Strategies Used by the Banking Industry Essay Example for Free

Strategies Used by the Banking Industry Essay In depressed economic times, Banking is an industry that is prone to substantial financial losses, from customer’s closing their depository account to an increase in outstanding loan delinquency. An increase in consumer and commercial loan defaults can damage the integrity of a Bank’s outstanding loan portfolio. Such deterioration can lead to an increase of â€Å"Non-Performing Assets†. Once a loan is nonperforming, (usually when a debtor has not made their scheduled payment for at least 90 days, but there are other reasons why a loan can be deemed â€Å"non-performing†) the odds that it will be repaid in full are considered to be substantially lower. The non-performing asset is therefore not yielding any income to the lender in the form of principal and interest payments. Banks have spent the last several years grappling with nonperforming assets, but perhaps working out problems with bad loans is best left to entities that do not have to answer to a Federal Regulator. This year, more banks have escalated efforts to sell nonperforming assets, and industry experts say the volume of such deals is only going to increase. Meanwhile, a new deal structure is calling for sellers to retain the problematic assets to work them out on their own. (Barba, 2011) But, even if a loan pays in accordance with its Terms Conditions, it still can be categorized non-performing for several reasons. Deterioration in financial ratios can cause a loan to be classified non-performing, one of those financial ratios is Loan to Value or â€Å"LTV†. LTV is the outstanding principal balance of the loan divided by the appraised value for real property pledged as collateral for a loan. When the appraised value of the pledged collateral decreases faster than the principal of the loan, the LTV will increase, thereby making this loan a greater risk in case of default. The benchmark LTV ratio will usually not exceed 75%, the rationale behind this threshold is if the loan does default and, subsequently, the asset disposed of, that the 25% of equity can be used to reimburse the bank for legal fees, court cost, and expenses incurred with liquidating the collateral. This strategy is incorporated in the bank’s lending policy in the effort to â€Å"make the bank whole† in a loan default scenario. When the loan request is not collateral based, the key financial ratio used to determine the borrower’s ability to repay is Debt Service Coverage or DSC. This ratio is calculated using the existing company debt, plus the new loan obligation, divided by the businesses existing cash flow to determine if the total debt can be supported. Covenants in the loan documentation will require the business to furnish Tax Returns and Financial Statements annually to review the borrower’s financial condition to ensure sufficient DSC. If it is determined that the DSC is not sufficient or if the borrower is not in compliance of the Loan Covenant by not supplying the required financial information, the loan can be classified as non-performing. An increase in the level of non-performing assets increases risk and impacts capital levels that regulators believe are appropriate in light of the ensuing risk in the loan portfolio. Regulators request that the level of non-performing assets be reduced. If these problem assets are not reduced through loan sales, workouts, or restructuring or the level of problem assets continue to rise through decreases in the value of the underlying collateral, or in these borrowers’ performance or financial condition, whether or not due to economic and market conditions beyond our control, could adversely affect the bank’s operations and financial condition. This is why banks are so interested in getting these assets off the books. Banks that’ve held on to some loans in hopes of a rapidly increasing economic recovery are starting to lose hope. Moreover, the Euro Zone Debt Crisis and, locally, the $1.2 billion dollar debacle and former New Jersey Governor Jon Corzines MF Global, plus the decline in Moodys index of commercial property values, which reached around 200 in late 2007 and early 2008, before taking a complete round trip back to 100 as of the beginning of this year and leveling off to about 120—but has been largely treading water since late 2009. After that bounce, its gone back down a little, and looks to be flat for the foreseeable future, says David Tobin, one of the two principals of Mission Capital Advisors. Its a smart time to sell. (McDonald, 2011) Another reason for the converted interest in selling these assets is the challenge that banks are having in making new loans. â€Å"Analysts and investors are demanding balance sheet improvements out of the banks†, says Tobin, â€Å"and if the banks cant show strength by adding new, solid loans, then theyll do it by unloading legacy assets that are a drag on capital†. And thats just what has happened. But when they can sell, they do. The best thing a bank can do is sell properly marked assets that help fix the balance sheet. The more you can sell, the better you are perceived. says Tobin. (McDonald, 2011). So, how do bank’s dispose of these assets and what is done with those assets that cannot be sold on a Secondary Market? There are several loss mitigation alternatives used by banks in both scenarios. Typical Strategies used in the sale of non-performing loans are usually Note Sales, Short-Sale or Short-Payoffs, or a Deed in Lieu of Foreclosure. A Note Sale is just as it sounds. A Bank will assign all its rights and interests in the subject Note and Mortgage (or a group of Notes and Mortgages) to an interested party for an appropriate price. A Short-Sale or Short-Payoff, again, is just as it sounds, is a method whereby the bank examines the value of the collateral, financial condition of the borrower, and will determine the amount of acceptable loss that the bank would be willing to incur â€Å"just to make the borrower go away† instead of involving themselves in a, potentially, protracted Foreclosure process. Lastly, the Deed in Lieu of Foreclosure is the process whereby the borrower surrenders the Title to the property instead of going through the, potentially lengthy and expensive, Foreclosure process. This method allows for the bank to receive a maximum price for the collateral since they, in essence, are owners of the property since they are in possession of the Title and the buyer does not have to take assignment in any Legal action initiated by the bank. More often than not, with this option, borrower’s will also insist on the release of any personal guarantors on the Mortgage, so the bank doesn’t have an option of pursing any potential deficiency balance on the loan after the sale of the collateral. When a bank can’t sell their criticized and classified loans on the secondary market and has no other choice that to keep those loans on their books, there are several methods that can be used to modify the existing terms and conditions of a loan to, possibly, strengthen the credit in hopes of a possible upgrade in the loans classification by the bank’s Risk Managers. The first (and most preferred) of these methods is the Reinstatement. The borrower will pay all loan arrears (past-due Principal and Interest) and continue paying as agreed through the term of the loan. As an incentive to the borrower, the bank has the option of waiving accrued Late Charges and Default Interest amounts as part of the terms of the agreement. Typically, if the loan performs as agreed (usually for six to twelve months) after reinstatement, the bank’s Risk Managers will agree to re-classify the loan back to a performing status and resume taking in the