Entrepreneurship in Travel and Tourism Management...

Entrepreneurship in Travel and Tourism Management

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2 | also refer book title “Entrepreneurship and Enterprise development in Nepal by DR Govind Ram Agarwal”

Entrepreneurship: A Mindset

• Entrepreneurship is more than the mere creation of business:

• Seeking opportunities

• Taking risks beyond security

• Having the tenacity to push an idea through to reality

• Entrepreneurship is an integrated concept that permeates an individual’s

business in an innovative manner.

The Myths of Entrepreneurship

• Myth 1: Entrepreneurs Are Doers, Not Thinkers

• Myth 2: Entrepreneurs Are Born, Not Made

• Myth 3: Entrepreneurs Are Always Inventors

• Myth 4: Entrepreneurs Are Academic and Social Misfits

• Myth 5: Entrepreneurs Must Fit the “Profile”

• Myth 6: All Entrepreneurs Need Is Money

• Myth 7: All Entrepreneurs Need Is Luck

• Myth 8: Ignorance Is Bliss For Entrepreneurs

• Myth 9: Entrepreneurs Seek Success But Experience High Failure Rates

• Myth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)

Entrepreneurs V. Intrapreneurs

Entrepreneurs are people that notice opportunities and take the initiative to

mobilize resources to make new goods and services.

Intrapreneurs also notice opportunities and take initiative to mobilize resources,

however they work in large companies and contribute to the innovation of the

firm.

Intrapreneurs often become entrepreneurs.

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Process Approaches to Entrepreneurship

• Integrative Approach

• Built around the concepts of inputs to the entrepreneurial process and

outcomes from the entrepreneurial process.

• Focuses on the entrepreneurial process itself and identifies five key

elements that contribute to the process.

• Provides a comprehensive picture regarding the nature of

entrepreneurship that can be applied at different levels.

• Entrepreneurial Assessment Approach

• Stresses making assessments qualitatively, quantitatively, strategically,

and ethically in regard to the entrepreneur, the venture, and the

environment

• Multidimensional Approach

• Views entrepreneurship as a complex, multidimensional framework that

emphasizes the individual, the environment, the organization, and the

venture process.

21st Century Trends in Entrepreneurship Research

• Major Research Themes:

• Venture Financing: venture capital and angel capital financing and other

financing techniques strengthened in the 1990s.

• Corporate Entrepreneurship and the need for entrepreneurial cultures has

drawn increased attention.

• Social Entrepreneurship has unprecedented strength within the new

generation of entrepreneurs.

• Entrepreneurial Cognition is providing new insights into the psychological

aspects of the entrepreneurial process.

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• Women and Minority Entrepreneurs appear to face obstacles and

difficulties different from those that other entrepreneurs face.

• The Global Entrepreneurial Movement is increasing.

• Family Businesses have become a stronger focus of research.

• Entrepreneurial Education has become one of the hottest topics in

business and engineering schools throughout the world.

Entrepreneurship

• A process of innovation and new-venture creation through four major

dimensions—individual, organizational, environmental, process—that is

aided by collaborative networks in government, education, and institutions.

Entrepreneur

• A catalyst for economic change who uses purposeful searching, careful

planning, and sound judgment when carrying out the entrepreneurial

process.

Entrepreneurial Management

• The discipline of entrepreneurial management:

• Entrepreneurship is based upon the same principles.

• It matters not who or what that the entrepreneur is—an existing

large institution or an individual, for-profit business or a public-

service organization, a governmental or non-governmental

institution.

• The rules are much the same: things that work and those that don’t

are much the same, and so are innovations and where to look for

them.

Stress and the Entrepreneur

• Entrepreneurial Stress

• The extent to which entrepreneurs’ work demands and expectations

exceed their abilities to perform as venture initiators, they are likely to

experience stress.

• Causes of Entrepreneurial Stress

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• Loneliness

• Immersion in business

• People problems

• Need to achieve

Dealing with Stress

• Networking

• Getting away from it all

• Communicating with employees

• Finding satisfaction outside the company

• Delegating

• Exercising Rigorously

Opportunity Identification:

The Search for New Ideas

• Opportunity identification is central to entrepreneurship and involves:

• The creative pursuit of ideas

• The innovation process

• The first step for any entrepreneur is the identification of a “good idea.”

