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2024 | Book

Tourism Entrepreneurship

Knowledge and Challenges for a Sustainable Future

Editors: Desiderio J. García-Almeida, Guðrún Þóra Gunnarsdóttir, Gunnar Thór Jóhannesson, Thorhallur Orn Gudlaugsson

Publisher: Springer Nature Switzerland

Book Series : Sustainable Development Goals Series

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About this book

This book explores how entrepreneurship can be a driving force for the tourism industry and a solution to various sustainability issues that the sector is experiencing, such as employment and inclusion issues and the social and environmental impact of tourism. Based on the premise that the energising force of entrepreneurship in the tourism industry positively affects the supply of tourism and hospitality services as well as job creation, economic stimulus, and the development of destinations, the book explores how entrepreneurship can provide opportunities for the development of tourism and society.

More specifically, the book contributes to different SDG goals (8 Decent Work and Economic Growth, 9 Industry, innovation and infrastructure, 1 No poverty, and 10 Reduced Inequalities) by highlighting the efforts made by entrepreneurs to create jobs and contribute to economic growth. Covering the processes and factors that facilitate or hamper the successful establishment and growth of tourism firms, as well as providing insight into the various processes of innovation, the book gives examples of how entrepreneurship plays a part in sustaining resilient and robust economies.

Ultimately, this volume makes the case that entrepreneurs are at the forefront of shaping as well as dealing with impact of tourism. Chapters offers questions and ideas for how to move towards a more sustainable future.

