Chapter 1
The Problem and Its Background
In this chapter paper, the rationale, significance of the study, and scope and limitations of the study are presented. Moreover, the objectives of the study and the statement of the problem are formulated. Here, vital concepts, questions and assumptions are stated.
1.1 Rationale of the Study
Tourism is one of the recreational practices an individual undertakes. People who exercise tourism are called tourists. According to (2005) due to the fact that tourism is now one of the most popular recreational activity of people all over the world, in the year 2004 around 763 million tourists arrive in various parts of the world. Tourism plays a vital and crucial role in the economy of any country because the income and profit that is being obtained by the utilisation of products and services of the tourists will generate taxes which can be levied to the government. In addition, tourism provides employment and aids in the development of the economy of the nation. According to (2000) tourism is not just a recreational and decorative activity but instead tourism correlates centrally to the modernity in numerous dimensions such as politics, moral, economical and technological.
In Hong Kong, tourism was regarded as one of the important sector of their economy. Actually, Hong Kong is one of the most popular destinations in the world and the tourism industry is one of the most important aspects in the economy of Hong Kong. According to the (2007) the industry held another record last 2006 in which more than 25 million tourists arrived in Hong Kong. In order to maintain the number of tourist arrivals in Hong Kong, the tourism department plans, develops, and audits the possible competitive destination.
Hong Kong government gave efforts to enhance their tourism industry. Actually, Hong Kong created the Individual Visit Scheme in order to increase the number of tourist visitors. In Hong Kong tourism history, the outbreak of SARS in Hong Kong from March to June 2003 resulted in a sharp drop in the number of both Mainland and overseas visitors and the creation of Individual Visit Scheme was designed to allow travellers from Mainland China to visit Hong Kong and Macau on an individual basis.
1.2 Aims and Objectives of the Study
While the background of the study gives information regarding tourism and Hong Kong, the research also needs to have its own aims and goals that must be followed for the completion of the study as well as the integration of the information that will be gathered based on the research questions. At the end of the study, there is the need to ensure that each of the objectives is met in order to guarantee that the study has managed to gain the information that can garner for the formulation of the conclusion.
As such, the objective of the study will be thus:
To be able to assess the current status of economy of Hong Kong. To assess the perception of the respondents regarding the current status of tourism industry in Hong Kong. To investigate and clarify the effect of Individual Visit Scheme on Hong Kong Tourism industry.
In essence, this study aims to integrate all these information together and be able to assess their interrelationship and their relevance of their information. By integrating these information and coming up with a conclusions that will help with the information-exchange and thus may be the basis of other studies. Moreover, it may also be the bases of information that may be beneficial for other organisations in Hong Kong, especially with regards to the factors that the organisation may be find useful for its success. While this may not be the regular procedures that other organisations may take, it nevertheless may give other organisations a chance to build the foundation from which they may be able to push their organisation into a jumpstart, thus another objective of this study is to be able to provide true and useful information that may be used for other practical reasons and can be used for other reason as well as the improvement of the organisation or Hong Kong economy in the study itself.
1.3 Hypothesis
In accordance to the objectives, this study seeks to test the hypothesis:
“Hong Kong Individual visiting scheme has significant effect to Hong Kong tourism Industry.”
The Hong Kong tourism is considered as one of the pillars of the stability of the country. And after the SARs attack in 2003 which directly hit the tourism industry, the Hong Kong economy becomes unstable. In addition, the efforts given by the Hong Kong Industry to strengthen their operation reflects to the satisfaction of the visitors. If the tourist visitors are satisfied to the efforts given by the Hong Kong tourism, then it simply means that Hong Kong Tourism Industry is performing well. Actually, the scheme will greatly benefit Chinese residents in the mainland as well as the citizens of Hong Kong. However, nothing is perfect, Individual visiting scheme might increase the number of visitors in Hong Kong but when more and more people are going to Hong Kong, it is unavoidable that some mainland citizen abuse the opportunity.
1.4 Research Questions
The previously given discussion shows the general direction and aim of the study, as well as the purpose, however there is also the need for the researcher to elaborate some questions that will be enable to study to go into a certain direction, especially with regards to the nature of the problem being researched. The research questions will then serve as the guide for the researcher for the information that should be gathered from the sources as well as the methods in which they will be extracted from the sources.
As such, the following will be the research questions:
What is the status of Tourism Industry in Hong Kong? With regards to the objectives of this study, this particular question will identify if the Tourism Industry in Hong Kong are performing well as viewed by the respondents. This will also reflect if the individual visiting scheme is significant to the changes in tourism industry of Hong Kong.
Do Individual Visit Scheme directly affect the condition of Hong Kong Tourism Industry? As seen in the objectives of the study, this study will also identify if Individual Visit Scheme has positive and negative impact to their progress. This will also identify the significant effect of IVS to the changes in tourism industry of Hong Kong.
