the sustainability challenge: implications for tourism

The Sustainability Challenge: Implications for Tourism

Green Tourism Forum II April 22, 2008, Vancouver

Why are we here today?

Something’s Wrong

• “Climate change is the greatest and widest-ranging market failure ever seen” Sir Nicolas Stern

• “The food crisis of 2008 has revealed market failures at every link in the food chain.”Economist, April 2008

• This is the worst financial crisis since the Great Depression. You've seen the sudden deterioration of perceived credit quality of financial institutions around the world; you've seen the sudden failure of major institutions. John Lipsky, Head of the IMF

Major Threats

The odds of Homo Sapiens surviving the next century are at best fifty-fifty.

Lord Rees, President of the Royal Society

If there is no action before 2012, it’s too late. What we do in the next two to three years will determine our

future. This is the defining moment.Dr. R.J. Pachauri, Head of the IPCC and Nobel Peace Prize winner

Enormous Possibilities

Deep Change

Deep Change

We’re at the fork in the road

Tourism Doesn’t Operate in Isolation!

It’s Time for Some Truth Telling

Words Are Losing Their meaning

It’s Time for Some Truth Telling

In a time of universal deceit, telling the truth becomes a revolutionary act.

George Orwell

It’s Time for Some Hard Thinking

Rarely do we find men who willingly engage in hard, solid thinking. There is an almost

universal quest for easy answers and half-baked solutions. Nothing pains some people more than

having to think.Martin Luther King

So this is Home

We’ve only one!

If you throw something away – where is away?

A growing sense of limits

Growing uncertainty stemming from complexity

Small actions in remote places can have large and unpredictable consequences

We’ve Only One Home!

BUT……..

But we Need Three to Support Our Current Population & Lifestyle

The Wealthier Nations Need Five!

And that’s simply not sustainable

It’s Not Just Climate Change!!We’re simply living beyond our means

• Every year we destroy 44 million acres of forest…• Lose 100 million acres of farmland….• Lose 24 billion tons of top soil• Use 160 billion tons more water than is produced by

rain• Lose species – 6th mass exctinction• We’re destroying the earth’s thermostat• Earth is not a resource, a dumping ground but a

living organism and “she” has a fever

Climate Change – The Hangman’s Noose That Focuses The Mind?

“Climate change is the synthesis of all other environmental issues; energy inefficiency, pollution, species extinction, water use, desertification, urban sprawl…many of the most pressing environmental issues are related intimately to the problem of climate change”

Canadian Environmental Grantmaker’s Network

Actually, It’s a Question of Justice

• Environmental Justice

• Social Justice

• Individual & group welfare, personal fulfillment, well-being & meaning

And this has everything to do with tourism!

The Perfect Storm • Energy• Water• Food• Resources• Waste Absorption• Population• Globalization & Wealth

Distribution• Financial Systems• Security• Technology • Complexity

Possible Consumer Responses Recent Headlines:

» “What is the real price of cheap air travel?” - The Observer, Jan. 2006 » “‘It's a sin to fly,’ says church” - The Sunday Times, July 2006» “Flugreisen als Klima-Killer” - Abendblatt, July 2004» “Climate conscious may ditch air travel” - New Zealand TV One, April, 2007» “The plane truth” - Guardian Unlimited, July 2007

Recent Traveler Surveys: British survey:

» 70% believed ‘air travel harms the environment’ » 64% agreed ‘the price of a plane ticket should reflect the environmental

damage that flying causes, even if it makes air travel more expensive.’

TripAdvisor survey in EU:» 24% said air travel should be avoided to help preserve the environment.» 26% would pay a premium of up to 10% for an eco-friendly flight » only 3% however, have purchased carbon ‘off-sets’

So how resilient can tourism be?

Tourism: Code Red Alert

The Challenge of Volume Growth

Volume Growth

Emissions Reductions

Listen to the Wise Ones!

Listen to the Wise Ones!

Albert’s definition of insanity as powerful as E=MC2

Debunking the Myth of Sustainability

Sustainable development “a process to meet the needs of the present without compromising the ability of future generations to meet their needs.” Bruntland

The triple bottom line approach based on the balance of social, economic and financial factors…. as if they were equals

GUEST

Host community

Host business

Environment

BUT the economy is a wholly owned subsidiary of the environment!

Debunking the Myth of Sustainability

Sustaining as in perpetuating won’t work!

Sustaining as in More of the same won’t work

In the natural world, all growth is checked – it’s about development not growth

How many of your have sons?

Unchecked Growth Ain’t Natural!

• There are limits• There is no free lunch • Nature’s subsidy program is over• No more cheap oil• No more cheap credit• No free waste disposal services• Less plentiful space• No unexplored “shangri la’s”

We have to change our Minds

We have to change our Mindsets!

