2nd International Conference on Management, Economics and Social Sciences (ICMESS'2012) June 30-July 1, 2012 Bali

The Market Positioning of Tourism Industry in -An Application of Resourced-Based Theory

Chia-Ju Lee, Yueh-Hsiu Lin

in 2009 that Taiwan ranks No.6 at total travel times as the Abstract—According to the data of Taiwan Tourism Bureau, outbound travel area for Chinese tourists, increasing 253.4% since the opening of Chinese tourists to Taiwan from the 18th of July, relative to 2008. However, in the report of the same kind of 2008, the number of Chinese tourists has increased dramatically from statistics in 2010 [3], the growth rate decreases 68.6%, despite 0.329 million in 2008 to 1.63 million in 2010. For the first time in the of the rank of total travel times rising to No.5. From another record of Taiwan inbound visitor, the number of visitors from exceeds those from Japan and becomes the largest perspectives, according to the data of Tourism Bureau, Rep. of visitors to Taiwan. China [4] in recent ten years, the tourist coming to Taiwan has At present, most tourists from Mainland China visit Taiwan with increased from 2.831 million times in 2001 to 6.083 million travel groups, the tour package planned and promoted either by times in 2011. Since the restriction forbidding Chinese tourists Chinese or Taiwanese travel agencies will have significant impact on has been loosen on July, 18th, 2008, the number of Chinese the satisfaction of Mainland Chinese visitor and their image on travel tourists has increased fast from 329 thousand in 2008 to 1.78 in Taiwan. Previous research on the image of Taiwan was entirely million in 2011, exceeding Japanese tourists, becoming the conducted before 18th of July, 2008. The images of a tourist about a destination were influenced by factors such as time of travel, physical biggest source of tourists in Taiwan. According to above data, environment, and distance of travel, and images about a certain Taiwan is still attractive to Chinese tourists, who are still the destination might change after the actual visit of that destination. One most important source of income for tourism industry in of the purposes of the current research is to investigate the similarities Taiwan. For the strategy of the development of tourism in and differences of their image changes before and after the Mainland Taiwan, the most important mission is how to stabilize the Chinese tourists can travel to Taiwan without restriction. amount of Chinese tourists. Up until August, 2011, the number of countries where Mainland Chinese is free to visit has reached 111. Among these destinations, Until February, 2012, destinations of outbound travel what unique tourist resources in Taiwan could continuously attract countries (areas) permitted by Chinese government have Chinese tourists has become one of key issues that need to be reached 113 countries (areas) [5]. Pike [6] proposes that the addressed. Therefore, the current study applies the view point of travel destination image will affect tourists choosing travel resource-based theory, and intends to interview representatives from destinations. When there are multitudes of travel destinations the tourism industry, government, and academic circles to identify the able to be chosen, the travel destination image will become one unique core advantages of Taiwan, the result might help to develop consolidated tourism policy and help shaping the future tourism of the important factors for decision. At present, most tourists marketing strategies. from Mainland China visit Taiwan with travel groups. No matter the package of the whole travel, the delivery of travel Keywords—Destination Image, Mainland Tourists, Outbound destination image, or the provision of the requirement of Travel, Resource-Based Theory. tourists to the receiver of travel destination, the viewpoint from the travel agency is important and valuable. I. INTRODUCTION Nevertheless, image will be affected by the factors of time, CCORDING to the relevant data, the number of Chinese environment, and distance [7]. After the secret veil of Taiwan Atourists has increased, ranking the No.1 for the source of has been revealed, do Chinese tourists change the image of the outbound tourists in Asia, and still increasing toward the target tourist destination in Taiwan? Do travel agencies adjust the of 83.75 millions times [1]. execution of marketing at the product package and image National Tourism Administration of the People’s Republic promotion? Among these competitors, which existing core of China [2] points out in the China Tourism Statistics Bulletin resource of Taiwan can become attractive to Chinese tourists? Above all are the questions this research trying to investigate. Chia-Ju Lee is the Doctoral student of Department of Business Accordingly, the purposes of this research are as followings: Administration, National Dong Hwa University, Hualien, Taiwan, R. O. C. 1) From the perspectives of travel agencies in China and (corresponding author to provide phone: 886-3-8633017 ; fax: 886-3-8633010 ; Taiwan, we try to understand the cognition of Chinese e-mail: [email protected]). Yueh-Hsiu Lin is the Professor of Graduate Institute of Hospitality tourists about the destinations images toward Taiwan, and Education, National University of Hospitality and Tourism, compare the difference of these images between before Kaohsiung, Taiwan, R.O.C. (e-mail: [email protected]).

