Document Type:Thesis

Subject Area:Tourism

Document 1

The sector is unique since it favors development both in the developed and developing countries. In particular, the developed countries have benefited from this sector due to weak economies which have been stimulated by the injection of foreign currencies in their economies (Watson, 2018). Therefore, third world countries in strategic areas such as Africa and Asia which has one of the best climates has benefited from the sector. For instance, tourism was ranked position fourth Kenya in term of generating income (Masinde & Buigut, 2018). Such countries have used the tourism sector as developing tool by focusing on foreign exchange, stimulating local economies, and creating of employment. With this in mind, Potter highlighted three generic marketing approaches which affect the profitability of an industry.

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First, cost leadership focus on cutting down cost in the sector to enhance its competitiveness. In this light, firms in the tourism industry can use the generic approach to improve its competitiveness (Grundy, 2006). Second, the porter’s model emphasizes differentiation which allows firms to be unique in the industry. In this regards, tourism firms should focus on attributes which are essential to the buyer. According to Awang, Wan Hassan, & Mohd Zahari, (2009), spatial aspect of demand, spatial elements of supply, patterns of movement, the effect of tourism, models of tourism and geography of resorts has emerged as the main component of geographical approach. However, modernization approach, dependency approach, and neo liberalization approach have developed as contemporary geographical theoretical approaches. 1 Dependency Approach The sector of tourism is most countries are impacted heavily by the multiple events in the states.

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In particular, the flow of tourist in any given countries is a subject to an array of factors such as hotel and resorts and prevailing policies regarding tourism. Notably, the tour operator is one of the most influential factors in the sector due to the financial impact it possesses. However, a more focus should be an emphasis on the internal element since most of the external forces are difficult to control. 2 Modernization Approach The approach has been focused on tourism as a development gimmick which has been adopted by countries in order to release economic gains. Tourism has acted as the main driver of foreign exchange in most countries especially those that are developing. For instance, such countries have few exports due to their weak economies; therefore, tourism has acted as the source of foreign exchange (Awang, Wan Hassan, & Mohd Zahari, 2009).

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Moreover, tourism has increased the gross domestic product (GDP) of countries due to an increase in services that support tourism. Furthermore, the stages are used on micro bases, in the management of primary micro sectors industry such as hotels and resorts (Seemanta & Sangeeta, 2014). Arguably, the endogenous and exogenous variables play an essential role in destination development. Elsewhere, other scholars have used economic development approach in tourism to delineate the economic merits in the different levels of economies. Local economies are the immediate benefits of tourism since its economic component are directly involved in the tourism. Regional and national level feels the impact on a broader scale. The effect reinforced the idea of role of government institution in tourism. A more focus on microeconomic objectives as compared to macroeconomic goals led to the emanation of a new approach in the tourism sector.

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For instance, qualitative and expansive changes were noted in Spain. Similarly, the use of an international form of tourism as a key element of economic development was noted in Malaysia. Moreover, “active’ traveler played a significant role in the regional development. However, the severity of the crisis indicated that the mode of regulation was not plausible. In this regards, this ushered in neoliberalism which was characterized by limited state control. Neoliberalism interpreted individual freedom as economic freed with a more focus on individual property. Furthermore, the ideology gained impetus due to dissemination by global firms such as the International Monetary Fund and the World Bank (Mosadale, 2016). The approach has been used in the tourism industry since it accentuates on the role of unregulated markets as a strategy of promoting economic development.

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