ROLE OF CULTURE IN DEVELOPMENT OF TOURISM IN NAROK COUNTY

CHAPTER ONE

INTRODUCTION

1.0 Overview

This chapter provides a description of background of the study, statement of the problem,
research objectives, research questions, significance of the study, limitation of the study and
scope of the study.

1.1 Background of the Study

Culture is a crucial "power factor" affecting guests' main travel decisions to specific
locations in different parts of the world (Liu, 2014). As a result, social attractions have
become an important aspect of tourism development in many regions of the world,
particularly in Europe and North America (Buhalis, 2010). Culturally relevant tourist sites are
often seen as emblems of a thriving global cultural explosion that raises awareness of cultural
variety among people from all walks of life and serves as the foundation for tourist attractions
around the world (Richards, 2011).

One of the fastest expanding industries of the world economy is tourism. International
tourism has been growing practically nonstop since the 1950s, nearly doubling in the
previous decade, and tourism holds special promise for developing countries due to its rapid
growth. in the world's growing areas and developing countries than in the rest of the world
(UNWTO, 2015). In 2013, international tourism increased by 5%, bringing the total number
of international tourists to a new high of 1,087 million (UNWTO, 2016). In 2016, foreign
tourist arrivals reached a new high of 1.2 billion, representing a 46 million increase in
overnight tourists from 2015. (UNWTO, 2017). Global tourist arrivals increased by 6% in the
January-April 2017 period compared with the same period in 2016, with business confidence
hitting a decade high (OMT, 2017).

Culture and tourism have a generally lucrative relationship that can support the
competitiveness and attractiveness of regions and countries (Rumberger & Rotermund,
2012). Culture is slowly becoming an essential component of tourism, further making
congested global markets unique in regions such as Kenya, Botswana, Ethiopia and Egypt
(Bond, 2014). Tourism provides the essential means for cultural enhancement and income
generation, consolidation and enhancement of cultural heritage, and social and creative
creation (Dwyer & Kim, 2013). Establishing strong links between tourism and culture, which
can thus help destinations become competitive and attractive as areas to live, visit, work and
invest or as resources (Akama, 2012). The development of tourism in Africa in general and
the development of cultural tourism in particular is in its infancy.

Overall, in Africa, the development of tourism as well as the specific improvement of cultural
tourism is in its infancy (Vesley, 2014). However, there is a large disparity in the level of
tourism development among the 53 African countries. Even so, there is an unusual gap in the
level of tourism progress among the 53 African countries. In the tourism development
spectrum, a well-established tourism sector is found in countries such as Kenya (East),
Morocco and Tunisia (North), Côte d'Ivoire and Senegal (West), Mauritius and Seychelles
(India) Ocean) and South Africa. and Zimbabwe (South) of mainland Africa (which are
success stories in Africa). At the same time, other states, including Cameroon, Nigeria,
Angola, Sierra Leone and Eritrea, due to insecurity, lack of infrastructure and inadequate
tourism marketing, have limited the growth of tourism, but compared with other countries,
they have impressive potential for future tourism improvement (Dieke, 2010).

Tourism continues to have a significant impact in the contemporary world, including in

developing countries such as Kenya, which is recognized as one of the most developed tourist
destinations in sub-Saharan Africa (Sindiga 2021: 59). ;Weaver 2021: 801). Covering a
territory of 582,646 square kilometers (Maxon & Ofcansky 2010 1; Sindiga 2021), Kenya has
a richly diverse ecological landscape and great beauty, and is home to diverse ethnic
communities with a rich heritage. rich produce. Heritage is any material (physical) or
intangible (intangible), natural or cultural resource that is passed on from generation to
generation in a society. Kenya's legacy has been accumulated over millions of years. As the
cradle of humanity, Africa has some of the earliest human settlements, producing the earliest
evidence of people and tools (Abungu 2015), which are indispensable forerunners to capture.
human adaptation technology. Among the natural heritages are material elements such as
mountains, oceans, lakes, rivers, sandy beaches, biodiversity (plants and animals), climate
and other gifts of nature. Cultural heritage resources, on the other hand, include historical
monuments and sites, ethnographic resources, arts and crafts, religious centers, traditions and
festivals (Okpoko 2010: 130; Seba 2017). Kenya's mobility and real estate resources serve as
a central base for development initiatives and a source of tourist attraction for the country.
Indeed, heritage is considered the lifeblood of much of the tourism industry (Boniface &
Fowler 2013:xi; Johnson 2012:2) and to appreciate and utilize cultural resources, tourists
must possess cultural capital. (Bourdieu 1984; Richards 2016).

In recent years, tourism has become important in the development of developing countries.
This is mainly because it is considered a panacea for many problems: it promotes
employment; it provides much-needed foreign exchange and can also help conserve natural
and cultural resources (Whelan 2011). However, it is often argued that international tourism
is controlled by European-American entrepreneurs and that the benefits to local communities
in developing countries are minimal (Middleton 2012). For example, in Kenya, the
participation of local communities in the tourism industry is negligible. Most hotels and tour
operators are owned and controlled by foreign investors. As a result, the distribution of
benefits from domestic tourism favors multinational corporations (MNCs). In addition,
foreign tour operators tend to emphasize domestic wildlife and overseas beach tourism to the
detriment of cultural tourism. This happened despite the fact that Kenya, like many other
African countries, has a lot of potential for cultural tourism. Its rich and diverse indigenous
culture can be developed into an important and sustainable tourism product. This will help
diversify tourism products in Kenya and redistribute profits from the lucrative tourism
industry.

The impact of tourism on cultural heritage is unclear. Lack of information on the subject
which has been the subject of major political debates and polemics. Existing literature tends
to paint a negative picture of the impact of tourism on culture. It has been argued that tourism
leads to increased crime, lower morals and cultural homogeneity. Indeed, this subject has
many “gray” areas to be explored (Rajotte & Crocombe 1980, Brown 2018). This article
attempts to clear up some of the gray areas. The article critically evaluates the contribution of
international tourism to the preservation of cultural heritage in Kenya. This involves
assessing the impacts of international tourism on cultural heritage. Although this article
emphasizes Kenya, questions raised regarding the impact of international tourism on culture
have some relevance for other regions of the world such as Asia-Thailand. Binh Duong, the
Caribbean and 'Latin America. Since Kenya became a top tourist destination in Africa in the
1970s, it has come under increasing pressure from Westernization. The way in which local
communities like Maasai have influenced and responded to the effects of Westernization
provides useful lessons for tourist destinations in other parts of the developing world.

Although the article emphasizes Kenya, the questions raised regarding the impact of
international tourism on culture have some relevance to other regions of the world such as
Asia-Pacific. , the Caribbean and Latin America. Since Kenya became a top tourist
destination in Africa in the 1970s, it has come under increasing pressure from
Westernization. The way in which local communities like Maasai have influenced and
responded to the effects of Westernization provides useful lessons for tourist destinations in
other parts of the developing world.

1.2 Research Problem

The tourism industry faces challenges such as a Creative Cultural Economy, which involves
both heritage and existing community creativity that is not officially recognized and taken
into account and is not supported or promoted. as potential for foreign exchange earnings, job
creation and economic and technical growth (Mutinda, 2014). This has led to the decline of
handicraft production in the cultural industry and especially in Narok County, which has been
a setback for the tourism industry in the past two decades. So, here are some of the challenges
that hinder the development of cultural tourism in Narok County. Therefore, cultural
industries have insufficient complementary cultural activities to be used as cultural centers.
GOK (2013) also notes that rich and diverse indigenous cultural products are still exploited
for tourism purposes. This is happening because the craft-oriented creative and cultural
industry in Narok County has great potential to improve the livelihoods of the people
involved in the production, as most of the artists have worked in the industry. industry for
more than 20 years, which has supported them and their families (UNESCO, 2012). The
Government of Kenya is also at the forefront of realizing Vision 2030 by providing a
premium, diverse and exceptional visitor experience that few competitors can offer (Kenya,
2017). Therefore, it is necessary to study whether the cultural resources of Narok County
have the potential for the sustainable development of cultural tourism and to provide more in-
depth advice on the strategies that should be put in place to ensure the sustainable
development of cultural tourism. sustainable management of cultural tourist attractions.
resources. It is against these that the researcher seeks to investigate role of culture in
development of tourism in Narok County
1.3 Research Objective

The objective of this study will be to establish the role of culture in development of tourism
in Narok County.

