MBA 1 – Glenn Smith 2013 – 2014

Week 1

Review of sustainability issues, theories and applications in tourism-

related and general business; Accelerating technological change and

the implications for medium- and long-term sustainability planning

Sustainable Tourism and Innovation

Galactica Suite Resort

The Brundtland report

"Sustainable development is development that meets the

needs of the present without compromising the ability of

future generations to meet their own needs".

Two key concepts:

the concept of 'needs', in particular the essential needs

of the world's poor, to which overriding priority should

be given; and

the idea of limitations imposed by the state of

technology and social organization on the

environment's ability to meet present and future needs.

British development institute DFID

DFID defines sustainability in terms of sustainable

livelihoods:

“A livelihood comprises the capabilities, assets

(including both material and social resources) and

activities required for a means of living. A

livelihood is sustainable when it can cope with and

recover from stresses and shocks and maintain or

enhance its capabilities and assets both now and in

the future, while not undermining the natural

resource base.”

Resilience

The capacity of a system to

“bounce back”, to recover from

a shock, or a perturbation.

Gilded traps • Gilded traps are a type of social trap in which

collective actions resulting from economically attractive opportunities outweigh concerns over associated social and ecological risks or consequences. Large financial gain creates a strong reinforcing feedback that deepens the trap. Avoiding or escaping gilded traps requires managing for increased biological and economic diversity. This is difficult to do prior to a crisis while financial incentives for maintaining the status quo are large.

• Overfishing is an example of a gilded trap.

• Other examples of gilded traps: (invention of the automobile, tobacco cultivation, development of the beef industry in the early US history...)

Early 14th century Venice: vibrant economy of the colleganza (a joint stock

company to finance trading expeditions since 976). Rich merchant provides

capital to young navigator. When goods brought back and sold (spices, for

example), 75% of profits go to the merchant, 25% to the navigator.

1315: Upper Class stops social mobility with the Libro d’Oro => La Serrata, the

colleganza is banned. Venice declines.

Between now and 2050

Terrestrial Biodiversity is expected to decrease by a further 10%

between now and 2050;

Mature forested areas are projected to shrink by 13% by 2050;

One-third of freshwater biodiversity has already been lost and

more will disappear by 2050;

Global water demand is projected to increase by some 55%, due

to growing demand from manufacturing (+400%), thermal

electricity generation (+140%) and domestic use (+130%);

The number of people facing water scarcity could rise by 2

billion;

Air pollution is set to become the world’s top environmental

cause of premature mortality, with substantial increased

mortality expected from particulate matter (PM), ground-level

ozone, sulphur dioxide (SO2) and nitrogen dioxides (NOx).

The tourism sector accounts for:

5% of anthropogenic CO2 emissions

its overall contribution to climate change, by

some greenhouse gas measures, is 5.2-12.5%

Aviation accounts for 40% of tourism’s CO2

emissions

Car transport accounts for 32%

Accommodation accounts for 21%

Activities for tourists: 4%

Other forms of transport: 3%, including in

particular cruise ships.

The poverty trap

Source: Scheffer 2009:35, Figure 2.14

Sustainable tourism: The Cape Town Declaration of 2002

“Sustainable tourism development requires the informed

participation of all relevant stakeholders, as well as strong

political leadership to ensure wide participation and consensus

building. Achieving sustainable tourism is a continuous process

and it requires constant monitoring of impacts, introducing the

necessary preventive and/or corrective measures whenever

necessary.

Sustainable tourism should also maintain a high level of tourist

satisfaction and ensure a meaningful experience to the tourists,

raising their awareness about sustainability issues and

promoting sustainable tourism practices amongst them.”

“Responsible tourism” is tourism which:

minimizes negative social, economic and environmental impacts

generates greater economic benefits for local people and enhances

the well-being of host communities

improves working conditions and access to the industry

involves local people in decisions that affect their lives and life

chances

makes positive contributions to the conservation of natural and

cultural heritage embracing diversity

provides more enjoyable experiences for tourists through more

meaningful connections with local people, and a greater

understanding of local cultural, social and environmental issues

provides access for physically challenged people

is culturally sensitive, encourages respect between tourists and

hosts, and builds local pride and confidence.

