Download Management & Engineering Study on Non-financial Value of Tourism Listed Companies

Management & Engineering 10 (2013) 1838-5745
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Management & Engineering
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Study on Non-financial Value of Tourism Listed Companies
Yabing LI, Huaqin GUO
School of Economics and Management, Lanzhou University of Technology, 730050, Gansu, P.R.China
KEYWORDS
ABSTRACT
Tourism listed companies,
Non-financial value,
Measurement
With the rapid development of tourism and low carbon economy, tourism investment value
has been paid more attention in China. From non-financial investment value perspective, the
enterprises’ internal abilty, regional and environmental features are viewed as invested
effective factors in consider of the characteristics of Tourism Listed Companies (TLC). With
the AHP method the above factors were used to build non-financial investment value
evaluation model of TLC, then major tourism listed companies are selected to test systemly
investment value. The result shows that the scores of companies are relatively with brand
value and resources value. It highlights that tourism listed companies should develop
multi-field strategy.
© ST. PLUM-BLOSSOM PRESS PTY LTD
1 Introduction
With the development of society, tourism has become one of the largest industries in the economic development of the world.
Tourism has recently received increasing attention in China, while tourism has improved the national economic, enhanced national
welfare, changed the regional image, provided more jobs, protected the culture and environment. Investment value of listed company
refers to the intrinsic value of listed companies, reflects the size of the company's future profitability, and is listed company's future
cash flows of present value. In the tourism research literatures, most authors used the various public data released by the listed
companies in stock market, and selected financial indicators to analyze the company's operating performance and capital structure.
The achievements involved in the listed tourism companies concerning strategic management, brand culture, resources and other
issues of regional value, is relatively little. Jin Xuejun, with economic geography theory, analyzed the effects of different levels of the
market in the domain of economic development, population resources of 7 attractions in the performance of listed companies. Xu
Cheng set Huangshan tourism as an example to build a small number of non-financial indicators with the area listed company
performance evaluation system. In short, a comprehensive evaluation in investment value of tourism listed companies would play an
important role in the management of these companies to enhance tourism, improve the tourism industry's core competitiveness and
enhance the tourism capital of listed companies on the financing capacity of the social aspects of learning. In this paper we attempts
to analyze the non-financial capabilities of tourism listed companies to build tourist class of non-financial evaluation index system,
and do evaluative research class A shares of 22 tourism related companies.
Corresponding author.
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI:10.5503/J.ME.2013.10.004
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2 Tourist Class Investment Value Characteristics of the Listed Companies
Compared with the traditional manufacturing industries, tourism industry has some unique charcaters with depending on public
resources, the diversity of tourism products, tourism market variability and the tourism industry chain interaction, tourism external
economy. Therefore, travel companies not only have general characteristics of investment value in listed companies, but also
inextricably linked with the tourism industry.
2.1 Tourism value of monopoly
Tourism resources are the foundation for the development of listed companies. Natural resources directly determines the quality of
tourism products. And the tourism industry's dependence on resources is very difficult for technology to replace, particular scenic
spot listed companies. Resource value in the investment value of the ratio of the composition is more prominent. For hotels, travel
agencies and other service company, relying on its local area resources, to get a steady stream of customers. Therefore, the resource
value is an important part of a tourist class investment value of listed companies. The value of the monopoly of resources constitutes
a tourism monopoly characteristics investment value of listed companies.
2.2 Brand value of cultural tourism
Culture is the soul of tourism, tourism is the carrier of culture. Cultural is the key factors to create the brand and enhance the
competitiveness of the tourism listed companies. Consumption activities in the tourism, the demand of tourist for spiritual and
cultural aspects occupy a large proportion, and effect the overall situation. It is an advanced and complex needs. Brand value is the
sustainable development cultural resources of tourism companies listed companies and the dominance advantage.
2.3 Difference between service value and customer value
For different individual needs of tourists, tourism listed companies need to provide more careful and considerate of differentiation,
detail-oriented, user-friendly travel service product. Therefore, different service values created by travel companies are different, that
is a trend opposite sex. Similarly, travel companies need to respond to the diversification of customer needs. To view each customer's
needs as independent individuals, transfer the management focus from the customer's overall value to the different levels and needs
of the customer's individual value. Breaking the general non-discriminatory, good value for money business philosophy, customer
value based on customer needs reflect the difference.
2.4 The scale of sedimentation value
In general, tourism listed companies will put a lot of money into the early infrastructure construction, and this part of the early
large-scale investment funds constitute its sunk costs, the corresponding value of its listed companies constitute a tourism investment
value of the precipitation value. Therefore, tourism investment value of listed companies with the size characteristics.
