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International tour operators: time to get ethical?

As tourism to developing countries takes off, are tour operators doing anything to spread the benefits? In an industry becoming ever more globalised, competitive and dominated by multinational companies, what can be done to prevent current inequities from worsening?

Research from the Environment Business and Development Group looks at the role of tourism as an agent of socio-economic development. Interviews with British outbound tour operators highlight opportunities to meet new expectations of their business ethics and practices. Practical measures to improve local supply chains, support local and community enterprises and change the attitudes of tourists and travel agents are set out.

International concern about the negative effects of tourism (such as low wages, irregular hours, seasonality of employment, environmental damage and inequitable spread of benefits) is growing. The UN Environment Programme has worked with UNESCO and the World Tourism Organisation to develop the Tour Operators’ Initiative for Sustainable Tourism Development. Some tour operators are beginning to act on this voluntarily. Customer surveys indicate that tourists are willing to pay more for their holiday if this increases local wages, preserves the environment or goes to local institutions.

The tourism industry, however, remains largely the preserve of a few producers: control of the numbers of tourists taken to each given destination is in the hands of a small number of operators and airlines. Tourism destinations are vulnerable to cost-cutting strategies, the demands of foreign investors and the manipulation of tourists’ expectations through advertising. Most developing countries lack the resources to provide facilities of an international standard or the legislative framework to regulate tourism.

The research shows that:

Some tour operators felt that huge consumer pressure would be needed before they made any changes on non-core business issues.
Tour operators did not examine standards for local labour and employment conditions, regarding this as a matter for local agents and hotels.
Tour operators were concerned that promoting more purchasing of local goods and services might lead to increased costs.
Changes to overall business practices also need to be addressed if the tourism industry is to make any effective contribution to poverty alleviation and ‘pro-poor’ interventions.

All of the tour companies interviewed were aware of the need to consider ethical issues and to maintain a good company image with tourists and locals. Some reported feedback from their clients expressing disquiet at disparities of wealth in tourist destinations. As some operators develop niche markets by highlighting sustainability and ethics, big operators are also starting to realise that profits and ethical commitment are compatible. To maintain the momentum, the report recommends that:

Tour operators should expand existing health, safety and environmental codes to include the social and economic aspects of tourism.
Tour operators should monitor and report the proportion of clients’ discretionary spending which remains in the destination country.
Tour operators should provide broader training for staff to raise awareness of ethics, improve standards and develop more equitable relationships with suppliers.
Governments in both sending and receiving countries should work with tour operators to establish legal frameworks to promote sustainable tourism and to ensure stricter compliance with existing legislation on labour standards and conditions.
As advertising plays an important role in influencing the choice of destinations and how tourists behave on holiday, it is essential to adapt marketing to include issues of fairness and sustainability.

Source(s):
‘Tourism and socio-economic development: UK tour operators’ business approaches in the context of the new international agenda’, International Journal of Tourism Research, Vol 3 (5), by Richard Tapper, 2001 Full document.

Funded by: Voluntary Service Overseas (VSO)

id21 Research Highlight: 24 February 2003

Further Information:
Richard Tapper
Environment Business and Development Group
16 Glenville Road
Kingston upon Thames
KT2 6DD
UK

Tel: +44 (0)20 8549 1988
Fax: +44 (0)20 8459 1988
Contact the contributor: rtapper@dircon.co.uk

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