Sustainable Tourism with Web Resource: Business Development, Operations, and Management

208 Pages·2016·5.485 MB·English

by  Carol Patterson

Sustainable
Tourism
•
Business Development,
Operations, and Management
Carol Patterson, CMA
President, Kalahari Management Inc.
University of Calgary
HUMAN KINETICS
Library of Congress Cataloging-in-Publication Data
Patterson, Carol, 1957-
Sustainable tourism : business development, operations, and management / Carol Patterson.
pages cm
Includes bibliographical references and index.
1. Sustainable tourism--Economic aspects. 2. Tourism--Management. I. Title.
G156.5.S87P37 2015
910.68’4--dc23
2015009207
ISBN: 978-1-4504-6003-3 (print)
Copyright © 2016 by Carol Patterson
All rights reserved. Except for use in a review, the reproduction or utilization of this work in any form or by any elec-
tronic, mechanical, or other means, now known or hereafter invented, including xerography, photocopying, and record-
ing, and in any information storage and retrieval system, is forbidden without the written permission of the publisher.
The web addresses cited in this text were current as of March 2015, unless otherwise noted.
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Contents
Preface viii
Acknowledgments xii
How to Use This Book and Web Resource xiii
1
Chapter Introduction to Sustainable Tourism . . . . . . . . . . . . . . . . . 1
Learning Outcomes 1
Why Should Tourism Be Sustainable? 1
History of Sustainable Tourism 2
What Do We Call It? 5
Need for Sustainable Tourism 6
Who Are the Tourists? 7
Trends in Sustainable Tourism 9
Meeting the Challenge 11
Summary 11
Glossary 12
Review Questions 12
Video Case Study 13
References 13
2
Chapter Strategic Planning for
a Sustainable Tourism Business . . . . . . . . . . . . . . . . . . . . . . . . 17
Learning Outcomes 17
What Is a Strategic Plan? 18
Create a Mission Statement 19
Conduct an External Review of the Environment 20
Conduct an Internal Review of Your Business 26
Set Goals and Objectives 27
Analyze the Market 28
Define Your Product 29
Identify and Select Viable Strategies 30
Implement the Plan 31
Summary 32
Glossary 32
Review Questions 33
Video Case Study 34
Your Business Plan 34
iii
iv Contents
•
3
Chapter Sustainability Practices
for Development and Operations . . . . . . . . . . . . . . . . . . . . 35
Learning Outcomes 35
Minimizing Environmental Impact 35
Establishing Sustainability Policies 37
Integrating Environmental Policies Into Daily Operations 38
Assessing Impacts 42
Summary 44
Glossary 45
Review Questions 45
Video Case Study 45
Your Business Plan 45
References 46
4
Chapter Sustainability Standards and Certification . . . . . . . . . . .47
Learning Outcomes 47
The Role of Tourism Standards 47
Existing Programs 49
Confusion in the Marketplace 51
Global Tourism Standards 51
Certification and Your Bottom Line 52
Summary 53
Glossary 53
Review Questions 54
Video Case Study 54
Your Business Plan 54
References 55
5
Chapter Marketing Your Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
Learning Outcomes 57
Four Ps of Marketing 58
Developing a Marketing Plan 58
Product–Market Match 65
Marketing Activities 70
Marketing Forecasts 80
Monitoring and Evaluating Marketing Activities 83
Summary 84
Glossary 84
Review Questions 86
Video Case Study 86
Your Business Plan 87
References 87
Contents v
•
6
Chapter Making the Internet Work for You . . . . . . . . . . . . . . . . . .89
Learning Outcomes 89
What Is Web 2.0? 89
How Social Media Is Changing Tourism 91
Implications for Sustainable Tourism Business Managers 94
Maximize Your Web Presence 95
Summary 97
Glossary 97
Review Questions 97
Video Case Study 98
Your Business Plan 98
References 99
7
Chapter Working With the Travel Trade . . . . . . . . . . . . . . . . . . . . . . 101
Learning Outcomes 101
Understanding the Travel Trade 101
Consumers’ Relationship With the Travel Trade 104
The Difficulty in Selling Sustainable Tourism 105
Helping the Travel Trade Sell Sustainable Tourism 106
Summary 109
Glossary 109
Review Questions 109
Video Case Study 110
Your Business Plan 110
References 111
