European Journal of Scientific Research ISSN 1450-216X / 1450-202X Vol.117 No.3 January, 2014, pp. 359-368 http://www.europeanjournalofscientificresearch.com

Analysis of Preoccupation Structure of Restaurant and Hotel Management in Province

Athar Noormohammadi The Graduated Student in M.A in Geography and Tourism Planning in Islamic Azad University Branch Department of Humananities Sciences, Isfahan, E-mail: [email protected]

Mehri Azani Amember of Faculty in Islamic Azad University, NajafAbad Branch Department of Humananities Sciences, Isfahan, Iran

Hajar Norouzi The Student in M.A in Geography and Tourism Planning in Islamic Azad University NajafAbad Branch, Department of Humananities Sciences, Isfahan, Iran

Abstract

The economic benefitsof tourism industry affect on employment and increasing national and regional revenue. It can be also a way for other industrial sectors, growth.One of the important sectors in tourism industry is restaurant and hotel management that can be accounted as a substructure for developing othersectors of this industry. One of the adequate regions for developing tourism industry in Iran is .Isfahan has numerous natural-historical and cultural attraction. So, this province is consideredas one of the tourism centersin country. The aim of this study is to analyze the structure of preoccupation in restaurant and hotel management and its role in developing tourism at Isfahan province in 1375-1390. The purpose of this study is based on useful aims and integration method and nature. The resultsof this study show the relative advantage of the cities of this province in regard to reference economy (the whole country) that have numerous capabilities in making substructure and capitalization at this sector.

Keywords: Tourism-Resturant and Hotel Management-Preoccupation-Development.

1. Introduction Tourism is one of the most developed industries in the second half of the twentieth century. It was often used as thekey orpassword for economic growthindeveloped and developing countries. (Font and Ahjem, 1999:63) Tourism has been considered asan efficientcatalystforregeneration andeconomic and social developmentin variousareas, So thatin recent yearsto meet the economic and socialchallengesof different areas acrossEurope where they encountered the reduction of traditional activities,tourism has been in the spotlight (sharply, 2002: 233).

Analysis of Preoccupation Structure of Restaurant and Hotel Management in Isfahan Province 360

Tourism industry can have a significant effect on increasing preoccupation, incomes related to residential places, and national revenue of countries. So, Tourism affects on economic growth directly and indirectly (Oh,2005:26). Other results of developing tourism include increasing the income of host society, increasing state revenue, increasing investment, redistribution of international wealth, increasing employment, developing cottage industry and local goods, making jobs and income, helping to providing infrastructure services, encouraging other economic sectors development, and making variety in economic activities(Butler et al,1997:28). At the present time, many countries gain their social and economic interests from tourism and they use tourism incomes for developing areas infrastructures (Eecles and casta,1996:44) Tourism industry includes 11 percent of Gross Domestic product (GDP)and supports more than 200 million jobs in the world that contains 8 percent of the whole employment(Rita,2000:434). At the point of view, tourism consideres as the most important industry in world, because of making job and its effect on developmental, economical and social function. This industry will help developing countries to solve problems like unemployment and poverty through motivating the potentials of this country. However, tourism is a clean industry that help to defence nature for future generations (Holjevac,2003:2). In fact, tourism industry contains different activities that is linked like a chain to help tourism. So , tourism includes all of the objects and relationships among tourists, suppliers, and tourism products sellers, states, and host countries to attract and receive tourism(mcintosh,1995:9).

Figure 1: Factors associated with tourism industry

Facilities Health Restaurants ICT and e- Roadways and development development and hotels money transportation development development development

Tourism infrastructures and facilities development

Tourism Growth

Prosper of various economic activities

Visit plans Visit plans Entertainment Accommodatio Food services Crafts plans n services

Source: Oh – 2005

Iranisthe cradleof theoldestcivilizations inthe world, and Apart frommanysourcesrelated totourismandcultural heritage; it has diversenatural resourcesof thedesert regionstothe seashore. In fact, one of thereasons whypeopleindifferent periods are proud of their country is the enjoymentoftheblessingsof nature's four seasons which has given this country a strategic situation on

361 Athar Noormohammadi, Mehri Azani and Hajar Norouzi the Silk Road. Thevast landof Iran has diverseclimatesthat sometimethe temperaturedifferencebetween two points on the vast plateau reaches to 40 degrees Celsius.One of the region in Iran that has potential for developing tourism is Isfahan province. This province, because of having many historical- natural and attraction, is situated at the top of tourism centres in Iran. However, one of the important sectors of tourism industry is restaurant and hotel management.This research analyzis the preoccupation structure of this sector in Isfahan province.

