SRM Institute of

science and
technology,
Vadapalani
INTERNATIONAL TOURISM
MANAGEMENT
By
 MB20NH04 INTERNATIONAL
TOURISM MANAGEMENT
SYLLABUS - UNIT I
Introduction to Tourism Scope of
Tourism Development; Composite of
Tourism Industry; Characteristics of
Tourism; Trends in Tourism and
Hospitality.
Learning
Objectives
■ Understand what tourism is and its many
definitions.
■ Learn the component of tourism and tourism
management.
■ Knows the benefits and costs of tourism
Introduction
■ Tourism is the leader in the production of new
jobs.
■ Tourism has developed an important part of
the economic foundation of many countries.
■ Growth rate of services sector faster than any
other.
 Tourism – Myths and Realities
Myths Realities
The majority of tourism in the world is Tourism in the world is predominantly
international domestic (people traveling their own country).
Domestic tourism accounts for about 80% of
Most tourism journeys in the world are by air to u ris t tr ip s .
T h e m a jo r it y of trips are
as tourists jet-set from country to country
surface transport (mainly by car.
Tourism is only about leisure holidays. Tourism includes all types of purpose of visit,
including business, conference and education.

Employment in tourism means substantial Most employment in tourism is in the

travel and the chance to learn language. hospitality sector and involve little travel.

Large multinational companies such as hotels The vast majority of tourism enterprises in
chains and airlines dominate tourism. every destination are SMEs

Tourism is a straightforward sector demanding Tourism is a complex multi-sectoral industry

little research or planning demanding high-level planning underpinned by
research to succeed.
What is Tourism?
■ Four different perspectives of tourism can be identified:

■ The tourist: The tourist seeks various psychic and physical experience and
satisfactions. The nature of these will largely determine the destinations chosen
and the activities enjoyed.

■ The business providing tourist goods and services: Business people see
tourism as an opportunity to make a profit by supplying the goods and services
that the tourist markets demand.

■ The government of the host community or area: politicians view tourism as a

wealth factor in the economy of their jurisdiction. Their perspective is related to
the income their citizens can earn from this business. They also consider the
foreign exchange receipts from international tourism as well as the tax receipts
collected from tourist expenditures, either directly or indirectly. The government
can lay an important role in tourism policy, development, promotion and
implementation.

■ The host community: Local people usually see tourism as a cultural and
employment factor. Of importance to this group, for example, is the effect of the
interaction between large numbers of international visitors and residents. This
effect may be beneficial or harmful, or both.
Definition by UNWTO
■ Tourism defined as “ the activities of persons
traveling to and staying in place outside their
usual environment for not more than one
consecutive year for leisure, business and
other purpose”
Tourism Category
■ Tourism can be divided by four category:
1. International tourism
■ Inbound tourism: Visits to a country by nonresidents
■ Outbound tourism: Visits by residents of a country to
another country
■ Internal tourism : Visits by resident and
non residents of the country of reference
■ Domestic tourism : Visits by residents of a country
to their own country
■ National tourism : Internal tourism plus
outbound tourism
Traveler Terminology for Tourism.
■ All types of travelers engaged in tourism are described as
visitors.

■ International visitors are persons who travel for a period not

exceeding twelve months to country other than the one in which
they generally reside and whose main purpose is other than
exercise of an activity remunerated from within the place visited.

■ Internal visitors are persons who travel to destination within

their country, that is outside their usual environment, for a
period not exceeding twelve months.
Traveler Terminology for
Tourism
■ All travelers are subdivided into two further
categories:
■ Same-day Visitors: Visitors who do not spend
for the night in a collective or private
accommodation in the country visited. E.g. A
cruise ship passengers spending four hours in a
port or days-trippers visiting attraction.
Traveler Terminology for Tourism
■ Tourist: Visitors who travel to and stay in places
outside their usual environment for more than
twenty-four (24) hours and not more than one
consecutive year for leisure, business and other
purposes not related to the exercise of an activity
remunerated from within the place visited”.
 Classification of Visitors Segments.
■ Organised mass tourists – These people have little or no
influence over their travel experience other than to purchase
one package or another. They commonly travel in a group,
view the destination through the windows of a tour bus, and
remain in preselected hotels. Shopping in the local market
often provides their only contact with the native population.
Classification of Visitors
Segments
■ Individual Mass Tourist – These people are similar to the
previous category but have somewhat more control over their
itinerary. E.g. The tourist may rent an auto to visit attractions

