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International Centre for Responsible Tourism

Harold Goodwin

Responsible Tourism

Business case

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The Business Case for Responsible Tourism The right thing

to do Minimising riskLicense to

operateProduct quality Cost savings Staff morale Market

Advantage

Market Advantage

Experience – richer– more authentic – guilt free

Differentiation and PR

Reputation Referrals Repeats

EXPERIENCESGUILT FREE

DEMAND

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Guilt free consumerism – a USP?

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% people who reported that they hadat least once during the year ‘99 ‘08

Actively sought information on a company’s reputation

24 36

Felt guilty about an unethical purchase

17 38

Chosen product/service on basis of company’s responsible reputation

51 57

Recommended 52 55*

Recycled 73 96

Co-op Bank Ethical Consumer Report *2007

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Experiential Tourism

The experience economySeeking memorable experiencesDriving increased tourismViral marketing

Engagement in culture, community and the environment

Shared product of host and guest Quality, depth, create memories

You can taste the difference

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Association of Independent Tour Operators (AITO) 2000

… we recognize that in carrying out our work as Tour Operators we have a responsibility to respect other people’s places and ways of life.

We acknowledge that wherever a Tour Operator does business or sends clients it has a potential to do both good and harm, &

we are aware that all too often in the past the harm has outweighed the good.

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AITO Protect the Environment – its flora,

fauna and landscapes Respect local cultures – traditions,

religions and built heritage Benefit local communities – both

economically and socially Conserve natural resources – from

office to destination Minimise pollution – through noise,

waste disposal and congestion

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UK Consumer Demand 1999Importance in determining holiday choice (%) H M LAffordable cost 82 12 3

Good weather 78 14 5

Quality hotel and facilities 71 15 8

Good information on social, economic & local

42 30 23

Significant opportunity for interaction 37 37 23

Designed to minimise environmental damage

32 34 27

Company has ethical policies 27 34 30

Repeat client - used the company before 26 30 38

Ipsos-RSL on behalf of Tearfund November 1999 (n=2032)

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Change is taking place in holidaymaker aspirations Companies are making explicit

responsible tourism commitments. When asked whether or not they would

be more likely to book a holiday with a company if they had a written code to guarantee good working conditions, protect the environment and support charities in the tourist destination

1999 45% said yes 2001 52% said yes. + 7%

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Becoming Mainstream Mintel: by 2010 outbound UK ethical

market forecast to be 2.5m trips per year.

Jane Ashton head of CSR at First Choice: “We’re not experiencing a huge demand

from the average consumer, but we do believe that awareness is increasing, and in a few years time we will have needed to have integrated these principles into our supply chain.”

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Consumer Perceptions of Canada Drawing on CTC Global Tourism Watch Year 3, 2009 data the research program was implemented in ten global

markets – Canada, the US, Mexico, the UK, France, Germany, Japan, South Korea, Australia and China

residents aged 18 and older, who have taken a pleasure trip where they stayed at least one night in paid accommodations in the past three years, or who plan to take such a trip in the next two years

a web-based panel survey was conducted with approximately 1,500 long-haul pleasure travellers, with a quota of 200 to 300 recent visitors to Canada (past three years) set for each market.

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I always take environmentally friendly tourism considerations into account when making a decision about where to travel to

Mexico 88%

China 68%

Korea 60%

France 56%

Germany 33%

Japan 33%

USA 31%

Canada 30%

Australia 28%

Where is the UK in this?

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I always take environmentally friendly tourism considerations into account when making a decision about where to travel to

Mexico 88%

China 68%

Korea 60%

France 56%

Germany 33%

Japan 33%

USA 31%

Canada 30%

Australia 28%

UK 23%

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For an equivalent experience I am more likely to choose an environmentally friendly travel option over one that is not

Mexico 88% 65%

China 68% 80%

Korea 60% 72%

France 56% 62%

Germany 33% 39%

Japan 33% 45%

USA 31% 38%

Canada 30% 43%

Australia 28% 32%

UK 23% 29%

tie breaker

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For an equivalent experience I am willing to pay a higher price for an environmentally friendly travel option over one that is not

Mexico 88% 65% 47%

China 68% 80% 56%

Korea 60% 72% 51%

France 56% 62% 36%

Germany 33% 39% 27%

Japan 33% 45% 26%

USA 31% 38% 24%

Canada 30% 43% 23%

Australia 28% 32% 20%

UK 23% 29% 20%

What happens if we add in the experience: authenticity?

