TABLE OF CONTENTS
1. HILTON WORLDWIDE
1.1 COMPANY DESCRIPTION ………………………………………………….. 1
1.2 COMPANY GOALS …………………………………………………………... 3
2. BALI, INDONESIA
2.1 DESCRIPTION OF COUNTRY/REGION ………………………………….. 4
2.2 CURRENT STATUS AS A TOURIST-RECEIVING DESTINATION ……. 9
3. POTENTIAL MARKET
3.1 SOCIO-CULTURAL IMPACTS …..……….………….……………………. 10
3.2 STRATEGIES TAKEN ……………………………………………………… 12
WORKS CITED ………………………………………………………………………. 14
1. HILTON WORLDWIDE
1.1 COMPANY DESCRIPTION
As one of the most recognized names in the hotel industry, the Hilton company prides
itself on being a global leader in the hospitality industry as well as in their sustainability efforts.
With 10 brands they operate in 88 countries on 6 continents (North America, Latin America,
Europe, Africa, Asia and Australia). After more than 90 years in business, Hilton Worldwide
boasts a portfolio of more than 3,800 hotels around the globe.
Due to their wide range of hotel brands and types, Hilton offers all levels of
accommodations from superior luxury hotel suites to affordable hotel room and everything in
between. Waldorf Astoria Hotels & Resorts and the Conrad Hotels & Resorts are their luxury
brands offer personalized service and one-of-a-kind experiences reflecting the culture and
history of their destinations. Their full-service hotels, Hilton Resorts & Hotels which is their most
popular brand, DoubleTree by Hilton and Embassy Suites Hotels, provide exceptional service
and appeal to both business and leisure travelers. While Hilton Resorts & Hotels and
DoubleTree have properties all over the world Embassy Suites Hotels only operate in North
America. The Hilton Garden Inn hotels are upscale yet affordable and the Hampton is their
moderately priced brand, throughout North America. Homewood Suites by Hilton and Home 2
Suites by Hilton are their extended stay brands in North America. Hilton Grand Vacations is a
members only club which offers luxury vacation ownership at more than 50 properties across
the United States.
Although their variety of hotel classes and star-ratings appeal to most markets, Hilton
Worldwide mostly targets those in the middle to upper class, by recognizing rising expectations
Hilton’s innovative approach has led to such industry standards as televisions in guest
rooms and environmental certifications for hotels. Other industry firsts accredited to Hilton are
the multi-hotel reservation system, the concept of franchising hotels and the popularity of airport
hotels. They also pride themselves on being the “first global hospitality brand to enter many
developing and emerging market economies.” (Hilton Worldwide)
The Hilton Mission “To be the preeminent global hospitality company – the first choice
for guests, team members and owners alike” (Hilton Worldwide) as well as their Values -
Hospitality, Integrity, Leadership, Teamwork, Ownership, Now (Hilton Worldwide) demonstrate
their commitment to service and their desire to be thought of as an industry leader by
customers, employees and owners.
1.2 COMPANY GOALS
Currently, Hilton Worldwide has hundreds of projects in development around the world,
mainly in Asia. They manage natural resource use and maximize economic value by utilizing
both global and local experts for each of their hotels.
The revenue management consolidated centre (RMCC) uses technology developed
specifically for Hilton Worldwide to set price and inventory strategies by analyzing past, current
and future trends.
RMCC delivered market share growth for all participating hotels combined in each of the last 5
years, '06 to '10. Through Q3 2011 a sample of 100 hotels has achieved over 13% market share growth
since entering the RMCC. (Hilton Worldwide)
Hilton’s goals in respect to Sustainability highlight their commitment to “fostering
economic growth and community involvement where we live and work around the world.” (Hilton
Worldwide) and their Sustainability Policy covers such items as complying with local, national
and international legislation, influence land use in harmony with nature and construction,
supporting initiatives within the local community and focusing on energy efficiency, C02
reduction, water efficiency, waste reduction and renewable energy.
Hilton worldwide believes in promoting cultural exchange and encouraging learning
about local history, traditions and way of life by guests, employees and the general public. Each
of their properties is built to reflect local heritage and culture and emphasizes native cuisine
using locally sourced ingredients. Heritage Tours, aimed at educating travelers about local
history and traditions, are offered at some of their properties around the world.
2. BALI, INDONESIA
2.1 DESCRIPTION OF COUNTRY REGION
Indonesia is a Southeast Asian country comprised of over 17,000 islands that are
divided up into 33 provinces. The islands that make up Indonesia border on each side with a
number of countries including: Papua New Guinea, East Timor, Singapore, Philippines, and
For the purpose of this assignment, we will be focusing on the ‘Island of the Gods’,
otherwise known as Bali. It is located in the region of the lesser Sunda province of Indonesia.
As of 2010 the population of Bali was 3.9 million with 93% of the population practicing the
Balinese Hinduism religion. The most widely spoken languages in Bali are Balinese and
The climate of Bali is very humid, with frequent rain showers mostly lasting from
November to April. The peak season for tourism in Bali runs from July to September, when the
weather is most likely to be on the dryer side.
