MEKELLE AND SOUTH EASTERN

CLUSTER TVET COLLEGE

VALUE CHAIN ANALYSIS OF TOURISM SERVICE ON CUSTOMER
SATISFACTION

RESEARCH & TECHNOLOGY TRANSFER CORE

PROCESSORS

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Contents
Chapter one.................................................................................................................................................1
1. Value chain analysis of tourism service on customer satisfaction...................................................1
1.1. GTP priority sectors.....................................................................................................................1
1.2. Introduction......................................................................................................................................2
1.3. Statement of the problem..................................................................................................................5
1.4. Research question.............................................................................................................................6
1.5. Objective..........................................................................................................................................6
1.5.1. General Objective......................................................................................................................6
1.5.2. Specific Objective......................................................................................................................7
1.6. Scope of the value chain...................................................................................................................7
1.7. Significance of the value chain.........................................................................................................7
1.8. Limitation of the study......................................................................................................................9
CHAPTER TWO.......................................................................................................................................10
2. Research Strategy and Design...........................................................................................................10
2.1. Site Selection and Description of the Study Area...........................................................................10
2.1.1. Site Selection...........................................................................................................................10
2.2. Research Strategy and Design........................................................................................................14
2.2.1. Research Strategy....................................................................................................................14
2.2.2. Research design.......................................................................................................................14
2.3 Methods of data collection...............................................................................................................14
2.4. TargetPopulation, Sampling technique and sample size.................................................................14
2.4.1. Sampling Techniques and Sample Size...................................................................................14
2.5. Data interpretation and analysis......................................................................................................15
2.6. Value chain mapping of service quality in customer satisfaction (AS IS)......................................16
2.7. Value chain mapping of service quality in customer satisfaction....................................................17
(To Be)...................................................................................................................................................17
2.8. Value chain mapping of service quality in customer satisfaction (Gap)..........................................18
2.9. Cause and effect analysis................................................................................................................19
1. Integrated communication................................................................................................................19
2. Marketing strategy............................................................................................................................20
3. Management system.........................................................................................................................21

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 4. Reliable service..................................................................................................................................22
5. Standard service................................................................................................................................23
6. Fulfillment of customer desire...........................................................................................................24
7. Convenience of management structure............................................................................................25
8. Employee perception of consumer.................................................................................................26
9. Management perception of consumer expectation.........................................................................27
2.10. Prioritizing the constraints/gaps based on Cause and effect Analysis...........................................28
2.11. Technology identification and Categorization.......................................................................29
3. Integrating sectors responsible for the identified technologies by fish bone diagram or table.......30
4. Value chain and its integration with major GTP priority sectors.......................................................32
5. Conclusions...................................................................................................................................33
6. Recommendations.............................................................................................................................34
7. Reference...............................................................................................................................................37

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 Chapter one

1. Value chain analysis of tourism service on customer satisfaction

1.1. GTP priority sectors

GTP TARGETED SECTORS

1 Agriculture
1.1 Horticultural Crops production
1.2 Vegetable production
2 Industry development
2.1 Textile and Garment
2.2 Leather and leather products
2.3 Sugar Production
2.4 Cement
2.5 Metal Engineering
2.6 Chemical
2.7 Agro Processing
3 Mining
4 Economy and infrastructure
4.1 Rail Transport
4.2 Road Transport
4.3 Shipping Transport
4.4 Air Transport
4.5 Energy
4.6 Water and Irrigation
4.7 Telecommunication
4.8 Urban Development
5. Trade
6. Health
7.Culture, tourism, sport
Tourism Industry
Tourism Service on customer satisfaction
8. Social

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 1.2. Introduction
The service sector is an important soft part of the economy for any county. It has a direct and
significant contribution to GDP, job creation and provides crucial inputs for the rest of the
economy, thus it plays significant effect on the overall investment climate, growth and
development. The services has emerged as the largest segment in and driving force of the
economy that the growing importance of services in all economic sectors facilitates production
and exports throughout productive processes.(Massimiliano Cali, Karen Ellis and Dirk Willem
Tevelde; 2008). The global economy has shifted to the service sector. According OECD (2013)
more than 75% of the global economy is now accounted for by services and it is the fastest
growing sector in global trade. This is also true even in low income countries, where it frequently
generates over 50% of GDP (OECD 2013).

Africa’s services sector holds tremendous economic promise. It contributes to almost half of the
continent’s output, and a number of African countries have emerged as services-oriented
economies. Indeed, growth in services has been vibrant in Africa, at more than twice the average
rate for the world during 2009– 2012. The sector’s performance has undoubtedly contributed to
Africa’s growth trajectory of the past decade” (UNCTAD, 2015).
Ethiopia, having registered high economic growth since 2005 at an average 10.8% per annum,
stands out as one of the fastest growing economies in the world (OECD 2016). In 2014/15, real
GDP grew by 10.2%, keeping the momentum of the 10.3% growth rate of 2013/14. The services
sector contributed 4.7 percentage points of this growth followed by industry and agriculture
contributing 3 and 2.5 percentage points, respectively. The service sector grew by an impressive
10.2% in 2014/15, mainly due to improvements in hotels and tourism (29.2%), transport and
communications (13.3%), wholesale and retail trade (9.9%) and financial intermediation (6.9%).
(Ethiopia, 2016, www.africaneconomic outlook.org 2016).

