Unit 2 Hospitality/ Tourism Entrepreneurship

Hospitality / Tourism Entrepreneurship

- The hospitality entrepreneurship targets: food, recreation,
accommodation for those who are away from home for longer or
shorter periods of time, including hotels, restaurants and
commercial activities such as: guest houses, snack bars and fast-
food establishments. Tourism is a sector that is growing strongly
again, creating jobs and driving economic growth.
- Derived from the Latin word “hospitare” meaning to “receive
as a guest” the friendly and generous reception and
entertainment of guests, visitors, or strangers. Relationship
process between a guest and a host relating to or denoting the
business of entertaining clients, conference delegates, or other
official visitors.
- Hospitality, the service provider is “ part of the product” for
guest to be satisfied, they not only must believe that they have
received a valuable service for their dollar, but also feel valued
and respected by workers providing the service phenomenon has
created fresh opportunities for hotels and hospitality
entrepreneurs to engage guests.
- The hospitality industry or enterprise includes the companies or
organizations which provide food and /or drink and / or
accommodation to people who are away from home. Hospitality
industry can be divided into five career areas: Accommodation,
food and beverage service, recreation and entertainment,
transportation and travel services
-Providing service to people Worldwide example of
entrepreneurs creating small business that became big business
are Mc Donald's, Holiday Inn hotels
- The objective of hospitality industry/ entrepreneurship is to
make the guest feel welcome personally, making sure that the
operation will continue to provide service and meet its budget,
provide quality Customer service.

-Tourism entrepreneurship is concerned with various tourism

enterprises such as hotel, motel, home-stay, restaurant, resort,
travel- agency, skiing, gliding, rafting, cable-car, trekking , hot –
air ballooning, golf-course etc.
-Tourism is the major industry of Nepal because it has amazing
extremes and fascinating beauty. It is land of Gorkhas, birth
place of Buddha, highest peak Mt. Everest.
-Nepal is also rich in bio-diversity having various topography
such as Mountains (Himalayas), Hills and Terai.
Tourism entrepreneurship is related with providing various
tourism products.

Types of Tourism Entrepreneurship

According to Tourism Policy, 2008; some of the Tourism
Entrepreneurship is classified as follow:
Business Tourism: conferences, Trade fairs, cultural fairs
Mountaineering Tourism: Trekking, mountain climbing
Water Tourism: Rafting, Boating, canoeing etc.(Water sports)
Adventure Tourism: Bungi-Jumping, paragliding, sky- diving,
Heli-ski, skiing
Cultural Tourism: cultural fairs etc.
Religious Tourism: Pashupati, Muktinath, Lumbini etc.
Sports Tourism: Golf, Elephant-polo, cricket, football
Casino Tourism
Educational Tourism: Educational tours
Health Tourism: Visiting for medical treatment & services
Agriculture Tourism: Visiting for agricultural purpose.
Advantages/ Benefits of Tourism / Hospitality
Entrepreneurship
 Provides Employment: self- employment as well as
employment for others as it is labour – oriented industry
 Increases level of income & living standard
 Sources of foreign currency earnings
 Increases Gross National product
 Utilization of local resources & local products
 Increases Revenue of Government
 Preservation of heritage & tradition
 Diversification in product & services
 Infrastructure development
 Increases recognition & goodwill of country

Principles for Hospitality Entrepreneurship


Honesty
 Concern and respect for others
 Commitment to excellence
 Leadership
 Fairness
 Loyalty
 Trustworthiness
  Reputation
 Morale
 Accountability
 Employee engagement activity

Problems of Tourism / Hospitality Entrepreneurship

 Political instability: - Political instability creates policy
instability. Political instability refers frequent changes in
government, demonstration, lack-outs, and strikes with
negatively affect tourism entrepreneurships.
 Inadequate infrastructure:- Air transport , air ports,
trekking trails, accommodation, communication facilities,
proper transportation security are limited to fewer tourist
destinations
 Lack of transportation and communication: in the
remote & hilly areas.
 Ineffective Marketing: - Nepal as an attractive tourist
destination has not been well publicized in foreign
countries. It has been based on traditional markets and
traditional tourism products.
 Institutional arrangement: by government for tourism
promotion is weak.
 Publicity: should be made by using different news and
media of Nepal and abroad.
  Environment Degradation: - Lack of conservation,
problem of solid waste management, increasing pollution,
and environmental deterioration has become major
challenges for development of tourism industry.
 Poor Tourist Safety: - Nepal does not have good reputation
regarding tourist safety, tourist safety refers in terms of
crime, theft, murder, terrorism, harassment, natural disaster,
health, hygiene, sanitation, pollution is also lacking.
 Lack of competent Human Resources:- Nepalese tourism
sector lacks professionally trained and educated human
resources to manage tourism industry because of migration
of trained people to foreign countries.