2. Research Background  Toh, et al., 2001 in order to "examine the relationship between the steps of developmentofthe countryandits tourism status," have introduceda new theoretical business idea. The basic premiseofthis theoryisbased onthe balance oftraveling, Less developed countriesgenerally closer to Initial stateor primary levels (net exporter of tourism)anddeveloped countries are closer toend stateorend-stage(net importer oftourism).  Inaddition, Tucson (2002)inits comparative study "prediction of economic impact oftourism“in Turkey, Fiji and America , has mentioned providing employment opportunitiesthroughtourismasone of thepositive effects oftourism.  Kimandcolleagues (2006), test the "The relationship betweentourismdevelopmentand economic growthin Taiwan". Acausaltestforco integrationprocedureis performed todeterminethe directionof causalitybetweeneconomic growthandtourismdevelopment. The resultsshow thatthere is along-termequilibriumrelationshipbetweentourismand economic growthinTaiwan and therelationship between thesetwo variables is a causal reciprocal relationship, In other words, inTaiwan, tourismand economic growthreinforceeach other.  Sung Chon, Kye&Ju Shin, Hyun according to a study in 2007 "Koreas Hotel and Tourism Industry" concluded that one of the Korean statesment has used successful strategies to develop hotels and tourism industry. Some of these strategies include: Hiring local personnel in hotel and restaurant sector and educating personnel for university degrees and using their knowledge and experiences  Miragein 1386(2007) inherstudy"the effects of tourismon thedynamics ofemployment inthe province of Semnan" concluded that this county annually by attracting 53965 tourists, withrevenueof over24/123296 can create job opportunities for almost 948 people which will cover 24/66 percent of the county`s unemployment andif it could beefficientlymanaged, just by attracting 7/2percentoftheprovince'sroundtourism which is 12 million visitors in a year , the problem of unemployment would be solved. In thepresent study we analyzed the structure of employment in restaurant and hotel managements sector in the county of Isfahan.

3. Materials and Methods Share change method, to analyzeand forecasteconomic conditionsand the employment of geographical levels, can be studied lower than region and higher than city. Inthis way,the datacan be -income, production, employment, or Inthismethod, the referencescale would be a city or a county where the studied geographical levels are compared with them.(Ziari, 1378: 123).(2009) Share change model provides a general approachto understanding therelationship betweenindustrial structureand economic growth Andasdataanalysis, Output is used asa toolfor the analysis ofindustrialrelations, different parts ofaregion along with industries and national parts. Thismethodissimpleand requireslimiteddata, so despite all criticisms has founda special place.shift share modelcan be expressedas follows:

Analysis of Preoccupation Structure of Restaurant and Hotel Management in Isfahan Province 362

EtR National share (the changes of employment in resource employment) A  Et1R EEti tR The combinition B  EERt1 i t1 EEttLi i Competitive share C  EEt1Li t1 i Eli: Region Employmentintheindustry orsectori Ei: Nationalemploymentinsectori ER: Nationalemploymentinallsectors t-1: the starting year of the period t : the ending year of the period The overall results of aforementioned formula reflectchangesin employment ineverysectoroftheeconomy. A Employmentgrowthinall sectorsof the national economy B The amount of sector i`s employment growth in the national economy C The rate of sector i`s employment growth in the region (HekmatNiaandMousavi, 1385: 82)(2006) EEt  ABC Li Lit1 Oncethe coefficients A, Band C, has been determined,the following equationcan beusedtopredictemploymentaction: The employment of next period in I sector = base year employment in sector i + base year employment in sector i * (C+B+A) (Ziari, 1378: 192)

4. Analysis A-InthissectionusingShift shareanalysis, the employment growth of restaurant and hotel management sector of Isfahan was analyzed and Compared to theentirecountry duringthe years1375to 1390.