■ Explorers – These people plan for their own itinerary and make
their own reservations. They tend to be sociable people who
enjoy interacting with people at the destination.

■ Drifters – These people, the backpackers group, will seldom, if

ever be found in a a traditional hotel. They may stay out at the
youth hostels with friends or camp out. They tend to mix with the
lower-socio-economics native groups and are commonly found
riding third-class rail or bus. Most tend to be young.
Classification of Visitors
Segments
■ Visiting Friends or Relatives (VFR) – These people are stay in
the homes of friends and relatives.

■ Business Travelers – This often encompasses any form of

business including conventions, trade shows, job seeking and
many other reasons
■
■ Pleasure travel – This too is a very wide and all-encompassing
classification .

■ Business and pleasure travelers – many convention and

business travelers plan to incorporate a period of relaxation
prior to or after their business.
Classification of Visitors
Segments
■ Tag-along visitors – Members of the family are common “tag-
along” visitors. The presence of tag-along children has created
a sub industry of child care and entertainment.
■ Grief travel – Family and friends attending funeral services.
This types of tourist will increase in importance as society ages.
■ Education and Religious travel – This group includes student,
those on a pilgrimage, missionaries and a host of others.
■ Pass-through tourist – The visitors who travel through the city
without staying in place or just stop by.
Classification of Visitors
Segments
■ This group of person are not include as a
visitors at all:
■ Transit passengers
■ Immigrant
■ The army who are work at the borders
■ The ambassador of each country
 Purposes of Travel
■ Business
■ Primary activities
■ Conventions
■ Consultations
■ Inspection
■ Secondary activities
■ Dining out
■ Recreation
■ Shopping
■ Sight seeing
■ VFR
 Purposes of Travel
■ Visiting Friends or Relatives
■ Primary activities
■ Socialising
■ Dining in
■ Home entertainment
■ Secondary activities
■ Dining out
■ Physical recreation
■ Shopping
■ Sight-seeing
■ Urban entertainment
 Purposes of Travel
■ Other personal business
■ Primary activities
■ Shopping
■ Religious visit
■ Medical appointment
■ Secondary activities
■ Dining out
■ VFR
 Purposes of Travel
■ Pleasures
■ Primary activities
■ Recreation
■ Sight-seeing
■ Dining out
■ Secondary activities
■ VFR
■ Convention
■ Business
■ Shopping
 Scope of Tourism in India

⚫ India holding position under 40 in

world most visiting nations.
⚫ Holding 6 positions in Asian Tourism
raking
⚫ Major advantages of India, Culture,
Weather, Spirituality, Yoga, Food, State
diversity and Huge number of
destinations.
Scope of Tourism in India
Tourism in India is the largest service industry, with a
contribution of 6.23% to the National GDP and 8.78%
of the total employment in India.
India witnesses more than 17.9 million annual
foreign tourist arrivals and 740 million domestic
tourism visits. The tourism industry in India generated
about 100 US$ billion in 2008 and that is expected to
increase to US$275.5 billion by 2018 at a 9.4% annual
growth rate.
In the year 2010, 17.9 million foreign tourists visited
India. Majority of foreign tourists come from USA and
UK.
Scope of Tourism in India

