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