The Competitiveness Challenge For Tourism Enterprises · PDF fileThe Competitiveness Challenge...

The Competitiveness Challenge For Tourism

Enterprises

Dr Tony Lenehan

Executive Director of the Centre for

Competitiveness (Ireland)

The Centre for Competitiveness (Ireland)

The driving force for Business Excellence in Ireland

Industry Competitiveness

• National Quality Awards (EFQM)

• Investors in Innovation

Accreditation

• Supply Chain 21 Accreditation

• Smart Grid Ireland – (Energy

Infrastructure)

• Service Excellence – Gold

Standard

• USA Council of Competitiveness

• Leadership and Management

Development

• Education/ Training on

Improvement tools & techniques

Centre Products and Services

•Enterprise Competitiveness

Business Excellence

Frameworks & Company

Diagnostics

Global Best Practices –

Manufacturing excellence,

Service excellence, Change

management

International Accreditations,

Business Supports and

Advisory Services

World Economic Forum - The Travel & Tourism

Competitiveness Index 2015

Ireland ranked 19th out

of 141 Countries in

2015. In 2013, ranking

was also 19th and 21st

in 2011.

Despite a solid overall

performance, Irish

Tourism still lacks

competitiveness in

important areas.

National and Industry

competitiveness

impacts heavily on

firm-level

competitiveness

Competitiveness

At the level of the Enterprise it is the demonstrated ability to

design, produce and commercialize a business- which fully,

uniquely and continuously fulfills the needs of targeted

market segments- while connecting with and drawing

resources from the business environment, and achieving a

sustainable return to the resources employed, through;

• Strong Leadership,

• Strategy, Plans and Processes

• Quality products and Services

Competitiveness

Maintaining Competitiveness

Ireland is currently ranked more expensive than ten

competitor destinations in Europe. Labour costs are rising.

The industry is at a competitive disadvantage because of the

higher cost of utilities and local government rates, as well as

the lack of a supply of qualified staff. Actions proposed; 1. Reform income taxes and the regulatory framework

2. Maintain the 9% VAT rate

3. Provide education and training more in tune with industry needs

(ITIC 2015)

Tourism Enterprise Competitiveness

No universal definition of

Tourism Enterprise

competiveness

The International Trade

Centre devised the SME

Competitiveness Grid as a

tool to explore the issue.

The Grid focuses on three

pillars of competitiveness at

the level of the firm.

Capacity to

Compete

Capacity to

Connect

Capacity to

Change

Enterprise Competitiveness Indicators

Adapted from the International Trade Centre (ITC) – SME Competitiveness Grid

Adapted from the International Trade Centre (ITC) – SME Competitiveness Grid

Profile of Hospitality Sector

There are over 16,000 enterprises in the hospitality-related

Accommodation and Food Services (AFS) sector in Ireland.

Hotels and other accommodation account for 14% of these

enterprises, while restaurants/mobile food service activities and

beverage serving activities/bars each represent 41% of the total,

with the remainder (4%) accounted for by catering and other food

service providers.

A particular feature of the sector is the concentration of

employment in small and medium-sized enterprises, with the

majority (over 80%) of businesses employing fewer than 10

people.

Defining ‘Enterprise

Competitiveness’ – The SME

Competitiveness Grid

Competitiveness is the demonstrated ability to design, produce and

commercialise a business- which fully, uniquely and continuously fulfills

the needs of targeted market segments- while connecting with and

drawing resources from the business environment, and achieving a

sustainable return to the resources employed, through;

– Strong Leadership,

– Strategy, Plans and Processes

– Quality products and Services

Defining Enterprise Competitiveness

The International Trade

Centre devised the SME

Competitiveness Grid as a

tool to explore the issue.

The Grid focuses on three

pillars of competitiveness at

the level of the firm.

Capacity to Compete

Capacity to Connect

Capacity to Change

Enterprise Competitiveness Indicators

Adapted from the International Trade Centre (ITC) – SME Competitiveness Grid

Adapted from the International Trade Centre (ITC) – SME Competitiveness Grid

Key Competitiveness Challenges

for Irish Tourism SMEs

Competitiveness Challenges

for

Tourism Enterprises

Embracing technology & maximising E-business potential

Getting closer to key stakeholders

Accessing Research

& Benchmarking Data

Capacity to Connect

Raising

management effectiveness

Developing clear vision &

strategic focus

Enhancing quality &

value for money

Competing at a

time of low growth rates

Developing

new domestic and international

markets

Innovating new

products and services

Accessing funding

for investment

Competitiveness

Challenges

The Challenge of Innovation

Innovation is the ‘implementation of a new or significantly improved

products (goods or service),a new process, a new marketing method, or

a new organizational method in business practices, workplace

organization or external relations.

(Source: OECD/EC)

Elements of Innovation: Product

Organisational

Process

Marketing

Competitiveness Challenges for

Tourism Enterprises

Embracing

technology &

maximising

E-business

potential

Getting

closer to key

stakeholders

Accessing

Research &

Benchmarking

Data

Capacity to Connect

Raising

management

effectiveness

Developing

clear vision &

strategic

focus

Enhancing

quality &

value for money

Competing at a

time of low

growth rates

Developing

new domestic

and international

markets

Innovating

new products

and services

Accessing

funding for

investment

Competitiveness

Challenges

Towards Enterprise

Competitiveness

The EFQM – A Framework for Enterprise

Competitiveness

Leadership

People

Strategy

Partnerships

&

Resources

Processes,

Products &

Services

People

Results

Customer

Results

Society

Results

Key

Results

Enablers Results

Source: EFQM

Capacity to Compete

Capacity to Change

The EFQM Framework

Business Results

Business Outcomes:

Financial Outcomes

Profit

REVPAR

Occupancy

ARR

Business Performance Indicators:

Process measures

Supplier performance

Service standards i.e. mystery guests, customer journey

Cost management

Budget management

Competitiveness

Indicators for Hotels

Innovation & Competitiveness

Innovation is the ‘implementation of a new or significantly

improved products (goods or service),a new process, a new

marketing method, or a new organizational method in business

practices, workplace organization or external relations’

(OECD/EC),

Building the

Innovative

Organization People

Development Processes

Tools & Capabilities

Finances

STRATEGIES

Innovation Leadership

Driving

Innovation

Through the

Organization

Disciplined

Process

Creating

New Competencies Knowledge Sources

Knowledge sharing

Technologies

Alliances

Innovation Networks

New Products, Services, & Processes- Long-Term Development of

the Enterprise- Building the Innovation Portfolio

Building Innovation Capacity

in the Enterprise

Innovation In Tourism Enterprises

Competitiveness Challenges for

Tourism Enterprises

Embracing

technology &

maximising

E-business

potential

Getting

closer to key

stakeholders

Accessing

Research &

Benchmarking

Data

Capacity to Connect

Raising

management

effectiveness

Developing

clear vision &

strategic

focus

Enhancing

quality &

value for money

Competing at a

time of low

growth rates

Developing

new domestic

and international

markets

Innovating

new products

and services

Accessing

funding for

investment

Competitiveness

Challenges

Thank You

Centre for Competitiveness (Ireland)

CityWest Business Campus

3015 Lake Drive

Citywest

Dublin 24.

Tel; 00 353 (0) 1 5312841

Mobile: 00 353 872242575

Tony.Lenehan@cforc.ie