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WEST INDIES YACHT CLUB

RESORT:
WHEN CULTURES COLLIDE
Abhishek 14PGPIM02
Divyansh 14PGPIM12
Dhrunav 14PGPIM14
Mohit 14PGPIM18
Prerna 14PGPIM25
Vaibhav 14PGPIM31

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BRITISH VIRGIN ISLANDS TOURISM MARKET
36 islands- 16 inhabited
Area 59 sq mile
Planned and restricted growth ensured by
government
Bareboat chartering introduced in 1970
Main attractions - rich natural beauty and intrigueing
history


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UPSCALE HOTELS IN BRITISH VIRGIN ISLANDS
Tortola
Jost Van Dyke
St. John
(USVI)
Norman Island
Peter Island
Virgin
Gorda
S
i
r

F
r
a
n
c
i
s

D
r
a
k
e

C
h
a
n
n
e
l
Salt Island
Cooper Island
Ginger Island
Beef Island
Guana Island
Little Jost
Van Dyke Island
Great Camanoe
Island
Great Thatch
Little Camanoe
Necker Island
Mosquito
Island
The Dogs
Fallen Jerusalem
1
2
3
4
5
Key:
Peter Island Yacht Club
Little Dix Bay Resort
Drakes Anchorage Resort
Biras Creek Resort
West Indies Yacht Club Resort
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2
3
4
5
Exhibit 1
Map of the British Virgin Islands
and location of luxury hotels and resorts
North Sound Express Ferry route
Piter Island Yacht Club
50 rooms.
$395-$525
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SITUATIONAL OVERVIEW
Head office located in chicago
Competitive advantage largest boat fleet
The resort is in highly competitive virgin island
Staff comprised of expatriate management and local
employees
Difficulties in cross cutural communications has
caused strained performance
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Problems
High expatriate turnover
Rising tension between expatriate and local staff
making the organization experience cultural
myopia
Rising number of guest complaints and Low
employee motivation



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BVI Labor Market Laws and Regulation and its
Impact on Success of WIYCR
First, expatriate work permits are granted only on the basis of
the total number of employees working at a resort and the
availability of locals who possessed these skills requisite for
the position
Second, organizations are not permitted to lay off staff during
slow seasons
Third, policies restricting the conditions under which an
employee could be fired severely limited an organizations
ability to retain only the best workers and
Finally, organizations were under extreme pressure to
promote BVI locals into management positions whenever
possible

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To combat regulations on foreign employees, organizations
often paid foreign staff through their offshore corporate
headquators and restricted the amount of time they spent at
the site
Organization offered attractive vacation components to their
employee contracts enabling them to pay lower wages and
reduce excess labor
Staff retention was offset by lower wages, avoidance of costs
associated with training a new employee and extra staff
during peak season
Sending promising young staff to service training programs in
the Bahamas and Bermuda

Overcoming the Challenges of BVI Labor Market
Laws and Regulation
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High Expatriate Turnover







Expatriates find it difficult to adopt to local culture
Increased stress and tension
Low
Motivation of
Employees
Task not
completed
well
Unable to
meet
expectations
Quit Job
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Rising tension between Expatriate and Local Staff
Growing gap between Local and Expatriate Staff

Causes:
Lacking direct management
Management style does not suit local
Communication problem

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Low employee motivation
Senior staff are as lazy as the junior staff
Tips are not attractive
Only serve close customers sincerely

Cultural difference:
Foreign staff:
Achievement
Local staff:
Nurturing
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Rising Number of Guest Complaints
There is a decline in the service provided to guests by
the West Indies Yacht Club Resort

Causes:
Lack of training
Lack of communication
Lack of motivation
Local culture
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Solutions
Short Term
Organize a holiday party prior to the peak week
Partner with Commisionary, the local bar
Encourage staff to become friends and to respect
each other as people and to look outside titles
Create a slogan or pamphlet to hand out to guests
upon arrival, in which local culture is explained as
well as embraced
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Solutions
Long Term
Establish a WIYCR management training program
encourage employees and managers to have an
open dialogue
In the off season, establish a social interaction
committee
Implement a self service food and beverage sector
Develop evaluations based on a cross cultural
training program
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Building Strong Leadership
It should be controlled and employees should be
motivated by a authority figure present in the resort

Managers should delegate authority to
subordinates
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Increased Communication- Building Brust
Managers and employees
Managers should have cultural training
Mix private and business life
Formal meeting and informal gathering

Resort and headquarters
Regular meeting to discuss progress, concerns and
promotions

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Effective performance measures
Motivation-Pay for performance and collective
achievement
Have informal reviews-Group meeting
Emphasize on win-win relationship

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Wrap Up
By improving the organizational culture WIYCR can
concentrate on its core competencies and work to
regain industry leadership status
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Alternative Solution
Replace existing team and management with locals
Replace existing team and management with
expatriates
Change the mindset- create new organizational
culture

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Thanks