Catégories
Facts and figures Geographic markets

Antarctica 2006-2007: Another record-breaking season ahead

A Tourism Intelligence Network expert specialized in polar tourism, Alain A. Grenier sketches an overview of the Antarctica tourism industry. A PhD in Sociology and formerly an associate professor at the University of Lapland in Rovaniemi, Finland, he is now a professor in the Department of Tourism and Urban Studies at the UQAM School of Business Administration.

With the arrival of the austral summer in November, tourists – more specifically, cruise passengers – are once again heading to Antarctica.

The majority of Antarctic cruises take place in the Peninsula area, which is blessed with a less severe climate and a greater diversity of attractions (i.e. fauna, flora and a large number of scientific bases and historic sites). In contrast, the other tourism area, the more remote Ross Sea region, features almost exclusively historic sites.

In addition to the more traditional cruise programs combining observation and hikes ashore, a variety of new activities have started to appear in recent years, including scuba diving, sea kayaking, rock climbing, skiing, snowboarding and camping. It is impossible to say, at this point, if these new activities are the result of the arrival of younger and more active visitors, or if the new tourism profile is emerging in response to the products offered by tour operators. What is certain, however, is that Antarctic tourism is growing.

Figures

Compared to the last austral summer (2005-2006), the number of cruise tourists has risen by 12%(4) . This year, the International Association of Antarctic Tour Operators (IAATO), which represents 95% of the organizers involved in Antarctic tourism, expects nearly 38,000 visitors to Antarctica from mid-November to early March(4):

  • 27,575 tourists will participate in an Antarctic cruise with shore excursions (mainly in the Peninsula area)
  • 7,500 tourists will take part in a cruise only (no shore excursion)
  • 1,050 tourists will purchase a land tour (skiing, alpinism, etc., in the Antarctic’s interior)
  • 1,600 tourists will participate in a sightseeing flight (these flights, generally based in Australia, do not land on the continent and involve large planes like the Boeing 737-200 and 747-400, flying at about 2000 feet (610 m) above the Antarctic coast)

More than any other, polar cruises continue to dominate the Antarctic tourism market, with the number of passengers increasing year after year (Figure 1).

Figure 1

Source: IAATO (2006b)

While polar cruise tourism will continue to increase in the Antarctic Peninsula during the 2006-2007 season, the number of visitors to the Ross Sea region is expected to decline slightly(4). Compared to the 42 million visitors who entered the United States in 2004(7), the data regarding tourism in Antarctica – a continent 30% larger than the surface of the USA, may appear insignificant. To understand the importance of the figures presented above, it is necessary to put them into the proper polar tourism context.

A sensitive continent

Antarctica is a continent like no other. This continent, the only one without an indigenous human population, also has extremely limited surface flora and fauna (in species diversity). In summer, when the seas surrounding the polar continent are free of ice, Antarctica and its Sub-Antarctic islands cover an area of 13.6 km2. More than 98% of the continent’s surface is permanently hidden under a cover of ice(1)(3). This ice sheet – the biggest on Earth – may reach a thickness of up to 4.7 km in certain areas and contains no less than 90% of the plant’s fresh water reserves(3).

Tourism, like most other human activities, takes place during the very brief polar summer. This is also the reproduction season for most of the continent’s animal species, which are very abundant at this time of year. As a result, the less than 2% of Antarctic and Sub-Antarctic island lands free of ice and snow become very precious for both fauna and visitors (scientists and tourists alike). In such a context, there is a very good chance that fauna (and, to a lesser degree, flora) could be negatively impacted. The scientific community, however, remains divided over the extent of this impact.

Negative Impact

In addition to the pollutants released when tourism vehicles (ships, inflatable boats, helicopters, large and small airplanes) burn fossil fuel, the main disruptions directly attributed to tourism activities include soil disturbances (more limited in the Antarctic than in the Arctic) and fauna harassment (mainly birds). It is important to stress, however, that atmospheric pollution remains the biggest threat to polar ecosystems. Apart from the pollution caused by burning fuel to transport tourists, most of the air pollutants affecting Antarctica are produced outside area and can therefore not be attributed directly to tourism.