Is there any significant difference between the perceptions of respondents regarding Individual Visit Scheme of Hong Kong Tourism Industry with respect to their gender? The objectives of this research paper also consider the perception of the respondents. With this regard, the difference of perception in accordance to their gender will be assessed.
1.5 Significance of the Study
This work will be a significant to tourism authorities and business in Hong Kong. The researcher believes that the tourism schemes will curb tourism problems and will benefit the tourism industry and Hong Kong businesses as well. Also, this study may provide insightful recommendations on the subject of environmental issues that may become useful contribution in the field of Hong Kong economic progress. Finally, this study may provide authentications on existing theories on consumer spending or at least provide generalizations that may also contribute in the academe field (e.g., students and researchers).
1.6 Scope and Limitations
This research will only discuss issues involving the impact of Individual Visit Scheme in Hong Kong. However, related literature and studies cited for this study came from different parts of the globe so as to draw information about tourism, economic development and SARS impact. Other countries with similar experience will also be cited and discussed briefly. The outcome of this study will be limited only to the data gathered from books and journals. As this study is specific to Hong Kong, a similar study on other underdeveloped countries is further suggested. Projected time period for the implementation of this study will be at least three to five months, or if possible, even shorter than three months, as long as all the objectives of the study have been met. This research work was limited financially due to other expenses and projects/activities outside this study. Time was limited, too, due to other obligations apart from the study.
Chapter 2
Review of Related Literature
This chapter will be discussing the findings of related research to this study. It will provide a discussion on the significance of this study to the existing literature. Moreover, this chapter will discuss several issues regarding Hong Kong development and tourism based on the existing literatures. The following discussion chronicles the subject of Individual Visit Scheme, tourism, and SARS.
2.1 Overview of Hong Kong
Hong Kong is a Hong Kong Special Administrative Region (SAR) of China ( 2008). Being a SAR, Hong Kong enjoys a “one country, two systems” formula whereas China’s communists policies will not be imposed to it except defense and foreign relations matters (2008). This system is effective for the next 50 years, which started in 1997 ( 2006).
According to(2002), the mid-year population of Hong Kong was approximately 6.5 million in 1997. The actual population growth rate between 1987 and 1997 was 1.5% per annum, and the latest projected growth rate for 1996-2016 is 1.3% per annum. The problem of Hong Kong, however, is the severe aging of its population. 15 to 64 years of age accounts to 72.2 percent of the population – a great gap to the 14.5 percent of the 0 to 14 years citizens (2002).
The legal system of Hong Kong is based on the English common law. By occupation, community and social services workers account for 18.8 percent. The Severe Acute Respiratory Syndrome (SARS) outbreak in 2003 somehow upset the Hong Kong economy, but “a boom in tourism from the mainland because of China's easing of travel restrictions, and a return of consumer confidence resulted in the resumption of strong growth from late 2003 through 2005” ( 2008).
2.2 Tourism Development
Tourism development in the tourism literature is generally described as a mixed blessing. It can create new service jobs, provide people with greater income, and help develop the local infrastructure. Some communities have received significant economic gains from tourism development (1999). Nevertheless, tourism can also have negative economic repercussions, especially when there are large numbers of tourists (Smith 1989). As indicated in the study of (1996), for example, demonstrates how tourism in the Dominican Republic brought an inflation of land and food prices, and (1983) argues that much of the potential profit from tourism in the Caribbean is "leaked" back to industrialized countries that export food for tourist consumption in hotels and resorts. Tourism development affects local cultures in multiple and complex ways. Cultural authenticity is compromised when performances are staged for tourists ( 1978) and when artistic objects are created with tourist interests in mind ( 1976). For these authors, the commoditization of culture is equated with cultural loss. Cultural disruptions may also occur when there are wealth disparities between tourists and their hosts; members of a host community may begin to resent their relative poverty and seek ways to emulate the lifestyles of the tourists ( 1998). (1990) explains how this affects the Ladakhis of northern India: "By observing foreign tourists on vacation, the Ladakhis--the young Ladakhis in particular--easily come to believe that all Westerners are rich, that they work very little, and that the West is a paradise of consumer goods. Young people begin to despise the thinking of their parents and rush to embrace whatever is seen as modern." In sit uations where there are also significant cultural differences between guests and hosts, tourism development can be humiliating for those who are sought by tourists for their "exotic" cultural practices. Similarly, visitors to Thailand wish to see the Padaung "giraffe women," whose necks are elongated by brass spirals (Mirante 1990). In both cases, the tourists photograph but rarely interact with the locals, who are made to feel like curiosities.
