Tourist Retention through Development of Superstructure An Empirical

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SAJTH, July 2015, Vol. 8, No. 2
Tourist Retention through Development of Superstructure:
An Empirical Analysis for Destination Sikkim
DEBASISH BATABYAL*
*Debasish Batabyal, Ph.D., Research Fellow, Indira Gandhi National Tribal University, Madhya
Pradesh, India.
ABSTRACT
Tourism as an industry needs state of the art infrastructure and superstructure absolutely for
its own. This need is more realistic when the destination is situated in the Himalaya and
having many attractions with less or no accessibilities. Tourism infrastructure is supply led,
but, later on, converts itself to be demand led and more customized with its essential feature
of meeting the lumpy supply. This article is an extended approach for the retained visit kept
in mind the basic requirements of domestic and foreign tourists in the destination Sikkim.
Destination demand and supply led factors have been identified from the earlier literature for
providing or improving such tourism infrastructure as may be found relevant. Basic
demographic information of tourists have been tested through simple linear regression and
only interested tourists are asked for simple ranking for other twelve factors most of which
are favouring superstructure development. Here, tourists’ opinions are measured through the
non parametric test Kendall’s coefficient of concordance, separately for domestic and
international tourists. Two hundred one questionnaires have been found suitable out of four
hundred seventy five collected from four district head quarters Gangtak, Namchi, Mangan and
Pelling, representing East Sikkim, South Sikkim, North Sikkim and West Sikkim respectively.
This relationship is expected to identify and contribute to the area of investment and its
viability to destination development strategy. The article is a viable and realistic approach to
the decision of developing/investing in capital intensive superstructure.
Keywords: Psycho centric Tourist, Infrastructure, Regression, Superstructure,
Kendall’s coefficient of concordance.
Introduction
Sikkim is a small hilly State bounded by stretches of Tibetan plateau in the
North, the Chumbi Valley, and the kingdom Bhutan in the East, the kingdom of Nepal
in the west and Darjeeling (West Bengal) in the South. Its latitude is 27 030' north
and the longitude is 88030' east. Sikkim is famous for scenic valleys forest, snow clad
mountains, magnificent Buddhist culture and heritage and peace-loving people.
Though small, the environmental, social and cultural diversities are not so. Some
scholars believe that the word Sikkim involves Nepalese dialect and it refers to a
‘new place’ or the term has been derived from a Sanskrit word which means a
‘mountain crest’. The people of Sikkim have ethnic diversity. The Bhutias came from
Tibet, the Lepchas were the aboriginal community, and the Nepalese came from
Nepal. When Sikkim was an independent state and faced many invasions by its
neighbouring countries and the king took the help of the British India and, later,
© South Asian Journal of Tourism and Heritage
44
DEBASISH BATABYAL
gifted some of its region including Darjeeling to the British Government. Sikkim is
politically divided into 4 Districts, North (Mangan) being away from large market of
West Bengal but with immense tourism potentialities. The capital city of Gangtok
enjoys the development of infrastructure, all modern civil amenities, access to
health and education facilities and employment opportunities compared to all other
3 Districts, South (Namchi) West (Gyashing) and East (Gangtok). North Sikkim is
having idyllic scenic beauties with mountain stretches, East Sikkim receives
maximum number of tourists and attractions are Gangtak, Rumtek, Somogo Lake on
the way to Nathu La. South Sikkim is famous for Culture and Heritage with
Samudraptse. Pelling is situated in West Sikkim from where the majestic
Kanchendzonga is seen with its vibrant look. Now this 22nd Indian State (joined
Indian Union in 1975) has Over 81% of the total geographical area under the
administrative managerial control of the Ministry of Environment and Forest,
Government of India. Over 45% of the total geographical area of the state is under
tree cover and nearly 34% of the geographical area is set aside as protected area
network in the form of national park and wildlife sanctuary. The basic statistics of
flora and fauna are given here under. Besides, the State is having a wide range of
species ranging from one hundred forty four mammals, five hundred fifty birds, six
hundred fifty butterflies and moths, five hundred fifty orchids to over four thousand
species of flowering plants and three hundred ferns and allies (Economic Survey,
Govt. of Sikkim; 2006-07). The maximum summer temperature 280C and minimum
winter temperature is 00 C. Sikkim has a variety of mineral resources including coal,
limestone, iron ore, graphite, pyrite etc. The temperature in the bottom of the
valleys (up to 600 meters) situated at lower elevations, particularly during
summers, are similar to the monsoon type of climate. The temperature starts falling
between 600 meters and 2000 metres above sea level and the place enjoys cool
temperature climatic conditions and further up (2000 metres to 3000 metres) it is
cold temperate climate. Arctic type of climate is found above 5000 meters. Sikkim is
ecologically a fragile region. The state has the responsibility to conserve its rich
biological diversity that includes coexistence and protection of over 5000 species of
angiosperm (one third of the total national angiosperms). Again this place has multiethnic communities. So the need for ecological, cultural, and social diversities is not
only essential but imperative as well. All these natural, cultural and social resources
are directly contributing to the unique selling proposition (USP) of tourism
development and marketing. NH-31 is the life line of Sikkim connecting the state
with Siliguri of West Bengal and Assam indirectly. The state is connected by rail and
helicopter services with the nearest rail head in New Jalpaiguri (about three hours
by road) Bagdogra airport in West Bengal.
