Facilitating Sustainable Innovations: Sustainable Innovation as a Tool for Regional Development Co-organized by The Greening of Industry Network, The Cartesius Institute and The Province of Fryslân June 26-28, 2008, Leeuwarden, The Netherlands Innovations And Barriers To Achieving Sustainable Tourism In Island Destinations. Dr. Sonya Graci Ted Rogers School of Hospitality and Tourism Management Ryerson University Dr. Rachel Dodds Ted Rogers School of Hospitality and Tourism Management Ryerson University ABSTRACT Over the last several years, the environmental and social impacts of the tourism industry have come to the forefront of global issues. This attention is due to the fact that tourism is considered the worlds’ largest industry and employs approximately ten per cent of the global workforce (Theobald 1998; Budeanu 1999; Pryce 2001). Due to the importance of this industry, there is a strong need to ensure that sustainable practices are implemented industry wide as environmental degradation has impacted several tourism destinations leading to a rapid decline in economy for many countries. Despite the movement to integrate sustainability practices into tourism destinations, considerations to reduce tourism’s impact on the environment have been mainly conceptual to date and have not translated into industry wide practice (Anguera, Ayuso et al. 2000; Pryce 2001). This is the case in the four island destinations studied, (Calvia, Mallorca, Spain; Mallorca; Sanya, Hainan Island, China and Gili Trawangan, Indonesia) and the burgeoning growth of the tourism industry has raised concern over the state of the environment (Cheyne and Barnett 2001). In order to move the agenda forward, how to assist these destinations in ensuring that its resources are not degraded beyond repair must be established. These studies identify the barriers faced by each destination in its varying attempts to implement innovative initiatives to offset impacts created by tourism development. Through the examination of barriers, recommendations for strategies to move the agenda forward can be identified. INTRODUCTION Since the Rio Earth Summit in 1992, the environmental and social impacts of the tourism industry have come to the forefront of global issues. Tourism, as an economic sector that needs to be managed sustainably, has been discussed at length through global conventions, policies within the United Nations and at the individual country level (Bohdanowicz 2005; Dodds 2005). Despite these initiatives, sustainability considerations have been mainly conceptual to date and have not yet been translated into industry-wide practice. This has been the case in our four case studies, that despite the development of plans and policies that are innovative, the actual implementation has been riddled with barriers that hinder the success of these initiatives. LITERATURE REVIEW Twenty years have passed since the 1987 World Commission on Environment and Development (WCED), where sustainable development had initially become a major global concern. At this event, the deteriorating condition of the world’s natural resources inspired an agreement amongst world leaders that sustainable development should be the central principle of governments, private institutions and organizations (WCED, 1987). This event brought attention to the fact that the destruction of the natural environment is clearly associated with the effects of human economic activities and developments (Middleton 1998). The concept of sustainable development, defined as “…development that meets the needs of the present without compromising the ability of future generations to meet their own needs” provided an alternative to past development schemes that were less practical as they were based largely on economics without sufficient thought to the long-term viability of the development and its externalities (WCED, 1987). Unlike these previous theories of development, sustainable development incorporated ecological, social and economic aspects and became the new global agenda for change (WCED, 1987; Sharpley, 2002). Subsequent to the World Commission on Environment and Development (for tourism is not mentioned in their documentation), the United Nations has viewed tourism as a key sustainable development issue in light of the industries’ both beneficial and destructive nature. In 1995, the World Tourism Organization, the World Travel and Tourism Council and the Earth Council published Agenda 21 for the Travel and Tourism Industry. The aim of this document was to establish systems and procedures to incorporate sustainable development considerations into the decision-making processes of tourism enterprises. It emphasized the importance of partnerships between government and industry, and demonstrated the benefits of making the whole industry sustainable and not just the niche ecotourism sector (Pryce 2001). Subsequently, through these several high level discussions, sustainable tourism has become a buzzword in tourism research. Despite the theoretical discussions regarding the need for sustainable tourism, there are few studies that indicate how to practically implement sustainable tourism. According to Liu (2003), there is an urgent need to develop policies and measures that are not only theoretically sound but also practically feasible. Without the development of effective means of translating ideals into