1 / 48
About This Presentation



SUSTAINABLE TOURISM, ECONOMIC DEVELOPMENT AND QUALITY OF LIFE: AN IMPOSSIBLE MIX? Professor Larry Dwyer University of New South Wales, Australia – PowerPoint PPT presentation

Number of Views:353
Avg rating:3.0/5.0
Slides: 49
Provided by: LarryD155


Transcript and Presenter's Notes


  • Professor Larry Dwyer
  • University of New South Wales, Australia
  • Faculty of Economics, University of Ljubljana
  • University of Zagreb
  • President, International Academy for the Study of

  • Worldwide, tourism is associated with large
    growth and optimistic forecasts
  • growing evidence that tourisms continued
    expansion is
  • producing diminishing returns to providers and
    host communities that rely on volume growth to
    compensate for yield declines
  • generating increasingly adverse social and
    environmental costs
  • Despite huge descriptive and prescriptive
    literature highlighting best sustainability
    practice, things seem to be getting worse.
  • Globally, the industry is not implementing
    strongly enough the measures necessary to reduce
    adverse impacts of tourism development
  • This situation of profitless volume calls into
    question whether the benefits to destinations of
    continued tourism growth outweigh the costs
  • raises concern that tourism has reached a
    tipping point of irreversible decline in
    quality (Pollock 2012).
  • According to Pollock (2012), we have reached a
    Fork in the Road, where The Road to Decline
    meets The Road to Rejuvenation.

  • Is Tourism at a tipping point?

Content of Presentation
  • Identify key characteristics of the current
    mindset responsible for increasing costs (private
    and public) associated with tourism industry
    expansion globally (Road to Decline)
  • Identify common elements of an alternative
    paradigm, contrasting its features with those of
    the established paradigm (Road to Rejuvenation)
  • Discuss the implications of the new mindset for
    the attitudes and behaviour of major stakeholders
    in tourism
  • Address some challenges associated with
    implementing strategies for tourism development
    consistent with the new paradigm
  • Conclusion Sustainable tourism, economic
    development and quality of life is difficult to
    achieve but not impossible
  • various enablers must be put in place

A Fork in the Road
  • The Road to Decline
  • The Road to Rejuvenation

Road to Decline
  • The Road to Decline involves business as usual,
    saluting while the ship sinks.
  • Despite the adoption of sustainability practices
    worldwide, (CSR, TBL etc), there is no indication
    that tourisms problems globally are being
  • Such practices simply inch firms toward reducing
    their negative impacts, and focusing on becoming
    less unsustainable, rather than operating
    more sustainably.
  • the expansion of tourism globally means that the
    absolute volume of negative impacts will continue
    to increase.
  • The attitude change necessary to support
    energetic and passionate implementation of
    sustainability practices seems to be more of an
    elusive ideal so long as the current mindset

Road to Rejuvenation
  • Road to Rejuvenation involves a more serious
    effort on the part of all tourism stakeholders to
    adopt sustainability practices.
  • this road is traversed by those stakeholders who
    have a different mindset from that which has
    dominated tourism firm strategies, destination
    planning and tourism policy.
  • most initiatives associated with sustainable
    practices operate within the same mindset or
    paradigm that is responsible for ongoing
    generation of the adverse impacts in the first
  • tourism stakeholders must expose the unexamined
    assumptions that have guided their behaviour and
    to take more responsibility for their actions.
  • need for a paradigm shift whereby a new
    Sustainability Model replaces the mindset that
    underpins the destructive practices associated
    with tourism growth.

The Established Mindset for Tourism Development
  • Called the Industrial Model (Anna Pollock) or
    Production Model (TII, 2012)
  • provides the current mindset underpinning
    tourism development/research
  • It is applied with enthusiasm in developed and
    emerging markets worldwide
  • It underpins development of mass tourism
  • Its implicit adoption is the underlying cause of
    tourisms negative impacts
  • Characteristic Features
  • Anthropocentric Ethic
  • Product Maximisation
  • Growth oriented/exploitative
  • Product fixated
  • Price
  • Place
  • Promotion

Anthropocentric Ethic
  • The view that the resources of the earth are
    solely of instrumental value for human use, their
    value limited to the pleasure and profit they
    bring to humans
  • drives tourism development word-wide
  • influences the content of various environmental
    codes of conduct
  • responsible for exploitation of nature, severe
    environmental degradation, global warming, loss
    of biological diversity etc.

