THE IMPACT OF SALARY GRADES ON TOURISM DEMAND: ASTUDY ON KOYA TECHNICAL INSTITUTE /IRAQ

DLSHAD AHMED SHARIF

1. INTRODUCTION

1.1. Background of the study

In the beginning of life, it appeared that human being has needs that need to be fulfilled such as essential needs: food, drink, clothes, and shelter. Etc. In recent decades, with the evolution of life and the appearance of civilizations, human being started to require other needs such as, luxury and comfort needs from different aspects of life. Among these needs is the need of people for tourism the demand of tourism can be for different purposes such as: health, education, culture, welfare, commercial, religion and work purposes… etc. (Goodman, Johnson and Webb, 1997).

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Also Blake et al. (2009) verifies that in the case of Brazil the consequence of tourism in lessening salary and income inequality. People’s income might be a vital determining factor that influences their demand towards tourism. It can be seen that as far as people’s income increases, their demand for tourism increases. Also tourism demand varies from place to place, country to country, even institute to institute according to grades of their salary or income (Goodman, Johnson and Webb, 1997).

Clients and hired a request for changes in demand, as well as request other people about tourism depending on the level of income in this day has become very important, if we look to the rapid change in peoples’ income, and to increase the scientific achievements and collect the high level of education, in more countries flourished this phenomenon, especially in the Aldan past ((Gregg, Harkness and Machin, 1999).

Employees demand as anybody else’s demand changes towards tourism according to the level of income. In today’s world, it has become quite more relevant, given rapid rise in peoples income, and more educational accomplishment and involvement in higher education, in many countries it has been seen especially in the past two decades (Gregg, Harkness and Machin, 1999).

After all make sure that people with low incomes request on tourism will decline in various fields, in spite of that follow basically from low-income or wages and salaries. Prosperity, which is the basic sets and makes the difference between Allows opportunity and demand, as well as there are other key factors that are related to salaries and income relationship linking process.

If you look at the level of money that basically one reason or tool that lead to non-Equality wage and salary income as any people that turn into a disparity in demand and hired staff towards tourism (Gregg and Machine, 2000).

Despite the fact that to install between salary and income has been the separation and identification needs to be a lot of tracking and study the background of the people and be link on paper similar and homogeneous people, if it has to do with salaries and income appears more injustice in tourism demand connection.

Had I wanted to show people the effect of income on tourism demand is not easy (Gregg and Hobcraft, 1998).

1.2. Purpose of the study

The purpose of this study is to identify the relationship between the employees (tourist) income and tourist demand towards tourism. Additionally it measures the direct link between income and demand towards tourism for all the different kind of purposes such as: (welfare and luxury purpose, religion purpose, archaeology purpose, the purpose of effects, the purpose of treatment, the purpose of business, , cultural purposes …. etc.).

The main aim and objectives of this study are:

To identify:

  1. The impact of income (salary grades) on the increase of demand towards tourism and to identify to what extent the salary grades of employees linked to tourism demand.
  2. Which level of employment has more demand towards tourism and which level has less demand towards it.
  3. Identify the extent of travel and tourism at (KOYA Technical Institute).
  4. To increase the economic knowledge generally and tourism sector specially.
  5. Identify tourism demand in the region.

1.3. Significance of the study

The importance of this research is that it answers and shows the reasons behind the incline and decline of demand towards tourism due to the decrease and or increase of income. Also it measures the extent of traveling and the demand towards tourism in the region, which can be a beneficial scale for the country’s economy. This study will also show the barriers that face tourism sector. Furthermore it is crucial tool to identify the impact of Iraqi salary grade on the employees demand for different purposes towards tourism at (KOYA Technical Institute).

1.4. Research Questions and Hypothesis

H1: salary grades can increase the demand for tourism.

H2: The employees who have more salary might have more interest towards tourism.

H3: Most of tourism demand might be for welfare and luxury due to economic development and high income.

1.5. Definitions of terms:

Salaries and wages:

A fixed payment which is usually paid annually and only sometimes paid on monthly basis called salary.

Wages usually received on regular basis such as weekly or monthly. Also occasionally the word is used to include different types of benefits like retirement plan and insurance (Investor Words 2013).

Tourism

Global trend economic, as well as specialization to implement multiple specialized projects.

Among these geographical projects to science and economic study of movement and management of returners and the environment as well as the mean of intangibles , including science decrease and anthology (smith,1994,theobald,p,2005,p,&connell,2006).

There are no global agreements on the substance and nature tourism destination and the left is

Still questionable topic (smith, Theobald, 2005, p & Connell)

The Tourism demand:

Song and Witt (2000) believes that tourism demand is the level of set of tourist products which customer are willing to obtain throughout a specific period of time also under specific circumstances that are restricted by the descriptive factors used in equation of demand.

