Tourism today and tomorrow – a billion opportunities
As one of the world's largest and fastest-developing economic sectors, would it not be better – in the name of sustainability – if the tourism industry would hit the brakes and slow its rapid, resource-consuming growth? This idea was addressed by Taleb Rifai, Secretary-General of the World Tourism Organization (UNWTO), in a recent speech to students at the Ecole hôtelière de Lausanne. Demian Hodari, Professor of Strategic Management at the school, and Adrian Ruch of HVS Hodges Ward Elliott report on Mr. Rifai’s interesting response.
Last February, the Ecole hôtelière de Lausanne (EHL) welcomed Mr. Taleb Rifai, Secretary-General of the World Tourism Organization (UNWTO), the United Nations Specialized Agency for Tourism, to speak at the 5th annual Young Hoteliers Summit (YHS). The UNWTO's mandate is to promote responsible, sustainable and universally accessible tourism across the globe. During his day at EHL, the Secretary-General met with different groups of students before giving a keynote address to over 200 attendees at the YHS distinguished keynote presentation. The objective throughout his day at EHL was to raise awareness about the challenges and opportunities of the international tourism sector among the leaders of tomorrow.
Mr. Rifai began by presenting some recent data about the world's tourism. With over 1.1 billion international and more than 5.5 billion domestic tourists, he noted, global tourism has reached unparalleled dimensions. It is the 3rd largest sector in the world today and, as he put it, has evolved from the privilege of an elite few to what is essentially a human right. This growth has brought people closer together, spurred change and progress in the developing world, and has contributed to a fairer distribution of wealth and benefits. Yet the rapid and far-reaching growth of tourism has created social, economic and environmental challenges as well.
In its most spiteful form, tourism can inflict damage on people, especially young ones. Some of the most important challenges the sector is facing relate to human trafficking, child abuse, and the exploitation of natural resources, he said. In the face of these problems, one might be inclined to question whether this sector ought to develop further, or even demand a slowdown in its growth. According to the Secretary-General, however, this would be unwise:
"A billion people travelling internationally is a billion opportunities or a billion disasters," he said. "The choice is ours. So how do we make sure that we are heading in the right direction? I'll tell you what we should not do: we should not blame our problems on growth and progress and investment. Growth is part of human history. Growth is not going to stop, and should not stop. What we should advance is our ability to manage growth and use it as a force for good to achieve a new direction of sustainability." He illustrated the main positive impacts of tourism with three examples: employment, economy and sustainability.
Tourism leads the world in employment growth. Furthermore, for the workforce in the developing world, being employed in the tourism sector also means receiving much sought-after training and often also allows people to work where they live, without having to leave their families behind and move to larger cities.
From an economic point of view, international tourism has proven to be extraordinarily resilient. The past 10 years have shown this as, while the sector was very sensitive to short-term international setbacks – for example, brought about by SARS or avian flu – it recovered fast and continued its overall growth rate. Whereas only 60 years ago, most of the world's population lived their entire lives within a 100 km radius, today over one billion people cross borders for tourism every year. Looking ahead, the number of international tourists is expected to grow by 3.3 percent yearly and reach 1.8 billion by the year 2030.
Last but not least, the Secretary-General addressed sustainability and the many forms it can take in the context of tourism. Not only can the green initiatives of big tourism players, if well-managed, help to build a greener economy, but individual establishments can also make a difference through responsible practices which aim to preserve and even restore natural resources. Seemingly small acts of all tourists could also have a large impact, Mr. Rifai emphasized:
"We are all familiar with the signs asking guests whether they would like to keep or change their bath towels. This has become hackneyed and almost a joke. But think: if one billion people were to decide tomorrow that they do keep their towels, how much water we would have saved in just one day."
Tourism also contributes to an increasingly balanced world, as the center of gravity gradually shifts toward the South and the East. For Europe, this means that it will have to accept no longer being the leader in tourism solely based on market share. In order to remain an important player, however, Europe has to switch the base of its leadership. The Secretary-General suggested that the region should take the higher moral ground in international tourism, becoming a reservoir of knowledge and the reference in terms of best practices, namely in terms of sustainability. By doing this, he argued, Europe will continue to remain sustainable and even gain a new kind of edge.
The Secretary-General urged his audience to accept growth and to acknowledge that it has to go hand in hand with responsibility, stressing that it is up to everybody to manage tourism's growth responsibly and maximize its socio-economic benefits while mitigating the negatives. Companies will only survive if they adopt responsible business practices and if they implement every new idea with responsibility in mind. If this can be achieved, the leaders of tomorrow will truly be able to use tourism as a force for good.
Adrian Ruch
Demian Hodari, Ph.D.
Professor of Strategic Management
EHL