Profit Maximisation
  • A business firms purpose is to maximize returns
    to its shareholders-, firms are only responsible
    to their shareholders and not to society as a
    whole (Freidman)
  • firms attempt to maximize profits with little
    thought to the costs experienced by other
    stakeholders (resource depletion, congestion,
    pollution, etc)
  • initiatives such as CRS, TBL are treated as
  • businesses have short term decision making
  • implicit assumption that it is (exclusive) role
    of government to address market failure

Growth Oriented/ Exploitative
  • implicit assumption that the market requires
    increasing and unlimited economic growth
  • underpinning this ethic is the myth of super
    abundance of infinite resources in a finite world
  • eg. in WTTC Blueprint for New Tourism purporting
    to address sustainability issues, tourism growth
    is lauded as an important goal for all
  • Growth becomes exploitative
  • linked to profit-maximisation assumption and
    short term business goals
  • linked to anthropocentric ethic
  • linked to economic impact analysis to allocate
    resources efficiently
  • linked to failure to price goods and services
    correctly according to social costs and benefits
    (producers and consumers get wrong price

Product Fixated
  • Tourist experiences are less important than
    product creation and sale to customers.
  • firms see themselves as producers who assemble,
    operate, package and price various travel
    products through complex value chains and
    distribute them via distribution channels
    involving multiple intermediaries
  • firms seek economies of scale
  • mass tourism
  • helps to explain the sameness, uniformity and
    mediocrity associated with tourism offerings

  • Products priced according to financial or
    private costs not social costs
  • social and environmental costs regarded as
    externalities and not factored into price
  • generates various market failures from the
    over-production and over-consumption of such
    goods and services.
  • we destroy the beauty of the countryside because
    the unappropriated splendours of nature have no
    economic value. We are capable of shutting off
    the sun and the stars because they do not pay a
    dividend (Skiedlsky, 20091).

  • Established paradigm views space as real estate
    to be carved up and enhanced with amenities and
  • The Place is perceived to be less important than
    the Product
  • Resident sense of place regarded as irrelevant
  • Minimises role of interactive host community in
    generating tourism experiences

  • product fixation and financial cost
    pricing fashion tourism promotion.
  • firms position and brand their products in the
    marketplace, identifying tourists not as people
    but as market segments to be targeted and
    persuaded to purchase a product at the best price
    the supplier can achieve
  • ideal tourists are those willing to pay more
    than others to enhance sales and profits.
  • As seen in the mission statements of DMOs
    worldwide, expenditure per day or per trip is the
    most common preferred attribute of the targeted
  • little recognition that higher visitor
    expenditure is associated with higher
    environmental costs or that expenditure measures
    per se ignore the social and environmental costs
    and benefits associated with different visitor
    market segments.
  • ignores issue of who is the ideal tourist?

Tourism will continue to grow worldwide
  • World Economic Growth. The UNWTO (2002) projects
    tourism to grow at 4.1 annually at least to
    2030, fuelled primarily by economic growth
  • a dynamic world economy creates the economic
    basis for continued growth in domestic and
    international tourism worldwide, as the new
    wealthy seek new experiences.
  • as incomes grow, people shift their
    discretionary expenditure towards experiences as
    opposed to products, including tourism.
  • World Population is growing at 1.14 pa.
  • world population is expected to reach 9 billion
    by 2040, and 11 billion by 2100
  • more people, a bigger world economy, means more

Tourism will continue to grow worldwide
  • Demand side
  • increased longevity
  • increasing urbanisation
  • higher standards of health care
  • changing work patterns with more flexibility of
    travel plans
  • wider spread of education
  • migration
  • stress management through holiday escapes
  • changes in peoples values and needs,
  • Supply side
  • developments in ICT and transportation
  • deregulation and liberalisation of air transport
    and open skies policy
  • tourism is now a serious development strategy for
    the less developed world, with the support of
    institutions such as the World Bank and
    International Monetary Fund
  • globalisation of social networks will drive
    further growth of tourism and travel

Is Tourism Successful? Yes if its only about
What the Graph Doesnt Show
  • Volatility
  • Net revenues
  • Net benefits
  • Diminishing returns
  • Value retention in the host community
  • Concentration of wealth
  • Social and Environmental degradation

90 of demand factors outside of the control of
anyone in tourism
  • Can we handle another 400 million tourists in
    just 6 years?