Guiding Principles for Economic Responsibility

• Assess economic impacts before developing tourism and exercise

preference for those forms of development that benefit local communities and

minimise negative impacts on local livelihoods (for example through loss of

access to resources), recognising that tourism may not always be the most

appropriate form of local economic development.

• Maximise local economic benefits by increasing linkages and reducing

leakages, by ensuring that communities are involved in, and benefit from,

tourism. Wherever possible use tourism to assist in poverty reduction by

adopting pro-poor strategies.

• Develop quality products that reflect, complement, and enhance the

destination.

• Market tourism in ways which reflect the natural, cultural and social

integrity of the destination, and which encourage appropriate forms of

tourism.

• Adopt equitable business practises, pay and charge fair prices, and build

partnerships in ways in which risk is minimised and shared, and recruit and

employ staff recognising international labour standards.

• Provide appropriate and sufficient support to small, medium and micro

enterprises to ensure tourism-related enterprises thrive and are sustainable.

Guiding Principles for Social Responsibility

• Actively involve the local community in planning and decision-making and

provide capacity building to make this a reality.

• Assess social impacts throughout the life cycle of the operation – including the

planning and design phases of projects - in order to minimise negative impacts and

maximise positive ones.

• Endeavour to make tourism an inclusive social experience and to ensure that

there is access for all, in particular vulnerable and disadvantaged communities and

individuals.

• Combat the sexual exploitation of human beings, particularly the exploitation of

children.

• Be sensitive to the host culture, maintaining and encouraging social and cultural

diversity.

• Endeavour to ensure that tourism contributes to improvements in health and

education.

Guiding Principles for Environmental Responsibility

• Assess environmental impacts throughout the life cycle of tourist

establishments and operations – including the planning and design phase – and ensure that negative impacts are reduced to the minimum

and maximising positive ones.

• Use resources sustainably, and reduce waste and over-consumption. • Manage natural diversity sustainably, and where appropriate restore

it; and consider the volume and type of tourism that the environment

can support, and respect the integrity of vulnerable ecosystems and protected areas.

• Promote education and awareness for sustainable development – for

all stakeholders. • Raise the capacity of all stakeholders and ensure that best practice is

followed, for this purpose consult with environmental and conservation

experts.

Looking to the Future: Y Generation’s Unique

Challenges & What Happens to Tourism? • The Y and following Generations have the responsibility to be the privileged

Stewards of environmental protection, economic welfare, community

resilience and cultural heritage during a time of radical transition on a scale

never before seen. You will witness and participate in transformations that

will dwarf those experienced during the Twentieth Century.

• Ray Kurzweil, 2005: “I set the date for the Singularity—representing a

profound and disruptive transformation in human capability—as 2045. The

non-biological intelligence created in that year will be one billion times more

powerful than all human intelligence today.

• Kurzweil believes that progress in artificial intelligence, nanotechnology,

biotechnology and information technology is so fast that we will be able in a

few decades to break free from the constraints of our genetic legacy and

achieve “inconceivable heights of intelligence, material progress and

longevity…a union of human and machine, in which the knowledge and

skills embedded in our brains will be combined with the vastly greater

capacity, speed, and knowledge-sharing ability of our own creations.”* He

predicts a world of abundance as the cost of information and technology

drops sharply, while efficiency and productivity continues to rise.

Accelerating progress (linear)

Accelerating progress (logarithmic)

Processor performance:

millions of instructions / second (MIPS)

Singularity 2045

Imagine Kurzweil is right: what implications

for hospitality and tourism?

• What destinations will be overrun due to increased affluence of rapidly

developing countries (such as BRICS)?

• What marketing techniques will be used in future?

• Is online booking going to dominate the market of the future even more?

• What destinations will become accessible that are not already?

• Could virtual reality replace tourism?

• Will more seek “primitive” experiences, or digital-free environments, as an

escape from oppressive modernity?

• What sustainability problems will tourism enterprises face? What new tools

will they have to promote sustainability?

• What would be the best investments to make now?

• What forms of hospitality or tourism are ill-adapted and will not survive this

sort of rapid change?

• What forms of hospitality and tourism can exist in a world that is undergoing

runaway global warming?