TOURIST RETENTION THROUGH DEVELOPMENT OF SUPERSTRUCTURE
45
Figure 1: Domestic and Foreign Tourist Arrivals in Sikkim
Source: Sikkim Tourism Development Corporation, 2014
Arrival statistics of domestic and international tourists for last 23 years ( since
1991) has clearly indicated the dominant position of domestic tourism compared to
its foreign tourist arrivals. The consequent effects of earthquake for two consecutive
years of 2011 and 2012 resulted in a down fall and even a negative growth in overall
arrivals in Sikkim.
Review of Literature
According to Pearce (1992), destination is a combination of products and
services available in one location that drew visitors from beyond its spatial confines.
By implication, it was essential to recognize the destination as an entity whose
component parts are interdependent whereby a change in one brought about
ramifications for all of the others. There were different studies that analyzed the
elements that influenced the performance of the destination. Smith (1994, p. 175)
defined a tourism region as ‘a contiguous area that was explicitly delineated by a
researcher, planner or public agency as having relevance for some aspect of tourism
planning, development or analysis’. So, a destination zone was considered one type
of regionalization based on an inventory of qualitative characteristics. To define a
destination zone was a matter of specifying the characteristics a region and then
identified the areas that met those criteria (Smith, 1995). Past empirical studies in
the fields of both marketing and tourism confirmed the existence of a strong
relationship between overall customer satisfaction and the intention to return and
46
DEBASISH BATABYAL
between overall customer satisfaction and the intention to recommend (Zeithaml,
Berry, & Parasuraman, 1996).
The Tourism Policy 1997 exhibited a belief that the potential of the tourism
would be determined by the income levels of inhabitants and was basically a leisure
industry not requiring the attention of the planners and administrators. According
to this Policy, the belief was based on an information gap that systematically
constrained the development of tourism in India over the years. National Action
Plan for Tourism which was presented in the Parliament on 5th May 1992 proposed
to achieve different types of tourism products, continual growth of tourism
infrastructure, effective marketing and promotional efforts in the overseas markets
and removal of all impediments of tourism. The Action Plan could not specify the
infrastructural requirements and the investments needed to meet the targets and
the sources of funding for the same. The Tourism Synergy Program consisting the
activities and infrastructural components to be provided by the various agencies
including the private sector and State Governments was thus prepared in 1993. It
was further modified and converted into a ‘National Strategy for the Development of
Tourism’ during 1996. These documents were evident for realizing the importance
of tourism and ensuring a consensus on the developmental needs. It also
contributed positively to all the infrastructural departments in a coordinated
manner and ensured higher plan allocation and introduction of new innovative
schemes for accelerated development and growth of tourism. The article
‘Development of Tourism in Goa’ written by Kamath U.D. (1996) explained all round
development approaches for Goa in which he evaluated attraction features,
seasonality, tourist arrivals, diversification of markets, infrastructure ( mainly
transportation and accommodation), basic amenities and all the sincere efforts
made by the government and other government owned authorities. Gunn (1979)
developed a list of criteria to define tourist destination zones and such criteria were
a set of cultural, physical and social characteristics that created a sense of regional/
destination identity, adequate tourism infrastructure, a set of attractions and
potential attractions, potentiality to support tourism planning agency and
accessibility.