How will we handle congestion?
How will we handle waste?
How will we handle emissions?
How will we manage our thirst for water and land?
How will avoid residents backlash?
How will we protect vulnerable people and
  • see?

Continuing along the Road to Decline?
  • Given the forces that underpin continued tourism
    growth the business as usual approach to
    tourism development can be expected to lead to
    more adverse environmental and social impacts
  • There are counteracting forces, however
  • Changing Consumer Values
  • Changing Business Values
  • Changing World Values
  • - - - But are they enough?
  • A new Paradigm is needed - - - a new way of
    internalising the responsibilities of tourism

New Consumer Values
  • a new and growing demographic of individuals are
    values aspirational
  • ethical consumerism places a higher value on
    healthy living, environmental and social justice,
    and ecological sustainability
  • aspirational consumers make purchase decisions
    based on total value not lowest price, seeking
    meaningful experiences rather than more things
  • willing to pay more for products with social and
    environmental benefits, to buy from, and invest
    in, responsible companies
  • aspirational consumption is not a superficial
    change in consumer preferences but reflects much
    deeper more radical shift in worldview (2009
    Conscious Consumer Report).
  • implies need for different tourism products,
    different services and experiences and different
    operator strategies.

The NEW Consumer
New Business Values
  • Rise of Conscious, Responsible business
  • Hybrid organisations are changing the notion of
    what a firm is and does, characterised by their
    emphasis on
  • driving positive social/environmental change as
    an organizational objective
  • attempt to generate net benefits to society
    rather than (just) company profits
  • create mutually beneficial relationships with
  • mission statements characterised by higher
    purposes that serve, align and integrate the
    interests of all their major stakeholders.
  • sustainability based organizational values,
    long-time horizons for slower growth, and
    positive leadership
  • sustainability outcomes built into business
    models, rather than as optional extras.
  • Two types of justification support this wider
    view of firms responsibilities.
  • Ethical perspective. Its the right thing to
  • Pragmatic perspective. Its good for profits

Rethinking Business Values
Changing World Values (from World Values Survey)
  • Traditional values emphasize the importance of
    religion, parent-child ties, deference to
    authority and traditional family values. People
    who embrace these values also reject divorce,
    abortion, euthanasia and suicide. These societies
    have high levels of national pride and a
    nationalistic outlook
  • Secular-rational values have the opposite
    preferences to the traditional values. These
    societies place less emphasis on religion,
    traditional family values and authority. Divorce,
    abortion, euthanasia and suicide are seen as
    relatively acceptable.
  • Survival values place emphasis on economic and
    physical security. It is linked with a relatively
    ethnocentric outlook and low levels of trust and
  • Self-expression values give high priority to
    environmental protection, growing tolerance of
    foreigners, gays and lesbians and gender
    equality, and rising demands for participation in
    decision-making in economic and political life.

(No Transcript)
World Value Survey Findings
  • transition to an industrialised and
    post-industrial knowledge society causes
    countries to move diagonally in the direction to
    upper-right corner
  • multiple trends towards human empowerment
    converge in giving people control over their
  • most important among these trends is the spread
    of emancipative values, which emphasize free
    choice and equal opportunities.
  • emancipative values involve priorities for
    lifestyle liberty, gender equality, personal
    autonomy and the voice of the people.
  • emancipative values change peoples life
    strategy from an emphasis on securing a decent
    subsistence level to enhancing human agency.
  • as the shift from subsistence to agency affects
    entire societies, the overall level of subjective
    well being rises
  • the emancipative consequences of the human
    empowerment process are not a culture-specific
    peculiarity of the West.
  • their role in tourism development seems to have
    been completely ignored
  • ,

Wanted- - - a new paradigm for tourism research
and practice
  • tourism development based on the standard
    mindset, is sowing the seeds of its own
    destruction (Pollock 2012, TII, 2012)
  • the established paradigm is demonstrably
  • internally, as its driving assumptions do not
    reflect current attitudes of progressive thinkers
    and also inconsistent with the views of growing
    numbers of tourism stakeholders.
  • externally, as its implications for tourism
    development and policy register increasing
  • BUT - - the types of New Values identified above
    can provide the foundation for a new
    sustainability mindset or paradigm that
    involves a fundamental shift in values and
    beliefs, needs to be applied by hosts, guests and