According to World Travel and Tourism Council,

India will be a tourism hotspot from 2009– 2018,
having the highest 10-year growth potential. The
Travel & Tourism Competitiveness Report 2007
ranked tourism in India 6th in terms of price
competitiveness and 39th in terms of safety and
security. Despite short- and medium-term setbacks,
such as shortage of hotel rooms, tourism revenues
are expected to surge by 42% from 2007 to 2017.
 Tourism Scope
There are many concerns and industries that are direct
contributors of the industry and hence in the long run create
greater job opportunities to those who would want to be a
part of the industry.
⚫ Hotels,
⚫ Restaurants,
⚫ Retailing,
⚫ Transportation,
⚫ Travel agencies,
⚫ Tour companies,
⚫ Tourist attractions,
⚫ Recreation and sport,
⚫ Cultural industries are some of the contributors to the
industry.
Career Options

⚫ Tourism Department: There are jobs as

Reservation and counter staff, Sales and marketing
staff, Tour Planners and Tour guides. There is also
the requirement of Information assistants at the
office of the Tourism departments who are selected
through competitive examinations held by the Staff
Selection Commission. The option of working as a
Guide is also listed under the tourism department as
the Ministry of Tourism recognizes three types of
guides;
Career Options
⚫ Hotels: The Hotel Industry being a service industry,
serves the basic requirement of food and
accommodation. One can choose from Operations,
Front office, House keeping, Food and Beverages,
Accounting, Engineering/ Maintenance, Sales, Public
relations and Security, etc. as one of the many
departments to work with.
⚫ Tour operators: They are the ones who help
organize conducted tours to the various tourist spots
and manage the travel and stay of the tourists.
Career Options
⚫ Travel Agents: Travel agents evaluate the requirements
of tourists and businessmen and help them make the best
possible travel arrangements from the many available.
Many resorts, travel groups use travel agents to promote
their tour packages to travelers.

⚫ Transport: Apart from airlines, travelers require rail

services, coach operators, car hire companies to go from
one place to another - by air, road, railway, sea etc. All
this is take care by the ones handling transport.
Future of Tourism

⚫ Tourism sector has created about 11

million jobs and has the potential to
create another 37 million jobs in the
future.
⚫ Although the future of the industry is
quite bright but still there is a lot of
development in terms of infrastructure
and skilled personnel.
Component of Tourism & TourismManagement

■ The component of tourism including:

a. The Tourist
b. The Host
c. Natural resources and environment
 Component of Tourism & Tourism Management

a. The Built Environment

a. Cultural
b. Infrastructure
c. Technology
d. Information
e. Governance
 Component of Tourism & TourismManagement

a. Operating sectors of the Tourism industry

a. Transportation
b. Accommodation
c. Food services
d. The attraction
e. The events
f. Adventure and Outdoor recreation
g. The entertainment
h. Tour operator
i. Travel agent
•Accommodation

•Accessibility

•Amenities

•Attractions

•Activities
It is very basic to tourist destinations.
The latest trend in accommodation is holiday villages.
Primary Accommodations

Secondary Accommodations
Hotels
Resorts
Complexes
Heritage Hotels
Motels
Youth Hostels
Holiday Centers
Farm Houses
Sleeper Trains
Caravans
“Accessibility is a means by which
a tourist can reach the area where
attractions are located”
Accessibility also means the transportation.
The important transportation modes are
road,rail,air and water transport.

Accessible tourism is intended as the set of services

and facilities capable of allowing persons with
specific needs to enjoy a holiday and their leisure
time with no particular barriers or problems.
“The basic facilities provided
in a tourist destination”.
Natural Amenities

Manmade Amenities
 Beaches Sea
Bathing
Possibilities of Fishing Opportunities of trekking