Trying to protect the very resources the industry depends upon, the IAATO has created a visitor’s code of conduct entitled « Guidance for Visitors to the Antarctic. » This recommends, among other things, the distances one should respect when observing the various fauna species. In the past, some observers(2)(6) have stressed that the guidelines are not applied consistently. The problem is that the code is enforced by guides, who must also see to their customers’ satisfaction. Many of these customers have a hard time containing their enthusiasm once ashore. Other visitors, who have invested considerable sums of money to reach these natural areas, sometimes feel they have earned the right to approach wildlife beyond the distances allowed. According to IAATO(4), however, the activities of its members have « no more than a minor or transitory impact on the Antarctic environment. »(4)

The organization worries, however, about the 5% of Antarctic operators who have not joined IAATO and therefore do not apply the visitors’ code of conduct. During the 2005 2006 austral summer, 4,639 visitors and an unknown number of small boat passengers set foot on Antarctica with no public record of their visit (4). In its annual report, IAATO(4) expressed concern over two non-member vessels, each carrying 500 passengers, who made shore excursions in spite of the IAATO regulation limiting site access to ships carrying more than 200 passengers.

The tourism forecasts made by IAATO for the 2006-2007 austral summer indicate that the travelling public’s desire for Antarctic adventures knows no limits other than those imposed by the number of ships and places available for such journeys. Negative impacts, as well as incidents involving tourism activities such as the sinking of the Bahia Paraiso in 1989, remind us, however, that tourism growth in such a remote and isolated place as Antarctica requires safe, sustainable management approaches.

Sources:
(1) – Cessford, Gordon (1997) « Antarctic Tourism – A Frontier for Wilderness Management, » International Journal of Wilderness, Vol. 3, No. 3, USA, pp. 7-11.
(2) – GRENIER, Alain A. (1998) « Ship-Based Polar Tourism in the Northeast Passage: A Case Study,  » Publication in the social sciences, University of Lapland, Rovanieni, Finland.
(3) – HANSOM, James D. and GORDON, John E. (1998) « Antarctic Environments and Resources – A Geographical Perspective, » Longman: UK.
(4) – IAATO (2006a) « IP 86 IAATO Overview of Antarctic Tourism 2005-2006 Rev 1, » International Association of Antarctic Tour Operators (Website), 21 p.[www.iaato.org/info.html]
(5) – IAATO (2006b) « Tourism Statistics, Trends 1992-2007, » International Association of Antarctic Tour Operators, [http://image.zenn.net/REPLACE/CLIENT/
1000037/1000116/application/msword/Trends1992-2007.doc
]
(6) – VUILLEUMIER, François (1996) « Negative Impact of Tourism on Antarctic Animals and Plants, » Southern Connection Newsletter, July, No. 10.
(7) – WTO (2005) « Tourism Market Trends, 2005 Edition, Annex, » World Tourism Organisation. [http://www.unwto.org/facts/menu.html]

Catégories
Human resources Issues

Recruiting tourism workers: The time is now!

The declining number of available workers in the labour force is becoming even more of a concern because tourism is not the only economic sector facing a labour shortage. This creates fierce competition; we are entering the era of the competitive labour market. Businesses must build reputations as desirable employers and think of their high quality workers as both product ambassadors and competitive advantages.

Challenges abound

The tourism industry is facing a monumental challenge when it comes to human resources:

  • The pool of available workers is shrinking. According to a study commissioned by the Canadian Tourism Human Resource Council, there were 1.67 million employees in Canada’s tourism sector in 2003 and, in the next decade, the industry could have problems filling over 300,000 new positions.
  • Staff turnover in the tourism industry is very high (around 30% in Quebec).
  • It is expensive to hire new employees.
  • Jobs in this sector are associated with instability and seasonal fluctuations. They are often considered transitional jobs to other careers.
  • Consumers are becoming increasingly demanding and expect employees in this sector to be knowledgeable about their products, accessible and easy to talk to, and capable of providing assistance.

Caught up in the demands of day to day operations, managers too often wait to hire staff at the last minute, relegating human resource management to a secondary level and failing to provide new employees with what they need to integrate successfully.

