“Stakeholder” has first appeared in 1963 (Kumar, 2016 ; Parmar, et al. 2010). (Freeman, 1984)
introduced the stakeholder theory defined that any
person, entity or institution who are relevant or whose get the impact and can
be influenced among by the result of project achievement or completion.
stakeholder management process includes identifying the stakeholders, find out
what their wants and expectations, determining their power that could influence
the project and develop a plan to communicate and with different stakeholders.
understood and negotiated are the determining factor which minimizes the
conflict and increase the ability to achieve the project.
case study, the stakeholder management in Ocean Hotel would be discussed.
First, Ocean Hotel background would be introduced. Then, the relevant stakeholders
of this project would be identified and analyzed. Finally, the management of
critical stakeholders would be discussed in the tourism industry.
2. Background of Ocean Hotel
The Ocean Park, a Hong
Kong’s home-grown marine theme park, it was located on the south side of Hong
Kong Island. Since its opening in 1977, the Park had served over 85 million
visitors. Ocean Park had established itself as a major tourist attraction in
Hong Kong endeared by residents and tourists alike that become part of the
heritage of Hong Kong (Ocean Park, 2017).
In early 2005, Ocean Park
management announced a new Master Redevelopment plan for HK$5.5 billion to
change and redevelopment the park. It was a long-term plan for future
development. The aim was to maintain commercially and financially sustainable
in changed and complicated circumstances.
In this plan, it proposed to
develop three themed hotels within Ocean Park outside. Each of the hotels has a
unique theme and target with the different customer segment. It could extend
the tourist stay time, increase the convenience to the customers who visit
ocean park. In the long terms, it creates synergy and competitive advantage
with the Park in the region.
The Hong Kong Ocean Park
Marriott Hotel is a premier international resort destination. It was the first
phased hotel of the three hotels that would be launched in 2018.
3. The Stakeholders of Ocean Hotel
Stakeholders play a decisive role in helping identify
and tackle the priorities. In a business environment, stakeholders could be
identified and classify into internal stakeholders and external stakeholders (Freeman, 1984). Internal
Stakeholders are individual or groups within the hotel that responsible the
internal change. They have significantly impacted on the decisions and
performance of the project. On the other hand, external stakeholders are an
individual or groups outside the hotel who responsible for the external change.
They are indirect affected or impacted by the project. The stakeholders of
Ocean Hotel project are shown in Figure 1.
Stakeholders of Ocean Hotel Project
4. Stakeholder analysis and management
The stakeholder analysis is one of the modern
segmentation methods used in project management (Kivits,
2011; Mariconda et al., 2015). Project manager used stakeholder analysis
to identify the most critical stakeholder groups with direct and indirect
influence on the organization (Frooman, 2002).
Savage et al. (1991) defined that an
organization-centric strategy which offers a way to classify stakeholders
according to the potential for threat and potential for cooperation. There are
classifying stakeholders into four types as shown in Figure 2.
Project stakeholder type framework (Adapted from Savage et al., 1991)
5. Stakeholder Management
(Husted, 1998) described that stakeholder management
as a method to react to the attention of its stakeholders. That is important
because those stakeholders can affect the plans and activities of the
organization. The project manager needs to prioritize and communicate with
different stakeholder through different strategy.
5.1 Involve the
There is the ideal type of stakeholders who with low
potential for threat and a high potential for Ocean Hotel. They support the organization’s
goals and actions that include the Ocean Park management, employee, and parent
companies. Other supportive stakeholders may consist of suppliers, residents
near Ocean Park and the public. By involving supportive stakeholders in
relevant issues, executives can maximally encourage cooperative potential.
Government – The Hong Kong Tourism Board (HKTB)
The tourism industry is a significant pillar of the
economy of Hong Kong. In 2015, it contributed to 5 % of Hong Kong’s GDP (Council, 2017). HKTB aims to
promote HK tourism industry that attracts overnight tourist from all around the
world to maximize the economic benefits of Hong Kong is their focal point in
Ocean Park as a heritage of Hong Kong and was awarded
the “10 Most Popular Amusement Parks in the World” (Ocean Park,
It is the opportunity for Hong Kong tourism industry.
When there have a new Ocean Hotel was opened inside
the park, managed by Marriott that a 5-star hotel management (Marriott International, 2017). It enhances the
overall attractiveness as a tourist destination to attract more diversified
tourists to Ocean Park and accommodation overnight in Hong Kong.
