The role of small tourism businesses in urban tourism development: A case study of Indianapolis

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Date
2010-06-01
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[Bloomington, Ind.] : Indiana University
Abstract
The problem of this study was to construct a testable model by investigating the dimensions of small tourism businesses and to explore if these characteristics predict support of tourism development in Indianapolis, Indiana. Based on the review of literature, a number of variables were identified for use in the study. A proposed model was developed and small tourism businesses were examined in terms of the type of business activity, type of business ownership, motivation of business ownership, financial success, projected growth, business geographical location, its customer base, and the business' level of community involvement. To answer the research questions, an instrument was developed and administered to small tourism businesses located in one of the six Indianapolis cultural districts (Broad Ripple Village, Wholesale, Fountain Square/Southeast Neighborhood, Downtown Canal, Mass Avenue, and Indiana Avenue Cultural District). For this project, a small tourism business was defined as a business with less than 40 full-time employees, very small market share, annual revenue less than $250,000, or limited infrastructure and assets, and was categorized as one of the following establishments: (a) art galleries or studios, (b) restaurants, (c) historic attractions, (d) museums, (e) performing/visual arts, (f) unique/gift shops, and (g) accommodations. A total of 152 surveys were used in the analysis, which represented a 48.2% response rate; 315 small tourism businesses fit the sample criteria. The initial analysis of the data was conducted using SPSS and produced a number of descriptive statistics describing small tourism businesses in Indianapolis. This information was used to better understand the nature of owners and managers of small tourism businesses. Factor analysis procedures were conducted using principal factors extraction with Promax rotation, resulting in a five-factor solution. A multiple regression analysis was then used to distinguish whether support of tourism development could be predicted by the small tourism businesses' financial success, business performance, owner motivations, perceived self-image, owner values, business activity type, business location, and business ownership type. Based on the conclusions of the study, evidence was not found that this set of independent variables predict the support of tourism development. Results indicate that only 5.8% of support for tourism development by small tourism business owners could be explained by this set of independent variables. The ANOVA table and the standardized coefficients, or the converted beta weights, were examined to review which, if any, of the independent variables contributed to the explanation of the dependent variable. Both data reports support the conclusion that this set of independent variables did not predict the level of support of tourism development by small tourism businesses. From this study a better understanding of the dimensions of small tourism businesses and support for tourism development was reported. This research should be used as a foundation to expand and continue work on future theory development and modification in the areas of small business and tourism.
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Thesis (PhD) - Indiana University, School of Health, Physical Education and Recreation, 2005
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support for tourism development, urban tourism, small tourism business
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Doctoral Dissertation