1.3.1 Objectives of the study

i. To determine the effects of marketability on development of tourism in Narok

County
ii. To evaluate the effects of infrastructure of tourism facilities on development of
tourism in Narok County
iii. To determine effects of quality of service on development of tourism in Narok
County
iv. To evaluate the effects of revenue generation on development of tourism in Narok
County

1.4 Research questions

i. What are the effects of marketability on development of tourism in Narok

County?
ii. What are the effects of infrastructure of tourism facilities on development of
tourism in Narok County?
iii. What are the effects of quality of service on development of tourism in Narok
County?
iv. What are the effects of revenue generation on development of tourism in Narok
County?

1.5 Significance of the Study

The tourism industry faces challenges such as a Creative Cultural Economy, which involves
both heritage and existing community creativity that is not officially recognized and taken
into account and is not supported or promoted. as potential for foreign exchange earnings, job
creation and economic and technical growth (Mutinda, 2014). This has led to the decline of
handicraft production in the cultural industry and especially in Narok County, which has been
a setback for the tourism industry in the past two decades. So, here are some of the challenges
that hinder the development of cultural tourism in Narok County. Therefore, cultural
industries have insufficient complementary cultural activities to be used as cultural centers.
GOK (2013) also notes that rich and diverse indigenous cultural products are still exploited
for tourism purposes. This is happening because the craft-oriented creative and cultural
industry in Narok County has great potential to improve the livelihoods of the people
involved in the production, as most of the artists have worked in the industry. industry for
more than 20 years, which has supported them and their families (UNESCO, 2012). The
Government of Kenya is also at the forefront of realizing Vision 2030 by providing a
premium, diverse and exceptional visitor experience that few competitors can offer (Kenya,
2017). Therefore, it is necessary to study whether the cultural resources of Narok County
have the potential for the sustainable development of cultural tourism and to provide more in-
depth advice on the strategies that should be put in place to ensure the sustainable
development of cultural tourism. sustainable management of cultural tourist attractions.
resources.

1.6 Limitation of the Study

A number of constraints may be discovered as the research progresses, but they will have no
bearing on the projected outcome. The area's topographical/geographic dispersion will be the
first constraint. The researcher will be required to travel and, in some situations, send the
surveys by email; this may cause delays in getting responses because emails will not be
responded to within the required time frame, necessitating the researcher's actual presence.
The researcher's data gathering instrument and procedures may also be difficult to implement.
The survey questionnaires will be a structured self-report and self-administered tool that will
be dependent on the respondent’s integrity. The surveys will be totally subjective in nature, as
they will be based on a survey of the respondents' perceptions. These flaws will be addressed
by engaging a research assistant to assist with the administration of data collection
instruments and the open responses from interviews, which will reduce subjectivity.

1.7 Scope of the Study

The study will be carried out at Narok County and will target a population of 50. The
researcher will use 50 respondents as the sample size and census as the sampling technique.
The study will be carried out between the months Sept-Nov 2021.
 2.2.1 Effects of marketability on development of tourism
Tourism is a social phenomenon involving people's motion to and from locations away from
their usual environments and daily routines. Across the globe, tourism plays a significant role
in the development of economies (Amoah & Amoah, 2021). In this view, many nations have
created policies, structures and support for the tourism industry as a means of improving the
gross national product and its payment balance (Chigora & Hoque, 2018). In addition,
tourism is considered a significant economic force that provides jobs, foreign exchange,
income and tax income for any nation (Mwinuka, 2017). As the tourism industry continues to
develop, the marketing of tourism institutions is becoming increasingly crucial globally
(Nqosa et al, 2021). Tourism and hospitality, whether it be a service or product, can differ
from many other types of existing services and products. This is due to the role played in the
positioning phase by the expanded marketing services mix components (Getahun &
Dhaliwal, 2017). Due to market globalization and increased competition, global tourism
businesses are currently facing fast changes (Ratten & Rodoula, 2010). Thus, in order to stay
competitive, tourism organizations should be conscious of the requirements and desires of
their customers, be conscious of their requirements, make their prospective tourists aware of
their services and persuade them through efficient marketing strategies for tourism.

Based on the above, the study problem lies in the reality of the tourist environment in the
Iraqi Kurdistan Region that faces internal and external challenges that affect their competitive
capabilities. This study is an attempt to analyze the relationship between study variables and
to present various concepts and ideas about study variables, namely tourism marketing and
competitive capabilities. It is especially the tourism sector which needs to continuously
develop the capabilities through relying on efficient and effective management to identify the
marketing needs of development plans and marketing projects in order to stay competitive in
the tourism sector. The main objective of this study was to examine the impact of tourism
marketing on enhancing the hotels competitive capabilities in Iraqi Kurdistan Region Erbil
city. This objective can be achieved by building a conceptual framework for both tourism
marketing and enhancing competitive capabilities. Furthermore, by formulating this within a
theoretical philosophical framework it is possible to offer an explanation of the nature of the
impact between study variables.
The importance of this study lies in the interest of many researchers in the field of marketing
on this subject. This is due to it being closely related to the desires and needs of tourists and
the competitive capabilities of hotels. Through the provision of their services, the right
decisions in the field of marketing tourism can be achieved. Therefore, improving the hotels
performance can lead to higher customer satisfaction within the tourism sector.

Marketing according to the American Marketing Association (AMA) is a method of

generating, distributing, supporting and pricing products, services and thoughts to promote
customer-friendly exchange and establish and sustain positive interactions with stakeholders
in a vibrant setting (Mudzanani, 2017). Marketing is a core management function for any
business. It defines unmet requirements, defines which target markets the organization can
best serve, and involves choices on suitable products and services to serve the markets
selected ( Nicolaides, 2018;Thwala, & Slabbert, 2018). In general, tourism marketing is part
of marketing and follows the same principles of marketing. However, what distinguishes
tourism marketing is that it is similar to service marketing. The characteristics of the product
gives marketers certain limitations as well as specific directions for the difference between
the tourism market and other markets.

Kotler and Armstrong (2007) defined tourism marketing as the process by which the needs of
tourists can be balanced against the objectives of a tourist organization or region. Tourism
marketing is an activity that tourism institutions do to innovate, communicate, deliver and
share offers that have added value to customers, partners and the relentless community
(Pomering et al, 2011). Tourism marketing activities focus primarily on tourism products or
services and their development and reasonable pricing policies to control the quantities of
tourism between peak and recession seasons, a distribution channel to target markets, and the
development of the tourism services package by integrating the total tourism services (Hong,
2008). In this regard, tourism marketing is an administrative and technical activity carried out
by tourist organizations and establishments inside and outside the country to identify the
potential and anticipated tourist markets in order to develop and increase the tourist traffic. In
addition, it is to achieve compatibility between the tourism product and the desires and
motives of different market beneficiaries. The tourism marketing mix is includes four
elements (product/service, price, place and promotion) to suit customers' needs and desires.
This represents the traditional approach that has been developed in line with the marketing of
services and products. The modified tourism marketing mix emerged to include seven
elements: tourist product, tourism product pricing, tourism placement/distribution, tourism
promotion, people/ individuals, process of service delivery, and customer service (Joseph,
1996). Nicolaides (2018) posits that sales and marketing must be honest at all times and
professional when dealing with customers, competitors, regulatory bodies and employees.
Marketers must strive to behave honestly, and depict products correctly and always adhere to
the company policies and code of ethics, laws and regulations. Ethically managed hotels are
those that show deference to the rights of all stakeholders while not weakening business
value.

The tourism marketing mix is a set of marketing activities, which work with consistency and
complement each other. Firstly, the product offered to the market is analyzed. Then the
appropriate and competitive price is determined which leads to the promotion of the product.
The next step, is the distribution and delivery of the product to the place at the right time in
order to satisfy the consumer. It is crucial that the needs and desires of the consumer at met to
the highest possible level as this is reflected in the justification for the existence of the
organization. There is an agreement between the researchers on a set of elements of the
tourism marketing mix that the tourist organization can rely on in marketing its tourism
products to attract tourists which is described in the following section.

Product has been defined as anything that can be given to a market for attention, purchase or
use to fulfill a desire/need (George, 2014). It represents the first element of the tourism
marketing mix, it is a mixture of natural conditions (geographical, environmental, climatic)
and human components (religious, cultural or archaeological) in addition to tourism services
and facilities such as basic public facilities (transport, hotels, restaurants etc.). The tourism
product is the beating heart of the marketing activity, which is a set of elements that the
country has as important tourist attractions to rely on in attracting foreign tourism demand
(Dolan, 2002). However, with extra products and services like lunch, swimming pool,
excellent place, star grading and more, the tourist product can become more appealing. How
these products and services are packaged in marketing materials and the need for efficient
understanding and abilities is crucial (Thwala, & Slabbert, 2018).

