The Week in Europe

By David Jessop

 Each year two very large tourism trade shows take place in Europe. One is located in London and is held every November. The other takes place in Berlin in March. Both events are attended by hundreds of industry professionals from the Caribbean and many more from elsewhere. All make use of such events to strike deals with the thousands of tour operators, travel agents, airline representatives and others who attend.

 

Both trade fairs are also notable for the opportunity they offer to develop new initiatives related to tourism. 

 

This year a small number of hotelier’s associations from the Caribbean and Indian Ocean with the support of colleagues in the Pacific, South Africa and elsewhere met informally in the margins of World Travel Market in London. Their aim was to identify whether there was enough common ground to try to develop tourism private sector positions across the African, Caribbean and Pacific group of nations (the ACP). There was a meeting of minds and the group is now intending to bring together interested parties next year to address jointly matters of concern relating to trade negotiations and the ways in which European development assistance is provided to the sector. 

 

As the group was meeting, another initiative of relevance to the region was being announced. This was the launch of a guide to social responsibility among the companies that market vacations in the Caribbean and elsewhere. The document, which is primarily aimed at improving the ways in which tour operators act in developing nations, was launched jointly by the Association of British Travel Agents (ABTA) which represents over ninety per cent of British tour operators and a Christian aid organisation known as Tearfund.

 

Entitled somewhat unpromisingly ‘Improving Tour Operator Performance: The Role of CSR and Reporting’ this very accessible short paper suggests how tour operators can address the social, economic and environmental impact of their business activities. The document argues that this has particular value in developing countries. It makes clear that a socially responsible approach can also be made into a successful business model for tour operators and hoteliers. That is through product differentiation and the creation of improved quality and enhanced customer loyalty.  

 

According to the paper, recent research has shown an increase in concern amongst consumers about the social and environmental impact of the holidays that they take, particularly in developing countries. Most consumers, it seems, feel that their holiday should benefit the destination they are visiting and would like more information about the impact of their holiday before they book. The research also revealed that most consumers would pay more for their holiday if it came with assurances and details of how the local community would directly benefit.

 

The report suggests that the process of corporate social responsibility has to start with a company having clear core values and principles that address everything from its own employment policies to its attitude to the environment. These it argues then have to be incorporated into the ways in which any tour operator engages with its suppliers in the market concerned. 

 

Put practically this means that both the tour operator and the hotelier or other local supplier are being encouraged to find ways to increase the benefits of tourism to local communities. Examples cited include supporting local activities that stimulate wealth creation, minimising pollution and encouraging energy efficiency, waste reduction and recycling. It could also mean, the paper suggests, the development of an approach with the hotelier that places emphasis on fair wages, training, education and non-discrimination.

 

While this may seem altruistic, research undertaken by the paper's authors showed that half of those interviewed for the study were more likely to book a holiday with a tour operator that has an ethical code. Moreover, the majority of these were willing to pay for that guarantee. ABTA research in 2002 found that 87 per cent of holidaymakers said it is important that their holiday does not damage the environment, and that 76 per cent feel that tourism should benefit those in the destination, through jobs and business opportunities. The research showed also that 59 per cent wanted information about local issues in their resort before they booked.

 

Speaking about this, Ian Reynolds, ABTA’s Chief Executive, noted that taking action to increase the positive and reduce the negative impact had become vital to the future sustainability and profitability of tourism. A forward-looking business, he argued, will address these issues “before it is too late”. The type of corporate social responsibility being proposed in the joint paper can provide “a useful framework”; he is reported as having said. 

 

Pressure for businesses to become more socially responsible has increased following high profile corporate scandals in the United States and in Europe. These coincide with increasing pressure from aid agencies particularly in Europe’s member states and from within the European Commission to ensure that all development programmes take into account their environmental and social impact.

 

Tourism provides jobs, attracts foreign exchange and generates income to support local development. It can also directly support local industry and encourage communities to place greater emphasis on environmental protection. On the negative side the benefits can bypass local communities, put pressure on scarce local resources and the environment. Money may not reach the local economy and the jobs available may be poorly paid or insecure.           

 

Greater social responsibility among the rapidly diminishing number of ever more powerful groupings of tour operators would be a welcome development. However, to succeed it needs to be matched by a corresponding understanding on the part of those governments and hoteliers that still look only at the bottom line whether it is in relation to taxation or profit. 

 

Even before the events of September 11 much of the industry in the Caribbean was showing signs of tiredness, a lack of competitiveness with other destinations and the need to restructure. Any new approach to remarketing would be wise to factor in what most likely will become a trend at the higher end of the market: namely socially responsible tourism.

 

David Jessop is the Executive Director of the Caribbean Council and can be contacted at [log in to unmask]

November 15th, 2002




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