Corporate social responsibility in tourism

1. Introduction to an Interactive Workshop Corporate social responsibility in tourism

2. What is Corporate Social Responsibility? EU definition • "A concept whereby companies integrate social and environmental concerns into their business operations and into their interaction with their stakeholders on a voluntary basis. “ • CSR covers social and environmental issues • CSR is not or should not be separate from business strategy and operations • CSR is a voluntary concept • an important aspect of CSR is how enterprises interact with their internal and external stakeholders

3. Who are the ‘Stakeholders?’ • Employees • Customers • Owners • Neighbours • Society at large • Non-governmental Organisations (NGOs) • Public Authorities • Journalists • Etc……and including YOU!

4. What is Tourism? WTO: “The activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”. In other words: A tourist is a person who goes to another place for private interest or who is sent there (for example by a company), but is not employed at this place. Business tourists may go to this place for a conference, a workshop or further education. Private tourists may go there for adventure, recreation, education, pilgrimage or other purposes.

5. Tourism as an industry Tourism can also be defined as a service industry with three main foci: • Transport:bringing people from one place to another • Accommodation:giving people a place to stay • Services:offering goods and manpower in order to fulfil the wishes of the travellers

6. Importance of tourism in the economy • We can define ‘tourism industry’ in a narrow sense, e.g. accommodation establishments, restaurants, cafes, bars and canteens as well as travel agencies and tour operators. • We can also define ‘tourism industry’ in a broader sense and include related sectors such as transport and branches that are dependent on the tourism industry. • Depending on the narrower or wider definition, tourism contributes 4-11% to the gross domestic product (GDP) of the European Union and 4-12% to European employment. Therefore it is an important economic sector. • In Bulgaria under the wider definition it accounts for in excess of 18% of GDP and will increase

7. Growth of tourism • Europe is the world’s most important tourist destination and the most important tourist generating region. • The number of international arrivals in Europe rose from 25.3 million in 1950 to 414 million in 2003 and may rise beyond 700 million in 2020, of which 30 million could be to Bulgaria. • About 80% of tourism comes under the category of non-business travels.

8. And therein lies the problem How to balance the needs and wants of the consumers and suppliers in this important, huge and growing industry with the social, environmental and economic determinants of sustainability?

9. Social aspects • People, people and ..........people • Workers and managers: proper work conditions, workers rights, career progressions, training, motivation, responsibility and rewards, health and safety • Guests: a good experience, no rip-offs, responsible advertising, encouraging awareness of nature, customs, culture • Residents and society at large: quality of life, transparency, cultural and ethnic diversity, infrastructure, community engagement

10. Environmental aspects • Saving the Planet: energy, water, waste, pollution - so energy-saving light bulbs, motion sensing controllers, laundry reduction and detergent selection, trash sorting etc. + education + eco-labelling etc. • SAVING BULGARIA: environmental and health and safety impact studies, visual impact, informed consultation, established norms for new product development etc. , legal compliance and transparency

11. Economic aspects • True to your business model: break even, fixed ROI expectation, loss-leader etc. • Taxes: corporate tax, bed tax, social security taxes, insurances – have to be paid, and at the same time there is a responsibility within local and central government to re-invest both in the industry and in the region (see Las Vegas!) • Industry trends: buy-to-let market, off-plan developments, unfinished construction works • Benchmarking (USALI), Anti-corruptionmeasures etc. • PLUS the trinket sellers

12. There follows a Short Film ‘NO COMMENT’ To stimulate us to THINK about the Social, Environmental and Economic Aspects of Tourism in just one developing Bulgarian resort town -Bansko Produced for the Project by International Software and Information Systems (ISIS), Sofia

13. In Summary (1) • Tourism is one of the world’s largest industries and is of particular importance to the economies of highly developed as well as developing countries and emerging markets, and including Bulgaria. • As a significant source of foreign exchange and employment the sector has a great potential for development. • Nevertheless, there are great concerns about the social and environmental problems that uncontrolled tourism can cause. • Tourism can lead to environmental degradation and the destruction of fragile ecosystems.

14. In Summary (2) • CSR no longer refers solely to charitable contributions detached from a company’s core business. • It means adopting open and transparent business practices that are based on ethical values. • And it means managing all aspects of operations for their impact not just on shareholders, but also on employees, communities and the environment. • Ultimately, CSR is about delivering sustainable value to society at large, as well as to shareholders, for the long-term benefit of both business and society

15. In Summary (3) • CSR in Tourism is not just some luxury or a ‘nice thing to do’ • It is the ONLY mindset that will ensure actions that guarantee SUSTAINABILITY of a crucial revenue industry that can make the whole country better off both financially and in terms of quality of life • And it is EVERYBODY’S BUSINESS!