New Paradigm for Tourism Research and Development
  • New Sustainability Model calls for
  • Anthropocentric ethic replaced by Environmental
  • Profit replaced by Benefit
  • Growth/exploitation replaced by Preservation
  • Product fixation replaced by People fixation
  • Price replaced by Value
  • Place replaced by Landscape
  • Promotion replaced by Pull

Environmental Ethic
  • Environmental ethics recognize and takes
    responsibility for the impact of human activity
    on natural systems and habitat
  • extends the traditional boundaries of ethics
    from solely including humans to including the
    non-human world.
  • emphasises human responsibility to nature and
    the remote future and affirms the value of
    protecting, conserving, and efficiently using
    resources that the earth provides.
  • Three main types of EE
  • Enlightened (prudent) Anthropocentrism
  • Biocentrism
  • Ecocentrism

Three ethical worldviews
Prudential Anthropocentrism
  • affirms that our moral duties towards the
    environment are derived from our direct duties to
    its human inhabitants
  • advocates the wise use of global natural
    resources to ensure the sustained yield of those
    resources in perpetuity
  • Prudent Anthropocentrism dissolves the People
    Vs Nature formulation that impedes communication
    by tourism stakeholders
  • Prudent Anthropocentrism is necessary for
  • Cost Benefit Analysis of planning/investment
  • Codes of conduct
  • Responsibility Principle Access to
    environmental resources carries attendant
    responsibilities to use them in an ecologically
    sustainable, economically efficient, and socially
    fair manner.

(Net) Benefit
  • Operator level
  • net benefit includes the notion of higher
    returns to all stakeholders
  • social and environmental impacts of firm
    operations can be built into firms business
  • Destination level
  • success of destinations must be redefined from
    volume of trips/expenditure to net benefit
    generated (Economic yield Vs Sustainable Yield).
  • economic impact analysis too narrow a basis for
    assessing effects of tourism planning,
    development and public policy
  • economic modelling minimally should estimate
    changes in economic welfare

  • Preservation encompasses environmental
    sustainability, social justice and cultural
  • hybrid organizations consider that nature
    provides system-wide value that benefits society,
    and consider its integrity as a worthwhile
  • Protective behaviour towards social and natural
    resources can be underpinned by the ethic of
    prudential anthropocentrism.
  • not morally right for tourism providers to
    simply exploit landscapes, ecosystems, cultures
    in order to sell services to visitors.
  • it is in the hosts best interest to become
    proactive champions, stewards and custodians of
    the natural environment and cultural context.

  • instead of starting with a product we start with
    people and their experiences
  • tourism isnt about objective things that can be
    produced but about experiences that can only be
    had by the person having the experience in a
    particular place
  • as its all about people meeting, serving,
    taking care of, and entertaining other people
  • the primary unit of activity is a relationship
    not a transaction.
  • connectedness and interdependence are
  • guest is not seen as object, segment to be
    exploited or processed but respected as
    co-creator of value

  • Prices must cover total costs (financial plus
    social) associated with any tourist activity
  • Resources should be valued at their TEV (use
    plus non use value)
  • value of externalities should be factored into
  • overcomes boundary problem, looking at narrow
    range of impacts, thinking in silos
  • operators should pay for many of the ecosystem
    services on which their business depends (user

  • Tourist destinations are places valued,
    celebrated, expressed and experienced
  • emphasis on PLACE provides opportunity to
    sustain value because every place is unique.
  • Tourist destinations are akin to Protected
  • need to recognise the critical links between
    nature, culture, and community for long-term
    sustainability of conservation.
  • confirms that stewardship depends on people and
    recognises the importance of an inclusive,
    participatory, and democratic process for
    accomplishing conservation.
  • implies greater responsibility for host

  • PULL relates to the biggest challenge most
    hosts face on a daily basis
  • attracting the right customer
  • global connectivity has shifted power from
    producer to consumer and the marketing function
    has turned upside down.
  • The passion of all hosts (employees, suppliers,
    residents) can combine to Pull in (attract) the
    kind of guest who will most value what is on
    offer (searchlight not floodlight)
  • the challenge is to attract the right customer
    the one who truly values what the provider has to
    offer. The ideal tourist

OK - - - where to now?
  • The above represents early steps towards
    creating a robust compelling vision of a better
    alternative and a route to realizing that vision
  • We begin by defining a set of actions that
    characterise responsible behaviour by key tourism
    stakeholder groups

Consequences for major tourism stakeholders
  • The Responsible Operator
  • The Responsible Tourist
  • The Responsible Government
  • The Responsible Host Community

