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University of Huddersfield Repository Hbiesh, Nagma An Investigation of the Dynamic Relationship between Tourism Expenditure and Non-Oil Growth with the Planning of a Blue Ocean Strategy: The Case of Libya Original Citation Hbiesh, Nagma (2017) An Investigation of the Dynamic Relationship between Tourism Expenditure and Non-Oil Growth with the Planning of a Blue Ocean Strategy: The Case of Libya. Doctoral thesis, University of Huddersfield. This version is available at http://eprints.hud.ac.uk/id/eprint/34588/ The University Repository is a digital collection of the research output of the University, available on Open Access. Copyright and Moral Rights for the items on this site are retained by the individual author and/or other copyright owners. Users may access full items free of charge; copies of full text items generally can be reproduced, displayed or performed and given to third parties in any format or medium for personal research or study, educational or not-for-profit purposes without prior permission or charge, provided: • The authors, title and full bibliographic details is credited in any copy; • A hyperlink and/or URL is included for the original metadata page; and • The content is not changed in any way. For more information, including our policy and submission procedure, please contact the Repository Team at: [email protected]. http://eprints.hud.ac.uk/ An Investigation of the Dynamic Relationship between Tourism Expenditure and Non-Oil Growth with the Planning of a Blue Ocean Strategy: The Case of Libya NAGMA AHMAD R. HBEISH A thesis submitted to the University of Huddersfield in partial fulfilment of the requirement for the degree of Doctor of Philosophy. The University of Huddersfield January 2018 2 Abstract The aims of the thesis are to investigate tourism led non-oil growth (TLNOG), for Libya, and to identify the factors that will help to increase this growth through creating and implementing a Blue Ocean Strategy (BOS). These are three research questions: (1) Is there any relationship between tourism expenditure and non-oil GDP in Libya? (2) Is there any causality between these two variables? (3) How to resolve and recover the particular case of Libyan tourism growth through the BOS? Firstly, the research estimated the potential of tourism by using the Auto Regressive Distributed Lag (ARDL) co- integration model proposed by Turner (2006) to ascertain the long-run relationship between tourism expenditure and non-oil growth. Then, semi- structures interview questions based on the Eliminate-Reduce-Raise-Creative grid (ERRC) (Kim & Mauborgne, 2005b) were dismissed to five kinds of stakeholders (consultants, public promoters, hoteliers, tour operators and tour guides). This study indicates that the long-run relationship is verified between the variables and there is one long run causality. The findings show the BOS through: (a) value innovation by offering special services and packages in hotels (e.g. planning healthy food for special events); (b) technology innovation linked to museums considering people with special needs; (c) cost- off by reducing the prices of the tourist restaurant and internal flights; (d) new segment market by creating the North and South Mediterranean tourism. Finally, the BOS as a recovery strategy by adopting tourism culture and choosing the desert as the main theme for Libyan tourism. The study concludes that TLNOG is not verified, and the growth in the Libyan tourism market could be achieved through the application of thoughtful and appropriate Blue Ocean Strategy. 3 Dedication To my Dad, Mum, Brother’s Souls, My Husband and my little Kids Aslm and Raghed 4 5 Acknowledgements Firstly, I would like to thank Almighty ALLAH for giving me strength and the ability to overcome all the obstacles throughout my study and my life. I am deeply grateful to my Supervisor; Julia Meaton, and my family for their support; I owe a deep gratitude to my husband and my kids for giving their moral support and allocated time to complete my study. Finally, I would like to thank my close friends for their engorgement, and extending my appreciation to everyone who has given a support to me. 6 Table of Contents : Introduction ............................................................................................ 19 The Aim and Objectives ................................................................................. 21 1.1.1 Objectives ................................................................................................ 21 The Contribution of the Thesis ....................................................................... 22 1.2.1 Contribution to the TLGH: ...................................................................... 22 1.2.2 Contribution to the BOS .......................................................................... 22 1.2.3 Contribution through TLGH & BOS ....................................................... 22 1.2.4 Contribution to Libya ............................................................................... 23 The Organisation of the Thesis ....................................................................... 24 : Tourism Trend Background and its Impact and Policy .......................... 26 Introduction ..................................................................................................... 26 Definition of Tourism ..................................................................................... 27 2.2.1 Main Tourism Difference......................................................................... 29 2.2.2 Tourism Expenditure Concept ................................................................. 29 Tourism Demand ............................................................................................ 30 Tourism supply ............................................................................................... 32 Global Tourism Trend ..................................................................................... 34 2.5.1 Tourism Contribution to the GDP ............................................................ 35 2.5.2 Tourism Contribution to the Employment ............................................... 36 2.5.3 Tourism Contribution to the Exports ....................................................... 37 2.5.4 Global International Tourism Arrivals and Receipts ............................... 37 2.5.5 Global Tourism Arrivals by the Geographical Regions (1995-2014) ...... 39 International Tourism Trends in the South Mediterranean Countries............. 41 2.6.1 Tourist Growth in the South Mediterranean (1990-2012) ....................... 41 2.6.2 International Tourist Receipts .................................................................. 44 Why Tourism is Favored for Development Strategy? .................................... 45 2.7.1 The Economic Impact .............................................................................. 47 2.7.2 Social impact ............................................................................................ 64 How to Build Business Opportunity? ............................................................. 65 7 2.8.1 Enhancing consumer satisfaction ............................................................. 65 2.8.2 Building Brand, and improving the capacity of the markets ................... 66 2.8.3 Increasing Accessing to Financing .......................................................... 66 2.8.4 Decreasing Operating Costs ..................................................................... 66 2.8.5 Collaborating effectively with Government............................................. 67 Stakeholders Policy for Developing Tourism Growth .................................... 67 2.9.1 Tourism Policy ......................................................................................... 67 2.9.2 What the type of the tourism product that should be supplied? ............... 68 2.9.3 Evaluating the Tourism Policy ................................................................. 69 2.9.4 Tourism Policy and sustainable Development ......................................... 70 2.9.5 The Role of Government Policy .............................................................. 71 2.9.6 Role of the Tourism Industry Policy ........................................................ 77 2.9.7 Efforts by tour operators to promote community development ............... 77 2.9.8 Partnerships between industry players and local communities ................ 78 2.9.9 Non-government Policy Role................................................................... 79 2.9.10 Networking ............................................................................................ 81 Summary ....................................................................................................... 83 : Background of Tourism in Libya ........................................................... 86 Introduction ..................................................................................................... 86 Libyan Economy Background ........................................................................ 86 3.2.1 Economic Growth .................................................................................... 90 3.2.2 Energy Sector ........................................................................................... 93 3.2.3 Non-oil Sector .......................................................................................... 95 Libyan Tourism Industry ...............................................................................