According to Diamond (1977, April), destination strategies can be of four types.
These were - turnaround strategy, sustainable growth strategy, incremental growth
strategy and selective tourism strategy. Turn around strategic approach was
resource intensive, demanding a public sector lead and backing from both the
industry and residential population. Sustainable growth strategy was less dramatic
than turnaround strategy and relied on gradual replenishment of declining markets
by seeking out new areas of market potential. However, the original market, though
reducing was still nurtured and maintained. This was more of a marketing-led
TOURIST RETENTION THROUGH DEVELOPMENT OF SUPERSTRUCTURE
47
approach with lower levels of investment. Incremental growth strategy on the other
hand sought a new market and product development was phased over a number of
years through test marketing and development projects. Selective tourism strategy
relied upon accurate indication of new growth markets. According to him the most
appropriate strategy for each resort/destination was dependent on a variety of
factors. These were- estimating market, stage in the product life cycle, competitive
position of the resort, political and community support, attitude of the tourism
industry, available investment and public funds. Miossec (1977) theorized that the
development process took an evolutionary form (although not using that term) and
depicted the development of infrastructure and facilities in destination areas,
including the coalescing of canters and the expansion of transportation networks.
Lundgren (1973, 1983) evolved similar ideas exhibiting the patterns of tourist
development in the Laurentian area of Canada and elsewhere, although his
emphasis was squarely on the transportation element. An evolutionary approach
was also implicit in Lundgren’s models and theories, where each spatial expansion
of development is based on the infrastructure and facilities existing at the time,
which are in turn superseded, and become either redundant or converted. Chavan,
R.R.& Bhola, S.S.( 2014) outlined in their article ‘A Perceived Image of Hill Stations of
the Satara District, Maharastra-by Domestic Tourists’, the tourist satisfaction with
existing tourist amenities at hill stations of Maharashtra Mahabaleshwar and
Panchgani located in Satara district and to understand the tourist pattern by means
of their demographic profile. They set hypothesis kept in mind the relationship
between occupation and perception of tourist towards importance of service and
amenities. Their study further examined the relationship between occupation and
other tourist details viz. tourist travel pattern, purpose of visit, mode of travel,
average length of stay and stay arrangement. In this study, tourist have showed
their dissatisfaction only towards air and rail facility and as well felt least important.
The result of hypotheses testing reveals that tourists are not satisfied with all
available tourist services and amenities. Tourist occupation and purpose of visit,
tourist travel pattern, ‘mode of travel used to reach’, average length of stay, stay
arrangement, and ‘source used to know the destination’ are independent variables.
There was an weak association found between occupation and importance of tourist
services and amenities but the results raised the scope for further researches as to
confirm the impact of psychological and economical factors in deciding tourism,
sustainable tourism development at hill station and to analyze trend of the tourist
arrival at hill stations.
48
DEBASISH BATABYAL
Objectives of the Study
The objectives of the study are To measure the relationship between future visit and type of tour, income of
tourists, occupation and other demographic factors for destination Sikkim.
 To identify and measure important superstructural1 factors to direct the
investment and destination development policy for Sikkim.
