Geography Reference
In-Depth Information
resources and industry leverage that these organisations can wield in the tourism
business, they are able to exact advantageous business terms and the introduction of
computer reservation systems (CRS), now referred to as global distribution systems
(GDS), which provide not only integration of the supply chain but also a competitive
advantage in revenue generation through bookings made through these systems.
Papatheodorau (2003) examined the oligopolistic behaviour (i.e. bargaining power) of
the transnational tour operators in the Mediterranean in relation to their corporate
strategies. He observed that in the UK mass package holiday market (see Page 2003a for
an analysis of the organisation and licensing of this market), over 54 per cent of overseas
holidays by UK residents were to the Mediterranean, with demand concentrated in Spain
and Greece. This accounted for a £12 billion tour operator business in the UK in 2000,
and it is widely accepted that local producers and specific destinations heavily dependent
upon mass tourism may see oligoposonistic behaviour in the way contracts in the supply
of services are negotiated. These may seek maximum discounts and long settlement terms
on payment of goods/services supplied to tour operators, reinforcing Ioannides' (1998)
argument that tour operators are gatekeepers to tourism, applying a similar concept to that
developed by P.Williams (1978) with an analysis of housing markets and how agencies
such as building societies can 'redline' areas. This means that building societies delineate
areas they will not lend in. In a similar vein, tour operators can redline destinations, based
on previous experience of tourist problems, particularly terrorism, a feature which
affected the Kenyan tourist industry post-2002 with Al Qaeda attacks on resort areas. A
combination of tour operators and insurers can effectively redline resorts and
destinations.
Britton (1991) also indicates that the state has a fundamental role to play in
encouraging industry groups to meet and co-ordinate problem-solving such as reducing
critical incidents (Bitner et al. 1990) in the supply chain. In addition, the state makes a
major contribution in terms of funding the marketing of regions and destinations via
national and regional tourism organisations (D.G.Pearce 1992b) so that place promotion
takes place (Ashworth and Voogd 1990a, 1990b; Page 1995a). The state may also offer
inducements to underwrite major supply inputs where territorial competition or
development may not otherwise occur. Interventions in the market include the
underwriting of national 'flag-carrier' airlines (see Kissling 1989), and public economic
and welfare goals are emphasised to justify state intervention.
One of the interesting areas hitherto ignored in geographical research on tourism
supply is labour supply and markets (see Shaw and Williams 1994 for a good synthesis of
the literature). Since in the tourism business many workers simultaneously provide and
are part of the consumed product, service quality assumes a vital role. This is broadened
in many research studies to include the 'tourist experience' (Ryan 1997). While Britton
(1991) rightly points to the role of capitalist social relations in the production of tourist
experiences, such experiences cannot easily be characterised as tangible elements of
tourist supply. This poses major difficulties for capital, where quality of service is easily
influenced by personal factors, the behaviour and attitude of staff, as well as by the
perception of the consumer in relation to their expectations, values and belief system.
One result is that much of the demand for labour is not necessarily recognised through
formal qualifications but through personal qualities, which leads to an undervaluing of
labour. Add to this the fact that the labour willing to supply such skills is often casual and
