What is it about?
Information and communications technology (ICT) are widely used by enterprises to enhance their competitiveness. Travel agents (TAs) are among service providers for whom their integration of ICT and Internet technological capabilities could be the best marketing device and a potential promoter for enhancing their competitive positioning in the tourism sector. The study contextualizes ICT usage patterns in an underexplored context, the Middle East countries. This study provides an overview of the current state of affairs of the ICT adoption in small- and medium-size TAs in Dubai in United Arab Emirates. It investigates the usage patterns of the Internet by Dubai TAs, reasons for using the Internet, features of agents’ website content, and perceived significant benefits of e-commerce and barriers to adoption. It is found that the majority of TAs use the Internet for several reasons, ranging from customizing services, attracting customers, communicating with customers, gaining access to international markets, providing TAs with information and finding out about suppliers and competitors. The significant perceived benefits identified in this study are establishing a reputation in the global markets, increasing sales, revenues and profits, improving distribution channels, increasing competitive advantage and customizing services to customer needs. On the other hand, it was found that the principal barriers hindering e-commerce adoption are limited resources versus the high cost of e-commerce adoption, online security concerns, lack of skilled information technology labour, a lack of customer readiness, and a lack of advice and support. The study identified the need for more training facilities for adopting e-commerce in TAs and the need for the government to provide incentives, professional advice, and guidance regarding appropriate e-commerce products and services at an affordable cost for TAs operating in the emirate.
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Why is it important?
Internet and ICT adoption by TAs has been widely discussed in the literature; this article investigates Internet and ICT adoption by tourism SMEs in Dubai in the UAE. Dubai is a particular case, not only because it is in a specific geographic region that has been unexplored yet, but also because it is the fastest growing tourism destination in the world. Dubai is also the focus of this study because of its relatively growing economy, rapid modernization and westernization, and its political stability in a relatively unstable region. Accordingly, the study could provide enlightening insights, which might have implications in other GCC countries as well as other Middle Eastern countries.
Perspectives
While there are some strengths of tourism SMEs in the emerging destinations in the Middle Eastern countries, there are still many areas that need improvement. First, their competiveness, which is comparatively lower than their counterparts in high-income countries as Singapore, may be endorsed by online channels and reaching enormous markets that would never be accessible if working offline. Second, adoption of ICT in improving effectiveness, processes and services among tourism SMEs in the Middle East is still lacking. The public and private entities in high-income Middle Eastern countries should meet the needs of tourism SMEs in operating in global markets and attracting tourists and seeking business collaborations. These entities include the financial institutions such as banks; the firms involved in providing IT solutions and services, the human resource consulting and training firms, and many others. Third, tourism SMEs need to improve their HR competences by employing and rewarding the skilled and talented staff, and making their enterprises a pleasant place to work. Finally, in today’s knowledgebased societies, tourism SMEs should realize that investment in innovation and creating a culture of innovation are essential to ensure new markets, products and services.
Dr Esmat A. Zaidan
Hamad Bin Khalifa University
Read the Original
This page is a summary of: Analysis of ICT usage patterns, benefits and barriers in tourism SMEs in the Middle Eastern countries, Journal Of Vacation Marketing, June 2016, SAGE Publications,
DOI: 10.1177/1356766716654515.
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