105 2nd International Conference on Management, Economics and Social Sciences (ICMESS'2012) June 30-July 1, 2012 Bali

and after the restriction forbidding Chinese tourists has attribute-holistic, functional-psychological, and been loosen. common-unique to construct destination image. Law and 2) From the perspectives of industry, government, and Cheung [22] and Leung, Law and Lee [23] adopt the academia, we try to confirm the unique core advantage of dimensions of shopping, accommodation, meals outside hotels, tourism industry and find out the niche for future travel transportation, and attractions. Alvarez and Campo [24] discuss package and tourism policies, in order to benefit the destination images through seven dimensions, i.e., notoriety development of our tourism industry. and reputation, security, level of development, respect for liberties, cultural attraction, tourism services, entertainment II. LITERATURE REVIEWS and leisure, whereas Jeong, Holland, Jun and Gibson [25] elicit seven factors, i.e., local attractions, outdoor and cultural A. Destination Travel Image attractions, local quality of life, nightlife, comfort and safety, The concept of the image of travel destination is derived price, and similarity in culture, through factor analysis. from the development of attitude theory by Fishbein and Ajzen In the part of affective images, Russel, Ward and Pratt [26] [8]. They argue that the construct of attitude should be set forth two kinds of dimensions, namely, arousing-sleepy and distinguished from the construct of belief, and define the pleasant-unpleasant, which can interact with each other and construct of belief as the convergent of information, held by further categorize another two dimensions, i.e., individuals, about some object, whereas attitude is defined as exciting-gloomy and relaxing-distressing ([9], [10], [15], [19]). the evaluation of individuals about liking or disliking some The main purpose of this research is to discuss the travel object. The ways of evaluation can be divided further into two image of Chinese tourists toward Taiwan. Reviewing from parts, cognitive and perceptive evaluations. Through attitude relevant literatures, most studies uses Chinese tourists as main theory, positive attitude or positive destination image will cause subjects ([11], [27]). As to using tourism practitioners as higher inclination of travelling to that destination. subjects, this kind of research is relative less [28], and the Following researchers apply Fishbein and Ajzen’s [8] period of investigation is before the restriction forbidding contention and constructs to conduct empirical researches Chinese tourists being lifted, not after. Thus, this research ([9]-[11]) and put forth various definitions ([9], [12]-[14]). wants to use tourism practitioners as subjects, and to compare Among them, the most cited definition, proposed by Crompton before and after the restriction forbidding Chinese tourists [12], is that destination image is the summation of belief, being loosen whether the image of Chinese tourists toward thought, and image of individuals or groups toward a Taiwan has changed from the perspectives of Chinese and destination [7]. Taiwanese tourism practitioners. We believe this research can When a tourist decides a travel destination, the destination complement extant literatures. image is an indispensible factor [15]. The importance of the B. Resource-based Theory marketing for tourism products and packages prompts the development of relevant researches about destination image In recent years, the tourism polices of both Chinese and and its formation (e.g., [6]-[15]). Gallarza et al. [7] conclude Taiwanese governments often changes with the different ruler four main characteristics of complexity, diversity, relativity, or ruling party. This situation makes the whole tourism market and dynamics, after they analyze the relevant researches about full of uncertainty and executors of related businesses difficult destination image. to deal with. Besides political factors, both nature disasters (e.g., Gunn [16] points out that image can be categorized into floods, tsunami, earthquakes, storms, etc.) and man-made existing image and induced image. The former, which is hard to calamity (e.g., wars, terror attacks, etc.) will affect tourists’ change, is the information not directly related to the destination, images and choices of travel destination. Under these and the latter is the advertisement for promotion related to the uncontrolled and unexpected factors of surroundings, the destination. Induced image can change the destination image of resource-based theory arises. a tourist through the status of destination in market and certain The philosophical view of resource-base theory is “to reflect way of manipulation. Gartner [17] claims destination image and try to find advantages and chances by oneself”. The comprises cognition, affection, and conation. However, it contention of this theory is that the firm should put more effort needs further clearer definition to confirm whether these three to elevate its own capabilities, deal with outside changes calmly components coexist [18]. The recent researches define that by these excellent capabilities, and wait for the chances [29]. cognition or perception is about the belief in and knowledge of Resource-based view (RBV) mainly derived from the theories the destination, affection is about the individual feeling toward of strategic management [30]. Relevant development can be travel destination, and conation is the tendency of behavior tracked back to “unique competence” ([31]-[33]), which caused by aforementioned two components ([19]-[20]). includes the unique capabilities, owned by a enterprise, of As to the measurement of travel destination, except conation technology, management, design, marketing, and coordination and whole image can be measured by semantic differential of each resource and knowledge [29], using “the view of scale directly, the measurement of cognitive and affective resource” instead of “the view of product) to make analyses images will vary with different subjects. With regard to [34]. In 1991, Grant [30] replaced the phrase of cognitive image, Echtner and Ritchie [21] use three continuums: “resource-based view (RBV)” with “resource-based theory

