HOSPITALITY AND TOURISM

Managing Hospitality and Tourism Projects

Table of Contents

Introduction3

Critical Evaluation of Theories and Concepts3

Project Management & Decision Making Theories3

PERT theory of Project Management4

PERT and CPM Networks4

Decision Making Theory5

Approaches to Project Management5

Cost-Benefit Analysis5

Evaluation of a Specific Project6

Tourism Strategies7

Strategies for Hospitality Planning9

Hotel Business9

Restaurant Industry11

ITC and Decision-Making14

Resource and Planning14

Forecasting Methods15

Statistical Analysis15

Cost and Benefit of the Project17

Conclusion21

References22

Managing Hospitality and Tourism Projects

Introduction

The main purpose of this paper is to discuss how to manage hospitality and how the tourism projects should be formulated. According to Ntamere, (1995) a Project is a discrete package of investment or endeavour, policy measures and institutional and other activities designed to achieve an objective or set of objectives within a designated period and involving the commitment of resources. To Osuagwu, (1997) a project simply means a series of related activities with a goal, a beginning, and an end. Tourism and hospitality are interrelated. When a country is looking to create and develop tourism, it will have to make sure that hospitality in the country is properly managed. For effective tourism and hospitality, the countries should formulate projects that will help in developing tourism.

Aim of the Project

The main objective of this report is to discuss the implementation of project management techniques for the Managing and Hospitality and Tourism. In the second part, project management practices are compared for the implications related to real life project. Statistical analysis and cost benefit tests are conducted to determine whether project should be pursued or not.

Critical Evaluation of Theories and Concepts

Project Management & Decision Making Theories

A substantial amount of theoretical research has been done in the area of project scheduling and control, since the development of the Critical Path Method (CPM) and the Program Evaluation and Review Technique (PERT). These are the decision making methods which can be chosen for the project management (Chatfield, 2000, p. 65). These two traditional methods visualize a project based on the precedence relationships among activities and focus mainly on two dimensions of the project: cost and time. With these methods, project managers are able to: (1) visually understand the project: (2) schedule the project (3) predict the entire duration of the project using critical path analysis: and (4) control activities to meet the required deadline (Cavatino, 2000, p. 91).

PERT theory of Project Management

The probabilistic model that derives its estimates on the probability of occurrence is called PERT. PERT can derive task duration with a high probability of accuracy with user estimates (pessimistic, optimistic, and most likely). The PERT diagram which is also a network diagram which has it's widely usage today. The organizations began to shift to a project management approach by the late 1950s (Breyfogle, 2000, p. 85). In the past, the organizations have their usage to have architects and engineers act as a project manager for part of the project and at that time the responsibility was at architects or engineers.

PERT and CPM Networks

Programs Evaluation and Review Technique (PERT) uses Critical Path Method, Gantt Charts, tracking, resource smoothing and cost tradeoffs at the start and end stages ...