2.5 Outside of the tourism economy
Travel listed companies, especially scenic resource investment behavior of companies showing significant externalities, which
includes the external diseconomies and the external economy. Travel outside of listed companies mainly for the tourist economy of
consumption can not only bring benefits to local tourism, and local residents and businesses also benefit from it. In addition, the
promotion of tourism improves the overall image of the local visibility, thereby contributing to the development of local tourism and
the enterprise in business destination get benefits from the promotion of the image.Travels outside of listed companies are not mainly
for the economic development of resources in ecological and environmental problems. First, the development of tourism, led to the
local consumption of water, energy and other limited resources, but also created a lot of garbage, but also seriously polluted the local
environment, directly or indirectly, pollute the tourism landscape. Secondly, the influx of tourists led to conflict and impact between
the local culture and foreign culture.
3 The Ability of Non-financial Investment Value Analysis
3.1 Management capacity within the company
Tourism listed company's core tourism competitiveness not only to create more customer value, while the industry has its own unique
content and features. Tourism listed company has a special tourism product, its core competence does not mean that the core
technology, in addition to tourism company owned by the geographical resources, the more the company culture, marketing and
service aspects of the unique advantages. The operating value of tourism related companies is in the following three aspects. First,
the resource value is an important part of the investment value of listed companies, which do resources management and
development of tourism companies, as the resource value promoting, it will have a stronger competitive ability in the development
process, thus better development space and a higher level of profits, better performance for our shareholders returns. The stronger
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ability to master the assets of the company, the stronger its monopoly position, will receive a lucrative and stable. Secondly, tourism
is the pursuit of mental health and entertainment, high-quality part of life. Tourists not only need to the functional utility of tourism
products, such as transportation, accommodation, but also need the emotional effects provided by tourism products, such as
high-quality experience for tourists, and provides utility by a well-known brands. Therefore, the brand-building is much more
important for tourism products. Third, tourism information technology building has become an important development tool of
tourism listed companies, also with international standards, participate in international competition. Among them, the hotel offers
internet access services, hotel online sales has gradually become an important sales channel; and medium-sized travel agencies can
use information management systems and business management systems, and information and services through the Internet; scenic
area is the use of real-time monitoring system and other information technology area of online marketing can also be promotional
activities. Thus, the level of information is one positive indicator of the evaluation of tourism investment value of listed companies.
3.2 Regional value
Travel companies where the regional environment, including regional economic development level, geographical location and local
government support policies, they have a great impact on its growth. First, regional economic development which restricts the
development of local tourism related companies, including sophistication of supporting infrastructure, social economy, the level of
consumption and disposable income and other factors. Regional economic development not only determines the level of the local
tourism supply, economic development itself can exert a strong attraction for tourists. The higher the level of regional economic
development, the greater the attraction of tourists. Second, the importance of location, travel company's geographical location, the
size of the economic value of tourism is not necessarily proportional with the value of tourism resources, but depends largely on
consumer market within tourism location. If the tourism resources of the blocking traffic, and out of inconvenience, the
psychological concerns of both the increase in tourists, but also the distance between the time-consuming and cost too much. Third,
local government support policies to a certain extent, promoted the tourism development of the company.
3.3 Environmental value
Environment value of tourist companies can be assessed from the environmental capacity, environmental monitoring and protection
of investment, environmental restoration and so on. Environmental capacity is the maximum load of pollutants in a given
environment, there the natural ecological structure and normal function is not compromised, in premise that the quality of human
environment does not decline. When the tourist activities exceed the maximum capacity of the environment, the region's ecological
balance and normal function of the environment will be destroyed. Environmental monitoring in environmental protection is also
more critical. Carrying out area environmental monitoring, could control environmental problems timely in the tourist areas, protect
the natural environment against damaged. Environmental monitoring and protection of investment, not only get the rational
development and protection of tourism resources and the environment, but also promote the sustainable development of tourism
related companies. To achieve a virtuous circle and the company's sustainable development, tourism companies will have a certain
class of environmental recovery, reconstructing damaged or degraded ecosystems, ecosystem restoration, and functionality of a
virtuous cycle of the process.
3.4 Evaluation system construction
According to the above analysis, AHP is used to determine the travel of listed non-financial investment value of evaluation index
weights, to establish tourism investment value evaluation system of non-financial listed companies (table 1).
