All-Inclusive in Greece Group Number 15 SIB 3Rd Semester, 2016

All-Inclusive in Greece Group number 15 SIB 3rd semester, 2016

Gonaid Muslim, 57897 Jahan Fredskilde Gholamian Andersen, 57923 Peter Ravnborg Nissen, 57918

Supervisor: Emil Pull

Total amount of characters: 99.512

Project outline: 4

Introduction: 5

Problem field: 7 Research question: 9

Methods and Methodology: 9 Delimitations of the project: 11 Limitations of the project: 12

Epistemology: 12

Literature review: 14

Discourse theory: 15 Fairclough discourse theory: 16 Fairclough three-dimensional model: 18 Social practice: 18 Discursive practice: 18 Text: 19 Pierre Bourdieu: 19 Habitus: 19 Capitals: 20 Economic Capital: 20 Cultural Capital: 21 Social Capital: 21 Symbolic capital: 22

The Multiplier Effect: 22 Fiscal Stimulus: 22 In case of demand inflation: 24 In case of cost inflation: 24 Summary 24

Chapter I - Tourism and all-inclusive concept 25 Pros of the All-inclusive concept: 25 Cons of the All-Inclusive concept: 28 Summary: 30

Chapter II: Tourism in Greece 30 Summary: 39

Chapter III - Motivation and discourse: 39 Discourse analysis of motivations behind the AI choice: 42 2

Time discourse: 42 Security discourse: 44 Cultural discourse: 45 Economical discourse: 45 Summary: 46

Chapter IV - Conclusion 47

Bibliography 50

Project outline:

In the beginning of the project we will have an introduction of the topic we are investigating. Which is then followed by a problem field, here we intend to specify and narrow down the introduction of the topic. We will be answering the question: How, or in which way, do all-inclusive tourism contribute to increase the economical development in host countries with special focus on Greece. How can we understand the motivation of people using all inclusive packages? We will then have a chapter about our choice and decision of our methods and methodology. Following a chapter about our choice and decision of our theories. In chapter 1 “Tourism and all-inclusive concept” we will be discussing the pros and cons of the all-inclusive concept. In chapter 2 “Tourism in Greece” we will be analysing different factors that the all-inclusive tourism creates, this includes changes in, tourism earnings, unemployment rate, employment of foreign workers, and gdp. In chapter 3 “Motivation and discourse” we seek to understand the underlying motivations behind the choice of choosing the all-inclusive tourism packages. Furthermore, we will also be applying discourse analysis to these motivations, to uncover the reasonings behind it. Lastly, in our final chapter we will have a conclusion of the entire project, where we will highlight the main findings.

Introduction: As long as mankind has existed it has traveled. Whether this was for survival purposes, experiencing new places, or for business, mankind has always traveled. In more recent times travelling, or tourism has become an industry in itself, and a huge one at that. It has especially expanded in the last century with all the new travel forms, such as planes, cars, etc., making it easier to travel from A to B. Globalization in itself has contributed greatly to the tourism sector, the world has become “smaller”, more manageable, and in reach. There are many factors in the tourism industry. There are the tourist who are travelling, but also the hotels where the tourists are staying at, also the transportation company, which the tourists use to travel to their destination, and of course the traveling company, which is in charge of booking all these services if the tourists cannot, or will not, manage it themselves. But one must not forget the destination in which the tourists travels to. The islands, cities, mountains, etc. whose people are dependent on these tourists, the people that consider tourists as their bread and butter.

The World Tourism Organization defines tourism as; Activities relating to personal travel and stay outside their usual environment for recreational or business purposes. Therefore, a tourist is a person who travels from one place to another for a shorter or longer duration of time and then travels back home to their country again. The tourism industry is today one of the world's largest industries - perhaps the largest. In the year 2000, the number of tourists amounted to 699 million., Which was a growth in the previous year of 7.4%. Of these tourists, 58% preferred a European country as a travel destination. Worldwide tourism revenue in 2000, amounted to 476 billion dollars. Which was an increase of 4.5% over the previous year.

The following graph shows how large the tourist income is in different regions of the world:

The latest figures from the World Tourism Organization of the most visited tourist countries covering the year 2000. The 15 most visited countries are:

An All-inclusive tourist purchases a complete trip with a travel agent who arranges transport, housing, and meals. The travelers are looking for unknown locations and

typically they travel without plans and fixed targets. Therefore, the all-inclusive resort will have everything prepared for them, and they don’t need to spend any cash in the destination country, as they have already paid for everything they would need before they even left their home. Tourism has become one of the fastest growing economic sectors in the world, and many countries rely on their tourism sector for economic growth (UNWTO). At a global scale tourism, has generated 10% of global GDP, and has created 1 in 11 jobs for the global economy in 2014 (UNWTO, 2015). When looking at Greece however, the numbers aren’t the same, Greece had an estimated of 18 million tourists in 2014, this generated an estimated 12 billion euros (UNWTO, 2014). These numbers show us that in Greece they were making around 15% less money compared to the world average. However, tourism has contributed to around 16% to the GDP of Greece and further it has also generated around 18% of the employment. In 2008 Greece had a GDP of 20,795 euros per capita, 5 years later, in 2013, this number was 16,302 euros, which is a decrease of over 20% (UNWTO, 2015). We can also observe that the unemployment rate has had a significant rise since 2006. In 2006 the unemployment rate was around 7%, this number rose to 27% in the year 2014 (UNWTO, 2015). All of these factors has had a devastating effect on the Greece economy. It is commonly known that tourism provides wealth to a country, contra-wise it is also known that not all kinds of all-inclusive tourism bring wealth. This project is drawing on the theory that all-inclusive travel has an impact on a country's economy.

Problem field:

A recent development in the international tourism industry has been the “all-inclusive tourism”, which emerged as a package holiday concept in sand, sea, and sun tourism destinations. All-inclusive tourism is defined as “…a preplanned and prepaid trip that covers transportation, accommodation, meals, and sightseeing…” (Wineaster Anderson, Catalina Juaneda, Francisco Sastre, 2001) or as Karen Poon (1998) defined

it “a single-priced package that included virtually all the services needed for the trip.” (Poon, 1998, In Tourism Economics, 2008, 14 (3), 645-655). Historically, the concept of all-inclusive tourism began in isolated travelling destinations or resorts as a way of meeting the needs of tourist and giving the complementary services there would otherwise have been a lack of (Joaquín Alegre, Llorenc Pou, 2008) But even though researchers thought all-inclusive tourism was just a trend, it has proven otherwise. More recently this form of tourism has shown increasing popularity, which according to Joaquín Alegre and Llorenc Pou (2008) the reason being that “…they reduce uncertainty about the total cost of a holiday and are becoming a common type of package at destinations that are known to tourists.” day and are becoming a common type of package at destinations that are known to tourists.” (Joaquín Alegre, Llorenc Pou, 2008). Generally, European tourists have shown an increasing interest in this form of tourism and it has now become one of the most common ones (Joaquín Alegre, Llorenc Pou, 2008). Due to all-inclusive tourism is per definition “all-inclusive” it is discouraging the tourists from leaving the facilities, which have been subject to criticism (Issa & Jayawardena, 2003). In “Tourism expenditure and all-inclusive packages – the case of a mature Mediterranean destination” Joaquín Alegre and Llorenc Pou (2008) made two major findings: first, all-inclusive tourism leads to a reduction in the destination’s revenue from tourism compared to other types of tourism. Second, the all-inclusive concept is to meet every tourist demand within the walls of the resort. The tourists have already paid for everything when they make a booking with an all-inclusive resort. This means since they have already paid for what they need before their departure, it is unlikely that they will be spending more money in the destination country. Usually, the all-inclusive hotels will accommodate you with all of your daily meals, all of your drinks, daily activities, different kinds of entertainment along with many more options, depending on the hotels individually. This all-inclusive concept has been criticized by many for the negative

impact it is bringing on the economic growth of a country and on the local community the hotel is residing in. The all-inclusive concept can have further disadvantages, such as importation of goods and services. This includes outsourcing of employees and for companies such as AI resorts to import their food/drink products. Doing this has a big negative effect on the locals, as the locals will now not be able to sell their products efficiently. Furthermore, bringing cheap labor takes jobs away from the locals, which only worsens the local community. In the case of Greece, this is especially crucial as they are currently in an economic crisis, therefore, that the all-inclusive hotels are taking economic growth from the locals are excessively damaging for the economy.