Time to Change Our View

LinearMechanical – take it apartHard/objectiveSubject-object – resource exploitationCause and EffectPower concentrated

Circular, complexFuzzy, Organic – ECOLOGICAL Soft, subjective (Heisenberg) Participatory; co-evolvingEmergencePower distributed

Symbols are Everywhere!

From lines that divide

+To lines that unify

ODialectic of oppositesUp downRight wrongIn out Particle or waveYes but With us or against us

Inclusive, holisticDifferent PerspectivesPossibility AmbiguityWe’re all oneBoth particle and waveYes andThe health of one and the system are the same

The Tourism System

HOSTSUPPLIER

SOCIETY

GUEST

ENVIRONMENT

Does this remind you of something?

Balance = Health

GUEST TOURISM SUPPLIER

Physical

Emotional

Value

Spiritual

EnvironmentalReturn

Social Purpose

Balance = Health

SOCIETY ENVIRONMENT

Heritage

CultureSocial Justice

Net Benefit

Pride of Place

Eco HealthEco Services

Environmental Justice

WelfareHarmony

Develop Measures for System Health

• Vigor, Vitality

• Diversity

• Balance

• Resilience

“Internalize the Externalities”

Pay Nature Her DueImplications of Stewardship

Time to Re-think the Role of Business

Sea Change in Role of Business

• It is time for big business to recapture the intellectual and moral high ground from its critics and to build social issues into strategy in a way that reflects their actual importance to companies.McKinsey

• 68% of the CEOs are focusing on corporate social responsibility to create new revenue streams and over half believe that their CSR activities are giving them a competitive advantage. IBM Institute of Business Value

VOLUME-SIZE• More is better• Customers are targets• I win, you lose• Business is only about

Business• Welfare can be managed by

GDP• Technology will take care of

it

VALUE - HEALTH• Yield• Welfare• “Wellth”• Return on capital

– Social– Natural – Financial

• NET benefit to all stakeholders

Time to Re-think Our Unexamined Assumptions

The Business Case

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The Business Case

1. Huge Savings2. Brand Reputation and Brand Value3. Shareholder Expectations4. Supply Chain Pressure5. Employee Recruitment and Retention6. New market opportunities7. Resilience!

What Next?1. Take responsibility! R3

– Reduce– Replace– Renew

2. Honest appraisal, benchmark, rigor3. Engage in conversation with

customers employees residents investors competitors other destinations students academics new media

4. Think quality, unique, limited 5. Re-cycle ideas, materials6. Dare to be Bold7. Seize a closing window of opportunity….8. Act first , tell later

What Next?1. Take responsibility! R3

– Reduce– Replace– Renew

2. Honest appraisal, benchmark, rigor3. Engage in conversation with

customers employees residents investors competitors other destinations students academics new media

4. Think quality, unique, limited 5. Re-cycle ideas, materials6. Dare to be Bold7. Seize a closing window of opportunity….8. Act first , tell later

10 Steps Towards GREEN1. Develop a series of binding targets and indicators; 2. Measure footprint3. Introduce a “carbon disclosure project” that requires all tourism

businesses that wish to participate in any province funded programs to disclose the carbon they generate and report on steps being taken to reduce that carbon

4. Develop other policy instruments that encourage the adoption of measures to: – eliminate waste (carbon and other) – switch to renewable energy sources– offset the balance through credible, in-destination programs

10 Steps Towards GREEN5. a well articulated business case that is sub-sector specific ( ie relates to

accommodation, transportation, tours, meetings, food & beverage, airlines etc)6. an active, well funded industry education program that develops and delivers very

practical tools to advise businesses how to do the a.b.c.and d. measures listed above

7. a tough, destination-wide certification program that involves an independent audit of businesses.

8. Active research into and engagement with leading consumers, consumer groups and influencers that have expressed support for the switch away from industrialized to low impact tourism .

9. A visitor education program that highlights the importance of travelling lightly – spending longer at one place, using public transportation, seeking out locally produced services and products; purchasing offsets……

10. A destination offset program that can be used by visitors and suppliers alike to offset the carbon reductions they can’t make by behavioral change. The Green pass program suggested last summer still has potential …..

It’s Not About Despair!

It’s About Hope

What’s Your Contribution Footprint?

Thank You

www.theicarusfoundation.com

www.icarusfoundation.typepad.com

www.ceopatachallenge.com/blog

4. Changing Demand Drivers

Travel Demand

Opportunity Need Values

Price/Value Utility/Experience Meaning/Transformation

• Commodity• Luxury• Status• Right

• R & R•S & S•Togetherness•Explore•Adventure•Create•Learn•Express Identity

• Meaning•Self realisation•Philanthropy•Cause-related•Aspirational

I travel because I Can!

Make It EasyKeep it cheapShow me a deal

I travel to do ….Help me achieve my goalCan anyone help me reduce my risk?

I travel to find meaning and do goodShow me you care. What do you stand for? Can I trust you’re for real?

RISK =Cheap oil & cheap credit not cheap!

RISK = substitutionand homogenization

RISK = the value itself