Price concerns the price customers are prepared to pay for the fulfillment of the need and the
sum that the company is prepared to receive to satisfy the need (George, 2014). Kotler and
Armstrong (2007) defined the price as the sum of all the values (money) that the consumer
exchanges for interest, possession or use of the product. Pricing is one of the most effective
and important elements of the marketing mix, as it is the only variable that generates income
(Palmer, 2001). Hotel pricing is not controlled, but based on offered services. But this is the
owner's choice. Pricing directly contributes to tourists ' decision whether or not to use the
hotels (Thwala, & Slabbert, 2018).

Promotion means that efforts are being made in various media and communication to clarify
the tourism picture of the state, highlighting it in front of the prospective tourist beneficiary to
attract his attention to visit the state and buy the tourism product (Dolan, 2002). Tourism
promotion provides the tourist with information about the tourist organization and the
program they offer as well as the proper scientific promotion to encourage tourists to contract
one of the tourism programs provided by the organization. Promotion is vital to successful
marketing of a tourism product. It is necessary to reach customers as customers are removed
from the product in terms of time and space; needs of uninformed consumers cannot be fully
satisfied; consumers need to learn about fresh products or services, fresh and current channels
for current products and services (Arnett & Witmann, 2014).

This is considered one of the most important decisions made by the tourism marketing
department in the tourist establishments which ultimately affect its success or failure in the
tourist flows to the tourist destination area (Kotler & Armstrong, 2007). Distribution channels
are used to make tourism products available and accessible to prospective tourists. Therefore
this refers to how the product reaches the clients and is concerned with transmitting the
product to the target market to satisfy the needs of the consumer (George, 2014). The
industry of tourism is unable to comply with one distribution scheme and this may even never
be possible or viable. However, new technology enables prospective tourists to see for
example, a guesthouse, on social media sites, bringing the product nearer to the tourist
(Thwala, & Slabbert, 2018).

This refers to individuals involved in providing services to customers directly or indirectly

and who have a significant impact on the extent to which customers accept the service (Sadq
et al, 2016). The factors that affect the quality of the service delivery depend on the level of
training and skills employees have gained, personal behavior, discretion in the provision of
services, and the satisfaction of consumers by providing the service to them (Mohammad,
2015, 74). Individuals in marketing tourism services is of equal importance to the importance
to the four marketing elements mentioned above and tourism is one of the most successful
fields that depend on manpower (individuals) and its ability to provide tourism services
properly (Bovee et al, 2005).

This aspect relates to the stages and the way in which the service is provided and is very
important to the service organization, and the process of providing the service includes all the
procedures, methods, policies and methods used by the service provider to ensure the service
to the beneficiaries (Cranfield, 2000). It is the system that helps the organization to flow
activities and services delivered to customers and helps customers in the comparison of
services and different products which contribute towards the final decision of the purchase
(Nouri & Soltani, 2015). This process also includes the stages of sale, use of computerized
information, validity of the employees work, the degree of customer participation, the flow of
information and information systems, reservations and waiting time. All of which are
concerns of management to make tourism production efficient and acceptable.

This factor refers to the environment in which service or production of physical goods is
provided and that facilitates the organization's performance and communication (Nouri &
Soltani, 2015). There are many factors which ensure customer service as an important
component of the marketing mix in services. Due to the customers many demands, a
substantial amount of importance is given to the opinion of customers. In order for
organizations to retain strong competition amongst other organizations, it must provide a
strong competitive feature in the market to satisfy customers, gain their trust and increase
strong relationships with them (Palmer, 2001). The huge costs and time spent related to legal
actions must be avoided at all costs so no hotel for example should need to face any litigation
based on unethical practices such as false marketing. This is why it is crucial that they at the
beginning spread ethics and morally appropriate marketing (Nicolaides, 2018).

The markets in which organizations currently operate are highly complex and competitive,
resulting in many challenges that to adapt to, recognize and analyze the competitive
dimension in the markets in which they operate (Mirkhan et al, 2017). The concept of
competitive capabilities reflects the organization's ability to carry out a specific activity or
group of activities. The source of this potential is the skills, knowledge and functional
experience of the staff of those organizations (Johnson & Schooles, 1996). Competitive
capabilities are the ability of the Company to deploy and invest its resources in a manner that
achieves its objectives and leads to the achievement of the organization's objectives, which
constitute the core and non-core capabilities (Hit et al, 2001). Kay (1993) argues that
outstanding capability becomes a competitive advantage when applied in an industry or
introduced to the market. Newbert (2008) states that when the company owns and exploits its
valuable and rare resources and capabilities, it will achieve a competitive advantage.
Competitive advantage is then the capacity of the organization to formulate and execute
policies to improve the position of the organization against other organizations operating in
the same activity (Sadq et al, 2018).

Porter (1985) asserts that competitiveness arises when an organization can create a
competitive advantage for its customers, which is in the form of prices lower than other
competitors with equal benefits, or better benefits from products offered by other
competitors. In other words, it can be said that competitive capabilities can be defined as how
an institution uses certain measures and procedures that differentiate it from its competitors
and achieve superiority and excellence. It is the ability of an organization to compete with
other organizations in the same market for the same goods and services, and to achieve
competencies equal or superior to those of competitors. Competitive capabilities rely on the
capacity of the public and private sector to provide services and add or generate value for
tourist experiences (Hossain, & Islam, 2021). Tourism destinations' relative competitive
capabilities and attractiveness influence their success in worldwide markets. Thus, tourists
use facts obtained from sources to create a perception of the destination in their minds before
they travel, and this is referred to as the destination image (Ramukumba, 2021).

2.2.2 Effects of infrastructure of tourism facilities on development of tourism

Tourism plays a vital role in the economic growth of many countries, contributing to the
development of related services and infrastructure. Thus, the development of tourism affects
the progress and prosperity of the national economy (Sinclair 1998). International tourists
bring foreign currencies to destination countries, increase residents’ incomes, create jobs,
improve living standards, and contribute to expanding and strengthening international
economic relations. Tourism development has become an important goal for most
governments, especially in developing countries. Therefore, studying and proposing policies
to develop tourism has become an issue of interest to both governments and researchers in
recent years.

According to Boers and Cottrell (2007), the demands of tourists in the 21st century are very
specialized and varied, so tourists are not simply satisfied with conventional travel
experiences. To meet the unique and diverse demands of tourists, Dujmovic and Vitasovic
(2014) argue that it is important to develop new tourism products and destinations, providing
tourists with more sources of inspirational experience. Matias et al. (2007) point out that
factors driving tourism’s growth and development have been identified and improved,
including improved income and wealth, improved traffic, changes in lifestyles and
consumption values, entertainment space, international globalization, immigration, special
events, education, information and communications technology, marketing, promotion of
tourist destinations, infrastructure in general, and tourism infrastructure in particular.
Therefore, it can be said that improving tourism infrastructure to increase the attractiveness of
the destination is an essential factor in attracting tourists. The studies of Tribe (2004), Naudé
and Saayman (2005), and Seetanah et al. (2011) point out that a country’s infrastructure
determines its potential attractiveness as a tourist destination.

Furthermore, recent studies have shown that tourism infrastructure has a positive impact both
directly and indirectly on the quality of life of residents through sustainable tourism
development (Mamirkulova et al. 2020). Therefore, there have been studies related to tourism
infrastructure, although this issue is not always entirely the focus of research, such as those
considering the role of infrastructure in tourism development (Prideaux 2000; Jo- vanovic´
and Ilic´ 2016), infrastructure impact on tourism development (Seetanah et al. 2011; Yu
2016), the relationship between infrastructure and tourism (Suleiman and Albiman 2014;
Mandic´ et al. 2018), the impact of transport infrastructure on tourism development
(Khadaroo and Seetanah 2007a, 2007b, 2008; Seetanah and Khadaroo 2009; Ouariti and
Jebrane 2020), relationship between tourism infrastructure and international visitor flows
(Lim et al. 2021), and the relationship between foreign direct investment and tourism
development (Selvanathan et al. 2012; Khoshnevis Yazidi et al. 2015; Samimi et al. 2017).
These studies have shown the impact of infrastructure, or some of its components, on tourism
development in various contexts. However, to the best of our knowledge, studies considering
the full impact of tourism infrastructure components such as transport infrastructure, social
infrastructure, and environmental infrastructure on attraction to tourists are rare. This is the
driving force for this study, examining the role of investment in tourism infrastructure
development and in attracting international tourists, using empirical data from Vietnam.

Vietnam is a developing country located in Southeast Asia with many historical relics and
famous landmarks, notably including eight UNESCO heritage sites. The tourism industry
plays a vital role in the development of the economy. Therefore, it is seen as a key economic
sector. According to the Vietnam National Administration of Tourism, Vietnam National
Administration of Tourism (2020), in 2021 the tourism industry directly contributed to 9.2%
of Vietnam’s GDP, including the vital role of international tourists. However, despite having
diversified and abundant tourism resources, if investment in tourism infrastructure
development is limited, Vietnam will become an unattractive tourist destination and will be
unable to compete with regional destinations such as Thailand, Malaysia, or Singapore.