Manmade Amenities
Various types of entertainment
Facilities which cater special needs.
A tourist attraction is a place of interest where
tourists visit, typically for its inherent
or exhibited cultural value, historical
significance, natural or built beauty, or
amusement opportunities.
Natural Attractions
Manmade Attractions
•Climates
•Theme parks
•Landscapes •Museums
•Mountains •Ancient Monuments
•Beaches •Cultural Centers
Culture
Traditions
Scenic
Entertain
ment
Other
Attractions
“The various elements of tourism
services available which offered to
tourist at the destinations”
Tourism resources
Receptive Facilities
Entertainment and Sport Facilities Tourism
Reception Facilities
 Benefits and Costs of Tourism
■ Tourism brings both economic and non-economic
benefits and costs to host communities.
■ The benefits including:
a) Provides employment opportunities, both skilled and
unskilled, because it is labor-intensive industry.
b) Generates a supply of needed foreign exchange
c) Increase income
d) Creates increased gross national product
e) Reinforces preservation of heritage and tradition
f) Develops an infrastructure that will also help
stimulate local commerce and industry
g) Can be develop with local product and resources
h) Spreads development
 Benefits and Costs of Tourism
■ The costs including:
a) Develop excess demand for resources
b) Create social problems
c) Degrades the natural physical environment and
create pollution.
d) Degrades the cultural environment
e) Increase the incidence of crime, prostitution and
gambling
f) Commercialize culture, religion and the arts
g) Creates conflict in the host community
h) Contributes to disease, economic fluctuation
and transportation problems
 Introduction of Tourism and
Hospitality
Marketing
&
Characteristics of Tourism Industry
Introduction

Marketing is the process for getting a

company’s product or service out to
consumers.
Tourism and hospitality marketing is how
segments of the tourism industry such as
transportation, hotels, restaurants, resorts,
amusement parks, and other entertainment and
accommodations businesses promote their
products or services.
▶The following summarizes the 3 main components
of the marketing concepts:
1. Customers’ needs/wants/demands- the focus of
the marketing concept is to satisfy customer’s
needs, wants, and demands
2. Profitability- companies aim to generate profits
by satisfying their customer’s demands better
than their competitors;
3. Integrated marketing- marketing is
concerted effort from all personnel within a
company.
▶Tourism and hospitality are service
industry, therefore a different
approach is required for its
implementation
The special features of tourism and
hospitality marketing are ….
Characteristics of
the Tourism
Industry
Boracay Shoreline
 Intangible
▶Intangible:Looking at the photograph will
never equate to the experience of having
one’s hair blown by the wind, feeling the
sun’s penetrating heat while basking on it,
and hearing the roar of the motorboat.
This is why the word of mouth is
highly effective means of promoting
tourists destinations.
Parasailing in Boracay
Inseparable

Inseparable: Inseparable of the

guests and product or services.
Since what is being sold is the
experience, the product and the
consumer cannot be in different
places.
Variable
 Variable

▶Variable:the tourism experience is likely

to be different depending on when the
product is availed, who is one with, and
how the service providers deliver the
service at the time of consumption.
Perishable
 Perishable
▶Perishable:airline and restaurant seats,
hotel rooms, and function rooms are
perishable products. For example, if
the rooms are unoccupied during that
day then that’s a lost for the company.
Seasonal
 Seasonal
▶Seasonal: seasonality does not
refer to seasons of the year or the
weather conditions. It also refers
to behavioral patterns of the
travel market.
Substitutable
 Substitutable
▶Substitutable: with new destinations emerging
and competing in the global marketplace, one
destination can easily be substituted for
another destination.
When a new restaurant opens, the old
favorites are relegated to second choice.
However, identifying one’s competitive
advantage and a unique selling proposition
may help make a tourism product less
substitutable.
Tourism as a high involvement product
Tourism as a high involvement product

Decision making in the purchase of tourism

products is considered to be of high
involvement.
Tourism products of high involvement mean
that there is a greater degree of thought or
study involved prior to the purchase.
Expensive, complex, and
unrepeatable are characteristics of high
involvement.
Expensive product-go through a long and detailed
process of canvassing and comparing of brands,
suppliers, and product features- one would surely
make detailed comparisons before finalizing any
purchase.
Consumers may find complex products difficult to
purchase. Travel packages can be considered
complex mainly due to the variety of products and
services available.
The unrepeatable nature makes it a “once in a
lifetime” purchase. High cost of travel may not be
Trends and Issues in
the Tourism and
Hospitality Industry
Trends and Issues Shaping Tourism
and Hospitality Development