This project aims to establish a more in-depth understanding of the concept of all-inclusive tourism from a socio-economical perspective. This problem will be investigated in the case of Greek tourism. Hypothesis: All-inclusive tourism has a negative effect on the local economy, for instance, increasing the unemployment rate and socio economical problems. This project aims to establish a more in-depth understanding of the concept of all-inclusive tourism from a socio-economical perspective. This problem will be investigated in the case of Greek tourism.

Research question:

How, or in which way, does all-inclusive tourism contribute to increase the economical development in host countries with special focus on Greece? How can we understand the motivation of people using all inclusive packages?

Methods and Methodology:

The idea of this project came when one of the authors went to Greece in the summer of 2016 and used an all-inclusive package form. The resort was located on a small Greek island and the island itself contained a small population. What quickly was found lacking by the authors was the lack of socio-economic growth on the island. There were all these high star hotels and resorts filled with tourists, but the local shops and restaurants, as the authors was used to from other destinations, was almost not around. Our research also lead us to find out that a large proportion of the staff are foreign people, and not Greeks. These two observations lead to this project and it’s research question. During the work with this project some empirical problems occurred. The data needed to answer the research question was nowhere to be found, and the Greek embassy in Denmark did not have any answers either. The authors were not able to travel to the (or a) Greek island to conduct their own empirical data, which lead to the project using secondary data, data conducted by other scientist. Thus, most of the empirical data used in this project is conducted by other researchers in similar fields of studies albeit not exactly the same as ours, as we have a focus on the country of Greece. This secondary data consist of mostly of quantitative data in the form of statistical analysis. These statistical data shows the economic growth in Greece in the past decade, the growth of the tourism industry, the motivational factors behind the all-inclusive choice from the tourists perspective, and more.

We are using other researchers data, firstly, as a descriptive research of the concept – All-Inclusive tourism and its economic impact – and, secondly, as data materials in a discursive analysis of the traveler’s motivation. A discourse analysis is made of the tourists’ motivations for using AI packages, this discourse analysis is inspired by Fairclough and his critical discourse analysis. The aim of the discourse analysis is to “go” behind the statistical facts and focus on the relationship between the facts about

motivation and the idea or discourses that might be behind the motivation as a social practice. But tourists motivation also involves non-discursive elements, which according to Fairclough can be explained by applying cultural or social theories. To explain the non-discursive in the tourists’ motivations for using AI packages we are applying theories from Pierre Bourdieu, where we are using his (Bourdieu's) notion of capitals - social, economical, and cultural – and his notion of habitus. We find Bourdieu’s idea about taste in his book Distinction very interesting in relation to people’s usage of all-inclusive package tourism. Bourdieu shows the importance of social, cultural and economic capital in people's life especially in relation to art. He wanted to show the hidden facts behind the statistical relationship “between educational capital or social origin and this or the type of knowledge or way of applying it, there are relationships between groups maintaining different, and even antagonistic, relations to culture, depending on the conditions in which they acquired cultural capital and the markets in which they can drive most profit from it” (Bourdieu 1980:225-254, in David Oswell 2010:328).

Moreover, this project is going to apply quantitative methods in order to look at the economical impact the all-inclusive hotels are having on Greece. The usage of quantitative methods will primarily be displayed through charts, which contains data the authors have been gathering through the website www.Databank.worldbank.org. The numbers we have been comparing have different sizes, which are why index numbers made it very useful for the authors, as it made them easily comparable. Economists regularly use index numbers, and it is an easy and foreseeable way to detect a change in a certain variable. Moreover, index numbers look at observation in relation to its base year, in this project, the base year is 2006, and calculates the percentile change each of the following years are bringing in relation to the base year. Furthermore, the usage of index numbers gives the readers of the project the opportunity to make their own judgment by simply looking at the graphs the project are presenting. The calculation of

the index numbers, the authors have been calculating themselves using the following formula: Current year/base year*100

After each recalculation of the gathered data, it has been compromised into a statistical layout. The statistical layout is shown in this paper in form of graphs, with comparable variables, which have been arranged and finished in the Office software Excel.

Delimitations of the project:

An important note in relation to this project’s delimitations is the completing of analysis based on quantitative methods, as the authors of the project have not yet had the mandatory course, quantitative methods, and therefore the knowledge to describe and handle data on a scholar level. However, the authors have been able to describe and understand statistical data and numbers, with the knowledge they have obtained through the mandatory workshops the authors have been attending throughout the previous semester. Moreover, the authors of this project have relied on tourists to be the primary variable in relation to the economic factors, as this is what the authors will be going to analyse, and a variety of other economic factors are excluded from the equation. A major concern in the literature we researched and obtained is the lack of all-inclusive information within Greece. There was literature on all-inclusive and there was literature on Greece, just not both of them together. This project is, therefore, the product of theory applied from other countries all-inclusive research to the first case study in Greece.

Limitations of the project:

Data which cannot be found during our research phase. The major concern was the lack of actual numbers on the amount of all-inclusive hotels, on their spending and on their employees. Another limiting factor is that the two numbers the authors used in

relation to calculating the average percentage of foreign employees were both summer holiday months. Which means that the number might actually be lower than expected by the authors.

Epistemology:

Several schools of philosophy are involved in the studies and research of epistemology. Epistemology is defined as “the study of knowledge” (Truncellito, 2005). In broader terms, it involves looking into the scope and nature of knowledge and any other justified beliefs. Epistemologists study knowledge and compare it against certain elements including truth, justification, and belief. They also ask questions that look to define knowledge, its acquisition, structure, limits and many other factors. The whole process of epistemology focuses on knowledge that has already been justified and not on the processes that led to the justification. For example, it would focus on the knowledge like multiplying two by six gives one twelve and avoid knowledge like how to ride a bicycle. What then is knowledge? When one has knowledge, they understand and are aware of particular elements of reality. Epistemologists believe that credible knowledge contains truth, evidence (justification), and belief (Truncellito, 2005).

Epistemology involves four main sources of knowledge, intuitive, authoritative, logical and empirical. Intuitive knowledge comes from beliefs, faith, and human feelings while authoritative knowledge comes from the works of other professionals in a particular field. Logical knowledge is either new knowledge based on someone’s reasoning or a new interpretation of information that already existed. Finally, empirical knowledge comes from research and is dependent upon facts that can be proven (Dudovskiy, 2012). All these sources of information can be applied in the process of research in a progressive way. Intuitive knowledge could come in before the study, authoritative and logical knowledge can be used in the middle of the research while empirical knowledge can be used at the end of the research. However, some studies do not involve all four

sources. This paper’s research on tourism, for instance, contains only three sources of knowledge described in epistemology.

Intuitive knowledge is usually used at the beginning of the paper when one basis information on their feelings, faith or belief. This paper begins by information based on the research of other people. The project quotes and paraphrases information from credible sources like the World Tourism Organization and other credible authors in the tourism and economics fields. Most of this information is factual and based on the research that these sources conducted that is why it is precise and contains specific figures. These sources are what have been described as authoritative knowledge in epistemology. The selection of these sources also applied the epistemology process as the knowledge had to be a belief that is true and has been justified for it to be credible. This paper also analyzes this information and compares them in a logical way within the paper.

Logical knowledge is also evident in the paper as most of the conclusions after research were based on logic/reasoning. For instance, most of the information on the advantages and disadvantages of the all-inclusive concept are based on logic. Also, the descriptions and choice of methodologies were based on reasoning and no prior stated facts. This paper also interpret the findings of other people and offer counter arguments based on logical explanations and possibilities. Finally, we conduct quantitative research. Although some of this research is not original, it is based on factual elements that can be proven. Epistemology is important in any research as it provides guidelines for the classification and selection of knowledge to be used. It also ensures that the information on a project is factual and can be justified. It had a similar influence on the research process ensuring that all the sources selected were credible and the information on the work can be used in future as a reference. We are inspired by the structural and constructionist approaches.

Literature review:

To enable the authors of the project to answer the research question, research within various sectors or markets had to be done. Moreover, the project is written with a concept in mind, the concept of classes by Pierre Bourdieu. However, to look into that concept, the authors of the project have chosen to analyse the economy of Greece using the multiplier effect or the fiscal stimulus theory, which originated from the Keynesian school and the branch of discourse analysis developed by Fairclough. The foundational structure of this project is inspired by a chapter within the journal on tourism economics written by the scholars Alegre and Pou (2008). Furthermore, that chapter is explaining how all-inclusive packages are less valuable to the destination country of tourism, and how the large parts of the revenue are staying in the country of origin. However, the research was done in a case study in the Balearic Islands, which was why the authors of this project thought it would be interesting to investigate the same concept elsewhere. A major difference between the work presented by Alegre and Pou (2008) and this project is the mixed method approach. In the chapter written by Alegre and Pou (2008), there has only been research with quantitative data, with data conducted from the Balearic Islands. The concern of the research gap is therefore not in mind, as this project is using another set of methods, and applying them to another country. Furthermore, to understand and have the ability to work with data originated within the tourist market, the authors first had to understand the tourist market. In order to do so, the authors gathered an article written by Haiyan Song, Larry Dwyer, Gang Li & ZhengCao (2012), which defines tourism, explains how tourism works, which markets tourism are drawing upon and how tourism have developed over time. The only thing this article is missing out on is the concept of all-inclusive. More importantly, it provided the authors of this project with a lot of knowledge that could be dragged upon, studied and compared.

