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TLH307 International Tourism & Hospitality Management - Urban Tourism

TLH307 International Tourism & Hospitality Management Urban Tourism

Critical Evaluation of Customer Satisfaction of Transportation Services in Hong Kong

Muhammad Norfarid Bin Farali Khan Student ID: 089101850
BSc (Hons) International Tourism and Hospitality Management The University of Sunderland

Date of Submission: 18-Jul-2011 2
Muhammad Norfarid Bin Farali Khan BTTD1 0907A Bachelor Of Science(Hons) In International Tourism and Hospitality Management

TLH307 International Tourism & Hospitality Management - Urban Tourism

Table of Contents
1.0 INTRODUCTION ......................................................................................................................... 4 2.0 LITERATURE REVIEW .............................................................................................................. 6 2.1 Transportation and Tourism ................................................................................................... 6 2.2 Transportation in Hong Kong ................................................................................................. 7 2.3 Customer Satisfaction ............................................................................................................. 8 3.0 METHODOLOGY ...................................................................................................................... 12 4.0 ANALYSIS .................................................................................................................................. 13 4.1 Buses ...................................................................................................................................... 13 4.2 Taxi .......................................................................................................................................... 15 4.3 Mass Transit Railway ............................................................................................................ 16 4.4 Overall comparison of public transport ............................................................................... 18 5.0 CONCLUSION ........................................................................................................................... 20 6.0 REFERRENCES........................................................................................................................ 21 7.0 APPENDICES ............................................................................................................................ 23

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1.0 INTRODUCTION
Conducting research and analyzing the tourism industry have been a popular trend in both academic, business and the government industries in the recent years. Tourism affects all kinds of industry.In these recent years the tourism industry has emerge as one of the largest industry in the world. This could be backed when statistics states that the tourism industry contributed more than 11% of the world GDP, created more than 200 million jobs around the world (Sanya, 2011). It also states that 700 million people are transported around the world travelling to different places. The tourism industry really affects the standard of living globally. These industries have been increasing in a vast speed in the recent years and tourism organisations have to frequently keep up to date with technological advancements. Technological advancements and the tourism industry should grow along side each other as they complement each other. Technological advancements will provide ample advantages to tourists’ service providers and to the tourists themselves. The vast growing of technology and the increasing popularity of tourism industry created a term which combines both aspects, that is e-tourism. The existence of e-tourism made the process of transaction much more easily compared to the past (Buhalis, 2003). Transportation plays a major role in the tourism sector. The transportation industry can be an independent industry. It can survive solely by providing transportation service to commuters. On the other and the tourism industry would face extreme difficulties without the existence of the transportation industry. The tourism cannot survive without transportation. Even in areas which are not a popular tourist destination would be flourished with the presence of good infrastructure and transportation service. Transportation, though an important aspect of the tourism industry, poor planning and management would cause destruction to areas that are known for its natural characteristics. Transportation would make an are accessible but at the same time due to easy access, the number of tourist would increase destroying the natural aspect of the said destination. In this research paper the transportation aspect would be discussed. The standard of the transportation service would determine the number of tourist arrival and satisfaction in a particular destination. Collecting and analyzing customer satisfaction

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Muhammad Norfarid Bin Farali Khan BTTD1 0907A Bachelor Of Science(Hons) In International Tourism and Hospitality Management

TLH307 International Tourism & Hospitality Management - Urban Tourism

helps the transport organization to improve on the standard of the transportation services in order to attract more tourists. This research paper takes Hong Kong as a case study. Customer satisfaction of the transportation service in Hong Kong would be analyzed and discussed.

Hong Kong houses about 7 million residents. Central in Hong Kong is one of the most densely populated commercial districts in the world. Due to the low supply of flat and in Hong Kong, it houses more than 7000 skyscrapers build on high rise lands. It is a challenge for the transportation community to ensure that every part of Hong Kong is accessible by the transportation service. Due to heavily populated areas in Hong Kong, the government must ensure that creation of a dynamic transportation system is important in order to match the growing population of Hong Kong. The cities are able to organize various mode on transportation for the residents and tourists residing in Hong Kong.