Table 1: Employmentstatus ofthecity ofEsfahanRestaurant and hotel management sector (Reference economy: the whole country)

number city A B C A+B+C 1 - 0.006 0.059 0.859 0.912 2 Isfahan - 0.006 0.059 1.198 1.251 3 Aran and Bidgol - 0.006 0.059 0.999 1.052 4 Barkhar - 0.006 0.059 2.226 2.279 5 Tiran and Karvan - 0.006 0.059 2.259 2.312 6 Chadgan - 0.006 0.059 1.804 1.857 7 Khomeini Shahr - 0.006 0.059 0.816 0.869 8 Khansar - 0.006 0.059 0.370 0.423 9 Dehaghan - 0.006 0.059 0.866 0.919 10 - 0.006 0.059 3.596 3.649 11 - 0.006 0.059 0.698 0.751 12 Fereidan - 0.006 0.059 0.064 0.117 13 FereidunShahr - 0.006 0.059 0.558 0.611 14 - 0.006 0.059 1.686 1.739 15 - 0.006 0.059 1.922 1.975 16 - 0.006 0.059 1.935 1.988 17 Lenjan - 0.006 0.059 1.512 1.565 18 Mobarake - 0.006 0.059 1.922 1.975 19 Naeen - 0.006 0.059 0.559 0.612 20 Najafabad - 0.006 0.059 0.999 1.052 21 - 0.006 0.059 2.018 2.071 Source: researcher's findings

363 Athar Noormohammadi, Mehri Azani and Hajar Norouzi

The Impact of National Growth Shows the Regional Development as Part of the National Growth So national share growth, shows changes made in the employment, while one local industry grows at the same rate of its national level, Since thegrowth ofnationalemploymentis rising, usually national share is positive. But when the global recession happens, or the country is experiencing economic recession, Negativeeffect ofnationalgrowthcan beobservedindifferent regions.negative national share indicates that employment in the reference region has been declining and if the region grows at the same rate of national growth, we expect that due to negative growth in national employment, the employment in the region declines. Ascan be seen, the effect of nationalgrowth is (-0.006).so we can conclude that employment of restaurant and hotel management of the whole country has been declining, and as a result if the cities of Isfahan county grow at the same rate of national growth, we expect that due to negative growth of national employment, the employment in the region decline.

The Impact of National Composition Nationalsharecan be used for detection ofthefastest growingindustriesin theeconomy. This can help regionaldecision-makers to determine the growth of the region`s industries and diagnose the problem that if The present industrialcomposition is beneficial for the region`s economicgrowthor not? The effect of positive national composition means that the industrial composition of the region has gained more shares in the industries which enjoyed higher national growth. It means if we imagine that region`s industries by themselves grow at the same rate of their national growth, the average growthin the regionwill furtherthe growth of thenational average. Because the economies which have gained a higher growth in the reference economy have a bigger share in the national composition of the region and as a result, they increase the average growth of the region. According to thevalue (0.059) fortherestaurants and hotel management sector of the count, we can refer to its positive national composition for each city in the county comparing to the whole country and it is expected that the average growth of the cities be higher than the average growth of the whole country.

The Effect of Competitive Share Competitiveshare increases the effect ofthe competitivepower of the region against the other regions. The competitive share can be used to detect the region`s industries which have the competitive advantages against the reference region. In addition,thissectioncan be usedto identifyindustries thathavemorecompetitiveadvantages, this section can help regionaldecision makersto identifytheindustries thattheyhavean advantage, and are moving toward the region`s economical growth path. Positivecompetitiveshare represents a comparative advantageinaspecificeconomic sector. It means Ifwe assumethateach oftheregionalindustriesalone growths at the same rate of their national growth; as a result the growth of the region would be less than its real growth in the present situation. This shows that the growth of some of the industries has been higher than their national growth, and consequently we can state that the region has had a competitive advantage in these industries. negative competitive share shows that the region`s economy has lost its share in a industrial sector comparing to other regions. According to Table(1), the cities of Ardestan, Isfahan, Aran and Bidgol, Barkhar,Dehaghan,Pirbakran, Tiran and Karvan,Chadgan,Khomeini Shahr, Khansar, Dehaghan, Smirom, Shahreza, Faridan, FereidunShahr, Falavarjan, Kashan, Golpayegan, Mobarake, Naeen, Najaf Abad and Natanz have the competitive shares of 0.859 ،0.816 ،1.804 ،2.259 ،2.226 ،0.999، 1.198 0.866، 3.596، 0.698، 0.64، 0.558، 1.686، 1.922، 0.559، 1.512، 1.922، 0.999، 2.018 و 0.370c1.935، respectively which all of them have the positive competitive share and the comparative advantages of the county`s cities in the restaurant and hotel management sector. According to thefindings

Analysis of Preoccupation Structure of Restaurant and Hotel Management in Isfahan Province 364

Positive competitive share +positive national composition = there is a potential comparative advantage in the region which can have an effective role in the growth of the region`s economy. So it is expected that the restaurant and hotel management sector will have a major and effective role on the economical development of these cities.

