Hospitality Management in New York City: Policies, Perspectives and Butler's Curve

This article discusses the policies, environmental, economic and socio-cultural perspectives of hospitality management in New York City. It explores Butler's Curve and its stages of development, including exploration, involvement, development, consolidation, stagnation and decline or rejuvenation. Recommendations are provided for improving policies and engaging the community and stakeholders.

Running Head: HOSPITALITY MANAGEMENT 1
Hospitality Management

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Table of Contents
Part A...........................................................................................................................................................3
Introduction.................................................................................................................................................3
About the Policies........................................................................................................................................4
Environmental Perspective......................................................................................................................5
Economic Perspective..............................................................................................................................5
Socio-cultural Perspective.......................................................................................................................7
About Theory (Butler’s Curve).....................................................................................................................8
Exploration..............................................................................................................................................9
Involvement.............................................................................................................................................9
Development...........................................................................................................................................9
Consolidation...........................................................................................................................................9
Stagnation...............................................................................................................................................9
Decline or Rejuvenation........................................................................................................................10
Recommendations.....................................................................................................................................10
Policies...................................................................................................................................................10
Agenda..................................................................................................................................................10
Conclusion.................................................................................................................................................11
Part B.........................................................................................................................................................12
Introduction...............................................................................................................................................12
History of Building.................................................................................................................................12
Current Function....................................................................................................................................12
Critical Analysis of Impact on its surroundings..........................................................................................13
Social Impact.........................................................................................................................................13
Economic Impact...................................................................................................................................14
Theory (Gunn’s Theory).............................................................................................................................15
A Tourist or Human Element.................................................................................................................15
A Nucleus or Central Element................................................................................................................16
A Marker or Informative Element..........................................................................................................16
Conclusion (Future of Historic Building)....................................................................................................17
References.................................................................................................................................................18

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Part A
Introduction
Nowadays, tourism and leisure places are having very much priority everyday across the world.
As the finance and people are getting mobile in tourism and leisure industry, strategic planning is
becoming very important for the development of tourist places. Today, tourism is one of the
major wheels of country’s economy. The countries are shifting from traditional processes like
firms, factories and industry; they are giving preferences to non-industrial places and activities.
This is the reason that tourism and leisure is considered as the most significant sector. For this
discussion, New York City is chosen as a tourist place. New York City (The City of New York)
is the most populous city in the United States of America. This is known as global power city
that can be described exclusively as financial, media and cultural capital of the world. It
exercises a huge impact on entertainment, research, education, commerce, technology, art,
tourism, sports, fashion and politics. It is the part of UN WTO (United Nations World Tourism
Organization) (Maitland and Newman, 2014).
New York City is important in the development of American tourism as it is one of the greatest
cities all over the world. It is always a whirlwind of activity with popular places at every turn. In
the year 2017, this city received an 8th successive yearly record of around 62.8 million tourists.
The major reason behind this is that there are various famous destinations like Statue of Liberty,
Empire State Building, Coney Island, Times Square, Central Park, Broadway theater
productions, Ellis Island, the Financial District, sports stadiums, museums, premium shopping
along Madison and Fifth Avenues and different events like Tribeca Film Festival and
performances in Central Park at Delacorte Theater and Summer-stage (Law, 2018). The
economy of this county is highly dependent on the travel and tourism activities. It is under the
top five tourist destinations all over the world.

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Figure 1: 3 Year Forecast of Top 5 Tourist Destinations
(Source: Maitland and Newman, 2014)
It is a growing and substantial component of this state’s economy in US. In the city, an
international visitor spends about $1600 per trip in comparison to just $400 spent by the
Americans. Recently, tourism spending in New York has increased by 5.4% to $62.5 billion (The
Weissman Centre for International Business, 2018). The data shows that New York’s economy is
highly dependent on travel and tourism. The current scene of state’s tourism is that it has
generated nations for foreign visitors to New York City were Brazil, United Kingdom, China,
Canada, Australia, Germany, France, Mexico, Japan and Spain. It has social, economic and
environmental impact in the area.
About the Policies
In New York City, there is a significant growth in the travel and tourism as there is an increase in
the number of visitors from international countries. This state is continuously attracting travellers
from United States and across the world. As a foundation of New York’s economy, tourism
directs assists over 914,000 jobs and produces billions of dollars spending across the county
every year. The UNWTO has created and implemented various policies and programs to sustain
and grow tourism in the county (Jarvis, Stoeckl and Liu, 2016). These policies can be divided in
three perspectives which are given below:

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Environmental Perspective
In United States, ecotourism activities may be subject to the policies and regulations at different
levels of government depending on the status and location. In New York, the management and
land utilization activities are controlled at state level. The regulatory authority in the state has
imposed various local and state policies related to ecotourism. These policies are implemented in
the form of code of conduct, best practices, environmental protection measures, zoning, entrance
fees, fines for inappropriate disposal of wastage and effective utilization of eco-tourism facilities.
In this state, the regulations generally seek to reduce the environmental effects from the presence
of tourists in area like foot traffic, noise, trampling, and collection of animal and plant materials.
The country has introduced its environmental policy in the year 1960 (Alonso and Liu, 2013).
UNWTO has come with different acts and regulations like Clean Water Act, Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA), Endangered Species Act
etc. One of the major policies is CERCLA that was passed by Congress in the year 1980. It is the
policy that is aimed to reduce the hazardous pollutants at uncontrolled waste sites. This initiates
different clean-up projects at tourism destinations in New York City and require the responsible
tourists to pay for costs of cleaning. This policy is very effective in the city as it improves and
protects the environment and natural resources. It has various authorities which impact all the
activities consisting of eco-tourism operations, waters, private and public lands of US
concessions (Adriana, 2009). The authority is able to manage and protect tourism destinations
like parks, national forests, wildlife refuges etc. Same as this policy, another NTO like European
Travel Commission has also introduced a policy that includes highest environmental standards
that assists green the economy, protect the natural resources and preserve the quality and health
of people’s lives.
Economic Perspective
Travel and tourism operations constitute a significant part of the economy of New York State.
National Travel and Tourism Office in US is the major source of economic data on foreign
visitation to New York. It provides policies to assist the tourism and travel exports in the state
(Mowforth and Munt, 2015).

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Figure 2: Tourism spending on New York in 2017
(Source: The Weissman Centre for International Business, 2018)
Under economic perspective, the government has introduced fiscal policy that is related to
spending, taxation, stimulus measures etc. In New York, it impacts the tourism investment and
customer spending in travel and tourism activities. Moreover, monetary policy has a significant
impact on the exchange rates that in turn affects the demand of foreign travellers and exchange
earnings from tourism activities. The economic policies of this county supports value added
pricing and heavy discounting that enhances tourism and hospitality to New York. The
effectiveness of this policy can be analyzed by looking at the economic effects of tourism. Last
year, tourists spending generated $43 billion including induced and indirect effects. The city has
sustained 383,385 jobs by tourism and hospitality activities with the total income of $33.1 billion
(Pereira, 2018).

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Figure 3: Economic Impact of Tourism on Economy of New York City
(Source: The Weissman Centre for International Business, 2018)
In contrast to this, European Travel Commission has introduced the policy with the aim of
developing tourism destinations while increasing the tourism’s contribution to the employment
and economic growth of European states. This policy is very much focused on the development
of tourist destinations, hotels and places.
Socio-cultural Perspective
Considering the impact on culture and society’s people, the government has passed various laws
and policies. One of the major policies is Public Health and Safety Policy that protects and
improves tourist satisfaction and destination image. In New York, there are some policies which
are for managing the infectious diseases in livestock and human beings as it can have adverse
impact on access of visitors. In this context, tourism authority has designed the policies to
encourage the people to travel to New York. The city is going under gentrification and it is
renovating the damaged urban neighborhoods by inflow of rich population. In New York City,
the globalization and tourism forces have driven this state to develop. It shows the globalization
of both tourism and culture on the global platform (Barron, 2018). However, these policies are
effective for the health and safety of local and domestic people, but it does not involve the
culture of county. The people are facing different issues due to arrival of increased number of
tourists in the city such as noise pollution, traffic, infrastructure issues, diversity issues,
inequality issues. It indicates that policy under this perspective is not more effective in New