Data Collection Methodology and Hypothesis
For collecting the data from the primary sources, a set of structured
questionnaire is made for tourists visiting all four districts of Sikkim. The districts
headquarters are found to be suitable for conducting survey. Gangtok, Namchi,
Pelling and Mangan were chosen as representative places for East, South West and
North Sikkim respectively. A total of 475 customers are contacted, and the overall
response rate was 42.32% (201 completed, usable questionnaires). As the data
collected with an ordinary ranking (e.g. 1 being the most important, then 2 and so
on) kept in mind its simplicity for tourists, non parametric Kendell’s coefficient of
Concordance is used along with the simple linear regression. In linear regression,
data are modelled using linear functions, and unknown model parameters are
estimated from the data. Such models are called linear models. Most commonly,
linear regression refers to a model in which the conditional mean of y given the
value of X is an affine function of X. Less commonly, linear regression could refer to a
model in which the median, or some other quartile of the conditional distribution of
y given X is expressed as a linear function of X. Like all forms of regression analysis,
linear regression focuses on the conditional probability distribution of y given X,
rather than on the joint probability distribution of y and X, which is the domain of
multivariate analysis. Linear regression was the first type of regression analysis to
be studied rigorously, and to be used extensively in practical applications. This is
because models which depend linearly on their unknown parameters are easier to
fit than models which are non-linearly related to their parameters and because the
statistical properties of the resulting estimators are easier to determine. Linear
regression has many practical uses. Most applications of linear regression fall into
one of the following two broad categories viz. (i) If the goal is prediction, or
forecasting, linear regression can be used to fit a predictive model to an observed
data set of y and X values. After developing such a model, if an additional value of X
is then given without its accompanying value of y, the fitted model can be used to
make a prediction of the value of y. (ii) Given a variable y and a number of variables
X1, ..., Xp that may be related to y, linear regression analysis can be applied to
quantify the strength of the relationship between y and the Xj, to assess which Xj
may have no relationship with y at all, and to identify which subsets of the Xj contain
redundant information about y. Linear regression models are often fitted using the
least squares approach, but they may also be fitted in other ways, such as by
minimizing the “lack of fit” in some other norm (as with least absolute deviations
1
Tourism related infrastructure
TOURIST RETENTION THROUGH DEVELOPMENT OF SUPERSTRUCTURE
49
regression), or by minimizing a penalized version of the least squares loss function
as in ridge regression. Conversely, the least squares approach can be used to fit
models that are not linear models. Thus, while the terms “least squares” and linear
model are closely linked, they are not synonymous. Given a data set
of n statistical units, a linear regression model
assumes that the relationship between the dependent variable yi and the p-vector of
regressors xi is linear. This relationship is modelled through a so-called “disturbance
term” εi — an unobserved random variable that adds noise to the linear relationship
between the dependent variable and regressors. Thus the model takes the form
where ′ denotes the transpose, so that xi′β is the inner product between vectors xi
and β.
Often these n equations are stacked together and written in vector form as
 x1'   x11  x1 p 
 1 
 y1 
 1 
  

 
Where
 
 
y  :  , X  :        ,   :  ,   : 
y 
 
x ' x  x 
 p 
np 
 n
 n
 
 n   n1
The study advocated and used the linear regression model for a composite
measure contributing to the future visit and significant direction to the development
and management of tourism in Sikkim.
Kendall’s Coefficient of Concordance, a non-parametric test, determines the
degree of association among several (k) sets of ranking of N objects or individuals. It
is considered an appropriate measure of studying the degree of association among
three or more sets of rankings. This descriptive measure of the agreement has
special applications in providing a standard method of ordering objects according to
consensus when we do not have an objective order of the objects. The basis of this
test is to imagine how the given data would look if there were no agreement among
the several sets of rankings, and then to imagine how it would look if there were
perfect agreement among all the sets. In our study, the consistency of ranks
(Maximum disagreement=0 and Minimum is 1) were tested several times with the
appropriate P value. While computing Kendall’s Coefficient of Concordance (W), the
mean of rank (Rj) was taken into note of with the appropriate consistency.
Here, s 
W
 ( Rj  Rj)
2
s
1k ( N 3  N )
12
2
k=no. of sets of rankings i.e. the number of respondents
N=number of objects ranked
1
= maximum possible sum of square deviations i.e. the sum s
12k 2 ( N 3  N )
50
DEBASISH BATABYAL
which would occur with perfect agreement among k rankings.
Any investment depends on its pay back over the coming years. In any service
sector, customer retention is found very important and tourism is not exception to
that. So, this study has separately identified and analyzed the development
potentiality of superstructure, right from its core competency, i.e. future visit to be
made by existing tourists visiting Sikkim. The only hypothesis of the study has
expanded from apparent demand led demographic factor to a number of supply led
institutional factors. Following is the null hypothesis (H0) considered here in the
study.