Bali is rather small, covering an area of only 5,632 sq. kilometers. It measures just 90km
along the north-south, and less than about 140km from East to West (Bali Guide). This makes it
a perfect destination to explore on day tours, and also contributes to the reason for the regions
average length of stay being short. According to the consulate general of the republic of
Indonesia, the foreign tourist’s average length of stay at star-rated hotels was 2.96 days, and
the domestic tourists 3.48 days. The range of accommodation that both types of visitors are
staying at range from 1 to 5 star, with a majority of them choosing 4 star accommodation. There
are an abundance of hotels opening and already standing for travelers to choose from, which
could pose a threat to future occupancy rates, however presently it seems to be keeping up with
the international market.
Bali is comprised of a few different regions, each offering unique geographical sites and
attractions making it an ideal destination for sustainable tourism development.
Located in the center of the island is the region of Badung, famous for the ‘Nusa Dua’,
where Bali’s luxury hotels mainly are found.
Next is Bangli, which has no beaches and is mostly made up of mountains, lakes and
rice fields. Ancient temples are also found in this region. This makes it an ideal location for
sustainable tourism development. The country could feature small grouped excursions into the
central regions of Bali to experience the authentic cultures and traditions of Balinese peoples.
Along the North runs Buleleng, a region containing a chain of volcanoes that extends
across the island for about 150 km.
Gianyar, a central region south of Bangli holds some of South East Asia’s most ancient
artifacts and temples. Many goldsmiths and silversmiths are located in this region, and
contribute to the art market found here which exports its crafts and jewelries worldwide. These
attractions are beneficial for Bali, because they provide exciting things for visitors to enjoy when
visiting the region.
Jembrana is known for being Bali’s “wild west” because of its rocky attributes and low
population. It is considered a vital area for agricultural development, and also the home to many
endangered species. Tourists enjoy diving and snorkeling in this area, and also hot springs.
While Bali is rich with culture and historical attractions, the island offers much for visitors
to see and experience while spending time there. The unique aspect of this region is that there
are such a broad range of activities that Bali’s target market is a rather large demographic. It
ranges from a backpacking student to a luxury tourist to the business traveler. Bali has recently
been an emerging destination for curious travelers and observed to be gaining more exposure
and recognition over the past few years. Its breathtaking beaches, volcanic mountains, lush
tropics and serene rice fields makes it easy to understand why it is recognized as the most
famous island in Indonesia.
The prime attraction to the island of Bali is the picturesque beaches, which have become
quite populated with different ranges of accommodations. Most of these properties offer water
sports such as banana boating, parasailing, jet skiing, and surfing which draw quite a bit of
tourist attraction, however it is these regions where one can quite likely begin to observe the
harmful effects tourism has on the delicate aquatic life.
Other recreational activities include white water rafting, cycling in the region of Ubud
(made famous by Elizabeth Gilbert and written about in her novel Eat, Prey, Love) and mountain
climbing to visit temples.
The country offers diverse Eco tours as well to their various national parks, some of
which play an essential role in the sustainability image Bali tries to represent. The Bali Barat
National Park in western Bali, for example, was founded in 1941 with the mission to protect the
Bali Starling and the last of the wild banten, from which most of the Balnese cattle descend.
Health and wellness has become an essential part of modern day life, and spa going has
become a key industry in Tourism and Travel. Those looking for therapeutic practices will often
travel far and spend top dollars to find services and facilities which are only offered in select
locations. Because of its rich culture and ancient traditions, Bali has become one of the most
visited places for spa-goers in South East Asia today. There are an abundance of luxury hotels
that feature unique services and facilities for guest pampering and rejuvenation. (Indo Travel)
With the rise in popularity of this industry in North America, it has allowed Bali to attract the
high-class traveler, looking for a unique cultural experience that cannot be found elesewhere.
2.2 CURRENT STATUS AS A TOURIST-RECEIVING DESTINATION
Travel and Leisure Magazine awarded Bali the Best Island award in 2010 and in 2011 it
ranked it 2nd behind Santorini, Greece. Foreign tourists prefer the safety of Bali to the larger
Muslim dominated islands of Indonesia. (Bali Statistics and fact)
A boom in tourism to Bali can be largely credited to the success of the 2006 best-selling
memoir book by Elizabeth Gilbert - Eat, Pray, Love, and the 2010 theatre release of the film
starring Julia Roberts based on the book, part of which takes place at Ubud and Padang-
Padang Beach in Bali. Tour companies and resorts launched packages based on the book and
movie, offering luxurious pampering, yoga classes and self-discovery.
