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50TOURISM AND RECREATION
INTERACTION OF TOURISM WITH HOTEL BUSINESS
A Bachelor in «Tourism», A graduate student of the major «Marketing»
Tanat L.B.
Kazakhstan, city ofAlmaty, University of International Business (UIB).
Abstract. Tourism, in the modern sense of the word, has long ceased to be just a journey to different places to rest. Tourism now plays an important role in the society and helps to increase the length and quality of life. Annually we can observe increasing tourist flow, development of new tourist products, constructed and restored objects of tourist infrastructure.
"Tourism enriches the individual, family, society and the whole of mankind" - this statement became the basis of the information campaign UNWTO undertaken to disseminate information about the positive impacts of tourism on the lives ofpeople, culture and economy, and, in general, the whole ofsociety.
Tourist services, included in the framework of hotel services, have been attributed to social and cultural services. They are built on the principles of modern hospitality, increasing their role in the development of domestic tourism and put certain tasks in the training of personnel for the tourism and hotel services. Hospitality is one of the fastest growing industries, accounting for about 6% of the world's GNP and about 5% of all tax revenues. The development of the hotel business stimulates the development of other areas: transport, trade, construction, agriculture, consumer goods, services, and so on. D.
Kazakhstan, despite the rich tourist resources, occupies a small share in the world tourist flow. According to estimates of the WTO, the potential of Kazakhstan allows to receive up to 40 million foreign tourists a year, which is 4 times more than today. One reason: there is not enough money and a low level of service.
The study and analysis of formation and development of the hotel business in the Republic of Kazakhstan allowed considering the business of hotel services as a form of entrepreneurial activity that was the closest to the market fluctuations of supply and demand. Basing on the study of Kazakh hospitality market, we can say that tourism is closely associated with the hotel business, but at the same time there are important social, economic and political factor. They determine the main direction of development of hotel business in the region.
Keywords: Tourism, services, hospitality, hotel business, visitors, development.
Evolution of hotel business is directly connected with tourism development in this or that region. This simple dependence can be easily observed in the notion «tourism». Tourism supposes moving in a different country or region, a temporal living out of home. Obviously, appearance of new tourism directions immediately causes hotels building, developing of hotel infrastructure in various parts of the world.
The French word «tourism» (tourisme, from tour - a walk, a journey) penetrated into the everyday language not long ago shifting the notion «travel». In its turn «travel is moving on some territory, area in order to explore them and also with educational, informative, sporting and other goals».
The most vital component of the tourism service is a complex travel - tour that includes a package of services of placing, meals, transportation, transferring, recreation, cultural and sporting events organizing, shopping, trading centers and other services (tourism formalities, insurance, etc.). The tourism services are divided into basic (included into a tour and paid by the tourist) and extra (they are paid at the moment of using during the tour or at the destination place).
There is also a complex of tourism services that is a required list of useful activities and professional operations of the tourism firms' workers, transport, institutions of service and culture in relation to tourists-consumers in order to satisfy their demands. They differ a complex of basic tourism services without which it is impossible to provide the tourist trip (receiving package , using transport services, night stay, meals) and additional which the tourists use if they need and want a higher level of travel and rest comfort. So, to the basic tourist services we refer a set of services constituting the base of servicing during the tour. Depending on the tour goal and task in the basic services complex are included accommodation, meals, transport and program providing. The additional services are an important part of the tour which embraces various services that are not included in the tour composition and that are paid by the tourist at the destination place and at the moment of consuming during the travel. Such services can be offered to the tourist at buying the package tour (they are included in the tour cost) or during it (then the client pays for them separately) provided by demand and according to interests with an extra pay. It is an important income item of tourist firms and hotels.
It is proved by the statistics data that many tourists spend on extra services than on the tour itself. That is why to provide additional services is an essential component of the tourist business technology.
Hotel services are separate branch that constitute a complex of services given to clients of hospitality institutions.
Hospitality is one of the fundamental notions of mankind, with the developing of which supplying people, who found themselves out of home because of different reasons, with hospitality services turned into profession for more and more number of people and then became a true industry.
In modern professional literature they distinguish different stages of tourism development and hotel industry progress (table1).
Table 1 Stages of tourism development and hotel industry progress
Periodization Development stage Characteristic
Before the beginning of XIX century Prehistory of tourism Ancient world: developing the network of inns on the territory of Roman Empire, development of caravanserais network in the East. Middle Age: spread of religious travels. Age of Discovery: emergence of hospitality institutions
XIX - XX cc. (the period between two world wars) Elite tourism Emergence of specialized institutions to make tourist services (The First World War). Beginning of social, mass tourism.