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York City. As compared to this, European Tourism Organization is focused on cultural tourism
so that they can promote the culture and traditions of their own countries. It has cooperated with
the food festivals and fair portals so that they can encourage the food and traditions of European
nations (Dalonso et al, 2014).
About Theory (Butler’s Curve)
The major objective of Butler’s model is to focus on the manner that the tourists in a specific
area develop and grow. Like other industries, the tourism sector is continuously changing and
dynamic. So, Butler’s model is the way to study the tourism possibilities how they are changing
over the time. As per this model, Butler’s model is the graphical presentation of increase in the
number of tourists. It is divided in various stages like exploration, involvement, development,
consolidation, stagnation and decline or rejuvenation stage (Kristjánsdóttir, 2016). The below-
given graph presents the situation of New York City on Butler’s Curve.
Figure 4: Butler's Curve for New York City
(Source: Kristjánsdóttir, 2016)

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Exploration
This is the first stage of Butler’s model that indicates the smaller number of tourists in any
specific area. At this stage, tourism does not have economic and social impact in the county.
New York City was on this stage in the period of 1991-1998. In this duration, the number of
tourists were smallest i.e. 36.4 million that include both local and international visitors. That
time, travel and tourism operations do not have economic and social impacts on domestic people
(Pereira, 2018).
Involvement
It is the second stage of Butler’s curve where the local tourists cover a significant part of total
tourists’ population. At this stage, there was an increase in the number of tourists in any specific
area. This city was on this stage in the duration of 2001 to 2009 when more travellers had arrived
to this state by hearing about its tourist destinations by the word of mouth advertising. In 2009,
the number of tourists was 45.8 in which 37 million were from domestic states. At that time,
there was the development of hospitality and tourism services like hotels, guest houses in New
York (Short, 2017).
Development
Development is the third stage under this model where higher number of visitors which may
exceed the domestic population during the peak season. As the above diagram indicates that
currently, New York City is on this stage. There is the highest number of visitors that can exceed
the domestic visitors in the future (Kristjánsdóttir, 2016). It shows that New York is and has been
emerging since past few years. The city is focused on the development and advertisement of
tourist destinations and attractions.
Consolidation
At this stage, the growth of tourism slower down but the number of international tourists exceeds
the domestic people. In New York, it can happen in the timeframe of next 10 years. There may
be possibility that tourism organizations will focus more on the advertising and marketing
activities.
Stagnation
At this stage, the number of visitors to New York will reach to its peak. There will be
improvement in the carrying capacity. Additionally, there may be different problems like social,

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economic and environmental. It is very important for NTO to focus on the development of tourist
attractions.
Decline or Rejuvenation
At this stage, New York City has two alternatives either to decline or to rejuvenate. The past
situations of this city indicate that it will rejuvenate by using different strategies and policies
(Mason, 2015).
Recommendations
Policies
From the above analysis, it is hereby recommended that the tourism authority in New York City
should focus on improving the policies so that it can provide positive impacts socially,
economically and socio-culturally. Firstly, the NTO should implement the Tourism Indicator
System (TIS) for sustainable management of the tourist destinations in the city. This tool will
support the places in monitoring and evaluating the performance of sustainable tourism.
Considering the socio-cultural perspective, New York needs to develop a policy that engages,
involves and empowers the community and other stakeholders. It should develop the famous
destinations in New York City like Statue of Liberty, Empire State Building, Coney Island,
Central Park so that it can enhance their economic impact on the local people of New York. It
should develop the policies for the infrastructure development which will help the city to
improve the lives of society people (Edgell, 2016).
Agenda
In addition to above policies and regulations, the tourism authority in New York City should
adopt Agenda 21 to develop sustainable tourism. The government and different tourism
companies should follow the steps of Agenda 21 so that they can make the future of New York
tourism more sustainable (The World Tourism Organization, 2017).
UN WTO should follow the below-given steps to make the New York tourism more sustainable
and profitable:
 Enhance the foreign direct investments, partnerships and global cooperation to improve
tourism operations.