• The search for good ideas is never easy.

• Opportunity recognition can lead to both personal and societal wealth.

Entrepreneurial Imagination and Creativity

• How entrepreneurs do what they do:

• Creative thinking + systematic analysis = success

• Seek out unique opportunities to fill needs and wants

• Turn problems into opportunities

• Recognize that problems are to solutions what demand is to supply

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The Role of Creative Thinking

• Creativity

• The generation of ideas that result in the improved efficiency or

effectiveness of a system.

• Two important aspects of creativity exist:

• Process

• The process is goal oriented; it is designed to attain a solution to a

problem.

• People

• The resources that determine the solution.

The Nature of the Creative Process

• Creativity is a process that can be developed and improved. Some individuals

have a greater aptitude for creativity than others.

• Typical Creative Process

• Phase 1: Background or knowledge accumulation

• Phase 2: The incubation process

• Phase 3: The idea experience

• Phase 4: Evaluation and implementation

Impediments to Creativity

• Eliminating Muddling Mind-Sets

• Either/or thinking (concern for certainty)

• Security hunting (concern for risk)

• Stereotyping (abstracting reality)

• Probability thinking (seeking predictable results)

The Creative Climate

• Characteristics of a creative climate:

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• A trustful management that does not over control the personnel

• Open channels of communication among all business members

• Considerable contact and communication with outsiders

• A large variety of personality types

• A willingness to accept change

• An enjoyment in experimenting with new ideas

• Little fear of negative consequences for making a mistake

• The selection and promotion of employees on the basis of merit

• The use of techniques that encourage ideas, including suggestion

systems and brainstorming

• Sufficient financial, managerial, human, and time resources for

accomplishing goals

Innovation and the Entrepreneur

• Innovation:

• Is the process by which entrepreneurs convert opportunities into

marketable ideas.

• Is a combination of the vision to create a good idea and the perseverance

and dedication to remain with the concept through implementation.

• Is a key function in the entrepreneurial process.

• Is the specific function of entrepreneurship.

The Innovation Process

• Types of Innovation

• Invention

• Extension

• Duplication

• Synthesis

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• Sources of Innovation

• Unexpected occurrences

• Incongruities

• Process needs

• Industry and market changes

• Demographic changes

• Perceptual changes

• Knowledge-based concepts

Major Innovation Myths

• Myth 1: Innovation is planned and predictable

• Myth 2: Technical specifications should be thoroughly prepared

• Myth 3: Creativity relies on dreams and blue- sky ideas

• Myth 4: Big projects will develop better innovations than smaller ones

• Myth 5: Technology is the driving force of innovation success

Principles of Innovation

Be action oriented.

Make the product, process, or service simple and understandable.

Make the product, process, or service customer-based.

Start small.

Aim high.

Try/test/revise.

Learn from failures

Follow a milestone schedule.

Reward heroic activity.

Work, work, work.

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Intellectual Property Protection: Patents

• Patent

• Provides the owner with exclusive rights to hold, transfer, and license the

production and sale of the product or process as an intellectual property

right.

• Design patents last for 14 years; all others last for 20 years.

• What Items Qualify for Patent Protection?

• Processes, machines, products, plants, compositions of elements

(chemical compounds), and improvements on already existing items.

Securing a Patent

• Rule 1: Pursue patents that are broad, are commercially significant,

and offer a strong position.

• Rule 2: Prepare a patent plan in detail.

• Rule 3: Have your actions relate to your original patent plan.

• Rule 4: Establish an infringement budget.

• Rule 5: Evaluate the patent plan strategically.Intellectual Property rotection:

Patents

• Patent Application

1. Specification: the text of a patent and may include any accompanying

illustrations.

a. An introduction explaining why the invention will be useful.

b. A description of prior art considered similar to the invention.

c. A summary of the essence of the technology/invention, its

differences from prior art and requisite features.

d. A description of the invention, including anything remotely relevant,

reference to variations, and number bounds.

e. Examples and/or experimental results, in full detail.

