1 Harold Goodwin Creating Shared Value.

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www.haroldgoodwin.info/links.html

Harold Goodwin

Creating Shared Value

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What is the purpose of tourism?

Ask not what your country can do for you, ask what you

can do for your country.

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What is the purpose of tourism? The world’s largest industry – but it

needs government support for its marketing

Freeloader problemTourism needs to win support

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Different perspectives on the “world’s largest industry”

National International Arrivals Length of stay Foreign Exchange

Earnings Net Foreign Exchange

Earnings Expenditure Balance of Payments

deficit

Local Visitor Economy

– Shoppers and day visitors travelling from home.

– Day excursionists (tourists) travelling in from holiday accommodation

– tourists staying in the local economy

Local spend - £ € $

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Responsible Tourism

“making better places to live in, better places to visit.”

Cape Town Declaration

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A journey to responsibility?

Bonding and financial guarantees Repatriation Member discipline Trading standardsHealth & SafetySustainability

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The Business Case for Responsible Tourism The right thing to

do Minimising risk License to operate Product quality Cost savings Staff morale Market Advantage

Market Advantage Experience

– richer– more authentic – guilt free

Differentiation and PR Reputation Referrals Repeats

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Responsible Tourism

It is not about CSR,–Philanthropy &

–Volunteering

It is about how the business does its business

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Shared Value – Porter

The Big Idea Creating Shared Value Porter and KramerHow to reinvent capitalism – and unleash

a wave of innovation and growthHarvard Business Review 2011

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What is shared value?“policies and operating practices

that enhance the competitiveness of a company while simultaneously advancing the social and economic conditions in the communities in which it operates.”

Focuses on identifying and expanding the links between economic and social progress

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An outdated approach to value creation Companies have overlooked

– the wellbeing of their customers– the depletion of natural resources

vital to business – the viability of key suppliers– “the economic distress of the

communities in which they produce and sell”

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Companies must bring business and society back together

Shared value – creating economic value in a way that also creates value for society by addressing its needs and challenges.

“Business must reconnect company success with social progress.”

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Shared value is not

Social responsibility Philanthropy Sustainability “rather a new way to achieve

economic success.”“Businesses acting as businesses

not as charitable donors”

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Why?

“A business needs a successful community, not only to create demand for its products, but also to provide critical public assets in a supportive environment.”

Contrary to “self-contained entity” idea of the firm the “old, narrow view of capitalism.”

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Shared value

“societal needs define markets” “Expanding the total pool of

economic and social value” Creating “a bigger pie of revenue

and profits”

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Competitive advantage Comes from “how it configures the

value chain.”“Value is defined as benefits

relative to costs, not just benefits alone.”

Externalities are ignored in conventional economics

PPTP: net benefits

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What is shared value?

“policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the social and economic conditions in the communities in which it operates.”

Focuses on identifying and expanding the links between economic and social progress

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What does tourism contribute locally?

Employment at a range of skill levels, wages & salaries, progression

Enterprise opportunities for sales to tourists and tourism businesses

Entrance fees for conservation

Donations, Volunteering & mentoring

Enables a variety of businesses to thrive which may not otherwise find a large enough local market

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Shared Value & Tourism

Employment– Wages– Training – Progression – & Beyond the

sector

Infrastructure gain – roads, IT, water.

Local sourcing and enterprise development by

1.Tourism Businesses &

2.Tourists

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Tour Operating and Creating Shared Value

Simon Pickup ABTA

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The Social and Cultural Benefits of Tourism

Ken Robinson

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The Importance of a Collective Approach to a Thriving Visitor Economy

Jason Freezer VisitEngland

The New Forest Experience from Tourism to Local Economic

Development

Anthony Climpson NFDC

Reporting Local Economic Impact

Jenefer Bobbin Responsible Tourism Reporting

Village Ways

Richard Hearn Village Ways

The Bridlington Fish Challenge

Martin Batt Yorkshire Wildlife Trust

ROOTS: a case study from The Gambia

Suzannah Newham The Travel Foundation

A Tour Operator Intervention in The Gambia

Jo Baddeley,Sustainable Destinations Manager,Thomas CookUK & Ireland

Round Table Discussion "Is there any substance to the idea of Creating Shared Value? How does it relate to tourism?

Martin Brackenbury, Harold Goodwin, Ken Robinson, John de Vial,

Nikki White

1 Harold Goodwin Creating Shared Value.

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