Download tourism and creating shared value

TOURISM AND
CREATING SHARED
VALUE
Simon Pickup
Sustainable Tourism Manager
ABTA
About ABTA
• ABTA’s vision is to build confidence at the heart of travel –
confidence for companies to trade and invest; confidence for
customers to book; and confidence that the industry is
building a sustainable future.
CSV – what is it?
• HBR: “…defined as policies and operating practice that
enhance the competitiveness of a company while
simultaneously advancing the economic and social
conditions in which it operates”
• Broadly speaking – it’s a realisation that there is no
need for a trade off between economic efficiency and
social progress.
• Merging societal needs with core business values
The difference between CSV and CSR?
CSR ORIGINS
PROFIT GENERATION & MANAGEMENT OF SOC, ENV AND ECO IMPACTS
GO TOGETHER
Rising Shareholder
& Investor Pressure
Increasing
awareness of global
issues
Increasing risk of
reputational
damage
• Prof M Porter:
“In development, the CSR solution is fair trade; let’s make sure farmers
get paid enough and the CSV solution is transforming the productivity
of the farmers and raising the quality so we can pay them a higher
price because they have higher quality, and they can have higher
incomes because they produce more”.
CSV Success Stories
So what does this mean for tourism?
• Arguably – the business case for CSV in tourism is stronger
than in most other sectors
• Both product creation and consumption takes places
amongst destination communities – without shared value,
the experience will be de-valued
• Sustainable tourism is synonymous with ensuring shared
value: for communities, for business, for customers
• CSV is already happening in tourism and has been for
some time but… more could be done
Tourism Case Studies - Employment
- Tourism has undoubtedly been a force for mass creation of
employment
- Good employment?
- Industry has started to help regulate employment standards
in line with best practice
Travelife Sustainability System
- Social Criteria: employee relations, fair working conditions,
living wages, training and investment in staff
Tourism Case Studies – Local Sourcing
Tourism Case Studies – Infrastructure
• European Destination
• High sickness levels associated with destination
• Research identified contaminated and compromised
water / sewage infrastructure was source of sickness
• 7 year project to improve systems
OUTCOMES:
Reduced customer sickness and litigation – improved customer
confidence
Improved local public health
More efficient infrastructure and therefore, environmental
gains
Five Star CSR
Final thoughts…
• CSV is gaining traction – is it really that new?
• Opportunity – to better legitimise tourism and improve
external perceptions
• Can see CSV quickly rising up the Government agenda –
way to encourage growth, tackle societal challenges &
keep costs down
• Through the sustainable tourism movement – a great
deal is already being done, but naturally – more can
always be done
• Key improvement area is in the recognition and
recording of tourism created shared value where it
occurs
THANK YOU
&
QUESTIONS