The tourism industry has been challenged with different regulatory requirements for the operation of a business in the industry. There has been a number of liberization efforts in the industry to remove most of the regulatory requirements such as market integration, Free Trade agreement and the and the Paci?c’s ASEAN Free Trade Area . There has been a number of small and larger companies in the tourism industry who have advocated for greater advocacy in the tourism industry which will help promote sustainability in the tourism industry. The business people in the tourism industry have been forced to adhere to the rules and regulations set in the industry. They have been forced to comply of they face shut down. The main sectors of the tourism industry that face the challenges involves; transportation, tour operators, accommodation and travel agents (Dewhurst,2003).
The regulatory requirements set by the government to govern the tourism industry involve the following; acquiring of trading certificate that will allow the business to conduct its business, registration certificate for the company. The company needs to register itself as a company according to the company act required by each company. In addition to the trading and certificate of registration, the company should also comply to the safety and health standards in the business environment. The company will also comply to the environmental requirements of taking care of the environment and provision of employment to the local communities. This can be achieved through the involving the local communities in the development, management, enhancement, management and preservation of all the resources used for the tourism projects especially environmental and cultural resources. Another regulatory requirement that need to be followed by the businesses in the tourism industry would involve the implementation of environmental and quality standards that are agreed upon by the relevant international organizations and bodies for the different projects of the tourism industry (Quiros,2007). The companies in the tourism industries are required to allocate their revenues to the prevention of any degradation of the available resources in the environment in which the business is operating in to be able to meet the demands of the tourism services in the future.
Regulatory requirements involving the protection of environment has been emphasized by the government. Environment protection policies are put in place to protect the natural resources that surround the environment. The government has therefore introduced new social and environmental barriers that affect the production methods in the tourism industry. The government will have to control the nature of the products the company imports or exports to other foreign countries through the environmental and social standards to be instituted. Most of the emphasis has been put on the promotion of the green standards which is the protection of the environment through sustainability. In addition, there has been a legislation that regulates the tourism activities which included the 2006 Australia shores Act which banned any construction near shorelines and buildings without proper planning permission were demolished (Dobson,2006).In 2003, a similar legislation was passed to regulate the number of tourists accommodated in the hotels.
According to Potts,(2010) Regulations are hard to follow especially in the hotel industry because it is not a single entity but has different activities conducted in the industry. In respect to the regulations in the organization every employee in the hotel industry should be responsible. Based on the licensing and trading requirements the managers should be held responsible and on the other regulations involving the environment the employees of the organization should adhere to the set-up regulations. The business can assume responsibility for compliance by self-regulation. This method allows companies to use practices that are environmental friendly to be able to increase competitive advantage. Also, the company should use voluntary standards to adhere to the rules and regulations. The company should set up measures that it will safeguard itself in complying with the set rules and regulations. The government should also involve the businesses in setting up the regulations so that they will be held responsible if they do not comply. This will bring understanding between the government and the businesses in the hotel industry. The governments will determine how the industry’s self-regulation and voluntary standards affects the compliance of regulations by the companies.
The organizations should also sponsor programs that will dictate and teach the employees on how the business will operate, the importance of the adherence to the set rules and regulations in the industry. The regulations of the tourism industry are important because it will protect the employees and the general public from any harmful activities which may affect the safety and health of the stakeholders. The employees need to be informed on its importance and ensure that there is adherence by them. There are a number of penalties that are charged on the business if they fail to adhere to the set rules and regulations. If the business breaks the regulations concerning health and safety then the business will face legal action. In most cases the business risk closure or they are suspended for 5 or more years depending on the damage caused. If the business breaks the environmental regulations and fails to adhere to sustainable development then it will have to pay a fine set by courts or they are deregistered.
In conclusion, tourism is like any other industries or business and should be able to adhere to the set rules and regulations mainly the environmental regulations. The tourist business can prosper if the business has the required certification and has adhered to the regulatory environment. Prosperity and sustainable development depends on the compliance of the rules and regulations (Waayers,2006).
Dewhurst, H., & Thomas, R. (2003). Encouraging sustainable business practices in a non-regulatory environment: A case study of small tourism firms in a UK national park. Journal of Sustainable Tourism, 11(5), 383-403.
Dobson, J. (2006). Sharks, wildlife tourism, and state regulation. Tourism in marine environments, 3(1), 15-23.
Huybers, T., & Bennett, J. (2003). Environmental management and the competitiveness of nature-based tourism destinations. Environmental and Resource Economics, 24(3), 213-233.
Potts, T. (2010). The natural advantage of regions: linking sustainability, innovation, and regional development in Australia. Journal of cleaner production, 18(8), 713-725.
Quiros, A. L. (2007). Tourist compliance to a Code of Conduct and the resulting effects on whale shark (Rhincodon typus) behavior in Donsol, Philippines. Fisheries Research, 84(1), 102-108.
Waayers, D., Newsome, D., & Lee, D. (2006). Research note observations of non-compliance behaviour by tourists to a voluntary code of conduct: a pilot study of turtle tourism in the Exmouth region, Western Australia. Journal of Ecotourism, 5(3), 211-222.
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