According to (Kandapully J et.al 2001; Mengistu, 2008; Đukić 2009) among the various
products the following five (also known as tourism Amalgam) are highly essential elements of
successful destination: firstly, attractions (the principle motivations for tourist that comprise
cultural, historical, natural wonders or event attractions). Without attractions there would be no
need for other tourism services. As a result, they are the core tourism products. Secondly,
Accessibilities (means of getting a destination) involve both the transport infrastructure and the

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modes of transport available to reach the location. Third, Accommodations (refers to places
where tourists stay) includes hotel hostels, guest house and lodges. Fourth, Amenities refers to
places where tourists can acquire catering or food, beverage, entertainment, and
communications). Finally Activities accomplished by tourists and help them to stay longer and
spend in destination like outdoor and indoor recreation activities.

According to the United Nations World Tourism Organization (UNWTO), international visitor
arrivals reached 1.18 billion in 2015, a 4.4% increase compared to 2014. The People’s Republic
of China (PRC) leads the world in annual international tourism expenditure ($229 billion),
followed by the United States ($120 billion) and Germany ($76 billion). The long-term outlook
for global tourism growth is bright, with UNWTO forecasting international visitor arrivals will
raise an average 3.3% per year and reach 1.8 billion in 2030. Visitor arrivals in emerging
destinations are expected to increase by 4.4% per year, or nearly twice the rate of increase in
advanced economies. Asia and the Pacific received 279 million international visitors in 2015, an
increase of 5.4% compared to 2014. UNWTO’s long-term forecasts suggest Asia and the Pacific
will remain the World’s fastest-growing region through 2030, when international visitor arrivals
are expected to reach 535 million and represent 30% of the global market share.

In African context, “tourism a powerful development path”, is one of the largest and fastest
growing sectors of the world economy, and tourism in Africa is ripe for development, as of the
report of World Bank (2013). Income generated from tourism has also climbed: receipts from
hotels, tours and other attractions in 2012 amounted to over US$36 billion and directly
contributed just over 2.8% to the region’s GDP.

Ethiopia, one of the two African nations never to lose its independence (never colonized), owns a
proud history of African heritage and considered as the origin of mankind. Ethiopia has been
chosen as the world’s best tourism destination for 2015 by the European Council on Tourism and
Trade (ECTT). It was chosen for its “excellent preservation of humanity landmarks” such as the
ruins of the city of Axum (Stelae) and it is home of most 12 UNESCO registered world heritage
sites and many on process (MOCT, 2016/17).

Tigray tourist destination “Tigray, the cradle of ancient Ethiopian civilization”, one among the
various destinations of Ethiopia, is the Alpha and Omega of Ethiopia's ancient with remarkable

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and fascinating history. As evidenced today by its unique pre-Christian obelisks, countless stone
inscriptions, dozens of rock-hewn churches, ancient built monasteries, underground palaces and
imperial tombs. It has always been the purveyor of religious scholarship, ecclesiastical painting,
Christian chants as well as administrative and political blueprints. Tigray’s historical, religious
and cultural wealth is as overwhelmingly rich as it is diverse. These features make Tigray a true
pearl of the tourist destinations in Ethiopia. The study was conducted in Axum city situated in
Central zone, Tigray, Ethiopia. It is famous for its stelae, churches, monasteries, tombs and the
ruins of palaces and was declared a UNESCO World Heritage site in 1980. It is one of the
cleaner and better kept Ethiopian towns with cobbled side streets and attractive flame trees
providing shade in the main street. (http://www.maplandia.com/ethiopia/tigray/central/Axum/).

Service quality has been regarded as a major factor for the achievement of organizations due to
the close relation it has with customer satisfaction particularly in the service industry (Gilbert &
Veloutsou, 2006).Service quality has been believed to have direct impact on customer
satisfaction, recurrence of buying behavior and security of a company’s profit in the long-run
(Wilkins, Meerilees& Herington, 2007).

Regardless of the Tigrai region rich is potential for tourism, tourism as a source of economy is
not well developed and tourist attraction resources are not utilized properly as far as having
numerous cultural and natural tourism resources. It is, therefore, viable to highlight the major
efforts, challenges that obstruct tourism development. Consequently, nowadays;the Ethiopian
government has devised a clear policies and strategies to develop tourism industry.

For this reason, tourism education is integrated in the Ethiopian NTQF and is delivered in TVET
schools. These development strategies can be materialize with the effort of the important stake
holders of tourism, including the government, private sector and volunteer associations and non-
governmental organizations particularly at this time federal and regional TVET have clear goals
to improve the livelihood and living standards of the community through mitigating and
improving technologies (hard ware, orga-ware, techno ware and humanware) in every existing
activities of the give people. This study also part of that prime goal of TVET bureau to provide
its contribution in solving some problems related to tourism service quality on customer
satisfaction.

