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FAMILY BUSINESS the Family Business in Tourism and Hospitality Color profile: Disabled Composite 150 lpi at 45 degrees The Family Business in Tourism and Hospitality A4751 - Getz - Voucher Proofs #VP10 #D.prn 1 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:22 PM Color profile: Disabled Composite 150 lpi at 45 degrees A4751 - Getz - Voucher Proofs #VP10 #D.prn 2 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:22 PM Color profile: Disabled Composite 150 lpi at 45 degrees The Family Business in Tourism and Hospitality Donald Getz, Jack Carlsen and Alison Morrison CABI Publishing A4751 - Getz - Voucher Proofs #VP10 #D.prn 3 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:22 PM Color profile: Disabled Composite 150 lpi at 45 degrees CABI Publishing is a division of CAB International CABI Publishing CABI Publishing CAB International 875 Massachusetts Avenue Wallingford 7th Floor Oxfordshire OX10 8DE Cambridge, MA 02139 UK USA Tel: +44 (0)1491 832111 Tel: +1 617 395 4056 Fax: +44 (0)1491 833508 Fax: +1 617 354 6875 E-mail: [email protected] E-mail: [email protected] Web site: www.cabi-publishing.org ©D. Getz et al. 2004. All rights reserved. No part of this publication may be reproduced in any form or by any means, electronically, mechanically, by photocopying, recording or otherwise, without the prior permission of the copyright owners. A catalogue record for this book is available from the British Library, London, UK. Library of Congress Cataloging-in-Publication Data Getz, Donald, 1949- The family business in tourism and hospitality / Donald Getz, Jack Carlsen, Alison Morrison. p. cm. Includes bibliographical references and index. ISBN 0-85199-808-9 (alk. paper) 1. Tourism. 2. Hospitality industry. 3. Family-owned business enterprises. I. Carlsen, Jack. II. Morrison, Alison. III. Title. G155.A1G439 2003 910′.68--dc22 2003018338 ISBN 0 85199 808 9 Typeset by AMA DataSet, UK. Printed and bound in the UK by Cromwell Press, Trowbridge. A4751 - Getz - Voucher Proofs #VP10 #D.prn 4 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:22 PM Color profile: Disabled Composite 150 lpi at 45 degrees Contents About the Authors ix How to Use the Book xi Preface xiii Acknowledgements xvii 1 Introduction 1 Why Study Family Businesses? 1 Scope and Significance of Family Business 1 What is ‘Family Business’? 4 A Life Cycle Model for the Family Business 5 A Framework for Understanding Family Business in Tourism and Hospitality 9 Chapter Summary 18 References 18 2 Entrepreneurship and Family Business 21 Introduction 21 Entrepreneurial Process 21 Industry Specific Modifiers 29 Organizational Modifiers 32 Entrepreneurial Socio-economic Outcomes 35 Chapter Summary 35 References 38 3 Starting the Family Business 41 Introduction 41 Motivations and Goals 42 Research Evidence from the Tourism and Hospitality Industry 42 Antecedents: Where do Family Business Owners Come From? 58 Business Planning for New Family Businesses 60 Ownership, Organization and Governance 62 Chapter Summary 64 References 65 v A4751 - Getz - Voucher Proofs #VP10 #D.prn 5 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:22 PM Color profile: Disabled Composite 150 lpi at 45 degrees vi Contents 4 Sustaining and Developing the Family Business 67 Introduction 67 Failure and Success 67 Growing the Family Business 70 Preconditions and Barriers to Growth 72 Strategic Planning 74 Strategic Options 77 Strategic Marketing and Family Branding 81 The Seasonality Challenge and Strategic Responses in Bornholm 85 Chapter Summary 90 References 91 5 Balancing Family and Business through the Life Cycle 95 Introduction 95 Generic Challenges and Issues 95 Gender Challenges and Issues 101 Research Evidence from Western Australia 103 Involving the Next Generation and Succession 104 Barriers to Inheritance 105 Research Findings from Australia, Canada and Denmark 107 Planning for Involvement and Succession 111 Chapter Summary 113 References 114 6 Farm-based Family Businesses 117 Introduction 117 Case 6.1 Alborak Stables 117 Case 6.2 Taunton Farm Holiday Park 120 Case 6.3 Ol’ MacDonald’s 123 Chapter Summary 125 7 Family-owned and -operated Small Hotels 127 Introduction 127 Case 7.1 Gunnar and Maude Bergstedt, Åre, Sweden 127 Case 7.2 Cricklewood Hotel 129 Case 7.3 Millestgården 130 Chapter Summary 132 8 Family-owned Nature-based Resorts 133 Introduction 133 Case 8.1 Crystal Creek Rainforest Retreat (CCRR) 133 Case 8.2 O’Reilly’s Rainforest Guesthouse 135 Case 8.3 River Valley Ventures, New Zealand 139 Chapter Summary 143 References 144 9 Family-owned and -operated Tour Companies 145 Introduction 145 Case 9.1 Wild Over Walpole (WOW) 145 Case 9.2 Minnewanka Tours 148 Case 9.3 Åreguiderna 151 Chapter Summary 152 A4751 - Getz - Voucher Proofs #VP10 #D.prn 6 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:22 PM Color profile: Disabled Composite 150 lpi at 45 degrees Contents vii 10 Family-owned Tourist Attractions and Wineries 153 