The Potential Problems By Adopting Diversity In Tourism Tourism Essay Example
The Potential Problems By Adopting Diversity In Tourism Tourism Essay Example

The Potential Problems By Adopting Diversity In Tourism Tourism Essay Example

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  • Pages: 14 (3850 words)
  • Published: October 14, 2017
  • Type: Essay
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Many researchers believe that diversification in Tourism can help increase the popularity of a destination and attract various types of tourists' interests. This can enhance the experience and satisfaction of tourists, thus increasing the number of visitors, return visits, positive word of mouth, and most importantly, boosting the economy of the host destination. However, there is a risk associated with embracing diversity in the tourism industry. As most tourist destinations strive to adopt diversity strategies and compete in the Global Tourism Market, offering similar tourism facilities and activities while continuously enhancing the "added value" services and amenities, they seem to be losing the unique image of their own destination.

The purpose of this paper is to examine the diversity strategy implemented in Macau's tourism industry, a famous gambling destination in Southeast Asia, and analyze potential challenges that may arise fr


om adopting diversity in the tourism sector. The objective is to provide evidence for future research on this topic. This paper presents a research proposal without conducting actual research, including the introduction, objectives, methodology, and literature review. Therefore, it does not include a conclusion.


It is common for states and regions to seek better opportunities for economic development and improvement of overall quality of life for their population.

Industries, such as tourism, are crucial for boosting the economy of a country or region. They differ in their work nature and output but operate at an optimum level. Tourism is one such industry that generates substantial revenue and enhances the economic condition of states or regions. When a destination becomes popular among tourists, it leads to increased profits in those areas, resulting in overall improvements in financial and lifestyle aspects

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Although there are many appealing destinations globally, only a few have emerged as significant contributors to regional economic development.

According to Morgan, Pritchard, and Pride (2004), finish stigmatization provides great opportunities for untapped stigmatization. The World Trade Organization supports this idea and predicts that tourism destinations will become fashion accessories in the 21st century. The primary goal of destination branding is to harness the emotional power of travel as an experience and extend beyond the tourism industry (Morgan, Pritchard, & Pride, p.5). Several countries such as New Zealand, Singapore, and Malaysia have successfully branded themselves as tourist destinations.

Macau aims to compete in the global tourism industry by embracing diversity as its tourism strategy (Koumelis, 2008; Reuters, 2008). The government of Macau has successfully positioned the country as a paradise for business communities, tourists, and gamblers (Manes, 2008). Through its unique blend of cultural diversity, dual political system, gambling, and leisure destinations, Macau has the opportunity to establish itself as a diverse destination similar to Australia (MGTO, 2008a). In the first half of 2008, Macau welcomed over 1.5 million international visitors, representing a 46.5% increase compared to the same period in 2007 (MGTO, 2008b). Additionally, during the same timeframe, Macau hosted around 8.8 million Mainland residents (Koumelis, 2008). Tourism and gambling revenues contribute more than half of Macau's GDP (Reuters, 2008).

With the increasing allure of tourism in Macau and the growing global competition from other Asian cities like Singapore and Dubai, it is crucial to implement a diversity strategy that offers tourists a variety of options to attract the international market (Reuters, 2008). While the diversity strategy has the potential to boost tourism in Macau, there is

a reported lack of branding the city as a world-class cultural or leisure heritage destination that provides quality service and infrastructure. Instead, Macau is primarily known as a gambling destination, which results in long lines at the border, heavy traffic, and inconsistent service (Manes, 2008). Thus, there are challenges in effectively applying a diversity strategy to attract international tourists.

Aim and Aims

Tourism is a complex subject that requires in-depth knowledge of the culture of the country where the industry operates. It involves analyzing whether tourism functions as an industry or solely relies on natural resources to attract tourists without making additional efforts to enhance profits. Therefore, this paper aims to carefully analyze and study diversity as a primary component and challenge for the Macau tourism industry.