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1.3. Statement of the problem
Ethiopian tourism is not yet developed to the expected standard. For instance, tourism products
are not well marketed and promoted. Consequently, tourism destination and service provider are
not being benefited from the existing cultural and natural resources. Consequently, tourism
services in Ethiopia is facing many constraints, and its trends become unattractive for those who
want to run and offer tourism services to the local community and foreigners as well.

Ethiopian government also gave due attention by incorporating the sector in the country‘s
development strategy. Even though there are many natural and cultural wealth in many areas
they have to be transformed in to sustainable community tourism development.

When we come the TVET College graduates and the current existing micro and small enterprise
have significant internal and external factors which hinder from competing in the local and
international market such as :-
 Lack of need assessment
 lack of preparing standard ASIS value chain
 lack of using bench mark technology at international working standard(TO BE)
 lack of identifying gaps from the existing value chain (AS IS) and bench mark(TO BE)
 lack of modernizing by comparing the (AS IS) and bench mark(TO BE) value chain
 lack of applying the updated technology from the updated value chain analysis

The Mekelle clusters established virtual team to prepare value chain analysis after assessing the
local Small and Medium scale Enterprises (MSEs) and the team found that the local Small and
Medium scale Enterprises (MSEs) has poor experience in tourism service on customer
satisfaction and customer handling techniques with all necessary facilities.

With this background, service Quality and customer satisfaction are compelling the attention of
the tourism industry. Despite the increase in number of international tourist arrival, the service
quality delivering on the destination is not satisfactory. The researcher observes that there are
gaps on hotels, restaurants providing quality service, providing accurate information or
commentary and low educational background of tour guides, lack of adequate training on tour
guides, tour operators, travel agencies, souvenir ships and lack of adequate infrastructure on the
tourist destination areas.

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As to our personal observation and preliminary assessments’ the destination’s service quality is
not satisfactory. First, the researcher made informal discussion with some tourists, tour guides,
the local communities and observe that there are progress in providing service quality but there
are complaints arise from the tourists on the quality of service offered. Secondly, reviewing the
written comments on the museum of the obelisk, on the churches that suggests they are happy
with the historical attraction of the areas but they do also respond negative comments that
suggests towards the service quality they get from the hotels. Thus, this initiates the researcher to
conduct a research in the service quality of Axum destination related to tourist perception.

1.4. Research question

The value chain analysis of this study has answers the following research questions:

1. What kind of technology is being used in micro and small enterprise? And from where it
bring?
2. What are the main gaps that manifest in using traditional materials, skill and manuals in
micro and small enterprise?
3. What are the gaps that occurred in being served technology that can use for the futures? In
terms of quantity, quality and cost effectiveness.
4. What are the major obstacles that hinder for the development of tourist attractions in our
region and promoting attractions in tourism destinations??
5. What are the contributions of stakeholders to solve the challenges of tourism development?
6. What is the level of tourist satisfaction in wukro , Adidrat and Axum destination cluster?
7. Which service quality needs improvement?

1.5. Objective

1.5.1. General Objective

The general objective of this study is to measure tourism service on customer satisfaction at
wukro, Adigrat and Axume.

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1.5.2. Specific Objective
 To identify the technology which is being used in micro and small enterprise and where it
bring from
 To identify the main gaps that manifest in using traditional materials, skill and manuals in
micro and small enterprise
 To understand the gaps that occurred in a given technology in terms of quantity, quality
and cost effectiveness.
 To assess the major obstacles that hinder for the development of tourist attractions in our
region and promoting attractions in tourism destinations.
 To address contributions of stakeholders in solving the challenges of tourism
development.
 To examine the level of customer satisfaction in wukro ,Adidrat and Axum destination
cluster.
 To assess which of type service quality needs improvement in Wukro ,Adigrat and Axum
destination cluster.

1.6. Scope of the value chain

In order to make the value chain manageable, it is necessary to define the delimitation of the
study. Thus, the geographic scope of this study is limited merely to Wukro, Aigrat and Axum
tourism destination mainlyAxum and its surrounding is one of the tourism clusters of Tigray.
Thus, it is very important to develop cluster wide value chain analysis to investigate the current
working procedure of the industry so as to compare with the best practices in service quality in
customer satisfaction in hand crafts.

1.7. Significance of the value chain

Tourism sector is one of the new economic sectors in Ethiopia which is given better emphasis. It
is taken as an additional tool for betterment of the life of the people by incorporating the sector in
the country‘s development and transformation plan. Even though tourism is becoming good
revenue generator in the country, researches done on the sector especially intourism service
quality on customer satisfaction is inadequate. This study will make some contribution in this
regard.

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In particular, the study will have the following significances:
 It could use as an input in understanding the extent of community development, its
impacts, contributions and relationship with tourism service quality in customer
satisfaction
 Simple and better way to identify gaps and the existedtechnologies.
 Increases efficiency and systemic competitiveness of local tourism enterprise
 Primary targets involvement between local sector and sub sector
 Improves customer satisfaction by providing quality product and services
 To create jobs in the community
 To increase business productivity
 Helps to build good image of the destination
 To earn foreign currency.
 To increase tourist staying at the destination

Conducting a study on the analysis of tourism service quality on customer satisfaction in Axum
destinations believed to be an important. The research results would provide assistance to the
hotels, tour operators, souvenir ships to better satisfy their customers, respond to their needs
efficiently and on timely manners. It also provides feedback for the stack holders regarding the
perceptions of their customers toward their service quality.