At last, the authors needed some in-depth information regarding the concept of all-inclusive. Moreover, the information regarding what it is have already been conducted from the chapter presented by Alegre and Pou (2008), its concern was relying on who are using all-inclusive and what are their motivation behind their choices. That set of information was conducted from the academic article written by Wineaster Anderson Catalina Juaneda Francisco Sastre, (2009). Their primary focus has been to investigate why people are choosing the all-inclusive system, and what benefits and disadvantages there are compared with being a normal tourist.

Discourse theory:

A discourse is a certain way to talk about and understand the world. The discourse theory focuses on the relationship between languages, the reality and social consequences with the agenda of researching how the social world constitutes or is constituted through language in use (Jørgensen & Phillipsen p. 77). Many types of research use discourse and define it differently. In this project, we use a Foucault-inspired definition of discourse by Stuart Hall. According to Hall: ”By discourse Foucault meant a group of statements, which provide a language for talking about – a way of representing the knowledge about – a particular topic at a particular historical moment… Discourse is about the production of knowledge through language” (Hall, 2013, p. 29). Looking at Hall’s understanding of Foucault’s definition of discourse we have conducted our own definition. We define discourse as the way a topic is represented or constructed through language.

Fairclough discourse theory:

As previously discussed; discourse is a certain way to talk about and understand the world. The discourse theory has focused on the relationship between language, reality,

and social consequences, with the aim to explore how the social world is constituted or being constituted through the language used (Jørgensen and Phillipsen p. 77). According to Fairclough discourse is an important form of social practice, which helps to change the world, but at the same time it is even shaped and influenced by other forms of social practices. Thus Fairclough's discourse understanding puts great emphasis on analysis of change through language. Fairclough consider language "to be a form of social practice more than a purely individual activity or a simple reflection of situational variables" (Fairclough, 2008: 17) For example an all-inclusive package is a social practice, but this practice has roots in many other discursive practices such as time discourse, economic discourse, safety discourse, etc. Thus, the way "tourism discourse" was articulated in a speech has consequences on both the relationship between the parties and partly for the speech’s output. This means that this practice (speech practice) influence and are influenced by others in the context of social practices. Fairclough defines discourse in two ways. The first definition is based on the abstract use of the noun discourse that language as a social practice. In the second definition shows discourse as "a way of speaking that gives meaning to experiences from a certain perspective" (ibid. P.79). This understanding of discourse suits our analysis field because we want to find the underlying discourses behind the motivational factors from the perspective of the tourists using all-inclusive packages. shaped and developed as a social practice and the conditions - perhaps by non-discursive elements, accented and articulated during speeches and which can form the basis for the development and existence of this travelling from.

According to Fairclough discourse contributes to 1) construct "social identities" or subject positions. 2) To construct social relationships between people. 3) To construct knowledge - and meaning systems. (Ibid. P. 18) Thus Fairclough believes that discourse has three functions: - Identity function (building social identities in discourse)

- The relational function (staging of social relations and negotiation between discourse participants) - And the ideational function (how a text can make sense of processes, devices, and relationships) (Jørgensen and Philipsen, P.79). Fairclough considered discourse partly as a way of acting, a form in which actors can act in relation to each other, and one way to represent the world. This also means that there is a dialectic relationship between discourse and social structures and, more generally, between social practices and social structures (Fairclough, 2008: 17). Discourse is a practice that not only represents the world but also gives the world meaning, constitutes, and constructs. Discourse is an important form of social practice that both reproduce and change knowledge, identity and social relationships, including power relations and simultaneously shaped by other social practices and structures (Jørgensen and Phillips, 2008: 77). It is through participation in social practices that we as individuals construct and reconstruct our own and each other's identities, creates social relations and as well as construct knowledge and opinions.

When one analyses discourse one must focus on two factors: the communicative event (e.g. The speech or debate) and discourse. The core purpose of discourse analysis is to identify the relationship between language and social practice. The focus is on the discursive practices, the role in maintaining social order and social change. This is examined by analysing the specific case of language or of the communicative event as part of the discourse. Every communicative event serves as a form of social practice, as it reproduces or wider social practice through its relationship to the discourse (Ibid. 83).

Fairclough three-dimensional model:

The model aims to determine the relationship between language and action. This is an analysis of the discursive practices, the importance of maintaining the social order and

social change. That is, an analysis of the specific and contextual event of a current language or communication events as a part of a discourse order. Text, discursive practice, and social practice are the three levels of analysis in the model. According to Fairclough, all three levels must be involved in a discourse analysis of a communicative event. This means that you have to look at: 1) the text properties 2) production and consumption processes associated with the text (discursive practice) 3) the broader social practice which the communicative event is part of (social practice) (Ibid. p. 80).

Social practice:

The social practice, according to Fairclough, is non-discursive. These are the non-discursive social and cultural relations and structures that create the framework for discursive practice (Ibid. P. 98). There is also talk of the possibility of a critical way to relate to the way in which "subjects" is articulated as well as the conditions that form the basis for the choice of articulation. It is through an analysis of the relationship between the discursive practices and the general social practice that we can connect and conclude that the discursive practices provoke social change or reproduction of social structures (Ibid. P. 98).

Discursive practice:

The discursive practice describes the context in which discourse appears. This is how a text is produced, distributed and consumed, and how texts are shaped by and shape the social practice (Ibid. P. 93). The goal of the analysis of the discursive practice is to examine what consequences the discursive practice has on the social practice. E.g. when all-inclusive tourism is articulated, it happens in the discursive practice and in the context of a social context shaped by or forms the social practice.

Text:

In the analysis of the text level, it is the text properties that are subject to investigation. This examines how the text reflects the discursive processes, and how the text handles social events, social relations and constructs versions of reality, social identities and social relations (ibid. P.95).

Pierre Bourdieu:

Bourdieu (1930-2002) was a French sociologist and has been one of the great thinkers of recent times. We find Bourdieu’s idea about taste in his book "Distinction" very interesting in relation to people’s usage of all-inclusive package tourism. Bourdieu shows the importance of social, cultural and economic capital in people's life especially in relation to art. He wanted to show the hidden facts behind the statistical relationship “between educational capital or social origin and this or the type of knowledge or way of applying it, there are relationships between groups maintaining different, and even antagonistic, relations to culture, depending on the conditions in which they acquired cultural capital and the markets in which they can drive most profit from it” (Bourdieu 1980:225-254, David Oswell 2010:328). We also use statistical information made by other researchers to go behind the facts and discover or to get more knowledge of people social, cultural, and economic capitals and their travel cultural practice. In the following, we will describe Bourdieu's idea about habitus, social, economic, and cultural capitals. It is these concepts and understandings that will constitute the thesis’ analytical theoretical framework.

Habitus:

Bourdieu describes habitus as the way in which the individual has predisposes in a given situation. Habitus is the name Bourdieu gives to the way individuals act in differents situations. The act can be described as embodied dispositions. Bourdieu describes that habitus is

”a strategic-generative principle which enables the individual to cope with different situations (...) a system of durable and transposable positions at once integrates individual total sum of past experiences, while at the given moment acts as a matrix for the individual way to perceive, evaluate and act on.” (Bourdieu & Wacquent, 2009, 29). Thus, it can be said that the subject's habitus is the pattern of behavior and the way of acting in different contexts. The individual’s upbringing, networking, education, family, socialization has affected these behaviors, and the fields individual is and has been a part of.

Capitals:

According to Bourdieu, each and every individual is endowed with some different types of capital. Bourdieu understands capital as some values or resources of the individual (agent) or group of individuals, as the holder of the value can use to position themselves in the field - that is, the benefit of a certain value in a particular field. According to Bourdieu's capital is ”(...) Accumulated work (which materialized or incorporated phenomenon), which - at the moment it is acquired in private or exclusive auspices of players or groups of players - puts holders able to acquire social energy in the form of reified or living labor” (Bourdieu & Wacquant, 2009, 254). There are three types of capital: economic capital, cultural capital and social capital. In addition to these three forms of capital, Bourdieu argues that there is a fourth type of capital in which each of the three types can appear in - particularly symbolic capital (Ibid. 104). In the following short forms of capital will be described.