Tourism has also been beneficial for local cultures. It is frequently associated with a revival of artistic traditions that were previously in decline, as well as the emergence of new forms of cultural expression. (1982), for example, describes how tourism has revitalized the production of several local crafts, including ikat textiles and wood carvings, in southern Sulawesi. Tourist interest in a local culture can also bring a greater sense of social solidarity and ethnic pride, as (1999) reports for the Cofan of Ecuador. Swiss Alps villagers are proud of the folkloric displays produced by locals for both local and tourist consumption because they demonstrate regional contributions to the national culture ( 1989). How tourism affects the environment also varies from case to case ( 2000). (1998:89-90), a harsh critic of the tourism industry, argues that tourism development often "diverts resources (energy, land, and water) away from the local population" and "puts heavy stress on the environment, since tourist sites require reconstruction of the landscape and increased use of petroleum products and toxins such as chemicals, fertilizers and pesticides." In Nepal, locals have depleted wide tracts of forested land in order to accommodate the growing number of hikers who demand wood for cooking, hot showers, campfires, and building materials. Further, the Nepalese environment is polluted with trash left behind by them and mountain climbers (1990). Tourism-related pollution in Jamaica is destroying coral reefs and harming local fish populations (Olsen 1997). On the other hand, environmentally friendly tourism, or ecotourism, contributes to local and global awareness of environmental problems and can provide a lucrative alternative to the destructive uses of the environment, such as logging ( 1999).
An unintended consequence of the host/guest dichotomy is that tourists are often portrayed as the primary agents of social change; i.e., the tourists themselves are responsible for bringing either positive or negative change to local communities. This line of reasoning implies that "good" tourists are culturally sensitive, socially responsible, and more likely to bring benefits to local communities, while "bad" tourists are only interested in superficial encounters with locals and do not care about the environmental consequences of their activities. Although there might be some truth to these assumptions, this approach downplays the agency of hosts and mediators. Members of destination communities often have some control over the local development of tourism ( 1998). Locals, for example, often seek jobs in the tourist industry. Young men in Barbados prefer low-paying service jobs in the tourist industry over stigmatized jobs as labourers in the sugar-cane fields ( 1997). Despite these realities, the anthropological literature on tourism tends to view host communities as relatively homogenous and often victimized. Mediators are those whose actions further the development of the tourist industry and/or shape the tourist experience. This includes government officials, tourism planners, travel agents, tour guides, and travel writers. Mediators are therefore a diverse group whose interests and agendas are sometimes in conflict with each other. These actors play a significant role in shaping tourist processes, yet their role has been largely neglected by anthropologists who have devoted much more attention to hosts and guests.
2.3 Effects of Tourism in the Host Countries
Anthropologists and other social scientists began to publish substantial works on tourism during the latter half of the 1970s. Their interests were widespread in accordance with the nature of their academic subjects and that of the phenomena embraced within tourism. Further, as has been noted by (1993), they produced work which reflected 'prevailing sets of academic predispositions'. These sets of predispositions may be arranged into two groups, concentrating broadly on either symbolic cultural issues or socioeconomic issues. It is the purpose of this article to draw attention to socioeconomic issues, which have of late been relatively neglected, and integrate them into the contemporary examination of globalization.
In contrast to the burgeoning research on symbolic cultural issues, work which deals primarily with socioeconomic issues has been decreasing, again reflecting the general trend within anthropology. The impact of tourism on communities became a preoccupation with anthropologists initially as a subsidiary to main research interests during the 1970s and later on became a central theme. Areas covered were broad, reflecting the diversity of interests, and case studies were usually isolated through lack of comparative material. This is apparent in the first major collection on the anthropology of tourism ( 1978), in which topics varied through marginal men, gender roles, cultural involution, cottage industries and tourism development. A number of key topics were notable: the modelling of tourist impact, the commoditization of culture and tourism as development.
Modelling of tourism impact remains popular ( 1993), and model boldly simplified a complex subject, albeit with a strong economic bias ( 1978). This is understandable given the quantifiable nature of economic data, but it denies anthropology's talent to reveal socio-cultural subtleties and hence produce a rounded picture of transformation. (1978) paper on the commoditization of culture has been very influential, despite his original fieldwork conclusions being challenged by other anthropologists. Culture as a commodity to be marketed is increasingly a subject for study and pervades many areas of research as noted above.
It is the issue of development which became the primary concern during the 1970s for those interested in the socioeconomic impacts of tourism ( 1974), especially the role it played in what has been termed the 'Third World', a trend which is exemplified in (1976). Tourism and development has continued as a central theme and diversified into related areas, including policymaking, politics and practice in rural communities ( 1987), economics and environment in South East Asia ( 1993) and regional development in the Mediterranean ( 1996). Characterized by regional case studies and micro-economic research, few anthropological inquiries into tourism have invoked macro-processes as fundamental generators. (1996) saw tourism as a form of imperialism, with metropolitan centres providing tourists and creating the service economy overseas, thereby emphasizing the link between tourism and industrialization. His is an evolutionary model, modernistic and decidedly problematic due to its inability to take tourist diversity seriously and its lack of engagement with political economy. More typical of the anthropological approach of regionally-focused ethnography is (1994), in his examination of micro-economic activity, observed with great cultural sensitivity.