Monitor the Marginal Stakeholder
stakeholders, such as customer and shareholders are low potential for threat or
cooperation. These stakeholders’ interests are narrow and specific. They are
not concerned about most issues.
Some of the models
suggest a monitoring strategy as specific issues could cause these stakeholders
to change category, increasing their potential threat (Karlsen, 2002). For example, product safety and
pollution issue may activate them causing their potential for either threat or
cooperation to increase. Monitoring helps manage marginal stakeholders executives
can minimize the organization’s expenditure of resources.
owners/shareholder and Customers are the critical stakeholders to affect
financial performance in the hotel business (Lo, 2013).
The revenue and
return of the Ocean Hotel is the most concern by Owner/investor. The project
manager should appropriate let them know the project roadmap and status. The
financial performance of a hotel may be influenced by hotel owner when they
highly degree involvement and the implement of organization strategy.
The customer is the direct impact
on hotel’s performance because hotel’s mainly income comes from room sales.
They concern the service and facility of the Hotel in future, so it is nothing
to action in this period. However, if there have any
negative issue appear during the construction status, the customer will have a
negative perspective to affect their willingness to visit in the future. Ocean
Hotel could regular to announce the information to the public. It also a
marketing strategy for encourages customers to look forward to the hotel
Defend against the Non-supportive Stakeholder
These types of
Stakeholders are the high potential for threat and low potential for
cooperation. Defensive strategy is the best strategy for manage non-supportive
stakeholders initially. Although this strategy may be necessary initially, the
project manager should try to find ways to change the status of critical
stakeholders. For Ocean Hotel, typical non-supportive stakeholders are
environmental unions and its competitor – Hong Kong Disney.
For environment unions,
the most concern must be the environmental ecology is destroyed by the new
hotel. For Ocean Park, prevent the destruction of environment would be the big
challenge for a nature theme park. To balance this issue and prevent the
opposition from an environmental union is essential. Ocean Hotel used the
sustainable, compatible and green design to minimize the destruction of
surrounding environment. All of Ocean Hotel’s design features, building
separation, extensive landscaping are mitigate the visual impact of surrounding
Competitor (Hong Kong Disney)
Disney is one of
global brand themed park hotel located in Hong Kong which targets the families
with children. It is the same market segment with Ocean Park. Disney has the
own theme hotel inside the Park. Visitors could stay for the overnight after
visited in the park that encourages them more expenses inside the park.
Collaborate with the Mixed Blessing
The mixed blessing stakeholder has high on both
potentials for threat and cooperation. For example, MTR Corporation Ltd,
Restaurant near Ocean Park, supplier, tour companies and travel agencies, etc.
(Savage, 1991) the model suggests that collaborate
with those organization stakeholders. The project manager should maximize the
stakeholders’ cooperation that decreases probability for potentially
threatening stakeholders to oppose the project.
Joint ventures or collaborative efforts are popular
possible. An effective collaboration builds up the long-term relationship
between stakeholders and Ocean Hotel. In contrast, it could become a
non-supportive stakeholder easily. Ocean Hotel could interact with its
stakeholder to create synergy and benefit for both parties.
5.4.1 MTR Corporation
New MTR South Island line was operated starting in
2016. The MTR connect Ocean Park to all 18 districts (MTR, 2017).
It allows traveller from HK airport go to Ocean Hotel directly that more
convenience and reduces transportation time for guest.
Collaborate with MTR to promote special package or
commemorative ticket that combines MTR ticket, Ocean Park passes and hotel Room
coupon as an incentive to increase the number of visit. It also attracts
traveller and some local families for holiday to increase profit for both
is a tool that can help project manager and organization, to achieve the
ultimate goal of a successful project. As (Wolfe
& Putler, 2002) stated that identifying stakeholder is a tricky thing.
However, to continue to survive of an organization that establishes goals for
maintaining the relationships with existing and potential stakeholders as part
of a process of ongoing strategic management.
The project manager directs to responsible
for the proper implementation of the project that has many uncertain
conditions. One-on-one negotiate is a timely and expensive method, but this
gives the project manager a deep understanding of the opportunities to
cooperate with other parties concerned. It also provides a better understanding
of decisions taken by project leader on the degree of commitment of stakeholder
in the project their grouping and their representatives.