Table 1 Non-financial listed companies in tourism investment value evaluation system
Target
layer
Rule layer
Weight
W
Sub-criteria layer
Weight
Program level
weight
of A
W
Ornamental
value
of
recreational D1
0.2967
The value of history,
Travel
companies
the value of
non-financial
Resource value
Business value
B1
C1
culture and science and
0.7306
0.7306
art D2
Entertainment value D3
Resource
investment
capacity D4
A
Brand value C2
19
0.1884
0.1382
Carrying
0.0728
0.0261
Popularity D5
0.0877
Reputation D6
0.0356
Market Impact D7
Promotion value
0.0810
C3
0.0144
The level of information
D8
GNP D9
0.0672
Infrastructure
Region economic
development C4
Consumption level D11
Pe-capita
Regional Value
B2
Location C5
0.2583
Local government
support policy C6
Environmental
capacity
0.1047
0.6370
C7
Environment
values
investment
0.2583
C8
0.0115
0.0115
Market distance D13
0.0310
Traffic position D14
0.0126
Accessibility D15
0.0051
Support
from
local
government D16
Environmental capacity
D17
the
monitor/protection
0.0810
isposable
income D12
0.1884
Environmental
0.0299
sophistication D10
0.6370
0.0592
investment
Environmental
0.0197
0.0516
of
0.0209
monitoring D18
B3
Environmental
restoration
C9
0.1047
Environmental
restoration
D19
0.0085
3.5 Empirical research
As most tourism listed companies do diversify management, some of the company's main business has changed greatly, so this
passage choose A-share listed company as the object of study, with the tourism revenue accounted for more than 40% of main
business income. In addition, in ST Shares abnormal changes occurred in the financial data, which is not comparable and
representative, and there is a big investment risk, therefore, this has removed the ST Shares. Based on the above criteria, we selected
22 travel related companies. The sample data comes mainly from Tsinghua University and the company's annual financial research
database. According to the company's main different tourism business, classified the 22 selected listed companies as tourist class
hotels and restaurants, scenic resources and tourism services to evaluate the three major categories (table 2). Overall, non-financial
investment value of the scenic resource companies has high scores, travel services companies owns an obvious polarization, the score
of hotels and restaurants like the company's is generally low, in addition to Jinjiang Shares.
Table 2 Travel value of non-financial listed companies evaluation form
Hotels / Restaurants
Score
Scenic resources
Score
Travel services
Score
Xiang'eqing
70.80
OCT
95.67
China International Travel
94.88
Jin Jiang
90.19
Lijiang tourism
85.04
CYTS
90.90
Jinling Hotel
70.26
Tibet Tour
85.65
China united travel
71.68
Quanjude
80.64
Mount Emei
92.64
Shoulv
89.07
Huatian Hotel
50.03
Huangshan tourism
95.05
Beijing Tourism
70.98
Xi'an Food
60.69
Guilin Tourism
86.80
Xi'an Tourism
60.51
Century Plaza Hotel
41.21
Dalian Sun Asia
60.99
Three Teso Road
55.68
Dongfang Hotel
43.51
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From the perspective of specific companies, the score of higher brand companies is relatively high, such as: OCT, Huangshan tour,
Emeishan, China Travel, CYTS, Jinjiang Shares, from results analysis, high score of non-financial resources in the scenic resource
companies mainly in the value of monopoly advantage, in the monopoly value of the resource, watch and recreational value of
weight of up to 0.2967, in this category, the area company's score is relatively high. Huangshan Tourism score of 95.5 points, the
highest score. This is because the location of each area is different, their own natural resources can not be copied, so the higher the
value of its monopoly. Brand value, reputation and image of the planning area have done better, so the score is relatively high.
Promotion in the network, both scenic class company itself, or travel agency, and even a hotel's web site can not be separated on from
the location of publicity and promotion of scenic resources, scenic resources, so the influence of these companies are relatively large.
Secondly, non-financial investment values in the travel services companies are quite different. Mainly for geographical differences,
this is dependent on the resources of its value of the different regions. Finally, non-financial value of the hotel and catering
company's mainly relevant with resources and scenic values, distance, and the level of economic development.
4 Conclusion
With the rapid development of tourism and low carbon economy, tourism investment value has been paid more attention in China.
With the AHP method the above factors were used to build non-financial investment value evaluation model of TLC, then major
tourism listed companies are selected to test systemly investment value. The result shows that the scores of companies are relatively
with brand value and resources value. It highlights that tourism listed companies should develop multi-field strategy to enhance the
financing capacity in social capital of tourism enterprises, to enhance the core competitiveness of the tourism industry, and to provide
a decision-making for investors and managers of listed companies.
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