Constraints on the Development of Rural Tourism Enterprise in Ireland's
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CONSTRAINTS ON THE DEVELOPMENT OF RURAL TOURISM ENTERPRISE IN IRELAND’S WESTERN REGION Sophie Price PhD Supervised by Dr. James Hanrahan & Dr. Perry Share Submitted to the Institute of Technology, Sligo, December 2010 DECLARATION I hereby certify that this material which I now submit for assessment of the programme of study leading to the award of PhD is entirely my own work and has not been taken from others, save to the extent that such work has been cited and acknowledged within the text of this study: In memory of my father, Patrick Price ACKNOWLEDGMENTS This work, completed through the Institute of Technology, Sligo was, in its early stages, funded through the I.T. Sligo Seed Fund for Research and subsequently, the Failte Ireland Tourism Research Scheme. I would like to acknowledge the contribution of Dr. James Hanrahan and Dr. Perry Share and the valuable input of the examiners. I would also like to thank my friends and family, especially my inspirational mother, Betty Price, for her endless support and encouragement over the years. Finally, I would like to thank my colleagues at I.T. Tralee for their support and all of the participants of this research, especially the interviewees who gave of their time so generously. ABSTRACT The positive impacts of rural tourism enterprise have led to an increasing recognition among governments of the value of its contribution to the health of regional and national economies. Enterprise in the tourism industry requires a certain climate in order to prosper, however there are a number of dynamic constraints which impact upon operators within the sector. This research uses a series of unstructured interviews and detailed questionnaires to achieve a practical understanding of the real barriers experienced by entrepreneurs in the tourism sector. The dynamics of the internal and external factors that shape tourism enterprise development are explored. The western region of Ireland provides the geographical scope of this study, exhibiting a largely rural context which offers a unique opportunity to investigate firms in the rural tourism sector. The research clearly demonstrates the existence of two categories of constraints: internal (the skills, experience, training and motivations of the entrepreneur and the size and operational aspects of marketing and human resources of the enterprise) and external (access/infrastructure, cost of operation, support, complementary tourism product, demand and seasonality and location). Constraints on the development of rural tourism enterprise are complex and interdependent however a better understanding of these issues is essential to the successful future development of the industry. This research contributes to this understanding through the development of a new theoretical framework. v TABLE OF CONTENTS List of tables................................................................................................................x List of figures................................... xii Abbreviations.......................................................................................................... xiv Chapter 1: Introduction............................................................................................... 1 1.1 Rationale and significance.............................................................................. 2 1.1.1 Small rural enterprise................................................... 2 1.1.2 International tourism trends............................................................5 1.1.3 Tourism’s regional and national contribution................ 7 1.1.4 Tourism enterprise: a neglected theme..........................................10 1.2 Thesis aim and objectives..............................................................................11 1.3 Context..........................................................................................................13 1.3.1 Industry structure................................. 16 1.3.2 Irish tourism policy.......................................................................17 1.3.3 Regional context............................ 19 1.3.4 Theoretical context....................................................................... 22 1.4 Thesis structure.............................................................................................23 Chapter 2: Rural Tourism Enterprise........................................................................ 27 2.1 Introduction......................................................... ........................................ 27 2.2 Rural tourism............... 28 2.2.1 Tourism and the rural economy....................................................29 2.2.2 Trends in rural tourism..................................................................30 2.3 Tourism enterprise and entrepreneurship.......................................................33 2.3.1 Distinguishing enterprise from small business............................. 34 2.3.2 Are tourism enterprises different?................................................36 2.3.3 Motivation and entrepreneurial ‘success’ ..................................... 38 2.3.4 Definitional evolution?............................... 41 2.4 Theoretical foundations................................................................................ 43 2.4.1 Existing literature....................................................................... 45 2.4.2 Embarking upon the study of constraints......................................47 2.4.3 Existing theoretical frameworks...................................................49 2.5 Foundations of a new theoretical framework.................................................53 2.6 Conclusion....................................................................................................54 Chapter 3: Development Constraints.........................................................................56 3.1 Introduction...................................................................................................56 3.2 Internal factors ................................................................................... 56 3.2.1 Skills, experience and training...................................................... 57 3.2.2 Motivation.................................................................................... 59 3.2.3 Enterprise size...............................................................................61 3.2.4 Human resources...........................................................................63 3.2.5 Marketing..................................................................................... 66 3.3 External Factors............................................................................................69 3.3.1 Access/infrastructure.....................................................................70 3.3.2 Cost of operation...........................................................................73 3.3.3 Support......................................................................................... 75 3.3.4 Complementary tourism product .......................... 79 3.3.5 Demand and seasonality...............................................................81 3.3.6 Location....................................................................................... 83 3.4 PESTE factors...............................................................................................86 3.5 Conclusion....................................................................................................88 Chapter 4: Methodological Approach....................................................................... 90 4.1 Introduction...................................................................................................90 4.2 Achieving the aim and objectives..................... 91 4.3 A multi-method approach............................................................................. 93 4.4 Qualitative research...................................................................................... 95 4.4.1 Sampling...................................................................................... 96 4.4.2 Qualitative data collection............................................................98 4.4.3 Analysis of qualitative data.......................................................... 99 4.5 Quantitative research...................................................................................101 4.5.1 Sampling.................................................................................... 102 4.5.2 Data collection............................................................................103 4.5.3 Analysis of data.......................................................................... 105 4.6 Ethics...........................................................................................................106 4.6.1 Ethics statement......................................................................... 107 4.7 Limitations.................................................................................................. 107 4.8 Conclusion.................................................................................................. 109 Chapter 5: The Enterprise and the Entrepreneur: Profiles and Constraints.............. 110 5.1 Introduction................................................................................................. 110 5.2 The enterprise and its management .................................................. 110 5.2.1 Types of