action, sustainable tourism runs the risk of remaining irrelevant and inert as a feasible policy option for the real world of tourism development. In particular, ways of applying the principles of sustainable development to mainstream, conventional mass tourism should be studied (Liu 2003). In order to move this agenda forward in a practical and feasible fashion, what must be understood are the reasons for this gap between attitude and action. Despite the numerous reports, studies, and discussions on sustainable tourism, what is impeding its successful implementation and how these impediments can be overcome must be identified. In order to pursue this objective, an identification of barriers to sustainability was examined in the literature. Few studies have been conducted that identify the barriers to sustainability, especially within the context of tourism. The studies that have been conducted generally discuss potential barriers to sustainability. Kirkland and Thompson (1999) examined barriers that affect the implementation of environmental management initiatives in an organization. They state that the implementation of an environmental management strategy involves several dynamic stages that may be affected by various barriers. The specific barriers that may affect an organization depend on its size, corporate culture and formal and informal management styles, as well as the individuals involved in the process, and the stage of development of the organization’s environmental program (Kirkland and Thompson 1999). Many of these barriers may be related to one another and often the presence of one barrier may increase the likelihood of, or lead to, the presence of another barrier. Lack of information, knowledge, and resources; incompatibility with an organizations’ corporate culture; and the presence of multiple stakeholders with conflicting interests are the main barriers identified (Kirkland and Thompson 1999) . Drawing upon the findings of an empirical study of corporate environmental policies in the United Kingdom, Ghobadian, Viney et. al (1998) identified several factors that work with or against external pressures and determine the capability of the organization to implement environmental management strategies. The barriers identified by this study are technological requirements; opportunity and cost assessment; human resource availability; capital availability; organizational adaptability; and organizational culture and leadership. Approaches to environmental issues are influenced by the attitudes held by managers, and an unsupportive manager can be a significant hindrance to the development of an environmental program (Ghobadian, Viney et al. 1998). In a study of the Dutch dairy industry, Mauser (2001) identified variables important in determining the level of environmental management in an organization. These variables consist of the level of centralization of the authority to make environmental decisions and organizational culture. Organizations with a high level of centralization and an organizational culture open to environmental management will have a better level of environmental performance (Mauser 2001). Ownership structures incorporating multiple shareholders leads to conflicting interests and hinders the process of incorporating environmental management into an organization (Mauser 2001). This is especially pertinent on a regional basis, where ownership consists of several shareholder partnerships, many involving public organizations (Pine, Zhang et al. 2000; Pine 2002). Four studies were conducted on barriers to sustainable tourism development in island destinations. Islands were chosen as they share many similarities: they have discrete, physical boundaries within which dynamics are more clearly inter-related. Clear borders often suggest confinement to the islanders while, in turn, this specificity is often a draw for tourists seeking escape and relaxation (Gossling and Wall 2007). Many island states are also micro communities. As Richards 1982 argues “islands are contained and inclusive in most social respects, possessing their own organs of political representation and a self-conscious political identity (Richards 1982:154). As well as islands being accentuated by their social characteristics, warm water islands share similar geographic characteristics as most are mainly situated in what Turner and Ash (1975) called the “pleasure periphery”. These “warm water” destinations have historically focused on sun, sea and sand tourism for development purposes and many destinations are dependent on this type of mass tourism for a large proportion of their GDP (Gossling and Wall 2007; Dodds 2007). Mass tourism, developed quickly and with little differentiation, has forced islands to compete with other islands or sun, sea and sand destinations, often resulting in the neglect of historical, cultural and environmental impacts for the rest of the island. In addition, up/down turns in tourism numbers have rapid multiplier effects on the rest of the island economy and infrastructure strains are quickly felt as are the ratio of visitors to locals. This stage is often referred to as the decline stage in Butler’s (1980) destination lifecycle model, which explains various stages which a destination faces moving from exploration to involvement, development, consolidation and then either decline or rejuvenation. With uncontrolled