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TABLE OF CONTENTS
Chapter 1 Environmental impact of Management in Tourism Industry Chapter 2 Marketing and Advertising of Tourism Sectors. . . . . . . . . . . . . . . . . . . . . Chapter 3 The Development of Tourism Industry. . . . .. Chapter 4 Social Impact. . . . . . . .... Chapter 5 Tourism and Environment . . . . . . . . . . . . . . . . . . . Chapter 6 How to the Environment Problems to affect in Tourism Sectors... Chapter 7 The most Business Environment Sector and Its Potential . . . . . . . . . . . . . Chapter 8 Management in the Business Environment of Organizations . . . . . . Chapter 9 Outer Environment ( MACRO Environment ) .. Chapter 10 Political Legal Environment.. Chapter 11 Technological State ( R+D ). Chapter 12 Social Cultural Environment Chapter 13 Inner Environment (MICRO Environment) . Chapter 14 Employees .... Chapter 15 Owners and the Board... Chapter 16 Consumers. Chapter 17 Contractors............ Chapter 18 Competitions. Chapter 19 Financial Organizations........ Chapter 20 the Government.

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ENVIRONMENTAL IMPACT OF MANAGEMENT IN TOURISM INDUSTRY. Tourism in the Maldives began in the early 1970s.The first few tourists that came were small groups or individuals, and the country began to be recognized as an international tourist destination.

The Maldives offered the unspoiled beauty of tropical islands which made it an ideal holiday spot. At that time the demand for international travel was high and the steady flow of tourists since then has created a thriving industry that is the single most important contributor to national development today.

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The first tourist resort Kurumba village, a five-star hotel today was pioneered by two Maldives entrepreneurs in association with an Italian investor in 1972. A second resort was opened the same year on the island of Bandos. Despite just the basic services and facilities,

as tourism began, 1,096 tourists came to the Maldives that year. A total of 29,325 tourists visited the country in 1978, and increased to 158,488 by 1989. Today there are 62 island resorts with a total capacity of over 7,720 beds. Tourism is the countrys biggest foreign exchange earner and contributes about 20 per cent to the GDP. The construction of additional resorts is currently underway in the new tourist zones which will be developed with upgraded services and modern facilities.

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Tourism development was largely unplanned until 1978 and took place according to Individual initiative. To enhance the sustainable development of tourism and integrate the socio-economic development of the country. The Government in conjunction with overseas assistance formulated the Tourism Master plan 1983.

The plan sets out guidelines for the overall development of tourism, and identifies tourism zones at southern, northern and central locations of the country in addition to the fast developing Male Tourism Zone. The planned development of tourism precludes the potential negative impacts of tourism on the socio-economic structure of the country and its environment. In order the realize the full potential of tourism, the Government embarked on strengthening the institutional framework for the development of tourism and introduced appropriate legislation among other measures. In 1979 the Tourism Law was enacted laying down the regulation for the Industry. The law required all foreign investments to be registered in the department of Tourism and Foreign Investments. In 1982 it became the Department of Tourism. In 1984 the

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Tourism Advisory Board was created as a consultative body. In 1988 the Ministry of Tourism was formed, bringing the Institutional development of tourism to maturity.

The Opening of the Male International Airport in 1981 provided the gateway to the Maldives. Around fifty International flights a week fly to the Male International Airport during the peak season. A modern inflight catering center has been added in 1989 and a helicopter service is now available from the airport to some the islands.

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During the Initial tourism was a highly seasonal industry. Mostly European tourists visited the country during their winter making the rest of the year the off season for the tourist resorts.As the Maldives opened up for the International tourism, new markets were tapped, and the formally seasonal nature of tourist changed. Today, tourists from both the southern and northern hemispheres of the world visit the Maldives and most the resorts operate round the year. Japanese tourists are increasing in number while the North American market remains to be effectively tapped.

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MERKETING AND ADVERTISING OF TOURISM SECTORS.. Marketing and Advertising is an integral part of tourism development. The Ministry of Tourism and private tourist enterprises are activity involved in the promotion of the Maldives Overseas. The tourist information Counter at the airport provides leaflets and other up-to date information about the country. The establishment of the Tourist information Unit in 1989, and the participation of officials both from the Government and private tourist organisations in overseas tourist fair enhance the marketing of tourism abroad. The president Government gives high priority to the training and development of manpower for tourism. a key consideration being the replacement of expatriate staff by Maldivians at mangement levels. To meet the training

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Needs of the growing industry, the Government the School of Hotel and Catering Services in August 1987. A number of people employed in the tourism industry heve also been sent abroad for training by the Government and private tourist resorts.