This study aims to determine the impact of investment in tourism infrastructure development
on attracting international tourists. The important contribution of this paper will be a detailed
description of the different roles of investment in transport and communication infrastructure
development, the hotel and restaurant industry, and recreation facilities in attracting
international tourists, with an updated sample to 2021. Research results are expected to
contribute both theoretically and practically, providing necessary implications to attract
future tourism development investment.

Tourism is viewed as one of the fastest growing fields over recent decades, especially in
emerging and developing economies. According to Thapa (2012), although the tourism
industry has obviously grown, it is important to maintain and develop it with a sustainable
strategy for further expansion. Investment in infrastructure development, emphasizing
tourism infrastructure, is considered one of the critical factors to help achieve this goal.
Scholars and policymakers agree that infrastructure development plays a key role in
maintaining visitor arrivals and overall economic growth (Suleiman and Albiman 2014; Yu
2016). “The maintenance of local tourism infrastructure is becoming an increasingly
important prerequisite for the country’s competitiveness” (Petrova et al. 2018, p. 259).
Moreover, widespread and efficient infrastructure is an important factor in ensuring the
efficient functioning of the economy (Bookman and Bookman 2007). Conversely, weak
infrastructure can disrupt a country’s economic development and international
competitiveness (Tribe 2004; Hope 2010).

Tourism infrastructure is a type of infrastructure consisting of facilities and services

performed within a particular locality to meet the needs of local residents and specific
purposes (Goeldner and Ritchie 2009). “It is considered as the physical element that is
designed and erected to cater to visitors” (Jovanovic´ and Ilic´ 2016, p. 289). Tourism
infrastructure has the potential to increase competition and promote tourism by providing
travel facilities for tourists (Suleiman and Albiman 2014). Further, Lim et al. (2021, p. 187)
pointed out that “tourism infrastructure increases tourism demand trends”. The scope of
tourism infrastructure is wide and involves all the factors that can facilitate and promote a
destination’s tourism development (Swarbrooke and Horner 2001). In a broad sense, tourism
infrastructure encompasses all of the means that tourists use when they leave home, arrive at
their destination, and return home (Lohmann and Netto 2017).

Tourism infrastructure has long been considered a part of tourism and plays a key role in
attracting tourists. Seetanah et al. (2011, p. 92) emphasize “the role of service infrastructure
in creating product experience and shaping the overall image of a destination for tourists”.
Thus, tourism infrastructure is the basis of tourism development. Investment in tourism
infrastructure is important in increasing tourist arrivals, and contributes to visitor satisfaction
and motivation. As a component of regional tourism, tourism infrastructure is of particular
importance for long run tourism growth and the general progress of tourist destinations by
providing the required services to tourists. The apparent relationship between tourism
development and infrastructure has been confirmed in theory and practice by many authors.

The literature provides different views on the number and type of components representing
tourism infrastructure, which can be classified in many various ways. Pearce and Wu (2015)
divide tourism infrastructure into two types, namely hard and soft, which Hope (2010, p. 91)
called “social and economic infrastructure”. According to Enimola (2010, p. 121), “the social
infrastructure sub-sector covers some social services like the provision of education,
information, town and country planning, health services and other social welfare services in
the society”; while “the economic infrastructural sector embraces a group of hard-core
economic activities which relate to the production of energy and power, transportation
services, water and communication services and others” (Ayodele and Falokun 2003, p. 74).
From the model of Pearce and Wu (2015), Bagheri et al. (2018, p. 89) have shown that “to
systematize the tourism sector within the soft infrastructure, an amalgamation of diverse
factors is shaped, including hospitality, interpretation, and person-to-person encounters that
tourists experience”. According to Bagheri et al. (2018, p. 89), “Thapa (2012) has also added
professional human resources to the sub-set of soft infrastructures, emphasizing the human
factor as the most important infrastructure element in developing countries”.

Approaching the components of tourism infrastructure, Raina (2005) divides it into four
categories, namely: “1. Physical; 2. Cultural; 3. Service; 4. Governance”. Ouariti and Jebrane
(2020, p. 5) indicated that physical infrastructure includes “hotels, motels, restaurants,
transportation, communications, water, electricity”; cultural infrastructure includes “culture,
heritage, fairs and festivals, local art and music, dress and dance, language and food”; service
infrastructure includes “banking facilities, travel agencies, insurance agencies, tourist
guides”; governance infrastructure includes “law and order machinery, customs and
immigration”.

From the perspective of tourism infrastructure types, Ouariti and Jebrane (2020, p. 5) point
out that “the Tourism and Transport Forum (2012) affirms that tourism infrastructure is the
supply chain of transport infrastructure, social and environmental infrastructure collaborating
at a regional level to create an attractive tourism destination”. Among the three components
of tourism infrastructure proposed by the Tourism and Transport Forum (2012), social
infrastructure is financed mainly by the private sector, while the state mainly controls the
environmental and transport infrastructure. The state is responsible for investing directly in
the construction and development of this sector. Today, many countries that want to achieve
high business results by attracting more international tourists often focus on increasing
investment in the construction and development of tourism infrastructure.

Although scholars approach elements of tourism infrastructure from different perspectives, it

is undeniable that transport infrastructure is an important representation of tourism
infrastructure and directly impacts the tourism infrastructure that attracts visitors. Kaul (1985,
p. 496) stated that “transport plays an important role in the successful creation and
development of new attractions as well as the healthy growth of existing ones. Provision of
suitable transport has transformed dead centers of tourist interest into active and prosperous
places attracting multitudes of people”. Indeed, the transport system performs the task of
connecting areas with each other, as well as with tourist attractions, and becomes a factor in
the competitiveness of the destination. International visitors often go to destinations where
transportation systems are available and well developed. Prideaux (2000,

p. 53) argues that “if the ability of tourists to travel to preferred destinations is inhibited by
inefficiencies in the transport system there is some likelihood that they will seek alternative
destinations ”. Hence, investment in transport infrastructure development has been an issue of
concern for governments for many years.

Along with transport infrastructure, communications infrastructure also plays a vital role in
attracting tourists. Communications play an essential role in the development and
sustainability of tourism. This helps travelers obtain destination information, make informed
decisions about where to go, and helps countries and travel agencies promote and recommend
their destinations. Pearce and Wu (2015) indicate that transportation, tourism facilities, and
communications are the main components of hard infrastructure. Raina (2005) thinks that
traffic and communications are elements in the physical components of tourism
infrastructure, along with hotels, motels, and restaurants.

Many recent empirical studies have demonstrated the role of transport infrastructure and
communications in attracting tourists, resulting in transport infrastructure and
communications infrastructure proving to be important factors affecting the number of
tourists visiting (Khadaroo and Seetanah 2007b); transport infrastructure is a significant
determinant of tourism inflows into a destination (Khadaroo and Seetanah 2008), transport
capital having contributed positively to the number of tourist arrivals in both the short-run
and the long-run (Seetanah and Khadaroo 2009), the construction of transportation
infrastructure promoting the tourism industry (Yu 2016); thus, infrastructure and
transportation are important components of the tourism supply chain (Ghaderi et al. 2018);
developing transport infrastructures such as highways, airports, and railway stations, has a
positive impact on overnight stays in all types of accommodation (Ouariti and Jebrane 2020).
Furthermore, Tang (2020) argues that improving transport infrastructure is an important
component of trade facilitation and “trade facilitation has improved the efficiency of the
inbound tourism market, especially the indicator of infrastructure” Tang (2020, p. 51).

The hotel industry provides hotel services and organizes short-term accommodation rental
services at hotels, campsites, motels, student motels, and guest houses, etc., including
restaurant services. In general, the hotel industry provides accommodation and food services
for tourists. The hotel and restaurant industry is considered a major component of hospitality
and an important components of tourist infrastructure. Hospitality, especially in its
commercial incarnation as the “hotel”, has emerged as the hub, or the most vital segment, of
infrastructure facilities for the travel and tourism industry anywhere around the globe. Raina
(2005) considers that, along with transportation, hotels, motels, and restaurants are the
physical elements of tourism infrastructure. Meanwhile, the Tourism and Transport Forum
(2012) points out that hotels are a significant component of tourism’s social infrastructure
and Pearce and Wu (2015) consider them part of the hard infrastructure of tourism.
Like transportation infrastructure, the hotel industry’s role (including the restaurant industry)
in attracting tourists and developing the tourism industry is evidenced by many recent
empirical studies. It is also considered an important component in the tourism supply chain
(Ghaderi et al. 2018) and many studies have used rooms as a proxy for tourism infrastructure
(Khadaroo and Seetanah 2007b, 2008; Seetanah and Khadaroo 2009; Seetanah et al. 2011;
Lim et al. 2021).