growth and overdevelopment, the quality of the tourist experience is often eventually reduced and a destination’s comparative natural-uniquereal advantage is lost. As various authors (Briguglio et al. 1996; Butler 1999; Ioannides 1995; Mowforth and Munt 1998) have outlined, the potential negative effects of island tourism showcase the need to move towards more sustainanble forms of development and policies to manage and control tourism growth. RESEARCH SETTING This paper is based upon four studies that were conducted between 200X and 2007. The four studies examined the barriers to sustainable tourism development in island destinations. Sustainable tourism development was examined through qualitative interviews with key stakeholders in Sanya Hainan China (2004-2006); Malta (2004); Calvia, Mallorca, Spain (2004) and Gili Trawangan, Indonesia (2005-2007). All four case studies can be seen as archetypal examples of package holiday mass tourism (Gili Trawangan is still in its development stage but is moving towards this form of tourism) and have experienced over-development, environmental damage, overdependence on the tour operator and marketing dependant on pricing (Knowles and Curtis, 1999). Although two case studies are in a region on an island (Sanya in Hainan island and Calvia in Mallorca); Gili Trawangan is an island amongst a series of islands in a region; and Malta is a country, there are many similar elements. The islands receive a high economic contribution from tourism and the majority of their visitors come for the 3 S (sun, sand, sea) experience. All destinations have been developed on ad-hoc basis that has resulted in unplanned tourism resorts and environmental and social degradation. All the islands have attempted to integrate sustainability into its policies and development, Malta through a national policy; and Mallorca, Gili Trawangan and Hainan through regional policies developed by regional governments. Despite the sustainable tourism policies that have been developed on paper the move from attitude to action has been slow. It is due to this, that these studies have been conducted to determine the barriers that hinder action in regards to sustainable tourism implementation on these island destinations. METHODOLOGY The purpose of this research was to identify barriers to implementing innovative initiatives related to sustainable tourism. The research also investigated recommendations for future initiatives that would move the sustainability agenda forward. Applied research was used in all four studies to “find solutions to problems which arise in particular policy, planning or management situations” (Veal, 1997: 28). The approach used in these studies was both descriptive and exploratory in order to gain a broad understanding of the destination and barriers to achieving objectives. The studies all focused on case studies of island destinations with similar attributes. A case study is an in-depth investigation of a single instance and can involve a unit as small as an individual or as large as an entire community or region. It is the preferred strategy when “how” or “why” research questions are being posed and when the focus is on a contemporary phenomenon within some real-life context. The case study approach contributes to knowledge and understanding of individual, organizational, social and political phenomena. It allows an investigation to retain holistic and meaningful characteristics of real-life events such as organizational and managerial processes, neighbourhood change, international relations and the maturation of industries (Sommer and Sommer 1991; Yin 1994). As this research focuses on gaining further knowledge and understanding of the factors that hinder sustainability in an island destination, it was beneficial to conduct case studies of similar islands. This method emphasizes the individuality and uniqueness of the participants and setting as well as provides a means to test the theories presented in the literature (Sommer and Sommer 1991). Semi-structured in-depth interviews were conducted in each case study. The interviews discussed the history of sustainable tourism initiatives on the island, identified barriers to implementing sustainable tourism, strategies to overcome the identified barriers and innovative means to increase the level of sustainability on the island. Interviews were conducted with key stakeholders; businesses, tourists, employees, government and the local community on each island. The data was analyzed using a coding method. This method identified emerging themes related to barriers, strategies and recommendations for innovative initiatives (Sommer and Sommer 1991). FINDINGS AND DISCUSSION Several themes identifying the main barriers to sustainability were identified through these four case studies. The research concluded that although there were great strides made towards sustainability through the high level policies and general movement towards these actions, there were still several barriers faced that hinder substantial action on the matter. The barriers that were faced by the four islands have been organized into four general themes: (1) inadequate resources particularly funds and information; (2) corporate culture of the organization/destination; (3) government bureaucracy; and (4) economic priority over environmental and social concerns. These barriers are not different