Economic Capital:

By economic form of capital Bourdieu refers to the economic power and influence the individual or group can hold. It could be prosperity, wealth, and material possessions such as: a house, a factory, a castle, a company high incomes etc. It is the sum of these various economic aspects that is used to position the individual's economic power and

influence in and opposite the field (Jerlang, 2009, 120). This means that economic capital is an expression of the agent's economic material resources.

Cultural Capital:

According to Bourdieu, if you want to understand the full scope and range of knowledge of the concept then cultural capital should truly be called information capital (Bourdieu and Wacquant, 2009, 104). Furthermore, he believes that the cultural capital exists in three forms: incorporated, objectified and institutionalized form (Ibid.105). Cultural capital in incorporated form must be understood as embodied dispositions or habitus of the individual. The objectified form refers to the material things as pictures, books, instruments, machinery, etc. Cultural capital in an institutionalized form is expressed through e.g. education and titles. Thus, it can be said that the cultural capital are the agents command of the legitimate culture codes, the sum of knowledge, education, titles, language - use and unfolding, formation etc.. It could also be the status of the individual in the field - is he a writer, artist, professor, politician, business leaders or an elite within the economy and industry sector.

Social Capital:

According to Bourdieu a person's social capital is depended on his or hers total sum of economic and cultural capitals. Social Capital can be the extend of a person's social relations, network, political relation, etc. ”Social capital is the sum of existing or potential resources, the individual or group has available over through a network of stable relationships and more or less official "connections", which means the sum of the capital and power that can be mobilized by virtue of such a network.” (Bourdieu & Wacquant, 2009, 105). This citation indicates that social capital also can be understood as power-relation and the position of each agent in a given community or social network.

Symbolic capital:

The symbolic capital is the total sum of the other forms of capital that contribute to how the individual actor acts in a particular field, and thereby be collectively recognized in the field. This means that the symbolic capital is the form each of the three basic forms of capital may be presented in (Bourdieu & Wacquant, 2009, 104). The agent's power and position in a field are determined by its renowned capital. This will cause the agent to achieve the most symbolic capital, which will help to position him in relation to other agents.

The Multiplier Effect:

A multiplier theory is developed to understand a cause – effect relation. The multiplier effect focuses on the relationship between a random input, and its follow-up benefits or consequences for the entire society the input were implemented in (Cochrane and Scholes, 2009). There are many branches of the multiplier effect, as it can be applied to almost anything in life, due to the basic idea that it is created around, which is: Input ± Cause/effect = Outcome

Fiscal Stimulus:

As formerly argued, the multiplier effect is the predicted development from any input. The theory about the multiplier effect was first developed within in the Keynesian economic school of thought. Today it runs by different names, even though Keynes and his followers originally named it the theory of fiscal stimulus (Frechtling and Horvath, 2016). According to Keynes the theory of fiscal stimulus have already had and would continue to have a great impact on the society (Cochrane and Scholes, 2009). Keynes stated that “the importance of money flows from it being a link between the present and future”, a quote his own theory of fiscal stimulus could help support (Frechtling and Horvath,

2016). The theory itself were developed around the basic idea that the effect of a single government spending or manipulation, which eventually would bring more wealth to the country or state (Frechtling and Horvath, 2016). The theory even suggests that fiscal stimulus would work to the extent that borrowing money and spending it would raise the economical output of the country or nation. Moreover, the effect would not only be noticed on the economic performance of the country, it would also be presented on the rate of unemployment, as it should decrease (Cochrane and Scholes, 2009). The theory itself is proposing that a greater demand would eventually cause a greater income to the entire country (Cochrane and Scholes, 2009). Furthermore, it suggests that even if the population within the country were consuming more, the result would be shown as an even greater rise in the GDP (Cochrane and Scholes, 2009). The word fiscal refers to everything that has to do with finances e.g. Debt public spendings and that is what originally needed to stimulate or affected in order for the theory to work. However, it was later figured out that any given input, would make macroeconomic changes affecting taxes, interest rate, unemployment rate and eventually GDP (Frechtling and Horvath, 2016). This understanding of the multiplier effect suits the analysis field of this project, as it is examining the economic implications and consequences of the all-inclusive hotels in Greece.

According to Keynes the stimulus of the fiscal would lead to growth in other sectors. Ex. if the government builds a bridge, the raw material needs to come from one sector, then the companies within that sector would make profits. The manual labor needs to come from another sector, and the companies within that sector would make profits. Both of these sectors have now made more profits than they have made before the government project, and they now need to give their employees a raise. The raise is making the employees spend more money, which is beneficial for other sectors in the market and so on. The development in the market is working its way around from sector to sector and the consumerism is rising as a result. Moreover, this can be classified as a market

growth upon growth relationship. Furthermore, that means the government is gradually profiting more in taxes. However, those were all the positive sides of the multiplier effect. Seen from the perspective of the government, the multiplier effect can cause inflation. But even in the case of inflation, the government would have tools to push the economy into the right direction (Frechtling and Horvath, 2016).

In case of demand inflation:

The government would tighten their fiscal policy (Frechtling and Horvath, 2016). In other words, they would stop investing in so many sectors of the society, which eventually would make the businesses revenues significantly smaller, and their employees won't get any raises. Moreover, the employees would stop spending money to the same degree as before. It would essentially slow down the society (Frechtling and Horvath, 2016).

In case of cost inflation:

The government would use expansionary fiscal policy (Frechtling and Horvath, 2016). This is the exact opposite as the solution presented above, as the inflation is caused from the exact opposite saturation. In this case, the government would start investing, to a degree where people once again can begin to earn more than they used to.

This project does not take inflation into account, as it simply does not go into fiscal policies. However, the authors have chosen to use the multiplier effect, as it gives the opportunity to look into which macroeconomic factors that change when all-inclusive hotels are being used to a high degree in Greece.

Summary

The aim of this chapter is to describe the theoretical approaches we use in order to answer our research question. We are applying discourse analysis in combination with

Bourdieu's social theory to find out what the reason might be for the all inclusive travelers motivation.

Chapter I - Tourism and all-inclusive concept

All-inclusive tourism is a relatively new concept, that a lot of people use for their traveling. However, does the tourists who make use of the all-inclusive have a different impact on the macro and the micro aspect of the economy, than the average tourist does? This chapter is going to analyse the concept of all-inclusive tourism, without any specific case, as we thought it would be interesting to see how the concept interacts within an economy. A classic presentation build upon the pro and con scale are the foundation for this next chapter. Moreover, each of the concepts will be put through the multiplier, to identify the advantages and disadvantages.

Pros of the All-inclusive concept:

“Studying the characteristics of tourism from the economic perspective is a relatively new area of research pioneered by Guthrie (1961), Gerakis (1965), and Gray (1966)”. With that being said this project is trying to study all-inclusive tourism from an economic perspective. Moreover, this chapter is going to explain how all-inclusive packages or all-inclusive tourists are contributing to the economy of its location country. The concept of all-inclusive tourism is defined as “…a preplanned and prepaid trip that covers transportation, accommodation, meals, and sightseeing…”. When tourism first became a subject of study, it was often referred to as either an industry or a market. According to Haiyan Song, Larry Dwyer, Gang Li & Zheng Cao (2012), it is essentially classified as either, as tourism is managed within a large variety of different sectors. In other words, tourists are a huge demand for the host country in many different sectors, such as transportation, production of goods etc. However, all-inclusive tourism, gets it all fixed, which means that they have already created the demand from all those markets before even stepping into the country they are visiting, as they have prepaid for a package

