TOURISM AND HOSPITALITY

ENTREPRENEURSHIP
OPPORTUNITIES AND CHALLENGES
January 2024
1. Introduction
This presentation is focused on the numerous opportunities that can be
found in the tourism and hospitality industry. This research paper is
intended to shed light on the wide range of career opportunities and the
possibilities for development in this booming sector. The tourism and
hospitality industry offers a wide variety of positions in various fields.
There are unlimited opportunities that come from hotels and resorts to
restaurants, travel agencies, event management companies. One of the
significant benefits of working in this field is its international character.
As the demand for travel grows and international tourism rises,
professionals in this industry have a good chance to work all over the
world. Besides, the industry provides a wide variety of job openings to
cater for many diverse skills and interests. Whether you are passionate
about customer service, marketing, finance or even the culinary arts
there is a large space for you in both tourism and also hospitality
sectors. Apart from the diverse career opportunities, this sector also
offers a remarkable scope for the growth in one’s profession. If a person
has the right kind of skills and experience, then he or she becomes a
leader quite easily. First, the tourism and hospitality industry is known
for its constantly changing nature which makes it a very interesting
field to work in. Finally, the tourism and hospitality industry is so full
of career development opportunities. This field is a very attractive
option for many people looking to find a rewarding and also lucrative
career due to its global reach, variety of roles available, and promotion
opportunities.
In 2023, according to the UNWTO’s forecasts, global
tourism arrivals will amount to 80-95% of pre-covid figures depending
on different factors including the rate of economic growth, Asia–
Pacific travel recovery and geopolitical tensions. Based on the
estimates by the World Travel & Tourism (WTTC), nearly half of its
185 countries in which it conducts research will have recovered to pre-
cavity levels or be at 95 percent or more of full recovery by 2023.
2. Review of Literature
2.1 Heritage tourism entrepreneurship and social media
Marius-Răzvan Surugiu and Camelia Surugiu (2015)
The paper discusses the many benefits and also risks of social
media as a platform for heritage tourism businesses. The authors state
that the popularity of heritage tourism is growing, and entrepreneurs in
this niche should take into consideration new marketing tools to gain
more tourists. Entrepreneurs are increasingly using the information and
communication technologies such as the internet to build their business
and also enhance the marketing mix. However, the tourists wish to
share their experience of the previous cultural vicinities and this can be
achieved through social media such as blogs and forums where many
topic discussions regarding travel and tourism voyages occur. The
authors recommend the need for businesses to concentrate on the
technological innovativeness and also capitalize on the growth of social
media usage. They should capitalize on the new media including blog
sites, Facebook pages, TripAdvisor, Myspace, Twitter, Flickr,
YouTube and also Instagram to improve brand equity as well as
advertise through these channels as they are impossible to ignore in the
world of competition. Thus, the article explores some case studies of
the successful heritage tourism entrepreneurship through social media
including “Dimitrie Gusti” National Village Museum and Romanian
Peasant Museum with over 40,000 Facebook fans combined.

2.2 The entrepreneurship factor in sustainable tourism

development- M Lordkipanidze, H Brezet, M Backman (2005)
The article “The entrepreneurship factor in sustainable
tourism development”, targeted at Söderslätt region of Sweden. The
paper demonstrates the crucial role played by entrepreneurship in
promoting economic development and innovation related to tourism,
especially for rural areas. The study pinpoints the need to diversify
tourism products and services offered in response to the growing
demand for new forms of sustainable tourism. It also provides a SWOT
analysis of the Söderslätt tourism entrepreneurship development and
outlines the current state of entrepreneurial environment in this region.
It also addresses the hurdles that rural communities face in supporting
entrepreneurship in the tourism industry. There is no trust and
confidence that can be derived from the conservative social pressure on
rural communities, which is a necessary basis for entrepreneurship. The
paper suggests several recommendations for the elimination of barriers
to sustainable entrepreneurial development in rural tourist areas, which
require a non-material values environment and renewable natural
resources. The PDF file ends with highlighting the significance of
ethical entrepreneurship in tourism that can be based on natural
resources and experiences.