• Lifestyles
• Branding
• Food production and supply
• Technology
• Legislation and regulations
Hospitality Trends
• Location: restaurants and bars will be
available everywhere, plus a few exceptional
places being ‘destination’ restaurants
– Bars in Dublin, Ireland
– Meson de Candido, Spain
• Hospitality products are designed for
market segments based on lifestyle
– Family restaurants, sports bars and boutique
hotels
• Branding
– It is a key factor for companies to stand out from the
competitors
• Trends in hospitality process design
– Production lining: services are organized on a
production-line basis
– Decoupling: separating back-of-house from front-of-
house activity in place and time
– Customer participation: customers help themselves for
service
• Sustainability
–Concerned about the environment
• Security and assets
–Customers expect that hotels are safe
places for the guests and their
property
A. Lifestyles

• Lifestyle and segmentation

Different products

Different promotion
Lifestyle Different
groups expectations
Different prices

Segmentation Different places

Your Generation?

• You consider ’80s music to be oldies

• You have a cell phone but no land line
• One of your first favourite movies was ‘Star Wars’
or ‘E.T.’
• You’ve used floppy computer discs but consider
them old-fashioned
• You were fascinated by Mickey Mouse and
Donald Duck
• Cigarette ads on TV once seemed normal
Lifestyle cohorts
• Baby boomers (born between 1946 and 1964)
– The working ones have less leisure time than other
adults
– Continue to travel and go out
– Treating work and personal sacrifice as keys to success
– Occupied with materialistic possessions and money
– Skeptical about advertising
– Prefer “classic” comfort foods
– They seek new places to visit that often are off the
beaten path
– They avoid organized tours
Cheung, Harker, & Harker (2008).
• Generation X (born between 1965 & 1979)
– Embrace change and dislike stability
– Emphasize work-home balance
– Like material possessions and shopping
– Associate good foods with certain brands
– Those with children are family travellers. They often
stay with friends and relatives when they leave home,
spending less on hotel rooms. They like “packages”
that are reasonably priced and convenient.
• Generation Y (born between 1980 & 1995/2000)
– Spend impulsively
– Technologically savvy
– Impatient and requiring immediate gratification
– Want fast food, but also healthier foods
– Fans for brands and fashions
• Implications
– As new lifestyle groups emerge, hospitality
products will be developed to meet the
tastes of different groups.
•More boutique hotels providing unique
experiences
– The baby boomer market is important in terms
of size, their propensity to travel and the
willingness to spend.
Socio-economic Types

• Budget travellers
–Average income, fewer household assets,
average age, but large in number
–They prefer roadside or budget motels and
family restaurants chains
–They look at value added features, such as
kids sleep free at hotels, free in-room
television, discount at restaurants etc.
• Adventure travellers
– They have household income and personal assets above
the norm
– They take more domestic and international travel trips
than the average
– They want to explore new places and meet new and
different kinds of people
– Soft adventure group wants more services and spend
more
– Hard adventure types are likely to go to places
without hotels and restaurants
• Luxury travellers
– They are wealthy and take the most trips and
longer trips
– They use travel agents
– They are NOT old
– They need to get rid of stress and seek new
experiences
– They look for excellent service and follow
through
– But this is a small market
Factors Influencing What People
Eat
Cultural factors