  • The overall purpose of this research is to identify the challenges of utilizing diversity in promoting the Tourism Industry of Macau.
  • This research has five main aims:
    1. To define the concept of Diversity in Tourism marketing;
    2. To identify the challenges facing Macau as a tourist destination;
    3. To analyze Macau's marketing strategies (diversifying the brand) in promoting itself as a tourist destination;
    4. To evaluate the feasibility of adopting the diversity concept in the Tourism Industry of Macau;
    5. To provide evidence for further research on diversifying the brand of a tourist destination.

The objective of this study is to focus on specific goals when discussing diversity in the tourism industry. Macau, known for

its central location and natural beauty, presents both challenges and attractions to potential tourists. To grasp the significance of diversity, it is essential to comprehend demand and essence associated with it.

The goal of the survey is to investigate the importance of diversity in the tourism industry and its impact on Macau's economy. It also seeks to assess the connection between Macau's economic situation and its tourism industry, which provides employment for many people. Furthermore, it is crucial to establish a link between Macau's cultural heritage and its initiatives to diversify in tourism.

Macau is a place where both European and Asian cultures thrive due to its influence from Portuguese and Chinese cultures. However, there is concern among the local community about the diminishing local culture.

Promoting diversity in tourism and cultural heritage in Macau benefits the local people as the tourism industry plays a major role in the region's economy.


The research methodology consists of three parts. Firstly, this study will examine the concepts of diversity used in marketing and branding fields. It will then explore the diversity policy adopted by the Macau government and compare it with other diversity tourism strategies implemented in cities like Monaco, Lisbon, New York, and Boston. The researcher will assess the compatibility of Macau's diversity strategies based on academic viewpoints. Finally, specific strategies implemented to promote diversity in Macau will be evaluated by the researcher.

This will be accomplished through secondary research of the tourism website, tourism advertisements, and evaluation of other strategic plans implemented by the authorities. Subsequently, an analysis will be conducted to compare tourist spending in Macau's gambling sector with other tourist sectors (non-gaming sector). Additionally, the

researcher will aim to identify their contribution to Macau's GDP growth. This will provide a comprehensive overview of revenue and growth in Macau's tourism industry, encompassing gambling, hospitality, culture, and MICE tourism.


The second part of the research will focus on analyzing the promotions of Macau tourism to promote diversity. To begin, the researcher will examine the destination image by collecting and reviewing marketing literature. This will allow for the identification of key features that convey the message of diversity. According to Jenkins (1997), a comprehensive destination image should encompass factors such as climate, tourist attractions, cultures, population, leisure facilities, activities, entertainment, and scenery. Therefore, to create a list of features, the researcher must analyze the content of tourists' information from various sources including guidebooks, websites, television advertisements, and more. These sources can provide extensive information about a destination's image.

Therefore, the government of Macau is utilizing various marketing literature such as travel booklets, websites, advertisements, and promotions to promote diversity. One common method used to understand and analyze the overall image of a destination is by examining its marketing materials. For instance, Dilley (1986) analyzed the images of 21 countries through their destination booklets. This study follows a similar approach to understand the brand image of Macau as marketed by the government.

After completing the two phases of analysis, the researcher will need to correlate the GDP shares of the gambling sector and the non-gaming sector of tourism, along with analyzing the promotions for both sectors. This analysis can help us determine whether the diversity strategy in Macau has been successful or has led to a decline in tourist influx in a previously strong sector.

Furthermore, in

2000, Walter Jamieson presented the idea that any form of tourism strategy should generate economic and social development. In order to assess the challenges of cultural diversity, this study will investigate the negative impact of diversity tourism on the social and economic environment of the country in the third section. This analysis will involve examining secondary data on the nature of tourism and its effect on the Macau economy, specifically looking at: leading to the commoditization of culture - by referencing tourism promotions; creating a higher cost of living for residents (rent, food services) - considering inflation rates and government census following the diversity strategy; displacing traditional residents - determining how the growth of tourists has encroached on locals' space through expansions of hotels, clubs, restaurants, etc., which has resulted in dispossession of private property.