The important differences between types of tourists, their varied impacts and relationships with the host community as well as historical factors, are well conveyed. Despite their breadth of interest, none of the above works has sought to situate tourism firmly within the broad process of globalization. Contemporary tourism is gainfully perceived as being one element of the larger process of globalization and should be approached as such by scholars, and equally, students of globalization would do well to pay attention to work on tourism. (1990) describes globalization in terms of global flows, which he labels with the suffix 'scope', for example ethnos capes, ideoscapes, mediascapes. It is reasonable to predict that an inhabitant of a region which is now part of such 'scopes' will have access to and experience of new ethnicities, ideas and media. In this sense tourism is a prime example of a process deeply embedded in global flows: it involves people travelling to distant locations, interacting with different cultures; it utilizes the technologies of the West which embrace the globe; it encourages the spread of financial and economic markets; it supports and is supported by a huge media and advertising industry; it facilitates the communication of ideas between people of different cultural backgrounds. (1990) recognizes tourism as an aspect of globalisation, as do and (1995), (1994) and (1995), who see it as the fastest-growing industry in the world and a major influence on world affairs, 'socio-political as well as financial and ecological'. Tourism is the epitome of global flows - the free movement of people around the globe, carriers of cultural capital, users of technological networks, transmitters of cross-cultural ideas; in fact, the tourist personifies globalization and is an appropriate symbol of late twentieth-century consumer culture.
Behind this rhetoric is the reasoning that tourism, in the context of globalization, is part of the world-system and its historical development. Its roots run deeper than the twentieth century ( 1975), it is culturally determined and is a fitting metaphor for the consumer lifestyle of today's capitalist economies. Anthropologists need to recognize the historical and cultural importance of tourism in the broader context of Western society and its experience, and perceive it as a crucial dimension of the globalizing trend of capital-driven consumer culture: otherwise they risk isolating tourism from the broader processes which scholars of globalization are dealing with.
2.4 Tourism as Business in Hong Kong
Hong Kong’s identity as one of the most promising and vibrant tourist destination in the world is uncontested. It projects an aura of opulence, efficiency, and high-tech competence ( 2002). Hong Kong had many unique competitive advantages such as the hardware and software required of a world-class city, including keen business acumen, well-developed infrastructure, versatile financial system, robust legal institutions, policies conducive to a free and open society, clean and efficient civil service, simple and low tax, large pool of talent and very cosmopolitan community ( 2003). Because of its abundance in several attractions, tourists flock their way to experience Hong Kong’s magnificence and top offers. Offerings for visitors of the region range from various to rich assortment of food, entertainment, culture and lifestyle. Hong Kong locates in a favourable geographic location in the centre point of Asia Pacific region with a minimum 5-hour fly reaching most of the areas worldwide. With the support of region’s hardware, events tourism thrives on this piece of land – commercial, social, cultural, educational in nature are present in this venue.
In 2006, the (HKTB) works its way to promote the region as “Events Capital” of Asia. There are several ways being studied, designed and implemented to realize such vision. The primary responsibilities of HKTB are to market and promote HK as a destination worldwide, as well as to take initiatives to enhance the experiences of its visitors once they have arrived. Its mission is to maximise the social and economic contribution that tourism makes to the community of Hong Kong, and to consolidate Hong Kong's position as a unique, world class and most desired destination (2006). The existence of the developmental action plans, policies, and programmes to promote Hong Kong as a top tourist destination is evident. With this known fact, there is a wide assortment of information that documented the efforts of developing its tourism planning and economy.
2.5 Individual Visit Scheme and Hong Kong Tourism Businesses
Tourism industry is one of the main assets of Hong Kong Government. Without this industry, Hong Kong would possibly have difficulties in maintaining their competitiveness. Basically, the establishment of Individual Visit Scheme was designed to augment the number of tourist visitors in Hong Kong and Macau. The need of this scheme was due to the SARS attack happened in 2003. That attack shakes the Hong Kong tourism industry which is actually threatening the economy of Hong Kong and Macau. The main motive for devising the Individual Visit Scheme was to enhance the economy of Hong Kong and Macau. At the initial stage of the scheme, there are only selected China’s provinces that could apply for visas to visit Hong Kong individually i.e. Beijing, Shanghai, and 8 Guangdong provincial cities ( 2008).
However, in July 2004, the scheme was extended to all 21 cities of Guangdong and to 9 other cities in Jiangsu, Zhejiang, and Fujian provinces ( 2008).
With this regard, the Individual Visit Scheme for Mainland residents to visit Hong Kong has gone a long way towards boosting the local retail and job markets. In 2005, Hong Kong received a total of 4.2 million Mainland visitors under the Scheme, bringing additional tourism receipts of around $6.5 billion ( 2008).