including all the goods, tours. Normal tourism is beneficial for all types of businesses as normal tourists usually, do not follow any specific pattern. They are a benefit for the restaurant business, the supermarkets, essentially everything within the sector which is classified as retail businesses. Moreover, they are beneficial for the wholesale businesses, as they are the suppliers to the restaurant's businesses and the supermarkets (Haiyan Song, Larry Dwyer, Gang Li, & Zheng Cao, 2012). However, the tourists choosing the all-inclusive system are people who have already been spending the cash from home, and the amount they have planned to use while they are in the country is significantly smaller than the ordinary tourist (Wineaster Anderson, Catalina Juaneda, Francisco Sastre, 2010). They are not purchasing as much from the local supermarket or the local restaurant as the ordinary tourist. They are, however, being a benefit for the people who owns the wholesale businesses, the transportation businesses and the tour operators who are in a partnership with the hotel the tourists are staying in (Wineaster Anderson, Catalina Juaneda, Francisco Sastre, 2010). As the all-inclusive system is being bought in packages for a fixed amount of money, a fixed amount of money would equally fall into the hands of the business owners who has a deal with the all inclusive resort. According to (Wineaster Anderson, Catalina Juaneda, Francisco Sastre, 2010) the all inclusive solution does not really hurt the economy of the country, it is just damaging for the small businesses located nearby, as it is not very common that the guests leave the hotels. With this thought in mind, this project is now trying to analyse and identify the economical benefits all-inclusive resorts are giving the partners of the all-inclusive resort and therefore, the entire economy of the host country. This project explains one part of the implication of all-inclusive resorts via the multiplier effect. The All-inclusive hotels are having their guests stay at the resort almost the entire day, which requires a lot of staff to be employed (Wineaster Anderson, Catalina Juaneda, Francisco Sastre, 2010). The all-inclusive system is gaining more popularity (Wineaster Anderson, Catalina Juaneda, Francisco Sastre, 2010), due to an increasing demand from the tourist’s origin country. With increasing demand for all-inclusive packages, more people are joining the workforce within the all-inclusive hotels,

moreover, this can result in an expansion of the hotel, but this is definitely not a certainty. Furthermore, the all-inclusive hotel will need their products such as beverages, food, etc. which they will buy from different wholesale stores, who will continue to be their supplier unless there is a cheaper more beneficial option for the hotel (Haiyan Song, Larry Dwyer, Gang Li, ZhengCao 2012). However, the workers will need to spend their salary somewhere, which eventually will bring more consumption to the country (Haiyan Song, Larry Dwyer, Gang Li, ZhengCao 2012). Higher consumption means higher demand, and with a higher demand the supply will follow, and once again more people are needed within the workforce. However, this should increase the taxes in the country, as there all of sudden are more people who are working, and workers are potential taxpayers. Parts of those taxes could be used in the educational system or schools, hospitals and once again it could be beneficial for the all-inclusive hotel, as they would be used on improvements to the infrastructure and other tourist services (Haiyan Song, Larry Dwyer, Gang Li, ZhengCao 2012). This development would happen over time, as all of the economical factors wouldn’t just switch over night. At last, the location of the all-inclusive hotel will gain popularity from many countries, and new hotels will open to meet the demand of the tourists. This was, of course, the positive impact of implementation of all-inclusive hotels, and all the effects listed above are the best possible outcome a state or nation could hope for. Over the last couple of decades, people from all over the world are traveling to southern European countries to work at hotels (Rerres et al., 2013). This trend has of course also been present in Greece, but even though one could argue that it has some negative effects, it also brings some positive effects along with it. Workers from foreign countries could have been traveling to work for two reasons 1) They have been traveling to the country to experience the culture within the country, and they are working so the experience won’t be too expensive 2) They are coming from a country where the salary are a lot lower than the country they origin from, and they are willing to take the work they can get (Rerres et al., 2013). In both cases, the foreign workers are going to

spend money while they are staying in the country, and when they are spending money, the country is benefitting from it, in the long term.

Cons of the All-Inclusive concept:

The main disadvantage of the All-Inclusive resorts is the lack of motivation for the tourists to spend extra money in the destination country. As explained, the tourists who choose to travel All-inclusive have already paid a fixed price for everything they would need, before they even left their home. An Enclave tourism is being created under the AI resorts, as these resorts have everything that is needed for the tourists, and in some resorts, these tourists wouldn’t even need to ever leave the resort. This creates a big disadvantage for the destination country, especially for the locals, as the tourists are now less likely to spend money while being in the destination country (Smeral & Weber, 2000). Another big disadvantage AI resorts are creating is economical leakages. Leakages is the amount of tourist expenditure that remains in the country after taxes, profits and wages are paid. Therefore, if the leakage amount is high it can have a devastating effect on the destination country (UNEP.org, Negative Economic Impacts of Tourism). A vast amount of the AI expenditure goes to airlines, hotels, and other international companies, it is estimated that these industries on average receive 80% of the expenditure and only 20% goes to local businesses (UNEP.org). There are three categories of leakages, Internal leakage (import-coefficient of tourism activities), external leakage (pre-leakage, depending on the commercialization mode of the tourism package and the choice of airline) and lastly invisible leakage (foreign exchange costs associated with resource damage or deterioration.) (Diaz, 2001). Internal leakages occur through imports, if the economy is weak when looking at producing quality goods and services, the import will be high. Invisible leakages are losses that happen when the leak is related to tax avoidance, offshore savings etc. External leakages are the total tourism expenditures that occur outside of the destination country (Sinclair, 1991). The external leakages are something we see on a large scale, when looking at All-inclusive

resorts, this leakage would for example go to the bookings of transportation to the destination country. Since the consumer purchases these services from their origin country, a vast amount of the money doesn’t flow into the destination country’s economy, as mentioned the amount of money that doesn’t glow into the destination country is on average as high as 80% (UNEP.org). Another leakage problem which these AI resorts creates is the importation of goods/services from a foreign economy. If these imported goods are necessary to purchase in the domestic economy to support local businesses, then it will hurt the local economy greatly, if they choose to import the goods instead of purchasing them locally. When importing goods, the funds flow completely out of the country and profit for other companies is lost. Not only does importing goods/services hurt local companies, it also has a devastating effect on the country’s gross domestic product, as in most countries international trade and importing goods represents a large amount of the GDP (Investopedia.com, The GDP and its Importance). If a country has a high leakage problem, there are several consequences that will follow. In the case of AI, it is only the resorts who will be capitalizing a big profit off of these tourists, everyone else in the country will be seeing next to no profits from the existence of these AI resorts. The profits that these resorts are taking away from the locals will result in the local companies not being able to function to their full extent. These local companies would be forced to fire employees, as their profits are receding, and thereby further worsen the unemployment rate of the country, and further the country’s economic situation. Furthermore, since this creates unemployment, less money will be flown into the country, as the average wealth per citizen will be lowered, therefore, less money is being spent and less money is being given in tax for the country, which again further worsens the country’s economic situation. More so, these companies that are taking damage from not profiting off of tourists will also be damaging other companies, such as suppliers, as they will not be able to purchase large quantities of goods from the suppliers. However, it can be argued that the AI resorts have to purchase their goods from these suppliers as well, and thereby negating this negative effect it has on the suppliers. But as we have seen, many AI resorts are importing their

goods from other countries to lower their cost and maximize their own profits, and hereby taking money out of the origin country and flowing it into a different country. Therefore, we can see that there are several layers who will be inflicted by these economical leakages, the local companies, the suppliers, the employees, and the country generally.

Summary:

In this chapter, the authors have been identifying the different impacts all-inclusive hotels are having on the country in which it is located. The authors have provided with information that concludes that all-inclusive hotels are affecting the economy at a macro and a micro level. Whether it is concerning the taxes, unemployment, the GDP all of the factors are getting affected and touched. It all comes down to the fact that, if the hotel is hiring people, they have to pay a salary, and then there is some change in the society at a macro level. Furthermore, this research has been done without any specific case, and can, therefore, be identified as theory on all inclusive. The next chapter is applying the same theories as presented above on the economy of Greece. However, there is one major obstacle, as the authors could not find data on the total amount of all-inclusive deals sold, and was therefore forced to use the total number of tourists instead.

Chapter II: Tourism in Greece

All charts are calculated into index numbers. Index numbers give us the ability to compare numbers in different sizes to each other, as they are all measured up against their base year. The base year in this project is 2006, and the rest of the years are the fluctuations measured in percentage or index as we have chosen to refer to.