16. Good Practice in Action • The Seattle Westin Hotel achieved a 66 percent reduction in guest room wattage and an annual savings of $400,000 by changing incandescent bulbs to energy-saving compact fluorescent light bulbs and improving control mechanisms. • When a study at the 17-floor Hotel Nikko in Hong Kong found that a third of guests did not turn off the master electrical switch when leaving their rooms, the hotel installed keycard-controlled master switches. The hotel estimates the keycard system saves $0.30 per room per day. With an initial cost of $21 per switch, the payback period is 70 days.

17. Good Practice in Action (2) • The Apple Farm Inn and Restaurant, a luxury hotel in California, USA, with only seven rooms, uses discharged water from washing machines to flush toilets, saving 15,900 liters (4,200 gallons) of water per day and approximately $5,000 per year. • Sandals Negril Beach Resort & Spa in Jamaica uses low-flush toilets and urinals which use only 5.7 liters (1.5 gallons) of water per flush, aerators and low-flow devices on faucets, water-saving showerheads with a maximum flow of 9.5 liters (2.5 gallons) per minute, and ground care water-saving techniques to reduce water loss from evaporation. In the three years from 1998-2000, total water consumption per day was reduced 28.6 percent.

18. Good Practice in Action (3) • Disney World, in Florida, USA, recycles 15.2 million liters (4 million gallons) of wastewater a day for irrigation of landscaping and golf courses. The company found this method was not only environmentally responsible, but cost-effective, as using municipally treated water would have been much more expensive. • Grecotel worked with local authorities in Greece to install a wastewater treatment plant that treats water from both the hotel and local communities, thereby helping to preserve local water quality.

19. Good Practice in Action (4) • At Great Keppel Island Resort, in Australia, organic wastes are shredded, composted for several weeks and then fed to the worms at the resort’s worm farm. The worms produce a rich product that is used in the resort’s gardens instead of fertilizer. This system reduces waste and eliminates the costs of removing trash from the island. • The recycling program at the Banff Springs Hotel, in Canada, has cut waste by more than 85 percent. • Since 1998, the NovotelNorthBeach in Australia has recycled, on average per week, 5000 kg of glass, 500 kg of cardboard, 700 kg of paper, 100 kg of plastic and 1500 kg of organic waste which is sent to farmers.

20. POINTS OF VIEW What some of the Tourism Industry Chiefs say and do about Corporate Social Responsibility ….

21. J W Marriott Jr, Chairman & CEO,Marriott International “I’ve been in this business for a long time and know first hand that tourism is the economic cornerstone of many communities around the world. While a thriving tourism industry can provide a better livelihood for local people, it cannot be at the expense of the environment and local culture. Travel & Tourism has come a long way in the past decade in facing up to its social and environmental responsibility, and we are proud to be part of organizations such as WTTC that are ‘raising the bar’ for the industry.”

22. Jean Gabriel Pérès, President & CEO,Mövenpick Hotels “We strongly believe that local people who live around our hotels, especially youth, are ourfuture. In the hotel business we have a responsibility and an excellent opportunity to helppeople develop in ways that will contribute to the prosperity of the entire community andhelp individuals realize their dream of a better life. At the same time, this approach is goodfor our business – when you help people, they do their best for you.”

23. Jim Skinner, CEO McDonald's Corporation "Corporate responsibility means many things to many people. At McDonald’s, being a responsible company means living our values to enable us to serve food responsibly, and work toward a sustainable future."-

24. Jean-Marc Espalioux,Chairman of the Management Board & CEO, ACCOR “Corporate social responsibility is part of the future for all companies. With the creative use of incentives and awards, the entrepreneurial spirit and market forces can be harnessed for the good of business and society.”

25. Rod Eddington, Chief Executive, British Airways “I am convinced that the Travel & Tourism industry has a huge opportunity to contribute to building a sustainable global society.By bringing people into contact with different cultures and environments across the globe, we can increase awareness of what the issues are and of what is needed for responsible practices.”

26. Marilyn Carlson Nelson, Chairman & CEO,Carlson Companies, Inc “As global companies become citizens of everywhere, each must be on guard that they don’t become ‘citizens of nowhere’. As a family-owned company, we have a deep sense of commitment to being good corporate citizens and promoting the sustainable development of local communities. We do this not only by creating value, but by placing the highest possible value on our employees, our communities and the environment.”

27. Kurt Ritter, President & CEO,Radisson SAS Hotels & Resorts “At Radisson SAS our commitment to sustainable development and responsible tourism has developed considerably over the past ten years, and today we have made environmental and social responsibility acornerstone of how we conduct business around the world. I am proud to say that our Responsible Business programme has resulted in significant achievements, both to improve the quality of life in the communities where we operate and to reduce our impact on theenvironment. I have no doubt that these achievements will help shape the future success of our company.”

28. Thank you for your time and attention! Please follow the project website, participate in the wiki, fill out our online questionnaires and come again in October and January. Dr. Barbara Page-Roberts E-mail: bapr@ifidbulgaria.eu www.barbarapageroberts.eu Project address: www.tourism-csrbg.eu