2.3 Entrepreneurship in the tourism industry: Issues in

developing countries. M Jaafar, AR Abdul-Aziz, SA Maideen(2011)
The article "Entrepreneurship in the tourism industry: “Issues in
developing countries” covers the entrepreneurial climate of the tourism
industry among the developing nations, especially small and medium
hotels that are based in Malaysia. The study points out the necessity of
entrepreneurial traits, namely self-confidence and independence with
small and medium hotel owners/managers. Most of these entrepreneurs
were male, middle-aged and older, with a secondary or higher level of
education, and whose previous specializations or knowledge had
nothing at all to do with tourism. The research also discloses that in
Malaysia, small and medium-sized hotels were built with little personal
finance and bank loans, while the traditional marketing methods such
as word of mouth and billboards are still very important. This weakness
of insufficient knowledge and skills in running the business was seen
among small medium hotel owners/managers who believed that the
governments should take a more active approach to promote tourism so
as to sustain their own survival in the industry.
2.4 Tourism Entrepreneurship – Review and Future Directions
S Solvoll, GA Alsos, O Bulanova (2015)
This research paper discusses the growing focus on establishing new
businesses in the tourism sector. It states that entrepreneurs and new
businesses play a crucial role in introducing innovations and to generate
a lot of value addition in the tourism sector. Nevertheless, the data
about tourism entrepreneurship is distributed over the various sources,
which provide multiple topics and perspectives. The paper will seek to
address this gap by reviewing and critiquing the literature on tourism
entrepreneurship in the last decade from 2000 through 2012. The
authors verify whether the tourism entrepreneurship literature links to
the more general entrepreneurship research with respect to the
questions, theories and methods. They point out two approaches: One
that involves studies in which general entrepreneurship concepts are
used to research the tourism, and another were studies approach
tourism as distinct, requiring theories of its own. The paper identifies
patterns in these approaches and explores the ways that tourism
entrepreneurship research can contribute to the general
entrepreneurship studies as well as vice versa. In line with their results,
the authors propose some possible directions for the future research in
tourism entrepreneurship.

2.5 Information Technology in Tourism & Hospitality Industry

Ishwar Khatri (2019)
The paper undertakes a thorough analysis of IT use in the tourism
and hospitality industry, which is very important based on the
competition within the industry and creative practices. In order to study
the major travel and hospitality journals, this research focuses on the
articles published in these journals from 2009 to 2018. Three primary
themes emerge: Fundamental purpose, the internal business processes
and value creation & competitive advantage. The basic function of IT
in the industry is described, namely how it advances the service
activities, satisfies information requirements, interprets behaviour and
performance, coordinates the operational processes and promotes
innovation. Using a comprehensive content analysis, the paper
determines 63 relevant research articles plus references that facilitate
the understanding of IT in the tourism and hospitality area. In fact, the
paper presents a comprehensive analysis emphasizing the IT
significance and its role on the industry.

3. Advantages of Tourism and Hospitality Industry

3.1 Economic Growth:

One of the key advantages of tourism is that money is always coming
in. It is essential for the nation's economy as a whole as well as for
everyone engaged in the travel and tourism sectors. Commercial and
private aircraft operating out of these countries generally produce
enormous sums of income as tourists from all over the world travel to
these tourist spots. Hotels and other lodging facilities in the hospitality
sector produce constant revenue as guests pour into hotel lobbies in
search of a place to stay. This guarantees the profitability of hotels
throughout the entire year. The small businesses that fall under the
tourist umbrella support the growth of the national economy all year
round. Third-world, small, and developing nations are even more in
need of this.
3.2 The Development of a Country:

The start of the country's wealth inflow helps the government raise the
funds needed for the country's progress and growth. In times of crisis,
the tourist sector keeps the nation's economy stable and secure by
keeping it from collapsing. Additionally, the government gets the
funding required to complete large-scale infrastructure projects, such
the construction of theatres, hotels, casinos, and restaurants. By
providing travellers with more options for lodging and activities, these
projects could help the tourist sector. Money will flow more freely as a
result of this. Additionally, this wealth can be used to upgrade the
nation's infrastructure. This means building roads, railroads, better
hospitals, and educational institutions for the benefit of both residents
and tourists.

3.3 Employment Creation:

Thanks to tourism, people who were unemployed before now have
access to a wide range of jobs. The level of living for Native Americans
has increased dramatically since they were assigned stable, regular
employment. This list of employment includes working in theatres,
zoos, parks, restaurants, bars, casinos, hotels, and entertainment
venues, among other places. Some of those individuals you may
remember from your last vacation, especially the tour guide who
ensured your trip went smoothly, the travel agent who booked your
bookings, or the captain of your Caribbean cruise ship. They put in a
lot of overtime and spend time away from their families to make sure
you enjoy your travels. Additionally, this has contributed to a decrease
in the country's general unemployment rate, which eases the burden.