106 2nd International Conference on Management, Economics and Social Sciences (ICMESS'2012) June 30-July 1, 2012 Bali

(RBT)” and reach consensus about this theory in academics. Its can not fully describe the completeness, uniqueness, and two basics assumptions are as followings [35]: atmosphere of the topic. When a study is to discuss the distinct 1) In the same industry or strategic group, the strategic and whole image of travel destination, it is better to adopt resource each firm can command is dissimilar, that makes quantitative methods [44]. difference among these firms. The purpose of this study is to apply RBV to investigate the 2) These distinctions among these firms are not easy to be position of the whole travel market in Taiwan, and this issue is imitated. within the range of the uniqueness of the whole tourism in As to relevant definitions, many scholars ([30], [34]-[37]) Taiwan and the whole travel images, to understand the changes deem that RBV emphasizes the unique resource and between before and after the restriction forbidding Chinese competence inside an enterprise, which is the basic source of tourists is lifted and find out the unique inner core advantage of profit, and can be accumulated and cultivated to form a kind of tourism industry in Taiwan at the same time. For reaching this long-term and lasting competitive advantage. Porter [38] purpose, the purposive sampling will be conducted, combined depicts RBT as the unique competitiveness within the firm. Wu with snowball sampling and semi-structured interview to [39] contends that RBT is the way of consideration based on the collect relevant data. The subjects and outlines of interview in resource connected with corporate competitive advantages and this study can be divided into two parts as followings. the decision of growth, and cares about distinguishing, A. Related Tourism Practitioners in China and Taiwan clarifying, cultivating, developing, and maintaining corporate core or critical resources. At beginning, the related tourism practitioners in China and Barney [35] further points out that if a firm wants to have Taiwan will be investigated. According to the latest statistics lasting competitive advantages, these core resources must be data from National Tourism Administration of the People’s with features of value, rareness, imperfect imitability, and Republic of China [45], there are 164 Chinese travel agencies insubstitutability. Grant [30] believes that the corporate handle the business about travelling in Taiwan. Among them, competitive advantage depends on resources with there are 75 permitted travel agencies, 45.7% of total travel characteristics of durability, transparency, transferability, and agencies, located in seven areas, i.e., Beijing, Guangdong, replicability. Hill and Jones [40] describe the resources, which Fujian, Shanghai, Zhejiang, Jiangsu and Shandong. In addition, then can become the unique corporate competitive advantage of the latest statistics data from Tourism Bureau, Rep. of China a firm, with independent and valuable features. Wu [39] then show that there are 2,341 travel agencies in Taiwan [46]. depict the key successful factor of core resources should have Among them, 385 travel agencies have experience in handling the features of uniqueness, specificity, complexity, ambiguity, the business for Chinese tourists travelling in Taiwan [47]. and tacitness. There are various categorizations of RVT, Hence, this research will collect data from aforementioned depending on the research direction of each scholar. travel agencies, which really involve the practice for Chinese After reviewing relevant researches about tourism industry tourists travelling in Taiwan, and try to understand the in Taiwan applied RBT ([41]-[43]), it can be concluded that the cognition of Chinese tourists about travel destination images, most popular topics are about bed and breakfast (B&B) and from perspectives of these travel agencies. international hotel, covering only the field of local resources, Furthermore, part of this research is to compare the changes not discussing the whole tourism resources in Taiwan. about travel destination images of Chinese tourists toward Therefore, this research will discuss the unique inner core Taiwan between before and after the ban forbidding them is competitiveness of the whole tourism industry in Taiwan from opened, so the result of previous research “positioning analysis perspectives of industry, government and academics. The of Taiwan travel market- perspectives of travel related results will be compared with the travel destination images in practitioners from China and Taiwan” [28] will become the Taiwan derived from Chinese tourists observed by Chinese and representation of their travel destination images toward Taiwan Taiwanese tourism practitioners. The purpose is to understand before the ban forbidding them is opened, and compared with which travel destination images belong to the existing inner the result from this research. In order to make the specification core competitive advantages, that can be maintained and of comparison the same, this research will utilize relevant developed, of the whole tourism industry in Taiwan, and also questions from previous research “positioning analysis of understand which travel destination images we neglect for a Taiwan travel market- perspectives of travel related long term but has potential to become the element of core practitioners from China and Taiwan” [28], and modify these advantage for forming travel image. The element we neglect questions to match current situation of travel market to become can be improved, and further benefits the direction of the the interview outlines in this phase of study. The outlines of development of future travel policies in Taiwan and the interview can distinguish into travel practitioners in China and portfolio of travel product package. Taiwan, as listed in Table 1 and Table 2. B. The Tourism-related Industries, Government, and III. METHODOLOGY Academics in Taiwan Most Researches about travel destination images are For reaching the purpose of confirming the unique inner core qualitative researches [6]. However, the qualitative research advantage of tourism industry in Taiwan, interviewees will