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2. Claims: a series of short paragraphs, each of which identifies a particular

feature or combination of features that is protected by the patent.

Intellectual Property Protection: Copyrights

• Copyright

• Provides exclusive rights to creative individuals for the protection of their

literary or artistic productions.

• Duration: life of the author plus 70 years.

• The copyright owner has the rights to:

• Reproduce the work

• Prepare derivative works based on it

• Distribute copies of the work by sale or otherwise

• Perform the work publicly

• Display the work publicly

• Sell or transfer individual rights

• Copyright Protection

• The material must be in a tangible form so it can be communicated or

reproduced.

• It also must be the author’s own work and thus the product of his or her

skill or judgment.

• Formal registration of a copyright is with the Copyright Office of the Library

of Congress.

• Fair Use Doctrine

• Reproduction of a copyright work for purposes such as criticism,

comment, news reporting, teaching (including multiple copies for

classroom use), scholarship, or research is not an infringement of

copyright.

• Protected Ideas?

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• The Copyright Act specifically excludes copyright protection for any “idea,

procedure, process, system, method of operation, concept, principle, or

discovery, regardless of the form in which it is described, explained,

illustrated, or embodied.”

Intellectual Property Protection: Trademarks

• Trademark

• A distinctive name, mark, symbol, or motto identified with a company’s

product(s) and registered at the Patent and Trademark Office

• Advantages of Trademark Registration

• Nationwide constructive notice of the owner’s right to use the mark

• Bureau of Customs protection against importers using the mark

• Incontestability of the mark after five years

• Trademark Duration

• Current registrations are good for 10 years with the possibility for

continuous renewal every 10 years.

• A trademark may be invalidated in four specific ways:

• Cancellation proceedings

• Cleaning-out procedure

• Abandonment

• Generic meaning

• Avoiding the Trademark Pitfalls

• Rule 1: Never select a corporate name or a mark without first doing

a trademark search.

• Rule 2: If your attorney says you have a potential problem with a

mark, trust his or her judgment.

• Rule 3: Seek a coined or a fanciful name or mark before you settle

for a descriptive or a highly suggestive one.

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• Rule 4: Whenever marketing or other considerations dictate the

use of a name or a mark that is highly suggestive of the

product, select a distinctive logotype for the descriptive or

suggestive words.

• Rule 5: Avoid abbreviations and acronyms wherever possible,

and when no alternative is acceptable, select a distinctive

logotype in which the abbreviation or acronym appears.

Trade Secrets

• Business processes and information that cannot be patented, copyrighted,

or trademarked but makes an individual company unique and has value to

a competitor could be a trade secret.

• Information Is Considered a Trade Secret:

• If it is not known by the competition.

• If the business would lose its advantage if the competition were to obtain

it.

• If the owner has taken reasonable steps to protect the secret from

disclosure.

• Examples of Trade Secrets:

• Customer lists

• Strategic plans

• Research and development

• Pricing information

• Marketing techniques

• Production techniques

Debt Versus Equity

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• Debt Financing

• Secured financing of a new venture that involves a payback of the funds

plus a fee (interest for the use of the money).

Commercial Banks

• Make 1-5 year intermediate-term loans secured by collateral (receivables,

inventories, or other assets).

• Questions in securing a loan:

• What do you plan to do with the money?

• How much do you need?

• When do you need it?

• How long will you need it?

• How will you repay the loan?

Advantages

• No relinquishment of ownership is required.

• More borrowing allows for potentially greater return on equity.

• During periods of low interest rates, the opportunity cost is justified since

the cost of borrowing is low.

• Disadvantages

• Regular (monthly) interest payments are required.

• Continual cash-flow problems can be intensified because of payback

responsibility.

• Heavy use of debt can inhibit growth and development.

Other Debt Financing Sources

Trade Credit

• Credit given by suppliers who sell goods on account.

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Accounts Receivable Financing

• Short-term financing that involves either the pledge of receivables as

collateral for a loan or the sale of receivables at a discounted value

(factoring).