Furthermore, the outcome of this study is important to develop the service quality of the Axum
destinations in order to meet with the customers’ needs and their satisfaction. The final result is
very significant to the hotel owners to continuing their business successfully, to the overall
tourism activity/development of the city, to decision makers in formulation of policies for
hospitality and tourism industry in the city as well as the regional/national level..

The importance of having satisfied customer is unquestionable. Therefore, the study helps
service providers to plan strategies that will enable them deliver effective and consistent service.
In addition, the findings will provide the hospitality training institutions with useful information
in preparation of teaching curricula, benefit researchers’ undertaking further study on a related
topic, and benefit hotel managers, tour guides, tour operators, souvenir ships, Tigray culture and
tourism bureau, employees and customers, societies in general.

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1.8. Limitation of the study
The survey of service quality in customer satisfaction value chain analysis covered only the
selected Mekelle, wukro, Adigrat and Axum. Besides, the value chain analysis also faced time
constraints that to assess needs of the micro and small enterprises collect data and analyses the
response of the respondents and prepare working standard value chain analysis by comparing the
ASIS and the bench mark of that improves the quality. In addition, the value chain analysis
researchers were confronted with getting BenchMarkand required data on most area.

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 CHAPTER TWO

2. Research Strategy and Design

2.1. Site Selection and Description of the Study Area

2.1.1. Site Selection

Tigray, the northern part of Ethiopia is dotted with a mountain expanse divided in to various
charms and abyss. The place has also cave painting which depict pre-history human activities
such as hunting activities, herding, milking and riding and old rock-hewn churches and the
sanctuaries with their artful architectural designs, existing wall paintings which dates centuries.
The region is recognized as the cradle of the Ethiopian ancient civilization. Tigray among the
early places to receive Christianity is believed to have possessed the most precious object, the
Ark of the Covenant of God. It is also noted for embracing Islam much earlier. In line with, this
region has attractive religious annual ceremonies (Tigray culture and Tourism Agency, 2016).

Axum or Axum is a city in the northern part of Ethiopia. The original capital of the Kingdom of
Axum, it is one of the oldest continuously inhabited places in Africa. Axum was a naval and
trading power that ruled the region from about 400 BC into the 10th century. In 1980, UNESCO
added Axum's archaeological sites to its list of World Heritage Sites due to their historic value.

Axum is located in the central Zone of the Tigray Region, near the base of the “Adwa”
mountains. It is located 1024 km far from Addis Ababa. Geographical coordinates are 14° 7' 47"
North of latitude, 38° 42' 57" East of longitude. It has an elevation of 2,131 meters (6,991 ft) and
is surrounded by “La'ilay Maychew” district. The 2007 national census showed that the town
population was 44,647, of whom 20,741 were males and 23,906 females). The majority of the
inhabitants said they practiced Ethiopian Orthodox Christianity, with 78.03% reporting that as
their religion, while 10.89% of the populations were Muslim. The largest ethnic group reported
was the Tigrayan (98.54%) and Tigrinya was spoken as a first language by 98.68%.

The major Axumite monuments in the town are stelae. These obelisks are around 1,700 years old
and have become a symbol of the Ethiopian people's identity. The largest numbers are in the
Northern Stelae Park, ranging up to the 33-metre-long (3.84 meters wide, 2.35 meters deep,

10
weighing 520 tons) Great Stele, believed to have fallen and broken during construction. The
Obelisk of Axum (24.6 meters high, 2.32 meters wide, 1.36 meters deep, weighing 170 tons) was
removed by the Italian army in 1937, and returned to Ethiopia in 2005 and reinstalled July 31,
2008. This stele was already broken into pieces before being shipped. The next tallest is the 24-
metre (20.6 meters high above the front baseplate, 2.65 meters wide, 1.18 meters deep, weighing
160 tonnes) King Ezana's Stele. Three more stelae measure 18.2 meters high, 1.56 meters wide,
0.76 meters deep, weighing 56 tons; 15.8 meters high, 2.35 meters wide, 1 meter deep, weighing
75 tonnes; 15.3 meters high, 1.47 meters wide, 0.78 meters deep, weighing 43 tones. The stelae
are believed to mark graves and would have had cast metal discs affixed to their sides, which are
also carved with architectural designs. The Gudit Stelae to the west of town, unlike the northern
area, are interspersed with mostly 4th century tombs.