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 Conduct different training and development programs which will encourage New York’s
people to take part in the eco-tourism activities. It will engage the local societies in
development of cultural heritage, natural resources and overall environment.
 Help the hosting societies in the management of tourism destinations for their own
benefits.
 Promote the economic activities’ diversification. It will enable the local firms to
participate in development of sustainable tourism (Judd, 2015).
Conclusion
In the limelight of above discussion, it can be stated that New York is the greatest cities of
United States. Some tourists reach there to enjoy the Broadway shows and some reach to shop.
This is the reason that the number of tourists is increasing every year. The above report includes
the discussion about the policies and importance of New York City in context of travel and
tourism. In this city, tourism is the major contributor to its economic growth. It can be concluded
that this city will be able to develop itself by focusing on the tourism operations in the future. By
the development of new policies and implementation of Agenda 21, the government will be able
to have bright future for New York tourism. In the future, there will be development in the
tourism attractions and destinations which will improve the conditions of this “Big Apple” city
effectively.

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Part B
Introduction
Attractions are crucial sub-elements of an overall tourism system, and their study suffers from
lack of empirical foundation and theoretical depth. Tourism attractions are important segments in
tourism market as they play a vital role in building the tourism movement’s geography. They act
as a magnet that attracts more tourists to a particular location. It is essential to conduct the study
and analysis of tourism attractions. This report is focused on analyzing the building that is
situated in Singapore i.e. Lau Pa Sat. It includes the history and functions of the chosen building.
Moreover, there is the discussion about the impact of this building on its surroundings and
people. At the end, different elements of Gunn’s theory (1972) are applied to analyze different
elements of chosen tourist attraction.
History of Building
Lau Pa Sat is a historic building that is located within the Downtown Core in Central Area of
Singapore. This building is also known as Telok Ayer Market. This building was built in the year
1894 and it is governed by National Heritage Board. In the 19th century, Telok Ayer Market was
a wooden building that was situated on the piles over the waters of Telok Ayer Bay (Singapore
Guide, 2018). The name of this market is derived from this place. It is a Malay name “Telok
Ayer” that means “water bay” and coastal road Telok Ayer Street was situated beside the bay
before the land recovery work initiated in the year 1879. The word “Lau Pa Sat” is meant for
“old market” in Chinese language. It is the first market that is built in Singapore as fish market. It
was situated on south bank of Singapore River near Market Street’s north end (Bhati and Pearce,
2017).

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(Source: Singapore Guide, 2018)
Current Function
Currently, Lau Pa Sat Building is functioning as a food center. In this building, there are various
shops like 24 hours Cheers Stores, a tailor, a shoe repair shop and a laundry shop. In the
weekend’s evenings, a live band plays on the stage in middle of market. In the market, there is a
modern food court that caters tourists and workers. Cast-iron, unique and octagonal structure of
Lau Pa Sat was designed by James MacRitchie. The building has long been transformed into a
hawker center providing the best of Singaporean cuisine (Aquino, 2018).

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(Source: Singapore Guide, 2018)
Critical Analysis of Impact on its surroundings
Each and every tourist attraction may have impact on its surroundings and people. There are two
types of impacts i.e. socially and economically. Social effects signify the impact that it makes in
terms of lives of local population, changes in infrastructure and changes in people’s lifestyles.
Moreover, the economic impact can be calculated in terms of financial and monetary advantages
and economic growth of overall society and its people (Anwar, 2016). In Singapore, Lau Pa Sat
building has a great history and it has both positive and negative impacts on its surroundings
areas. Critical analysis of its impacts on surroundings is given below:
Social Impact
About tourism attractions, it can be stated that they are the major elements of tourism’s economy
because they encourage the interest in travelling to that specific destination. Additionally, they
ensure the satisfaction to those people who visit these destinations. Socio-cultural effects of any
tourism destinations refer to the changes in the lives of population that is living in surrounding
areas of that tourist destination. In Singapore, social effects are the way in which Lau Pa Sat
building is contributing to the changes in people’s life style, individual behavior, value system,
safety level, religion, language, culture, family relationships and interpersonal relationship at the
destination (Aquino, 2018).