In 2010, Bali exceeded their target of 2.3 million visitors. According to the Oxford
Business Group, the Australian tourist numbers to Bali increased by 50% for the first seven
months of 2010, which is significant given the importance of the Australian market to the regions
Most tourists to Bali come from Australia and Asia. Since 2011, Australia tops the list of
tourists to Bali, while China is the second-largest supplier with Japan in third place. Global hotel
Performance Results for January of 2011 read that for the Southeast Asian regions, three
markets achieved RevPAR increases of more than 20%. Bali rang in at the highest increase
with +27.1 percent. Not only that, but Bali experienced the only double-digit occupancy increase
rising 10.1 percent to 73.9 percent. And for Average Daily Rate Bali also showed an increase,
rising +15.4 percent. (Hotel Marketing) - These numbers show that tourism to Bali continues to
climb into 2012, and according to another blog, a total of 253,286 foreign tourists visited Bali in
January of this year. This shows an increase of 21% from the same period last year. This
creates amazing opportunities for Indonesia’s economy, however it poses a serious threat on
the nature and delicate wildlife that makes the island so unique.
3. POTENTIAL MARKET
3.1 SOCIO-CULTURAL IMPACTS OF TOURISM DEVELOPMENT
Hilton Worldwide operates one resort hotel on the Southern Coast of Bali under their
Conrad luxury brand – The Conrad Bali.
A second Conrad property – The Conrad Ubud Resort and Spa, an 80-villa luxury resort,
is due to open in late 2013.
Some of the key impacts that the Hilton Worldwide global development will have on the
region of Bali are as follows:
Believing that each of their hotels should reflect the local heritage and culture,
and by focusing on preserving the cultural heritage of the communities where
they operate, Hilton Worldwide has infused the unique culture of Indonesia into
the look and feel of their accommodations.
By teaching their guests, team members and the general public about local
history, traditions and way of life, Hilton Worldwide is contributing to inter-cultural
understanding and tolerance.
Hilton Worldwide serves local communities by volunteering time and resources to
address local community needs not only by providing charitable contributions of
food, clothing and shelter, but by also providing educational programs and
knowledge to better prepare communities for disaster, and thus ensuring the
preservation of natural resources and attractions.
By employing local people and sourcing locally, Hilton Worldwide is not only
providing economic benefits but also hopes to strengthen the community and
enhance local tourism.
Along with global cuisine, Balinese and Indonesian cuisine and produce offered
at the resort further introduce guests to the local culture and traditions.
Child trafficking and the sexual exploitation of children is a growing concern for
the travel industry around the world, including in Indonesia. In 2011, Hilton
Worldwide joined other travel industry members worldwide by signing ECPAT-
USA’s Code of Conduct for the Protection of Children from Sexual Exploitation in
the Travel and Tourism Industries. Although almost 1,000 travel industry
members worldwide have signed the Code, Hilton Worldwide was only the fourth
U.S. company to do so, behind Carlson Companies, Global Exchange’s Realty
Tours and Delta Air. (Hilton Worldwide)
3.2 STRATEGIES TAKEN
There are a number of strategies being undertaken to ensure the sustainable
development of the tourism market in Bali. The government makes a noticeable effort to
minimize negative impacts made by tourism on the environment by monitoring the socio-cultural
impact on the region. In order for Bali to successfully develop these strategies, niche markets
must be developed and highlighted in order to create effective sustainable tourism. Bali is
already well on its way of doing so considering that they have many opportunities for these
markets, some of which include: spa tourism, adventure tourism, recreational tourism, eco
tourism and religious pilgrimages.
Such efforts include eco-tours put together by various hotels, which are then offered to
guests in an attempt to influence the way they behave on their vacation in relation to preserving
the nature and culture of Bali. An example of a popular eco-tour can be found at Bali’s
Mangrove Information Centre, which was opened in 2003, with the main purpose being to study
and preserve the island’s costal mangrove trees. The nursery covers 200 hectares, and is
equipped with wooden boardwalk trails and private huts for mediation. Although these efforts
seem small in comparison to the rate at which hotels are being built, there is still hope that Bali
continues to make changes to preserve their unique culture and land.
According to the United Nations Case Study of the Bali Declaration on Sustainable
Tourism Development, the government of Indonesia has an implemented plan of action for this
development. Although the plan is highlighted with strong ideas for moving forward in a positive
direction, the plan’s ‘phase II’ has only been implemented for the years of 2006 to 2012, but
does not address anything beyond these dates.
The Plan implemented by the Indonesian government for Bali highlights five areas:
a) enhancing the role of tourism in socio-economic development and poverty
b) facilitation of travel and development of transport and other tourism-related
c) the socio-cultural and environmental management of tourism
d) crisis and risk management in tourism
e) human resources development in the tourism sector (“Bali Declaration on
Sustainable Tourism Development”)
The government of Indonesia recognizes that although tourism can be an extremely
useful tool for generating income to the region, if not managed and monitored properly it can
have a reverse effect and be rather damaging to the cultural heritage of Bali. For this reason,
the government is expecting to implement programs which will do things like generate local
employment, encourage community involvement, promote native pride and also allow tourism to
flourish while still respecting the integrity of the Bali culture and character. An important way for
the Bali Tourism Board to do is to attempt to control the volume of traffic into the country by
influencing travelers’ behaviour using effective marketing campaigns.
If Indonesia follows through with these implementations properly and with determination,
it will allow future generations to still enjoy not only the environment of Bali but also the delicate
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