Creating Shared Value
Harold Goodwin
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1
What is the purpose of
tourism?
Ask not what your country
can do for you, ask what you
can do for your country.
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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
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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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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
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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
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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An outdated approach to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.”
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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”
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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
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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
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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
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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