interest income on the loan. The remaining methods are several types of Forbearance Agreements. A Standard Forbearance is often consideration (the bank’s delay in enforcing its legal rights and remedies under the Note) for a promise by the debtor to pay an added amount to the current Principal and Interest payments to cure the loan arrears. A Refinance Forbearance is an option whereby the borrower intends to refinance their loan with the bank in order to satisfy the obligation. Lastly, a Graceful Exit Forbearance allows the borrower the time to market and sell the mortgaged premises in order to satisfy the underlying loan obligation to the bank. The time allowed by the bank in any forbearance scenario will, usually, not exceed twenty four months. In good times or bad, deciding how to manage nonperforming assets is never easy. Loan workout can be intricate and costly, both in time and resources spent on deciding whether to work out an asset or focus on what can be salvaged. Moreover, it also requires the bank to evaluate whether the borrower can recover and still remain valued customer. (Trauner 2009) But, if the decision is made to sell the credit, then the decision is how to maximize the consideration received for the asset. Selling assets can often be perplexing and nerve-racking and the reality is that if you take time to evaluate and think purposefully about your portfolio, selling these assets can be a very effectual and fruitful tool to help manage your portfolio through the ups and downs in credit cycles. (Trauner 2009) REFERENCES Barba, R. (2011, November 14). Toxic assets turn into opportunity for community banks. Retrieved from http://www.americanbanker.com/issues/176_221/loan-sales-nonperforming-assets-private-equity-1044055-1.html. (Barba, 2011) McDonald, D. (2011, November 04). Good news? It’s a buyers market for bad loans. Retrieved from http://finance.fortune.cnn.com/2011/11/04/bank-bad-loans/ (McDonald, 2011) Trauner, S. (2009, April). Non-performing assets: The keep versus sell decision. Retrieved from http://www.wib.org/publications__resources/article_library/2009-10/mar09_assets.html (Trauner, 2009)

Serviced Apartments On Beach Resorts Tourism Essay

Serviced Apartments On Beach Resorts Tourism Essay A preliminary model of business development factors was created from both literature review and interviews conducted with international serviced apartment operators in Singapore. Subsequently, the model was being tested in a case study visit to Pattaya. The field study encompassed observations, interviews with government officials, serviced apartment operators and facilities operators. Through these modes of information gathering, the pilot model of business development factors was modified. A post model was drawn up to present the final list of business development factors, as well as three other complementary factors which affect the setting up of serviced apartments indirectly. Primary findings include the importance of extended stay markets, sources of expatriates, a viable and thriving tourist market, good transport connectivity, availability of facilities, proactive government support, high level of security and safety, warm and stable climate as well as affordability of the location. The future development of serviced apartments on beach resorts is also explored to include the possibility of venture into timesharing, vacation club, fractional property ownership or hybrids of the above mentioned. The history of beach resorts, or seaside resorts, dates back to Great Britain in the mid 18th century. Back then, visitors often went to beach resorts for their fashionable practice of sunbathing in a belief that it will help in disease treatment (The great British seaside resort: a brief history, 2009). However, times have changed and this trend has shifted from Europe to Asia Pacific. Hobson (1994) identified that future growth in the Asia Pacific region will be focused on the expansion of resort-type destinations, particularly in countries such as Thailand, Malaysia and Indonesia. With the development of beach resorts in Asia Pacific, accommodation has changed within different stages of development, as reflected in the Beach Resort Model (Smith, 1991). Serviced apartments are one of the newer accommodation types found on beach resorts, arising from the needs of modern travellers such as expatriates who are seeking an extended stay in a location, and families who intend to stay in a location for a longer holiday. As few studies have been done on serviced apartments on beach resorts, a case study on Pattaya beach resort was done to better comprehend the business development characteristics for establishing serviced apartments there. Objectives This paper firstly aims to provide insights on the current growth and penetration of serviced apartments on beach resorts. Secondly, it seeks to recommend a model of business development factors that lead to the growth of serviced apartments in Pattaya and also brings across how these factors may influence beach development and vice-versa. Finally, the implications of the business development factors to various stakeholders of serviced apartments are studied. Scope This paper is written in the context of beach resorts in Asia Pacific. Value of Research This paper provides knowledge about the different business development factors in contributing to the success of serviced apartments on beach resorts. Various stakeholders, especially developers and operators who are interested in establishing serviced apartments in Pattaya, will find this knowledge useful. For owners and operators of existing properties, this knowledge can enhance their management abilities. Limitations Being full-time undergraduates, this study was conducted on a part-time basis. As such, only one case study was conducted due to time and budget constraints. Additionally, the topic of serviced apartments on beach resorts is still relatively new and not widely explored. Therefore, there is limited information available. Furthermore, available publications mostly focused on the Western context, hence not specific to Asia Pacific. CHAPTER 2 LITERATURE REVIEW Serviced Apartments Definition While there is no standard definition of a serviced apartment, serviced apartments are typically considered to offer self-contained accommodation with additional services. The apartment will generally include a small kitchen or kitchenette, with a living room in addition to the bedroom(s), or a studio bedroom (Foxley, 2001). Apartments are cleaned weekly and more often if client prefers, and a round-the-clock reception desk for queries and advice is usually available (Collins, 2007). The appeal of serviced apartments is that they offer the comfort and facilities of a hotel, with the privacy and facilities of home (Foxley, 2001). In addition, it is a cost-effective accommodation solution as guests staying for longer periods of 7 nights or more will normally benefit from a reduced price per night (The Association of Serviced Apartment Providers, 2009).  