Chart 1

Graph showing: The total amount of tourists The second part of this project's analysis will be to identify the development of the Greek tourist industry, throughout the years 2006 to 2014. The timeframe has been considered and chosen due to some external and internal factors. The external factor which we expect to have an influence on the number of tourists is the financial crisis, which started in 2006. The financial crisis started because of bankers who were gaining profits by giving out loans, which eventually meant that they were not evaluating the risk of the creditors (Taylor, 2009). Banks were going bankrupt, people were losing money and the international stock market went into the worst recession seen in many years (Taylor, 2009). When people are losing their money, jobs etc. one would think that the number of tourists was decreasing. However, the opposite has been observed, as shown in chart 1 the number of tourists is rising, especially from 2008 to 2009, where the total number of tourists are growing from index 114 to index 149, which is an increase of nearly 35% in just one year. This change cannot be explained by the external factors this project has been examining, which brings this project into the internal factors, the Greek crisis. With all the debt Greece was accounting for, they had to make some structural reforms, which were setting its mark on the tourist market within the country (as shown in chart 2a). Their prices were taking a downturn, and the tourists were coming to the country at an increasing rate that was not witnessed in over 10 years (Databank.worldbank.org, 2016). However, the increase more or less

stagnated late 2008 until 2011, and then the increase reappeared in the year 2013, and it is still increasing. In 2012 the amount of tourists dropped from index 151 to index 130. The main factor for this drop in the index was because of insurance companies, they were warning about traveling to Greece (Insurancefortrips.com, 2016). If you were visiting a Greek island that didn’t have a hospital, and you injured yourself, the insurance wouldn’t cover the transportation and medical care as you would require. These statements from the insurance companies were posted in the majority of the countries, from which the tourists originated. The warnings were posted as a result of a new all-time highest level of the Greek debt, and speculations around their place in the European union (G. Arghyrou, M. and D. Tsoukalas, J. 2011). 2013 and 2014 brought an increase from index 130 to index 156, which is the highest number yet to be seen. Their debt was at this point still growing, but they were staying in the European Union, which meant that they are more liable for the tourists again, as their insurance now could give them all of the medical benefits they would require (G. Arghyrou, M. and D. Tsoukalas, J. 2011).

Chart 2a

Graph showing: Total amounts of tourists and earnings from tourism in Greece

Chart 2b

Graph showing: Total amounts of tourists and earnings from tourism in Denmark

Chart 2a is presenting two variables. The first is the number of tourists visiting Greece, which is presented in the text above, and secondly the earnings Greece made on tourists. Once again, the sizes are calculated into index numbers, to make their development comparable, which was not possible as the number of tourists isin the range of millions and the earnings are in the range of billions. Moreover, the new variable this project is going to examine will be giving a clear picture of the efficiency of the tourism industry. The two variables are following each other at a consistent pace until the year 2009, where we can observe a large drop, the earnings are dropping from index 121 to index 110 meanwhile, the number of tourists is going up from index 114 to index 149. This fluctuation between the two variables is growing, which means that, even though more tourists are arriving in Greece, less money is made on the tourists coming to Greece. This fluctuation cannot simply be explained by one factor, as the financial crisis was affecting the world economy at a high level in that year. However, this development tells us that the average price of traveling to Greece may have been dropping far too much. That would explain the increasing number of tourists, and the

decrease in the income generated from tourism (Çızel et al., 2013). When the two charts are following each other, one could assume that the development in the price of travel is in order. From 2009 until 2013, the variables are increasing and decreasing at different levels each year. This indicates that there is some sort of risk originated from the country, in this case, the Greek crisis that the market simply does not know how to deal with (Çızel et al., 2013). To clarify the statement, this paper has conducted another graph created with the same data, but using numbers from Denmark instead of Greece, so as to show how tourism earning looks in a different country (Chart 2b). In this graph, the fluctuations are not as severe as the fluctuations from the graph conducted from Greece. This indicates that the price level of Danish tourism follows the amount of tourists Denmark receives quite well. Even though Denmark was affected by a financial crisis, the fluctuations were not as severe. Therefore, we can observe that a financial crisis isn’t the sole factor for such a large fluctuation in earnings. Chart 3

Graph showing: Amount of tourists and Unemployment rate in Greece

The third graph is going to explain the index gap there is between the amount of tourists and the earnings coming from tourists, by presenting a third variable, the unemployment rate. If the unemployment in a country goes too high, it will bring a lot of problems along with it, such as inflation, increasing rates, furthermore, it causes health and mental problems for the country (Drydakis, 2016). Hospitals can no longer pay all of the psychologists, doctors, and nurses that there should be available, which eventually will be damaging the society as a whole (Drydakis, 2016). According to chart 3 which describes the unemployment rate in Greece, we can observe that the unemployment rate is drastically rising in the year 2008. However, from 2006 to 2008 the unemployment rate was slowly receding, which was a tendency all over the world as a result of the economic boom before the financial crisis. However, the unemployment rate has been growing at a fast rate in between the years 2008 and 2013. A normal unemployment rate for a country is somewhere around 2-8% (Drydakis, 2016). In Greece, it went from around 8% in 2007 to 27% in 2013, which is an increase from index 100 to index 305 in only 6 years. In other words, they went from having fewer than 10% of their population not working to over a quarter of their population not working. With an increasing amount of tourists, the amount of people occupied in the workforce should also increase. When a country receives more tourists they would also require more workers, i.e. waiters at restaurants and more staff at hotels (Çızel et al., 2013). The actual development in chart 3 however, shows the exact opposite. Fewer people are working even though more tourists are visiting Greece.

In the publication by Panousi et al., (2014) (shown below) the table shows how many foreign workers there are occupied on Greek hotels in the year of 2013, and the number is as high as 18,79 percent in May and 20,76 percent in August. Therefore, this project is going with the assumption that 19,8 percent of the total employments on Greek hotels are non-residential or foreigners. However, the authors of the project were not able to find some more recent data, but as we have analysed the development in tourism from 2006 to 2014, this new dataset is still within that timeframe.

According to ‘Centre of planning and economic research’ from 2015, there is a leakage of 13,27 percent of the total revenue originated from non-residential or foreign workers in the year of 2014 in Greece. This contribution of data clarifies that there is a 13,27 percent leakage on the 20 percentage of the total employment in the Greek hotels. Moreover, this does not take the leakage of transportation into account, as transportation via flight and boats creates a leakage on 32,5 percent (Centre of planning and economic research, 2015). However, all-inclusive does not only create a leakage when the staff at the hotels are foreigners (Centre of planning and economic research, 2015). According to (Centre of planning and economic research, 2015), the majority of the leakages can be traced to the high star hotels, as they do not buy products such as beverages from within the country of location. Moreover, the majority of the all-inclusive resorts are categorized as high star hotels, as they should be able to keep their guests within their territory 90 percent of the time (Alegre and Pou, 2008). Those hotels are giving the large leakages because the guests are expecting that they can drink the same beverages, which they can find on the shelves in their own country (Alegre and Pou, 2008). Hereby, this project can conclude that “All-inclusive packages lead to a

reduction in the destination’s revenue from tourism” is applicable seen in the perspective of the economy of Greece. While 19,8 percent of the workers at the hotels are foreigners, there is an unemployment rate of 27,2 percent in 2013 (Data.worldbank.org, 2016). The high percentage of foreign workers is partly explained by a drop in the minimum wage that decreased from 876 EUR per month in 2012 down to 683 EUR per month in 2013 (Data.worldbank.org, 2016). A minimum wage decreasing to a substantially lower index can make people quit their job in objection, and a redistribution of labour is needed to meet the demand of consumers, or in this case, the tourists. This is where the foreigners are getting into the market, and occupying the low payment jobs. In 2013 30,39 percentage of all employees in one stared hotels were foreigners, compared with 15,19 percentage of all employees in five-star hotels (Panousi et al., 2014). One could assume that the largest part of the people working on the one star hotels are there because the minimum salary is higher than it is, in their country of origin, and the foreigners occupied on the five-star hotels are English speaking foreigners who are traveling to the country to experience the culture (Rerres et al., 2013). However, the poorest 20 percent of the population in Greece have had a decrease in income with 15 percentages in between 2006 and 2014, a decrease, which equally can be matched with the GDP, which also has been decreasing with 15 percentage (Data.worldbank.org, 2016). This project can hereby conclude that all inclusive do have a negative effect on the economy of Greece. Throughout this analysis this paper has provided information regarding the employments on the all-inclusive hotels, and how large parts of the employments are foreigners. It has however shown that there are some leakages present on the foreign workers, which there would not be on residential workers. These leakages, which might not be there if it was not for the decrease in the minimal wage. Especially at the high star hotels or more specifically the all inclusive hotels, there are also leakages on products, as they are bought from abroad. Furthermore, the national agricultural markets, beverages markets doesn’t get supported in the same way than

they do by the 1-star hotels, as their guests do not require the same kind of luxury goods.

Chart 4

Graph showing: Amount of tourists and GDP

This paper has now been provided with a positive impact of tourism due to the income it has provided for Greece, and it has been conducting a negative impact due to the probability of foreign staff due to an increasing unemployment rate. In this case, it would be beneficial to look into the broadest term of the economy measuring tools there is, which is the GDP. The GDP is being used to measure every countries performance, either for the individual or the country as a whole. Moreover, the GDP is accounting for everything that has to do with a country’s total production of goods or in this case services. GDP are often being measured in US dollars, as it makes the measurement international and universal, in our case we have measured the GDP into index numbers,

to make it comparable to the other variables. However, a critique of the GDP is that it does not take equality into account, as a growing GDP could be a result of an upper class gaining more money than usual. In the case of Greece, the GDP has been decreasing with nearly 14% over the last 8 years. Just like the rest of the world it had an uprising until 2008, as a result of the economical upswing before the financial crisis, but after that, it only went one way (Databank.worldbank.org, 2016).