Finance Companies

• Asset-based lenders that lend money against assets such as receivables,

inventory, and equipment.

Other Debt Financing Sources (cont’d)

Equity Instruments

• Give investors a share of the ownership.

• Loan with warrants provide the investor with the right to buy stock

at a fixed price at some future date.

• Convertible debentures are unsecured loans that can be

converted into stock.

• Preferred stock is equity that gives investors a preferred place

among the creditors in the event the venture is dissolved.

• Common stock is the most basic form of ownership and is often

are sold through public or private offerings.

Equity Financing

• Money invested in the venture with no legal obligation for entrepreneurs to

repay the principal amount or pay interest on it.

• Funding sources: public offering and private placement

Public Offering

• “Going public” refers to a corporation’s raising capital through the sale of

securities on the stock markets.

• Initial Public Offerings (IPOs): new issues of common stock

Public Offerings

• Advantages

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• Size of capital amount

• Liquidity

• Value

• Image

• Disadvantages

• Costs

• Disclosure

• Requirements

• Shareholder pressure

Feasibility Criteria Approach

• Assessing the viability of a venture:

• Is it proprietary?

• Are the initial production costs realistic?

• Are the initial marketing costs realistic?

• Does the product have potential for very high margins?

• Is the time required to get to market and to reach the break-even point

realistic?

• Is the potential market large?

• Is the product the first of a growing family?

• Does an initial customer exist?

• Are the development costs and calendar times realistic?

• Is this a growing industry?

• Can the product and the need for it be understood by the financial

community?

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The Importance of Financial Information for Entrepreneurs

• Significant Information for Financial Management

• The importance of ratio analysis in planning

• Techniques and uses of projected financial statements

• Techniques and approaches for designing a cash-flow schedule

• Techniques and approaches for evaluating the capital budget

Understanding the Key Financial Statements

• Balance Sheet

• Represents the financial condition of a company at a certain date.

• It details the items the company owns (assets) and the amount the

company owes (liabilities).

• It also shows the net worth of the company and its liquidity.

• Assets = Liabilities + Owners’ Equity

• An asset is something of value the business owns.

• Current and fixed assets

• Liabilities are the claims creditors have against the company.

• Short- and long-term debt

• Owners’ equity is the residual interest of the firm’s owners in the

company.

• Income Statement

• Commonly referred to as the P&L (profit and loss) statement from

activities of the firm.

• Provides the results of the firm’s operations.

• Income Statement Categories

• Revenues: gross sales for the period

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• Expenses: Costs of producing goods or services

• Net Income: The excess (deficit) of revenues over expenses (profit or

loss)

• Statement of Cash Flow

• An analysis of the cash availability and cash needs of the business that

shows the effects of a company’s operating, investing, and financing

activities on its cash balance.

• How much cash did the firm generate from operations?

• How did the firm finance fixed capital expenditures?

• How much new debt did the firm add?

• Was cash from operations sufficient to finance fixed asset

purchases?

• The use of a cash budget may be the best approach for an entrepreneur

starting up a venture.

Preparing Financial Budgets

• Budget

• One of the most powerful tools the entrepreneur can use in planning

financial operations.

• Operating Budget

• A statement of estimated income and expenses over a specified period of

time.

• Cash Budget

• A statement of estimated cash receipts and expenditures over a specified

period of time.

• Capital Budget

• The plan for expenditures on assets with returns expected to last beyond

one year.

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The Operating Budget

• Sales Forecasting

• Creating an operating budget through preparation of the sales forecast.

• Forecasting

• Linear regression: a statistical forecasting technique.

• Y = a + bx

• Y is a dependent variable—its value is dependent on the values of

a, b, and x.

• x is an independent variable that is not dependent on any of the

other variables

• a is a constant.

• b is the slope of the line of correlation (the change in Y divided by

the change in x).

The Cash-Flow Budget

• Cash-Flow Budget

• Provides an overview of the cash inflows and outflows during the period.

By pinpointing cash problems in advance, management can make the

necessary financing arrangements.