107 2nd International Conference on Management, Economics and Social Sciences (ICMESS'2012) June 30-July 1, 2012 Bali

include people from tourism-related industries, government, April 5, 2012, from and academics. The qualifications of interviewees must meet http://www.cnta.gov.cn/html/2011-1/2011-1-21-8-58-11493_1_2.html. [2] National Tourism Administration of the People’s Republic of China, 2010, one of following conditions: China Tourism Statistics Bulletin 2009. Retrieved April 5, 2012, from 1) The travel-related Industries should locate in , http://www.cnta.gov.cn/html/2010-10/2010-10-20-10-43-69972.html. Kaohsiung, , and Hualien, where are the main [3] National Tourism Administration of the People’s Republic of China, 2011, China Tourism Statistics Bulletin 2010. 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Pike, “Destination image analysis-a review of 142 papers from (public sector). 1973-2000,” Tourism Management, vol. 23, no. 5, pp. 541-549, October Lin [48] suggests that in order to provide tourists better 2002. services and benefit long-term development, the tour in China [7] M. G. Gallarza, I. G. Saura, and H. C. Garcia, “Destination image: towards a conceptual framework,” Annals of Tourism Research, vol. 29, should elevate from six elements, namely, “eating, living, no. 1, pp. 56-78, January 2002. transportation, sightseeing, shopping, and entertaining”. This [8] M. Fishbein and I. Ajzen, Belief, attitude, intention, and behavior: an study will apply these six elements as the foundation to introduction to theory and research. Addison-Wesley: Boston, 1975. [9] S. Baloglu and K. W. McCleary, “A model of destination image investigate the unique inner core advantage of tourism industry formation,” Annals of Tourism Research, vol. 26, no. 4, pp. 868-897, in Taiwan. 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TABLE I

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