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Harold Goodwin
Creating Shared Value
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What is the purpose of tourism?
Ask not what your country can do for you, ask what you
can do for your country.
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What is the purpose of tourism? The world’s largest industry – but it
needs government support for its marketing
Freeloader problemTourism needs to win support
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Different perspectives on the “world’s largest industry”
National International Arrivals Length of stay Foreign Exchange
Earnings Net Foreign Exchange
Earnings Expenditure Balance of Payments
deficit
Local Visitor Economy
– Shoppers and day visitors travelling from home.
– Day excursionists (tourists) travelling in from holiday accommodation
– tourists staying in the local economy
Local spend - £ € $
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Responsible Tourism
“making better places to live in, better places to visit.”
Cape Town Declaration
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A journey to responsibility?
Bonding and financial guarantees Repatriation Member discipline Trading standardsHealth & SafetySustainability
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The Business Case for Responsible Tourism The right thing to
do Minimising risk License to operate Product quality Cost savings Staff morale Market Advantage
Market Advantage Experience
– richer– more authentic – guilt free
Differentiation and PR Reputation Referrals Repeats
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Responsible Tourism
It is not about CSR,–Philanthropy &
–Volunteering
It is about how the business does its business
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Shared Value – Porter
The Big Idea Creating Shared Value Porter and KramerHow to reinvent capitalism – and unleash
a wave of innovation and growthHarvard Business Review 2011
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What is shared value?“policies and operating practices
that enhance the competitiveness of a company while simultaneously advancing the social and economic conditions in the communities in which it operates.”
Focuses on identifying and expanding the links between economic and social progress
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An outdated approach to value creation Companies have overlooked
– the wellbeing of their customers– the depletion of natural resources
vital to business – the viability of key suppliers– “the economic distress of the
communities in which they produce and sell”
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Companies must bring business and society back together
Shared value – creating economic value in a way that also creates value for society by addressing its needs and challenges.
“Business must reconnect company success with social progress.”
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Shared value is not
Social responsibility Philanthropy Sustainability “rather a new way to achieve
economic success.”“Businesses acting as businesses
not as charitable donors”
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Why?
“A business needs a successful community, not only to create demand for its products, but also to provide critical public assets in a supportive environment.”
Contrary to “self-contained entity” idea of the firm the “old, narrow view of capitalism.”
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Shared value
“societal needs define markets” “Expanding the total pool of
economic and social value” Creating “a bigger pie of revenue
and profits”
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Competitive advantage Comes from “how it configures the
value chain.”“Value is defined as benefits
relative to costs, not just benefits alone.”
Externalities are ignored in conventional economics
PPTP: net benefits
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What is shared value?
“policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the social and economic conditions in the communities in which it operates.”
Focuses on identifying and expanding the links between economic and social progress
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What does tourism contribute locally?
Employment at a range of skill levels, wages & salaries, progression
Enterprise opportunities for sales to tourists and tourism businesses
Entrance fees for conservation
Donations, Volunteering & mentoring
Enables a variety of businesses to thrive which may not otherwise find a large enough local market
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Shared Value & Tourism
Employment– Wages– Training – Progression – & Beyond the
sector
Infrastructure gain – roads, IT, water.
Local sourcing and enterprise development by
1.Tourism Businesses &
2.Tourists
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Tour Operating and Creating Shared Value
Simon Pickup ABTA
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The Social and Cultural Benefits of Tourism
Ken Robinson
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The Importance of a Collective Approach to a Thriving Visitor Economy
Jason Freezer VisitEngland
The New Forest Experience from Tourism to Local Economic
Development
Anthony Climpson NFDC
Reporting Local Economic Impact
Jenefer Bobbin Responsible Tourism Reporting
Village Ways
Richard Hearn Village Ways
The Bridlington Fish Challenge
Martin Batt Yorkshire Wildlife Trust
ROOTS: a case study from The Gambia
Suzannah Newham The Travel Foundation
A Tour Operator Intervention in The Gambia
Jo Baddeley,Sustainable Destinations Manager,Thomas CookUK & Ireland
Round Table Discussion "Is there any substance to the idea of Creating Shared Value? How does it relate to tourism?
Martin Brackenbury, Harold Goodwin, Ken Robinson, John de Vial,
Nikki White
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