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The historical importance of this building is that this is one of the oldest tangible marks of
Singapore’s marketplace from early colonial era. The building has renovated and revamped so
many times. In 2014, the latest renovation has boosted the business of people who have their
stalls in the building. It has generated employment opportunities for the local people in the city.
Now, this building is more elegant and hygienic that provides a neater environment to its
surrounding society and people. This food center has seating capacity for 2500 people with 54
stalls that offer both international and domestic delicacies (Singapore Tourism Board, 2018). With
the increased arrival of international tourists to the building, the government is focused on
enhancing the infrastructure and other related facilities like electricity, road and water facilities
in the area. The people from different countries are reaching Singapore that enable the local
people to know about different languages, backgrounds and cultures (McKercher and Koh,
2017). In order to fulfill the demands of international tourists, domestic people are making
various efforts. It increases accessibility for the local people to different products. It has positive
impact on the nearby attractions of Lau Pa Sat such as Marina Bay, Fear Peak and Monster Day
Tours etc.
Apart from above positive impacts, there are some negative effects of Lau Pa Sat building in
Singapore. Arrival of visitors from different countries is increasing the cultural diversity in the
area. Due to this, the area is losing the identity of its local culture and traditions. Thus, it is
making the surrounding areas culturally unstable. Before June 2014, this building was closed for
so many times that has affected stall owners. They were unhappy about the delays in opening as
they needed to pay during the closure period (Singapore Tourism Board, 2018). Due to heavy
crowd at Lau Pa Sat, local people are confronting traffic related issues. In this way, this historic
building in Singapore has both positive and negative social impacts in area.
Economic Impact
It is evident that tourism industry is the major contributor to country’s economy. It can be seen in
the case of Singapore as well. The contribution of tourism to GDP is estimated to increase by
3.2% per annum to SGD24.9 billion i.e. 4.4% of GDP by 2028. It was SGD43.5 billion in the
year 2017 that was 10.2% of Gross Domestic Product and it is forecasted to increase by 3.5% to
SGD45.0 billion in the year 2018 (World Travel and Tourism Council, 2018). It indicates that
tourist attractions have some economic impacts along with the social impacts. In Singapore,

HOSPITALITY MANAGEMENT 16
tourism attractions have changed the economic structure of the destination. Lau Pa Sat building
has economic effects on its surrounding area and people in two ways. One is generally positive
whereas other is negative. This building is functioning as a market where there are more than 54
stall and other shops which is the major source of income and capital to the local population
(Marin, 2015).
This building provides various economic benefits to the domestic population of the country. It
assists the society and its people to create job opportunities, earn foreign exchange, generate
return on the investment for developing economies, bring new technologies and enhance the
living standard of people in surroundings area. Considering the past tourist arrival and tourists’
backgrounds, people are opening their stores in the market and it is increasing for lower class
people and revenues of shopkeepers as they are selling products on increased prices to foreign
customers. Also, it is providing shopping facilities to domestic population (Boniface, Cooper and
Cooper, 2016). Additionally, government is providing significant support to the economic
development of the destinations. Due to this building, there is generation in the job opportunities
in resorts, hotels, parks, transport operators, travel agents, collages and entertainment businesses.
Along with the positive economic impacts, Lau Pa Sat building has some negative impact on the
other individual sellers and restaurants. It affects their sales and revenues as people prefer to
have food at this market. The reason behind this is that they can find variety and different
cuisines of food at Lau Pa Sat. Moreover, there is increase in the competition so people are
compromising on quality of food. It has impact on the revenues and profits of sellers in the
building (McKercher and Koh, 2017).
In this way, it can be stated that this historic building in Singapore has both social and economic
impacts on its surrounding area and its people.
Theory (Gunn’s Theory)
According to the Gunn’s Theory (1972), there are three major elements of any tourist attraction
i.e. a tourist or human element, a nucleus or central element and a marker or informative element
(Roura, 2011). This theory defines that a tourist attraction comes into existence when these
elements are linked to each other. The creation of attraction is the part of process by which these
elements come together. If one element is not connected then there will not be attraction. The