H0: The future visit of tourists depends on the institutionalized and supply side
infrastructural and superstructural development and not on their income, life cycle
stage, occupation and such other internal factors as the destination is mainly for
leisure tourism.
Data Analysis and Discussion
Out of 201 respondents in Gangtak, Mangan, Pelling and Namchi, about 30%
tourists are female tourists and others are male. The majority of the income group of
domestic tourists are found to be in the slab of Rs. 30000 above. The second
important feature is the second largest number of respondents immediately
preceding the earlier slab i.e. 20,001-30,000. It is also found that the segment of
lower income group is interested to travel the traditionally known leisure tourist
destination Sikkim. The majority of the income level of foreign tourists are found to
be above Rs.1,00,000 and it is followed by 80,001-1,00000 and 60,001-80,000
respectively. Sikkim receives a considerable number of independent tourists even
from the domestic segments and there is a new trend to avail of partial inclusive
package of transportation and accommodation units only. Independent tourists
don’t book any facility or service in the destination a priori and can avail of all
immediately after reach.
Figure 2 : Types of Tour in Sikkim
Source: Field Survey, 20013-2014
TOURIST RETENTION THROUGH DEVELOPMENT OF SUPERSTRUCTURE
51
Majority of tourists travel Sikkim in group and avail of all inclusive tour
packages till date. The above diagram expresses the further scope for measuring the
involvement of tourism industry with recent changes. Sikkim is found to the
destination of service holders who are associated either in public or private sectors
in India or abroad. Second important occupational group is the businessmen who
are self employed and travelling either with their family or for the core business
purpose. Third group is either students or scholars or house wives.
Figure 3: Purpose of Visit in Sikkim by Domestic and International Tourists
Source: Field Survey, 20013-2014
A general influx in either case of domestic and international tourists is found in
case of ecotourism and to some extent adventure tourism. So, there is an immense
growth potentiality for ecotourism, adventure tourism and special interest tourism.
The market for special interest tourists has been growing more with the foreign
counterparts. There is also a small influx in pilgrimage and Buddhist cultural
affiliation. Through their present demographic characteristics and product choice,
significant future requirements for infrastructure and superstructure are
interpreted. Now the factor ‘future visit’ has been considered to be dependent on
income, gender, occupation, marital status and type of tour. So, the model was given
here under.
FV= I+ O+T+ G+ M+u
Here, FV= Future visit for tourists visiting Sikkim, M= Marital status of tourists,
O= Occupation of tourists G=Gender of tourists, I=Average monthly income of
tourists, T= Type of tour availed of by tourists and u is the constant. Considering the
relationship among these variables two regression coefficient tables are prepared
for domestic and international tourists. Following result was computed for the
model.
52
DEBASISH BATABYAL
Table 1: Relationship between Future Visit and Income, Occupation, Gender,
Marital Status Type of Tour (of Domestic Tourists)
Model: Linear Regression
Coefficients
t
Sig.
.213
5.982
.000
-.048
.056
-.855
.394
Occupation
.104
.040
-2.594
.010
Gender
.060
.059
1.018
.310
Average Monthly Income
-.031
.020
-1.563
.120
Type of Tour
.025
.025
1.002
Note: Statistical analysis has been made using SPSS statistical Package,
Source: Field Survey, 20013-2014
.318
B
Std. Error
(Constant)
1.272
Marital Status
The apparent idea that the tourists will visit the same destination if
infrastructural and superstructural facility increases has been rejected as
occupation is found to be positively associated with the future visit (seen in table 1).
No relationship is evident with the institutional factor types of tour. Again, the
regression model ( shown in table 2) for the foreign tourists is more clear as marital
status, occupation are positively related with the future visit along with the negative
association with the factor gender. So, considering the results of both the table 1 &
table 2 it is said that the null hypothesis is contradictory.
Table 2: Relationship between Future Visit and Income, Occupation, Gender,
Marital Status, Type of Tour (of Foreign Tourists)
Model: Linear Regression
Coefficients
t
Sig.