It can be seen that recreational facilities provide attractions, sightseeing, places, and
entertainment for visitors during their trip, so is an indispensable component in the tourism
infrastructure. Mandic´ et al. (2018, p. 42) emphasized that “Recreational facilities are an
integral part of physical infrastructure which is an indispensable pillar of overall economic
and tourism development”. Mandic´ et al. (2018, p. 44) also indicate that “the development of
tourism infrastructure and recreational facilities is associated with tourism development
(UNWTO 2007; Sharpley 2009)”. Adapting the tourism infrastructure model of Jafari and
Xiao (2016), Mandic´ et al. (2018, p. 43) point out that “the physical infrastructure of direct
relevance to tourism includes recreational facilities that, along with hotels and other forms of
accommodation, spas, and restaurants, form the central tourism infrastructure”. In addition,
Raina (2005, p. 192) states that “culture and art are also considered elements of the culture
which is a component of tourism infrastructure”. Therefore, it can be seen that recreational
facilities together with transport and communication infrastructure and the restaurant and
hotel industries play a part in tourism infrastructure. Each part will promote tourism
development by creating attractiveness and enhancing the competitiveness of a destination.

According to Vanegas Sr and Croes (2000, p. 951), many qualitative factors influence
tourism consumption decisions, such as “special events, political instability, social conflicts,
air travel problems, travel restrictions, economic recession and other factors”. Typically,
dummy variables are introduced to explain the impact of special events that may temporarily
affect tourism demand. According to Lin et al. (2015, p. 39), “Greene (2008, p. 106)
proposed a dummy variable is a variable that takes the value of one for some observations to
indicate the presence of an effect or membership in a group and zero for the remaining
observations”. Song and Li (2008, p. 217), after reviewing articles on tourism demand
modeling and concluded that “researchers should develop some forecasting methods that can
accommodate unexpected events in predicting the potential impacts of these one-off events
through scenario analysis”. Therefore, it can be seen that, in addition to the quantitative
variables of investment in tourism infrastructure development, it is necessary to use dummy
variables to represent uncertain factors to consider their effects on attracting international
visitors.

2.2.3 Effects of quality of service on development of tourism

The tourism industry is one of the largest industries in the world, and despite recent events
that have made its operating environment more complex, the industry continues to grow
(Theobald, 2005). Tourism has been one of the world's fastest growing industries, and there
are large societies entirely dependent upon the visitor for their sustenance1. It sustained 120
million jobs in 1995, accounting for 7% of the global workforce. It is estimated that the
number of international travelers in 1994 will double to 1 billion by 2010, and 80% of
tourists come from the 20 richest countries (The Hutchinson Encyclopedia).
The impact of tourism is extremely varied. On one hand, it plays an important and certainly
positive role in the socio-economic and political development in destination countries by, for
instance, offering new employment opportunities. Also, in certain instances, it may contribute
to a broader cultural understanding by creating awareness, respecting the diversity of cultures
and ways of life. On the other hand, as a tool to create jobs, it has not fulfilled its
expectations. At the same time, complaints from tourist destinations concerning massive
negative impacts upon environment, culture and residents’ ways of life have given rise to a
demand for a more sustainable development in tourism2.
The influence of travel and tourism on a community is significant. Most obviously, tourists
bring revenue. However, the ways in which this revenue is attracted and the numbers of
people who reap the benefits vary greatly. So does the way the money is spent and the
manner in which it is reinvested. At one extreme, large scale, all-inclusive resorts owned and
operated by corporations may have little or no economic influence on a community. People
from the community may be offered only low-skilled minimum wage jobs. In these extreme
cases, tourism becomes a highly sanitized, in-resort experience. In effect, there are tourists
and a tourism industry, but virtually no further community involvement.
Communities are developing local tourism in innovative ways, making sure to include
various individuals and groups, small business owners, entrepreneurs, local associations and
government officials. The community tourism industry is, quite simply, the collection of local
businesses and people that create and sell a variety of goods and services to visitors.
The development of this industry is a growing phenomenon as communities respond to the
opportunities and in some cases the threats, of tourism3 (Tohidy Ardahaey and Hydarizade,
2010).
Service quality is an abstract concept, and in operationalizing it, Parasuraman, Zeithaml and
Berry (1988) have identified five dimensions of service quality. They are Tangibles
(appearance of physical facilities, personnel and materials), Reliability (dependable and
accurate performance), Responsiveness (willingness to help customers and the promptness of
service), Assurance (knowledge and courtesy of employees) and Empathy (caring and
individualized attention to customers). Although existing literature has shown the effects of
service quality on revisit intentions, few, if any, have examined the impacts of each service
quality dimensions on revisit intentions. Examining the impact of each service quality
dimension on tourists. Revisit intentions not only allows management of nature-based
tourism businesses and organizations to identify their strengths and weaknesses, but also help
them focus their limited resources on those service attributes that affect tourists’ revisit
intentions the most. The present study is concerned with the impact of service quality in
tourists' revisit and the development of tourism industry.

Taking into account the swift and continued growth, both past and foreseeable, of the tourism
activity, whether for leisure, business, culture, religious or health purposes, and its powerful
effects, both positive and negative, on the environment, the economy and the society of both
generating and receiving countries, on local communities and indigenous peoples, as well as
on international relations and trade, Aiming to promote responsible, sustainable and
universally accessible tourism in the framework of right of all persons to use their free time
for leisure pursuits or travel with respect for the choices of society of all peoples, But
convinced that the world tourism industry as a whole has much to gain by operating in an
environment that favors the market economy, private enterprise and free trade and that serves
to optimize its beneficial effects on the creation of wealth and employment.
Also firmly convinced that, provided a number of principles and a certain number of rules are
observed, responsible and sustainable tourism is by no means incompatible with the growing
liberalization of the conditions governing trade in services and under whose aegis the
enterprises of this sector operate and that it is possible to reconcile in this sector economy and
ecology, environment and development, openness to international trade and protection of
social and cultural identities.
Considering that, with such an approach, all the stakeholders in tourism development –
national, regional and local administrations, enterprises, business associations, workers in the
sector, non-governmental organizations and bodies of all kinds belonging to the tourism
industry, as well as host communities, the media and the tourists themselves, have different
albeit interdependent responsibilities in the individual and societal development of tourism
and that the formulation of their individual rights and duties will contribute to meeting this
aim5.
Tourism industry is the most cultural issue of economy. Economic experts believe that
tourism is only a part of the economy, which is greatly tied up with culture, because on one
hand it provides desirably the introduction of cultures, civilizations, races, lands, tribes and
different dialects with each other and on the other hand it can also be a resource of income for
different countries. As tourism economy is the best stimulus for the countries that have a
decreasing industry due to possessing a single product or limited sources of income, it is
becoming one of the largest economic realities for developing countries (Padash and
Esfahani, 2008).
Tourism industry is considered as one of the most important, most diverse and richest global
industries in the twenty-first century and by the end of the next decade it would lay at the top
of the table of the world's high income industries. Foreign exchange earnings in this industry
has a high added value for national economy of any country, that is why many countries
consider this growing industry as the main source of income, an opportunity for employment,
private sector growth and economic infrastructure strengthening. Especially developing
countries and communities in which other forms of economic development such as extraction
of natural resources or production of artifacts are not economically efficient and do not have
a very important role in world trade, have turned to the tourism industry more than ever
(Tohidy Ardahaey and Hydarizade, 2010).

Service quality has been defined as a gap between the customer’s expectations of a service
and the customer’s perceptions of the service received (Parasuraman et al.,1985). The
consumer satisfaction literature views these expectations as predictions about what is likely to
happen during an impending transaction, whereas the service quality literature views them as
desires or wants expressed by the consumer (Kandampully, 2002). To date, “there is no
universal, parsimonious, or all-encompassing definition or model of service quality” (Reeves
& Bednard, 1994, p. 436). Grönroos (1984) defines service quality as “the outcome of an
evaluation process where the consumer compares his expectations with the service he
perceived he has received” (p. 37).
Definitions of quality have included: a) satisfying or delighting the customer or exceeding
expectations; b) product of service features that satisfy stated or implied needs; c)
conformance to clearly specified requirements; and d) fitness for use, whereby the product
meets the customers needs and is free of deficiencies (Chelladurai & Chang, 2000). A hotel
should also establish a policy concerning complaints. This can be done by, for example,
publishing a customer service quality guarantee, which will give customers the confidence to
complain. A recovery strategy should also be put in place as fast as possible – certainly
before negative attitudes set in (Petzer et al., 2009).