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Muhammad Norfarid Bin Farali Khan BTTD1 0907A Bachelor Of Science(Hons) In International Tourism and Hospitality Management

TLH307 International Tourism & Hospitality Management - Urban Tourism

2.0 LITERATURE REVIEW
In this research paper, customer satisfaction on the transportation would be discussed. Literature review will cover areas such as the impacts of transportation in the tourism industry. The importance of customer satisfaction and how it affects the transportation services will also be discussed taking Hong Kong as a destination. Further research on Hong Kong depicting the fundamentals of urban tourism and the types of public transportation would be discussed in the literature review.

2.1 Transportation and Tourism The availability of transportation sector in the tourism industry maintains connections between destinations and locations in the destinations. The role of transportation is deemed as one of the most important aspect of the tourism industry. The existence of airline industry has greatly made travelling around the world much more easily compared to the past. The wide usage of motor vehicles made every location more accessible. This improving trends of transportation coupled the increasing affluence of tourists are the factors involve in the advancement in the tourism industry.

There are various impacts of transportation in the tourism industries. Negative and positive impacts occur in the widely used of the transportation service affecting the tourists’ destination. Due to ever increasing in the number of commuters, adverse impacts such as pollution and environmental degradation sets in (Croall, 1995). Croall, (1995) clearly state how the transportation service causes air and water pollution at the same time causing mass traffic congestion making a destination an undesired location to reside and run businesses. Due to poor planning and lack of poor visitor management, transportation could destroy the destination instead of increasing the accessibility of the area (Croall, 1995).

The role of transportation in the tourism industry is basically providing services in transporting people to the desired destinations. The transportation system and service of a location or country have great impact on its ability to provide a good experience for the tourists (Page and Lumdson, 2004). This aspect of tourism will

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influence the tourists’ choice of holiday, destination and their travel modes. Different destination with different characteristics would vary in terms of accessibilities and public transportation systems (Page and Lumsdon, 2004).

Organisation for Economic Co-operation and Development also known as the OECD plan out and analysed the major impacts of the transportation on the environment (Button, 1993). The OECD (Button, 1993) highlighted how land transportations, the rail and the roads have consequences and influences on the natural aspect of the destination. Transportations cause massive air pollutions if not controlled emitting green house gases coupled with the increasing in industrialisation. This information is further supported when statistics shows that transportation consumes about 54 percent of the world oil consumption (Peters, 2011). Massive air and noise pollution are caused by the engine sounds from the heavily usage of cars, motorcycles, plane and many other types of vehicles (Buckley, 1996)

2.2 Transportation in Hong Kong Hong Kong possesses a well develop and dynamic public transportation services. Due to its lack of availability of flat lands, Hong Kong have to accommodate its buildings and infrastructure in uneven terrains. This affect and make the transportation service difficult. In spite the disadvantages Hong Kong faced, they still manage to organize and manage a good transportation system linking all the districts making it accessible for commuters and automobile owners. Statistics shows that people in Hong Kong be it the locals or tourists prefer commuting via public transportations (indiaserver.com, 2008).

The public transportation in Hong Kong includes the likes of buses, mini-buses, rails (MTR), taxies and ferries for sea transportation. The Hong Kong transportation department the usage of Octopus Card, which make the payment of transport fares easy and comfortable. The usage of the Octopus card is in operation since 1997 and enables users to pay for its buses and Mass Train Railway (MTR). This function provides a fast and efficient method when users pay their transportation fares.

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Muhammad Norfarid Bin Farali Khan BTTD1 0907A Bachelor Of Science(Hons) In International Tourism and Hospitality Management

TLH307 International Tourism & Hospitality Management - Urban Tourism

According to Indiaserver.com, the Olympics committee, state Hong Kong as an accessible city for tourists as it possesses good transportation system. Appointed as the co-host city to Beijing for the Olympics in 2008, Hong Kong experience heavy influx of tourists that flew from all over the world. The Olympic committee ranked Hong Kong International Airport as one of the best airport in the world which have more than 160 flights arriving and departing from all across the globe during the Olympic season in August 2008 (Indiaserver.Com, 2008). It was later said due Hong Kong efficient transportation system such as the buses, taxis and MTR, makes the overcrowded city accessible for tourists to every locations linking its road and railway to mainland China. The existence of MTR made travelling in Hong Kong much easier and cheap. The railway links most major districts of Hong Kong.