.444
.759
.455
.529
.109
4.852
.000
Occupation
.155
.063
2.481
.020
Gender
-.192
.104
-1.850
.076
Average Monthly Income
-.048
.046
-1.051
.303
Type of Tour
-.038
.060
-.636
Note: Statistical analysis has been made using SPSS statistical Package,
Source: Field Survey, 20013-2014
.530
B
Std. Error
(Constant)
.337
Marital Status
TOURIST RETENTION THROUGH DEVELOPMENT OF SUPERSTRUCTURE
53
In another study for the same purpose, twelve explanatory variables are ranked
by the tourists who are agreed upon their future visit or retention. Agreed tourists
are asked to rank the twelve issues what they did not find in the present trip or
emerged as a constraint during their vacation. Better income opportunity is the only
factor asked with all the institutionalized issues carefully selected from the review
of literature for other hill stations in India and abroad. The mean of ranks and
consequent ranks in the study (table 3) shows that the majority of tourists visiting
Sikkim are price sensitive except their foreign counterparts.
Table 3: Mean of Ranks Showing the Preference of Travel to Sikkim
Domestic
Foreign
All Tourists
Tourists
Tourists
Factors
Mean of
Mean of
Mean of
Ranks
Ranks
Ranks
ranks
ranks
ranks
Better income opportunities
3.16
1
3.38
1
4.38
4
Reasonably priced tourist
3.67
2
3.72
2
3.84
2
products
Change in attitude of local
8.59
10
8.32
10
9.72
12
people towards tourists
Trained staff and their
6.82
7
6.80
7
7.66
9
friendly treatment
Information about availability
of aids/equipments at
6.05
5
5.95
5
6.58
6
attractions
Safety support system
6.64
6
6.66
6
6.97
7
Availability of accessible
4.03
3
3.93
3
3.59
1
vehicles for travel
Accessible pathways at
7.66
9
7.60
9
7.56
8
attraction premise
Clear signage at all major
9.27
11
9.33
11
8.50
10
points
Ramp & elevators at
7.20
8
7.32
8
6.31
5
attractions
Effective communication aids
5.19
4
5.37
4
3.88
3
Easily accessible tour
9.72
12
9.63
12
9.02
11
operators
Note: Statistical analysis has been made using SPSS statistical Package,
Source: Field Survey, 20013-2014
54
DEBASISH BATABYAL
Though foreign tourists don’t prioritize ‘better income opportunity’, yet it is the
most important for future travel to Sikkim for the maximum tourists. The rank for
reasonably priced tour products is second for all tourists and there is no difference
in opinion between domestic tourists and their foreign counterparts. So, the null
hypothesis is further contradicted with the two above ranks. Most of the foreigners
travelling to Sikkim are alternative/adventuresome/special interest tourists but
advocated to or emphasized on basic infrastructure such as ‘availability of
accessible vehicles for travelling in or around Sikkim’ (ranked one), availability of
effective communication aids like better telecommunication facility, postal services,
cyber café, information kiosk etc. (ranked three) and ramps & elevators at
attractions (ranked five). The rank for availability of effective communication aids is
just four for domestic and all travellers. Instead of diluted super structural or
tourism related infrastructural facilities foreign tourists expected little more
infrastructural facilities along with the moderate fulfilment of their associated
derived demand for tourism products and services.
Conclusion
Majority of the tourists are found to be sensitive towards their demographic
issues and not essentially guarantee for their retention with the state of the super
structural development. After visiting the place, most of the tourists find a
significant number of tourists travelling without travel agents and tour operators
and directly with the principal suppliers. So, most of the tourists ask for a
reasonably priced tour products, not just with inflated price and below quality
services. The majority of domestic tourists want better income opportunity for
availing of more facility and future trip, though foreign tourists are questioning for
the accessible vehicles and communication and information facility around the
State. Also, foreign tourists are not asking for the state of the art superstructure and
emphasize more on moderately priced, hygienic food and lodging. Altogether, as
Sikkim is found to be a price sensitive destination and as such investment and
development of superstructure will not be a profitable venture until and unless it
breaks the low ebb of low-spending tourists. But, accessibility to information and
transportation facility with high frequency, particularly in remote and lesser known
places is immediately needed as the state has initiated new circuits.
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