Though an external shock (i.e., SARS) was held largely responsible for the declining income in tourism-related sectors in the first half of 2003, the rising turnover in the tourism industry could not do much to pull the local sectors out of the slump ( 2006). In 2004 and 2005, aggregate spending of non-residents on local accommodations and other tourism services had been going up as a result of the Chinese government's permission to significantly increase the quota for Mainland residents to visit Hong Kong and Macao under the Individual Visit Scheme policy ( 2006). Real growth in these sectors however, is still far behind the performance of the tourism industry. In the long run, it is even anticipated that as the scale of the tourism industry expands, business prospects of some local sectors may shrink.
Today, companies within and outside the tourism industry are striving to deliver not only their products and services but also high or even world class quality and satisfaction that will lead to increased customer loyalty and market share. The significance of customer satisfaction and relationship with service quality, occupancy rate and profitability has long been exhorted by both management experts and researchers in the tourism field ( 1994 and 1996). The positioning in the Hong Kong’s tourism industry propelled marketing managers to build brand image for their names in order to create loyalty among customers and not to become reliant to Individual Visit Scheme policy. However, in line with this boosted brand-building initiative, organizations must address many issues to create brand loyalty among customers and improve its position.
On this case, organizations in the tourism business requires a massive amount of skill in specialized marketing that includes establishing sales quotas and maintaining relationships with tourists, local agents, corporate tour and even travel departments of major corporations, and more. Also, other external issues affect the company’s marketing operations such the emergence of the dreaded disease Severe Acute Respiratory Syndrome (SARS). It is perceived that the sudden onset of this disease among the Asian countries caused significant damages to the economic environment.
As one of the most visited tourist destination in Asia, the active role of Hong Kong as one of the economic drivers is acknowledge. With the emergence of various occurrences like the unexpected incident of SARS, the operations and market status particularly on the clientele aspect is affected. To address such, the management designs strategic plans that aim to bring back the prestige and ‘normal’ business processes of the tourism businesses.
Meanwhile, SARS, according to World Health Organization ( 2004) is a disease characterized by atypical pneumonia caused by the SARS corona virus (SARS ). In 2003, Hong Kong's economy was hurt by measures undertaken to control the outbreak of SARS, which spread there from China. Hong Kong's SARS epidemic is closely connected to its complex systems of mobility as a tourist centre and, at the same time, as a global-gateway city ( 2001; Sum 1999). Its rapid spread from Southern China to Hong Kong and thereafter to 30 other countries was related to the mobility and translational travel of these actors. According to Sheller and (2004), WHO recommended on 27 March 2003 that all areas with recent local transmission should screen every international departing passenger to ensure that those who were sick with SARS, or in contact with SARS cases, do not travel. Following that order, a travel compliance memorandum was issued on 2 April 2003 to warn those who intend to visit Hong Kong and recommended the deferment of all (except for essential) trips. These orders are done in order to minimize the international spread of SARS. These warnings also began to stigmatize Hong Kong as a 'no-go area' ( 2004). The (HKTC) recorded a vast drop of visitor arrivals between April and June 2003. With this fact alone, the operations of most tourism businesses were relatively and extensively affected.
Basically, the Hong Kong Tourism industry was comprises of numerous tangible and intangible components. The SARS event constituted a watershed incident for the theme and amusement park business and tourism industry in general. Certainly, SARS has impacted on the marketing operations of the tourism, entertainment, transportation, commerce and other industries ( 2003). Thus, the disease has slowed down entire sectors of the Hong Kong economy and threatened long-term development goals. To address the challenge of SARS, the management of every tourism businesses structured their individual strategies to do away with the adverse effects of the disease. Some tourism organisations implemented various marketing and management scheme, communications, and risk management plans to save the whole organization.
2.6 Tourism and SARS in Hong Kong
Much has been written and documented in the subject of SARS. Research studies vary from medical, economic, sociological, political, industrial, consumer, and business perspectives. Generally, a comprehensive authoritative guide for managing crises and disasters in tourism risk management for the Asia Pacific region was provided by and colleagues (2005) have conducted a research study on the SARS-related perceptions in Hong Kong. (2003) wrote an inclusive literature of the SARS epidemic in Hong Kong while (2005) discussed pertinent factors about SARS and its effects in relation to public health. enumerated the peculiarities of the disease like its novelty, ease of transmission in certain settings, and the swiftness of its spread through plane travel, joint with extensive media coverage; psychological impacts; international travel policies released by authorities; governments’ and press’ role in fair and balance communication and risk management; pre-departure screening in airports; screening and infection control capacities at points of entry into the healthcare system; and others. Incorporated in the research body are lessons learned during the outbreak and its effects on the overall scope of international travel.