If we assume that tourism is a service industry, as well as commercial and also acts, or that he only phenomenon or a particular event by a certain Ray knows that tourism and tested (Weaver& Lawton, 2002; Page& Connell, 2006; Mitchell& Ashley, 2010).

Many times she knows the tourism export businessman invisible or intangible, of any industry without any tangible product or manufactured goods (Page& Connell, 2006; Sadler& Archer, 1975).

Tourism is a complex phenomenon because it is a source of funds for the acquisition, which make it a key industries in the world today, which draws about visiting various tourist sectors and demand, and that demand is reflected( industries (Ratz & Puczko 2002, 15; Hall & Page 2006, 1).

Tourism shows by different conditions, as well as up with different kinds of environment, including political, economic, cultural and cultural environment and the Socialists, and the geographic and technological evolution.

The impact of tourism effects either double positive and either negative or both.( (Ratz & Puczko 2002, 16.)

One of the key sectors in today’s world of economy is tourism. Tourism is also one of the most vital industries that in the year 2009 employing over 200 million people all over the world, although the most of the employees are inexpert. In year 2009 the number of tourist arrivals estimated internationally to be divided among continents such as Americas 16.0%, Asia/Pacific 20.6%, Middle East 6.0%, Africa 5.2% and Europe 52.2%. 48.5% of tourist receipts estimated to be from Europe, 19.4% from Americas and 3.4% from Middle East and Africa and 23.9% from Asia/Pacific (Travel & Tourism economic impact Executive Summary 2010).

Iraqi salary grades schedules:

Table on Payroll and annual bonuses according to the legal of the stipends of nation employees and the Iraqi public sector No. 22 for the year 2008 the higher grades: (Iraqi Gazette, 2008)

 
The higher grades
Years of Experiences  
Annual premium
1 2 3 4 5 6 7 8 9 10 11
Supreme (a) functions with special grades 2413 2496 2679 2662 2745 2828 2911 2994 3077 3160 3243 83
Higher grades (B) The Director generalÙ… 1500 1583 1666 1749 1832 1915 1998 2081 2164 2247 2330 83
Functional Class Salary old New payroll / years of Experiences Annual premium Increasing the number of years
1 2 3 4 5 6 7 8 9 10 11
1 948 948 968 988 1008 1028 1048 1068 1088 1108 1128 1148 20 /
2 758 758 775 792 809 726 843 860 877 894 911 928 17 5
3 621 621 633 645 657 669 681 693 705 717 729 741 12 5
4 509 530 540 550 560 570 580 590 600 610 620 630 10 5
5 429 490 497 504 511 518 525 532 539 546 553 560 7 5
6 362 460 466 472 478 484 490 496 502 508 514 520 6 4
7 296 420 426 432 438 444 450 456 462 468 474 480 6 4
8 240 370 375 380 385 390 395 400 405 410 415 420 5 4
9 185 330 335 340 345 350 355 360 365 370 375 380 5 4
10 140 300 304 308 312 316 320 324 328 332 336 340 4 4

Subject to the provisions relating to job descriptions appoint the following school graduates or equivalent salary stipulated as follows according to the payroll and annual bonuses attached to this law: (Iraqi Gazette, 2008).

  1. Does not hold a certificate of study in the first rank of tenth grade salary (140,000) (one hundred and forty thousand dinars).
  2. Employs ho has primary school certificate in fourth place with a salary of tenth grade (152,000) .(one hundred and fifty-two thousand dinars).
  3. Certificate holder’s secondary school in the first rank of ninth-grade salary (185,000) (one hundred and eighty five thousand dinars).
  4. Certificate holder’s preparatory school diploma, including all branches ranked first in the eighth grade salary (240,000) (two hundred and forty thousand dinars).
  5. Institutes certificate holders from eighth grade salary (260,000) (two hundred and sixty thousand dinars).
  6. First university degree (BA) holders in the first rank of seventh grade salary (296,000) (two hundred and ninety six thousand dinars).
  7. First university degree holders in pharmacy, dentistry, veterinary medicine or engineering or equivalent that period of study required to get them five (5) years at least after junior high school in the first place from sixth grade salary (362.000) (three hundred and sixty-two thousand dinars).
  8. Master’s degree holders or its equivalent and the Faculty of Medicine of the Iraqi or the equivalent of not less than the time required to get them for (6) six years after the junior high school in the third place from sixth grade salary (374,000) (three hundred and seventy-four thousand dinars. ).
  9. Doctorate certificate holders in the first rank of fifth degree salary (429,000) (four hundred and twenty-nine thousand dinars).

 

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