Globally, serviced apartments are sometimes referred to as serviced residences, condotels, extended stay hotels, and the like (Servi ced Apartments Association Singapore, 2005). Target Segments With changing work practices and increased globalisation of business, business executives are increasingly required to work away from home on a short to medium term basis (Foxley, 2001). Hence, serviced apartments provide the perfect solution for this group of professionals, who form the primary segment for serviced apartments. With a relatively long stay away from home, these business executives seek more space and a friendly home-from-home feel (Fearis, 2006). Besides business travellers, leisure markets with an extended stay intention are also targeted by serviced apartment operators (Harris, 2008). Greater international leisure travel and a growing trend towards taking extended breaks between jobs, vacations and working-holidays are also resulting in the demand for temporary accommodation (Foxley, 2001). Families form an integral part of the leisure market as the space and facilities serviced apartments offer suits their needs. Current Trends and Growth Serviced apartments business has been growing at 15-20% annually compared to a modest 6-8% notched by hotels (Choudhury, 2009). According to STR Global, demand for extended-stay accommodation had been growing by 4.9% in 2004, the fastest rate since 2000, and surpassing the 4.6% jump reported for the overall hotel industry (Ligos, 2005). One key driver for this trend is tight corporate budgets. The recent global economic turmoil forced many companies to reduce their travel expenses in an attempt to minimise costs, allowing serviced apartment operators to ride on this by matching limited budgets with competitive prices (Chinmaneevong, 2009). This was reflected in Asia, where demand for serviced apartments remains high despite the crisis (Harris, 2008). The increase in supply of serviced apartments is further bolstered by the predicted continuous growth in global business travel, with Asia Pacific being poised for substantial growth between 2008 and 2013 (NBTA/IHS Global Insight, 2009). Another driver for this surge in popularity of extended-stay hotels is that more companies are willing to pay to relocate new employees (NBTA/IHS Global Insight, 2009), or send them for cross-border corporate training programmes (Foxley, 2001). Employers regard this as an investment due to the lack of qualified and skilled labour (NBTA/IHS Global Insight, 2009). The percentage of such willing employers has increased from 2007 to 2008 by 14% (Fryson, 2008). Locations The locations of serviced apartments will determine the mix of studios, one-bedroom and two-bedroom apartments (Geieregger Oehmichen, 2008), as well as the quality of accommodation and service (Foxley, 2001). Typically, serviced apartments are found in urbanised locations (Harris, 2008), where many multinational companies establish their headquarters or manufacturing plants. This facilitates movement of business executives in cities for meetings and conventions. However, serviced apartments can also be found along beaches. Beach Resort Development Beach resorts are defined as geographic areas offering a variety of facilities, services and activities which are orientated towards seaside recreation for the accommodation, use and enjoyment of visitors (Smith, 1991). Resort morphology goes through a predictable sequence of stages: from pre-tourism low through high-density development to an urbanised state (Andriotis, 2006; Smith, 1992). Barrett (1958) first noted the significance of the seafront in the structure and location of the commercial core, distinct zonation of accommodation types which expands in a semi-circular fashion inland from the commercial core and an elongation of settlement parallel to the coast. Stansfield (1970) later observed the development of the Recreational Business District (RBD) consisting mainly retail, food and beverage and entertainment services along the beach front. The Commercial Business District (CBD) is distinctly separated from the RBD and commonly found more inland. Pigram (1977) noted that improved public transport played a significant part in the arrangement and evolution of zones of land-use. In addition, recreational businesses and accommodation establishments tend to orientate themselves on major access routes to the resorts. Smith (1991) created the Beach Resort Model (BRM) which describes ad-hoc beach development from stages 1 to 8. The stages were determined by 6 categories of change morphology, physical, environmental, social, economic and political. Four coastal resorts in Asia Pacific were studied in developing the BRM; however, it can still be applied at large to other coastal resorts. BRM documents the start of a beach resort from a settlement in pre-tourism datum to a fully urbanised city resort. Accommodation Development on Beach Resorts Accommodation at resorts fall into two groups: traditional and self-catering (Stallibrass, 1980). Traditional accommodation includes personal service both in the private rooms and public areas while self-catering accommodation is self-contained, with its own kitchen facilities. Accommodations on beach resorts frequently start with second homes, followed by hotels which are the traditional accommodation (Smith, 1991). There would be structural changes to accommodation typically at the last two stages of the BRM, because resorts mature and narrow accommodation bases diversify to include significant components of all classes of accommodation (Smith, 1991). In addition, changes experienced when a beach matures, such as greater accessibility and new facilities, results in visitor profile changes (Strapp, 1988). This also affects the type of accommodation in demand. Multi-titled tourism accommodations (MTTA), which include serviced apartments, have been on the rise due to lower financial risks compared to single-titled properties, and the larger target market available due to its mixed use (tourists and residential) (Warnken, Guilding, Cassidy, 2008). MTTA complexes now represent an integral part of, or even dominate many popular seaside and ski resorts in many parts of the developed world (Warnken Guilding, 2009). Serviced Apartments on Beach Resorts In later stages of beach development, beach resorts may start to see year-round residency. The area could become more of a residential community with people staying well past the traditional tourist season (Strapp, 1988). Anecdotal evidence suggests an increase in demand for self-catering short holidays (long weekends up to one week) amongst young families and self-catering accommodation for increasingly wealthy retirees (Warnken et al., 2008). Together with increased demand for accommodation, suppliers are encouraged to add higher quality infrastructure typified by a shift from inexpensive motels to resort apartments such as serviced apartments (Prideaux, 2000). Majority of internet accommodation search engines for major destinations returned listings with MTTA-style complexes (Warnken et al., 2008), and these include serviced apartments. Reasons which could have spurred the establishment of serviced apartments on beach resorts encompass the following: Presence of an expatriate market working in nearby industrial hubs requiring temporary accommodation (Appendix A, B C) Presence of a retired silver-haired market moving to beach resorts during winter months in order to stay in warmer climates (Foster Murphy, 1991; Williams, King, Warnes, Patterson, 2000) Transport connectivity for convenient access to the beach resort (Appendix C) Top-notch facilities such as schools, medical care and entertainment (Appendix B) Serviced Apartments on Beach Resorts in Asia Pacific Serviced apartments were the fastest growing segment of the tourist accommodation sector in Australia during the late 1990s (Foxley, 2001). The number of serviced apartment properties in Gold Coast has been increasing over the past few years. In 1998, the number of serviced apartment guest rooms was 3,180 (Australian Bureau of Statistics, 1999), while in 2007, this number was 5,371 (BusinessGC, 2007). In the year ended June 2009, serviced apartments saw the strongest increase in establishments (0.9%) and room nights available (2.4%) out of all accommodation types, while the motel and hotel sector experienced a contraction of 4.7% and 6.1% respectively in number of establishments (Tourism Queensland, 2009). Currently, here are not many major international operators located on beach resorts in Asia Pacific. Some international operators feel that there are opportunities for serviced apartments to be located on beach resorts in the region. With news releases indicating the plans of Ascott and Oakwood to enter Pattaya, Thailand (The Ascott Limited, 2005; Viboonchart, 2009), it suggests that development of serviced apartments on beach resorts in other parts of Asia Pacific is gaining momentum. Currently, Frasers Hospitality already has a property in Pattaya named Fraser Resort Pattaya. CHAPTER 3 PROPOSED MODEL OF BUSINESS DEVELOPMENT FACTORS FOR ESTABLISHING SERVICED APARTMENTS ON BEACH RESORTS The role of the market has not been the main focus in existing research for the development of beach resorts. The following section takes a closer look at market conditions and operation of the supply side in spurring beach resort development, specifically the development of accommodation to include serviced apartments. The three most important stakeholders in a beach resorts are guests (who are the main cause for induced development); hosts (who by supporting development and by being involved in tourism contribute to the success of a destination); and politics (which influence overall development) (Andriotis, 2006). As such, the factors which are considered below are greatly influenced by characteristics of these three stakeholders. Industrial areas and city centres Relocation of corporate personnel would generate demand for serviced apartments. For beach resorts, there would usually be a presence of expatriates if there are nearby industrial areas and busy city centres (Appendix A C). Moreover, coastal areas are emerging as major centres of economic activity and new powerhouses of tourism interest (Prideaux, 2009), possibly bringing in an expatriate market. Viable and thriving tourist market During weekends, serviced apartments target leisure travellers to fill rooms. This is supported by Foxleys (2001) observation of a trend amongst the international leisure travellers to take extended breaks. In addition, there is seemingly an increase in demand for self-catering short holidays amongst young families (Warnken et al., 2008). Hence, a viable tourist market should also be present for serviced apartments to tap on. Medical tourism Medical tourism has grown rapidly in the past decade (Connell, 2006). People travel long distances overseas to obtain medical, dental, and surgical care while simultaneously being holidaymakers. Reasons for the growth of this niche tourism are high costs of treatment in developed countries, long waiting lists, relative affordability of air travel, and favourable exchange rates (Connell, 2006). Medical tourism has grown in Thailand who deliberately linked medical care to tourism, thus boosting beaches attractions (Connell, 2006). The Phuket Health and Travel website states that it aims to combine health and holiday aspects of travel. Their health and holiday package could include hotel accommodation, pre-doctor appointment, sightseeing, island tours and night entertainment attraction bookings (Phuket Health Travel, 2009). As medical tourism gains popularity, operators may establish serviced apartments next to large hospitals to cater to this kind of demand (Sharma, 2005). Transport Connectivity Transport access to the resort is likely a key determinant of the resorts rate and size of growth. Kim (1998) mentioned that the assessment of tourism potential would place great emphasis on transport communications and general access to the area. As accessibility improves through new road, rail, sea and air services, new and more distant markets will become accessible (Prideaux, 2000). In addition, a good transport system is essential in bringing customers to the apartments doorsteps, and bringing customers to their destinations in the day. Facilities Guests of serviced apartments require nearby facilities for basic living essentials and recreational activities. Recreational activities include sports, shopping and entertainment (Prideaux, 2000), while basic essentials encompass healthcare and educational institutions. Healthcare and educational institutions are especially important for expatriates who have brought their families along when they are relocated by their companies (Appendix B). Political aspects Government policies can hasten the development of beach resorts (Prideaux, 2000) and also implement favourable conditions to boost tourism which potentially encourages serviced apartment establishments due to healthy tourist market prospects. National Tourism Organizations are also responsible in wooing tourists to the country. Ooi (2002) discovered that the political environment can have a significant influence on the image of the destination and tourism promotion policies. Safety and Security Safety is a major concern for tourists (Kim, 1998). Davidoff and Davidoff (1994) concluded that people would not travel to a location believed to be unsafe. Given that expatriates can stay up to a considerable period of time and may bring their families along when they are relocated, security for the family and self becomes an important concern. A summary of the above mentioned factors are integrated into the table below: Table 1.png The factors identified above can possibly shape future growth and development of beach resorts. Additionally, they also aid in future planning by recognising supply short-comings and predicting rising needs of the market, allowing sufficient time and space for operators to cater to these trends. CHAPTER 4 RESEARCH METHODOLOGY Case Selection The case method (Yin, 2003) is used in this study and the unit of research is a beach resort. The case selected in this study is Pattaya. In Pattaya, there is one major international serviced apartment operator, Fraser Resort Pattaya. Interestingly, a huge industrial development is located east of Pattaya. As a developed beach resort, Pattaya has good facilities and infrastructure in place to support its tourism activities. These indicators provide an inkling of the entry of more international operators eventually, thus providing adequate data for this study. Data Collection Formal interviews were conducted with major international serviced apartment operators headquartered in Singapore to gain a better understanding of the industry. A preliminary model was created through book, journal and internet research, newspapers and interviews in Singapore. A field study to Pattaya was then conducted from 8 to 11 December 2009 to collect primary data. Details of the site visit are: Interview with an international service apartment operator several local operators an official from the Tourism Authority of Thailand (TAT), Chon Buri (Pattaya) international hospitals Physical observations of the facilities, establishments and general environment Subsequently, a post-trip model was constructed. This is a refined and condensed model after further knowledge gathered through the field study. Complementary factors which contribute to the listed factors are also identified to provide a wider perspective. CHAPTER 5 PATTAYA CASE A seaside province located on Thailands east coast, Chon Buris scenic views earns itself a reputation as one of Thailands popular sanctuaries for holiday retreats. Situated near the city of Chon Buri is Pattaya, a holiday paradise for fun-lovers. As Thailands premier beach resort that attracts a large number of tourists, Pattaya is charmed by a tropical resort atmosphere suitable for total relaxation. Besides its blessed natural beauty, Pattaya also offers a wide range of water sports and vibrant nightlife (TAT, 2006). Today, it boasts the unique distinction of a beach resort with a city status (TAT, 2007). 