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Synthesis and presentation of the 3rd Summits of Tourism in 2001 : the social aspects of sustainable development

Prof. Peter KELLER - Chairman of the Scientific Commitee of the Tourism Summits, Lausanne/Bern, Switzerland

The theme

The third of our Tourism Summits will deal with the human and social purposes of sustainable development in tourism. This particular aspect is often left out of the political debate on sustainable development.

It is nonetheless accepted by public opinion that treating nature and the environment with respect is only possible if mankind is able to continue in the future to satisfy its basic needs, both material and immaterial. In this context the theme chosen for the second Tourism Summits, namely the growth of the economy and of tourism, should not be viewed as an end in itself. On the basis of a normative and ethical approach such growth would have to increase the individual happiness of the widest possible cross-section of the population.

The objectives

The main objective of the third of our "Summits" is to implement in the tourism sector a concept of society based on greater respect for the true value of the individual and of the community to which he belongs. This presents us with a real challenge. And it calls for a far-reaching, multidisciplinary debate - a debate which has already begun but which has a long way to go before it reaches anything like the required depth. The nature of this more social concept of tourism changes with the different actors.

Thus for the individual in the role of visitor, it means having the opportunity to go away and to spend time elsewhere in freedom, without any physical or material constraints. On the other hand, for the individual as "host" it means being able to find work that pays a decent wage, with satisfactory working conditions. As for the tourism entrepreneur, his problem is to remain competitive in the markets, and to be able to earn enough so that he can pay competitive wages and offer acceptable working conditions, and at the same time be able to include all social and environmental costs in the price of the product.

It is also important for the local community of a tourism site be in a position to maintain the kind of social fabric that enables it to strengthen the site's cultural identity and to prevent its active population from being drawn away by the magnetic pull of some nearby metropolis. As for the political authorities, it is absolutely essential for them to be able to guarantee the freedom to travel, and also the quality of life in the tourism centres under their control.

An outline of the conceptual framework

The scientific committee will discuss the conceptual framework for the third Tourism Summits early in the coming year. In doing so it will need to address itself to the following questions :

The human desire to travel, and respect for the otherness of host populations

How is it possible to satisfy the desire for travel of large segments of the population while at the same time respecting those who live and work in the places visited ?

travel intensities and the new forms of social tourism

making visitors aware of the unique nature of the places visited

ensuring the security and health of visitors while protecting them from exploitation

The new division of labour on a global scale

What impact is globalisation having at the professional level in tourism ?

the need for new skills, new types of training, new professions and careers

the industrialisation and professionalisation of tourism

the search for co-operation with other economic sectors

Eliminating structural weaknesses in the labour market

How can employment in tourism be made more attractive both to future managers and to the rank and file ?

ways of increasing productivity and wage levels

new methods for managing the seasonal nature of tourism

improving working conditions and the social partnership

Improving the social fabric

How can we prevent an exodus of the active population from tourism sites and maintain a social fabric which residents and visitors alike will find attractive ?

the creation of local socio-professional communities

maintaining the cultural identity of the site, and its original atmosphere

integrating social aspects into management and the site's quality label

Keeping local development under control

How can local communities encourage development and at the same time improve their own quality of life ?

establishing social indicators at the local level

the participation of local actors in developing tourism and the economy

diversifying economic structures and promoting the site

Organisation

The scientific committee will provide support for debate of the central issues and attempt to offer as many interesting cases as possible. The site of Chamonix Mont-Blanc will serve as a living laboratory for our analysis of the social aspects of sustainable development.

We shall report the progress being made in our scientific endeavours on the Internet site of the Tourism Summits, at : www.sommets-tourisme.org

Conclusions

In the 2nd of our "Sommets du tourisme" we analysed the determinants of growth in depth. The quality of the speakers and of the subsequent discussions were excellent. My thanks to all the speakers for their considerable efforts, and to participants for their exemplary patience. It is time now to consider the most important conclusions :

1

Only in mathematics is there such a thing as unlimited growth. In tourism growth is limited by economic and ecological shortcomings. Exponential growth occurs only in certain phases, countries, sites and enterprises.

