Cost Leadership or Differentiation? Applying Porter’s Competitive Strategies in Ecotourism: A Case Study of Mkhuze Game Reserve.

Mkhuze Game Reserve was proclaimed in 1912 and is one of the oldest extant protected areas in South Africa. The game reserve provides six categories of tourist accommodation within the Mantuma rest camp, and at a separate exclusive, bush lodge overlooking the Nhlonhlela Pan. Porter (1980) developed...

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Bibliographic Details
Main Author: Michael R. Brett
Format: Article
Language:English
Published: AfricaJournals 2018-02-01
Series:African Journal of Hospitality, Tourism and Leisure
Subjects:
Online Access:https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_39_vol_7_2__2018.pdf
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Summary:Mkhuze Game Reserve was proclaimed in 1912 and is one of the oldest extant protected areas in South Africa. The game reserve provides six categories of tourist accommodation within the Mantuma rest camp, and at a separate exclusive, bush lodge overlooking the Nhlonhlela Pan. Porter (1980) developed three generic strategies for business and argues that any business can focus on cost leadership, differentiation, or can adopt a cost leadership focus within a differentiation strategy, or a differentiation focus within a broad cost leadership strategy. This study analyses tourist preferences for hutted accommodation in a state-run game reserve in KwaZulu-Natal and concludes that even where superior accommodation facilities were available, customers expressed a preference for more affordable accommodation. The low-cost accommodation options, even where they involve a shared kitchen and ablution facilities, obtained a higher occupancy rate than for the more exclusive safari tents, which include en-suite bathrooms and separate kitchens. Tourists showed no marked preference for the newer accommodation units, and the two most popular categories of accommodation were constructed from 38 to 57 years ago. The 2-bed and 4-bed safari tents, which are situated in the bush and which offer greater privacy and closer contact with wild animals, only achieved a combined occupancy rate of 46%. accommodation units which accommodate from six to eight tourists, displayed low occupancy rates of 44% and 38% respectively, which reflects of the size of the average touring party. The study reveals that although the section of the market which is attracted to Mkhuze is concerned with cost, accommodation categories which include television and other amenities achieved the highest occupancy rates. This suggests that tourist preferences have changed over time, and facilities, which were at one time considered to be incompatible with protected areas, are now desired by tourists. The differentiation focus, in the example of the Nhlonhlela bush lodge, recorded a low occupancy rate, but the study concludes that this is due to the current tariff system where the minimum charge for the facility is for six people, and is not due to a failure of the differentiation focus
ISSN:2223-814X