Responsible Operator
  • Integrative integrates ethics, social
    responsibility, and sustainability practices into
    core business strategies
  • Higher Purpose performance is judged by social
    and environmental as well as financial criteria.
  • Stakeholder orientation creating mutually
    beneficial relationships (financial, social,
    environmental) with all stakeholders attempt to
    involve stakeholders who are in alignment with
    the core purpose and values of the company.
  • Healthy Cultures organizational cultures
    manifest a strong sense of community with high
    levels of employee participation in decision
    making and the sharing of ownership and profits.
  • Socially Responsible Investment integrates
    social, environmental, and ethical considerations
    into investment decision-making - exerts pressure
    on corporations to behave responsibly
  • Customer Relationship Marketing sustaining
    trusted relationships with all stakeholders by
    listening, dialogue, collaboration and
  • Conscious leadership seek to diffuse acceptance
    of their business model throughout the
    institutions and markets in which they operate.
    Prosletisers, Evangelists

The Responsible Tourist
  • greater social, cultural and environmental
    awareness regarding tourisms impacts.
  • wants to learn and grow as a result of travel,
    with experiences that change, transform and
  • more responsible behaviour to nature and humans
  • prefers to deal with environmentally and
    socially responsible operators
  • recognises that health, happiness and well being
    cannot be achieved exclusively through
    acquisition of material goods
  • increasingly seeks quality over quantity and
    experiences over products
  • increased potential for tourist codes of conduct
    tailored to particular destinations

Responsible Government 5 functions of DMO
  • Marketing function creating awareness of
    destination, brand, image
  • success of destinations must be redefined from
    volume of trips/expenditure to net benefit
    generated (Sustainable Yield). Importance of Pull
    of ideal tourists. Creating community pride in
    respect of tourism industry (internal marketing)
  • Development function robust tourism industry
    generating new income, employment, and taxes
    contributing to a more diversified local economy
  • need internalisation of a sustainability ethic
    with wider set of driving values community
  • Assessment function project and policy
  • must go beyond impact assessment CBA, EIA full
    cost allocation longer planning horizons
    precautionary principle identifying gainers and
  • Coordination function effective governance with
    coherent policy framework to guide and drive
    action and appropriate bodies to implement
  • DMO must value community consultation
    facilitating a visioning process to imagine what
    they would like their community to be.
  • Protection function Safeguarding, rejuvenating
    and interpreting the elements of a place that
    make it unique and attractive and that sustain
    its perceived value
  • the destination as a Protected Landscape

The Responsible Host Community
  • Communities can identify what is really valued
    or desired and including those elements in the
    shared image of their community.
  • Communities must ask what type of tourism do we
    want (if any)?.
  • Hosts (local residents) assume a broader range
    of responsibilities that include Safeguarding,
    protecting, rejuvenating, and interpreting the
    elements of a place that make it unique and
    attractive and that sustain its perceived value.
  • Hosts can also be called upon to express what it
    means to their community to act as host (resident
    marketing of destination)
  • Local residents should act as welcoming hosts
    given the potential disbursed benefits of tourism

How to Change?
  • Bottom up (demand side). Change will come from a
    collective effort conducted at the grassroots
  • in communities where tourism hosts commit to
    ensuring that their economic activity benefits
    all stakeholders
  • where tourism stakeholders take responsibility
    for minimizing the environmental footprint and
    work actively to ensure that local cultural
    values are maintained.
  • spread by connections and community and
    accelerated by passion and enthusiasm
  • Tourists themselves have an important role to
  • Top down (supply side)
  • tourism providers become effective agents of
    change and stewards of all that the local
    community value.
  • governments lead from above

  • Business as Usual in tourism development implies
    taking Road to Decline
  • New ways of thinking are required if tourism is
    to develop sustainability with positive
    contribution to peoples quality of life (Road to
  • Some positive trends are evident
  • changing consumer values
  • changing operator values
  • changing world values
  • Consistent with these changing values tourism
    needs a change of paradigm
  • Different elements of the new paradigm have
    relevance for different tourism stakeholders
  • We attempted to build a profile of the
    responsible operator, the responsible tourist,
    the responsible government and the responsible
  • Only if all stakeholder groups act consistently
    based on the identified values will economic
    development be compatible with sustainable
    tourism and quality of life

  • Thank You
  • Hvala
Write a Comment
User Comments (0)