2

No one denies the fact that there is great potential for growth in tourism. But it is equally clear that such growth can never be continuous. Demand in tourism is dynamic and often too volatile, influenced as it is by ups and downs in the economy, by certain risks and by structural shocks, as well as by a multitude of exogenous factors and also by errors of management on the part of the economic players and the authorities.

3

There was not a single mention of zero growth. Although this concept is ecologically desirable for reducing waste and pollution, it is not compatible with sustainable development, which requires meeting both the material and the non-material needs of mankind. It is generally accepted that we need a leaner kind of growth, with improved quality. This is not automatically guaranteed for any site or enterprise.

4

At a time of hyper-competition world-wide between a growing number of destinations and economic players, there is a new situation at the level of flows and receipts. And there are both winners and losers, in the short term at least. No one argues with the fact that the framework conditions are more conducive to the rapid growth of tourism in the newly emerging economies than in the more advanced economies of the traditional tourism countries.

5

It is not only because of the tremendous extension of the market that the traditional tourism countries share of international tourism is diminishing. There is also a correlation between the level of development and the degree of tourism specialisation. This is falling in the wealthier countries. Some consider tourism as "a poor man's good" in countries that profit from their own "backwardness".

6

The fact is however that the ever faster pace of development in the emerging tourism economies, together with the levelling off of prices made possible by their increasing integration in the world economy, reduce the comparative advantages of the new destinations, which are indeed very much in demand. This can be seen from the disproportionate growth of intercontinental tourism.

7

The traditional tourism countries, which benefit from larger multipliers of tourism spending, are still in the running however. They are completely in control of their tourism industries. Tourism enterprises are getting better and better at creating dreams for tourists. Moreover, tourism is part of a new quaternary sector which can be described as a sort of "emotional experience" sector of the economy. This could mark the beginning of a new long cycle of growth capable of satisfying man's non-material needs -- for physical, intellectual and spiritual well-being -- which are at the pinnacle of the Maslow pyramid. Households are able to finance their efforts to fulfil these needs thanks to the productivity gains made possible by information technology. This new kind of tourism is compatible with the notion of sustainable development. For visitors increasingly want to see an environment that is unique, authentic and intact.

8

At the level of the individual destination or company, there is a constant struggle for economic survival in a world market that has been extensively deregulated, and in which competition is fierce. The supply must constantly be adapted to the needs of the customer, and this is possible only through major investments.

9

The renewal of supply today requires new mechanisms and instruments of creation of innovation. The development and commercialisation of new tourism products today requires knowledge of the test markets, an appropriate communication approach and offensive benchmarking based on the best enterprises of a branch. The "knowledge management" should integrate all the relevant know-how available in the companies' business models and plans, to ensure additional growth.

10

The availability of capital is an important factor when it comes to renewing the main structures in the areas of tourism infrastructure and superstructure. It has been observed that there is no difficulty in financing key projects based on acceptable corporate and shareholder values. However, service-oriented small-to-medium-sized enterprises (SMEs) which are not lean and productive enough, and which suffer from seasonal demand fluctuations, are not particularly profitable. The traditional credit instruments drive them deeper into debt. Lack of shareholders' equity and venture capital could increasingly become factors that limit growth.

11

There are thus very good reasons for improving the industrial organisation of tourism, making an effort to overcome the structural weaknesses of tourism-related SMEs in resorts so as to make them more productive and profitable. The Schoerghuber industrial group has shown how to achieve economies of scale and synergies, resulting in considerable external growth. The example they provide is that of a vertically integrated holding that diversifies horizontal and vertical risks at the level of branches and destinations. This is certainly a "benchmark" for the managers of traditional tourism destinations.