8
Chapter Marketing Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Learning Outcomes 113
Tour Packaging 114
Cooperative Marketing 119
Festivals and Events 120
Summary 121
Glossary 122
Review Questions 122
Video Case Study 122
Your Business Plan 123
References 123
9
Chapter Managing the Bottom Line . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Learning Outcomes 125
Obtaining Financing 126
Financial Forecasting 127
vi Contents
•
Financial Analysis 135
Accounting 139
Summary 141
Glossary 142
Review Questions 143
Video Case Study 144
Your Business Plan 144
References 145
10
Chapter Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Learning Outcomes 147
Customer Service Process 147
Customer Service and Interpretation 151
Problems in Customer Service 153
Qualifying Customers 154
Summary 156
Glossary 156
Review Questions 156
Video Case Study 156
Your Business Plan 157
Reference 157
11
Chapter Hiring and Retaining Staff . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Learning Outcomes 159
Hiring 159
Training 164
Policies in Human Resources 167
Managing Turnover 167
Summary 168
Glossary 168
Review Questions 169
Video Case Study 169
Your Business Plan 169
References 170
12
Chapter Managing Business Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Learning Outcomes 171
Loss Categories 171
Insuring Against the Odds 173
Risk Management Strategies 174
If the Worst Happens 176
Summary 177
Glossary 177
Review Questions 178
Contents vii
•
Video Case Study 178
Your Business Plan 178
References 179
13
Chapter Business Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Learning Outcomes 181
Need for a Business Plan 181
Preparing a Business Plan 182
Business Plan Workbook 186
Summary 187
Glossary 187
Review Questions 188
Video Case Study 188
Reference 188
Index 189
About the Author 193
Preface
T
he Mexican architect Héctor Ceballos-Las- ment. People from over 132 countries gathered
curáin coined the term ecotourism in 1983. in Quebec City to mark the International Year
It provided a possible solution to a dilemma that of Ecotourism and discuss ways to make one
confronted travelers and tourism professionals: of humankind’s most popular pastimes, travel,
travel, while bringing benefits to the consumer, more gentle on the earth and the communi-
was causing harm to the communities that hosted ties that host it. The result was the Quebec
it. Ecotourism offered guiding principles for a Declaration on Ecotourism, a set of UN-level
form of tourism that minimized environmental recommendations for the development of eco-
impacts while maximizing benefits to the local tourism activities in the context of sustainable
communities. People embraced the new concept development. The hope was that governments,
and looked for ways to develop new eco-products nongovernmental agencies, and tourism organi-
or incorporate the ecotourism philosophy into zations would use this framework to guide the
their business. development and operation of tourism.
As a pioneer in the ecotourism development Fast-forward a decade later. Ecotourism is
field, I have had a ringside seat as one of the most joined by geotourism, responsible tourism,
exciting developments in the tourism field in the volunteerism, and sustainable tourism, among
last 50 years has unfolded. The birth of ecotourism others, in the lexicon of tourism jargon as we
was a heady time, especially for emerging desti- green the world’s tourism industry. No common
nations such as Costa Rica or east Africa, where international standard for sustainable tourism
consumers already associated the travel experi- has been created and there are no national stan-
ence with nature.In North America, progress was dards in Canada or the United States. Businesses

slower. I worked with many communities wanting search for best practices and implementation
to incorporate principles of ecotourism into their strategies, and the successful tourism profes-
strategic plans or with tourism businesses that sional will be someone with insight and skill in
wanted to develop new tourism products. But this field.
