Disadvantages Of Small And Medium Tourism

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More than 85 percent of all tourism businesses that is directly or indirectly dependent on visitor expenditure are SMEs. They provide much of what is different and distinctive about a destination (Asia Pacific Economic Cooperation, 2003). Tourism SMEs or SMTEs are dominated by family business, whose motivations have been deeply rooted from commercial goals and policies to lifestyle intentions (Wanhill, 2005). Moreover, Wanhill (2005) clarifies that family enterprises can be classified into two kinds: first, the self –employed who employ family labor, have little market stability, low levels of capital investment, weak management skills and are challenging to advice or change; and second, the small employer, who employs family and non-family…show more content…
SMTEs face many obstacles to improve business performance:
1-Management: The very size of small businesses creates a special condition, which can be referred to as "resource poverty" that distinguishes them from their larger counterparts and requires some different management approaches (Urbano &Yordanova, 2008, p.169). Weak management skills, insufficient adjustment towards leadership, deficiencies in product development, incorrect investment planning, lack of economies of scale and scope; all these barriers faced SMTEs in managing their businesses (Buhalis &Peters, 2006; Corfu & Nistoreanu, 2006; Jones & Tang, 2005; Page, 2007; Yilmaz, 2009). Furthermore, most SMTEs lack a strategic long- term planning (Buhalis , Bastakis &Butler, 2004). This leads them continuously to fire-fight and neglect strategic developments. They often adopt a product oriented than a market oriented approach in their business (Buhalis , Bastakis &Butler,
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In recognizing the need for innovation and change in SMEs, the owner/manager needs to understand the strategic framework within which the organization is operating. This requires a full understanding of the firm's existing strengths, weaknesses, opportunities and threats. This should involve the consultation of all staff as to gain commitment to change and innovation (RT & Dale, 2008). Moreover, SMTE can gain sustainable competitive advantage through its ability to develop a set of core competencies that enables it to serve its selected target customers better than its rivals. Core competencies are a unique set of capabilities that a company develops in key areas such as geographic specialization and providing niche products (Yilmaz, 2009, p.162).Adopting recent advances technologies can also aid SMTEs in producing new products and services. Through investment information technology and good use of online marketing , SMTEs have the opportunity to reach new international markets cost effectively and compete with large entities with more resources (O'Toole, O'Marcaigh & Cunningham,

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