12

It has been said that destinations are more or less condemned to "going big" or "going home", so that enterprises are obliged to co-operate in the development and commercialisation of new products. The so-called "Human-powered mobility" project and the paths created for cycling in Switzerland, as well as other new "back-to-nature" forms of tourism have demonstrated that co-operation between several players in dense networks is possible and can go hand in hand with commercial success.

13

Opposition of the American "corporate model" to the so-called "community model" of Europe demonstrated that it becomes difficult to manage resorts like companies when they grow too big and are difficult to manage. So-called "stakeholders" must be integrated in the economic processes of the local community. It has been observed that there is not so much opposition between development models as convergence, albeit at a superior level of co-operation.

14

Finally, it has been found that incentive systems are of considerable importance for reinforcing market initiatives, due to the high transaction costs for the development and commercialisation of products. Countries that are highly specialised in tourism require a specific tourism policy. Typically this has to address the issue of growth - of which there is usually either too much or too little. It is unanimously agreed that tourism regions need to be jointly managed in a so-called "public-private partnership" to ensure sustainable growth in accordance with the principles of destination management.

15

It is precisely this problem that we shall address on the occasion of the 3rd round of "Sommets du tourisme", which will deal with the socio-economic aspects of tourism. We shall see how the new division of labour on a world-wide scale is affecting the social fabric in tourism resorts. And we shall discuss ways to eliminate structural weaknesses in the labour market.

16

It is a question indeed of taking the human aspects of sustainable development into consideration. How can jobs in tourism be made more attractive, so as to avoid a flight of labour from the countryside and the gravitation of tourism workers to the urban centres? It is our intention to avoid ideological bias in our approach to these problems, while bearing in mind that tourism is not an isolated sector of the economy or of society, a prisoner of its location. Let me repeat what I said in my opening address in Geneva : "Tourism is little more than a mirror of socio-economic development." But a tourism policy that masters the problem of growth can contribute to sustainable development. Tourism is a way of combating poverty !

1	Only in mathematics is there such a thing as unlimited growth. In tourism growth is limited by economic and ecological shortcomings. Exponential growth occurs only in certain phases, countries, sites and enterprises.

2	No one denies the fact that there is great potential for growth in tourism. But it is equally clear that such growth can never be continuous. Demand in tourism is dynamic and often too volatile, influenced as it is by ups and downs in the economy, by certain risks and by structural shocks, as well as by a multitude of exogenous factors and also by errors of management on the part of the economic players and the authorities.

3	There was not a single mention of zero growth. Although this concept is ecologically desirable for reducing waste and pollution, it is not compatible with sustainable development, which requires meeting both the material and the non-material needs of mankind. It is generally accepted that we need a leaner kind of growth, with improved quality. This is not automatically guaranteed for any site or enterprise.

4	At a time of hyper-competition world-wide between a growing number of destinations and economic players, there is a new situation at the level of flows and receipts. And there are both winners and losers, in the short term at least. No one argues with the fact that the framework conditions are more conducive to the rapid growth of tourism in the newly emerging economies than in the more advanced economies of the traditional tourism countries.

5	It is not only because of the tremendous extension of the market that the traditional tourism countries share of international tourism is diminishing. There is also a correlation between the level of development and the degree of tourism specialisation. This is falling in the wealthier countries. Some consider tourism as "a poor man's good" in countries that profit from their own "backwardness".

6	The fact is however that the ever faster pace of development in the emerging tourism economies, together with the levelling off of prices made possible by their increasing integration in the world economy, reduce the comparative advantages of the new destinations, which are indeed very much in demand. This can be seen from the disproportionate growth of intercontinental tourism.

