Ethical Approach in Managing Resources in Tourism, Hospitality, and Events

Case Study Report
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Case Study Report
Managing resources in tourism, hospitality, and events (TH&E) requires an ethical approach to issues because the interrelation between the locals and tourists can be complex. The resources needed in TH&E include physical, human, financial, operational, and intangible resources (Evans, 2015). Effective management of these resources can lead to a competitive advantage for firms in the tourism, hospitality, and events industry. Also, certain issues or concerns can arise in TH&E resource management. For this report, Case study 1 will be examined. This case involves Travel Masters Elite, a small tourism enterprise based in Australia that offers get-away holidays and trips to Fiji. The founders of this enterprise wanted to establish its operations in an African nation. The founders saw the African nation as a great tourist destination site that would offer them an opportunity to simultaneously expand their product offering and help grow the economy of an emerging African country. After selecting an African nation to establish their operations, they arranged meetings with key stakeholders, and at first, they seemed to be receiving support from the stakeholders. However, they encountered issues that raised significant resource management concerns. The key resource management concerns encountered in this case are:
* Access to physical resources such as transport equipment, bedding, and safari tents
* Challenges in acquiring intangible resources such as business contact networks as well as legally defensible business licenses
* Access to a skilled workforce through collaboration with local tour guide companies
Without these resources, it would be difficult for the founders to establish their operations in the African nation. There were many practices in the new country that raised ethical issues for Travel Masters Elite. This was especially problematic because the company was founded on ethical principles and practices. The founders wondered how they would establish a socially responsible and ethical business in a country where norms and practices presented a challenge.
Analysis
The three resource management issues identified in the case have a significant impact on the success of Travel Masters Elite operations in the African nation. As such, it is important to analyze the underlying causes of these issues to ensure an effective solution is established.
Concerns in Accessing Physical Resources
The first issue involves concerns in accessing physical resources such as food for tourists, transport equipment, bedding, and safari tents. The founders had already identified suppliers who could provide them with food for tourists. There was, however, an issue concerning the ethical behavior of these food suppliers. These food suppliers were suspected of working closely with individuals who could be considered black marketers in western countries. Also, they had already found a supplier who could provide them with bedding and safari tents. However, they soon realized that this supplier engaged in unethical labor practices. Workers employed by this supplier worked for over ten hours a day, and they were not paid for working overtime. As a result, travel Masters Elite founders felt that these workers were overworked and underpaid. Another issue relating to the management of physical resources involved the sources of transport equipment. Travel Masters Elite founders quickly discovered that the relatives of government officials owned most outlets for vehicle sales, and they had a monopoly in that area. This left the founder with very limited choices, which also influenced their ability to engage in ethical practices.
Concerns in Acquiring Intangible Resources
The second issue involves challenges in acquiring intangible resources such as business contact networks as well as legally defensible business licenses. In TH&E, having a vast network of business contacts is essential. Sotiriadis and Gursoy (2016) revealed that tourism and tourism experiences rely heavily on a range of supply chain activities. Separate businesses provide separate products and services to enhance the tourism experience. However, failure in the supply chain of one business can significantly affect the whole tourism experience. For instance, in the case study, Travel Masters Elite has to work with several businesses to offer a great travel/ tourism experience. They needed to work with local garage and mechanical workshop to service their transport equipment. They also needed to work with a local hotel chain that would provide accommodation for the tour company and catering services to the tourists. Finally, they needed to work with a local tour guide company that would provide human resources on the ground. These require the founders to establish a reliable network of business contacts that would ensure they have access to this wide range of supply chain activities. However, albeit making contact with potential local businesses networks and receiving initial support, the founders experienced challenges in establishing meaningful business contacts. In addition, permits and licensing are important resources in TH&E, and companies operating in the TH&E industry need to acquire permits and licenses from local governments to start operations in foreign countries. Travel Masters Elite needed to acquire business permits and licenses from government officials in the African nation. However, they were having difficulty gaining total support from government officials whose support of the company’s business plans was an instrumental part of the successful launch of the company’s operations.
Concerns about Human Resources
The third issue involves access to a skilled workforce. The founders had already identified how to manage human resources by collaborating with local tour guide companies that would provide tour guides and other support staff. However, they were expected to make “required payments” to such local companies before receiving any services or sealing the negotiations. This posed a problem because although human resources have mobility and can be substituted, the founders needed a local workforce to facilitate successful operations. As Hu and Wall (2013) reveal, human resources, such as tour guides and operators, play a significant role in enhancing the tourism experience. This is because they have a better understanding of the local culture, traditions as well as the geographical layout of the tourist destinations. Thus, using local workers is crucial for the success of the international tour and travel companies. Also, there was the issue of labor practices in the country. Employers, such as the factory owners, had a reputation for engaging in unethical labor practices by overworking and underpaying their workers. It seemed that this practice, just like bribery, was part of the culture and a normal way of doing business in the country. Yet, Travel Masters Elite needed to work with companies that treated their human resources fairly. They also needed access to a skilled local workforce that could give tourists a great tourism experience. However, how human resources are managed and treated is also hindered by the ability to offer a great tourism experience. According to Hu and Wall (2013), poor management of human resources diminishes the quality of the tour guiding services, which ultimately affects the tourism experience.
Causes of the Issues
One of the causes of these issues was the widely accepted culture of bribery in the country. The founders of Travel Masters Elite were expected to make some “required payments” to government officials to receive the necessary permits and business licenses before starting operating in the country. They were also expected to make the same payments to small business owners before finishing their negotiations with them. This form of corruption hinders tourism development because it reduces the demand for tourism (Poprawe, 2015; Saha & Yap, 2015). Tourists do not want to visit countries where they have to pay bribes for services to be delivered. Already, Travel Masters Elite’s founders considered this culture distasteful because it went against their ethical practices. Also, even if they agreed to pay the req...