Summary:

This paper has now been examining how the tourism and all-inclusive tourism have been affecting the country Greece. In detail, the chapter has been covering the effects and impacts the tourism have had on the different macroeconomic aspects of the economy of Greece. Furthermore, the analysis could not supply the authors with any direct answers on the problem, as the charts do not make it possible to link any direct causes of increase or decrease, it only enabled us to make assumptions on the numbers. Between the years 2006 and 2014, there has been an increasing number of tourists, which this paper links to a dropping price index on holiday tours, due to an increasing risk of going to Greece. However, the unemployment rate has been growing meanwhile there have been more visitors. A major reason to the increasing unemployment rate could have something to do with a minimum wage drop of nearly 25 percent, and the tourists are being provided with service coming from a growing number of foreign workers. An increase tourism has brought more foreign workers to the country, meanwhile, the poorest 20 percent of the population have 15 percent less money on their hands while the GDP have decreased 15 percent as well. In the third chapter of this paper, the authors of the project are going to explain the motivation within the people choosing all inclusive. Furthermore, the analysis is based on a broad look at the economy of the people and the discourses they drag upon, weather if their motivation of choice relies on time management, security within a country, the culture within a country, or if they are making their choice based on the economy.

Chapter III - Motivation and discourse:

This section seeks to understand the motivation behind the tourists’ choice of these all-inclusive packages. The focus is on the factors that may play a role in the tourist's decision making concerning the use of All-Inclusive package. It is interesting to look at the tourists’ motivation since it is this motivation that plays a crucial role in the choice of travel style and tour mode. According to Anderson, Juaneda, and Sastre, motivation should be seen as a fundamental factor in explaining tourist behaviour. (Anderson et. al., 2009). Pearce and Lee (2005) have a similar idea about motivation and argue that motivation is considered the starting point for understanding tourist behaviour and travel decisions. Pearce and Lee defined tourist motivation as a “global integrated network of biological and cultural forces that give value and direction to travel choices, behaviour, and experience.” (Pearce and Lee, 2005). According to Anderson et.al. there exist six approaches to theories and research on motivation in the case of tourism:

- Wanderlust and sunlust (Mansfield, 1992; Corcoran et al., 1996) - The push and pull theory (Cha et al., 1995; Wickens 2002) - The hierarchy of needs (Ryan, 2002) - The travel career ladder (Pearce and Lee, 2005) - Dichotomies (Mayo and Jarvis, 1981; Hyde and Lawson, 2003) - Old and new tourist perspective (Corcoran et al., 1996)

The first two approaches do not have any significant focus on all-inclusive tourism and therefore we do not apply these. In our case, the theory, which makes sense to apply, is the travel career ladder (hereafter: TCL), which draws upon thoughts from Maslow’s Hierarchy of needs theory of motivation. According to the TCL theory tourists’ motivation consists of five layers of needs: safety and security, self-esteem and development, relaxation, self-actualization/fulfillment and

relationships. The reason TCL is considered useful is because all-inclusive packages include “personal safety and security” (Wong and Kwong, 2004). Besides the TLC theory another theory has also proven quite useful, the dichotomy theory. The dichotomy theory perceives the tourists’ individual choice as a result of two opposing motivational forces that balance each other. These two forces are described by Mayo and Jarvis (1981) as the dichotomy between a tourist’s need for consistency and for complexity or between the desire for routine and familiarity and novelty. (Anderson, Juaneda, and Sastre, 2009) Whereas TLC can be applied in trying to understand the motivations behind all-inclusive package tour choices, the dichotomy theory is useful to understand that the all-inclusive choice may be associated with the consistence perspective, in which tourists prefer to minimize exposure to the unfamiliar since everything has been pre-planned for them and they remain in the resort enclave throughout the holiday period. (Anderson, Juaneda, and Sastre, 2009) Anderson et.al. has made a survey-based research on the motivations of participants in all inclusive package tourism in the Balearic Islands. The findings present five statistical tables showing the distribution of the different types of tourism, the characteristics of the tourists, and the motivational factors in AI tourism in the Balearic Islands. We are using this data as empirical data to make a discourse analysis in this project.

There are two kinds of data: one is concerning the characteristic of the AI tourists based on age, income, gender, occupation, and accommodation. The data shows that it is especially elderly people (above 64-year-old) and upper middle age people (45-64-year-old) who are using AI packages, more precisely 65.5% of all AI tourists from the selected countries are in these two age groups. Furthermore, according to the table, 42.3% of the AI tourists are retired.

Another interesting fact is that 36,2% of the AI tourists have a yearly household income between €20.000 - €30.000, and 18% have a yearly household income below €20.000.

This is interesting because it shows us that most AI tourists come from low-income households, in fact, 54,2% of all AI tourists are from a low-income household. Moreover, 64.7% of all AI tourists are staying in 3* resorts/hotels, which is more inexpensive, further indicating the AI tourist’s economic position.

Furthermore, the data presents three major categories of factors motivating the all-inclusive choice (Table III), convenience and relaxation, Safety and security, and Economy of resources, and in total 18 different factors in these categories. We are not following their categories but inspired by this survey based research we want to conduct a discourse analysis of four by us selected discourses: Time discourse, Security discourse, Cultural discourse, and Economical discourse. The 18 different factors are placed in these four different discourses and are either represented by one or two of these discursive practices.

Discourse analysis of motivations behind the AI choice:

The aim of the following discourse analysis is to go beyond the above-presented motivational analysis and find out, what or which discourses and social practices that can constitute the travelers decision making due to usage of the all-inclusive package tourism. As mentioned before, we have selected four major discourses in relation to travelers motivations beginning with time discourse.

Time discourse:

Time is a discursive practice, which is rooted in other discourses such as relaxing discourse, convenience discourse, and as a social discourse. Time as a discursive practice can be related to the planning activities before the departure, and during the holiday. What is important here is that time discourse constitute the travelers social practice, which means a practice concerning with managing or management of time – time management as a social practice.

80.9% of the participants in this survey of research agree or totally agree with “Having more time to relax” as a motivational factor for them choosing an AI package deal. This discourse is closely related to another social practice namely “saving time organizing the tours’, which 76.9% of the participants agreed or totally agreed with. From this survey we can conclude that time is relevant for most AI tourists, whether time is understood as something before the holiday starts, as in “saving time organizing the tours”, or during the trip as “having more time to relax” may be articulated as two different discourses but we believe that they are under the same discursive practice, time. They indicate two different social practices. “Saving time organizing the tours” may indicate a stress filled environment in country of origin where time is short, whereas “having more time to relax” may indicate a hunger (or lust) for more time during the stay. Time is also an important discourse to the social life of families with children, e.g. 61,4% of the participants articulated that they take advantage of the child care services within the concept of AI. This utterance indicates that parents are articulating the time without their children as an important social practice for them. On the other side children will also benefit of being with other children in a social context. The question that arises here is: how can we understand time as social practice? Why do people need a travel agency to manage their travel?

Traveling is a field with many agents. According to Bourdieu (2009), thinking in fields is to think relationally. On the analytically level a field can be defined as a “(...) network or a configuration of objective relations between different positions. The positions are objectively defined in terms of their existence and the constraints they impose on the actors and institutions that fill the positions by virtue of their current and potential placement in relation to the distribution of various kinds of power (or capital), which provides access to the specific advantages and benefits that are at stake in the individual field” (Bourdieu 2009:84-85). Fields can therefore be understood as social spaces with their own specific logics, roles, and positions. Inspired by Bourdieu's idea about field, traveling as field can be understood as a microcosmos or a social space

within the society as a major field. In our postmodern society with a high degree of specialization and knowledge it will be nice to have some other experts – a travel agency that helps people with organizing their time, or saving time. Time management constitutes an advantage for tourists both before and during their holidays. Traveler´s use of or choice of AI can be understood as recognition of the travel agencies positions as having a dominating position in the field of travel. They save time that can be used in the other fields, which may be more important for them - spending more time with families, or at work, etc. The childcare service gives the possibilities to parents and the children to expand their social capital. Parents expand their social capital with other parents and children with other children. But as mentioned before, elderly people constitute a major group using AI packages. It could indicate that they have a limited cultural capital concerning the knowledge about travel and therefor AI establish a good travelling social practice – they do not need to think about all those details relating to traveling. Experts with an extended cultural capital do care of their travel by managing time for them, that is travel agencies and the AI concept.