• Preparation of the cash-flow budget

• Identification and timing of three cash inflows:

• Cash sales

• Cash payments received on account

• Loan proceeds

• Minimum cash balance

Capital Budgeting

• The Capital Budgeting Process

• Identification of cash inflows or returns and their timing

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• The inflows are equal to net operating income before deduction of

payments to financing sources but after deduction of applicable

taxes and with depreciation added back, as represented by the

following formula:

Expected Returns = X(1 – T) + Depreciation

• X is equal to the net operating income

• T is defined as the appropriate tax rate

• Capital Budgeting Objectives

• Which of several mutually exclusive projects should be selected?

• How many projects, in total, should be selected?

• Payback Method

• Considers the length of time required to “pay back” (recapture) the original

investment.

• Any project that requires a longer period than the maximum time

frame will be rejected, and projects that fall within the time frame

will be accepted.

• One of the problems with the payback method is that it ignores

cash flows beyond the payback period.

• Why it is used?

• Very simple to use compared to other methods.

• Projects with a faster payback period normally have more favorable

short-term effects on earnings.

• If a firm is short on cash, it may prefer to use the payback method

because it provides a faster return of funds.

• Net Present Value (NPV) Method

• The premise that a dollar today is worth more than a dollar in the future.

• The cost of capital is the rate used to adjust future cash flows to

determine their value in present period terms.

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• This procedure is referred to as discounting the future cash flows—

cash value is determined by the present value of the cash flow.

• Internal Rate of Return (IRR method)

• Similar to the net present value method, but future cash flows are

discounted a rate that makes the net present value of the project equal to

zero.

Break-Even Analysis

• Contribution Margin Approach

• Uses the difference between the selling price and the variable cost per

unit—the amount per unit that is contributed to covering all other costs.

• Fixed cost assumption:

• 0 = (SP–VC )S – FC – QC

• Break-even point:

• 0 = [SP – VC – (QC/U )]S – FC

• where:

• SP = Unit selling price

• VC = Variable cost per unit

• S = Sales in units

• FC = Total fixed costs

Ratio Analysis

• Ratios are useful for:

• Anticipating conditions and as a starting point for planning actions.

• Showing relationships among financial statement accounts.

• Vertical Analysis

• The application of ratio analysis to identify financial strengths and

weaknesses.

• Horizontal Analysis

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• Looks at financial statements and ratios over time for positive and

negative trends.

What is a Business Plan?

• A written document that details the proposed venture:

• Describes the current status, expected needs, and projected results of the

new business.

• Covers the project, marketing, research and development, manufacturing,

management, critical risks, financing, and milestones or a timetable.

• Demonstrates a clear picture of what that venture is, where it is projected

to go, and how the entrepreneur proposes it will get there—a roadmap for

a successful enterprise.

Benefits of a Business Plan

• For the Entrepreneur:

• The time, effort, research, and discipline required to create a formal

business plan forces the entrepreneur to view operating strategies and

expected results critically and objectively.

• For Outside Evaluators:

• The business plan provides a tool for use in communications with outside

financial sources.

• Specifically for the Financial Sources:

• Details the market potential and plans for securing a share of that market.

• Shows how the venture’s intends to service debt or provide an adequate

return on equity.

• Identifies critical risks and crucial events with a discussion of contingency

plans.

• Contains the necessary information for a thorough business and financial

evaluation.

Elements of a Business Plan

• Section I: Executive Summary

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• Section II: Business Description

A. General description of business

B. Industry background

C. Goals and potential of the business and milestones (if any)

D. Uniqueness of product or service

• Section III: Marketing

A. Research and analysis

1. Target market (customers) identified

2. Market size and trends

3. Competition

4. Estimated market share

• Section III: Marketing (cont’d)

A. Marketing plan

1. Market strategy—sales and distribution

2. Pricing policy

3. Advertising and promotions plans

• Section IV: Operations

A. Identify location

1. Advantages

2. Zoning

3. Taxes

B. Proximity to suppliers

C. Access to transportation

• Section V: Management

A. Management team—key personnel

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B. Legal structure—stock and employment agreements, and ownership

