No. 99 - March 2008
2008 Travel and tourism competitiveness report
Sustainable Tourism

By Karen B. Bitagun , Research Associate


“Take nothing but pictures. Kill nothing but time. Leave nothing but footprints.”
– John Kay, in a song “Nothing But”

There is much talk about climate change these days, not only in policy forums and national debates but also in regional bloc meetings. Why? The huge negative impact of climate change not only looms on the horizon but the damage has already begun. For instance, extreme hot temperature that foster super cyclones has already rattled the ecological balance, agricultural harvests, basic infrastructure, and other significant economic activities across the globe.

The travel and tourism sector is among the hardest hit by these extreme changes in the climate. The environmental crisis is so imminent and encompassing yet the preparations, solutions and mitigating measures for climate change must look beyond the next decade.

In the second edition of the Travel and Tourism Competitiveness Report, the World Economic Forum (WEF) underscores the close relationship between the environment and tourism: natural resources provide tourist attractions such that the tourism industry becomes the lever towards environmental protection and preservation. Because of this strong affinity between tourism and nature, economies should realize that putting more safeguards on the environment creates opportunities and leads to competitiveness in travel and tourism.

TOURISM AND THE ECONOMY

What does it mean to be competitive in travel and tourism? Travel and tourism as part of global commerce has now become a multi-trillion-dollar business. In 2007 alone, the industry raked in about US$7 trillion in revenues. In other words, the huge profit from tourism sector is equivalent to 10% of the world’s gross domestic product (GDP). The sector created around 8% of the total new jobs in 2007 while it annually pumps in about 12% of global investments.

Based on the 2008 Travel and Tourism Competitiveness Report, Switzerland, Austria and Germany maintained their positions as the Top 3 tourist destinations among 130 countries surveyed. The Top 10 is completed by other developed countries, namely, Australia, Spain, the United Kingdom, the United States, Sweden, Canada and France. Noticeably on the elite roster, only two countries are outside Europe: Australia and the United States.

To come out with the rankings, the WEF uses the Travel and Tourism Competitiveness Index (TTCI) which is an aggregate of three sub-indexes: the regulatory framework, the business environment and infrastructure, and the human, cultural and natural resources. The regulatory framework sub-index considers a nation’s policies such as openness to tourism, environment sustainability, safety and security, health and hygiene and other general policies.

Meanwhile, the business environment and infrastructure sub-index measures a country’s business atmosphere, including pricing strategies. The sub-index also checks the overall quality of all infrastructures essential in the day-to-day operations of travel and tourism. The human, cultural and natural resources sub-index captures all the other assets of a country that are related to tourism, such as a world-class workforce, unique heritage, breath-taking sights and other services.

Taking all these factors into account, developed nations find their respective places on the upper echelon of the TTCI rankings. Their richness in natural wonders and cultural heritage is supplemented by good economics. Economic condition becomes crucial since it helps fund infrastructure development and other basic services, ensures cultural and environmental preservation, and improves the quality of life of the populace. Meanwhile, developing countries, especially those in Asia and Africa, are blessed with pristine beaches and natural wonders yet lag behind in terms of competitiveness.

The Philippines managed to ascend five notches to No. 81 among 130 countries in 2008 from No. 86 out of 124 countries surveyed the prior year, thanks to the big lift in the human, cultural and natural resources sub-index to No. 78 from No. 100 the year before. The natural resources factor of the country scored 3.2 (7.0 is highest), ranking it No. 58. Meanwhile, the country’s cultural resources factor scored 2.0 and landed it at No. 82. Human resources improved by 32 places to No. 61. The last validates that the country’s strength lies in its labor force. Likewise, Filipinos manifest their warm hospitality under the attribute affinity for travel and tourism, which went up by 18 notches to No. 61.

While tourism is on the priority list of the national agenda, relatively poor infrastructure hampers the achievement of the nation’s full potential in tourism. The country’s waterloo remains on the basics. All its infrastructure scores are low, demanding for extensive improvements. On air transport infrastructure the country scored a measly 2.9, ranking it No. 72 worldwide, while its ground transport infrastructure garnered 3.2 at No. 85, tourism infrastructure tallied 2.3 at No. 97, and ICT infrastructure obtained a 2.1 score to settle at No. 89. Not only that, threats to safety and security (No. 113) and health and hygiene
(No. 91) turn off tourists from visiting the Philippines.

Like its developing neighbors, the Philippines is rich in natural endowment but its poor economy makes it unable to fund protection of these vital endowments. Without the necessary protection, natural resources, which are a great competitive advantage for a country like the Philippines, could deteriorate quickly.

TOURISM AND SUSTAINABILITY

Travel and tourism has grown into a multi-trillion industry in terms of revenues. However, with the public’s rising awareness of the need to care for the environment, the call is now for business to strike a balance between profitability and sustainability. Balance means a conscious effort on the part of business managers to reduce wastes and carbon emissions in their respective ventures, shift to more efficient methods and technology, and to advocate environmental protection in all aspects of the business. Green strategies can be applied in fundamental facets of travel and tourism such as distribution, transportation, and accommodation.

Initially, it may be costly for a business to make the green switch but it would be worth the investment in the long run for the following reasons. For one, national and local governments usually give tax breaks to businesses that put up clean and green investments. Secondly, more efficient green methods would eventually lead to higher productivity, thus reducing costs for business operations. Thirdly, being socially and environmentally responsible gets a premium as tourists get more environment-conscious and tend to patronize these green hotels, restaurants, and other businesses. Lastly, every metric ton of CO2 emission reduced means longer life for the earth and its inhabitants. One tourist trip emits 0.25 metric tons of CO2 and 40% of total carbon emissions come from the air transportation sector, according to the United Nations World Tourism Organization (UNWTO).

The sustainability of the environment creates a multiplier effect to the economy. Well-maintained natural sights and wonders become engines of growth as visitors spend for national park entrance fees, transportation, and souvenir gifts and crafts. A transfer of wealth occurs from travelers to tourism enterprises. Accommodating more tourists would mean more jobs for locals, improving their social and labor skills.

On the other hand, the growing international travel can also create negative implications for the world’s cultural heritage and natural wonders. Future developments will soon need to be sensitive to unabated energy consumption, enlarging carbon footprint, greater pollution, and heightening ecological imbalance.

CONCLUSION

Tourism as a business generally requires a huge sum of money to assure top-caliber service to travelers and visitors. Given the positive spillover effects, which the industry injects into the economy, funding tourism may be an expensive investment but a profitable and a sure job-generator in the long run. But due to economic incompetence, developing countries find it hard to fund basic services. Just like the Philippines, which prides itself for its rich Filipino heritage and unique natural beauty to foreign travelers, its tourism industry suffers from infrastructure incapacity such as insufficient accommodation facilities, poor road system, lack of clean public toilets, and the like. Indeed, competitiveness in tourism is not solely about the scenery but about the entire travel experience of tourists.

As travel and tourism assumes greater role as a catalyst for growth, it has to meet the current needs of the industry without compromising the needs of future generations. While tourism heavily relies on natural sights, every economy must address environmental preservation and maintain ecological balance because the earth is not merely for human consumption.

At the end of that day, sustainable tourism becomes a regulatory and business issue. Clean environment boosts tourism, so does poor tourism practices contribute big time in the overall environmental picture. A simple reminder should do: we can only live in one planet. Whatever is good for the planet is good for the industry, and good for travelers.

 

 

 

 

 
 

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