Security discourse:

Security, like time, is a discursive practice, which is rooted in other discourses. Unlike time, security is rooted with discourses such as safety discourse, reliability discourse, and assurance discourse. Security as a discourse may be related to the fear in people when travelling, such as the fear of not having access to ‘proper’ food – or getting food poisoning -which 60.2% of the participants agreed (or totally agreed) with as a motivational factor when choosing AI packages. It is also possible that this security discourse is related to reliability as 70.8% of the participants agree or totally agree with “reliable transport” being a motivational factor for AI packages. In conclusion, it is the fear of the unknown, the fear of not being assured the right quality of meals, the fear of not knowing if the transport in the country of destination is reliable. Furthermore, 64.3% of the participants agrees or totally agrees with “feeling safe at the destination” as a motivational factor, this further indicates that safety and security is a vital motivational

factor and a major discourse in the case of AI packages. But this motivation - this fear - could also indicate that the majority of the people using all-inclusive packages have an insufficient cultural capital – they lack knowledge about other countries or at least the country they are visiting. Fear related to what kind of meals or transport facilities available at the visiting country could indicate that AI tourists want an environment in which is similar to their own country, or identifiable by their habitus. As Bourdieu writes habitus is structured by field and it itself is structuring the field. This means that AI tourists using their own habitus to dominate the structure of the visiting country.

Cultural discourse: Traveling is a social practice, and is rooted in a cultural discourse. Similar to the previous discourses discussed, the cultural discourse is likewise rooted in in other discourses. These discourses include, but not limited to, security discourse as previously discussed, family discourse, and dichotomy discourse (Them and Us). 77.6% of the participants of this survey chose “more appropriate for my family” as a motivational factor. This shows that most of the participants believe that non-AI tourism is not appropriate for them and their families. Security discourse is expressed in participant’s articulation of fear. 42.9% of the participants of the survey could agree with “no fear of strange cultures” as a motivational factor for AI packages. This implies that non-AI tourism contains fear of strange cultures. Again, it is the cultural discourse and fear for the unknown that controls the participants in choosing AI packages. When factoring in the findings from security discourse, where 70.8% chose “reliable transport” and 64.3% chose “feeling safe at the destination” as motivation for using AI, it presents a dichotomy. The destinations country is not safe, has reliable transport, or their food is unlike to be of quality – these are motivational factors for using AI and all are both safety and cultural issues which present a dichotomy. Their cultural/destination is no good, it´s not appropriate for us (or my family). This discourse shows the non-discursive practices of the motivations behind the participant's’ choice of AI package. It shows again the inadequacy of the participants’ cultural capital. It seems that they use their

cultural capital to judge and evaluate other’s cultural capital and structural capacity – a dichotomy between what they might be used to and what they might be expecting in the visiting country. All together it could be understood as a habitus, that fear for anything new and impact of that in form of any kind of change.

Economical discourse:

All-inclusive tourism as a social practice also involves an economical discursive practice, which traces can reveal itself in the way participants articulating this discourse. 80.8% of the tourists’ articulate the ”receiving high value for money” as a motivational factor when using AI-packages. Receiving more value for money indicates that tourists act on the basis of a social practice rooted in a saving discourse. Furthermore, 74% of participants articulated that they are receiving more services for less money, which again is an expression of a saving discourse. Likewise, 73.9% articulated that AI is a way to “preventing running over budget” at the destination, which is an expression of a precautionary discourse. All together we can notice a desire for saving money and a precautional social practice as an important economical discursive practice behind the participant's motivation. The economical discourse shows the participants consciousness about the importance of a social practice that could be named as roles for spending money. On the other hand, it is an expression of the participant's awareness about the role of the economic capital in both private matters and society in general. Economic capital is a strong form of capital in our society and it is a very important capital due to the construction of the social capital. It gives access to and make the basis for expanding social relations – the social network.

Summary:

The aim of the above discourse analysis was to get a deeper understanding of tourists behavior and their travel decision. The finding shows that tourists motivation for using an all inclusive package is a complex issue. Tourists motivation as a social practice is rooted in many discourses: time, security, culture, and economic discourse. The

analysis shows that time management constitutes an advantage for tourists, both before and during their holidays. The traveler´s use of or choice of AI should also be understood as a recognition of the travel agencies positions as having a dominating position in the field of travel. On the other hand, it is an indication of traveler´s limited cultural capital concerning the knowledge about travel, which means that AI constitutes a good traveling social practice for traveler´s. Therefore, they do not need to think about all of these details relating to travel. Experts with an extended cultural capital do care of their travel by managing time for them both before and during their stay in the visiting country. Furthermore, the agency's action on the travel field by providing AI package gives a feeling of security to travelers and a guarantee for keeping their habitus intact – nothing is going to change – you can feel at home even if you are visiting a foreign cultural environment. It can especially be suited for elderly people, which constitute a larger number of the travelers. The analysis also shows the travelers desire for saving money and a precautional social practice as an important economical discursive practice behind the participants motivation. The economic discourse can be understood in different ways. First, it can be related to the traveler's economical awareness – saving money as a social economic practice. But it also can be related to the travelers economic capital. Most of the travelers using all inclusive, are generally from a low income class, which can indicate that all inclusive package creates a suitable possibility for the low-income class to increase their cultural and social capitals, which in general can be understood as an increasing in their symbolic capital in those fields which they interact with.

Chapter IV - Conclusion

The aim of this project is to establish a more in-depth understanding of the concept of all-inclusive tourism from a socio-economical perspective with a special focus on the all-inclusive tourism on the Greek socio-economic development. We have a hypothesis, that all-inclusive tourism has a negative effect on the local economy, for instance, increasing the unemployment rate and socio-economical problems. On the other hand,

we wanted to make sense of the discourses that might be behind the traveler's motivation for using all inclusive packages. Motivation is considered as the starting point for understanding tourist behavior and travel decision-making. Our examination of this project's research question revealed some interesting points, which we sum up in the following: There is no doubt that Greece has been facing a big economic crisis in the last several years. Despite this crisis, tourists are showing an interest in visiting Greece. But our investigation shows an interesting dichotomy between two growing variables: more tourists are arriving in Greece, but the country makes less money on the tourists coming to Greece- in other words, a dichotomy between the increasing number of tourists, and the decrease in the income generated from tourism. What is more important is that the unemployment rate has drastically risen from around 8% in 2007 to 27% in 2013. With an increasing amount of tourists, the amount of people occupied in the workforce should also increase. But our analysis shows the exact opposite. Fewer Greeks are working in the tourist industry and related business even though more tourists are visiting Greece. The question is: where are these workers coming from? Who owns these hotels? Of course, we can not put a definite answer to these questions, but these are some important questions concerning this dichotomy. In the last decades, the All-inclusive package has been growing and may constitute a big part of the tourist industry. All inclusive means that tourist purchases a complete trip with a travel agent who arranges transport, housing, and meals. But the question that remains is: who uses all inclusive packages and what could be the motivation for using this kind of tourism? By conducting a discourse analysis in combination with Bourdieu´s theory of social practice we discover a set of complex and complicated reasons behind traveler's motivation for using all-inclusive tourism. Our findings show that there are several discursive practices that constitute the hidden relationship behind tourists’ motivation for using all inclusive package: Time discourse, Security discourse, Cultural discourse, and Economical discourse. An All inclusive package helps tourists with saving time, which means that time management becomes

a social practice that creates time possibilities for tourists both before traveling and during their visit. It makes a space for creating new or to expand their social capital. The analysis also shows a tourist group that possesses little cultural capital; they have a fear of the unknown or have some imagination of the standard of the transport structure and meal culture in the visiting countries. This fear is related to their habitus and a fear of changing the environment. Most of the people using all inclusive packages are elderly people and families with children. Economic discourse constitutes also a significant reason behind the traveler's motivation. Most of the people using all inclusive have a low economic capital, which means that saving money and a precautious economic behavior becomes an expression for good social practice for these groups. The all-inclusive tourism seems to be a suitable concept for them: everything is prepared for them, and they don’t need to spend any cash in the destination country. Therefore, we conclude that all inclusive package tourism may have a significant negative impact on the visiting countries socioeconomic development. The concept does not contribute sufficiently to the visiting countries economic growth. We also conclude that all inclusive package nevertheless contributes to an increase of the travelers symbolic capital.

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