And yet, what can help a business reach its objectives, give it a competitive edge and ensure its development? « Happy employees, happy customers » is not simply a cliché; businesses must treat their employees the same way they would like them to treat customers, giving them the consideration they are due.

High staff turnover

Businesses need to examine their human resources from a financial standpoint. High staff turnover is a major financial drain. The time devoted to posting jobs, interviewing candidates, training new hires, etc., combined with lost productivity is very expensive. Managers end up working in reaction mode all the time, and waste precious time dealing with staffing problems instead of getting down to business and taking care of customers.

A recent study reports that the average turnover level in the US lodging industry is approximately 25% for management staff and around 50% for other types of jobs. In addition, the shrinking labour pool means the hiring process is becoming more and more expensive.

Businesses plagued with high turnover need to ask questions: Why do people quit? Are current employees satisfied with their working conditions? Managers who examine these issues are on the right track to solving their staffing problems. We are learning that the factors motivating people to change jobs are (1) a better salary, (2) more interesting working conditions and (3) opportunities for personal development. In a study published by Cornell University, most respondents said their primary motivator is ?the opportunity for personal and career growth and the chance to make a contribution to the organization.? Although there is no scientific way to define the ABCs of being a good employer, there are simple things one can do:

  • Hire the right person for the right job. Carefully define the profile of your ideal candidate. Do not hire overqualified individuals who will take off at the first opportunity on the pretext that the company cannot provide the challenges they seek. Select people who share the company’s values and who will make a difference. Taking the time to find the right candidate is an investment in the company’s future.
  • Pay employees what they are worth. Minimum wages often produce minimum performance and attract workers of minimum talent and motivation. Although quality obviously costs more, it can make a difference.
  • Take some time. Take the time to welcome new employees: explain the company’s vision and goals, the role they are expected to play and how their work fits into the chain of operations. Take the time to help them integrate into the workplace and listen to what they have to say.
  • Recognize the value of the work. Motivate staff by highlighting the good things about their job: the enjoyment experienced by visitors, the employees’ direct contribution to a service or product sought by tourists, the opportunity to work with people and make a positive contribution to the quality of their stay.
  • Create a workplace where people want to work. Compensation is not the only thing that counts. The work atmosphere, job enrichment, advancement opportunities, training, the attention and respect commanded by employees, steady feedback, team spirit and the proper work tools are all elements that help retain employees. It is also important to know how to play to each worker’s strengths by assigning tasks that suit the worker’s profile and interests.
  • Develop a reputation as a desirable employer. Candidates assess companies just as managers assess job candidates. It is important to encourage interest in working at your company. To this end, travel company Thomas Cook has developed an employer brand using two slogans as the basis of a major recruitment campaign: « Great people make our world go round » and « You’ll Go Far. » Companies must ensure their employees are proud to work for them and proud of their service. Happy employees make excellent service and product ambassadors and have a positive impact on customer satisfaction.

High staff turnover does not help a company’s image and leaves it constantly scrambling to attract both customers and potential employees.

Sources:
– Canadian Tourism Human Resource Council. « Total Tourism Sector Employment in Canada, » March 2005.
– Dalby, Colin. « Developing an Employer Brand at Thomas Cook, » Strategic HR Review, Vol. 3, No. 5, July August 2004.
– Gardinier Emmanuel. « Staff Turnover, You Can Fight It, » Hospitality Trends [www.htrends.com], March 14, 2005.
– Hendrie, John. « The Grass Is Always Greener – Good Retention Strategies Can Break The Myth, » Hotel News Resource [hotelnewsresource.com], February 14, 2006.
– Hendrie, John R. « Darwin Was Right – A Good Employee Selection Process Will Make You The Fittest! » Hotel News Resource [hotelnewsresource.com], January 16, 2006.
– Myers, Linda. « Free Web based Management Tool Helps Hotels and Restaurants Weigh Employee Turnover Cost, » ChronicleOnline, Cornell University, July 19, 2005.
– PKF Consulting. « Fixing a Leak in the Hotel Profitability Pipeline – How to Manage the Costs of Employee Turnover, » Hospitality Trends [www.htrends.com], October 14, 2004.
– Taylor, Masako A. and Kate Walsh. « Retaining Management Talent: What Hospitality Professionals Want from Their Jobs, » Center Reports, Vol. 5, No. 1, Cornell University, January 2005.