Meanwhile, (2004) reviewed the spread and impact of the SARS virus within Southeast Asia from a human security perspective. It is intended that the utilisation of human security in this instance will not only provide a better understanding of the impact of SARS on regional states but will also advance the conceptualisation of the human security model ( 2004). Several empirical research studies conducted are bounded on the economic aspect. (2004) provided an assessment of the global economic impacts of SARS and a more comprehensive approach to estimating the global consequences of major disease outbreaks using the a global model called the G-Cubed () model. Specifically, (2004) focused on the economic impact of SARS in Hong Kong wherein the chronologies of SARS as the first deadly infectious disease of the 21st century – its spread in Hong Kong, number of cases, and affected regions. Also, demand and supply side is discussed.
In relation to tourism industry, numerous research articles are published. (2004) made a case study on the impact of SARS on Hong Kong’s tourism industry, with special attention given to the chronological arrangement of critical SARS-related events. Their findings affirmed that the epidemic had brought out negatively profound impact not only in Hong Kong but also to world tourism particularly strong impacts on Southeast Asian countries. (2004) evaluated the effects of SARS on the Chinese tourism and hotel industry – from Mainland China and territories like Hong Kong and Macau. Findings avowed that the overall effect of SARS to the Chinese economy is relatively minimal yet reiterated that the main lessons are deemed to be social and political in applications. (2005) also assessed the effects of SARS on Hong Kong tourism industry as they give an empirical evaluation of extensive body of knowledge on the pervasive effects of the disease to almost all industries related to hospitality, travel and tourism. (2004) expounded on the overreaction to SARS and eventual collapse of Asian tourism. They evaluated sensationalism brought about by various channels of communication (e.g. media) and provided significant facts about the real nature of the condition.
Other related studies on the effects of SARS in the tourism industry fall in the subject of consumers and their behaviours, and marketing management conditions. (2004) explored consumers’ perspective in their research wherein they discussed the reluctance of Hong Kong consumers in purchasing travel online due to issues like privacy, security and poor customer service, time savings, site usability and information provision. Other consumer-based researches are mainly focused on consumer satisfaction and other related issues. and colleagues (2004) investigated the patterns of behaviours and attitudes related to SARS prevention in Hong Kong’s cross border traveller population using the survey method. They found out several practises done by the respondents surveyed as follows:
ü Around 40% of the respondents were using masks all or most of the time in public places or washing their hands frequently (>10 times per day) and about one third avoided visiting crowded places in mainland China.
ü Around 70% of the travellers would have delayed medical consultation for influenza-like illness in China; 12.7% would not wear masks during such episodes of illness.
ü About 30% of the respondents used to wear masks in Hong Kong but not in mainland China.
ü Gender differences were also observed.
Lastly, (2006) examined the impact that SARS on the marketing management functions using the case study method. They provided recommendations for how uncertainty may be managed in increasingly ‘globalized’ world while aspects of strategic and risk-management, supply-chain management and corporate strategy, and planning are extensively discussed.
Records from (2004) stated that SARS outbreak in the 2002-2003 only resulted in 774 deaths. Together with weak domestic demand conditions, it resulted in low growth in parts of East and Southeast Asia (such as Hong Kong, Korea, Taiwan and Singapore) ( 2004). Generally, the outbreak of SARS directly and indirectly affected various industries of Hong Kong and the world. In this context, marketing activities prove to be necessary in creation of destination image and attraction and maintenance of profitable customers. These activities start with management of tourist destination, including infrastructure, environment and natural attractions, development of specific strategies and investments, segmenting and monitoring the tourist market, communication with tourist market, and organization and management of tourism marketing ( 1996).
2.7 Synthesis of Literature Review
Based on the literature and in the context of the study, incoming tourists and immigrants from the Mainland to Hong Kong play significant impact to the progress of the tourism industry of Hong Kong as well as their economy. With this consideration, the Individual Visit Scheme in Hong Kong as a tool to counter the declining number of tourist visits due to the effect of SARS attack in 2002-2003 is effective. Actually, the Individual Visit Scheme increased the number of tourist visitors in Hong Kong. However, the increase of tourists and immigrants in Hong Kong created not only positive results but also some drawbacks. Given the negative impact of tourism such as the increasing number of crimes committed by both locals and tourists, Hong Kong officials still continue to encourage the entry of tourist mainly because of several reasons.
First, the potential for tourism to generate foreign currency is important, all the more so in states which have artificial or controlled exchange rates, or which are, often as a result, suffering balance of payments problems. Second is the fact that tourism is labour intensive, and creates employment throughout the economy; tourists spend money on hotels, transport, and meals, but also on a wide variety of goods and services. Third is the fact that the tourism industry does not, on the whole, require expensive or complex technology or a highly skilled workforce. With the exception of a small number of complex projects such as operating an airline, investment in tourism is not comparatively expensive, and will often return a profit reasonably quickly. Finally, many states already have in place the basic and most important requirements for the development of the tourism sector; a pleasant climate, attractive scenery, historical sites, and friendly people. In other words, governments often feel that their state possesses an untapped economic resource, and decide to take advantage of it.