The text highlights the impact of a diversity strategy on crime rates and pollution levels in Macau. It mentions that an analysis of these factors from 2001 to 2008 will provide insight into the challenges faced by Macau after implementing the diversity strategy. The data for this research was obtained from secondary sources, specifically from the year 2001 before the gambling licence was liberalized.

Furthermore, the tourer information booklets, advertizements, etc. originate from Macau Government Tourism Office ( MGTO, 2008b ) . The data concerning the societal and economic environment of Macau is acquired from the Statistics and Census Department of Macau Government ( DSEC, 2008 ) . Additionally, Macau is renowned as a gambling metropolis where gambling or casinos are commonly linked to negative activities like drugs, prostitution, crime, alcohol consumption, etc.

When utilizing primary research, such as surveys or

interviews, to gather information about how Macau is perceived by tourists and local communities, there may be instances where the results are unreliable. This is because people often avoid being associated with a negative image and therefore may not provide accurate information. To ensure accuracy, it is recommended to use secondary research methods instead. Echtner and Ritchie (2003) also pointed out that many researchers nowadays rely heavily on structured methodologies that only include closed-ended questions, which limits their ability to capture the full range of unique aspects in a destination's image.

Therefore, it is evident that numerous previous studies have conducted primary research to analyze the image of a destination. Consequently, secondary resources would suffice for conducting this research.

Literature Review

Tourism is a rapidly expanding industry globally and necessitates thoughtful consideration for future development and sustainability. Many studies have assessed the impact of various factors on the global tourism industry and specific tourist destinations. The goal of these studies is to anticipate and address existing or anticipated challenges, developing strategies to support an industry with significant economic impact on individuals and regions. This becomes crucial when considering popular tourist destinations like Las Vegas, Macau, Nevada, etc., where sustaining growth while attracting tourists from around the world is vital. To achieve this, revitalizing the brand image of the destination becomes essential.

The image associated with a trade name can affect people's motivations for choosing a destination, influence their expectations, and ultimately impact their level of satisfaction. The satisfaction experienced by tourists can then lead to positive or negative word-of-mouth, which in turn affects the overall image of the destination. Therefore, the brand image is extremely important for a destination.

Gunn (1972) was one of the first to recognize the different ways in which cognitive images are formed. According to Gunn's theory, this process involves a continuous change of images that are conceived at various levels, including organic, induced, and modified-induced.

The text discusses two types of images: organic and induced images. Organic images originate from various sources such as books, school, television documentaries, and personal experiences. On the other hand, induced images are created by the destination country itself through marketing and promotional materials. The main difference between the two is that the destination country has more control over induced images compared to organic ones. While it is difficult to influence organic images, marketers can shape induced images through advertising efforts. In addition, branding plays a crucial role in shaping a destination's image and has gained greater attention from marketers in recent years (Anholt, 2002).

Therefore, the importance of a destination's trade name image can be determined through two aspects:

  • A name, symbol, logo, word grade, or other graphic that identifies and differentiates the destination. This conveys the promise of a unique travel experience that is distinctly associated with the destination, serving to strengthen and reinforce pleasant memories of the destination experience (Ritchie and Ritchie, 1998, p.17)
  • The sum of beliefs, attitudes, and feelings held by an individual or group towards a particular phenomenon. This is an intangible element that cannot be directly experienced before actually visiting... potential visitors rely on their perceptions when deciding where to visit one destination over another (Weaver and Lawton, 2000, p.105)

These two aspects demonstrate the main components of brandi in a destination's image. The tangible elements are illustrated by Ritchie

and Ritchie (1998), while Weaver and Lawton (2000) highlight the intangible elements. However, both also emphasize one crucial idea - uniqueness.

