CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

The tourism sector is defined as an industry associated with leisure and travelers around the world as stipulated by (Cunha & Cunha, 2005). In the contemporary world, the hospitality industry has turn to be a blessing in tourism as there is a link between tourism and the hospitality industry.

It is asserted that, the development of leisure resorts such as hotels have greatly contributed to tourism activities in the world. We see cases like in Europe where good hotels are built just for tourists too lodge when they travel for tourist activities.

Braim, McCabe, Rickly and Gadi (2016) carried a study  to explore issues of cultural heritage protection in post conflict areas, and to set a careful planning and strategy for preserving cultural heritage site in Kurdistan in order to spur cultural tourism development.

Qualitative data method was used with the particular focus on in-depth interviews that have been used in this study for data collection.

This method allows the researcher to get full explanatory answer through a flexible tools such as follow up questions which might help to generate new knowledge and put forward new opinions or solutions for a particular problems selected over the interview.

The results study revealed that there were no complete record lists for all cultural resources in Kurdistan, which might be considered one of the challenges to conservation. It was argued that, currently, there is no final lists approved exist for all cultural heritage site in Kurdistan, which needs to be addressed.

This was largely attributable to the continuing conflict in the region, which reduced the government’s ability to allocate sufficient funds and enough care for all sectors in Kurdistan.  This article will guide the current study to see how hotels have great influence on tourist activities and economic development.

In the 20th century, the globalization of capitalism, movement of population, and advances in transportation and communication technology helped to develop the tourism and hospitality industry into one of the world’s largest industries.

Because of its ability to create income, taxes, hard currency and jobs, the tourism and hospitality industry has made a significant contribution to the economy of many communities around the world.

Anticipated economic benefits from the tourism and hospitality industry can encourage the building of poorly planned infrastructure, particularly in developing countries.

Many empirical studies present strong evidence of a positive relationship between tourism and economic growth in developing countries. For example, Fayissa et al. (2008) report tourism positively affects economic growth and development in most of the sub-Saharan African countries, also report tourism has a positive impact on economic development in Pakistan.

Moreover, a number  of  the  empirical  studies  demonstrate  different  results  regarding  the relationship between tourism  earnings  and  economic.   

In  general,  there  are  three different perspectives of such relationship. Some studies, like Wickramasinghe and Ihalanayake (2006), Kreishan (2010),  and  Brida  et    (2010),  argue  that  tourism  earnings  stimulate economic growth.

The main theoretical base for their argument has hypothesized a tourism -led growth, e., the  existence  of  several  theoretical  arguments,  for which  the  tourism  becomes  a main determinant of long-term  economic.   

All  these  studies  endorse  that  the  tourism enhances directly the national  aggregate demand,  employability,  and  income generation,  and produces positive impacts on  other  related economic  activities,    In  a broader  sense, tourism brings foreign exchange for a  nation that  helps  producing more goods and services  in the country that leads to economic growth.

Wickramasinghe and Ihalanayake (2006) study the causal  relationship of tourism to economic growth in the Sri Lankan context,  using  the data  for  the period  1960-2000. They use  variance decomposition analysis to obtain an idea of out-of-sample causal relationships, as the Granger- causality test should  be  carried  out  of  within-sample  causality.   

They  demonstrate  that tourism leads to  economic  growth  of  Sri  Kreishan  (2010)  also  proves  that  tourism expansion acts as an engine of economic growth with the Jordanian annual time series data for the period of  1970-2009.  His  Granger  causality  test  reveals  the  presence  of  unidirectional causality of tourism  earnings  to  economic.   

He  justifies  the  results  that  Jordanian government gives more  attention  on  the  development  of  tourism  industry  in  a  way  of developing four major strategies: namely, strengthening tourism-based (a) product, (b) market, (c) human resources and (d) institutional support. Brida et al. (2010) empirically support to the tourism-led growth hypothesis. In conclusion, the above studies suggest that effective economic policies can promote  tourism  industry,  which  becomes  a  potential  source  of  the  economic growth in a nation.

Moreover, a number  of  the  empirical  studies  demonstrate  different  results  regarding  the relationship between tourism  earnings  and  economic.    In  general,  there  are  three different perspectives of such relationship.

Some studies, like Wickramasinghe and Ihalanayake (2006), Kreishan (2010),  and  Brida  et    (2010),  argue  that  tourism  earnings  stimulate economic growth.

The main theoretical base for their argument has hypothesized a tourism -led growth, e., the  existence  of  several  theoretical  arguments,  for which  the  tourism  becomes  a main determinant of long-term  economic.   

All  these  studies  endorse  that  the  tourism enhances directly the national  aggregate demand,  employability,  and  income generation,  and produces positive impacts on  other  related economic  activities. In  a broader  sense, tourism brings foreign exchange for a  nation that  helps  producing more goods and services  in the country that leads to economic growth.

