The objective of this report is to discuss an analysis based on views of different articles in the context of tourism industry. All these analyses are based on practices of entrepreneurial change based on the perception of tourism industry.
• Provide an analysis and overview based on two different articles by considering philosophical approaches and methodological evaluation.
Critical analysis of articles helps the person in developing understanding over two similar studies in different ways. It evaluates the methodologies used in study to collect information and strategies utilized to analyse in order to inter- operate reliable information. The report will outline critical analysis of two articles that is Cuba in transition: Tourism industry perception of entrepreneurial change and impacts and implications of an annual major sport event: a host community perspective. To make in-depth evaluation of both the studies, individuals will outline methodologies and analysis tools used by scholar to collect data for research.
Article 1 Cuba in transition: Tourism industry perceptions of entrepreneurial change
The Article Cuba in transition: Tourism industry representation of entrepreneurial change and impacts is based on primary data collection where information is collected through interview of tourism stakeholders where focus of scholar was to find out perception of stakeholders on increasing private organisation in Cuba. Further, the researcher will aim at analysing hindrance in business operations due to fluctuations in governmental factors that is increasing tax rates, limited organisational function and arbitrary regulations. The article has centred on determining focus of Cuban Government, which is to create conducive and sustainable private sector. The research is based on constructivist perspective in which the scholar assumes that reality is combination of linguistic and cultural constructs. The data in this study is collected BY author in July within 12 days (Hingtgen and et.al., 2015). The respondents were group of stakeholders which comprise of tourism experts who are the owners of tourism firm, and employees. The data is evaluated with the help of qualitative analysed by exploring social phenomenon which is related to entrepreneurial ventures. However, during research, three interviews were segregated by researcher for comparison in order to derive critical view on the aim of investigation.
The study of Cuba on tourism industry first discusses about approaches to understand tourism where scholar discussed about Cuban culture, private firms and collectivism. Determining culture plays an important role as it is core concept which drives the climate of organisations. It states about the families' and their culture which reflects functioning of enterprises. In this study, it has been determined that extended family plays an important role in effective engagement. Further, it expressed the Family Code of 1975’ by 1989 which states that 39% of the workforce in Cuba is of women. Furthermore, it identified that economic recession affected many families and led to shortage of funds and resources. On the other hand, collectivism is an interdependent concept which is focused on united functioning where individuals focus on their interest in group work which can lead to team innovation. In order to make research more effective, the scholar first introduced tourism in Cuba where the individual states that, developing knowledge over tourism in Cuba needs to develop focus on tourism on island. Cuban life and tourism industry was majorly affected by United States Trade Embargo which happened due to collapse of Soviet Union (Babb, 2011).
Trade embargo is the economic sanction which restricts the entry of some specific goods and services from international boundaries. It is t situation when government exercises financial penalties on some specific country which limits or restricts entry. Further, it was controlled by president when the individuals restricted travel to CUBA and imposed charges on Cuban American families of 500$. In this, focus of president was not to restrict entry instead it was based on limiting entrants in order to overcome the situation which raised after collapse. Apparently, Cuban tourism is famous because of its island location where the industry offers room facilities on beaches which becomes attraction for tourists. 69 percent of Cuba tourism accommodation is located on the side of beaches which has assisted industry in maximizing business (Roland, 2013). However, 70% of rooms are located either on Varadero or Havana and 65 percent are 4 or 5 stars.
Further, the article focused on systematic issues and historical trends of tourism in Cuba from where it has been determined that before Cuban revolution in 1959, the international travellers especially tourists from United States who were fascinated with Sun Sea and sand beauty of Cuba were the crucial parts of economy. Apparently, the discussion outlined that tourism is related to various unethical activities that are gambling, drugs and prostitution. These activities did not fit the socialist ideals of new government because the focus of authority was on supporting international tourism in Cuba. Further, from the study, it has been identified that with collapse of USSR, the Cuban economy drowned but tourism alleviated crisis with continuous contribution. The discussion identified that to increase tourism in Cuba, foreign investors and Cuban government have started investing in beach side resorts like Cayo Santa Maria and Varadero. However, with increasing tourism investment and legalisation of US dollar, it has been determined that tourism business and activities have increased dramatically.
Nevertheless, to make its more accurate, the scholar stated about increase in Gross Domestic Product from 30.69 Dollar in 2002 to 114.1 Dollar in 2010. The hike in GDP clearly demonstrates that tourism activities in Cuba are effective and performing remarkably well. The industry reflected major hike of 72.9 percent in comparison to every other industry. Apart from this, the discussion in article states that Cuban tourism has grown to a high extent without any support from US. The study outlined reason behind conflict between US and Cuba which was restriction due to trade embargo because it restricts ability of Cuban to trade internationally. This limitation in between Cuba and US makes it difficult of the tourists to travel.
Further, to make critical discussion over entrepreneurial activities in Cuba, scholar framed use of table which determines entrepreneurial climate in Cuba. The table description is about E climate category, sub component and Cuban context. The category comprises of governance which is related to support of legislation on small organisation, structure of tax, permission, decision making and power structure. Due to these factors in Cuba, there is limited self-employed people; taxes are extremely high in comparison to earnings and also, it is very difficult for the organisation to recruit and fire employees because changes in governance structure makes management complex. Moreover, it analyses the category of business support services which comprise of quality tourism products, general support and effective DMOs. The category is related to Ministry of tourism which organised international tourism even in 2006 and quality of products is focused on diversification.
Thus, from the findings of article, it can be stated that barriers to private enterprises are centralised decision making and increasing tax rates which is a threat to enterprise because these individual holds risk of getting shut due to inspection, limited permit of running an enterprise and excessive regulations. Further, from the discussion, it has been analysed that tourism in Cuba cannot manage the environmental changes of industry and therefore, its profitability and contribution keep fluctuating. The fluctuating factors in industry include poor transportation facility, dearth of hotels accommodation and services, limited access to internet and barrier to development of tourism. The discussion was also on savings which was not in hands of people due to increasing tax rates. However, due to increasing strict control of governance factors, it has been identified that citizens take loans to start-up their ventures because the people lack control over savings.
The findings are focused on private firm and their services, from which it can be critically evaluated that Cuban people lacks business skills due to lack of training facility and skill development programme. Numerous people are unemployed and have no chance of getting employees or starting own ventures because of strict control over permission, impose of huge taxes, arbitrary limits and insufficient loans. In addition, findings were about the control of wholesalers over market which impacts profitability ratio of private firm and retailers. There are many private enterprises that pay more to suppliers because of their small business functions and structure. Apart from this, discussion outlined about changing nature and activities of tourism