C. Board of directors, advisors, and consultants

• Section VI: Financial

A. Financial forecast (pro forma financial statements)

1. Profit and loss

2. Cash flow

3. Break-even analysis

4. Cost controls

5. Budgeting plans

• Section VII: Critical Risks

A. Potential problems

B. Obstacles and risks

C. Alternative courses of action

• Section VIII: Harvest Strategy

A. Transfer of asset

B. Continuity of business strategy

C. Identity of successor

• Section IX: Milestone Schedule

A. Timing and objectives

B. Deadlines and milestones

C. Relationship of events

• Section X: Appendix or Bibliography

Intrapreneurship

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Learning organizations encourage intrapreneurship.

Organizations want to form:

Product Champions: people who take ownership of a product from

concept to market.

Skunkworks: a group of intrapreneurs kept separate from the rest of the

organization.

New Venture Division: allows a division to act as its own smaller

company.

Rewards for Innovation: link innovation by workers to valued rewards.

Institutional support system is necessary at three stages enterprise development:

Inception or Promotion

Day-to-day management

Expansion and Diversification

Three dimensions of institutional support in tourism entrepreneurship may comes from

government and non government sectors and the Financial Institutions which may be in

form of as:

1. Eminent experts in the field

2. To provide wide range of extension services through allied institutions

3. To promote facilities for technology up gradation

4. To offer consultancy services

5. Entrepreneurship development and Management training.

6. Efforts for skill development.

7. Preparation of feasibility reports for different products.

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8. Provision of testing services.

9. Availability of tool room facilities.

10. Development of markets.

11. Development of infrastructure.

12. Information dissemination.

13. Entrepreneurship development.

14. Consultancy and managerial support.

15. Training and research.

16. Technology upgradation.

17. Marketing services.

Tourism Associations Nepal Mountaineering Association (NMA)

The Nepal Mountaineering Association (NMA) is the national mountaineering association of Nepal. This association was founded in the year 1973 with its main objectives aiming to promote the mountaineering activities in the Himalayan region, to safeguard the interest and to upgrade the professional and mountaineering skill of Nepalese mountaineers, to popularize mountaineering activities among Nepalese students and youths, to create awareness both in national and international level to preserve the beauty of Himalayan region for future generations.

The NMA is the founder member of Union of Asian Alpine Association (UAAA) and also an active member of the Union of International Alpine Association (UIAA) to help carry out its objectives, the Government of Nepal has authorized the Nepal Mountaineering Association to issue permit for 33 peaks in the Khumbu, Langtang, Annapurna and Manang area. Donation in cash and kind, membership fees from general member and professional members also form the NMA fund.

For More Information: Website: http://www.nma.com.np/

Hotel Association of Nepal (HAN)

Hotel Association of Nepal (HAN) was established in the year 1966, when it had just eight hotels and all of them was situated in Kathmandu itself. In the first ten years of its existence, due to the early stage of the industrial age as well as the membership being extremely homogenous, the Hotel Association of Nepal was able to make its mark on the governmental regulatory and social upgrading aspects of tourism.

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Furthermore, HAN was able to project itself as a leader in the decision making process pertaining to tourism. No aspects of tourism policies and their implementation could avoid the forceful imprint of HAN. The hotel industry at that time was perhaps one of the most successful industries in the scenario for hardly any other industry existed.

The period of 1970 to early 1980 was prolific year for tourism growth and its spread. It was in this period that all categories of star rated hotels grew not only within the confines of Kathmandu but it also spread its wings beyond the valley such as Pokhara, Chitwan and other districts of this valley itself. Till then tourism was still within the confines of sustainability and hotels helped in the growth of other segments of the tourism industry. Travel and trekking agents became more professional and their size of the market and its returns grew in manageable levels.

The 1980's ushered in the idea of a borderless world and as such trade and commerce began to flow from one part of the world to the next. The tourism industry, the very heart of the concept of borderless economy, obviously began to get its full share of benefit. On the other hand, the concept of international standards made the need for international network of marketing.

