E-tourism: an Innovative Approach for the Small and Medium-sized Tourism Enterprises (smtes) in Korea

This paper deals with e-tourism, innovation and growth. The Internet is revolutionising the distribution of tourism information and sales. The Korean small and medium-sized tourism enterprises (SMTEs) with well-developed and innovative Web sites can now have “equal Internet access” to international tourism markets. This paper examines problems and solutions related to electronic commerce in the tourism industry and suggests recommendations for successful e-commerce strategies in tourism to be applied by the industry and the government in Korea. Introduction The definitions of tourism innovation (e.g. product, service and technological innovations) remains unclear, with the exception maybe of the Internet. New technologies can produce an essential contribution to tourism development. For tourism businesses, the Internet offers the potential to make information and booking facilities available to large numbers of tourists at relatively low costs. It also provides a tool for communication between tourism suppliers, intermediaries, as well as end-consumers. OECD (2000) revealed that the advent of Internet-based electronic commerce offers considerable opportunities for firms to expand their customer base, enter new product markets and rationalise their business. WTO (2001) also indicated that electronic business offers SMEs the opportunity to undertake their business in new and more cost-effective ways. According to WTO, the Internet is revolutionising the distribution of tourism information and sales. An increasing proportion of Internet users are buying on–line and tourism will gain a larger and larger share of the online commerce market. Obviously, the Internet is having a major impact as a source of information for tourism. However, the SMTEs are facing more stringent impediments to the adoption of new information technology, in particular, e-business. Part of the problem relates to the scale and affordability of information technology, as well as the facility of implementation within rapidly growing and changing organisations. In addition, new solutions configured for large, stable, and internationally-oriented firms do not fit well for small, dynamic, and locally-based tourism firms. Despite these challenges, SMTEs with well-developed and innovative Web sites can now have “equal Internet access” to international tourism markets. This implies equal access to telecom infrastructure, as well as to marketing management and education. According to a UN report (2001), “it is not the cost of being there, on the on-line market place, which must be reckoned with, but the cost of not being there.” It is certain that embracing digital communication and information technology is no longer an option, but a necessity. Thus, one of the most important characteristics of