Tourism is an important source of government revenue.Direct receipt from tourist accounted for 18.47 per cent of total government revenue in 1988. The rapid growth of tourism has attracted a number of foreign banks to the country. Commercial banks including the bank of Maldives, are main source of finance for the booming tourism industry today.

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THE DEVELOPMENT OF TOURISM INDUSTRY The development of Tourism has resulted in an overall expansion of the economy. The spread of its benefits has provided direct and indirect employment and income generating opportunities in other industries such as fisheries, construction, carpentry ,boat building, printing and mechenical repairs.

Traditional handcrafts like lackuer work, mat weawing and the creation of souvenirsfrom black coral, tortoise shell and shell- crafts have revived. As tourism flourished. tourist shops began to spring up both in the islands and in Male along with a profitable informal suvenir trade.

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The supply of local agricultural and marine foods have earned indirect employment opportunities in these occupations. While there is still some concern about the environmental impects of tourism development. The positive effects of tourism have integrated the economy and increased the national product.

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SOCIAL IMPACT Tourism has affected individuals, families, and society in general. The vast majority of workers in tourism are male. Families have been impacted by tourism largely through employment and higher incomes. Most welcome tourism but complain that they have difficulty in marketing their produce to tourists. Lifestyle changes have included the stress of working in tourism itself, a non-traditional employment sector. Workers also feel isolated due to separation from friends and family-and this is not limited to tourism, for most of those living in Male are far from their home atolls. In addition, no consultation on resort development has taken place with the adjacent islanders and the issues of reef accessibility and harvesting being lost without compensation have not been addressed.

Although the participation of women is limited, they like to start small businesses for the visitors; however, they often lack access to finance. Also, there is still reluctance, particularly from their families, to have girls work in resorts. Women do not like to live in the resorts and wish to return home in the evenings. Their inability to speak English also has restricted their interactions

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with the tourists. In Male, some women work in cafes and restaurants but they are much more prevalent in government positions. Several countries face this problem and to date there is no really satisfactory answer, other than to improve working conditions and to offer careers and entrepreneurship, rather than mere jobs, as the future for young workers. Now that there are several chains with multiple outlets, career planning should be more feasible. Since Maldivian tourism is organized on a "separate resort island" basis, adverse social impact on lifestyles seems less. The Maldives employs a large proportion of foreigners; about 50 percent of the workers in resorts are from South Asia. This practice is not sustainable, however, as Maldives needs to generate job opportunities for its young. Direct local participation in tourism is diminished due to the dominance of the foreign nationals employed in the sector. However, this could lead to resentment toward the foreign employees.

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Growth in employment opportunities in resorts has resulted in outmigration from outer atolls to Male Atoll and it has put pressure on the resources of the capital. Unlike in other countries, the social carrying capacity57 has not been exceeded; however, the outmigration raises sustainability issues, as for example in Addu Atoll.

In addition to outmigration from atolls, an increase in use of drugs and alcohol seems to be an emerging social problem. Furthermore, the local employees believe that there is discrimination against local staff in resorts.

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TOURISM AND ENVIRONMENT

Tourism depends on environmental quality more than any other activity and a central precept that has been preached in tourism is not to kill the goose that lays the golden eggs. Yet, in general, it is characterized by rapid, short-term development which more often than not damages the very environment the tourists come to enjoy and simply moves off elsewhere. Without careful attention to the balance between the volume and type of tourist activity, and the sensitivity and carrying capacities of the resources being developed, tourism projects can be not only environmentally harmful but also economically self-defeating. Tourism in the Maldives exists solely due to the physical and geographic features of the coral islands.

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HOW TO THE ENVIRONMENT AFFECT IN TOURISM SECTROS..

PROLEMS

TO

The Maldives have learned from other developing nations to protect its environment from some of the negative aspects of tourism. Wanting to remain pollution-free, the government has Rubbish on beach is the next environmental problem identified by the resort management.