Table of Contents

Frontmatter
Chapter 1. Tourism Entrepreneurship: Knowledge and Challenges for a Sustainable Future
Abstract
Twenty years ago, geographer Mike Crang noted that tourism can be “an active agent in the creative destruction of places in what can be a violent, contested, unequal, but sometimes welcomed, transformative and productive process” (Crang, 2004, p. 75). During the last two decades, tourism has indeed been an agent of change. Tourism has globally been promoted as a tool for economic diversification and has proved to play a pivotal role in generating employment and fostering economic growth, estimated to be responsible for 9,1% to global GDP in 2023 (World Travel and Tourism Council, 2024). Between 2004 and 2019, international tourist arrivals have grown from approximately 720 million to 1462 million (Statista, n.d.). The COVID-19 pandemic inflicted heavy losses in the sector as international tourism was brought to a halt in early 2020 by the pandemic, resulting in a 72% decrease in tourist arrivals in one year, that is from 1462 million in 2019 to only 406 million in 2020 (Statista, n.d.). However, this particular indicator of tourism is estimated to reach pre-pandemic levels in 2024 (UNWTO, 2024a). Globally, the COVID-19 pandemic is the most severe crisis the tourism industry has ever had to deal with. However, as Gibson (2021) notes, the pandemic should not be regarded as a singular event. There are numerous challenges tourism as a sector has to deal with, ranging from a global environmental emergency and climate change to more local crisis situations like volcano eruptions, bushfires and economic downturns. This underscores how tourism is always entangled with broad ranging social, cultural and environmental processes.
Gunnar Thór Jóhannesson, Desiderio J. García-Almeida, Guðrún Þóra Gunnarsdóttir, Thorhallur Orn Gudlaugsson
Chapter 2. Knowledge-Based Factors and Growth of New Hospitality Firms: A Study of Iberian, Nordic, and Baltic Entrepreneurs
Abstract
Firm growth is one of the goals of many entrepreneurs in the tourism sector, and its study is in line with Sustainable Development Goal 9. This SDG refers to decent work and economic growth. Firm growth is associated with a positive performance and a sign of the potential long-term survival of the firm. Though many factors can influence the growth of new firms in the tourism industry, knowledge-based factors are particularly emphasised in the academic literature as strong drivers of several dimensions of organisational performance. The field of knowledge management outlines several knowledge-based factors that are strategically relevant for new firms. The goal of this work is to identify knowledge-based aspects that influence the growth of new firms. To that end, we test six hypotheses related to factors identified as significant for firm growth, namely the entrepreneurs’ formal education, their knowledge to start a business, their entrepreneurial network knowledge, and their knowledge to identify opportunities, along with their firms’ product and technological knowledge creation. The analysis is based on data extracted from the databases of the Global Entrepreneurship Monitor (GEM) for 2015 and 2016. In total, 228 new entrepreneurs with new lodging and food and beverage firms younger than 42 months from Spain, Portugal and Nordic and Baltic countries comprise the final sample. A regression analysis was performed to test the hypotheses of this work. Results show the positive impact of the entrepreneur’s higher education and the introduction of process innovation as determinants of the expected growth in those firms.
Desiderio J. García-Almeida, Gunnar Thór Jóhannesson, Andreas Humpe, Julia Nieves
Chapter 3. Immigrant Entrepreneurs and Their New Firms in the Tourism Sector: Analysis of the Knowledge Construction from Experience
Abstract
In mature tourist destinations, maintaining competitiveness is challenging due to issues such as lack of innovation and unappealing tourism offerings. Immigrant entrepreneurs in the tourism sector can introduce innovation and destination differentiation to counter these challenges, although little is known about their pathways to entrepreneurship. Some immigrants start with limited work experience, while others accumulate prior knowledge from their jobs as employees or even as managers or entrepreneurs. Their experience spans periods within and outside the tourism sector, in both their home and host countries. This study aims to analyse the professional development of immigrant entrepreneurs prior to creating their new businesses in order to observe the sources of experience that shape their entrepreneurial knowledge. The data were drawn from a survey of 107 immigrant entrepreneurs in the food and beverage sector in selected tourist areas of the Canary Islands. A cluster analysis of the different experiences in the professional development of immigrant entrepreneurs results in the existence of two groups with different characteristics: those with experience as tourism employees and those with experience as non-tourism managers. These results enhance the academic knowledge about immigrant entrepreneurs’ professional development in the tourism industry, and contribute to achieving several Sustainable Development Goals.
Tamara González-González, Pedro Calero-Lemes, Margarita Fernández-Monroy, Desiderio J. García-Almeida
Chapter 4. Immigrant Entrepreneurs in the Tourism Industry: Exploring Their Contribution to Co-Ethnic Communities
Abstract