5.1 Accommodation Development in Pattaya The increasing influx of visitors over the years has stimulated changes in accommodation types. Most of the large hotel chains, resorts and serviced apartments are located in two regions north and central of Pattaya city. In the stretch right in front of the coastline, the smaller hotels or budget accommodations are found. This stretch is also the region where there are many restaurants, bars, pubs and a number of shopping malls spread out along the coastline. Although most of the serviced apartments are in the north and central region of the city, there are still a few serviced apartments located in the beachfront stretch (Appendix T). This occurrence as described by the BRM model is due to development saturation of the original beachfront strip causing subsequent accommodation to develop along the same strip but extending further inland (Smith, 1991). As serviced apartments are only recently developed on beach resorts, their locations are thus further away from the beachfront. In addition, beachfront region is considered to be nosier with activities ongoing till late. Since serviced apartments are targeted at long-term stay visitors who might want a more conducive environment, serviced apartment operators have thus established the apartments away from the noise. The contrasting location of some serviced apartments in the beachfront stretch is due to their smaller sizes and absence of a serviced apartments full capacities. CHAPTER 6 CASE EVALUATION The business development factors in the preliminary model are assessed against observations and interviews conducted at Pattaya. Further findings are also indicated. Evaluation of Preliminary Model Industrial Areas and City Centres As business executives are the primary target audience of serviced apartments, the existence of sources generating expatriates, such as industrial areas and city centres, are vital. In Pattaya, industrial areas are of notable importance as a driving factor for guests in serviced apartments. Chon Buri province is located in the industrial development region of Thailand, a short drive to southeast Bangkok (Tanvatanakul, Saowakontha, Amado, Vicente, 2007). Business executives who work in both Bangkok city and Chon Buri are thus able to commute to Pattaya quickly. Besides Chon Buri, Rayong province also houses several industrial areas and is approximately 220 kilometres from Bangkok (Bangkoksite.com, 2009). Five main industrial areas (Appendix N) situated in both provinces Laem Chabang , Map Ta Phut, Eastern Seaboard, Amata City and Pinthong, are sources of the expatriate market who seek accommodation in Pattaya city (Appendix I). Some local operators revealed that the bulk of their customers come from the industrial areas. The close proximity to both provinces makes Pattaya a preferred place for many expatriates to stay in (Thailand Guru, 2007). This spells business opportunities for serviced apartments. Positive statistics draw links to a possibly burgeoning expatriate market coming to Pattaya, as reflected in the rise in tourist arrivals in Pattaya for business activities over the years. Arrivals based on business purposes increased by 38.08% from 349,010 in 2006 to 481,916 in 2007 (TAT, 2007). In addition, the proportion of these business arrivals out of total arrivals also increased from 5.7% in 2006 to 7.21% in 2007. For conference/seminar purpose, figures rose from 95,887 in 2006 to 260,695 in 2007 (TAT, 2007), representing an astounding 171.9% increase. The proportion of this conference/seminar-driven tourism out of total tourist arrivals increased from 1.6% in 2006 to 3.9% in 2007. These trends may further spur the growth of serviced apartments in Pattaya. Viable and Thriving Tourist Market Apart from business travellers, serviced apartments may also serve leisure travellers who are on extended holidays. A promising inflow of tourists is likely to affect the growth of serviced apartments. The following section assesses the tourist market in Pattaya based on figures retrieved from TAT for years 2005 to 2007. TAT indicated that figures for 2008 and 2009 are not available. Tourist Arrivals Table 2.png Table 3.png Figure 1. Internal Tourism in Pattaya Tourist arrivals have been increasing steadily from 1997 to 2007. It increased by 14.55% in 2006 as compared to 2005, to a decade high of 6,680,658 in 2007 (+9.25%). The main purpose of visits has been for leisure, which comprises about 83 90% of tourist arrivals in years 2005 to 2007. This shows a thriving leisure tourist market. Table 4.png Interviews conducted with local serviced apartment operators revealed that their main customers are Europeans. Figures have shown that out of the 4,481,630 international travellers who visited Pattaya in 2007, 40% are Europeans. As Pattaya remains a popular beach resort destination for European visitors, the European tourist market in Pattaya will either maintain its size or expand in the future. Local operators also mentioned that these Europeans customers can stay for long periods ranging from a few weeks to a few months. Aside from Europeans, Pattaya is also a popular destination amongst Asians due to its location and reputation for providing a beach getaway. A dip in figures is expected for 2008 and 2009 due to the global economic recession and H1N1 pandemic. Other sources suggest that following a 5% increase in tourism numbers in the first half of 2008, international tourism began to slow down rapidly in mid-2008, reflecting rising oil and commodity prices, volatile exchange rate fluctuations, political instability, and the impact of the global economic recession (UNWTO 2008; UNWTO 2009a; UNWTO 2009b). However, as the world emerges from the recession, tourism in Pattaya is expected to pick up in late 2009 or early 2010 onwards. Tourist Receipts Table 5.png Accommodation expenses generally comprise the bulk of tourist expenditure. Furthermore, tourist receipts have been increasing from 48,522.13 million baht in 2005 to 59,347.61 million baht in 2007. As both tourist arrivals and expenditure increase, this means more business opportunities for serviced apartments in Pattaya. Average Length of Stay of Tourists Table 6.png The average length of stay has decreased from 3.41 days in 2005 to 3.13 days in 2007. However, local operators revealed that the average length of stay ranges from a few days to a few months for leisure travellers, while the average length of stay can be up to 2 years for expatriates. Major Attractions and Future Plans The two principal beaches are Pattaya and Jomtien beach, which offer a range of recreational and entertainment services. Aside from the beaches which saw 61% and 31% of total tourist arrivals in 2007 respectively, other key attractions include bars and nightclubs (30%) and shopping malls (13%) (TAT, 2007). As beaches remain the most visited place in Pattaya, plans are proposed for a large new pier and marina for sporting and leisure craft on Pattaya beach (Channgam, 2008), rejuvenating the beach and thus keeping it attractive for tourists. In addition, the Pattayas mayor wishes to shift the image of Pattaya away from a red-light district to one full of other exciting activities such as a possible indoor ski resort which could attract more international business chains and induce more long-stay guests (Appendix J). Hence a viable and thriving leisure tourist market helps to raise occupancy rates in serviced apartments. Nonetheless, the tourism industry needs to keep improving to sustain or develop new interest in tourists. Medical Tourism The presence of international hospitals may stimulate the establishment of serviced apartments next to them to cater to potential