The Olympic committee evaluated other modes of transport in Hong Kong. Other than the MTR, the other cheapest and convenient ways to travel in Hong Kong with the usage of Octopus card would be the tramways and the public buses. The disadvantage of travelling via tramways would be because of it its limited to few parts of the Hong Kong island. The upper deck of the tramways provides a scenic view for its commuters. The buses and mini buses is another mode of public transport in Hong Kong. The public buses also provide the ability for commuters to enjoy scenic views as it has a double and single deck buses running through the towns of Hong Kong. Tourists in Hong Kong are able to enjoy ferry rides which links to the different ports of Hong Kong Island.

2.3 Customer Satisfaction Customer Satisfaction is an important factor in determining a good outcome for a marketing practice. Evaluating customer satisfaction is an important strategic tool in every profit making organization. When there is an increase in customer satisfaction, the ability for the organization to gain ore profits would increase (Anderson, Fornell, and Lehmann, 1994). Increasing customer satisfaction would increase more

customers' loyalty among customers. Customers are more willing to pay for the services rendered by the organization (Anderson, Fornell, and Lehmann, 1994).

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When there is increasing in customer willingness to spend for the particular product would increase the future revenue earned. This was due to the decrease in cost of marketing and looking for more customers. This points sum up that customer satisfaction is for the better of the customer and the organizations financial growth. Customer Satisfaction is an important factor in determining a good outcome for a marketing practice. Evaluating customer satisfaction is an important strategic tool in every profit making organization. When there is an increase in customer satisfaction, the ability for the organization to gain ore profits would increase (Anderson, Fornell, and Lehmann, 1994). Increasing customer satisfaction would increase more

customers' loyalty among customers. Customers are more willing to pay for the services rendered by the organization (Anderson, Fornell, and Lehmann, 1994). When there is increasing in customer willingness to spend for the particular product would increase the future revenue earned. This was due to the decrease in cost of marketing and looking for more customers. This points sum up that customer

satisfaction is for the better of the customer and the organizations financial growth.

To determine the future profitability of an organization, in the resent it is important for the company to achieve optimum consumer satisfaction (Anderson and Sullivan 1993). Customer should be greatly valued and deemed as one of the assets In order to improve customer

producing revenue for he said organization.

satisfaction in the long term, the organization must first improve the product and services offered (Anderson and Sullivan 1993). Customer satisfactions are brought about through the usage of discounts, rebates and price promotion. Though this items may be used in attracting more customers, it does not guarantee customer satisfaction. Long term customer retention or loyalty is achieved due to superiority of the product and services offered.

Maslow hierarchy of needs is used as a model to determine the needs and requirements of the customers in the transportation industry. Marlow hierarchy of need determines the levels of customer satisfaction in terms of services provided in transportation industry. Abraham Maslow came of with a theory defining the human behavior. The human behavior could be explained through the process of needs

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that satisfy the individual themselves. These needs are psychology, safety, belongingness, esteem and self actualization needs (Perone, 2005). Maslow hierarchy of needs is illustrated in the model of pyramids. The base of the pyramid consists of the most basic needs of the human being that is the safety and psychological needs. Basics needs are leveled at the lowest level of the pyramid because it is the foundation of the human being before he is able to satisfy other needs of his (Perone, 2005)

Marslow Hierarchy of needs in terms of transportation.

