than indigenous
organisations.
8.2.4 There are no clear answers to this question. Rather, students could look at
each of the principles and assess whether local or international operations would be
more likely to comply in the specific context of their own country.

Examiners tips:
Question worth asking and thinking about: do general principles of sustainability
make sense in the specific context of tourism?
 QCF
Unit Title: International Travel, Tourism and Hospitality
Learning Outcome:

8. Understand the relationship between internationalisation in travel, tourism and

hospitality and issues of sustainability within the sector.

Indicative Content:

8.3.1 Sustainable practice in terms of the internationalisation of TTH businesses

follows the core principles of sustainable development.

8.3.2 Key to any sustainable international investment is recognition of the needs of all
stakeholders, engagement with all parties, consultation and investment in processes
and technologies that are both environmentally and culturally sympathetic to the local
environment.

A major issue for debate is whether consumers should be required to make a bigger
contribution to sustainability through taxes on their travel (all forms)?

In the UK, this debate is active and the UK Government put forward advice to
consumers as to how to reduce their environmental impact when travelling
(http://www.direct.gov.uk/en/environmentandgreenerliving/greenertravel/dg_064429).

A strongly argued case on the environmental tax issue can be found at

http://www.bata.uk.com/Web/Documents/media/pubs/Air%20travel%20facts.pdf.

8.4.1 Discuss examples of good practice with respect to sustainability in international

TTH.

Examiners tips:

An environmental tax may be good from a green point of view. Think about the
effects on a country that you know well.