International Centre for Responsible Tourism
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Transcript International Centre for Responsible Tourism
Creating Shared Value
Harold Goodwin
www.haroldgoodwin.info/links.html
1
What is the purpose of
tourism?
Ask not what your country
can do for you, ask what you
can do for your country.
www.haroldgoodwin.info/links.html
2
What is the purpose of
tourism?
The world’s largest industry – but
it needs government support for
its marketing
Freeloader problem
Tourism needs to win support
www.haroldgoodwin.info/links.html
3
Different perspectives on the
“world’s largest industry”
National
International Arrivals
Length of stay
Foreign Exchange
Earnings
Net Foreign Exchange
Earnings
Expenditure
Balance of Payments
deficit
Local
Visitor Economy
– Shoppers and day
visitors travelling from
home.
– Day excursionists
(tourists) travelling in
from holiday
accommodation
– tourists staying in the
local economy
Local spend - £ € $
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4
Responsible Tourism
“making better places to live
in, better places to visit.”
Cape Town Declaration
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5
A journey to responsibility?
Bonding and financial guarantees
Repatriation
Member discipline
Trading standards
Health & Safety
Sustainability
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6
The Business Case for Responsible
Tourism
Market Advantage
The right thing to
do
Minimising risk
License to operate
Product quality
Cost savings
Staff morale
Market Advantage
Experience
– richer
– more authentic
– guilt free
Differentiation
and PR
Reputation
Referrals
Repeats
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7
Responsible Tourism
It is not
about CSR,
It is about
how the
business
–Philanthropy
&
does its
–Volunteering
business
www.haroldgoodwin.info/links.html
8
Shared Value – Porter
The Big Idea
Creating Shared Value
Porter and Kramer
How to reinvent capitalism – and unleash
a wave of innovation and growth
Harvard Business Review 2011
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9
What is shared value?
“policies and operating practices
that enhance the competitiveness
of a company while simultaneously
advancing the social and economic
conditions in the communities in
which it operates.”
Focuses on identifying and expanding
the links between economic and social
progress
www.haroldgoodwin.info/links.html
10
An outdated approach to
value creation
Companies have overlooked
– the wellbeing of their customers
– the depletion of natural resources
vital to business
– the viability of key suppliers
– “the economic distress of the
communities in which they produce
and sell”
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11
Companies must bring business
and society back together
Shared value – creating economic
value in a way that also creates
value for society by addressing its
needs and challenges.
“Business must reconnect
company success with social
progress.”
www.haroldgoodwin.info/links.html
12
Shared value is not
Social responsibility
Philanthropy
Sustainability
“rather a new way to achieve
economic success.”
“Businesses acting as businesses
not as charitable donors”
www.haroldgoodwin.info/links.html
13
Why?
“A business needs a successful
community, not only to create
demand for its products, but also
to provide critical public assets in a
supportive environment.”
Contrary to “self-contained entity”
idea of the firm the “old, narrow
view of capitalism.”
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14
Shared value
“societal needs define markets”
“Expanding the total pool of
economic and social value”
Creating “a bigger pie of revenue
and profits”
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15
Competitive advantage
Comes from “how it configures the
value chain.”
“Value is defined as benefits
relative to costs, not just benefits
alone.”
Externalities are ignored in
conventional economics
PPTP: net benefits
www.haroldgoodwin.info/links.html
16
What is shared value?
“policies and operating practices
that enhance the competitiveness
of a company while simultaneously
advancing the social and economic
conditions in the communities in
which it operates.”
Focuses on identifying and expanding
the links between economic and social
progress
www.haroldgoodwin.info/links.html
17
What does tourism contribute
locally?
Employment at a
range of skill levels,
wages & salaries,
progression
Enterprise
opportunities for
sales to tourists and
tourism businesses
Entrance fees for
conservation
Donations,
Volunteering &
mentoring
Enables a variety of
businesses to thrive
which may not
otherwise find a
large enough local
market
www.haroldgoodwin.info/links.html
18
18
Shared Value & Tourism
Employment
–
–
–
–
Wages
Training
Progression
& Beyond the
sector
Infrastructure
gain – roads, IT,
water.
Local sourcing
and enterprise
development by
1. Tourism
Businesses &
2. Tourists
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19
Tour Operating and Creating
Shared Value
Simon Pickup ABTA
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20
www.haroldgoodwin.info/links.html
21
The Social and Cultural
Benefits of Tourism
Ken Robinson
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22
The Importance of a
Collective Approach to a
Thriving Visitor Economy
Jason Freezer VisitEngland
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23
The New Forest Experience
from Tourism to Local Economic
Development
Anthony Climpson NFDC
Reporting Local Economic
Impact
Jenefer Bobbin Responsible Tourism
Reporting
Village Ways
Richard Hearn Village Ways
The Bridlington Fish Challenge
Martin Batt Yorkshire Wildlife Trust
ROOTS: a case study from The
Gambia
Suzannah Newham
The Travel Foundation
A Tour Operator Intervention in
The Gambia
Jo Baddeley,Sustainable Destinations
Manager,Thomas CookUK & Ireland
Round Table Discussion
"Is there any substance to the
idea of Creating Shared Value?
How does it relate to tourism?
Martin Brackenbury, Harold
Goodwin, Ken Robinson, John de
Vial, Nikki White