HOSPITALITY MANAGEMENT 17
author suggests that every element is vital for attraction system. For example, a place with no
tourists would not be considered as tourist attraction (Backer and Hing, 2017). Here, the
existence of historic building in Singapore i.e. Lau Pa Sat can be understood by applying three
elements of Gunn’s theory. In context of Lau Pa Sat, these elements of Gunn’s Theory are
analyzed below:
A Tourist or Human Element
The first element of Gunn’s theory is tourist or human element that has increased in the
popularity and it consists of the people travelling away from home in search of economic
activities (Yusof, Shah and Geok, 2012). This element defines the connections which occur
between the tourist with the requirement and a place where that requirement might be fulfilled.
In Singapore, people are arriving for leisure purposes and its natural heritages are able to satisfy
leisure related needs of tourists. At Lau Pa Sat, the human or tourist element is diverse as tourists
in Singapore are arriving from different countries like Indonesia, China, Philippines and
Malaysia etc. Considering this diversity, this building provides variety of products which are
related to different cultures and backgrounds (Singapore Tourism Board, 2018). At food stalls,
food from different cuisines and varieties is available so that they can enjoy their tradition food.
Additionally, the government has supported the tourists by developing the local transportation
services and infrastructure in the city. In this context, content theory is introduced that tourists
are motivated by the range of needs. Lau Pa Sat is able to meet the needs of tourists by offering
products and food for culturally diverse people.
A Nucleus or Central Element
The second element of Gunn’s Theory is Nucleus or central element that describes as the
characteristics of any tourist destination. It shows any feature of tourist place which a tourist
anticipates visiting or really visits. The author defined this element in terms of motivations which
increase visitation. Primary nucleus is an attribute, for example cultural element, sight and
location of a destination influential in visitation decision. At Lau Pa Sat, there are various
characteristics and attributes which attract more tourists (Ngwira and Kankhuni, 2018). For
example, this building is situated in the prime location and central area of Singapore. In the
central of financial district, Lau Pa Sat is surrounded by tallest buildings in city and famous as
the most popular food markets in city. This building blends the history, outstanding architecture

HOSPITALITY MANAGEMENT 18
and delicious domestic food. At this building, the major attraction is its signature clock tower
that crowns the beautiful landmark. The building is gazetted as a national monument Singapore.
This shape of building is the major attribute that attracts more tourists towards it (Mason, 2015).
Considering the tourist arrival in the city, the changes are made in the building and food offering.
A Marker or Informative Element
Marker is the last element of Gunn’s theory that refers to the way how the information about a
tourist attraction and sight is conveyed to the people (Nowacki, 2013). The communication
between sights and tourists consists of information or markers about the place that are majorly
acoustic, visual, chemical and mechanical. Apart from this, the information can be provided in
the form of brochures, interpretation symbols and plaques. These elements also have a
significant impact on the visitation decision of tourists. For Lau Pa Sat building, Singapore’s
Heritage portal and its website are the major markers which can give the information about
building. The tourists can match their needs with the building’s specifications (Henderson,
2016). In addition to this, brochures of travel agents and hotels can act as the markers for the
chosen building.
Conclusion (Future of Historic Building)
Thus, it is hereby concluded that Lau Pa Sat includes all the three elements of Gunn’s theory. It
shows that it is a perfect tourist attraction in Singapore. It has both social and economic impacts
on its surrounding areas and people. In the future, Lau Pa Sat market will consist of Singaporean
heritage via enactment of domestic weddings covering the diverse racial material of city.
Currently, the major functions of this historic building are focused on the food offerings. In the
future, the place should be available for other activities like sports event, wedding and other
events. A timely revitalization will add more attraction in this building and the building will be
able to increase the tourist arrival in Singapore.

HOSPITALITY MANAGEMENT 19
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