The modern stage (after the Second World War) Mass tourism Developing the tourism industry as an inter-sector complex to produce goods and services for tourism, optimization and improving the territorial structure, emergence of international hotel networks.
Compiled by the author with the materials of A. G. Semenova, R. A. Brymer, etc.
In many countries hospitality is the most important branch of economy that annually supplies goods and services of hundreds of billion dollars (in the USA - about 400 billion dollars).
Americans unite in this industry all kin branches of economy specializing in providing services to travelling people by specialized enterprises: hotels, restaurants, tourist agencies, national parks, recreation parks, etc. In the USA this industry is second important employer supplying working places for more than 10 million people. Emergence in the market of such industry giants as «MacDonald's», «Pizza Hut», «Marriot» and others has turned hotel-restaurants activity from family, as a typically private owner of all property, into a powerful industry. In this industry transnational conglomerates dominate called in the Russian language «networks». The industry globalization has been accompanied by development of modern management forms: obtaining license rights (franchise), partnership, rental contract (leasing), managing by the contract, etc.
In Kazakhstan hotel-restaurant and tourism business because of many reasons has not as developed as in the USA; studying economic and management basis has not turned into an independent branch of economics science and management and marketing of hospitality services have recently started to be taught in Universities.
Accommodation is an important tourism element. No accommodation (night stay), no tourism. It is an immutable and rigid demand of any tourist region or center economy expecting much revenue from tourists' acceptance and exploiting their tourism resources. Hotel industry is a core of hospitality system. It takes roots from ancient traditions that are characteristic of any social formation in human history - respect of guests, celebration of their acceptance and servicing. It should be noted that there are tourists' centers and areas living with money from transit tourists and excursions. But in this case to receive big income the tourist' product must have a significant product component.
Means and systems of accommodation as main devices are buildings of different types and sorts (from a hut and bungalow to super gigantic hotel) that are adapted to accept guests and organize the night stay with different level of service. The number of births in the hotel sphere is the main index used to estimate the potential of a tourism center or region for tourists' acceptance. Hotel industry as a type of economic activity includes providing hotel services and organizing a charged short-term stay in hotels, camping, motels, etc.
In the international practice it is accepted a standard classification of tourists accommodation which is designed by the WTO experts.
Growth of public welfare and reduction of working hours in the developed countries make tourism a really mass one and transport development (air, railway, motor) much increases the
population's mobility. At the same time we can observe growth of business trips. Mass demand of tourism services leads to formation of a powerful recreation industry. Accommodation enterprises (hotels, inns, holiday homes, etc.) are referred to tourism industry subjects. The tourism industry itself is a multi-branch industrial complex engaged in reproducing conditions for travel and recreation that is making a tourism product. A gradual transformation of hotel business from industry of small enterprises in private ownership and managed on independent base into a modern industry with various types of ownership and management: franchising, partnership, rent and contract management. In the globalization conditions big hotel networks owning hotels around the world become more and more significant and the tourism product becomes more standardized. At the same time an original approach to a client and originality of the tour. We can speak about a true hotel boom at the end of XIX c.: along with luxurious five-star hotels different boarding houses, holiday homes, camping and tourist' centers. Gradually hotels of lower class improve standards of service quality and comfort due to the increasing competition in the market.
With consequences of the economy crisis in the European market hospitality industry in different Asia parts is developed by leaps. According to the experts' data the potential of Kazakhstan in the sphere of hotel business can be realized in near future very well.
The research, the goal of which was to estimation analysis of the current condition, development perspectives of the RK tourism, was done in the frames of 12th international tourism exhibition - Astana Leisure 2015. Representatives of 80 home and foreign companies took part in the research, 18 of which are tour agencies, 14 are tour operators, 8 are state and public organizations, 8 -hotels, 4 - airlines, 28 - media, education institutions, etc.
The respondents' representativity of countries and regions was as follows: Europe and Near East - 6,25%, Asia - 2,5%, countries of CIS - 8,75%, cities of Kazakhstan (except Astana) -23,75% and the exhibition host - the capital of Kazakhstan - 58,75% interviewed.
In the research we learned that 9 out of 80 respondents (about 11% interviewed people) considered the situation in the tourism market of Kazakhstan unsatisfactory. 37 people (47%) thought the situation in the market satisfactory, 32 respondents (over 40%) - good, the rest 2 men (2%) estimated the industry abilities as exellent.
11,25% respondents of the survey considered the perspectives of incoming tourism for the nearest years as excellent, 21% thought them weak or even did not expect any progress, the rest 67,7% participants estimated them both as good and satisfactory.