Rubbish on beach mainly results from waste dumped at Sea irresponsibly by neighboring resorts and inhabited islands that get washed ashore onto islands with the current and to some extent from the messy habits of certain tourists. The resort management is quite emotive on this issue as this is one issue that will reflect very badly on the image of the resort environment. Strict policies on leisure crafts that could destroy the islands magnificent sea life.

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The beauty of the underwater world at the reefs, clean water in the lagoons, white and pristine sandy beaches, a rich island

Vegetation and ideal tropical climate which form a virtual paradise that attracts tourists from Europe and Australasia.

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THE MOST BUSINESS ENVIRONMENT SECTOR AND ITS POTENTIAL..

The relationship between tourism and the environment is important, both for conservation and for sustaining the quality of tourism. The harsher forms of degradation due to coral and sand mining, dragnet fishing, and poisoning and dynamiting fish have all been outlawed in the Maldives and protection measures are in place for the resort islands. The main areas of concern are marine biodiversity and coastal-zone management, including Natural barriers (fringing coral reefs); shoreline and beach planning; coastal land forms; coastal vegetation, such as sea grass (important for green turtles); forests; and the extent to which exotics are invasive. While the government is aware of all these areas, more needs to be done to better understand these environmental issues and to develop indicators for benchmarking.

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MANAGEMENT IN THE BUSINESS ENVIRONMENT OF ORGANAIZATIONS To lead an organization efficiently we must know where our company is situated, what are the outside influences and the inside ones.

Outer environment: (macro environment)

There are some factors in the lives of organizations that affect them, but they dont have any control over them (much like in our own life). We can define three major areas, but these are just the large groups, they just give a general outline. The major external function of MACRO Environment is the uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. Specific examples of macro environment influences include competitors, changes in interest rates, changes in cultural tastes, disastrous weather, or government regulations.

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Political-legal environment: The effects of this are quite visible. Just think of the effect of changing taxes, or raising interest rates. If the legal system, pushed by politics lowers he acceptable emission rates, companies may have to invest in new equipment or close down.

Technological state (R+D):

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Technology can bring millions to one company and take millions from another. Organizations on the frontier usually experience a boom, with many following, but some rivals may go bankrupt. A good manager has to be aware of change and embrace technology to gain an edge on competition.

Social-Cultural environment:

This is a very important but also very diverse category. Think of a company in China and a company in Hungary. A Hungarian company only has to produce for a potential market of about 10 million. A Chinese company has a potential market of 1.3 billion., which is 130 times as much! That alone is a huge difference, and we havent even touched cultural differences. For example in India, McDonalds probably wont sell any hamburgers made from beef because they dont eat that there. A manager has to keep all these in mind when leading an organization!

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Inner environment (micro-environment)

This is the environment that an organization can influence. It may not be able to correct all flaws in the micro-environment, but it has a much better control over it than the macro environment. The microenvironment consists of seven larger parts:

Employees:

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Organizations have to find the right people for each job. This means finding some highly specialized people and generally trained workers. Organizations are limited by their money supply and the constraints of the general workforce.

Owners and the board:

The investment mood is a primary question for every organization. A positive mood means funds, while a negative mood means extra costs. It is important that the owners are satisfied with the company, but this doesnt always mean large profits have to be shown all the time. Many companies can choose between keeping profits and investing them. It is the managers job to balance the aims if the company and the owners (although many times this can be the same).

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Consumers: Another important goal of the company is to keep the consumers happy. Today, competition is so large that for every product, there are ten of the same, but different brands. Organizations recognize that it is in their own interest to keep consumers happy.

Contractors: The inputs of organizations are supplied by its contractors. Depending on size the contractors may race to keep the organizations happy, but it may happen vice-versa. The main objective here is sustaining a well oiled input supply system.

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Competition:
Competition, or rather the observation of it, is important if the company wants to keep its position on the market. It is also possible for organizations to buy a part of their competition, or they can try to outsmart them.

Financial organizations:
Their effect is possibly the most visible. For example, the exchange rate difference between two banks could mean millions of extra loss or profit. Their guarantee may be needed for large projects, but aside all that, the most important thing is that they insure functionality day to day.

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The government:
Governments may have a direct or indirect effect. They may subsidize, giving money directly to the organizations. They can also give extra taxrefunds or they may punish unlawful behavior.

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DIPLOMA IN HUMAN RESOURSE MANAGEMENT SHIMEEZA AHMED G.ROAMGE

MALE, REP OF MALDIVES

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