3.4 Unification of Various Societies:

People from different countries, cultures, backgrounds, customs, and
ethnic groups who are all traveling for leisure can come together thanks
to tourism. It makes it possible for travellers to learn about the many
histories, traditions, cuisines, and lifestyles of the nations they travel to.
This encourages people to understand one another and come together,
which could have a lasting social impact. Interaction between the locals
and visitors fosters cross-cultural bonds that may lead to long-term
cooperation.
3.5 Preservations and Protections:
The primary attractions for tourists traveling to a country are its
historical monuments and natural environment, particularly its
landmarks. These landmarks could be buildings, skyscrapers, parks,
monuments, synagogues, cathedrals, temples, and other tourist
destinations, to mention a few. It follows that safeguarding these
locations must become the government's primary priority if the tourism
sector is to be sustained. Laws are placed in place to prevent property
damage and vandalism, and the government regularly maintains these
areas to keep them safe. Following their incorporation into the tourism
sector, these regions serve as a major source of revenue for the country.

4. Complexities within the Tourism Industry:

4.1 Tourist’s Negligence of The Environment:
When it comes to tourism, thousands or even millions of people may
travel somewhere. Particularly in places where tourists are more likely
to travel, this high tourist influx has the potential to cause significant
environmental damage. The significant Increase in tourists is one factor
contributing to this environmental burden, but there are several other
factors as well that are interrelated and also hurt the environment. These
factors include increasing the presence and use of cars, buses, trains,
and other vehicles, all of which may contribute to increased carbon
emissions. A large number of flights at the airport may also contribute
significantly to air pollution. Tourists can contribute significantly to
land pollution because they generate a large amount of garbage and
waste, the majority of which is non-biodegradable, resulting in a large
number of landfills. All of these activities may have a significant
impact on the region’s environment.
4.2 Exploitation of Local Culture and Natural Resources:
Due to the high number of tourists visiting the country to observe the
unconventional lifestyle and traditions of the locals, some countries
start to commercialize their culture. It may be in collectibles. It usually
does not insult the locals. But in some part of the world, it is seen as a
shame and a mockery of the culture. This is particularly true in areas
where the locals consider their culture to be their identity.
Commercialisation may lead to people dressing up and performing
traditional dances to entertain tourists. When they see how
governments are using their culture for profit, it makes them feel sad
and ridiculed by their country.
Human activity and presence can harm ecological communities, food
webs and keystone species. Others take a proactive approach and
engage in tourist activity of exotic animal hunting. In doing so, they
risk harming the natural habitat of native wildlife. All of these
contribute to the decline and extinction of wildlife.
4.3 Lack of Job Security and Uneven Infrastructure Development:
While we mentioned that tourism boosts employment rates, some of
these jobs are only available during certain seasons. This is especially
true in countries where there are periods of time when large numbers
of tourists arrive from around the world. These seasonal jobs offer little
job security and workers are at risk of being left without proper
pensions and insurance. Tourism creates jobs for local people, but most
of these jobs are in the services sector and pay very low wages. These
low wage, low-skilled workers are not interested in promotions or
advancement in the corporate world.
The huge amounts of money generated by tourism allow countries to
build and develop only the tourist infrastructure of the destination.
However, the nations do not use the money generated from this
infrastructure to build and develop areas that need maintenance and
development.
4.4. Tourist’s Lack Of Compliance And Foreign Business Owners:
The problem of tourist’s lack of compliance and foreign business
owners is that tourists sometimes don’t respect the culture and
traditions of the countries and regions they’re visiting.
They don’t always respect the unwritten laws and morality that the
locals hold so dear. Sometimes, tourists do terrible things while drunk
in public. This can lead to resentment among the locals towards the
visiting tourists. The problem can be exacerbated by racist comments
by tourists and the socio-economic differences between tourists and
locals.
The tourists may view the locals in a much lower light than they view
themselves. These ideas can lead the visitors to act irrationally and
illegitimately, and sometimes they may even make fun of the country
they are visiting.