For More Information: Website: http://www.hotelassociation.org.np/

Nepal Association of Rafting Agents (NARA)

Nepal, with its bountiful water flowing from the peaks of the Himalayas and the high passes from the Tibetan plateau, possesses some of the finest whitewater rivers in the world. Additionally, Nepal is also home to one of the strongest and largest river tourism communities in the global industry. Comprising of approximately 61 companies, Nepal's river tourism industry employs thousands of native Nepalese and is entirely Nepali owned, operated and supplied, a fact which makes it unique among other forms of tourism development in the Himalayan area (in fact in the world) However, whitewater rafting in Nepal, well known among several specialist river running communities across the world, has had relatively little publicity and as such is an extremely valuable yet little appreciated and publicized form of sustainable development for the country of Nepal.

The Event: With this in mind, the Nepal Association of Rafting Agents in cooperation with Peak UK, one of England's largest whitewater kayaking equipment companies, has developed a proposal for the introduction of a river running event that has the potential to stimulate interest in Nepal as a tourist destination in general and Nepal's rivers in particular as one of the world's premier river running tourism destinations. The Peak UK Himalayan Whitewater Challenge in Nepal is a multi discipline one boat Event that combines extreme slalom / river running skills with down river speed and freestyle action to find an overall whitewater champion. This event, which will combine state of the art forms of extreme whitewater slalom, head to head down river racing and amazing displays of freestyle rodeo maneuvers into one world class competitive event. Additionally, this event will also allow for a competitive display of Nepal's rafting history as there will be a down river raft race in which Nepal's original Nepali raft guides, the current company owners, will guide rafts filled with their companies' best guides in a head to head race down the Bhotekoshi river to claim the honor of 'Top OG' (Original Guide). As such, this event promises to be not only a world class competitive affair, but also an opportunity for Nepal to demonstrate its long standing tradition of whitewater rafting expertise among its citizens.

Event Size and Expected Economic Benefits to Nepal's Tourism Industry. The event's organizer expected to attract to approximately 100-150 foreign competitors and approximately 100 Nepali participants, in addition to nearly 200-250 spectators, all of whom will help spread the world of Nepal's awesome whitewater tourism potential to those that they know aboard. Additionally, the foreign participants will all ply into Katmandu's Tribhuban International Airport, many of Nepalese air couriers Nepal Airline and then stay in Katmandu's hotels and guesthouse. Where they will shop for good and eat at local restaurants, helping to bolster the country's critical tourism industry that has taken such hard blows in 2001 due to both national and international crises. Additionally, past experience has shown that these participants will

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travel throughout Nepal after the events, to paddle many of Nepal's world class rivers and as such will help to benefit other areas throughout the country economically. Further, as a by-product of the event is, publicity about Nepal as a safe and secure tourism destination will be disseminated helping to stimulate other non whitewater bases sectors of Nepal's tourism industry as well.

For More Information: Website: http://www.raftingassociation.org.np/

Nepal Association of Tour and Travel Agents (NATTA)

After almost one month since the first ever government led Nepali sales mission to China returned to the country; Association of Tour and Travel Agents (NATTA) is putting an additional effort to promote Nepal in the Chinese market through its Discover Nepal-China mission. Organizing a press conference in the capital today, the Association informed that the team in the mission has incorporated most of the private sector tour entrepreneurs that have received government authority to handle Chinese tourists. "The mission would concentrate its campaign in two cities-Beijing and Shanghai," said Joy Dewan, head of the mission and the President of NATTA. The main concern of the mission would be about the interaction between the Chinese and Nepali tour operators that have been authorized for tour operation, he informed. Nepali entrepreneurs are waiting for a long time to see a good number of Chinese tourists since the signing of historic agreement between the Government of Nepal and China last November, which made Nepal Approved Destination Status (ADS) for Chinese tourists. The current major problems are the limited air services.