medical tourists who stay for long-term treatment. Three international hospitals dominate Pattaya, namely Bangkok Pattaya Hospital (BPH), Pattaya International Hospital (PIH) and Pattaya Memorial Hospital (PMH). Of these hospitals, only BPH is programme certified by Joint Commission International. It also has 400 beds, having the ability to accommodate more patients as compared to PIHs 70 beds, and PMHs 80 inpatient beds. However, from interviews with the hospitals, it was revealed that patients are largely locals and to a lesser extent, international visitors. Medical tourists are hence an insignificant contributing long-stay market. Nonetheless, it may grow in significance in the future. Transport Connectivity Favourable transport connectivity helps visitors and locals to orientate their way to and around Pattaya easily, a basic essential factor required to draw guests to stay. Features affecting transport connectivity are analysed below: Distance and time to airport Located approximately 110 kilometres away, Pattaya has close proximity to Suvarnabhumi Airport, with travelling time around 1.5 to 2 hours. This relatively short distance and travelling time makes Pattaya a desired city to visit. Modes of transport to Pattaya Visitors can access Pattaya conveniently via air, rail, taxi, coach or local buses. Modes of transport around Pattaya The most commonly seen transport is the Baht Buses, which are transformed from pickup trucks. Other forms of transport include motorcycle, bicycle, car, local bus and taxi. Local buses, however, are not easy to spot and thus often underutilised. Road InterconnectivityC:UsersLoyAppDataLocalTempRoad Map.jpg Figure 2. Pattaya Road Map The road system can be complex and confusing for first-time visitors. However, after gaining familiarity, it is simpler to navigate around. From North to South, there are Beach Road (also known as First Road) which faces the sea, Pattaya Second Road and Pattaya Third Road. Beach Road is a one-way road which runs southwards, while Second Road runs northwards. These one-way roads pose inconvenience and a hassle to travel. In between these roads are smaller and busier streets which connect the three roads together. From East to West, there are the North Pattaya Road, Central Pattaya Ro

Plastic Arts Education in Ecuador

Plastic Arts Education in Ecuador The plastics arts is essential tool to stimulate the creative ability and aesthetic sensibility in Ecuadorian preschool students In Ecuador, the implementation of plastic arts in the different schools is very important because its essential tool to stimulate the creative ability and aesthetic sensibility of the students. Plastic arts techniques, influence in the development of the childs fine motor skills as they are part of his daily life. The childs brain have a capacity of imagine and create anything to this age. The best method to that a child learned is the observation, perception, and representation of analysis. This fosters the development of talents and creativity that are necessary incentives for the child learning. The teaching methods help to acquire new information that the brain could use in the future to construct ideas, answers, or give solutions. Plastic arts in the initial education are a priority need for the child, because during the plastic workshops they have the opportunity to creative and act. Its considered to be dynamic process because the path it traverses is not linear. The education al system at this age should function as a transmitter, sifter and maintainer of cultural goods, creating interrelations with art. Plastic arts are a motivating tool that helps in the different areas of cognitive and preferential development. Integral development, motivating skills, capacities, and improving observation analysis are some of the benefits of plastic art. Plastic art techniques, if performed daily, influence in the development of the childs fine motor skills as they are part of their daily life, and failing to use them in an appropriate and timely manner will deploy a series of weaknesses and shortcomings in the development of skills engines that should strengthen at this age. The expression of human emotions and situations through the use of material elements aid creativity in children as well. Furthermore, this contributes in a really significant way in the intellectual and emotional formation of the people in general. Due to the fact that Ecuadorian schools have a deficit in creativity, plastic arts is essential tool that will stimulate the creative ability and aesthetic sensibility in Ecuadoria n preschool students. Art is a gift the human beings have at birth and this provides the opportunity to increase the capacity for action and experimentation to face a society full of changes. Art is a social product par excellence, where the influence of concrete reality predominates (Hinostroza, 2000, p.12). Because art is expressed and communicated values, customs, ideals and aspirations that mark the social development of a people and enrich the artistic expression to the people in the world. Art is the expression and manifestation of human feeling, through the line, color, movement, rhythm and melody according to the objective reality where it develops (Aquiles, 2000, p.10). Then, it will be understood that manifestation of human activity that is expressed in a way subjective, unique and irreproducible way to realize an artistic creation, be it real or imaginary communicating feelings and sensations that is the result of its intelligence and creativity. Art creates a domain in the symbolic life of the child, which encourages them to experiment with ideas and feelings while providing pleasure, which is a central goal in the development of emotional-affective life (Setchovich, 1999, p.18). First, the method of teaching in pre-school schools in Ecuador is quite standardized and systematic. For a better development of its initial education, Ecuador has agreed to the update curriculum, based on games and arts as methodological lines to organize, promote, and run experiences, starting the recognition that they are actors in their own learning. (Arias, 2013). With this in mind, implementing an innovative change in the schools would raise methods of observation, perception, and representation of analysis. This fosters learning and the development of talents and creativity that are necessary incentives for the childs interest in learning to act as motor. The curiosity of a child is enormous. Accordingly, when a child is curious, he or she observes and analyzes the different things that are around them. In fact, to promote learning, talent development and creativity is a key part of the teaching in the preschool. Indeed, the school should be a privileged place of learning and personal growth for a child. Education is a social process that enables the development of each persons potential. This process occurs in life and for life, in interaction with the environment, where the child develops his aptitudes, values and feelings (Fundacià ³n, 2013). Plastic arts should be considered as important methodological strategies in the process of strengthening the fine motor, because they offer plastic materials that can be manipulated freely and spontaneously with their hands promoting the joy of create and develop the imagination through its free expression. In plastic arts the children play with the material, the colors, the space, the images and the textures. Then they will begin to realize them expressing consciously what they feel, think and see. As a result the teaching methods help to acquire new information that the brain could use in the future to construct ideas, answers, or give solutions. Also, teachers will also expand their