Catégories
Products and activities

Amusement parks: What can we expect in 2005?

The opening of the gigantic Tropical Islands theme park just outside Berlin has all of Europe talking. What amusement park trends will emerge in 2005? +++ The Commentary from Liping A. Cai, Professor and Director at the Purdue Tourism & Hospitality Research Center.

Water play

One segment in particular seems to be enjoying exceptional growth: indoor waterpark/hotel resorts. Although this trend could be a passing fancy, recent developments in this sector are too significant to ignore.

In North America, hotels with indoor waterparks are becoming increasingly popular and will continue to develop at a faster rate than the traditional hotel sector. In fact, according to some experts, in 2005 this new type of resort will experience an annual growth rate of 23% to 29%, while traditional hotels will only grow 1.3%.

Many facilities have already opened their doors and more are on the way. For example, in January 2005, Ripley Entertainment broke ground on a hotel/waterpark/aquarium complex in Niagara Falls.

This CA$200-million project is one of Ontario’s latest major family resort destinations. Covering 25 acres (10.1 hectares), the complex will include a 406-suite hotel (the Great Wolf Lodge), an indoor waterpark and an aquarium (to be built in 2006). Once the entire development is completed, it is expected to draw 2.5 million people annually.

Like the city of Orlando, Florida, Niagara Falls is developing at an incredible pace. Over the past few years, various tourist projects have transformed this small industrial town into a veritable vacation destination. Over 40 hotels and motels have been built in the past decade and the tourism industry pumps more than CA$1.73 billion into the local economy each year.

When asked about changes in the theme park industry, Philippe Pichon, Director of Development for Grévin & Cie in France*, emphasizes that locating a hotel near attractions (aquarium, waterpark, shopping mall, casino, museums, restaurants, etc.) creates a « one-stop shopping » effect that keeps customers on-site for an additional day or two. Captive visitors tend to take part in « local » recreational activities and stay close to the hotel.

In the medium term, it would not be surprising if this type of pairing (hotel/indoor waterpark) also became popular at winter sports resorts, golf courses, convention centres, etc.

Other changes on the horizon in 2005

  • Technology. According to Philippe Pichon, European parks are not likely to scramble for high-tech additions. Such a strategy requires a level of investment that only the United States can afford. Along these lines, in January 2005, LegoLand California announced it would build five new attractions at a cost of US$5 million, thanks to a significant increase in earnings in 2004 (+11%).
  • The China factor. China represents an enormous potential market, but it is uncertain whether it will turn out to be the expected windfall because only a small portion of its population can afford to visit a theme park. Mr. Pichon believes that it would probably be more profitable to develop recreational projects designed especially by and for the Chinese. Activities should be based on the Chinese culture and admission fees should be adapted to the Chinese standard of living. However, American amusement parks like Disneyland are unquestionably very popular among Asian tourists.
  • Distribution channels. Distribution channels are not likely to undergo any major changes. However, theme park operators could use the Internet more efficiently to enhance customer loyalty through targeted marketing campaigns.

The year 2004 in review

According to recent estimates from trade magazine Amusement Business and research firm Economic Research Associates, attendance at the United States’ 50 top amusement parks jumped nearly 4%, the first significant increase since the terrorist attacks of 2001 (this compares to the 2.2% rise recorded for the world’s 50 most-visited parks).

Some reasons behind this increase are the weaker US dollar (which probably encouraged European tourists to stay longer and spend more) and the desire of Americans to stay close to home.

Major amusement parks are fighting a fierce battle for customers: millions are spent on new attractions each month, each one larger and more modern than the next. For example, the Six Flags Group has announced five new « adventure » rides for its parks, including the Halfpipe, a U shaped, 100 foot high roller coaster in Denver, Colorado.

There is also the growing phenomenon of Retailtainment (a combination of retail and entertainment) (for more information, see Les parcs à thèmes en Amérique du Nord: maturation, consolidation et diversification). By transforming an entire shopping mall into an adventure, operators can hold the interest of both local and foreign visitors for several hours.