As both the Governments have principally agreed to review exiting air service agreement, the accessibility problems would be solved," said Dewan "However, we will do our best to promote Nepal as the cultural and scenic destination", he added. During the meet, Shi Xiang, the director of China National Tourism Office - Kathmandu informed that the Chinese Government has authorized additional 450 Chinese travel agencies to organize the tour between the two countries and handed over the list of the agencies to NATTA. He informed that the intensive promotion is required to attract Chinese tourists to this Himalayan area. "The Mission can be successful in creating awareness in the Chinese market about the beautiful Nepali tourism products." he said. Currently around 300 travel agencies, out of some 600 registered are in active operation in the country and the NATTA is demanding the government to authorize all these agencies to operate Chinese tourists. The mission that comprises 36 tourism entrepreneurs including three hoteliers had visited the city to Shanghai from 23 to 31 July, 2002.

For More Information: Website: http://www.natta.org.np/

Trekking Agents Association of Nepal (TAAN)

Trekking Agents Association of Nepal (TAAN) was formed and registered in the Kathmandu CDO Office in 1979 by a handful of trekking agents who realized that it was time to assemble and create an umbrella organization; under which they could work together to meet their common goals and also assist the government by providing suggestions to make trekking business revenue generating industry and also provide employment opportunity to the locals. Such a body was necessary for many reasons. The need for such a body was felt very much, which could undertake the major responsibilities to develop and promote adventure tourism in the country. It was also essential to play a significant, conducive role to mitigate mountain environmental stress.

Since its establishment, the number of trekking agencies has been increasing as well as the number of members of the association. TAAN limited its membership only to Nepalese trekking agents at its initial phase. Nevertheless, it opened its associate membership to foreign organizations to broaden the scope of the Association.

TAAN members (nearly 300 general members and 12 associate members) meet annually to endorse policy guidelines, which govern the Executive Body. It frequently communicates with the concerned

http://www.raftingassociation.org.np/

http://www.natta.org.np/

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bodies of the government to simplify the procedures and solve the problems related with trekking. TAAN has Nine Sub-Committees, which assist to meet its objectives. It also organizes workshops to make trekking agents aware of the rising pollution in trekking routes and other problems encountered by the trekkers and trekking agents. The executive body, which is elected every two years, has 6 office bearers, 8 Executive Members, 1 immediate Past President, 1 Chapter Representative and 3 Nominate Executive Member/s.

For More Information: Website: http://www.taan.org.np/

Nepal tourism board (NTB)

Government of Nepal ministry of culture, tourism and civil aviation

Innovation in tourism

The tourism sector has recently been influenced by several factors. Three can be identified and included

in the study of innovation in tourism:

1. First, globalisation has led to deregulation and increased competition in the tourism sector

(Weiermair, 2006). Nowadays, the number of tourists is increasing and they have easy access to

more regions/markets. Tourism consumption has grown and the sector has extended to new

economies. In view of this, firms and tourism destination have had to adapt to the new reality

and develop strategies to improve or maintain their competitive advantage.

2. Second, the tourist profile has changed. Tourist have become more experienced and informed.

It has facilitated access to information and increases the demand for alternative and more

sophisticated products. Tourists are now more independent and can self-organize their own

holidays.

3. Third, sustainability is essential in order to gain competitive advantage. Tourism firms must be

managed in line with the three key dimensions: economic, social and environmental.

4. Therefore, globalisation, experienced demand and sustainability must be taken into

consideration when planning a firm’s strategy to gain competitive advantages.

http://www.taan.org.np/

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• Entrepreneur

An entrepreneur is someone who is a risk taker and is ready to face challenges.

• Women Entrepreneur

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It may be defined as a woman or group of women who initiate, organise and run

a business enterprise.

Government of India has defined women entrepreneurs as owning and

controlling an enterprise with a woman having a minimum financial interest of

51% of the capital and giving atleast 51% of the employment generated in the

enterprise to women.

CHARACTERISTICS OF WOMEN AS ENTREPRENEURS

Imaginative

Attribute to work hard

Persistence

Ability and desire to take risk

Profit earning capacity

IMPORTANCE OF WOMEN ENTREPRENEURS

A good share of the population.

Traditionally outside the domain of economic activities.

They must be made part of the economic development, because it will ensure the

economic & social development of the women along with providing more human

resources to strengthen the economy of the country.

The economic status of women is now accepted as an indicator of a society’s

stage of development.

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Entrepreneurship in Travel and Tourism Management...

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