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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