knowledge and establish strategies in a relevant way for this area and will be able to meet the needs of infants in a harmonious inter-learning relationship, strengthening the initial education pedagogical model which in turn will help the acquisition of knowledge, skills and values in children. Plasti c arts in the initial education are a priority for the child, because during the plastic workshops not only is a reality is perceived, but also they have the opportunity to create and act. Second, the stimulation of the creative ability in the children ages 3 to 4 years old is very important. The complex activities in this age, prevent the maturation of the fine motor, that if they are not corrected to time could generate difficulties in the initiation of the writing as it is: driving description, loose graphics, impulsiveness or clumsy writing giving rise to being hypertonic or hypotonic as their muscles have not reached maturity and still have no physical or emotional stability (Arias, 2013). Due to the fact that the childrens brain have a capacity of imagine and create anything to this age. When they do different activities like reading a history book the brain is obliged to imagine the things that they read. Besides, this the children make a drawing when their brains have a connection with the imagination. The plastic arts are important because it are not simple activities of reproduction of stereotypes, colored drawing, and, decoration or filling of figures that o nly thicken the work folder. But rather, plastic arts are transforming processes of the educational task that aim at a cognitive, socio-affective and motor development of the boy and the girl, forming it integrally. In fact, the emotions of children are important to creativity. Even through their emotions they can recreate the different scenes that involve being happy, sad, angry, etc. With this in mind, imagination can solve problems and help them practice self-discipline and develop both affection and compassion. Therefore the most important in a child is to create imaginary situations where they can act freely and they can solve problems. In addition, it is considered a dynamic process because the path it traverses is not linear. Thus, the educational system at this age should function as a transmitter, sifter and maintainer of cultural goods, creating interrelations with art to offer meaningful learning experiences to the child. Finally, improving aesthetic sensibility in initial education through the ability to understand the beauty of life and in art provides a comprehensive approach to childrens harmonic development. The initial education in arts where there is intensive accumulation of physical, mental, and spiritual faculties of children of 3-4 years accustomed causes good cognitive development. Nowadays, the formation of intellectual personality in preschool children is as important as the development artistic skills. In fact, it appears that the attitude for the composition of poems, stories, songs, etc.is becoming more promising. Thus, the aesthetic interests of the child in the expression of the universality of an aesthetic activity that is associated with art should be relaxed, cheerful, creative imagination, and initiative. But, the problem nowadays is that teachers do not use adequate methodological strategies to develop fine motor skills in the age of 3 to 4 years, because they work without grea ter organization and consideration of the needs and rhythm of development of children. (Arias, 2013). In conclusion, the initial education in arts where there is intensive accumulation of physical, mental, and spiritual faculties of children of 3-4 years accustomed causes good cognitive development. All students can improve if establishing techniques of the plastics arts teachers in initial education. The implementation of these arts in the Ecuadorian preschool will help with the development of creativity and innovation. Also, teachers will benefit by integrating their knowledge, as children today require an education with quality and warmth, where they offer meaningful experiences that allow their comprehensive training. Plastic arts contribute with agile and dynamic processes for the development of fine motor skills as they allow the application of different plastic techniques in a creative way that promotes segmental independence. Creating experiences of learning enriching for the integral formation of infant, which teachers do not give due importance within the learning process. Therefore, teachers are encouraged to incorporate into the educational process a methodological guide on plastic techniques to apply and improve the development of fine motor skills in children aged 3 to 4 years. References Aquiles, E. (2000). Art and creativity in the Education. Arias, R. (2013). Plastic Arts for the development to children. Quito. E. (2012). The Finland Phenomenon The System Educative Finland. Retrieved July 20, 2016, from https://www.youtube.com/watch?v=aAvle_y1mgI Fundacià ³n. (2013). Down21.org. Retrieved from http://www.down21.org/educ_psc/educacion/atencion_temprana/cognitiva.htm Hinostroza, E. (2000). Art and Creativity. Ossola, A. (2014, November 12). Scientists are more creative than you might imagine. Retrieved July 28, 2016, from http://www.theatlantic.com/education/archive/2014/11/the-creative-scientist/382633/ Riquelme, A. (1986). Artes Plasticas. Universitaria. Setchovich, G. (1999). Plastic Expresion and Creativity. Mexico.

Violence as Displacement: The Erotic Gaze in Gladiator and Fight Club :: Essays Papers

Violence as Displacement: The Erotic Gaze in Gladiator and Fight Club On the screen, two men writhe and grapple on the cold concrete floor. One man on top, holding the other from behind in a chokehold that causes the man on the bottom to succumb to the more powerful man. The dialogue by the narrator states that, â€Å"Sometimes all you could hear were the flap, hard packing sounds over the yelling, or the wet choke when someone caught their breath and sprayed† (Fight Club). The soundtrack consists of a few notes repeated over and over again in a steady rhythm to the action that is happening on the screen. The camera focuses on a close-up of the face of the man on bottom as he contorts into an expression of both pain and pleasure and moans loudly. Finally, the two men get up after the action is finished and embrace. Panting and moaning, the last shudders of pleasure leave their bodies as the scene fades out and begins again with another couple struggling on the cold concrete floor. The scene described above sounds as if it should be found in a pornographic video displayed on the shelves of a sex shop located in the back alleys of Soho in London. However, this scene is taken from director David Fincher’s widely popular film Fight Club. Even though the scene has an intense air of the homoerotic, the characters in the film are actually fighting and not having sex. Steve Neale addresses this phenomenon in his article â€Å"Masculinity as Spectacle†. He upholds the view of feminist film theorist Laura Mulvey by maintaining that the spectatorial look in mainstream cinema is always male. A problem arises when the look of the spectator is forced upon an erotic shot of a male figure. The article states, â€Å"that in a heterosexual and patriarchal society, the male body cannot be marked explicitly as the erotic object of another male look: that look must be motivated in some other way, its erotic component repressed† (Neale 14). The e rotic component is repressed with violence or with mutilation of the male body. This repression is often found in the action genre in such films as Gladiator and Fight Club where the female object of the spectator gaze is replaced with male figures.