from the literature however this paper provides context in terms of what island destinations face while moving towards sustainability. This paper identifies that the idea for sustainability may not be enough to motivate innovation to occur. Theme One: Inadequate Resources Despite enthusiasm from a number of business owners and government on the islands, sustainable tourism initiatives continuously faced a number of barriers. The first theme identified was related to barriers associated with inadequate resources such as high costs, lack of information, skills, knowledge, expertise, time and the reluctance to acquire assistance from outside consultants. It was these particular barriers that were identified as the most significant and often experienced. Several of the interviewees indicated that despite the numerous ideas for initiatives (for example, payments to stop fisherman from illegal fishing in Gili Trawangan), without adequate resources many of these plans fail. For example, the Gili Eco-trust, a not for profit organization that is charged with implementing sustainability initiatives in Gili Trawangan attempted to implement a waste management collection system including the building of a landfill with areas to separate and organize recyclables. Due to inadequate resources such as the lack of information, skills, expertise and the reluctance to acquire assistance from outside consultants the landfill development failed. What resulted was an open dump pit and no real collection system of waste in general let alone sorted at source. The walls built around the landfill were stolen piece by piece by deviant locals and an open area of hazardous and non hazardous waste resulted in breeding rodents and leachate in the water stream. A number of business owners and the current local government identified that inadequate resources was the greatest barrier as it is realized that without proper systems in place the environment will degrade even further which will affect tourism. The problem remains the ability to implement feasible systems without the necessary funds and knowledge. Without sufficient resources, the businesses and local government cannot properly plan and implement sustainability initiatives and, in many cases, do not know where to begin. Resources include finances, knowledge, time and skilled personnel to design, implement and guide the sustainability program. Many of the stakeholders claim that because of the non-regulatory nature of implementing sustainability initiatives in these four destinations, these actions are not a priority in the organization or destination and, therefore, resources such as money and employee time are not allocated to develop programs. Much of the time required to research initiatives occurs on a voluntary basis, resulting in the slow progression of many sustainability programs. Despite the enthusiasm from a number of organizations and local government, they faced numerous barriers related to resources. Several of the respondents identified that despite the numerous ideas for initiatives, without adequate resources many of these plans fail. This is especially pertinent in destinations in decline where the market has fluctuated considerably over the years and many tourism organizations are struggling economically. Investments in sustainability are not a priority. Lack of capital for sustainability initiatives is also due to the short-term thinking employed in many of destinations. A focus on short term objectives creates a negative feedback loop with economic priority – the shorter the term, the more attention is focused on job creation and development for growth and other immediate results, which leads to economics being given priority over environmental and social concerns. This harmful feedback loop is often perpetuated by political agendas being usually of a five-year duration whereas sustainability objectives often need considerations of ten plus years at least. A shorter term is simply not long enough to achieve sustainability objectives. In Sanya, general managers of accommodations are typically employed by one facility for a maximum of one to two years. At the outset of their employment, general managers think very short term and institute one-year business plans. The business plans focus on generating revenue rather than implementing a long-term strategy for sustainability of the facility. In addition, there is a very high turnover rate with employees. Employees also stay employed by a facility on average for one year. In addition, political terms are often only four to five years which is not long enough to achieve sustainable tourism objectives. The lack of skills, knowledge and expertise in other environmental matters has led to the very slow uptake of initiatives. There is very little knowledge about sustainability in general, in terms of what it really means and how to achieve it. Whereas there may be a few involved stakeholders in terms of non governmental organizations, government and enlightened business owners and managers, there is a gap in what sustainability actually means in practice. Theme Two: Incompatibility with the Corporate Culture of the Organization/Destination. The second theme was related to the corporate culture of the island. Corporate culture is comprised of the attitudes, experiences, beliefs and values of an organization. An organization, and in this