13 October 2008

CREDIT CRUNCH ââ¬' ââ¬ÅâœSUSTAINABLE TOURISM WILL GAINââ¬~ - VISION EDITOR

Amidst all the hysteria about falling markets, the prospect of global recession, and falling purchases of organic and fair trade goods, in the sustainable tourism industry one question is constantly being asked ââ¬' ââ¬ÅâœWill Sustainable Tourism Sufferââ¬~.

Sue Hurdle of the Travel Foundation makes a plea for the industry and its consumers ââ¬'ââ¬ÅâœDonââ¬â¢t lose your conscience in the credit crunchââ¬~

But itââ¬â¢s very much more fundamental than consumer or trade attitudes or their moral values.

The fact is that true sustainable tourism will actually come into its own and even gain momentum in a recession.

Why?

Well, first of all, itââ¬â¢s interesting to note that, when the UKââ¬â¢s bail out plan was announced today, in the face of a much-heralded recession the biggest early stockmarket winner was TUI Travel which spurted some 20%. TUI is one of the foremost supporters of CSR and sustainable tourism. So, in the light of more difficult trading circumstances, shouldnââ¬â¢t it fall?

Whatââ¬â¢s the story?

Well, sustainable tourism has to be sustainable culturally, socially, environmentally AND economically for it to work. So letââ¬â¢s look at sustainable tourismââ¬â¢s profit and loss and its balance sheet. IN PURELY FINANCIAL TERMS

First the profit and loss account:

Sales are increasing, which is good, but in general, they are increasing for tourism as a whole (given the input of the new markets in developing countries). Not just sustainable tourism, even though its market share is increasing too.

Itââ¬â¢s in the cost of sales that sustainable tourism really gains:

ââ¬~¢ Higher load factors and more fuel-efficient airplanes will reduce transportation costs.
ââ¬~¢ More efficient energy use in hotels and resorts will reduce energy costs
ââ¬~¢ Local sourcing of food will reduce food transportation costs
ââ¬~¢ Training and employment of local staff will reduce staff turnover and employment costs
ââ¬~¢ All the above plus utilisation of a variety of carbon-efficient transportation systems will reduce carbon costs (set to be a big cost in the future with the cap and trade system)

And sustainable tourismââ¬â¢s balance sheet?

The current financial system has come to an end because of one major cause ââ¬' the overvaluing of spurious assets.

Whereas true tourism assets ââ¬' the local environments, scenery, geological tourism attractions, weather, sun sea and sand, architectures, cuisines, cultures and local people - that provide the major tourism draw ââ¬' have been horribly undervalued and often terribly neglected.

Sustainable tourism takes a fresh look at this. True sustainable tourism maintains and stewards its assets thoughtfully. It operates sensibly, conserves its energy costs and delivers a SUSTAINABLE profit. Profits for now AND for future generations of tourists and hosts.

Forget the moral attitudes, philanthropic intentions, ââ¬ÅâœHolier than Thouââ¬~ principles ââ¬' The credit crunch will reveal that sustainable tourism will gain because ââ¬~¦itââ¬â¢s simply more sustainable.

Valere Tjolle

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