Wickramasinghe and Ihalanayake (2006) study the causal  relationship of tourism to economic growth in the Sri Lankan context,  using  the data  for  the period  1960-2000. They use  variance decomposition analysis to obtain an idea of out-of-sample causal relationships, as the Granger causality test should  be  carried  out  of  within-sample  causality.   

They  demonstrate  that tourism leads to  economic  growth  of  Sri    Kreishan  (2010)  also  proves  that  tourism expansion acts as an engine of economic growth with the Jordanian annual time series data for the period of  1970-2009.  His  Granger  causality  test  reveals  the  presence  of  unidirectional causality of tourism  earnings  to  economic. 

 He  justifies  the  results  that  Jordanian government gives more  attention  on  the  development  of  tourism  industry  in  a  way  of developing four major strategies: namely, strengthening tourism-based (a) product, (b) market, (c) human resources and (d) institutional support. Brida et al. (2010) empirically support to the tourism-led growth hypothesis.

In conclusion, the above studies suggest that effective economic policies can promote  tourism  industry,  which  becomes  a  potential  source  of  the  economic growth in a nation. Moreover, a number  of  the  empirical  studies  demonstrate  different  results  regarding  the relationship between tourism  earnings  and  economic.   

In  general,  there  are  three different perspectives of such relationship. Some studies, like Wickramasinghe and Ihalanayake (2006), Kreishan (2010),  and  Brida  et    (2010),  argue  that  tourism  earnings  stimulate economic growth.

The main theoretical base for their argument has hypothesized a tourism -led growth, e., the  existence  of  several  theoretical  arguments,  for which  the  tourism  becomes  a main determinant of long-term  economic   

All  these  studies  endorse  that  the  tourism enhances directly the national  aggregate demand,  employability,  and  income generation,  and produces positive impacts on  other  related economic  activities.   

In  a broader  sense, tourism brings foreign exchange for a  nation that  helps  producing more goods and services  in the country that leads to economic growth. Wickramasinghe and Ihalanayake (2006) study the causal  relationship of tourism to economic growth in the Sri Lankan context,  using  the data  for  the period  1960-2000.

They use  variance decomposition analysis to obtain an idea of out-of-sample causal relationships, as the Granger- causality test should  be  carried  out  of  within-sample  causality.   

They  demonstrate  that tourism leads to  economic  growth  of  Sri    Kreishan  (2010)  also  proves  that  tourism expansion acts as an engine of economic growth with the Jordanian annual time series data for the period of  1970-2009.  His  Granger  causality  test  reveals  the  presence  of  unidirectional causality of tourism  earnings  to  economic. 

He  justifies  the  results  that  Jordanian government gives more  attention  on  the  development  of  tourism  industry  in  a  way  of developing four major strategies: namely, strengthening tourism-based (a) product, (b) market, (c) human resources and (d) institutional support.

Brida et al. (2010) empirically support to the tourism-led growth hypothesis. In conclusion, the above studies suggest that effective economic policies can promote  tourism  industry,  which  becomes  a  potential  source  of  the  economic growth in a nation.

According to the statistics, by World Travel and Tourism Council (WTTC, 2016) global impact of Hospitality, Travel and Tourism to Gross Domestic Products is significant and it is wealth investing in the said industry. Malawi in specific accounted for over 7.3 percent or over K170 billion to the economy in 2016. Furthermore, the industry has created direct and indirect jobs to the economy.

The Malawi Government therefore recognizes such contributions and contemplates substituting the pugnacious o industries to aid revenue generating activities. The government continues planning by considering some steps that will ensure boosting the growth of international and domestic tourism to the country.

The destination currently works entirely through tour and travel dealers to enhance and maximize returns from the sector particularly in sporting, healthy and cultural tourism industry which are one of the fastest-growing areas of tourism in the country

(M. Riley, A. Ladkin, E. Szivas 2002). However, the challenge occurs where educational institutions pay little attention to curricula, learning and instructional materials (Western Australia Tourism Commission, 2007).

The educational institutions are supposed to bring about knowledge change. However, the hospitality and tourism industry is characterized with the small and undeveloped institution, for example, the Malawi Institute of Tourism which offers diplomas to its students.

Some higher learning institutions such as Mzuzu University, Blantyre International University have no enough and up to date equipment and personnel to deliver the course. This significantly portrays a picture that the human resources are mainly diplomats as opposed to first degree or postgraduate qualifications.

Riley, A. Ladkin, E. Szivas (2002) argues that labour shortage poses to a critical factor in hospitality and tourism industry (Management Science and Engineering 2009). A survey conducted by Malawi Institute of Tourism (2010) surprised the organization.

The tracer study showed that of all students about 5000 on 26% of the total was still in the industry as 74% joined other industries and some traveled abroad.

The suggested reasons have been the low salaries. The second reason has been little career growth. The third reason was the easy penetration by secondary dropouts. This has accumulatively contributed to poor service quality delivery.