case a destination, has a corporate culture that has its own behavioral quirks and interactions which can affect the development and implementation of programs and projects. Isolation of environmental issues from other aspects of the destination, an incompatibility with the current corporate culture of the organization and/or destination, and the bureaucracy that exists within each destination have affected the implementation of sustainable tourism initiatives. There was a lack of integration amongst businesses and local government, as well as local government and higher levels of government. In all the destinations, it was indicated that without national and regional support, policy plans could not be effective as sustainability is wider spread than at the local level. In addition, instances of the local government not communicating to the higher levels of government was evident. For example, in 1998 the government of Western Nusa Dua in Indonesia developed the Gili Mantra Marine National Park Strategy. The marine park strategy however was never communicated to the local government or the businesses on the island; was never developed as a policy and was never implemented in practice. The presence of multiple stakeholders with conflicting interests can also hinder the development of sustainability initiatives in island destinations. Lack of stakeholder involvement in decisions was mentioned by a large majority of the respondents in all four case studies as a major barrier to development. For example, Friends of the Earth in Calvia, Spain have raised considerable awareness about the issue of sustainability and the environment and have pushed these considerations in to the policy arena through the use of the media and promotional pieces to the public, however were not involved heavily in the policy process for Calvia. Theme Three: Government Bureaucracy The third theme identified was related to government. Government bureaucracy are significant barriers in all four destinations despite the government being the most salient stakeholders that can influence change. Bureaucracy has complicated government procedures in all four destinations. Many government agencies are responsible for various regulations associated with environmental and social aspects. The tourism industry has to work with the bureaucracy in these government agencies as well as between them. In Sanya China for example, on a local level, an accommodation facility has to work with five different agencies on a similar issue. The “silos” and conflicts between government departments impede the adoption of sustainability strategies. As government agencies have numerous levels of authority and require massive amounts of paperwork, the implementation and enforcement of sustainability initiatives may fall to the wayside. In Calvia, although the tourism policy was the central framework for the local government, there was a lack of coordination with other levels of government and other government bodies. Sustainable tourism requires close coordination between many other sectors – taxation, transportation, housing, social development, environmental conservation and protection and resource management. It is often the case that a policy is subjected to change during the process of implementation (Younis, 1990) and these other sectors need to be aware of each other and communicate their needs and concerns in order to move the agenda forward. Theme Four: Economic Priority Over Social and Environmental Concerns. One of the most common barriers to successfully implementing sustainable tourism initiatives was that economics took priority over social and environmental concerns. This barrier is inextricably linked with the short-term focus of governments and organizations and multiple other barriers arise out of this. A focus on short-term objectives creates a negative feedback loop with economic priority. In addition, the lack of environmental awareness has also been determined to be a key impediment in this study. It is difficult to discuss sustainability in a destination when there is not a complete understanding of the meaning amongst key stakeholders. In Sanya, China, to many of the tourism organizations sustainability was never heard of and the definition of environmental management for the majority of the population was defined as cleanliness. The local community in Sanya consists of residents, employees of the tourism organizations, government agencies and corporate decision makers. The majority of the community does not have the environment as a priority on their mind. Increased awareness is necessary so that the community keeps Sanya clean, as spitting, littering and illegal dumping of hazardous waste and sewage are normal daily occurrences. In addition, as Sanya is a new tourist destination on an island rich in natural resources, there is no immediate demand for energy and water conservation, as they are not faced with immediate crises. It is therefore indicated that economics takes priority over social and environmental issues as the issues are not deemed as immediately pressing. Many of the study respondents in each case study indicated that action should be taken to educate the local residents. Without a general increase in environmental awareness, it is not beneficial for the tourism industry to implement sustainability initiatives beyond ones with immediate economic