Presenter: DR. RAY MUTINDA, UNECA SRO-EA ……………………………………………………………………. UNECA REGIONAL TOURISM MEETING FOR EASTERN AFRICA 1 ST -3 RD JUNE, 2016 Kigali, Rwanda ECONOMIC SUSTAINABILITY: Industry perspectives in sustainable tourism development

Introduction  Tourism Sustainability has been viewed as a means towards realizing  future economic prosperity,  social equity,  local control of tourism resources,  community well-being, cultural richness  as well as concurrently maintaining the physical integrity, biological diversity, resource efficiency and environmental purity of a tourism destination and (or) place 6-2

The Key Question: How it is possible to create wealth for tomorrow’s businesses, communities and governments, and value for tomorrow’s consumer in an environmentally sustainable manner? (WEF, 2009)  The aim of this thematic area is to provide key guidelines that are pertinent for the industry and in integrating economic sustainability precepts in the tourism sector. 6-3

the Business case for SD  The tourism industry has to recognize the business case for sustainability i.e. the fact that increased consumption of tourism services has a severe effect on fluctuating resource volatility and cost structures therefore establishing a need for disruptive innovations and business models  Economic sustainability in tourism can only be achieved when local economies support a defined level of production indefinitely. This means that attributes that condition the effective implementation of the sustainability agenda needs to be addressed and these include:  Sustainable consumption;  Tourism regulations and enforcement;  Structural reforms on governance and management practice;  Tourism businesses addressing local conditions (Social, economic and ecological conditions);  Innovative business models;  as well as product innovation and technologies uptake. 6-4

Framework for Economic Sustainability in Tourism 6-5 Economic Sustainability in Tourism Sustainable consumption Tourism regulations and enforcement Structural reforms on Governance and Management Practices Businesses addressing local social and economic conditions Innovative Business models Product Innovation & Technologies uptake

Focus for ST product development  When we assess sustainability from a product development perspective we are looking at a) the nature of the tourist experiences and b) their impacts on community livelihoods, economies as well as ecosystems.  It is consequently important that product development addresses the implementation of a comprehensive plan of action that will include: - 6-6

i. Developing tourism related products focusing on quality, sustainability and industry involvement to gain maximum economic benefit ii. Ensuring a product matches and exceeds customer expectations iii. Enhancing public product through provision of signage and interpretation iv. Promoting local distinctiveness v. Creating new niche areas to entice and target new visitors to the product vi. Looking at existing products and improving their current offer to ensure visitors have a wonderful experience and make repeat visits vii. Improving the quality of the existing tourism accommodation product – to ensure visitors have a wide choice of quality accommodation to choose from viii. Aligning marketing, investment (including capital) and business development around product priorities to have a greater impact 6-7

Sustainable Management of Tourism Economic Impacts 6-8  The economic impacts of tourism, or any economic activity, can be grouped into three categories: direct, indirect, and induced.  Tourism economic contribution can be amplified through the following strategies:- i. Maturity and diversity of the destination. The level of development within a destination has a multiplier effect on tourist spending as well as enterprise development within a region and (or) destination. ii. Increasing the volume, intensity, spread and recirculation of tourist expenditure within the destination by focusing on development of touristic attraction, events and activities

Strategic initiatives for Economic Sustainability cont’d  Developing opportunities for backward linkages in the local economy. This may be achieved through public-private-partnerships (PPPs) as well as community linkages in purchasing and supplies. There is need to develop such linkages and therefore enhancing the multiplier effects of tourism in the destination.  Reducing the extent of foreign ownership in the tourism sector while at the same time improving local employment opportunities in tourism facilities and service providers. 6-9

 Strategically adjusting to seasonality of tourism demand. This helps in reducing the seasonality of tourist flow to the destination and therefore increasing occupancy rates within the low seasons  Innovation therefore improving tourist travel and holiday styles and formats. This ensures economic sustainability of the products, therefore improving on the value of tourist experiences;  Increasing Government support for and investment in tourism  Improving the nature, aesthetics, structure, designs and programming of tourist attractions, facilities, activities and events. 6-10

Integrating Sustainability in Tourism Marketing  The aim of Sustainability Marketing in Tourism context is to integrate the socio- ecological aspects of the destination product to every step of the integrated marketing process.  The steps of integrating Sustainability in Tourism Marketing include:- i. Analysis of socio-ecological problems: The stages of the product’s socio-ecological life cycle needs to be closely studied so as to identify the social and ecological impacts; ii. Analysis of Consumer Behavior: Consumer behavior relates to issues concerning purchase, visit and post-visit behaviors. iii. Sustainability marketing values and objectives: The customer perceived value should be a mix of balances between consumer benefits as well as the costs of purchase/ visit. iv. Sustainability marketing strategies: the marketing strategy of a company should reflect its corporate strategy and objectives, its vision, mission and values. v. Developing Sustainability marketing mix vi. Sustainability marketing transformation: The outcome of the marketing experience would therefore be a transformation of behavior and attitude to the destination products and brands in the market. 6-11

Sustainable tourism enterprise development  The fundamental principle of sustainable tourism embraces aspects of Tourism Enterprise Development as a means of developing societies.  This social mission can only be achieved when there are systems served to ensure that the triple-bottom line measures of addressing entrepreneurial growth are addressed which include the following 6-12

Sustainable tourism enterprise development: The 3Ps Economic | ProfitEcological | PlanetSocial | People  Directly linking products to markets  Distributing profits to many rather than a few  Sustainable practices (waste, water and energy)  Profits linked to conservation actions: Environmental Education; Monitoring, Income Diversification.  Fair labor, salary and profit sharing policies;  Gender equality  Profit linked to social needs such as healthcare and education 6-13

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THE END Thanks 6-15