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As part of an authentic experience that explores a destination’s natural and cultural heritage I am willing to pay a higher price for an environmentally friendly travel option over one that is not

Mexico 88% 65% 47% 53%

China 68% 80% 56% 56%

Korea 60% 72% 51% 57%

France 56% 62% 36% 45%

Germany 33% 39% 27% 37%

Japan 33% 45% 26% 41%

USA 31% 38% 24% 31%

Canada 30% 43% 23% 28%

Australia 28% 32% 20% 25%

UK 23% 29% 20% 26%

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As part of an authentic experience that explores a destination’s natural and cultural heritage I am willing to pay a higher price for an environmentally friendly travel option over one that is not

Mexico 88% 53% - 35%

China 68% 56% - 12%

Korea 60% 57% - 3%

France 56% 45% - 11%

Germany 33% 37% + 4%

Japan 33% 41% + 8%

USA 31% 31% -

Canada 30% 28% - 2%

Australia 28% 25% - 3%

UK 23% 26% + 3%

1. There are only particular markets

2. All travel choices are aspirational – constrained by price.

3. You can ignore particular market segments?

Recession as a sustainability catalyst?

Corporate Outlook: Market declines mean bottom line core area of concern Sound sustainability management = reduced operational costs. The

business case is there Risk aversion through sustainability & brand loyalty? (Top of the list

for online booking selection. BP Gulf of Mexico Oil crisis saw shares drop 6.6% & 12% drop at lowest point)

Consumer Opinion: Value for money and price are key Sustainability can be used to ADD VALUE to the tourism product Sustainability doesn’t have to cost the consumer Consumer – now expecting sustainable tourism (but the

responsibility rests with you / 47% on ABTA Consumer trends)

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The purchasing decision 1. Destination/activity

2. Price VFM & EFM

3. Availability/ trip length

4. USP or “added value”- non-price competition – For some consumers that can be a

responsible tourism element.

– Brand positioning and repeat business and referrals

– Market trend towards more experiential holidays

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There are only particular markets

Think about why you choose a particular ice cream ….

All travel choices are aspirational – constrained by price.

Nationality, age, interests all shape consumer choices.

Perhaps you can ignore particular market trends and segments? But they are growing…..

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1. minimises negative economic, environmental and social impacts

2. generates greater economic benefits for local people and enhances the well being of host communities; improves working conditions and access to the industry

3. involves local people in decisions that affect their lives and life chances

4. makes positive contributions to the conservation of natural and cultural heritage embracing diversity

5. provides more enjoyable experiences for tourists through more meaningful connections with local people, and a greater understanding of local cultural, social and environmental issues

6. provides access for physically challenged people 7. is culturally sensitive, encourages respect between

tourists and hosts, and builds local pride and confidence

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World Responsible Tourism Day Benefits of involvement Becoming involved in WTM's World Responsible

Tourism Day can have both commercial and personal benefits.

Demonstrate to staff, suppliers, customers and the world that you recognise and value the importance of a sustainable travel and tourism industry that is both responsible and caring.

Here are just some of the ideas that you could include in your participation:– promote your initiatives through press releases,

radio and TV interviews– use the WTM World Responsible Tourism Day logo on

your literature– inform and gain the support of your

local/regional/national government representatives for WTM World Responsible Tourism Day

Promoting Cape Town as a responsible tourism destination on responsibletravel.com

What is responsibletravel.com?• The world’s first and leading organisation for responsible tourism•A website that generates bookings for smaller, rural and more specialised tour operators, accommodation owners and other tourism service providers

•Established in 2001•350,000 Monthly site visitors•146,500 Database of bookers and enquirers that we send e-magazines to•646,035 booking enquiries and counting•$100 Million total bookings•3900 Holidays•4,815 Traveller reviews and counting•1,000 Members (tour operators, accommodation owners and other tourism providers)

Marketing your tourism business through responsibletravel.com

• What we have done for the past 10 years is to sort, sift and collect holidays (accommodation owners and multi-day trip tour operators) from around the world that do two things –

– Provide visitors with a real connection with the people, the landscape, the culture and the environment.

– Reduce your environmental impacts and make a positive contribution to the local economy and communities.

• This summer we will be opening up our website to small tourism service providers - accommodation, day trip operators, guides, organic restaurants or those serving local produce, craft markets, museums, parks, etc, who will be able to build and manage their own pages on our site for FREE.

• We will be the first and only tourism website specialising in responsible tourism to offer small tourism providers a free place to promote their business.

Why Cape Town?• We are keen to work first with destinations with proven, demonstrable

commitments to responsible tourism at policy level. • As Responsible Tourism Award winner for Best Destination in 2009, the

City of Cape Town was recognised for identifying and prioritising local issues as city concerns, embedding responsible tourism in the city’s policy on developing tourism in general.

• It is for these reasons that responsibletravel.com has chosen to approach the City of Cape Town first – it is the first and only destination we have approached in this way.

• We want to help build, celebrate, and promote the wealth of responsible tourism experiences in Cape Town, and to do so in a way that reflects the diversity and authenticity of tourism in this destination.

What next?

Visit responsibletravel.com and pre-register your interest for a free listing on our site and be a part of our growing collection of responsible

tourism experiences