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1 www.haroldgoodwin.info/links.html Harold Goodwin Creating Shared Value.

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Presentation on theme: "1 www.haroldgoodwin.info/links.html Harold Goodwin Creating Shared Value."— Presentation transcript:

1 1 Harold Goodwin Creating Shared Value

2 2 What is the purpose of tourism? Ask not what your country can do for you, ask what you can do for your country.

3 3 What is the purpose of tourism? The worlds largest industry – but it needs government support for its marketing Freeloader problem Tourism needs to win support

4 4 Different perspectives on the worlds 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 - £ $

5 5 Responsible Tourism making better places to live in, better places to visit. Cape Town Declaration

6 6 A journey to responsibility? Bonding and financial guarantees Repatriation Member discipline Trading standards Health & Safety Sustainability

7 7 The Business Case for Responsible Tourism The right thing to do Minimising risk License to operate Product quality Cost savings Staff morale Market Advantage Experience –richer –more authentic –guilt free Differentiation and PR Reputation Referrals Repeats

8 8 Responsible Tourism It is not about CSR, –Philanthropy & –Volunteering It is about how the business does its business

9 9 Shared Value – Porter The Big Idea Creating Shared Value Porter and Kramer How to reinvent capitalism – and unleash a wave of innovation and growth Harvard Business Review 2011

10 10 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

11 11 An outdated approach to value creation Companies have overlooked –the wellbeing of their customers –the depletion of natural resources vital to business –the viability of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

12 12 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.

13 13 Shared value is not Social responsibility Philanthropy Sustainability rather a new way to achieve economic success. Businesses acting as businesses not as charitable donors

14 14 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.

15 15 Shared value societal needs define markets Expanding the total pool of economic and social value Creating a bigger pie of revenue and profits

16 16 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

17 17 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

18 18 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 18

19 19 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

20 20 Tour Operating and Creating Shared Value Simon Pickup ABTA

21 21

22 22 The Social and Cultural Benefits of Tourism Ken Robinson

23 23 The Importance of a Collective Approach to a Thriving Visitor Economy Jason Freezer VisitEngland

24 The New Forest Experience from Tourism to Local Economic Development Anthony Climpson NFDC

25 Reporting Local Economic Impact Jenefer Bobbin Responsible Tourism Reporting

26 Village Ways Richard Hearn Village Ways

27 The Bridlington Fish Challenge Martin Batt Yorkshire Wildlife Trust

28 ROOTS: a case study from The Gambia Suzannah Newham The Travel Foundation

29 A Tour Operator Intervention in The Gambia Jo Baddeley,Sustainable Destinations Manager,Thomas CookUK & Ireland

30 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


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