Lifestyle factors

Food decisions

Psychological
factors

Food trends
Asp (1999)
• Cultural factors
– Classification of what plants and animals are edible
varies according to culture
– Food is used to promote family unity when
members eat together
– Food can indicate ethnic, regional and national identity
– Food is also used to develop friendships, provide
hospitality, as a gift and for celebration
– Foods that symbolize these functions are
consumed
• Psychological factors
– People usually prefer foods that are
•Familiar
•Considered pleasant
•Usually the ones eaten
– Sensory attributes
•Taste
•Texture
•Colour
•Shape, form, size of pieces and temperature
• Lifestyle factors
– Lifestyles describe how people seek to express their
identity in many areas, including food selection
– Pleasure-oriented: sensory attributes food,
brand and high-value foods,
convenience foods
– Nutrition-oriented:
– freshness,
– quality,
– Safety.
• Food trends
– Emerging food trends that emphasize foods that are
• Fresh
• Convenient
• Ethnic foods with distinctive ingredients, flavors and spices
• Fusion foods
• Prepared home meal replacement, more food mixtures
particularly those with less meat
• More vegetarian meals
• Labelled natural or organic
• Easily available or bought
• Promoting health
• Physical performance-enhancing energy foods
B. Brand
• Brand = the name, associated with one or more items
in the product line, which is used to identify the source
or character of the item(s)
Kotler
• Brand associations
facilitate memory retrieval
attitudes / feeling
credibility and confidence
differentiate/position
basis for extension
• The brands of large and international
hospitality firms reassure consumers that the
standards and the system will be the same
everywhere
– Hilton, Hyatt, Toyoko Inn
– Starbucks, McDonald’s
• However, foodservice chains are less reliant
on tourists than on the local population and
may adapt their operation to reflect local
tastes
• The growth of the Internet has enabled small
hotels and restaurants to promote themselves
effectively in competition with big brands
C. The Food Supply Chain
Labour

Labour contractor

Grower / farmer

Broker

Manufacturer, Processor

Distributors, Wholesaler, Broker

Restaurant, Supermarket

Consumer
• Genetically Modified Food
• Major GM food categories
– Soya beans
– Maize / corn
– Cotton
– Canola
• Other possible sources of GMO
– Dairy products from cows injected with rbGH (a kind of
genetically engineered hormone).
– Food additives, enzymes, flavorings, and processing
agents, including the sweetener aspartame and rennet
used to make hard cheeses
– Meat, eggs, and dairy products from animals that have
eaten GM feed
– Honey and bee pollen that may have GM sources of
pollen
– Contamination or pollination caused by GM seeds or
pollen
• Human health risks
–Many children in the US and Europe
have developed life-threatening allergies
to peanuts and other foods. Introducing a
gene into a plant may create a new
allergen
–Environmentalists are afraid that GM
food may pose health risks that are
not yet discovered
• European Union
– Consumers distrust biotechnology, its applications, and its
regulators
– EU Regulations generally assume that GM foods differ
from the risk associated with other food products
– Precautionary principle
• North America
– Consumers are much more passive than in the EU
– In Canada and the US, GM foods are regulated in the
same manner as food derived from conventional methods
– Principle of substantive equivalence
Hobbs & Plunkett (2006).
 Seed
provider
The other parties in
the supply chain
may deliberately
Farmers hide up information
about GM or do not
know the status
Manufacturer
themselves

Wholesalers

Restaurants Consumers
• GM labelling
– In EU, products which contain 0.9% or more of
authorized GMOs have to be labelled
– In Hong Kong, labelling scheme is voluntary on the
grounds that there is no international consensus and the
cost impact to the trade
• Food items with 5% or more GM materials in
the ingredient(s) are recommended to be
labelled as “genetically modified”
• GM organisms traceability mechanism
– Businesses should retain information about products that
contain or are produced from GM organisms throughout
the food supply chain

GM food
Previous steps in
causing
the supply chain
problems

Other restaurants

Other consumers
• The Ministry of Agriculture in China granted
bio-safety certificates to two pest-resistant
GM rice varieties and a corn variety in
November 2009
• “The application and research on GM
agriculture is definitely a future trend in China
and is among the strategic measures to strive
for a more competitive agricultural sector
through technology,” Wei Chao An, Vice
Minister of Agriculture, said in March 2010.
D. Technology
• Information Communication Technologies / Web
2.0 have great impact on the marketing of
restaurants
• Tripadvisor and OpenRice.com are some of the
famous platform for community members to share
their reviews