This essay focuses on studying the enclave strategy in the context of tourism firms founded by immigrant entrepreneurs—that is, the selection by the immigrant entrepreneur of a business model that is based on a value chain dominated by compatriots—as well as on some of the consequences of such a strategy. In particular, considering the potential relevance of such a strategy for advancing numerous SDGs (e.g., Zero poverty, Good health and wellbeing, Decent work and economic growth, Reduced inequalities), we explore its impact on the contribution of immigrant entrepreneurs’ businesses to the wellbeing of their co-ethnic community. To test the hypothesis, we used a sample of 159 immigrant entrepreneurs living in the Canary Islands (Spain) who had set up a tourism firm. Different from previous literature that considers the selection of the enclave strategy as a single decision, we found that two different dimensions of such a strategy must be differentiated in the case of tourism firms: (1) the enclave strategy in terms of ‘supply sources/product offered’, and (2) the enclave strategy in terms of ‘target market’. We also found that the use of either of these two dimensions allows immigrant entrepreneurs to contribute more to the wellbeing of their co-ethnic communities.
María Gracia García-Soto, Antonia Mercedes García-Cabrera, María José Miranda-Martel
Chapter 5. Service Quality, Reputation and Performance: Prioritisation for Sustainable Growth and Innovation
Abstract
Research has shown that there is a strong relationship between service quality and reputation on the one hand and organisational performance on the other. However, because service quality and reputation are usually measured separately, little is known about the relationship with performance when service quality and reputation are measured simultaneously. Building on that notion, this study introduces the quality, reputation, performance (QRP) model, which simultaneously measures attributes in service quality, reputation, and performance. This allows a better understanding of the interplay between quality and reputation and how these attributes explain variation in organisational performance.
Findings are based on data gathered from guests (n = 319) who stayed at a hotel chain in Iceland in June 2023. The main result shows that the overall QRP model explains 57% (R2 = 0.567) of the variance in performance. When comparing the two independent variables, results shows that reputation (β = 0.51; P2 = 0.14) has a stronger unique contribution to explaining the variability than quality (β = 0.31; P2 = 0.05). The two independent variables are reasonably strongly correlated (r = 0.68), which indicates that they are both important when predicting organisational performance, although reputation has a greater unique contribution than service quality.
Magnus Haukur Asgeirsson, Thorhallur Orn Gudlaugsson
Chapter 6. Airbnb Hosts and Their Contribution to Sustainability Through Entrepreneurship and Consumption: Research Gaps and an Exploratory Study in Nordic Tourist Destinations
Abstract
The entrepreneurship of private households and incumbent companies operating as hosts on the Airbnb platform plays an important role in tourism development. Despite Airbnb’s gain in importance for tourism, the literature highlights its manifold negative externalities, which impair the achievement of sustainability goals. However, the platform also contributes to sustainable rural development through facilitating the micro-entrepreneurship of, and consumption and investment by, rural dwellers through income earned on the platform. This chapter explores this link for Nordic rural regions in a two-step approach: firstly, a literature review will elaborate three research gaps in the extant literature about Airbnb, Airbnb hosts, sustainability, and rural tourism. Subsequently, and based upon this review, an exploratory case study of Nordic Airbnb hosts in three rural case regions (North Iceland, Iceland; Northern Jutland, Denmark; and Nordland, Norway) will highlight the link between Airbnb-based entrepreneurship and local consumption and investment empirically. The case study utilises a sample of 64 Airbnb hosts, gathered through phone surveys in 2022 in the selected case regions. The chapter concludes by summarising the obvious, yet underresearched link between Airbnb hosts and sustainable development in rural tourist destinations that emphasises the entrepreneurial potential and redistributive effect of hosts on the digital platform.
Birgit Leick, Susanne Gretzinger, Jie Zhang, Farhana Yeasmin, Vera Vilhjálmsdóttir, Guðrún Þóra Gunnarsdóttir
Chapter 7. Relational Work in Rural Tourism Enterprising: Navigating In-between the Formal and the Informal
Abstract
Small-scale tourism enterprises are central actors in the rural labour market as facilitators of job opportunities, sustained business relationships, collaborations, and the development of resilient work relationships. These enterprises navigate in a market characterised by social and economic complexity where work is performed by a diverse workforce. The relational work performed in such enterprises contributes to many of the 17 UN Sustainable Development Goals (SDG). In this chapter, SDG 8 “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all” is considered. The chapter addresses how the resilience of work relationships is performed in practice, and how it can be analysed, presenting a theoretical framework for understanding rural tourism work. Drawing on the notion of “relational work” from economic sociology, the chapter offers a conceptual discussion aimed at developing a toolbox to analyse the boundary work between various types of relationships in the tourism labour market: formal and informal, professional and personal, as well as marketised and non-marketised work relationships. This toolbox captures important nuances in the labour market which are often overlooked. By studying these relationships, important learning leads to a better understanding of small-scale tourism enterprises and their role in rural tourism.
Erika Andersson Cederholm, Guðrún Helgadóttir, Birgit Leick, Ingibjörg Sigurðardóttir
Chapter 8. Entrepreneurial Ecosystem in Crisis: Icelandic Tourism in Times of COVID-19
Abstract
Tourism’s susceptibility to crises is well documented, yet it remains a key driver of regional development. This chapter examines how the Entrepreneurial Ecosystem (EE) contributes to tourism firms’ resilience during crises, thereby supporting sustainable tourism development. Data were collected in 2021 via interviews and focus groups with Icelandic tourism managers, owners, sector support professionals, and local administration representatives. The study highlights the government’s critical role in preventing business failures, raising its status from a framework to a systemic condition. Paradoxically, the crisis fostered innovation and collaboration, enhancing resilience. Networks proved vital for knowledge transfer and psychosocial support, creating a supportive community for entrepreneurs