Image is obtained from: http://www.nctr.usf.edu/pdf/527-08.pdf

This model clearly shows how human needs are categorized. The ability to evaluate the customers need helps the organization to identify which aspect of needs is more importance when selling product and services (Perone, 2005). In this case the product up for sale would be transportation services. In the part of physical and survival needs of human being in the transportation industry would be the need for safety and security in the transportation service. Personal safety and security of ones belonging is one of the most basic needs. Basic needs include the familiarity with the transport routes, the mode of transport and destination. As we move one level up the pyramid, the needs will evolve to time and waiting time. People would care more about transfers and how long the journey would take to get to one desired destination. In the next level of needs, people would be influence socially (Perone, 2005). They would choose the transport that is accepted socially. Social attitude

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towards the services offered would be an influencing factor. Nowadays, people are more affluent and are bale to afford higher prices in order to satisfy their needs. Thus customer would be looking for the most valued transportation services, the ones that is able to create satisfaction n terms of price. When all these needs are met people would desire better travel experiences and demands more comfort when travelling. People will look for an easy way to travel and need more reliability in the terms of services and the mode of transport provided (Perone, 2005)

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3.0 METHODOLOGY
This research paper aims to critically evaluate the importance of transportation service in Hong Kong. This paper focuses on the customer satisfaction on the mode of transportation. How transportation impacts tourism would also be discussed. Customer satisfaction would be accessed by the usage of survey questionnaires. A sample survey of about 80 to 100 respondent is needed in order to prevent any sampling errors. This research paper applies the fundamentals of a qualitative research method. A face to face interview using semi-structured questions is used to conduct the interview. This interview formats allows interviewees to respond more accurately to the questions given to them. The usage of how and why can be used in the questions without them being steered away from the main points of the questions. Qualitative research method which allows respondents to be more descriptive in their answers is a good way in approaching respondents which does not have the ability in conversing in good English. Some enjoy the abilities in conversing in good English but some do face difficulties in understanding words that are used in questions or survey. There when qualitative survey is carried out, the respondents and interviewers may communicate in a comfortable manner. Interviewers are able to explain and make the interviewee understand of the question given. The respondents will be able to explain clearly when the questions are answered verbally compared to written. The interview questionnaire listed below is also used as a guideline to keep in track with the objectives of the research paper.A quantitative research is also conducted in terms of survey. A survey is given out to the targeted audiences. A sample audience of at least 100 respondents is needed in order to prevent sampling errors and inaccurate data collected. The survey questionnaire would be given out to tourists outside the shopping centres. In the process of doing the survey, it is important that the surveyor does not breech the law and distract people of their freedom. Observation is another method used in collecting data. The surveyor must bear in minds few questions which is used as guidelines. The transportation would be evaluated in terms of price, availability, frequency of waiting, cleanliness, and customer service and comfort level.

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4.0 ANALYSIS
In the analysis part, the survey responses would be discussed and evaluated. As this survey questionnaire focused on customer satisfaction of the transportation service in Hong Kong, the Maslow Hierarchy of needs would be used to evaluate every aspects of the service provided. Customer responses are evaluated and plotted into graphs to depict their preferences in aspects discussed in the transportation sector. The responses collected mostly from tourists in Hong Kong commuting by the public transportations.

4.1 Buses

Is the Buses Tourists Friendly (signboards and Excellent 5% directions)
Good Satisfatory Poor Very Poor 0% 26% 32% 32%

Very Poor Poor Satisfatory Good Excellent

0%

5%

10%

15%

20%

25%

30%

35%

In the survey the respondents are questioned on their satisfaction towards the signboards and direction displayed in bus stations. Majority of the respondents thinks that the directions shown in bus stationed belongs in the range of satisfactory and poor both amounting up to 32% of the respondents reactions each. 26% of the respondents believes that the bus stations in Hong Kong are tourists friendly and helpful in assisting passengers in choosing the right bus number to the desired locations. None of the respondents thinks that the buses have poor directional signboard. The reasons for the above response would the high volume of pedestrians in the streets of Hong Kong. The signs are not displayed are not clearly visible by commuters. This causes difficulties for tourists as they do not know where to look for signs and directions. This could be improved by places bus stop and directional signs high up as it can be seen for far or during times when its crowded with people.