The literature reveals that no generic measure of service quality for all industries has emerged
(Blose & Tankersley, 2004). Thus, service quality is generally believed to be a multi-level
construct with multiple dimensions making up each level. However, scholars have varied as
to the number of dimensions included in each model.
The service quality construct evolved out of the quality literature in manufacturing. Quality
initiatives date back to the 1920’s when manufacturers began to focus on controlling the
physical production of goods and the internal measurements of the production process
(Kandampully, 2002). The Total Quality Movement (TQM) within manufacturing slowly
faded and has given way to a new paradigm focused upon the service sector and the
customer/provider relationship. More than two thirds of American workers now reside in the
service sector (Orwig, Pearson, & Cochran, 1997). Service quality has become a great to
outcomes such as customer satisfaction (Anderson, Fornell, & Lehmann, 1994; differentiator
between companies and is one of the most powerful weapons which many leading service
organizations possess (Kandampully, 1998). Service quality has been linked Grönroos, 1984,
1990, 2001; Ko & Pastore, 2004), customer loyalty (Kandampully, 1998; Zeithaml,
Parasuraman, & Berry, 1990), value (Laroche, Ueltschy, Shuzo, & Cleveland, 2004) and
repurchase intention (Fornell, 1992).
A wide variety of service quality dimensions have been proposed (See Table 1). Most targets
of quality evaluation have emphasized: a) the physical context such as facilities; b) the
interpersonal interactions between either the client and employee or between two clients; and
c) the core service (Chelladurai & Chang, 2000). Grönroos (1984) offered a two-dimensional
model comprised of technical quality and functional quality (pp. 29-38). Lehtinen and
Lehtinen (1983) set forth a two- dimensional approach to service quality consisting of
process quality and outcome quality. Lehtinen and Lehtinen (1991) also introduced a three
dimensional approach comprised of physical quality, interactive quality, and corporate
quality (pp. 288-290). Parasuraman, Zeithaml and Berry’s (1988a) SERVQUAL model
consisted of five dimensions, which includes tangibles, reliability, responsiveness, assurance
and empathy(pp. 12-40). Rust and Oliver (1994) introduced a three-dimensional model of
service quality encompassing the service product, service delivery and service environment
(pp. 11-13). Dabholkar, et al.’s (1996) three-dimensional model included physical aspects,
reliability and personal interactions (pp. 3-16). Brady and Cronin’s (2001) three- dimensional
model of service quality consisted of interaction quality, physical environment quality and
outcome quality (pp. 34-39).
According to Baker and Crompton (2000), the literature related to quality in the tourism and
recreation field dates back to the early 1960’s (p. 785). The tourism literature has revealed
various attempts to make sense of how tourists evaluate the quality of services they receive
while on vacation (Atilgan, Akinci, & Aksoy, 2003; Baker & Crompton, 2000; Chadee &
Mattsson, 1996; Frochot, 2004; Hudson, Hudson, & Miller,2004; Vogt & Fesenmaier, 1995;
Weirmair & Fuchs, 1999), travel agency quality (Ryan& Cliff, 1997), hotel quality (Suh, Lee,
Park, & Shin, 1997) and so forth. However, as Frochot (2004) points out, “the nature of
tourism services, based as much on the sale of utilitarian services as on the provision of
service through which consumers can achieve deep-rooted needs, renders its evaluation
reasonably complex” (p. 224).
Managers in tourism strive to improve the quality of their services and the level of customer
satisfaction in the belief that this effort will create loyal visitors. Loyal visitors will return to
the destination and recommend it to others (Tian-Cole & Cromption, 2003).
Sparks and Westgate (2002) suggest that service failure can have devastating effects on an
organization because customers frequently switch to a different provider when they
experience a service failure. However, among customers who experience service problems,
those who receive satisfactory resolution are more likely to remain loyal to the service
provider (p. 214).
Pawitra and Tan (2003) use SERVQUAL in order to analyze the image of Singapore from the
perspective of tourists from Indonesia. The authors note that the use of SERVQUAL in
measuring a destination image requires that it be modified in order to ensure that the data
reflect the unique attributes provided by the destination. Tourist satisfaction can be obtained
by assessing the gap between predicted and perceived service. The destination image can be
determined by analyzing tourist perceptions (p. 399-411).
Atilgan et al. (2003) suggest that cultural characteristics have an effect on perceptions of
service quality in tourism. They found that different cultural groups can have different levels
of expectations and perceptions in terms of service-quality dimensions (p 420). Therefore,
many of the items on the SERVQUAL instrument can be salient to different customers for
different reasons. Brown and Bond III (1995) attribute the importance of these items as to
whether or not the customer is conscious of aspects such as time, quality of work, finances,
and so forth (p. 30).
A second debate within the literature pertains to the relationship between service quality and
customer satisfaction. Satisfied customers tend to be loyal to the company and more likely to
return (Greenwell et al., 2002a). Understanding satisfaction is important in the sense that
dissatisfied customers rarely complain, but rather simply purchase from another service
provider (Milbourn, 1998). Many studies have investigated the relationship between service
quality and customer loyalty (Blomer et al., 1998); (Ganesan, 2007), on the complaints
received from customers (Yavas et al., 2004). Here a complaint is seen in the light of the
customer’s request for better service and possible continued usage of the product in the near
future (Al-Rousan, 2010).
Satisfaction is most commonly described in terms of the disconfirmation approach, which
describes it as the variation between a customer’s pre-purchase expectations and post-
purchase perceptions of the actual service performed (O'Neill, 2001) The general thought is
that satisfaction mediates the relationship between perceived service quality and firm
performance (Babikas et al., 2004; Fornell, 1992; Gotlieb et al., 1994). However, some
research suggests that satisfaction is an antecedent to service quality (Bitner, 1990; Bolton &
Drew, 1991).
Considerable confusion continues to exist regarding the relationship between customer
satisfaction and service quality (Burns et al., 2003). Caruana (2000) claims that service
quality and satisfaction have often been used interchangeably. Distinctions between customer
satisfaction and service quality include: a) satisfaction is a post- experience decision customer
experience while quality is not; b) in the satisfaction literature “expectations reflect
anticipated performance” made by customers about levels of performance during a
transaction. In the service quality literature, expectations are conceptualized as a normative
stand of future wants.
According to Spreng and Mackoy (1996), there is no clear definition of satisfaction, although
most definitions would involve “an evaluative, affective or emotional response.” The
distinction between perceived service quality and satisfaction is important because managers
need to know whether their objective is to provide the maximum level of perceived service
quality or to have satisfied customers. The standard of comparison in forming satisfaction is
predictive expectations, or what the consumer believes will happen. Perceived service quality
is the result of a comparison of performance and what the consumer feels a firm should
provide (pp. 201-214).
Burns et al. (2003) describe negative disconfirmation as an occurring when performance is
less than expectations. Positive disconfirmation is evident when performance is greater than
expectations (pp. 363-380). Customer satisfaction results in the disconfirmation of prior
expectation, that is if the service provider meets or exceeds expectations then the customer is
more likely to be satisfied (Rust et al., 1995).
Millán & Esteban (2004) claim that satisfaction is perceived as the final result of all activities
carried out during the process of purchase and consumption. All reviewed definitions imply:
the existence of an objective that the consumer wishes to reach; 2) the attainment
(satisfaction) of this objective can only be judged by taking a standard ofcomparison as a
reference; and c) the evaluation process of satisfaction implies the intervention of at least two
stimuli; a result and a reference or standard of comparison. Satisfaction is related to size and
direction of “non-confirmatory: experience defined by the difference between initial
expectations of the individual and the actual result derived.” Expectations are the needs or
desires of the consumer, based on what the consumer feels should be delivered before
receiving it. Perceptions are the beliefs of the consumer relative to the service received. The
consumer’s opinion of satisfaction or dissatisfaction depends on how the consumer perceives
the actual result obtained relative to what was expected (pp. 533-546).
Much of the attention given to service quality is motivated by the premise that it will increase
customer satisfaction and ultimately lead to better financial performance (Babikas et al.,
2004). The quality of products and services has also been linked to external indicators of
customer satisfaction such as complaints, warranty, litigation and market share (Ahire &
Dreyfus, 2000). Satisfied customers often lead to loyal customers who continuously
repurchase the product or service. Depending upon the industry, Fornell (1992) contends that
not all companies are equally affected by customer satisfaction. However, all organizations
are dependent upon repeat purchases that lead to higher profitability (p. 7). Empirical
evidence suggests that customer satisfaction mediates the relationship between service quality
and firm performance (Babikas et al., 2004; Fornell, 1992; Gotlieb, Grewal, & Brown, 1994).
“Incidents of satisfaction over time result in perceptions of service quality” (Parasuraman et
al., 1988, p. 16). Some research suggests that satisfaction is an antecedent to service quality
(Bitner, 1990; Bolton & Drew, 1991). Tian-Cole and Cromption (2003) suggest that service
quality is related but not equivalent to satisfaction because perceived service quality is a
global judgment or attitude relating to the superiority of service. In contrast, satisfaction is
related to a specific transaction (p. 71).
Milbourn (1998) suggests that the economic success of companies fluctuates with the quality
of service that is offered. They report that dissatisfied customers rarely complain. Instead,
most dissatisfied customers simply purchase from another store. Across industries, service
organizations who deliver high quality service consistently receive repeat customers. More
importantly, these repeat customers account for increased profits (pp. 15-19). Depending
upon the complexity of the service, Oliver (1993) claims that a customer can experience both
negative and positive affective reactions (p. 420).
Uelschy, Laroch, Tamilia and Yannopoulos (2004) claim that measures of service quality and
satisfaction can be nonequivalent across cultures. In other words, a measure that works well
in the United States may not perform properly overseas. Across cultures, the translation,
interpretation and meaning of particular terms can introduce response bias. Thus, due to
cultural differences, one cannot assume that a citizen of one country will perceive quality in
the same way as one from a different country. Because beliefs are a part of culture, two
individuals can experience identical consumption and register differing levels of satisfaction
based on differing schematic reference points they bring to a situation (pp. 901-912).