In Europe, the year was marked by two phenomena: profit margins dropped 7 to 9% and attendance fell. This was due to poor weather and the fact that demand was spread among an increased number of European products. Fortunately, average spending increased, which helped maintain overall sales.

As for the theme-park clientele, it is ageing. Although the children of baby-boomers are taking their own young families to amusement parks, these children are still too young – 0 to 10 years old – to constitute a new, distinct market segment. And teens do not have the purchasing power of baby-boomers. Furthermore, today’s young parents are less attracted to amusement parks. They seek educational opportunities and so prefer theme parks like Vulcania and Futuroscope.

* Grévin & Cie is a French company that operates thirteen recreational facilities (amusement parks, tourist sites, nature and animal parks) in the Netherlands, Switzerland, Germany, Great Britain and France, including Astérix Park and the Bioscope. In 2005, the company intends to pursue its Europeanization strategy. Finally, Grévin & Cie was also the company that wished to purchase Montreal’s La Ronde amusement park in the winter of 2000.

See also

On the web:
– Amusement Theme Parks
– Great Wolf Lodge
– Grévin & Cie
– Futuroscope  

Sources:
– Orlando Sentinel. «Forecast 2005: Theme parks outlook», 10 janvier 2005.
– USA Today. «Attendance at theme parks increases, reversing 2 years of decline», 13 décembre 2004.
– Fink, James. «Ripley’s Great Wolf start $200M N.F., Ont. project», The Business Journal (Milwaukee), 18 janvier 2005.
– Michelmore, Bill. «Indoor water park on tap», The Buffalo News, 15 janvier 2005.
– La Dernière heure. «À la recherche d’armes de distraction massive», 11 juillet 2004.

Commentary from Liping A. Cai

Many amusement parks feature water-based themes or activities, which can be created entirely man-made or staged with the natural setting of a water space. However, not all amusement parks contain water-based themes or activities for visitors; and the latter do not necessarily take place in the context of the former, which are mostly outdoors. Are the indoor waterparks within or adjacent to a hotel complex considered amusement parks? The author, who notes the increasing popularity of indoor waterparks as a trend, seems to believe so. Without engaging in a dispute on the definitions of amusement parks and indoor parks, it is perhaps more conducive to debate the role and trends of water-based themes and activities in developing a destination, be it a beach (lake) community, an amusement (theme) park, or hotel resort.

Water has been a product attribute of a destination as long as there has been leisure travel. It is presented in two major forms to please the senses and desires of visitors and guests. One form is natural, such as a scenic lake or river. The other is man-made, such as fountains and electric-powered waterfalls in an urban park. These two forms are certainly not mutually exclusive. A lakeside resort features both forms. The indoor waterparks and the pairing of hotel and waterparks are more tipped towards the man-made than the natural. A viable topic of inquiry is what underlies the popularity. Is it another me-too fad driven by competition for product differentiation? This is then not the first time that hoteliers have tried a water-based product attribute or amenity – whirlpools and Jacuzzis, indoor fountains and canals, and swimming pools even in the economy and budget hotel sector. Or, is it indeed a trend of an industry to respond to the demands of the market?

Water is life, and makes life itself possible. Water as an attraction to visitors and vacationers in the form of beach, lake, or river is rooted in the human’s dependence on and longing for water. The water flow links nature and humans through water’s many parallel functions as the « blood stream » of both the natural environment and the embedded human environment. Does the popularity of indoor waterparks suggest that the outdoor nature of water is less appealing? Do people seek a more controlled and safer environment to get close to the water flow?

It is very fitting that the author mentions the China factor in a writing that focuses on « water play » at amusement parks and hotels. The Chinese attach a great importance to water in leisure travel. In fact, an age-old Chinese idiom equates the leisure travel to « Touring Mountains and Playing Water ». If water is so significant to the Chinese visitors, then the element of water must be seriously considered in the planning and designing of destinations and recreational projects that target the China market. It is a myth, though, such destinations and projects should adapt admissions fees to the Chinese standard of living. Reports are not lacking that the Chinese traveling outside their Mainland outspend their counterparts from more developed originating countries.

Liping A. Cai
Professor and Director
Purdue Tourism & Hospitality Research Center
Purdue University