The other challenge is advanced technologies in both hospitality and tourism industry (SeyedMortezaBagherifard 2013). This type of challenge encompasses the reservation system. The number of reservations made via the Internet continues to increase.

Many lines of phones increase chances for the hotel guests to press for an order for room services and guests check out. It is further entails that technologies enable hotels extract customer data from the system. It is also evidenced that technologies enables sales and marketing activities be performed effectively

According to The Organisation for Economic Co-operation and Development (2006) Tourism industry heavily depends upon the progress of the national economy. The lending rates, inflation, fiscal discipline and exchange rates are some of the key issues in defining economic strength.

Malawi has for four years demonstrated weaker economic stand. The exchange rate has been varying, interest rates rocketing and inflation though seems stable but is at a higher rate. All these economic challenges pose a great obstacle in as far as tourism development is concerned (TioneKaonga 2013).

Recently, researchers’ attention has been by the hospitality industry caught, which is one of the fastest growing industries in the world. Hospitality service industry has great potential for encouraging growth of the economy, increase in the number of new jobs, and improvement of the social environment.

The hospitality often identified as a part of the tourism or considered as one of tourism types.

However, authors mostly separate these into concepts because the tourism without the hospitality is impossible practically. The hospitality is one of the branches of the longest living service industries. In the Oxford English Dictionary, the hospitality is defined as friendly and generous reception and entertainment of the guests, visitors

(Barrows et al., 2012). According to Walker (2013), the hospitality concept is from the old French language known and means “taking the care and shelter giving to the travelers”, hence provides the service; and was known in the ancient civilizations already.

The hospitality and hospitality industry concepts are changing rapidly because of changing environment and customer mobility (Crick, Spencer, 2011).

Furthermore, according to Kandampully et al. (2014), the hospitality industry relates to the specific services provided the service industry, which services are vitally for everyone.

Authors also note that the most important aspect in this industry within service providing is the interaction between the employee and the customer, what must be based on the emotional proposal, which requires an emotional connection with customers, warmth and generosity.

Furthermore, it is considered as one of the top and fastest growing sectors which can significantly contribute to a country’s economic growth in Kumba Municipality as posted by (Osman & Zentosa, 2013;).

Notwithstanding, with the other major sectors of the economy not performing well in Kumba Municipality, the tourism industry has emerged as the biggest contributor of the GDP since the early 1980s in most part in Kumba Cameroon, other African countries and is viewed as the panacea of the African economies and even the world as a whole said by (Gauci, Gerosa, & Mwalwanda, 2002).

In a nutshell, this does not go undetected by governments and the private sector in Kumba Municipality.

Furthermore, Kumba Municipality has inevitably transformed over the years since its creation, and some of the issues that faced the hospitality and tourism industry are also getting changed with time because of rapid development.

It is worth nothing that hospitality and tourism operators demand for viral change from one managerial strategy to more confined change in this modern era given the opportunities in this driven stage (Seyed Morteza Bagherifard, 2013).

Nevertheless, most industry experiences changes in large demographic fluctuations with the impact of viral innovation which involve changes in travel configurations and unpredictable financial situations as Kumba Municipality may be the case with growing demand force on hospitality and tourism that involve many stakeholders to upgrade the current promotions and industry strategies using management criteria in Kumba municipality and other part in Africa as a whole.

More newly, health and safety issues such as pandemics and global security concerns have increased the urgency for industry action (Tione Kaonga 2013).  

STATEMENT OF THE PROBLEM

Despite that, the study sought to elaborate on the effect of to Hospitality Industry as an Agent of Tourist Attraction and Economic Development in Kumba municipality. These tourist attractions face a lot of difficulties such lack of facilities which can constantly attract tourists, poor level technology, rapid competition around Kumba vicinity, retain quality work force, shortage of skilled employees.

The hotel faces a lot of competition from its opponents which is a big challenge. All these problems makes it difficult for the hospitality industry to really move well and this is really a problem on tourism development in the Kumba municipality.

RESEARCH QUESTIONS

The main research hypothesis is thus “what is the effect of Hospitality Industry as an Agent of Tourist Attraction and Economic Development in Kumba. Other specific research questions that guide this work are:

• What are the different services within the hospitality industry in Kumba?
• How do these services affect tourist attractions in Kumba municipality?
• What is the impact of hotels on tourist attractions towards economic development in Kumba?
• What are the challenges faced by hospitality industry as agents of tourist attraction in Kumba.

RESEARCH OBJECTIVES

The main objective of the study is to examine the potentials of hospitality industry as an agent of tourist attractions and in Kumba.

Other specific research objectives that guide this work are:

• To identify the different services within the hospitality industry in Kumba
• To examine the impact of tourist attractions towards economic development in Kumba.
• To assess how these can serve as agents for tourist attractions in Kumba.
• To analyze the challenges facing the hospitality industry as agents of tourist attraction in Kumba.
• To propose solutions or recommendation towards the enhancement of tourist attractions and economic development in Kumba.