2.2.4 Effects of revenue generation on development of tourism

The role of tourism has become recently more recognized as a potential industry that
contributes to a country’s revenue, economic growth, balance of payments, and foreign
exchange earnings. Tourism has also proven to be a growing source of revenue to the private
sectors as well as a major source of income to individuals, creating various employment
opportunities and contributing to their individual welfare. This has given governments
enough reasons to support and promote for tourism as a source of both revenue and FDI.
(Foreign direct investment)

Tourism has become a major source of export earnings to many countries in the world,
especially, The developing countries that do not have competitive advantage in a particular
industry and do not enjoy other sources of revenue such as; Natural resources like, Oil, Gas,
Gold etc..Tourism is the first or second source of export earnings in 20 of the 48 Least
Developed Countries and has been generating a steady growth in at least 10 other countries.
As such, tourism has become one of the main engines for stimulating economic activities in
many countries in the world, especially the developing ones.

This paper starts by defining the concept of tourism and discussing the determining factors
that give foundation to well-diversified foreign direct investments in the tourism sector. For
example, Public security & stability are important elements to begin with. Other elements are
related to the availability of archaeological, religious and tourism sites that would make a
country a potential place for FDI and an attractive place for international and domestic
tourism.

As more counties are recognizing the important role that tourism plays in generating revenue
to the public, private sectors and individuals, the competition across countries for tourist
spending is becoming more intense. That is why, the Secretary-General of the World Tourism
Organization said, “I am pleased to see the serious analysis of the problems and prospects of
the tourism sector as presented in this third edition of Global Tourism: The Next Decade”.
We will discuss in detail the different types of tourism including rural development tourism,
medical tourism, religious tourism etc. and their respective contribution to the revenue of the
public sector as represented by governments, the private sector represented by hotels and
hospitality management companies and other service sectors. We will also discuss the
contribution of tourism to the income and to the wellbeing of individuals who are engaged in
tourism in one capacity or the other.

The tourism industry started by 1960 and has grown rapidly during the last 50 years in terms
of the income it generates and the number of tourists who travel domestically and
internationally. Tourism has proved to be a strong source of revenue even during the
economic crisis, despite the few fluctuations in tourism that have been caused by events such
as terrorist threats as well as the SARS disease scare.In this paper, I analyse the importance of
tourism as an opportunity for diversifying a country’s earnings, an opportunity for economic
development and growth. I will also discuss how countries could promote and build a
competitive advantage in tourism to attract more visitors around the World.

We later present a real life application of the importance of tourism to the Jordanian economy
supported by a SWOT analysis and statistics from the Jordanian Ministry of Tourism. For
example, during year 2010 the total number of arrivals into Jordan grew by almost 20% over
2009 to reach 4.6 million overnight visitors (8.2 million total arrivals including one- day only
visitors). Visitors from the Americas grew by 12 per cent, Europe by 22.3 per cent, Asia-
Pacific by 25.4 per cent, while Asia scored a 31.2 per cent increase during 2010 with total
tourist receipts amounting to about 2.4 billion JD. (About 3.4 B. USD)

Tourism is an Industry that consists of a group of firms involved in marketing of service

related activities and tangible souvenirs to the end users, represented by international and
domestic Consumers. Example of such services include hotel & hospitality rooms, restaurant
meals, air tickets, therapy, guided tours, other recreational and medical services sold to
tourists and medical tourists (patientstourists who travel for health therapy/medical reasons
seeking diagnostics and hospital treatment).Tourism is an active and economically viable
industry that requires the ability to continuously adjust to customer’s changing needs and
wants, as the customer’s satisfaction, safety, and enjoyment are the main focus of the
industry.

In the 1980s, individuals questioned whether tourism was a blessing or a curse, but today, the
issue is now essentially academic, given the value of tourism as the world’s largest industry
and its role as a global employer and customer (Smith, 2001). Foreign Direct Investment
(FDI) may occur when a firm invests directly in new facilities to produce a product and/or
service in a foreign country (Hill, 1994).

Tourism has given many reasons to the developing countries, such as Jordan, Egypt, Israel,
South Africa, Jamaica, Lebanon etc. to promote Foreign Direct Investment (FDI) inflow to
their territories realizing the fact that, tourism generates major revenue to such countries that
may not have access to revenue through other types of industries or natural assets like oil, gas
or uranium. FDI, including its facets of capital investment, transfer of technology and access
to global markets, is one of the routes through which developing countries can carry out
sustainable development.

For example, in a study by Kyrkilis, Delis,& Pantelidis on FDI & the tourism industry it was
revealed that the volume of FDI inflow to China has increased tremendously as a result of the
expectation that China will be receiving 120 million tourists on annual basis by year 2020
favoring the inflow of FDI to the Tourism sector. By the end of 2020. Given the importance
of FDI in tourism in stimulating the economic activities in many countries around the world,
we should discuss below some the major determinants of FDI that can make a Country a
potential place for attracting foreign direct investments:
Infrastructure: Infrastructure plays a very important role when it comes to investing in the
tourism sector in the host country because of its inherent cost implication on the investor.
Infrastructure includes man-made establishments such as domestic and international airports,
roads, and boarder checking points in addition to transportation facilities and constructions
like power stations, dams, bridges and so on.

Location: Tourism mainly depends on strategic locations. For example, investors would look
at whether the host country can be easily accessed by air travel, by land or by sea so that it
would attract the largest number of tourists. Geographical location also includes the climate,
landscape, and terrains.

Natural Resources & Historical Attractions: The Natural attractions are God made, such as
spring water, water falls, wildlife, mountains, land features and natural landscape. While the
historical attractions are ancient man made that includes historical, archaeological and
religious places. Many host countries are excellent in their historical background and their
cultural heritage. For example, Egypt is famous for its pyramids, many tourists travel to
Egypt for ancient site seeing purposes.

Economic Status Indicators: The most important indicators are the employment rate and the
per capita income since they are important for domestic tourism and indicate the ability of
nationals to travel for leisure and the purchasing power to spend within the country.

Security: In the wake of catastrophic natural disasters and rising threats of terrorism, the hotel
industry has been hit hard by declining revenues and increasing competition.(Min, Jong Joo,
Kim 2009). There are many factors that affect whether a country is a potential place for
tourism, one of which is security. Security includes safety from natural disasters such as the
recent Japan Tsunami. It also includes the social stability and political stability status of the
host. For example, the total number of international tourists who travel to Syria has declined
tremendously in recent years due to the political and social instability in the country.
National Policies: Include the host country’s entry visa requirements and restrictions. For
example, EU and US nationals are granted entry visa upon arrival in Queen Alia International
airport in Jordan, while other nationalities are restricted and are required to have an entry
visa stamped on their passports prior to their traveling date. E.g. the nationalities of India,
Kenya, Djibouti etc. A study made by UNCTAD, found that the impact of Tourism Foreign
Direct Investment (TFDI) depends on the national policy framework in each country & the
corporate policy of investors. UNCTAD found that national policy initiatives should be
tailored to specific country needs and resources, and to their position in the tourism industry
life cycle.

Regulatory Business Laws: Important to the foreign investors such as the environmental
laws, tax law, the minimum wage and maximum law & working hours law. The Market size:
The larger the number of the population, the more economic activities available in the host
country. Nigeria, Egypt and Brazil are all good examples of this. Types of FDI in The
Tourism Industry: Foreign investments in the tourism industry vary widely depending on the
experience level and interest of the foreign investor and the host’s potential status.