The other major features of the town are the Old and New Cathedrals of St Mary of Zion. The
Old St Mary of Zion Cathedral was built in 1665 by Emperor Fasilides and said to have
previously housed the Ark of the Covenant. The original cathedral, said to have been built by
Ezana and augmented several times after was believed to have been massive with 12 naves. It
was burned to the ground by Gudit, rebuilt, and then destroyed again during the Gragn wars of
the 1500s. It was again rebuilt by Emperor Gelawdewos (completed by his brother and successor
Emperor Minas) and Emperor Fasilides replaced that structure with the present one. Only males
are permitted entry into the Old St. Mary's Cathedral. The New Cathedral of St. Mary of Zion
stands next to the old one, and was built to fulfill a pledge by Emperor Haile Selassie to Our
Lady of Zion for the liberation of Ethiopia from the Fascist occupation. Built in a neo-Byzantine
style, work on the new cathedral began in 1955, and allows admittance to women. Emperor Haile
Selassie interrupted the state visit of Britain's Queen Elizabeth II to travel to Axum to attend the
dedication of the new Cathedral and pay personal homage, showing the importance of this
church in the Ethiopian Empire. The Queen visited the Cathedral a few days later. Between the
two cathedrals is a small chapel known as The Chapel of the Tablet built at the same time as the
new cathedral, and which is believed to house the Ark of the Covenant. Emperor Haile Selassie's
consort, Empress Menen, paid for its construction from her private funds. Admittance to the
chapel is closed to all but the guardian monk who resides there. Entrance is even forbidden to the
Patriarch of the Orthodox Church and to the Emperor of Ethiopia during the monarchy. The two

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cathedrals and the chapel of the Ark are the focus of pilgrimage and considered the holiest sites
in Ethiopia to members of its Orthodox Church.

Other attractions in Axum include archaeological and ethnographic museums, the Ezana Stone
written in Sabaean, Ge'ez and Ancient Greek in a similar manner to the Rosetta Stone, King
Bazen's Tomb (a megalith considered to be one of the earliest structures), the so-called Queen of
Sheba's Bath (actually a reservoir), the 4th-century Ta'akha Maryam and 6th-century Dungur
palaces, the monasteries of Abba Pentalewon and Abba Liqanos and the Lioness of Gobedrarock
art. Local legend claims the Queen of Sheba lived in the town.

Figure 1: Axum area destination attraction sites

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 Source:
source: Tigray tourism bureau, (2018)

Therefore, Axum is selected as the current value chain analysis site because the town has many
micro and small enterprise activities and the value chain analysis researchers would not face
accessing handcrafts, souvenir shops and tour guides and others.

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2.2. Research Strategy and Design

2.2.1. Research Strategy

Qualitative research methodology has been applied to ensure the accuracy and validity of the
findings gathered from different sources. In this value chain analysis study, a qualitative research
strategies were employed to the data collected using simple questionnaire from a representative
sample of micro & small enterprises and customers.

2.2.2. Research design

Exploratory research design to explore the nature and content of the gap situation by gaining ideas
and insight in to the problem followed by descriptive research design to explain what is happening
in more detail, filling in the missing parts and expanding understandings by providing additional
information about the gap have been applied in this specific study to derive conclusion answer to
the subject matter. So, this study utilized descriptive and explanatory research design to assess
the gap on service quality in customer satisfaction value chain analysis in the study area.

2.3 Methods of data collection

For the data, to be reliable and valid qualitative data has been obtained from primary source by
using different data collection tools such as questionnaire and observation techniques and
secondary sources data relevant to this study were collected from publications or documents such
as journals, magazines, books, internet and findings of related value chain analysis researches
was included as well.

2.4. TargetPopulation, Sampling technique and sample size

For the purpose of this study, the target populations were customers and micro &small
tourism enterprise which work in Mekelle,Wukro, Adigratand Axum.

2.4.1. Sampling Techniques and Sample Size

In most cases, target population means the parent group from which a sample to be formed or
refers to the group or collection that researcher are interested to draw generalization. In this study
population refers to the respondents of target population from which generalization will be

14
reached (small and medium tourism enterprises), the subjects of the study refers to the specific
population from which the samples will be drawn.
Population used for this value chain analysis study was customers and micro &small tourism
enterprise which finds in Mekelle, Wukro, Adigrat and Axum corresponding to the period of the
collection data.

In this study, convenient and purposive probability sampling technique was employed because
researchers choose specific target populations which can easily accessed and provide information
according to the values chain time period. The total population of the study is40.

2.5. Data interpretation and analysis

To understand the underlying scenarios, the collected data were systematically verified,
described, analyzed and interpreted using qualitative approaches. Data that were gathered using
predominantly qualitative variables were subject to phenomena description and narrations. Since
data from the direct observation were largely qualitative, the interpretation involved triangulation
of different views from varied sources.

Thus, qualitative data obtained from field notes, interviews were organized, reduced and
analyzed based on systematically grouping and content analysis to describe phenomena into their
respective thematic areas. Information reduction was done at different phases via editing,
classifying, sorting, verifying and summarizing vigilantly in order not to miss relevant
information for this study.