Reviews
tripadvisor OpenRice.co
Ratings m

Photos O’Conner (2008)

 Restaurant Pay to join as
members customer

Restaurant Risk of dishonest

Review reviews
platform

Restaurant Word of mouth:

• Information cost low customer

Those not linked to a • Review from users

network become less More objective,
competitive credible (?)
Web 2.0 and Consumer
Community
customer
customer

customer
Web 2.0 Restaurant
Platform
customer

customer Community
customer
collective bargain
power
Groupon: Collective Buying Power

• Groupon started in November 2008 in

Chicago
• It features discounts of 50-90% off
great restaurants and dining
• Good business for the restaurants?
– Groupon customers seldom spend more.
– These customers also seldom come back
unless with another groupon.
– Redemption seems unrestricted by anything
other than a time limit on 'the deal'. Whether
a restaurant is equipped to deal with ALL
people redeeming their 50% off Groupons
within a short time is questionable
E. Legislation and Regulation

• Non-smoking legislation
– Smoking (Public Health) Ordinance (Hong
Kong)
– Hong Kong (2007), China (2006; May
2011), France
(2008), Spain (2011)
• Smoke-free restaurants and bars reduce
exposure to tobacco smoke toxins among
hospitality workers and patrons
• In China, the law's critics say the penalties are only
empty talk
• The smokers can easily leave the scene long before the
arrival of the law enforcement officials
• Neither the smoking-control volunteers nor the area's
supervision officials have the right to detain offenders
even if they refuse to stop smoking.
• It is complicated and time consuming for people to dial
the public supervision hotline to report offenders, and
wait for the law enforcement units to take over the case
• According to a review, all of the best
designed studies report no impact or a
positive impact of smoke-free restaurant and
bar laws on sales or employment.
• But studies funded by the bar and restaurant
associations and tobacco companies often
find that smoking legislation has a negative
effect on restaurant and bar profits
Scollo, Lal, Hyland and Glantz (2003)
• Dutiable Commodities (Liquor) Regulations (Cap.
109B)
– No licensee shall permit any person under the
age of 18 years to drink any intoxicating liquor
on any licensed premises.
• In US, research shows young people begin to
drink at 11 for boys and at 13 for girls. Youth that
begin drinking prior to age 15 are 40% more likely
to become alcoholics.
• Prevention of Bribery Ordinance
Minimum Wage Ordinance

• The Statutory Minimum Wage came

into force on 1 May 2011 and the
initial Statutory Minimum Wage rate is
$28 per hour
• What may be the effects on the
workers, the customers and the
employers?
Corporate Social Responsibility

• A corporation may be held socially

and ethically accountable by an
expansive array of stakeholders
such as customers, employees,
governments, communities, NGOs,
investors, supply chain members,
unions, regulators and media.
Maloni & Brown (2006)
Dimensions of CSR

Animal welfare Biotechnology Health and safety

CSR in the
Supply Chain: Labour and
Environment
Food Industry human rights

Community Fair trade Procurement

• Animal welfare: animals should not endure
unnecessary suffering
• Biotechnology: sensitive to consumer
attitudes about the use of biotechnology
• Community: volunteering and philanthropy
(e.g., McDonald House)
• Environment: sewage, air pollution, waste
disposal, food miles
• Fair trade: should support prices to the suppliers to allow
them to avoid poverty and sustain business longevity
– Starbucks was accused by NGOs for not providing
fair trade prices to coffee suppliers
• Health and safety: food security, food traceability, healthy
lifestyles
• Labour and human rights: worker registration, minimum
wage, employment terms and conditions disclosure, safety
training, work safety
• Procurement: issues of favouritism and preferential
treatment, bribery, gifts, obscure contract terms