Richard Whites Friendship and Commitment :: Friends Morals Loyalty Papers

Richard White's Friendship and Commitment In this paper, I will examine the duties of friendship. I will look at arguments in favor of the view that there are special moral duties involved in friendship, but will ultimately reject this view. I will then explain what role I see friendship having in morality even without these duties. In Richard White’s article â€Å"Friendship and Commitment†, White argues that friendship is an â€Å"inherently moral activity† (81). He argues that part of being a friend is having certain obligations, like being helpful or emotionally available. These are obligations that are above and beyond what we owe to a stranger. He also thinks that being a friend involves a commitment. He says specifically, â€Å"when I spend time with someone, accept their help, and make myself available to that person, by sharing the more intimate aspects of myself, I am also creating an expectation that is equivalent to a commitment, given the institution of friendship and all that it commonly entails† (82). In being someone’s friend, aside from the commitments and obligations, he argues, you are also morally endorsing her. That is, you are implicitly saying that there is something valuable about them – that your friend is someone worth knowing. Let us suppose that all of this is actually the case – that friendship really does imply certain commitments, obligations, and endorsements. Do any of these matter morally? I’ll address endorsements first, followed by obligations and commitments. When someone is your friend, this seems to imply that you think there is something valuable about that person. But the things I find valuable in her might have nothing to do with morality – for instance, she might be intelligent and able to argue effectively. She might make me laugh. She might be fun to be with. None of these are morally relevant, and yet a combination of them would probably be sufficient for me to be friends with someone. As such, it seems that being a friend with someone does not actually imply a moral endorsement of that person.

Green Capitalism Essay

Green Capitalism is a new approach for resolving the problem of environmental destruction while ensure the sustainable development of capitalism practices (Bess, 2000). The world is witnessing the effects of global warming. In addition, economic sustainability remains a major concern by the global community. Based on this, green capitalism concept dictates for use of green energy sources to support the economy (Bess, 2000). By ethics of care, individual humans must protect the environment for the good of the whole community. Critics have blamed capitalism for its exploitation of available resources without concern of the negative environmental implications of the same (Beaufoy, 1993). From an ethical point of view, green capitalism concept is quite limited in its practicability due to the fact that capitalism by its nature seeks to maximize profits regardless of associated consequences (Beaufoy, 1993). On the other side, green practices dictate for protection of the environment and its ecosystem. Thus, the theory of green capitalism remains a conflict between caring for the environment and maximization of capital (Beaufoy, 1993). True to the letter, the world is claimed to have enough renewable resources to sustain its population. Nevertheless, most of these resources like solar, wind, and tidal energies are unpredictable for supporting our current economic energy requirements. Still, the green capitalism concept advocates for reduced consumption of anti-green products in the community (Bess, 2000). This has an ethical implication of harming the global market capital, a claim that has been blamed for economic meltdown (Beaufoy, 1993). As a solution to these real concerns on green capitalism theory, there is need having in place other models of addressing the problem of environmental pollution. Just to note, the effects of capitalism are permanent trends that cannot be reversed if capitalism prevails. References Bess, M. (2000). Greening the Mainstream. Environmental History, 5, 12-18. Beaufoy, H. (1993). Case Study: The Green Office in Britain: A Critical Analysis. Journal of Design History, 6, 9-14.

Marketing Smart Water Topic

Marketing Plan Topic:Due Week One Complete this form and submit it to the Week 1 Marketing Plan Dropbox. Your instructor must approve your idea, and will give you feedback and suggestions if you need help. You have several options when choosing a product or service for your marketing plan. Consider choosing a new product for a new company (your own) or creating a new product for an existing company. Perhaps you would want to do a product extension of an existing product. You might consider a different approach to marketing an existing service.You can target consumers or businesses. You may choose a product or service offered by your employer or your own business, or one from another organization. Ultimately, to maximize your learning experience, choose a product or service in which you have an interest and about which you would like to see your product or service come to the marketplace. Make sure there is information available about the industry and target marketing of the product o r service you choose. MARKETING PLAN TOPIC Your Name: Product or Service Idea:SmartWater Is your product or service offered by: __X__an existing company? ____a new company imagined for the assignment? Explanation: Glaceua is the maker of smartwater, vitaminwater and vitaminwater zero. Who do you think is the target audience? (Remember you will need research to confirm this. ): Their main target are people who enjoy healthy food and are aware of what they are putting into their bodies. Customer’s buy Smart Water for â€Å"what’s not in it†, which is a major selling point for Glaceau.Are similar or competitive products or services available? List or briefly describe a similar product or service: (If your idea has no precedent in the marketplace, consider another idea). Spring water is the direct competitor as it is less expensive and easily accessible since supermarket chains are now manufacturing their own brand of spring water. Also, there is still the competiti on of water fountains and water filters which are both used to this day. How will your product or service differ from competitors?What is your distinctive competitive advantage? To distinguish their product from spring water, the company created the term â€Å"Smart Water† and bottled it in graphically appealing proprietary packaging under its trademarked brand name, Glaceau. Glaceau Smart Water has claimed its rightful place as having the lowest measurement of total dissolved solids (i. e. metals and minerals) of any water on the market. Do you have questions for your instructor? Do you feel I will have enough sources for this product.