Table 2: Predict of employment in hotel and restaurant sector in Isfahan province

country city Number of Number of Number of Number of prediction number city working working working working A+B+C in 1400 population population in population population in 1375 1390 in 1375 in 1390 0.91 1 Ardestan 182323 192000 57 109 198 2 1.25 2 Isfahan 182323 192000 3014 6785 16976 1 1.05 3 Aran and Bidgol 182323 192000 95 117 245 2 2.27 4 Barkhar 182323 192000 218 715 3246 9 2.31 5 Tiran and Karvan 182323 192000 129 331 1522 2 1.85 6 182323 192000 98 159 572 7 0.86 7 Khomeini Shahr 182323 192000 102 180 309 9 0.42 8 Khansar 182323 192000 405 757 635 3 0.91 9 Dehaghan 182323 192000 26 37 68 9 3.64 10 semirom 182323 192000 25 48 345 9 0.75 11 Shahreza 182323 192000 20 93 139 1 0.11 12 Fereidan 182323 192000 211 387 90 7 0.61 13 FereidunShahr 182323 192000 144 161 196 1 1.73 14 Felavarjan 182323 192000 18 29 98 9 1.97 15 Kashan 182323 192000 257 704 281 5 1.98 16 Golpayegan 182323 192000 324 964 3663 8 1.56 17 lenjan 182323 192000 89 266 798 5 1.97 18 182323 192000 82 244 9272 5 0.61 19 Naeen 182323 192000 93 150 180 2 1.05 20 Najafabad 182323 192000 364 747 1568 2 2.07 21 natanz 182323 192000 28 86 466 1 Source: researcher's findings

365 Athar Noormohammadi, Mehri Azani and Hajar Norouzi

B-Inthis sectionto determine the roleoftourism in creating job opportunities in the county, spatialfactormodel (LQ)has been usedfor years1375 and1390.Thismethodis usedto identifythe basic section in different regions andisone of themostpopular basic economic growth theories. TNI LQ.  TNa CNi CNa Thismethodis usedto identify thebasicparts. IfLQisequal to 1 ,the regionis self-sufficient. If theLQisgreater thanone, the region is theexporter ofitsworkingforce, andif theLQislessthan 1, the region is an importer of working force.(HekmatNiaandMousavi, 1385: 68).

Table 3: Determining therestaurantand hotelsectoras coreand non-core section

Spatial coefficient number city 75 90 1 Ardestan 0.57 0.81 2 Esfahan 0.80 1.15 3 Aran and Bidgol 0.22 0.35 4 Barkhar 0.41 0.92 5 Tiran and Karvan 0.29 0.69 6 Chadgan 0.85 1.49 7 Khomeini Shahr 0.78 0.96 8 Khansar 0.34 0.41 9 Dehaghan 0.34 0.47 10 Semirom 0.17 0.46 11 Shahreza 0.53 0.85 12 Fereidan 0.45 0.75 13 FereidunShahr 0.16 0.27 14 Falavarjan 0.51 1.16 15 Kashan 0.33 1.06 16 Golpayegan 0.40 1.06 17 Lenjan 0.32 0.64 18 Mobarake 0.31 0.67 19 Naeen 0.60 0.72 20 Najafabad 0.49 0.98 21 Natanz 0.31 0.61 Source: researcher's findings

According to theabove table, it isobservedthat considering the LQ of 1375, none of the cities were the exporter of working forces in therestaurantand hotelsector and all of them were importers of working forces. In the column related to 1390 LQ it can be seen that five cities of Isfahan, Chadgan,Falavarjan, respectively, and all five cities 1.15 ، 1.49، 1.16، 1.06 و Kashan and Golpayegan have the LQ of 1.06 are the exporters of working forces. While the cities of Ardestan, Aran and Bidgol, Barkhar and Meime, Tiran and Kerun, Khomeini Shahr, Khansar, Dehaghan, Semirom, Shahreza, Faridan, FereidunShahr, Lanjan, Mobarake, Naeen, Najaf Abad and Natanz have LQ of ،0.69 ،0.92 ،0.35 ، 0.81 respectively and all 16 cities are the 0.96، 0.41، 0.47، 0.46، 0.85، 0.75، 0.27، 0.64، 0.67، 0.72، 0.98 0.61 importers of working in the restaurantand hotelsector.