Chapter 3
Methods and Procedures
This chapter will be dedicated to the description of the methods and procedures done in order to obtain the data, how they will be analyzed, interpreted, and how the conclusion will be met. This section is to justify the means in which the study was obtained and will help in giving it purpose and strength as it will then be truthful and analytical. All these will help in the processing of the data and the formulation of conclusions.
Specifically, this research will cover the following: the research design and method, the respondents or subjects to be studied (which will include the sampling method), the data collection instrument, and the data analysis. These will be presented below.
3.1 Research Design
The research design chosen both qualitative and quantitative research, which uses explanatory methods in describing the variables wherein the data, situations, or other facts collected will be explained or correlated with other data. It is especially useful when conducting a study wherein the data are immeasurable, such as feelings, beliefs, thoughts, and others (, 2000). Furthermore, the study will be descriptive as it will focus on the conditions set and the nature that surrounds the data and does not focus on the correlation with other collected facts.
3.2 The Respondents
The researcher, in choosing subjects or respondents for the topic at hand, is usually thought of to have the power over who the respondents of the study will be. Such a task would have been easier, except a researcher cannot simply choose out of whim; the subjects must be selected carefully with the intention of having subjects who each posses characteristics that, when put together, will represent a community. It is not only themselves, whom these subjects will represent, but the bigger whole or the whole population. The characteristics which the researcher has chosen them for will determine which part of the community they belong and what part of the community they are representing. Thus, the choosing of the subjects must be based on their characteristics.
In this study, it is necessary to collect information from Hong Kong Tourism’s clients.
3.3 Data Collection Instrument
In order to obtain the desired data, the researcher has chosen to use the primary research data, which is to collect firsthand the data to be used for the outcome of the research. In able to do this, the researcher must have a data collection instrument to be presented to the respondents. Thus, the researchers have chosen obtaining data through the questionnaire. The questionnaire is administered by writing questions on a page and distributing it to the respondents, expecting them to return the paper with their answers on it. This is easier than other methods of data-collection (e.g., interview, observation, etc.) as particular details may be hard to talk about during interviews and cannot be drawn out from observation.
The advantage of using the questionnaires method is that the respondents have time to think of their answers, thus allowing smaller rate of errors. Also, concerning delicate matters, the respondents may feel more at ease when answering questionnaires as they are not required to speak with someone else in order to give information. The disadvantage of the questionnaire method is when the respondents are unable to read or write; then the questionnaire will be rendered useless by the respondents as they may need interpreters for the questionnaires. Thus, in case such that unlikely event may happen, then the researcher will have no choice but to quickly switch to the interview method, wherein the researcher will be allowed to interact with the respondent and ask the questions based on the prepared questionnaire.
3.4 Instruments to be Used To determine the perception of the respondents about the status of Individual Visit Scheme and Hong Kong Tourism, the researcher prepared a survey-questionnaire. The respondents graded each statement in the survey-questionnaire using a Likert scale with a five-response scale wherein respondents were given five response choices (1994). The equivalent weights for the answers were:
Range Interpretation
4.50 – 5.00 Strongly Agree
3.50 – 4.49 Agree
2.50 – 3.49 Uncertain
1.50 – 2.49 Disagree
0.00 – 1.49 Strongly Disagree
The decision was made to use a questionnaire for the data collection for this project due to the sensitivity of the information being obtained. It is important for the respondents to be open and honest in their responses. The use of the questionnaire provides the project owner with the ability to test the views and attitudes of the respondents. The questionnaire was designed to allow the collection of specific information about the participants to conduct statistical analysis, e.g. age, gender, and social status.
3.5 Data Analysis
In order to correctly interpret the data in such a way that its result will reflect what the study originally intends to show then the researcher must employ the correct and accurate way of data analysis.
Moreover, simple statistics can be done and applied, and it will be easier to determine the status of the perception of the respondents regarding Individual Visit Scheme and Hong Kong Tourism.
3.6 Summary of Action
As stated in this chapter, the researcher undergoes stages. In the research design, the researcher collected secondary data and formulated and developed the questionnaire. In this stage, these instruments were subjected to approval and validation. During the data collection, the researcher collated and summarized the data obtained from the Hong Kong development reports, questionnaire and survey. The researcher analyzed these data and from these, findings and recommendations were presented.
Chapter 4
Presentation, Interpretation and Data Analysis
In this chapter, the data gathered from the tourism clients of Hong Kong in relation to the research objectives. This chapter discusses the result of the semi-structured questionnaire responded by 102 participants. Before the initiation of the research study the significance, rationale and purpose of the study were provided respondents. Furthermore, the respondents have also been given the assurance that all the data they will give are used for the purpose of the research and the identities of the respondents will be confidential. The object is to to be able to assess the current status of economy of Hong Kong, to assess the perception of the respondents regarding the current status of tourism industry in Hong Kong and to investigate and clarify the effect of Individual Visit Scheme on Hong Kong Tourism industry.