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2.6. Value chain mapping of service quality in customer satisfaction (AS IS)

Word of mouth Personal needs Past experience

communication

Expected service

Perceived service

Service delivery External communication

including pre and post to consumers
contacts

Translation of perceptions
into service quality
specification

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 2.7. Value chain mapping of service quality in customer satisfaction

(To Be)

Word of mouth Personal needs Past experience

communication

Expected service

G6Fulfillment of G5 quality
customer desire service

Perceived service

Consumer

Provider
Service delivery G4 External
including pre and post reliable communication to
contacts service consumer
G3 appropriate
service
G1
Integrated Employee Translation of perceptions
communicati perception of into service quality
on consumer specification

G7convenience of
G2 marketing
management
strategy
structure

Management perception
of consumer expectation

Consumer expectation

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 2.8. Value chain mapping of service quality in customer satisfaction (Gap)

Word of mouth Personal needs Past experience

communication

Expected service

Fulfillment of G5 quality
customer desires service

Consumer

Provider

G4
G3 appropriate
reliable
service
G1 service
Integrated Employee
communicati perception of
on consumer

G7convenience of G2 marketing strategy

management
structure

Management perception
of consumer expectation

Consumer expectation

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2.9. Cause and effect analysis

1. Integrated communication
Cause and effect analysis

Integrated  Discouraging hotels to

work on the sectors
 Lack of convenient working Cause communicatio Effect  Customer
environment n dissatisfaction
 Lack of using marketing mix  Negative impact on the
 Lack of good brand name economy of the
 Lack of commitment on the country
employees

Solution
 Using effective marketing strategies
 Facilitate infrastructures like internet
access
 Providing training among employees
and management of the hotels

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2. Marketing strategy
Cause and effect analysis

 Unable to follow up the

business with clear
 Lack of effective goal setting Cause Effect strategic goals
 Lack of clear vision Marketing  Unable to manage
 Lack of SMART objective strategy resources
 Lack of clear marketing plan

Solution

 Service providers should establish clear

marketing strategy
 Service providers should take best practices
of other hotels related to managing their
resources.
 Government should cascade different
strategies to service providers
 Universities should involve their hand during
revising strategies

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3. Management system
Cause and effect analysis

 Lack of effective management  Inadequate up ward

system and down ward
Cause Management Effect communication
 Lack of team work
 Poor employee job
 Inappropriate supervision system performance
control system  Poor technology usage
 Too many layers of
management structure

Solution

 Higher institutions should

conduct short and long term
training
 The service providers should
adopt the habit of
Industriousness and work as
team
 The service providers should
involve quarterly supervision
and prepare checklists related
to job implementations of
different departments

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4. Reliable service
Cause and effect analysis

 Customer
 Lack of training dissatisfaction
 Lack of awareness Cause effect  Low motivation among
Reliable the staff because of low
 Lack of required technology
service payment to solve
customers problem

Solution

 Higher institutions and TVET colleges should

provide training regarding providing quality
service on time and interest in solving customers
problem and showing signposts at the
destination
 Scholars should conduct and prepare research and
manuals

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 5. Standard service
Cause and effect analysis

Effect
 Lack of awareness on handling
customers  Unable to provide
Cause Standard effect standard service
 Shortage of highly and moderately
 Unable to serve
train man power service customers well
 Lack of government attention to  Unable to produce
the sector in allocating proper quality product
budget
 Lack of expansion of infrustracture

Solution

 Government should give attention to the

sector through allocating proper budget
 Stake holders should support and involve on
expansion of infrastructure and tourist
facilities
 Universities should learn more skilled man
power on the sectors

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 6. Fulfillment of customer desire
Cause and effect analysis

Fulfillment of
 Lack of employees provision of  Increase unsatisfied
individual attention to tourists
Cause customer Effect customers
 Lack of personal understanding level desire  Resistance among the
staff and distinctive
to specific needs of customers offices
 Lack of awareness on handling  Non-availability of
customers pleasantly and friendly prepared and qualified
staff

Solution

 The hotels should develop chain that can

easily communicate their customers like
CRM
 The employees should tell accurate
information to tourists
 The hotels should provide faire prices of their

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7. Convenience of management structure
Cause and effect analysis

 Lack of effective management Convenience

structure  Less service
Cause of management effect delivery
 Lack of qualified person and
not working well on the job he structure
or she assigned

Solution
 The hotel should plan modern management
structure
 The hotel should provide training and hired
skilled man power
 The hotel should follow excellent quality
management

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8. Employee perception of consumer
Cause and effect analysis

Employee  Dissatisfaction of
 Lack of understanding customer
customers’ desire Cause perception of Effect  Losing standard of the
 Lack of communication skill hotel
consumer  Losing local cultural
with having enough language
value specially how to
 Lack of familiarized and respect guests
showing empathy
 Lack of enough knowledge of
perception

Solution

 All stake holders should involve on tourism

product development
 Employees should train how to order and
listen customer
 Employees should train how to make
customer like they are at home.
 Government should support and encourage
tourism business activities at local and
international markets