Data were collected in 2021 during the COVID-19 pandemic via semi-structured interviews and focus groups with Icelandic tourism managers, owners, sector support professionals, and local administration representatives. The study offers the first application of the entrepreneurial ecosystem concept to tourism development in times of crisis. The analysis underscores the government’s crucial role in averting business failures during the crisis, serving as a safety net, raising its status from a framework condition to a systemic condition. Paradoxically perhaps, the crisis stimulated innovation and entrepreneurship, prompting firms to collaborate and augmenting tourism firms’ resilience. The analysis also reveals the vital role of networks, not only in knowledge transfer but also in providing essential psychosocial support, creating a supportive community for struggling entrepreneurs.
Íris Hrund Halldórsdóttir, Gunnar Thór Jóhannesson, Andreas Walmsley
Chapter 9. Tourism Impact of Social Media Influencers on Entrepreneurship During COVID-19
Abstract
The strategies of social media influencers in promoting local entrepreneurs to an international audience through globally accessible YouTube videos during the COVID-19 pandemic crisis are the focus of this research. Utilizing the Elaboration Likelihood Model (ELM), this study employs a qualitative data approach with thematic content analysis derived from viewer comments on selected YouTube videos. The theoretical insights gleaned from the ELM elucidate the cognitive mechanisms underlying viewer engagement, serving as the foundation for developing persuasive strategies that balance authenticity and connectivity. In practice, leveraging the ELM enables influencers and entrepreneurs to tailor marketing efforts to effectively engage audiences, drive economic growth, and contribute to Sustainable Development Goal 8: Decent Work and Economic Growth. By highlighting the resilience and adaptability of local businesses while addressing cultural challenges through empathetic storytelling, influencers and entrepreneurs play a critical role in fostering inclusive economic development, even amidst crisis situations.
Rosliyana Perangin-Angin, Dyuty Firoz
Chapter 10. Exploring the Dynamics of Digital Applications in Icelandic Tourism: Insights from Stakeholders
Abstract
Digitalisation in tourism increasingly influences entrepreneurial activities and plays a key role in fostering sustainability. A specific example of digital innovation in tourism is the growing significance of digital applications (apps), which have been proven to enhance communication with tourists. This trend aligns with the UN’s Sustainable Development Goal 9, which targets resilient and sustainable industry, innovation, and infrastructure. The current chapter focuses on the value that representatives of the tourism support system attribute to digital innovation. Potential obstacles that could impede the successful implementation of entrepreneurial endeavours of digital solutions in the Icelandic tourism industry are discussed, and three examples of digital innovation in Iceland are examined: an entrepreneurial app; a digital platform initiated by destination marketing organisations; and the development of an Iceland-specific app that could foster tourism sustainability by providing targeted information to manage the flow of visitors to popular attractions. These three examples demonstrate how the success of digital solutions depends on gathering significant market awareness and creating a large user pool. Due to their focus often being limited to a specific locale, these applications frequently fail to achieve sufficient user downloads to cover the development costs, scale up, add value, and become effective tools for tourism development in Iceland. This chapter reveals that while the tourism support system recognises the value of digital solutions, the widespread implementation of successful tourism apps at the national level is lacking. The reasons for this phenomenon and the potential effects on entrepreneurial endeavours are discussed.
Magdalena Falter
Chapter 11. A Scientometric Analysis to Guide Future Research on Tourism Entrepreneurship
Abstract
Based on a scientometric approach, this chapter aims to uncover the current thematic structure of Tourism Entrepreneurship (TE) as a research domain and its main theoretical pillars to guide the future research path on this topic. Scientific research papers published over a period of almost 40 years (1987–2023) in high-impact journals were collected to plot the current morphology of TE research. Strategic Thematic Map and Reference Publication Year Spectroscopy aid us in uncovering the status quo of this research domain. The results of this essay guide the improvement of enterprises in the tourism sector and thus contribute to tourism employment, innovation, and sustainable local economic growth in line with the Sustainable Development Goals (SDGs). This study proposes some reflections to guide a future research agenda. Among others, it reinforces the central idea of fostering the interdisciplinarity and hybridisation of the Tourism and Entrepreneurship research area for a better understanding of the topic analysed, as well as a better alignment with the SDGs of this promising research area.
Rosa M. Batista-Canino, Silvia Sosa-Cabrera, Lidia Santana-Hernández, Pino Medina-Brito
Backmatter
Metadata
Title
Tourism Entrepreneurship
Editors
Desiderio J. García-Almeida
Guðrún Þóra Gunnarsdóttir
Gunnar Thór Jóhannesson
Thorhallur Orn Gudlaugsson
Copyright Year
2024
Electronic ISBN
978-3-031-61249-7
Print ISBN
978-3-031-61248-0
DOI
https://doi.org/10.1007/978-3-031-61249-7

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