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60% 50% 40% 30% 20% 10% 0%

What do you think about Buses? 53% - Price
37%

Very Poor Poor Satisfatory

0% Very Poor

0% Poor

5%
Satisfatory Good Excellent

Good Excellent

53% of the respondents thinks that travelling by bus are cheap compared to other mode of transport. 5% of the respondents think that the fares imposed for travelling by bus may be satisfactory. None of the respondents thinks that travelling by bus is unaffordable.

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

What do you think about Buses? - Customer 42% Service
37%

Very Poor Poor

Satisfatory
Good 11%

5%
0%

Excellent

Very Poor

Poor

Satisfatory

Good

Excellent

The customer service aspect of the Bus department will also be evaluated through the survey questionnaires. Majority of the respondents thinks that the customer services of the bus services are only satisfactory. 5% of the respondents have totally different mindset towards the customer service aspect of the bus services which only deserve “very poor”. A large number of the respondents believes that the customer service aspect of buses deserve to be in the “good” category.

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What do you think about Buses? - Frequncy Of Waiting
60% 50% 40% 30% 20% 10% 0% Very Poor Poor Satisfatory Good Excellent 0% 5% 5% 53% Very Poor Poor

32%

Satisfatory
Good Excellent

Frequency of waiting time would means the time commuters have to wait for the buses if they happen to miss it. This would be resulted from various reason ranging from traffic volume and poor service.53% of the respondents agree that the frequency of waiting for buses in Hong Kong is just satisfactory and 32% believes that is it good. 4.2 Taxi

What do you think about Taxi? - Frequncy Of Waiting
Excellent Good Satisfatory Poor Very Poor 5% 26% 11% 21% 32% Very Poor Poor Satisfatory Good Excellent

0%

5%

10%

15%

20%

25%

30%

35%

32% of the guest believes that taxis in Hong Kong only deserve a satisfactory level for the waiting time. 26% believes that taxi in Hong Kong has poor frequency. 21% believes its good. The presence of mixed reactions between the respondents shows that the frequency of waiting for taxis varies in different at different times. Peak hours, where traffic congestions occurs would make frequency of waiting for taxi hinger,

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What do you think about Taxi? - Comfort Level
40% 35% 30% 25% 20% 15% 10% 5% 0% 37%

32%
21%

Very Poor Poor

Satisfatory
Good

5% 0% Very Poor Poor Satisfatory Good Excellent

Excellent

In terms of comfort level of taxis, 37% of the respondents thinks its excellent and 32% believe it is just satisfactory. Taxi is believe to provide comfort to accommodate its high. Taxi service is expected to be comfortable for commuters as they do not have to share the vehicle with other commuters. They are able to enjoy privacy which are entitled to taxi commuters. Some may be believe that its comfort level are deemed as satisfactory only because of the traffics congestions on the road. 4.3 Mass Transit Railway

What do you think about MTR? - Price
11% 5% 5% 5% 68% Very Poor Poor Satisfatory Good Excellent

MTR are able to achieve high customer satisfaction in terms of the fares. 68% of the commuters surveyed believe that the fares imposed for travelling with MTR is excellent. MTR is considered as one of the most worthwhile public transport in Hong Kong as it is value for price and are able to connect to many districts in Hong Kong.

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What do you think about MTR? Frequency of Waiting
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 47% Very Poor Poor 26% 16% 5% 0% Very Poor Poor Satisfatory Good Excellent Satisfatory Good Excellent

MTR received 47% the respondents who believes the frequency of waiting for MTR is good and 26% says its excellent. In overall, respondents believe that they do not have to wait long for the next train if they miss one. This was due to the arrival of every trains is calculated and measured. The number of trains running in the railway ensures that the trains arrive at a standard frequency of timing. This is to minimize waiting time and the trains to be overcrowded with passengers.

