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The travel and tourism industry worldwide is undergoing a transformation and every region whether it is in the Asia Pacific or in the Americas is trying hard towards achieving and practising responsible and sustainable tourism in a big way. The term ‘Force for Good’ was strongly discussed at the recently concluded WTTC Global Summit 2014, in Sanya, Hainan, China. The importance of travel and tourism was brought to light in a way that is a force for good and for the benefit of the society at large. It is not restricted to a certain region, demography or continent but it relates and influences communities and societies at large. It is time to be sensitive and responsive to the demands of travel and tourism and one needs to address it as a priority. In his closing speech at the summit, David Scowsill, president 7 CEO, WTTC stated that the global travel and tourism industry must operate to the highest standards to prove that it is a force for good and not a force for destruction. Scowsill called upon on the sector to demonstrate leadership and accountability. “The travel and tourism industry needs to report and communicate the benefits and value it brings and ensure that it genuinely embraces tourism for tomorrow. Standards of ethics and sustainability must be of the highest order. We need to work in true partnership with governments – when they listen – and with our local communities and stakeholders. We must also engage with our staff, customers and consumers,” he opined. Subjects discussed at the Summit included volatility and unpredictability, climate change and disaster recovery, infrastructure planning and sustainability, growth and jobs, peace and prosperity, collaboration and co-operation; and culture and understanding.
Why global economies need travel and tourism ?
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Apart from topical and thought provoking discussions the team also addressed the issue about why does the global economy need travel and tourism. There is no doubt that travel and tourism players play a major role in the upliftment of society and its people and in turn the economy at large, but at times the challenge rests on still convincing decision makers and governments to give it the necessary recognition, even though it is a very forceful economic contributor. Scowsill added, “The growth of our industry outstrips the growth of global GDP year after year. In fact, WTTC forecasts that travel and tourism will grow by 4.4 per cent year-on-year for the next 10 years – far higher than global GDP which will grow at 3.5 per cent. By 2024 our industry will be generating over US$ 11 trillion and will have created 75 million new jobs. So it comes as no surprise that governments also need travel and tourism. Governments need this industry’s contribution to trade. And tomorrow we will be presenting research that demonstrates the importance of our industry to global trade. Governments need us to support the processes of nation building and disaster recovery. They need us to provide bridges to increase international cooperation, and to help foster greater understanding between societies.” He further added that when governments listen, they learn that we have a powerful case to make that helps them achieve their political goals – not just their economic ones. Too many governments around the world have still failed to acknowledge the vast potential of our industry. This leads to deficiencies like destructive border policies, exorbitant taxes and poor long-term infrastructure planning. All these prevent progress and growth. Christopher Nassetta, president and chief executive, Hilton Worldwide also clearly stated that the strength and importance of travel and tourism is not respected and understood yet. Paul Griffiths, chief executive, Dubai Airports Corporation was also of the opinion that governments do not treat tourism as a sector that can bring in economic benefits. Raymond Bickson, MD and chief executive, The Taj Hotels, Resorts and Palaces emphasised on the need to focus on two aspects namely ‘jobs’ and ‘employment’ to gain government attention.
The travel and tourism sector brings to the table a host of benefits that governments cannot afford to ignore for a long time. It provides momentum to economics, generates employment, brings in stability and also works towards a society that is closer to being sustainable and responsible in its own format. Travel and tourism has a unique role to play as a driver of cultural understanding, mutual respect, diplomacy, economic development and peace-keeping. Scowsill pointed out, “We need to show that we can work as one industry, to bring the public and private sector together, to realise even greater economic and social benefits for the world community.”
Technology and tourism
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No one in today’s world can ignore the role and importance of technology for business enhancement, thought leaders on the panel ‘Staying ahead of tomorrow’, rightfully placed the role of technology for tourism enhancement into perspective. It is important for business leaders in the tourism space to be curious and constantly be updated to make use of technology to its fullest. One has to stay in touch and embrace constant changes in the technology space and those who fail to do so will lag behind, is what the experts on the panel revealed. Desiree Bollier, chief executive, Value Retail rightly said, “Technology is disruptive but if we don’t make it part of our business we will fall behind.”
The China viewpoint
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It is widely accepted that in the next 10-15 years China will overtake the United States, to become not only the biggest travel and tourism contributor in the world, but indeed the biggest economy in the world. China’s travel and tourism businesses support 65 million jobs and the sector contributes nine per cent to China’s GDP. China’s travel and tourism is forecasted to keep growing at over seven per cent each year for the next 10 years. By the middle of the next decade China’s travel and tourism industry will employ over 90 million people – that will be one in every nine jobs in China.
The WTTC Tourism for Tomorrow Innovation Award for 2014 (new category) Winner: Ecosphere, India
A trip to the remote Himalayan Valley of Spiti, 4000 metres above sea level and cut off from the world for much of the year, would seem pretty far from home for most people. But when you journey with social enterprise Ecosphere, you will always be at home – only not your own. To ensure the greatest benefit to the local community, as well as the most immersive experiences for guests, all accommodation is in homestays with the local people. Spread across six villages, guests are ensured an authentic experience, where everything, from food to daily rituals to the chance to take part in any ongoing festival, is a real glimpse of village life and not staged for visitors. They are also assured that they are making a sustainable difference, with 10 per cent of income generated from the homestays being set aside for a village conservation/ development fund. And for the adventurous, or those wishing for a unique story to tell back home, Ecosphere offers guests the chance to take a safari through the hills, on the back of a yak. It’s these rural grassroot innovations that won the company the ‘Tourism for Tomorrow Innovation Award’ for 2014.
