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Corporate Responsibility as Essential to Sustainable Tourism Yield


To discuss the link between the development of indicators of tourism yield' and ... The characteristics of the destination (its physical and social fabric) ... – PowerPoint PPT presentation

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Title: Corporate Responsibility as Essential to Sustainable Tourism Yield

Corporate Responsibility as Essential to
Sustainable Tourism Yield
  • Larry Dwyer, Leo Jago, Marg Deery and Liz Fredline

Aims of Paper
  • To discuss the link between the development of
    indicators of tourism yield and the development
    of indicators for TBL reporting
  • to highlight the results of the authors attempts
    to develop financial, social and environmental
    measures of tourism yield.
  • to discuss the challenges faced in converting
    these independent measures into an overall
    measure or index of sustainable yield
    consistent with TBL reporting.

TBL Reporting and Tourism Yield
  • A TBL is not a quest for a new bottom line metric
    but rather an approach to management and
    performance assessment that stresses the
    importance and interdependence of economic,
    environmental, and social performance.
  • TBL is an emerging value creation concept,
    based on a recognition that for a company to
    prosper over the long term, it must continuously
    meet societys needs for goods and services
    without destroying natural or social capital

The measurement problem
  • A problem that bedevils TBL reporting is the
    difficulty of measurement of social and
    environmental effects of business operations
  • There is presently no accepted single standard
    for measuring the combined economic,
    environmental, and social performance of an
  • Some commentators argue that this is an
    unachievable aim

Sustainable Yield
  • Different types of tourists
  • spend different amounts of money within a
  • buy different types of goods and services
  • undertake different patterns of activities.
  • They will thus have different types and levels of
    economic, social and environmental impact
  • The notion of Sustainable yield seeks to
    incorporate all of these impacts in one measure

Sustainable Yield
  • On a broader view, the notion of yield
    includes environmental and social value in
    addition to economic value
  • In the context of sustainable development, it is
    impossible to consider the economic dimension in
    isolation from the social or environmental and
    vice versa
  • This implies a re-examination of the notion of
    yield and its implications for tourism firms

Sustainable Yield
  • Each inbound market segment incurs economic,
    social an environmental costs as a result of the
    services utilised during their stay. These costs,
    or footprints, vary across market segments
    depending on the mix of services utilised
  • Incorporates social and environmental dimensions
    with economic measures
  • Difficulties in measuring social and
    environmental footprints of tourists
  • CRC is currently developing measures of
    sustainable yield with reference to TBL literature

Expenditure and Financial Yield associated with
Special Inbound Tourism Markets
GOS as proportion of expenditure by Niche market
Real GOS per visitor night by Niche market
GOS per visitor trip and per visitor night by
Niche market
Social and Environmental Yield
  • The impacts that particular groups of tourists
    have on their hosts and the natural environment
    depends on the interactions between four sets of
  • The characteristics of the tourists (including
    the volume and pattern of their spending)
  • The characteristics of the tourism activity (what
    tourists do)
  • The characteristics of the destination (its
    physical and social fabric)
  • Destination Management Practices (tourism
    planning, policy, regulations)

Measuring Social Yield
  • Australias International Visitor Survey
    publishes data on the types of activities
    undertaken by inbound visitors by country of
    origin and by travel motivation (holiday, VFR,
    Business etc).
  • The market segments also include the niche
    markets identified above.

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Towards a measurement of social yield 5 Steps
  • profiling destinations based on their
    characteristics (eg. stage of tourism
    development, tourist/resident ratio, remoteness,
    number of industrial bases, seasonality, cultural
    vulnerability, environmental vulnerability, level
    of resident support for tourism)
  • identifying the characteristics which define the
    key market segments of tourists attracted to each
    destination (eg. origin, age, travel motive,
    first or repeat visit, travel party, type of
    accommodation, transport used
  • identifying the types of activities that each
    market segment undertakes
  • identifying the social impacts associated with
    various activities and travel behaviours
  • valuing the impacts

5 Steps
  • The first three steps are relatively
    straightforward and depend on data availability
  • The authors have undertaken some preliminary work
    in respect of each of these steps
  • Regarding step four, there is little to no
    empirically tested evidence of the link between
    various activities (and other travel behaviours)
    and a measure of social impact.
  • This empirical testing must be undertaken to
    advance the development of social yield measures.

matrix of a range of activities and a range of
social impacts
Measuring Social Yield
  • The matrix could be completed through a survey,
    perhaps using a Delphi technique, with a small
    expert sample of tourism stakeholders in the
    destination under examination.
  • Preliminary secondary data analysis would be used
    to identify the key market segments and their
    dominant activities and travel behaviours.
  • The expert panel could then rate the social
    impact of each group in terms of each specific

Measuring Environmental Yield
  • a hybrid input-output approach was used to takes
    into account direct impacts of tourist
    accommodations and indirect impacts caused by the
    consumption of goods and services
  • Thus the approach covers so-called audit-type
    on-site impacts as well as off-site impacts
    of the entire supply chain.
  • The relevant environmental impacts include those
    on energy use, water use, greenhouse gas
    emissions and (in aggregate) ecological

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Energy Use per trip
Energy Use per day
Rankings of niche markets, selected economic and
environmental yield measures
  • The measures developed in this paper help towards
    operationalising the notion of sustainable
    yield at the operator level.
  • They also are capable of providing guidance to
    firms as to what markets they should target in
    order to promote sustainable tourism

  • At this time, no method has been developed for
    merging these impacts into a single measure of
  • there are particular problems of converting
    social impacts into dollar amounts
  • the measures are valuable in allowing tourism
    operators to better understand the trade- offs
    that may need to be made in tourism development
    and marketing activity
  • .

  • The results can help to develop strategies to
    achieve highest sustainable yield.
  • Achieving long term sustainable and profitable
    tourism products would secure a competitive
    advantage for any tourist destination with
    benefits to all tourism stakeholders.
  • The approach can improve the capacity for
    management decision making by tourism
    stakeholders to promote high yield sustainable
    tourism that enhances competitiveness in the
    tourism industry.