The following are some of the different types foreign direct investments in tourism: Travel
Agencies: Many international travel agencies operate as foreign investment outside their
home countries to provide flight reservations, hotel bookings and tour operating services and
other travelling related services. The UNIGLOBE travels company is an example of this type
of foreign investors. Hotels: World chain hotels are established in many host countries to
provide room booking services and other recreational facilities to domestic and international
tourists. Hotels are also established to provide conference facilities such as conference rooms
and meetings arrangements to business travellers. Examples of Multinational Hotel outfits
include but not limited to the following: Marriot, Hiltons, Sheraton, Holiday Inn, Premier Inn,
Hotel Western and so on Hospitals: Large hospitals are established in host countries to
provide room bookings and medical treatment facilities to domestic and international patients
who come from different regions in the host country or from their home country for therapy
purposes and medical treatments.
International tourism is considered as part of the export industry to the home country since it
creates foreign currency revenue into the country’s economy. This leads to a favorable
balance of payments for the country. Such revenue inflow creates great benefits for business
turnover, welfare of individuals, household income, employment, private revenue etc. and
also increase in government revenue. Furthermore, part of this revenue is considered a
secondary revenue since it is re-spent within the country creating more economic activities.
For example, in some large countries such as USA and Brazil, these secondary and indirect
revenues that are generated domestically sometimes exceed the benefits from the direct
revenue bases. This will be discussed later in detail when we identify some of the other
sectors of the economy that also benefit from the tourism industry

In addition to being a major source of revenue for countries worldwide, tourism is also an
industry where long-term growth prospects are good (Ennew 2003). For example, the growth
rates in the tourism revenue have exceeded the growth rates made by most other service
sectors. According to The World Tourism Organization forecasts (year 2002), the annual
growth rate in international tourists’ arrivals in Jordan is expected to reach 4.1% by year
2020.

We should remember that tourism growth rates have not always been stable. Just like any
other economic good or service, tourism has been affected by fluctuations in quantity of
demand. For example, following the war and the crises that is taking place in Countries like
Iraq, Syria, Lebanon etc. and the worldwide SARS infections and scare of Ebola fever, the
rate of international tourists who travel to and from the USA has dropped considerably and as
low as by 11% in some cases.

The following table reflects the variations in the international tourism receipts from years
2006 to 2009 (according to UNWTO records). In table below, Europe generates more than
half of the revenue made by international tourists. For example, Spain generates the largest
revenue from international tourism among the European countries, while the USA attracts the
highest revenue among all the countries of the World with France, Italy, China and UK not
too far behind.

UNWTO International International International International

Ran Country Regional Tourism Tourism Tourism Tourism
k Market Receipts (2009) Receipts (2008) Receipts (2007) Receipts (2006)
1 United North $93.9 billion $110.0 billion $97.1 billion $85.8 billion
States America

2 Spain Europe $53.2 billion $61.6 billion $57.6 billion $51.1 billion

3 Europe $49.4 billion $55.6 billion $54.3 billion $46.3 billion

France

4 Italy Europe $40.2 billion $45.7 billion $42.7 billion $38.1 billion

5 China Asia $39.7 billion $40.8 billion $37.2 billion $33.9 billion

6 Europe $34.7 billion $40.0 billion $36.0 billion $32.8 billion

Germany

7 United Europe $30.0 billion $36.0 billion $38.6 billion $34.6 billion
Kingdom

8 Australia Oceania $25.6 billion $24.8 billion $22.3 billion $17.8 billion

9 Europe $21.3 billion $22.0 billion $18.5 billion $16.9 billion

Turkey

10 Europe $19.4 billion $21.6 billion $18.9 billion $16.6 billion

Austria

According to the UNWTO table below, the European region is the most
important region in terms of total number of international tourists’ arrival.
This region accounts for more than 50% of the total international arrivals
for year 2009.

UNWT Internatio Internatio Internatio Internati

 O nal tourist nal nal onal
Ran Count Regio arrivals tourist tourist tourist
k ry nal (2009) arrivals arrivals arrivals
Mark (2008) (2007) (2006)
et

1 Europe 74.2 79.2 million 80.9 million 77.9 million

France million

2 North 54.9 57.9 million 56.0 million 51.0 million

United Ameri million
States ca

3 Spain Europe 52.2 57.2 million 58.7 million 58.0 million

million

4 Asia 50.9 53.0 million 54.7 million 49.9 million

China million

5 Italy Europe 43.2 42.7 million 43.7 million 41.1 million

million

6 Un Europe 28.0 30.1 million 30.9 million 30.7 million

ited million
Kingd
om

7 Europe 25.5 25.0 million 22.2 million 18.9 million

Turkey million

8 Europe 24.2 24.9 million 24.4 million 23.6 million

German million
y
9 Malaysi Asia 23.6 22.1 million 21.0 million 17.5 million
a million

10 North 21.5 22.6 million 21.4 million 21.4 million

Mexico million

According to Christine Ennew’s study (2003) on Understanding the Economic Impact of

Tourism, the direct effects of tourism arises from expenditure by tourists, which
immediately generates income for businesses and households, creates employment and
revenue from taxation in the host Country. Other hidden an Indirect effects arise as initial
income received by households and the government sector, Consequently, International
and domestic tourism bring great economic benefits to the public and private sectors
alike in Countries wherein, due investments are made in the sector.

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design

According to C. Kothari (2010), study design is the overall plan for conducting the study
in order to answer research questions; the research design indicates the steps to be
followed in conducting the research. This study will adopt a descriptive study design in
which an in-depth study of members of the population will be conducted.

3.2 Study area

The study will be conducted at Narok County .
 3.3 Target Population
A population is a complete set of individuals, cases, or objects with some common
observable characteristics (Mugenda and Mugenda, 2003). The study will target all the
200 employees in Narok County . The employees will be targeted because they are the
units that make an organization perform, and hence the best basis for measuring
procurement performance. Hence it forms a significant focus for the study on the
influence of ecotourism on sustainable development of communities living adjacent
forests to Narok County

Department Target population

Production 35

Procurement 10

Human resource 20

Finance 15

Suppliers 108

ICT 12

Total 200
Source: Narok County
(2021)

3.4 Sampling and size

This study will adopt Krejcie’s and Morgan’s model to sample 132 respondents from the
target population as the units for analysis. They asserted that this method is best when the
population of interest is small and variable, a condition that would limit the
representativeness of a sample as in this case, thus its justification for the study.
Stratified Sampling technique will be used because it makes sense to partition the
population into groups based on a factor that may influence the variable that is being
measured.
Department Target Sampling Size
populati
 on
Production 35 22

Procurement 10 6
Human 20 15
resourc
e
Finance 15 10
Suppliers 108 72

ICT 12 7
Total 200 132
Source: Narok County 2021

3.5 Data collection

3.5.1 Research Instruments

The study will employ the use of questionnaire to collect data from the employees.
Questionnaire has been preferred because the study is concerned mainly with the views,
perceptions and feelings of the employees; and descriptions of their performance status,
which variables were not directly observed. Secondly, the sample size of 132 that were
used in this study is also large, and given the time constraints, questionnaires were the
ideal tool for collecting data. Further, a questionnaire is also the most suitable tool for
survey research (Oso&Onen, 2009), which is the design that will be used in this study

3.5.2 Data Collection Procedure

A total of 200 respondents will complete and return the questionnaires. However, 132
will fill and return questionnaires will be picked randomly from the bulk for analytical
purposes. This will be to each the workload associated with analyzing the heavy data
involved. The questionnaires that will be collected from the respondents were used for
the analysis.
3.6 Validity and Reliability of Instruments
Validity will be ensured through use of experts who are the supervisors at the college.
The instruments were given to the supervisors to evaluate and rate each item in relation to
the objectives, and a validity index determined from the assessors agreement. An index of
.70 is the least accepted value of validity in research (Oso&Onen, 2008).

3.7 Reliability of instruments

Reliability will be ensured through test-retest reliability technique. The instruments were
administered to a set of employees in Narok County , twice after two weeks. The
responses from the employees will then be that will be collected. The researcher then
determined the correlation index between the two sets of responses; the procedure will be
repeated until a value of at least 0.7 is attained.

3.8 Data analysis and presentation

Data that will be collected from the field will be first be condensed into few manageable
groups and tables for analysis. These categories will be drawn from the raw data through
coding, tabulation and then drawing statistical inference. The purposeful and usable
categories included; response rate of the respondents, their marital status, level of
education, age and finally analysis as per the objectives. The researcher used narrative
techniques to analyze qualitative data. Data will be presented using tables, charts and
graphs.