gain. . Environmental education and awareness, not only in the tourism organizations itself but within the community, is imperative in order to increase the overall level of sustainability. This is important, as tourism facilities do not operate in a vacuum and the implementation of sustainability initiatives are discouraged when sustainability is not a priority in the community. The key themes identified are the most often encountered barriers to sustainability. Inadequate resources; the incompatibility with corporate culture in an organization/destination; government bureaucracy and economic priority over social and environmental concerns. Through this research, strategies and innovative initiatives were identified to overcome the stated barriers. Strategies such as conducting a cost-benefit analysis of initiatives; employee training; marketing and advertising; customer education; guidance and subsidies from government agencies were identified as a means to overcome potential barriers. The strategies and incentives identified contributed to the recommendation for the development of a multi-stakeholder sustainable tourism partnership that encourages and supports action in the tourism industry. The partnership, which incorporates the participation of all involved stakeholders in the industry, will provide a method to begin the dialogue, overcome several of the major barriers and increase the level of sustainability in the tourism destination. RECOMMENDATION: A MULTI-STAKEHOLDER SUSTAINABLE TOURISM PARTNERSHIP Collaboration is seen as key to moving the tourism industry towards sustainability. Throughout the literature, cross-sector partnerships are recommended for their likelihood to result in sustainable development outcomes (Selin 1999; Bramwell and Alletorp 2001) and subsequently form the basis of the recommendations to move the tourism industry forward to a higher level of sustainability. The recommendation was developed with one main goal, to develop a multi-stakeholder partnership where each stakeholder has various roles and responsibilities that contribute to the overarching goal of moving the tourism industry towards sustainability. This partnership recommends the development and implementation of several initiatives based on a cohesive environmental vision that enables the industry to focus resources, share information, increase environmental action in all facets of the industry, learn from the leaders and ultimately protect the resources that sustain the industry. The partnership would include all stakeholders (the tourism businesses or allocated representatives; the local tourism associations; the local, provincial and national governments, certification bodies, non-governmental organizations and local community representatives. The partnership would provide funding and financial assistance through mechanisms such as a revolving funds, tax breaks and government subsidies. It would also provide guidance and training through best practice exchange between tourism organizations and the partner agencies, training and education through books, workshops, seminars and conferences and support for third party certification through certification bodies. In addition, the partnership would support the marketing and advertising of the tourism organizations that are practicing sustainability. The purpose of the partnership is to involve all the stakeholders in the tourism industry in order to alleviate the impediments that hinder the increase of sustainability in the tourist destination. It also provides a holistic approach to sustainable tourism implementation that includes all stakeholders involved. CONCLUSION Through these four case studies it is evident that there are several barriers that impede the implementation of sustainability initiatives in the tourism industry, more specifically in island destinations. The barriers identified are specific to these four cases but are broad in nature. This exemplifies the fact that businesses generally face the same impediments as others around the world and that general strategies that have traditionally worked in other regional contexts can be employed. This research also identified that applications such as partnerships, which is a relatively new concept in the island studied can be undertaken with successful results. The recommended partnership addresses many of the factors that have impeded sustainability progress in the four destinations tourism industry and can potentially lead to closing the gap between attitude and action. Further, this partnership, which would represent a new means of stakeholder integration and dialogue in these destinations, would address regionally specific barriers such as bureaucracy and low public environmental awareness. This would also open the door for other tourism destinations to develop similar partnerships to increase the level of stakeholder integration and sustainability. Despite the multitude of studies conducted on environmental management and more specifically sustainable tourism, there has been limited insight as to the reasons for the slow implementation of sustainability initiatives in the tourism industry. Why some organizations are more environmentally proactive than others and what hinders increasing performance in terms of sustainability in an organization is not fully understood. 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