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9. Management perception of consumer expectation
Cause and effect analysis
 Lack of hotel management
 Lack of observing gap skill on
employee
 Lack of providing short
training
 Lack of havig manual for
guiding the hotel
Management  disappointment of
customers
Cause perception of Effect t  lack of attracting
prospect customers
consumer  instability of employee
expectation in the organizations
 the hotel will not reach
to the expected goal
 tourist may not follow
to the country as much
as possible
Solution
 All stake holders should involve on
development of providing quality service
 manual how to operate hotel should prepared
 short and long term training should provide to
employee and managements.
 Questionnaire should be prepared for
customers and then make assessment on it
 Government should support and encourage
tourism business activities at local and
international markets
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 2.10. Prioritizing the constraints/gaps based on Cause and effect Analysis
Rank Gap/Constraint Description
1 Integrated  It helps to have adequate upward and down ward
communication communication
 It helps to reduce layers of management structure in the
service provider organizations
2 marketing strategy  It helps companies to establish clear strategies
 It helps to deliver quality service according customers’ desire
3 Management system  It helps to have skilled employee job fit and quality technology
job fit
 It helps to reduce ambiguity and conflict between employees
and management the company
 It initiates companies to work as team work and adopt
adequate control system
4 Reliable service  It helps to have effective horizontal communication between
the company and final customers
 It helps companies to keep their promise
5 Standard service  It helps companies to have good brand name
 It helps customers to evaluate different services they received
through their personal needs and past experience
6 Fulfillment of  It helps employees to understand customer’s wants easily
customer desire  It helps companies to be competitor and deliver standard
service
7 Convenience of
management  It helps to have effective integration among employees and
structure management of the company
8 Employees  It helps to increase the level of empathy for customers
perception of  It helps to respond quickly for customers request
consumer
9 Management  It helps companies to conduct market research based on
perception of customers feed back
consumer expectation  It helps companies to be market based and revise their
marketing objectives

2.11. Technology identification and Categorization

Ran Gap/constraints Techno Human ware Info ware Organ ware

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k ware
1 Integrated  
communication
2 marketing strategy  

3 Management system 
4 Reliable service  
5 Standard service 
6 Fulfillment of  
customer desire
7 Convenience of  
management structure
8 Employees perception 
of consumer
9 Management perception 
of consumer
expectation

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 3. Integrating sectors responsible for the identified technologies by fish
bone diagram or table
Technology Category Rank Responsible sector
Integrated communication 1  Tourism and culture
 Manual on marketing mix Human ware bureau
strategy Info ware  Small and medium
enterprise agency
 TVET College
Marketing strategy Techno ware 2
 Product promotion techniques Human ware  Small and medium
 Introducing suggestion box enterprise agency
 TVET college
Management system Orga ware 3  Higher institutions
 Advising proper management and TVET colleges
system structure
Reliable service 4
Human ware  Higher institutions
 Manual on providing quality Techno ware and TVET colleges
service  Tourism and culture
 Introducing local tools on bureau
musical instruments

Standard service 5  Higher institutions

 Manual on handling customers Human ware and TVET colleges
 Tourism and culture
bureau
Fulfillment of customer desire human ware 6  TVET college
 Manual on customer desire Info ware
identification
Convenience of management 7  Small & medium
structure Human ware enterprise
 Advising proper management Orga ware  TVET colleges
structure  Tourism and
culture bureau
Employee perception of consumer 8
 Manual on communication skills Human ware  Small & medium
enterprise

30
  TVET colleges

Management perception of Human ware 9  Small & medium

consumer expectation enterprise
 Manual on hotel management  TVET colleges

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4. Value chain and its integration with major GTP priority sectors

Tourism Service quality in customer satisfaction

 Mining-is the most important for the sources of granite stone for making hand craft
products.
 Metal work-it is helps for making tools like Grinder and other instruments for designing
& shaping hand craft products.
 Agriculture –this helps to providing Geological site for seeking Granit stone area.
 Trade-this helps for truism products to get market linkage in local and international
markets.
 Basic economic development- this helps to facilitate basic infrastructure such as, Rode,
Transportation, car& cart.

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5. Conclusions
These days, tourism has become one of the most vibrant economic sectors and escalating
worldwide due to facilitations of modern technologies and increased human curiosity to the
world. Tourism plays an important role in shaping the Ethiopian political economy.

This value chain is conducted in the Tourist destination of Axum and its surrounding attractions
that can be visited in a day trip from the town of Axum. These all attractions are segregated by
the Bureau culture and tourism of Tigray as Axum Cluster.

As a cultural and religious tourist destination of Ethiopia, the number of tourists to the town is
increasing from time to time. For this reason, it is important to improve the working standards
and procedures of tourism in Axum so as to cope up with the international working procedures.
This can enhance competition and enables to develop the industry in Axum.

From the interviews conducted, tourism service providers revealed that they have overall
positive perception of the service quality and tourist satisfaction. Nevertheless, this study was
able to conclude that the management did not have a realistic perception of the level of service
quality and customers satisfaction. In other words, management overestimates their
organization’s service delivery. Also, hotel managers expressed that the service centers face
many challenges that hinder the quality service such as lack of infrastructure around the tourist,
internet access, training access, banking service, poor regulatory framework to tourist areas,
untrained staff and poor road infrastructure around tourist attraction destination are among the
challenges.
The regional Tourism bureau of Tigray should play more active role in ensuring customer
satisfaction related to tourism service quality. In this regard, the government encourages private
entrepreneurs to build lodges at the most tourist spots of the tourist destination. Apart from
establishing its own lodge’s infrastructures, the government should design some uniform
frameworks under which different types of lodges with varied service facilities can be classified
and categorized to maintain to ensure minimum standard of service quality.
As a result of this we have developed the value chain analysis on tourism service quality on
customer satisfaction, as one part of tourism. This value chain can enhance on the skill,
knowledge and attitude of service providers (hotels, restaurant, coffee house, souvenir shops and
travel agency).
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6. Recommendations