Introduction 153 Case 10.1 Pelham Family Estate Winery 153 Case 10.2 Rivendell Gardens 155 Case 10.3 Billabong Sanctuary 157 Chapter Summary 160 Reference 160 11 Cross-case Analysis 161 Introduction 161 Family Issues 162 Business Issues 164 Ownership Issues 168 Chapter Summary 171 References 171 12 Implications for Family Businesses and Tourism Destinations 173 Introduction 173 Practical Implications for the Family Business in Tourism and Hospitality 173 Balancing Family and Business through the Life Cycle 180 Implications for Tourism and Destination Management 182 Chapter Summary 184 References 184 13 Implications for Research and Theory 185 Introduction 185 Developing a Research Agenda 185 Theory-building 189 Chapter Summary 195 References 195 Bibliography 197 Index 209 A4751 - Getz - Voucher Proofs #VP10 #D.prn 7 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:23 PM Color profile: Disabled Composite 150 lpi at 45 degrees A4751 - Getz - Voucher Proofs #VP10 #D.prn 8 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:23 PM Color profile: Disabled Composite 150 lpi at 45 degrees About the Authors Donald Getz Donald Getz is a Professor of tourism and hospitality management in the Haskayne School of Business, University of Calgary, Canada. His research interest in family business began with doctoral research in the Highlands of Scotland, as many of the tourism and hospitality businesses studied were operated by individuals and families. He has conducted specific family-business research in Canada, Denmark, Sweden, New Zealand and Australia, involving a number of individual and institutional collaborators. This work has been financially supported in part by the Family Business Research Endowment at the University of Calgary. Professor Getz also does a considerable amount of research and publishes in the area of event management and event tourism, and is the author of the book Event Management and Event Tourism (Cognizant, 1997). He has also authored books entitled Explore Wine Tourism (Cognizant, 2000), The Business of Rural Tourism (with Stephen Page: Thompson International Business Press, 1997) and Festival Management and Event Tourism (Van Nostrand Reinhold, 1991). Jack Carlsen Dr Carlsen is the Malayan United Industries (MUI) Chair in Tourism and Hospitality Studies within the Curtin Business School, Curtin University of Technology, Western Australia. He received his first grant for Family Business Research in 1998 and has since published papers in the Journal of Sustainable Tourism, Tourism Management, and Family Business Review and presented papers at the International Congress of Small Business, Asia Pacific Tourism Association and the Council of Australian University Tourism and Hospitality Education conferences. Jack has a Bachelor of Economics and a Doctor of Philosophy from the University of Western Australia. His other research interests include tourism economics, tourism management and sustainable tourism. Jack is Founder and Co-Director of the Curtin Sustainable Tourism Centre at Curtin University of Technology. Alison Morrison Dr Alison Morrison is Reader in Hospitality Management and Director of Research within Strathclyde Business School, University of Strathclyde. She has attained a BA Hotel and Catering ix A4751 - Getz - Voucher Proofs #VP10 #D.prn 9 Z:\Customer\CABI\A4708 - Getz\A4751 - Getz - Voucher Proofs #VP10 #D.vp Wednesday, March 10, 2004 2:27:23 PM Color profile: Disabled Composite 150 lpi at 45 degrees x About the Authors Management from the University of Strathclyde, an MSc in Entrepreneurship from Stirling University and a PhD from the University of Strathclyde with the thesis titled Small Firm Strategic Alliances: the UK Hotel Industry. Alison has edited and authored five text books in the areas of marketing, hospitality, entrepreneurship and franchising and has published widely in generic business and specialist hospitality and tourism academic journals. She regularly undertakes international assignments teaching and consulting on entrepreneurship within the hospitality and tourism sectors. Contributors A number of researchers have contributed cases or research material to this book, and the authors are very grateful for their valuable efforts. • Chris Ryan, Professor, University of Waikato, New Zealand: author of the case study ‘River Valley Ventures’. • Tage Petersen, Tourism and Regional Research Centre, Bornholm, Denmark: co-researcher with Donald Getz of the family business survey in Bornholm and co-author of a paper on growth-oriented entrepreneurship. • Per Ake Nilsson, Tourism and Regional Research Centre, Bornholm, Denmark: co-author with Donald Getz of a paper on seasonality, based on the Bornholm data. • Tommy Andersson, Professor, University of Gothenburg, Sweden: author of the three case studies from Sweden. • Lynn Batchelor, Griffith University, Australia: co-author of the case study, ‘O’Reilly’s Rainforest Guesthouse’.
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