7	The traditional tourism countries, which benefit from larger multipliers of tourism spending, are still in the running however. They are completely in control of their tourism industries. Tourism enterprises are getting better and better at creating dreams for tourists. Moreover, tourism is part of a new quaternary sector which can be described as a sort of "emotional experience" sector of the economy. This could mark the beginning of a new long cycle of growth capable of satisfying man's non-material needs -- for physical, intellectual and spiritual well-being -- which are at the pinnacle of the Maslow pyramid. Households are able to finance their efforts to fulfil these needs thanks to the productivity gains made possible by information technology. This new kind of tourism is compatible with the notion of sustainable development. For visitors increasingly want to see an environment that is unique, authentic and intact.

8	At the level of the individual destination or company, there is a constant struggle for economic survival in a world market that has been extensively deregulated, and in which competition is fierce. The supply must constantly be adapted to the needs of the customer, and this is possible only through major investments.

9	The renewal of supply today requires new mechanisms and instruments of creation of innovation. The development and commercialisation of new tourism products today requires knowledge of the test markets, an appropriate communication approach and offensive benchmarking based on the best enterprises of a branch. The "knowledge management" should integrate all the relevant know-how available in the companies' business models and plans, to ensure additional growth.

10	The availability of capital is an important factor when it comes to renewing the main structures in the areas of tourism infrastructure and superstructure. It has been observed that there is no difficulty in financing key projects based on acceptable corporate and shareholder values. However, service-oriented small-to-medium-sized enterprises (SMEs) which are not lean and productive enough, and which suffer from seasonal demand fluctuations, are not particularly profitable. The traditional credit instruments drive them deeper into debt. Lack of shareholders' equity and venture capital could increasingly become factors that limit growth.

11	There are thus very good reasons for improving the industrial organisation of tourism, making an effort to overcome the structural weaknesses of tourism-related SMEs in resorts so as to make them more productive and profitable. The Schoerghuber industrial group has shown how to achieve economies of scale and synergies, resulting in considerable external growth. The example they provide is that of a vertically integrated holding that diversifies horizontal and vertical risks at the level of branches and destinations. This is certainly a "benchmark" for the managers of traditional tourism destinations.

12	It has been said that destinations are more or less condemned to "going big" or "going home", so that enterprises are obliged to co-operate in the development and commercialisation of new products. The so-called "Human-powered mobility" project and the paths created for cycling in Switzerland, as well as other new "back-to-nature" forms of tourism have demonstrated that co-operation between several players in dense networks is possible and can go hand in hand with commercial success.

13	Opposition of the American "corporate model" to the so-called "community model" of Europe demonstrated that it becomes difficult to manage resorts like companies when they grow too big and are difficult to manage. So-called "stakeholders" must be integrated in the economic processes of the local community. It has been observed that there is not so much opposition between development models as convergence, albeit at a superior level of co-operation.

14	Finally, it has been found that incentive systems are of considerable importance for reinforcing market initiatives, due to the high transaction costs for the development and commercialisation of products. Countries that are highly specialised in tourism require a specific tourism policy. Typically this has to address the issue of growth - of which there is usually either too much or too little. It is unanimously agreed that tourism regions need to be jointly managed in a so-called "public-private partnership" to ensure sustainable growth in accordance with the principles of destination management.

15	It is precisely this problem that we shall address on the occasion of the 3rd round of "Sommets du tourisme", which will deal with the socio-economic aspects of tourism. We shall see how the new division of labour on a world-wide scale is affecting the social fabric in tourism resorts. And we shall discuss ways to eliminate structural weaknesses in the labour market.

16	It is a question indeed of taking the human aspects of sustainable development into consideration. How can jobs in tourism be made more attractive, so as to avoid a flight of labour from the countryside and the gravitation of tourism workers to the urban centres? It is our intention to avoid ideological bias in our approach to these problems, while bearing in mind that tourism is not an isolated sector of the economy or of society, a prisoner of its location. Let me repeat what I said in my opening address in Geneva : "Tourism is little more than a mirror of socio-economic development." But a tourism policy that masters the problem of growth can contribute to sustainable development. Tourism is a way of combating poverty !