Despite the fact that the destination possesses rich cultural and historical places which can play
paramount role for success of tourism business, Axum tourist destination cluster has received
higher tourist dissatisfaction with regard to its service quality. Thus, in this section, the study has
described some of the potential solutions in order to overcome the problems which hinder the
delivery of quality tourism service as follows:

Build environment: The government together with the destination must allocate sufficient
annual budget in order to have green and clean built environment at the attraction sites, which
also consider disabled guests of the destination. Besides, the government should take strong
corrective measures to improve both the road infrastructure with provision of modern vehicles to
transport tourists from their lodges and hotel to the attraction sites. Moreover, the government
should give incentives to private business owners in order to take part in the
accessibility/transportation sectors. Improvement has to be made in pedestrian, public
restrooms/toilets. In addition, the attraction sites at the cluster should manipulate their business
with the help of different state of art technology.

Banking (Foreign Currency Exchange Service) and ICT infrastructure: The government
should give incentives to banks so as to offer facilities like ATM and visa card in order to
facilitate foreign currency exchange service. Furthermore, the telecommunication services
should take major improvement to give special emphasis on their services, the internet and
telephone service should be improved to reach all the attraction sites of the cluster which are
mostly visited by the inbound tourists.

Accommodation upgrade: The existing accommodation should upgrade in physical appearance

and services in order to satisfy guests (customers). Besides, the government should work with the
private sector to create an environment which fosters improved accommodation service quality.
There should be incentive to opening more world class lodges, hotels and restaurants at the
destination.

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Clubs for entertainments, activities and display of culture heritage: According to the data
collected from customers and tourists they are highly dissatisfied with the provision of
entertainment and activities. But tourists need to sense and know the culture of people at the
destination. To satisfy tourists effectively the cluster should give special focus to organize clubs
which provide entertainments and activities. At the same time which can visualize the culture
and heritage of the people of Axum. Besides, the program should inculcate the culture of nations
and nationalities of the country. Consequently, these let the tourists and other customers make
sense of the culture of the society. Additionally, showing this leads tourists to visit the original
place. Furthermore, the cultural event presentations help the destination to have cross selling like
cultural dress manufactured by the local people.

Staff training and development: in addition, businesses offering services to tourists

(accommodation/hotels, attraction sites and accessibility/transportation, etc.) should get
appropriate staff training and development. Since the employment of appropriately
trained/qualified people in the tourist sector would boost the quality of services provided and
consequently would increase tourist satisfaction, especially the responsiveness, assurance and
empathy attributes of service quality dimensions. The government and destination management
needs collaboration with Axum University in order to offer further targeted and special tourism
training programs for accommodation service providers and guides association to support and in
order to give capacity building.

Safety and security issues: The government together with the city administration should provide
safety and security for the tourists visiting the destination. Especially, in order to combat any
terrorist action or security problems the destination should have well trained and well uniformed
guards at the attraction sites and places. Moreover, there should be strict measures in order to
maintain no begging of tourist at the tourist destinations, which can prolong a negative image of
the country. Also since tourists’ communication with local people and service providers may also
foster empathy and a feeling of safety, and thus positively affect tourist enjoyment of the host
environment. The society should be informed to cooperate for the safety and security of the
guests.

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Integration: Integration between businesses is a hugely important concept, particularly for
tourism organizations. Integration refers to formal linking arrangements between organizations
which can occur both across the chain of tourism product distribution. There is an urgent need
for stakeholders to cooperate in order to build and offer holistic tourism product which can
satisfy/delight the tourists of the destination. To do so, the tourism office of the cluster should
organize a tourism council which consist members from the local residents, business people from
accommodation, accessibility/transportation and attraction site staff of the destination and from
Axum University community in general Scholars should conduct and prepare research and
manuals and Higher institutions should produce skilled man power in the sector.

Continuous Quality Control and Performance evaluation: The cluster should take the
initiative and make the destinations` tourism product quality control as their part of job/duty.
This lets them to control the qualities of services provided by different stakeholders of the
destination, who are participating at the final tourism product of the destination. Moreover, the
evaluation program helps the destination to keep in check and view the situation of this
destination, in order to avoid negative gap (dissatisfaction). Performance evaluation also helps
the destination to take corrective measure as per the result shown from the performance
evaluation score, which also foster the profitability of the destination.

7. Reference
Tourism product development and marketing strategies in the Committee for Economic and
Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) member
countries 2013 Turkey

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Agapito, D.,Valle,P.,&Mendes,J.(2013).The cognitive affective conative model of destination

image:A confirmatory analysis. Journal of Travel Tourism Marketing, 30(5), 471–481

Aldehayyat , Jehad S and Al Khattab ,Suleiman A. (2011), Perceptions of Service Quality in

Jordanian Hotels ,International Journal of Business and Management Vo No. 7.

Ashish Rami 2015, A study of tourist satisfaction in Ahmadabad city within SERVQUAL
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Baker, D. A. and Crompton, J. L. (2000), “Quality, satisfaction and behavioral intentions”,

Annals of Tourism Research, 27(3), 785-804

Barsky, J. D., & Labagh, R. (1992). “Quality management: A strategy for customer
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