TOURISM IN NEW ZEALAND

Entrepreneurship and Regional Tourism Development in New Zealand

Entrepreneurship and Regional Tourism Development in New Zealand

Chapter 1: Introduction

Background

The assumption that small tourism firms (STFs) are naturally integrated with communities both socially and economically remains a moot point although the capacity of STFs to deliver a geographically dispersed form of economic development is undeniable. Indeed, STFs are, in both industrialised and developing countries, a rapidly expanding and dynamic sector of the regional tourism industry (Wanhill, 1997; Mottiar and Ryan, 2007). Smaller scale tourism developments that extend beyond the simple provision of services are seen by many countries as one of the key driving forces in “saving” their periphery (Telfer, 2002).

The process of tourism development is being seen as the path to enhance local economies (Thomas and Augustyn, 2007) and deliver more appropriate development to marginal and/or peripheral social, cultural and physical environments (Doorne, 2009). Small tourism firms have also been linked to creative product development and innovative entrepreneurship (Shaw and Williams, 1998: Ateljevic and Doorne, 2000; Getz and Carlsen, 2004, Thomas and Augustyn, 2007).

Purpose of the Study

The aim of the case study is to provide description, test the existing and generate additional theoretical constructs.

Problem Statement

Despite their emerging significance and entrepreneurial behaviour STFs like small firms in general face numerous difficulties due to an increasing number of reasons related to: their managerial weaknesses (Stokes, 2000); limited access to expertise in core business disciplines as well as life style motivations (Irvine and Anderson, 2004; Marcjanna, 2004, Ateljevic and Doorne, 2000); limited access to the external finance (Jarvis, 2006); and a unfair institutional regulatory environment that inhibits business growth and new entry (Smallbone and Wyer, 2006; Storey, 1994).

These disadvantages present barriers to successful tourism development, particularly in isolated areas dominated by small family-owned businesses (Morrison, 2006). In such situations the role of government, working through specific agencies, has been to identify good practices, benchmarking, provide financial support, and invest in the skills of the labour force (Wanhill, 2000). However, it remains unclear how the relationship between STFs/SMEs and the institutional sector works and how it might be improved upon (Fuller-Love et al., 2006).

Aims and Objectives

The aim of this paper is threefold. First, the study examines the small tourism businesses entrepreneurial behaviour and their ability to contribute to the regional development in the context of a transitional economy. Second, to see to what extent the bottom-up theoretical model underling a new regional development paradigm accommodates the selected empirical context.

Third, to identify specific and generic issues and constraints affecting STFs' development in order to inform decision-making in the policy and regulatory environment with a view to more effectively integrating the small firms sector into wider regional and national economies.

Significance of the Study

While the tourism literature helps us to understand specific issues facing STFs in rural regions, regional economic development literature provides a broader understanding of regional development strategies. The latter suggests that regional development strategy has shifted from the conventional “one-for-all” approach to more customised development strategies suitable for different ...