The conduct of this study entails a detailed account of the demographic profile of the respondents. It is assumed that the attributes of the respondents influence their behaviour and answers on the survey questions. Of particular significance to the achievement of the goals and objectives of the study – which is to be an instrument of analysis of the institution to gauge where it is now and where it is heading, thus what changes are to be made – is to be able to answer the research questions.
Part 1: Demographic Profile
This part will discuss the demographic profile of 102 individuals who answered the survey questionnaire sent by the research. The description of the respondents includes their gender, age, educational background, occupation, and types of employment.
Frequency Table 1
Figure 1
The figure above presents the distribution and frequency in terms of the age of the participants. Herein, it shows that 35 (33%) of the total respondents are 51 above and 24% belongs to 31-35 and 16 (16%) belongs to 46 to 50. this means that most of the tourists which have been included in this research are adults who are more experienced when it comes to travelling.
Frequency Table 2
Figure 2
Figure 2 shows the distribution of the tourists who participated in the study in terms of gender. Herein, it shows that 88(86%) were male and 14(14%) were female. This may indicate that males are more interested to participate in survey and researches than women.
Frequency Table 3
Figure 3
The figure above displays the educational attainment of the respondents of this study. The data gathered revealed that 66 (64%) out of 102 respondents are graduate and 19 (19%) are post graduate. Only 17% of the respondents have not been able to finish their studies. This could indicate that the respondents chosen in this research have a good education which may help them understand more the issue and objective of the study.
Frequency Table 4
Figure 4
The figure above presents the types of employment/service where the participants belong. Herein, it shows that half of the respondents 52% are working at government agencies and department while the other 50% are working at MNC and private employment. Such result shows that each of the group has an equal representation for this study.
Part 2: Perception of the Respondents
This part of the paper will discuss and analyze the perception of 102 respondents who participated in this study. The discussion will focus on the Hong Kong tourism.
Letter to the Respondent
To the respondent,
Greetings!
The researcher is conducting a survey concerning the Impact of Individual Visit Scheme on H.K Tourism Industry. To enable the researcher to make the necessary conclusions and recommendations for this study, it would be very much appreciated if you answer all the items in this questionnaire.
Information given will be treated in strictest confidence.
Thank you!
The Researcher
Survey Questionnaire
Part 1. Personal Data Direction: Please fill up in all the necessary information about yourself. Do not leave any item unanswered.
a. Gender
( ) Male ( ) Female
b. Age Group
( ) 18-22 ( ) 23-27 ( ) 28-32
( ) 33-37 ( ) 28-42 ( ) 43-above
c. Civil Status
( ) Single ( ) Married ( ) Separated ( ) Widow/Widower
d.
e. Highest Educational Attainment
( ) Completed Primary ( ) Completed Secondary
( ) Undergraduate ( ) Graduate
Part 2. Perception of the Respondents Directions: Check the best choice that accurately corresponds to your answer.
SD
STRONGLY DISAGREE
D
DISAGREE
U
UNDECIDED
A
AGREEE
SA
STRONGLY AGREE
STATEMENTS
SD
D
U
A
SA
Impact of Hong Kong Tourism Industry to their Economic Stability
Hong Kong Tourism businesses were severely affected by SARS that causes significant damage to Hong Kong Economy.
Hong Kong Tourism is important to the stability of the economic condition of Hong Kong.
The attack of SARS in 2003 threatens the tourism industry and Hong Kong economy.
The Individual Visit Scheme has both long-term and short-term effects to Hong Kong.
The increase in the number of Mainland tourists has some benefits the economy of Hong Kong and may demonstrate that the economy is on an upward track.
The Individual Visit Scheme helps the Hong Kong economy to recover from SARS attack.
Perception Towards Individual Visit Scheme
The Hong Kong’s Individual Visit Scheme is an excellent approach to counter decreasing number of tourist visitors due to the attack of SARS in 2003.
With regards to the threat of SARS in Hong Kong, the creation of Individual Visit Scheme augments the number of visitors in Hong Kong and Macau.
The Individual Visit Scheme is an advantage to Hong Kong’s non-tourism businesses.
As a result of these global threats, the number of visitors and tourists who visited Hong Kong tourist destinations decreased thus, Individual Visit Scheme is necessary.
The Individual Visit Scheme helps encourage visitors to Hong Kong.
Perception Towards Hong Kong Tourism
With respect to the Individual Visit Scheme, the Hong Kong Tourism is continuously growing.
I am satisfied to the current efforts of the tourism industry in enhancing their operation.
The Individual Visit Scheme is an advantage to Hong Kong Tourism Industry because it also shows improvement of services.
At the time of SARS attack in 2003, competition in Hong Kong Tourism industry was no longer stiff during the outbreak of the disease growing worldwide but the efforts of Hong Kong Tourism industry put back their composure.
The Hong Kong Tourism Industry was performing well.
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