Factor Affecting Tourism / Hospitality Entrepreneurship

 Proper strategy: - Lack of proper plan, programmes
policies. Nepal should be developed as premium and exotic
tourist destination. Government should have clear vision,
mission, objectives, plans & policies for the development of
tourism entrepreneurships.
 Innovative products: - New and innovative tourism
product should be given priority in tourism destinations.
 Quality of services: - Quality of services should be
upgrade, proper monitoring and controlling mechanism
should be established.
 Tourist safety: - Tourist services and facilities should be
developed to make places secure and safe for tourists.
 Development of infrastructure: - Infrastructure
development should be given priority in tourism destination.
 Pollution control & Environmental protection: Pollution
control and environmental protection should get high
priority for tourism development.
 Proper Marketing: The proper promotion should be done
at the tourist originating markets. Marketing should be done
in both domestic and foreign markets.
 Facilitating Domestic & Religious Tourism: Domestic
and religious tourism should be effectively promoted.
 Human Resources: There should be development of
professional human resources with the joint effort of
government & private sector.
 Use of local Products: The use of local products for
tourism industry should be encouraged.
 Allocation of Budget: The government should allocate
proper budget for the promotion and development of
tourism sector.
Factors for Promoting Tourism Entrepreneurship
 Vision, Mission & Objectives: Government should have
clear vision, mission & Goods for promoting tourism
entrepreneurship
 Visa: Liberalizing visa norms & procedure
 Innovative product: New tourism products& destination
should be developed
 Infrastructure Development: Infrastructure development
should be given priority for development of tourism
industry.
 Quality of Service: Quality of service should be upgraded
& controlled. Quality assurance system/ mechanism should
be established including monitoring & supervision system.
 Tourist Safety: Safety should be given priority, proper
tourism informations should be provided.
 Pollution control & Environmental protection
 Proper Marketing
 Facilitating Domestic & Religious Tourism
 Human Resources: Development of professional human
resources with the joint effort of government & private
sector.
 Annual Budget: Government should allocate sufficient
fund for development of tourism sector.
TOURISM POLICY 2009
- The main objective is to develop tourism as important sector of
national income.
- Improve, natural, cultural, human environment for expansion
of tourism industry.
- To develop Nepal as an attractive tourism destination by
providing quality service and securities.
- Emphasis on rural tourism, community-based tourism, and
home stays.
- Development of air services, encouraging leading role of
private sector.
- Upgrading tourism activities and infrastructure.
- Promotion and development of religious tourism and domestic
tourism.
- Formulation of tourism co-ordination committee, tourism
council for the development and promotion of tourism sector.
- Development of hotel, resort
Hospitality Industry in Nepalese Economy
- Service sector contributes 43.3 percent of jobs against
agriculture sector and industrial sector.
- Tourism and Hospitality industry is always taken care of by
government as it is one of the major sources of revenue
contribution 3.5 of national economy.
- Nepal is a rich country in natural resources, culture and
tradition.
- Mount Everest, birth place of Lord Gautam Buddha,
Pashupatinath, country of diverse culture, tradition, garden of
different castes and religion.
- Nepal Posses 8 of the 10 highest mountains in the world ,
hiking, trekking, bird watching , flight paragliding, hot air
ballooning ,jungle safari, bird watching .
-Tourism industry is considered as largest and highly profitable
business after petroleum industry.
-Nepal naturally blessed attracts million of tourists each year
thus demanding a progress in the quality and facilities.
- Hotel industry growing and providing around skilled
manpower directly and indirectly helping 1.2 million people of
Nepal
-Tourism board of Nepal is also conscious about this matter,
they are also organizing different programmes to attract tourist.
- Many international chain hotels have come to Nepal to provide
home away from home environment to the guests. Now there are
many hotels, resorts, guest house to provide facilities and
services to the tourist.
- Nepal is a beautiful naturally gifted country that has great
potential for the tourism industry.

-After a glorious success of past Tourism Year Visit Nepal 2011

and Visit Nepal 1998, a new tourism campaign was announced. -
- The objectives of Visit Nepal 2020 is to promote Nepal as a
Tourism Destination. Hence, named the upcoming Nepal
tourism year 2020 to “Visit Nepal 2020”.

-Ministry of Culture, Tourism and Civil Aviation is responsible

for introducing this campaign.

-Visit Nepal 2020 motto is to attract 2 million tourists in Nepal

by the year 2020. Thus, Visit Nepal 2020 is going to be a major
event in the field of tourism.

-For the overall success of this campaign, the Nepal Government

separated 5 sectors to equally promote and develop this area. It
includes People & Heritages, Nature & Wildlife, Culture Cities
& leisure, Religion & Pilgrimage, and lastly Adventure and
Outdoor.

-Visitors from across the world can experience the ancient

temples and buildings to beautiful scenic Himalayas to various
adventurous sports and activities to religious pilgrimages all
within the same year.

- For the Tourists, Nepal Government started constructing two

international airports at Bhairahawa and Pokhara which is on the
verge of completion. Besides that, few reconstructions and
repairing processes going on at Tribhuvan International Airport.
Also, linking important destinations with roadways for the Visit
Nepal 2020 campaign.

- Several educational institutions related to tourism and hotel

management are upgrading day by day to serve and welcome
nation guests with proper hospitality and services.

- Among the top 10 most visited places on earth and best-valued

destination in the world, Nepal comes at 5th and 1st position
which is one of the main reasons behind this campaign “Visit
Nepal 2020”. The pristine beauty of Nepal is enough to
hypnotize millions of travelers all around the world.