It is true that tourists travel to different destinations not only based on amenities or prices, but also for unique and memorable experiences. Using branding to shape a destination's image helps enhance its uniqueness. In an industry where there are many variables such as local factors, economic conditions, social conditions, gambling development, casinos, and related issues that can promote both positive and negative aspects in society, it is important to examine the topic from various perspectives. Therefore, literature from different areas should be considered. Particularly, studies that explore different perspectives on gambling and casinos are crucial as they contribute significantly to the tourism industry. Gambling in Macau is one unique element that attracts global attention; consequently, the image of Macau has been predominantly associated with being a gambling destination.

The Macau Government recently implemented a diversity strategy in tourism to make Macau an inclusive destination for everyone. This study aims to assess how Macau is branded as a diversity destination for tourists. Diversity in tourism has the potential to attract people from different cultures, groups, ethnicities, nationalities, and races, which contributes to the popularity and appeal of a tourist destination. However, achieving or promoting diversity in a region is not an easy task. It requires considering the perspectives of local residents. With globalization and advancements in technology, the world has become a global village.

The introduction and promotion of diversity in tourist attractions have been studied by scholars and researchers, as it brings people closer and facilitates travel through the universe for tourists who seek a fulfilling

experience while also experiencing their own cultural nuances. In Macau, where European and Asian cultures coexist within Chinese culture, the local government faces the challenge of deciding whether to promote diversity in the tourism industry, potentially attracting more tourists but potentially diminishing the local regional culture. Tourism diversity is a concept used to integrate cultural and ethnic tourism with modern urban tourism (Collins, 2007). Scholars have examined tourism strategies in cities like New York (Fainstein & Powers, 2007), Boston (Halter, 2007), and Lisbon (Marques & DaCosta, 2007), all emphasizing the promotion of cultural and ethnic diversity as the main goal of a diversity tourism strategy.

According to scholars, diversity tourism is seen by many as a commoditization of the cultural heritage of tourist destinations, with holiday festivals being used as a way to attract tourists (MacCannell, 1976). In Macau island, the diversification of the tourism industry is heavily influenced by the cultural diversity which develops and promotes cultural heritages in order to attract visitors from various locations. This diversity strategy makes every city look and feel the same. If a tourist destination offers a similar experience as one's home country, as post-modern tourism is accused of doing, it becomes difficult to attract tourists, even with efforts to promote diversity in the destinations (Cohen, 2004).

Cohen argues that a variegation scheme ultimately commodifies cultural heritages as tourism products and treats festivals as just another way to attract tourists. MacCannell (1976) states that it is crucial to promote what tourists are expected to see. He suggests that tourists form a strong connection with their surroundings through marketing and promotions of tourist destinations. Additionally, while visiting a place, tourists evaluate

the location. Thus, the transformation of sight - shaper - sight is not limited to the act of sightseeing alone.

According to MacCannell (1976, p. 121), tourists have been criticized for not adequately experiencing the sights they visit and instead focusing on simply acknowledging their existence. This phenomenon of perceiving a sight through the eyes of a tourist has two important aspects. First, the tourist brings their own understanding and perception of the sight, and second, the true essence of the sight remains hidden. As a result, information about a destination can provide a glimpse into the place itself.

This aspect must be kept in mind for excursionists. Therefore, if the advertisements of the tourist places do not match the actual experience of the tourists, it will hinder the tourism of the place. This should be considered when promoting diverse tourism in Macau. Utilizing the concept developed by McCannell, the researcher will evaluate the diversity strategy of tourism in Macau. This is because Macau has undergone significant changes over the past century and people from different regions have settled in the area, resulting in a fusion of cultures that includes both European or Western influences as well as Asian characteristics. Therefore, studying the gambling and other attractions developed on Macau Island to attract tourists from different regions and cultures will provide insight into how tourists are attracted according to the government's desire to promote diversity. Additionally, it is important to consider how the government, public, and private sectors are struggling and planning to deal with this issue of promoting diversity as the core of tourism, while also addressing challenges such as local resistance to sudden change and

fear of losing local heritage.