there was an unexpected problem. Travelers from If you are wondering whether sustainable
the United States and Canada who eagerly traipsed tourism is the same as ecotourism or whether
to Central America to sleep in a rainforest lodge all adventure tourism is sustainable, you are not
hesitated to book an ecotourism holiday nearer to alone. I have yet to meet a traveler or business
home. To quote one business owner, “Customers owner who wants to harm the environment, but
were afraid there would not be enough outdoor it is easy to find evidence of negative environ-
adventure and too much indoor adventure in the mental impacts from tourism. It would appear
form of uncomfortable beds, Spartan meals, or that the challenge is in the implementation of
the need to ‘suffer’ in the quest for sustainable sustainable tourism practices, but as I show in
tourism!” figure 1, I believe ecotourism principles and the
Obviously, a different approach was required World Tourism Organization (UNWTO) Global
for developing North American ecotourism. Sustainable Tourism Council Criteria (discussed
While still concerned with managing a triple at length in chapter 1) should be at the heart of
bottom line of financial, environmental, and cul- all tourism development.
tural outcomes, North American organizations Against the backdrop of sustainable tourism
focused on the visitor experience or experien- development, we see the main components of
tial travel. They highlighted how principles of ecotourism experiences: nature tourism, cul-
ecotourism made better holidays—for example, tural and historical tourism, educational tour-
lower guide-to-client ratios or more chances to ism, and volunteerism. Mass, or urban, tourism
meet locals. As a result, nature and culture-based is on the opposite end of the spectrum but is
adventure tourism grew. still a part of sustainable tourism, often lead-
For a few days in 2002, North America was ing innovation in energy efficiency and waste
ground zero for the sustainable tourism move- management.
viii
Preface ix
•
Cultural and
historical
tourism
Educational
Geotourism
tourism
Ecotourism
principles
Hard and soft and GSTC
Volunteerism
adventure criteria
Greener
Nature
mass
tourism
tourism
Figure 1 Principles of ecotourism and the UNWTO Global Sustainable Tourism Council Criteria should be at the
heart of all tourism development.
Hard and soft adventure describe the level of PREPARING FOR
effort and risk that accompany travel activities,
A CAREER IN TOURISM
and soft adventure can cross several tourism
components. Experiential tourism has grown out
of the emphasis on the experience economy and For you to succeed in this field, you will need
emphasizes unique or high-quality interactions to understand the complexity of sustainability
between travelers and their physical or cultural issues and approach solutions with innovative
environment. Geotourism, actively promoted ideas and often an entrepreneurial focus. The
since 2002 by National Geographic as a wE6a0y1 4t/oPa ttersone/cFo Pt.o01u/5r2is4m89 2in/kdhu/r1stry (and its related components)
protect a place’s character in addition to adher- is dominated by small to medium-size businesses
ing to the principles of sustainable tourism, and emerging destinations. You will find yourself
focuses on tourism that sustains or enhances grappling with problems for which there are few
geographical character. So one could say that procedure manuals and where your ability to con-
all tourism should be geotourism because it is nect with people in government, volunteer groups,
important to protect the landscape—urban or and business may be the difference between cele-
natural—where tourism occurs. brating success or looking for a new career.
As you might guess, if we have this much This book can help you stack the odds in your
trouble defining sustainable tourism, then it favor. By sharing the lessons of others who share
is also difficult to implement sustainable tour- your vision of a more sustainable tourism industry,
ism practices and it is becoming increasingly this book provides a framework to build the skills
difficult. Tourism has spread to the world’s you need for success.