4.5 Regulatory & Border Issues

Regulatory issues like visa procedures are seen as hindrances. Difficult

visa processes keep the tourists away from some destinations. A
number of projects in the tourism infrastructure segment and in the
hotel industry are delayed due to non-attainment of licenses and
approvals on time.
However, in order to capitalize on the benefits of the tourism sector,
the government should aim at creating proper infrastructure, speedy
clearances, and make effective policies to regulate the tourism sector
and to gain the confidence of foreign tourists.

Source: javatpoint
5. Emerging Trends Shaping the Future of Tourism and
Hospitality Industry
5.1.Bleisure
The popular concept of tourism is the bleisure travel, people who
combine business trips with leisure activities. It is predicted to keep
rising within the mobile workforce. Despite the fact that business travel
has begun to recover in 2021, bleisure is believed to be its future. A
report from 2018 showed that 60 percent of U.S. business trips
contained many elements of leisure, up from 43% in the year 2016.
Alternatively, these business-leisure trips can also be planned in
advance where the clients schedule their vacation within the same
period as a job-related trip. Companies can also provide some tourist
activities during the business trips to their employees.
There is also a phenomenon of the digital nomads
among the millennials. For this reason, online workers and also
freelancers take up the habit of traveling while they work. As a tour
operator, you can capitalize on this emerging trend by designing
packages that appeal to the business visitors and make them stay over
for pleasure. For instance, you can offer retreats for the teams along
with some extras such as photos, videos and also transportation. The
presence of WIFI and chargers in the buses and accommodation (in
case of multiple-day tours) can also attract digital nomads and other
travellers who need to remain online for their work.
5.2.Automation
These days, clients are no longer required to make phone calls and talk
with a service provider directly or even go into the supplier’s office for
the direct negotiations. As a result of the digitization, online bookings
have increased a lot. It has not only reduced the cost of advertising for
travel companies but also, the customers increasingly enjoy and prefer
this convenience. Tour and activities companies have also gradually
embraced the technology and online bookings. In 2019, 71% of the
operators who participated in the survey had introduced reservation
technology into their businesses compared to only 25% who did so in
the year 2010. In addition to this, these firms had a higher growth rates
and profitability. These advanced technologies enable the tour and
activity providers to manage their activities more effectively by
automating the process of the booking systems. Long gone are the days
when you are using spreadsheets, pen and paper to manage your
reservations: booking systems take care of everything, saving you lots
of time and also money. For instance, the Regiondo booking system
conquered a European travel market with a convenient reservation
experience, flexibility and many innovations for organizations of any
scale.
5.3.Tech-EmpowerdTravel
We have discussed automation and also mobile booking in the tourism
industry as one of the future trends. However, numerous other aspects
of the travel will be influenced by the current and also future
technologies. Over the next year, tech innovations will further make the
traveling more convenient. The top five technologies that would
increase confidence to travel in the next 12 months are:

Notifications and alerts within the mobile applications during the

trip (44%).
Self-service check-in (41%)
Contactless mobile payments, such as the Apple Pay (41%)
Flexible and very automated cancellation policies (40%)
Mobile boarding (40%)

Besides providing assistance along the way, the technologies made

breakthrough solutions possible. The lockdowns also increased the
popularity of virtual tours, experiences and classes, while innovation in
the technology helped many businesses to survive the crisis.

5.4.Staycation
Another trend that emerged due to the pandemic is the staycation. It
symbolizes a home instead of an abroad holiday. Is usually
characterized by day trips for the local sightseeing and activities. This
kind of holiday is a perfect for those who want to get away from their
houses but also do not want the hassle of following Covid-19 rules.

Although the international travel restrictions have been lifted, new

studies indicate that the trend will carry on into 2022. This is due to the
fact that tourists desire to conserve their local markets and also ensure
safety and security in their holiday environment.
Thus, the small tour/activity businesses and
accommodation providers can be sure that there will be a continuous
influx of the customers in the forthcoming years.

5.5. Internet of Things (IoT)

IoT is applicable to numerous tourism trends. Internet of Things or IoT
devices are the machines that have a microprocessor and they are
connected to the internet. IoT devices are heating and cooling systems,
entertainment systems, among many other things that one might find in
a hotel room leading to smart hotel rooms. Similarly, the IoT is also
integrated into many services in an accommodation scenario, such as
enabling the guests to book various activities (like a spa session,
swimming pool use or gym training, etc.) by means of a hub or
smartphone app.