Tourism is a rapidly growing and highly developing industry worldwide, and it is important to closely consider the challenges it presents and address them accordingly. The relationship between tourism and economic growth in various regions, including Western and Asian destinations, demonstrates a clear positive correlation between the two in terms of growth and development. While the tourism industry is crucial for the economic growth of low-income and middle-income countries and regions, it is not as essential or mandatory for the prosperity and growth of developed countries. However, tourism can still contribute to enhancing their global image as attractive destinations. Additionally, it is expected that low-income countries must have adequate infrastructure, cultural assets, knowledge systems, and development to attract a significant number of tourists. Countries with a majority of medium-income earners in their economy require a high level of cultural and social development, such as medical services and high levels of per capita GDP.With such a significant global presence, tourism is a major industry that appeals to people worldwide. Being one of the fastest-growing economic sectors, numerous studies have been conducted to examine the impact of various factors on the development and growth of tourism.

Tourism has long been a key focus for policymakers, governments, private sectors, and researchers, often referred to as the "dragon head" industry driving economic growth. Many developing countries see tourism development as a viable policy option to boost their economies. One reason for this is the increasing demand for international travel in developed nations.

Developing countries require foreign exchange earnings to aid their own economic development and meet the growing expectations of their populations. According to a study conducted

between 1980-1995, tourism has played a crucial role in promoting the economic situation of developing countries. Compared to 143 countries, including OECD members and less developed nations, the tourism states experienced significantly higher growth rates. This growth cannot be solely attributed to the countries' poverty levels or investment tendencies, nor their openness to trade. Research on achieving sustainable tourism in Macau emphasizes the importance of collaboration and diversification within the tourism industry, particularly as the government faces challenges in promoting diversification efforts. [Source:]Over the past decade, Macau has been primarily focused on the tension between those advocating for increased casino development and those supporting cultural diversity. This tension has influenced government policies, private sector tourism development, and the concerns of the local community regarding diversification and the promotion of high-quality tourism.

The tourism industry in Macau has experienced significant growth in the past decade. A large amount of reclaimed land on the island has been dedicated to tourism, leading to an increase in attractions and tourist arrivals. Macau is conveniently located an hour away from Hong Kong by ferry or boat, making it a popular destination for Chinese tourists. Its proximity to the affluent southern Chinese state of Guangdong further adds to its appeal. The recent growth in tourism can be attributed to the Macau government breaking the monopoly on local gambling licenses, allowing for foreign investment in new properties and activities. In 2004, the island saw 16.6 million tourist arrivals, which increased to 26.9 million in 2007. This growth continues at a rate of approximately 11%, with 33 million tourists arriving last year on this 28 square kilometre land.

Despite the majority of visitors coming

from China, in recent years Macau has seen an increase in tourists from various Asian and European countries, making it an attractive destination for gambling and leisure purposes. For example, although mainland Chinese visitors accounted for about 58.4% of total arrivals in October 2008, this percentage is now spread across tourists from other regions. Before the influx of tourists to the destination, cultural tourism in Macau began to develop alongside gaming and other forms of gambling as one of the main attractions. Typically, this starts with guided day tours and self-guided tourists who have a variety of motives, expectations, and a desire for luxury, which may even include gambling in some form.

The Macau authorities implemented the "Ordinance for the Tourism Industry and Related Industries" on July 23rd, 1966. Ten years later, in 1976, the Committee for the Defense of Macau's Urbanity, Natural and Cultural Heritage was established to promote cultural diversity and preserve the district's natural, architectural, and cultural assets. One of their collaborations was with the Information and Tourism Centre to showcase Macau's uniqueness and appeal. The government's impact on Macau's tourism has been to encourage diversity and attract people from different backgrounds by establishing new casinos, gambling zones, and resorts. This has contributed to the mixing and appreciation of various cultures and heritage within one location. The Special Administrative Region's (SAR's) policy development over the past decade has played a crucial role in aligning these strategies. Source: Macau is often referred to as the "Monte Carlo of the Orient" due to its reputation for gambling. However, the tourism industry in Macau mainly consists of gambling zones, hotels, catering businesses, and recreational


Having a population of approximately 450,000 and covering a land area of 27.3 square kilometers,

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