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4.4 Overall comparison of public transport

Mode of Transport Preferred
60% 50% 50% 40% 30% 20% 10% 0% Taxi MTR Rented Vehicle Buses Others 6% 2% 11% 32% Taxi MTR Rented Vehicle Buses Others

The overall choice of transport by the tourists in Hong Kong would be the Mass Transit Railway which is also known as MTR. Among the responses collected in Hong Kong, about 50% of the respondents choose MTR as the mode of transport. MTR is greatly appreciated by the tourists compared to other modes of transport which are available such as taxis, rented vehicles and buses. Data collected in these survey shows that taxis are one of the least popular and buses was preferred by 32% of tourists and rented vehicles falls in the least popularity range of 2%. In this graph, it is shown that huge number of tourists believes that travelling with MTR is more worthwhile compared to other public transportations. As what was explained in the literature review, MTR connects most of the major districts of Hong Kong. MTR allows tourists to travel with much ease to major shopping centers and business districts. The MTR made travelling for tourists easy as it also allows journey to the airport to be easier and safe time. MTR is a popular mode of transport as it allows people to travel in big groups. This benefits tourists that travel in large groups of families. The availability of MTR ensures that tourists dun have to charter more than one vehicle in order to get to the desired destination. For example, if a group of tourists uses taxi, more than 1 car would be required if the group is bigger than 5 people.

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Buses would also benefit the same way as MTR as the tourists would be able to travel the city in big groups. According to self experience and interview responses, some tourists do prefer buses they are able to experience and enjoy the scenic view of Hong Kong. For the survey responses of the tourists, MTR and buses are the most popular mode of public transportations in Hong Kong.

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5.0 CONCLUSION
Public transportation is one of the most important aspects in the success factors of Hong Kong tourism. Hong Kong develops dynamic transportation systems that are able to link its important districts together. The existence of MTR, buses and taxis, which are the main examples of public transportation in Hong Kong, create good customer satisfaction, customer satisfaction is achieved through the service quality provided. Service quality of the transportation systems plays an important role in ssorder to achieve customer loyalty.

In general, the tourism industry cannot thrive without the presence of transportation. Transportation services are an essential part of the tourism industry. The tourism industries are able to expand with the improvement of the transportation industry. Transportation industry which consists of flight, buses, taxis, trains and moor vehicles really makes the world smaller making all the places accessible (Culpan, 1987). Transportation is one of the most important aspect in the tourism industry and is seen as a medium in bringing people around. But transportation industry is more than that as it results in adverse impact towards the tourism destination. Tourists choose different type of transportation due to the services provided. Transportation services are able to create different tourism experience towards its commuters. The improvement of the transportations coupled with the decrease o fares imposed has increase the number of commuters creating more customer satisfaction.

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6.0 REFERRENCES
1. Anderson, Eugene W. and Mary W. Sullivan (1993), “The Antecedents and Consequences of Customer Satisfaction for Firms,” Marketing Science, 16 (2), 129-45

2. Anderson, Eugene W., Claes Fornell, and Donald R. Lehmann (1994), “Customer Satisfaction, Market Share, and Profitability: Findings from Sweden,” Journal of Marketing, 58 (3), 53-66.

3. Button, K. (1993) Transport, the environment and economic policy, Edward Elgar Publishing Company, USA

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R.

(1987).

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6. Croall, J. (1995) Preserve or destroy: Tourism and the environment, Calouste Gulbenkian Foundation, London.

7. Mittal, Vikas and Wagner A. Kamakura (2001), “Satisfaction, Repurchase Intent, and Repurchase Behavior: Investigating the Moderating Effect of Customer Characteristics,” Journal of Marketing Research

8. Page, S. and L. Lumsdon (eds.) (2004) Tourism and transport: Issues and agenda for the new millennium, Elsevier, Boston.

9. Perone J-S. (2005). Assessing Hierarchy of Needs in Levels of Service .Final Report, pp 9 -15.

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10. Peters, D. (2000) A sustainable transport convention for the new Europe. In F. Dodds (ed), Earth Summit 2002: A new deal. Earthscan Publications Ltd., London.

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(2005).

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of

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12. Schlesinger, Leonard A. and Jeffrey Zornitsky (1991), “Job Satisfaction, Service Capability, and Customer Satisfaction: An Examination of Linkages and Management Implications,” Human Resource Planning, 14 (2), 141-149

13. Timothy D. Hau. (2008). Transport for Urban Development in Hong Kong.DEVELOPMENT IN HONG KONG

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