Analysis of Preoccupation Structure of Restaurant and Hotel Management in Isfahan Province 366

Figure 2: The Map of theimported and exported forces in the restaurantand hotelsector,in Isfahanin 1375

Source: researcher's findings

Figure 6: The Map of theimported and exported forces in the restaurantand hotelsector,in Isfahanin 1390

Source: researcher's findings

The maps above separately show the working forces` importer and exporter cities in the restaurantand hotelsector in the years of 1375 and 1390.

5. Conclusions and Suggestions As it was noted in the analysis above, the restaurant and hotel management sector in Isfahan province is apart of industries that has gained a good growth in the economy of this province. Each of the cities of this province, separately, have a relative advantage in regard to the reference economy (the whole country) and have capabilities for making infrastructure and investing on this sector.All of the cities of this province were labour force importer in 1375. Isfahan, Chadegan, Falavarjan, Kashan and Golpayegan were labour force exporter at restaurant and hotel management sector in 1390. Ardestan, AranvaBidgol, BorkharvaMeymeh, Khomeinyshahr. Khansar, Dehaghan, Semiroum, Shahreza, Fereidan, Fereidunshahr, Lenjan, Mobarakeh, Naeen, Najafabad and Natanz were labour force importer atrestaurant and hotel management sector in 1390.

367 Athar Noormohammadi, Mehri Azani and Hajar Norouzi

The cities, that were labour force importer, are faced lack of force, ofcourse it can have different reasons.On the other hand, the cities, that are labour exporter, use the incomes of this sector as a motor and motive for developing economy and increasing the coefficient.Tourism industry is a labour intensity industry. Although, current processes in developing the economyof countries have propensity to use high-cost technologies, this industry has an importantrole in making jobs for the countries that are faced unemployment and have sufficient atteraction and capabilities.In fact, most of the countries, that have had tendency to this industry, were following making job, and employment. One of the main characteristics of tourism industry is to include a wide range of professional and educated forces in different ages. So, we can attract more tourists to province by lower-cost investing than other industries and by identifying historical, natural, cultural and remedial attractions of this province to people. Tourism industry is acting as a growth locomotive in economy of province, because most of the economical activities are dependant to it. Increasing the demands for tourism causes making and developing demands for all of the goods and services when tourists come to these cities and demand different goods and services, the suppliers have more demands than local demands. This moves the whole economy of province. It is expected that tourism development causes making and increasing other direct jobs like transporting, hotels, restaurants, agencies, tour leaders and etc. This can help decision makers to have a better investing and planning related to this issue, considering the situation of country and the need for employment and new job opportunities. On the other hand, the growth of this sector in province comparing to the national growth indicates the high-potentional of this region that can be opplied in the best ways. In this section some suggestions are made to help developing tourism andrestaurant and hotel management sector: 1. Increasing international cooperation, foreion direct investment, and cooperating with public and private sector at all levels. 2. Giving priority to local people through participation in the development of tourism and equal distribution of per capita income for local people. 3. Setting up a tourism database and hiring experienced tourist quides. 4. Preparing advertising programs and identifying the regon for domestic and foreign tourist. 5. Using the experiences of other countries in tourism enter preneurship. 6. More monitoring on the quality of residential are us. 7. Positioning for establishing hotels, restaurants and compings near the attraction. 8. Usingssepecial discounts on off-peak travel times. 9. Increasing advertising about the culture and local customs. 10. Building and converting some of the monuments and natural sites to places such as coffe houses, tea houses and accommodation for travelers. 11. Making economic sectors more dynamics by traditional jobs and crafts. 12. Hiring well-educated tourism managers in charge of administrative affairs and decision- making.

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