The importance of sustainability in difficult economic times

The World Travel and Tourism Council (WTTC) predicts that travel and tourism’s contribution to global GDP will decrease by 3.3% in 2009 and grow by only 3% in 2010, due to the effects of the global financial crisis (GFC). The United Nations World Tourism Organisation (UNWTO) has a less optimistic forecast, predicting that international tourism will experience zero growth or even negative growth in the range of -1% to -2% in 2009.

Globally, most experts agree that recovery will come in the short to medium term. The WTTC predicts that after 2009, travel and tourism will steadily grow through to 2018, with an average growth rate of 4.4% per annum, with a projected 297 million jobs and 10.5% global GDP contribution by 2018. This compares to 3% annual growth, 240 million jobs and a 9.9% contribution to global GDP in 2008.

As noted by UNWTO Secretary-General ad interim, Taleb Rifai, “Tourism can play a critical role in the [global economic] recovery process as a sector with a unique resurgence capacity and an immense potential in terms of employment creation”.

Moreover, the current economic downturn affords all industries including travel and tourism with opportunities to focus more strongly on the impacts of their operations with a view to improving competitiveness once the crisis has abated. Reducing consumption and adopting new technologies obviously saves costs and makes businesses more profitable8. Less obviously, the GFC has engendered stronger public awareness regarding the need for “greener”, “cleaner” and more ethical business – imperatives underscored by the very roots of the GFC including unsustainable and unscrupulous business operations.

According to Dr Auliana Poon of Tourism Intelligence International says, “The tourism sector
now needs dynamic private-public sector organisations that can take the lead with extraordinary marketing and business strategy, innovation and the exploitation of distribution channels”. Practically, the sector must adapt to the demand for authentic cultural experiences; health and wellness; eco-tourism; social and environmental responsibility; social interaction; ethical travel and Fair Trade.

Certification schemes, awards programmes and other voluntary initiatives enable the private
sector to demonstrate commitment to sustainable tourism development. Such initiatives convey credibility in a dynamic marketplace and create a strong platform from which to position a tourism product or travel company in relation to its competitors.

Within South Africa, Fair Trade in Tourism South Africa (FTTSA) certification recognises tourism businesses that are committed to sustainability and post-apartheid transformation. All FTTSA certified accommodation and activities meet minimum sustainability criteria and are committed to operating in a fair and ethical manner.

According to FTTSA Executive Director, Jennifer Seif: “Although the effects of the GFC appear to be less severe in South Africa compared to other destinations, the South African tourism industry must nonetheless adapt to the post-GFC economic environment.

Sustainability measures lead to greater efficiencies at operational level and also add value to visitor experience. FTTSA-certified tourism businesses experience strong repeat business and positive viral marketing, which are critical elements to any marketing strategy particularly in tough economic times.”

Significantly, consumer commitment to Fair Trade products remains high, despite the effects of the GFC. In 2008, Fairtrade sales increased from 2007 levels by 24% in Austria, 40% in Denmark, 57% in Finland, 22% in France, 75% in Sweden, 43% in the UK and by 10% in the United States. “With the devastating impacts of the global recession and the credit crunch, [we] need Fairtrade now more than ever,” says Rob Cameron, CEO of the international Fairtrade Labelling Organization (FLO). “It is very encouraging that consumer commitment to Fairtrade remains strong in these challenging times”.

Related Stories

• Shark Cage Diving gets stamp of approval from FTTSA
• FTTSA to develop fairly traded travel packages
• FTTSA responds to calls for a global fair trade tourism label
• Andulela’s Cape Malay Cooking Safari, Cape Malay Meal and Bo-Kaap Insights tours joins the FTTSA stable
• FTTSA to expand its services to Voluntourism

FREE  for 30 days

 Email This  Print This