most remote locations. Technology creates new I got involved in ecotourism because I met many
activities each year, and more cultures want a people developing tourism businesses with great
say in tourism growth. What is green in one loca- passion for the outdoors or wildlife, but little pas-
tion may not be in another. What is simple in a sion for business. Working on a financial forecast
policy document is difficult to implement in the or selling their tours to customers was about as
field. And with the need to fly to most tourism enticing to them as giving a pill to a sick cat. I real-
destinations, some would question whether the ized that I could complement the skill gaps of many
accompanying carbon emissions make all travel tourism operators. I liked business and could make
unsustainable. a contribution to the behind-the-scenes elements of
x Preface
•
tourism. I had passion for the business of sustain- you about the most valuable skill in tourism: how
able tourism and was willing to sacrifice financial to market and reach your customers, including
rewards in conventional fields for the smaller bud- how to work with social media, the travel trade,
gets of emerging tourism organizations. and other tourism partners. Chapters 9 through
Tourism has evolved and grown since I entered 12 teach you the nitty-gritty about making your
the field. People now talk about the triple bottom ideas a reality. You will learn how to manage your
line balancing environmental, social, and eco- financial resources, mitigate risk, prepare a busi-
nomic success; some add climate change to the ness plan, ensure great customer service, and hire
mix. To successfully balance these complex matri- the right people for the job.
ces, everyone needs business skills. You cannot
contribute to biodiversity conservation or cultural
SPECIAL FEATURES
preservation if you run out of money in your first
year of operations. This book will help you develop
From start to finish, this book is designed to help
business skills in the context of principles of sus-
you master the wide-ranging knowledge you’ll
tainable tourism.
need in order to prepare for a career in sustain-
You will also learn how major events like the
able tourism. Learning outcomes and key points
2008 Great Recession affected ecotourism and
are summarized at the beginning of each chapter,
sustainable tourism. You might be surprised to
serving as a framework that you build on as you
hear there were many positive outcomes! The
read through the chapter. Sidebars throughout
book’s emphasis is on sustainable tourism in
each chapter highlight businesses or destinations
the United States and Canada. Differences exist
demonstrating good practices for sustainable
in how ecotourism is viewed in other countries,
tourism businesses. These sidebars offer an inspi-
and the fact that tourism development occurs
rational and informative view of how principles
against a backdrop of established economies
of sustainable tourism affect the daily practice of
and other forms of tourism not always found
real businesses. Although many of the examples
in emerging destinations poses different chal-
focus on North America, they are supplemented
lenges.
with examples from international destinations to
The information shared in the book is reality-
provide global context for sustainable tourism in
tested. While you will learn how the UNWTO’s
the United States and Canada.
framework shapes sustainable tourism, you will
Throughout the book, you will be periodically
also develop key competencies in critical think-
prompted to stop reading and do exercises called
ing, innovation through unique combinations of
ecochallenges, which offer a chance to consider
common elements, financial analysis, strategic
sustainable tourism concepts within the context of
planning, relationship building, and marketing.
personal values and beliefs. These exercises vary
in length and complexity; some offer a few ques-
ORGANIZATION tions that call for a short written reflection, while
others challenge readers to search the Internet or
You will likely find yourself working for an entre- talk to people in the sustainable tourism industry.
preneur who wants you to act like a business All of them are carefully written and placed with
owner. This means tackling problems and sug- the intent of providing a meaningful personalized
gesting improvements from a broad perspective. learning experience for each user.
The 13 chapters in this book are structured to give Each chapter closes with learning aids that
you an overview of business operations in sustain- check for and reinforce understanding. The glos-
able tourism that will help you build this broad sary and review questions highlight key terminol-
perspective. Chapter 1 offers an orientation to the ogy and concepts from the chapter. A video case
sustainable tourism industry and why you should study points you to the web resource, where you
be incorporating sustainability criteria into your may view a short video on a topic relevant to the
business. Chapters 2 through 4 help you assess chapter and answer reflection and discussion
new ideas against sustainable criteria, develop a questions on your own or in a group.
strategic plan, and develop tourism products to Finally, a section called Your Business Plan
increase your chances of success. You will also guides you in applying the chapter’s content
learn about the standards to which other tourism to your own business plan. This section cor-
businesses aspire. Chapters 5 through 8 will teach responds to a business-planning workbook in