The total accommodation capacity in Kazakhstan in 2014 was 1559 places. The room fund reached 39 274 rooms that showed growth by 3,9% in comparison to the previous year. However, as for the demand the mean value of the room fund occupancy from January to June of the current year was only 23,7%. To compare: this index in the Russian Federation is 36,6%, in Malta and Cyprus it is even 72,9%.
One cannot but note growth of interest of the international companies to enter the Kazakh hotel market. The experts consider it as one of the features of sector prospectivety. We can observe competition between the hotels in Astana. According to the Statistics Agency data 72% visitors come to the city on business that is a result of business activity increase. Marriott Astana, Hilton Garden Inn Astana and Ritz-Carlton have been opened. Thus, the construction order of Hilton Garden Inn Astana was given by LLP «Expo-Center Astana». It should be noted that an important role in hotel sector of Astana plays the future exhibition EXP0-2017 that will approximately attract over 4 million people.
Coming back to the western region we can say that due to the victory of LLP «Accept Construction LPP» in the republic contest of 10 best regional start-ups in the tourism sphere announced by the Committee of tourism industry in Aktobe appeared the first hotel Sheraton of the international networks Starwood. According to Roeland Vos, President of Starwood Hotels & Resorts Worldwide, Inc. In the region of Europe, Africa and Near East, entry in the new markets is a priority strategy of the company and opening Sheraton Aktobe will become an important stage of expanding the network in Western Europe.
According to Veritas Brown, in Kazakhstan the crisis to a bigger degree affected the hotel market of Almaty where the room occupancy index reduced by 16% (38,4% in 2007 compared to 29,1% in 2008 and 22,3% in 2009). However the situation began to improve: in 2011 the average occupancy increased to 26,3%, and in I quarter of 2012 was 45,1%. The activity of some complexes in the south capital conditions by seasons: summer is a dead season and higher activity falls on autumn period. In IV quarter of 2012 we could observe high levels of room occupancy due to big exhibitions and conferences - KIOGE, Agro World Kazakhstan, KazUpack, Power Kazakhstan, World Food Kazakhstan and others. As for the medium-term prospects about 850 extra rooms are supposed to implement but there is a possibility that objects commissioning will fail to comply with the time limitsb.
If to speak about prospects of hotel market development in Kazakhstan in the nearest few years the positive dynamic will increase given the stable economic development. Clients' outflow is registered in the more democratic segment that is three and four-star hotels. In the first place it
concerns business tourism because companies start saving finance and search variants of their workers' accommodation with a more acceptable price. On the other hand, we can observe a tendency of price growth for hotel room in five-star hotels: if in 2009-2010 they had quite a flexible price policy then in the following year the daily fees increased.
2013 can be called the year of hotel business: new players appeared in the market, investors actively sent finance into that segment, and transactions were done with foreign companies, income growth (fig. 1). The segment of lux hotels caused most interest that is hotel complexes of VIP class.
3500 3000 2500 2000 1500 1000 500 0
Fig. 1. Growth of hotel business income (from 2009 to 2013, thousand) Note - the report of LLP «Alpari» (Rixos)
Now in Kazakhstan work 17 five-star hotels, some of them have existed for decades whereas other have just come in the market. Who mostly fill in hotels?
Mainly they are those who are on their business trip. Kazakhstan infrastructure for tourists is not well developed. Though the tourists' flow growth from year to year it is not enough to fill in all hotels. It should be said that the first flow is business-tourists. There is a separate cluster that is those who travel around the country, more often they are on business trip. The fact is that part of that flow prefers to rent a flat or stay in a private hotel. In Kazakhstan there are 1500 thousand hotels that cannot be referred to any of the hotel category. They exist but to receive a star or a category the owners themselves do not want to be inspected. The inner flow of tourists in the country is stable but they are different in their demands. In Astana, for example, the hotel occupancy rate remains 40%. It proves the fact that business goes to Astana.
The tourists who come to Kazakhstan - 500-600 thousand people are foreigners (the data of Almaty department).
Thus, we can note that hotel business is directly connected with tourism development in this or that region, moreover new technologies, transport development continue promoting the growth of tourism and hotel industry. Travels become more comfortable, quicker and safe and the choice of services is constantly growing, astounding with its diversity. History of hospitality industry is closely connected not only with tourism and travel history but also with human civilization history in general: there are revolutionary changes and quite periods. Tourism share in the world trade is continually growing. We can say that number of tourists and travellers is determined not only by people's welfare, their social level, cross-countries and cross-cultural relations but increasingly determine them.
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