Tourism Enterprise. David Leslie
may largely reflect the mores of the major source markets; thus, as tourism supply expands so too does the economic impact of tourism, leading to a gradual and growing dependency on tourism activity, which is not then in tune with the cultural norms and values of the host population. Further, to subsequently then influence its development through their ability to influence tourist demand and thus tourist numbers for any particular destination; as such they have a strong negotiating position and potential to play off one destination against another. A position which is certainly aided by their role as major players in destination access and thus transportation, whether through their own operations or secondary suppliers, which also involves issues of sustainability (see Chapter 8).
It is in recognition of the major initiative to promote SSCM, and specific to this chapter, that the focus on tourism enterprises rests largely on TOs. This is not to imply that the study’s tourism enterprises are being ignored here or that SSCM is not applicable to them. But they are more in the background whilst they are also part of the supply chain in some cases, e.g. coach-based tours; and as a supplier of tourism products and services they should also be addressing SSCM. Second, and perhaps the more significant, is that comparatively few of the researched enterprises have the capacity to be considered as potential suppliers by most TOs. Furthermore, even when one considers the increasing number of people seeking to make their own travel and accommodation arrangements for their trips, TOs still ‘play a key role in directing tourism flows and coordinating supply chains, especially in the mainstream market’ (Mosselaer et al., 2012, p. 71). Yet in comparison with research involving hotels or transportation TOs have received little such attention (see Tepelus, 2005). This is perhaps surprising given their international scope and the fact that their products not only involve other major elements (e.g. transportation, hotels) but also that they are in the position to influence those suppliers as well as fitting the main dimensions of SSCM, which as presented by Manente et al. (1998) are:
• awareness of variety and complementarity of tourism attractions;
• creation of tourism products through integration/linkages;
• promotion of unique images; and
• strategies that are based on co-operation and synergy.
It is within this context that we can establish most pertinently the perceived ills attributed to tourism development, the negative impacts which are invariably noted in the context of destinations that are long haul flights from Europe/USA – the more exotic or romantic – that are far more likely to involve large enterprises. As such the enterprises portrayed in this study might well be considered as having very little to do with such problems. Even so, they are being encouraged to adopt ‘best practice’ as their national and international counterparts. The chapter thus brings to attention many of the aspects involved in addressing sustainability that were explored in the research and addressed in the following chapters. Thus the attention in these pages is on what SSCM involves, including consideration of potential influence on destinations and development, and its applicability/adoption primarily by TOs. Prior to this and by way of illustrating that SSCM is applicable to all tourism enterprises discussion first draws on those findings from the study to be most pertinent here, when considered in the context of other chapters (mainly Chapter 6), namely the purchasing patterns and practices of the enterprises in the study.
Overview of SSCM
SSCM is not a recent initiative, gaining considered attention in the 1990s though more in the context of general business, which led to recognition that much more could be done. As Welford et al. (1999) argued there is a need for closer links between supply and demand and integration in suppliers. Projects were designed to encourage and promote good environmental practice on the part of suppliers, for example, ‘The Green Supply Chain Network’ and ‘Project Acorn’ both of which included in their aims a focus on SMEs (EC, 2000). It was at this time that SSCM came to be recognized by the World Tourism Organization (WTO), who in partnership with other agencies such as the United Nations Environment Programme (UNEP) and UNESCO, led the establishment of the Tour Operators Initiative (TOI) in 2000 and the promotion of SSCM under the umbrella of CSR since 2001 (Gordon, 2002). By 2004 it had 23 members worldwide though the majority are based in Europe. The first iteration of this introduced SSCM and included indicators to facilitate reporting by TOs and comparability between TOs (it also advocated raising consumer awareness of sustainability) (see Tables 3.1 and 3.2). This is far more comprehensive than solely SSCM. Essentially it is a framework for all aspects of sustainability seen to be applicable to TOs and thus encompasses CSR (see Chapter 4) and EMS (see Chapter 5). This development coincides with the Association of Independent Tour Operators’ ‘Responsible Tourism Guidelines’ established in 2001. As the then Chairman argued, the organization realises that members need to recognize and address their responsibilities and concern for the environment, thus the promotion of conservation, minimizing of pollution and respect for local culture (Miles, 2001). On such a basis one may well ask what have they been doing previously given this was first highlighted in the 1960s! It is also another ecolabel and, according to Goodwin, accredited members therefore are seen to be meeting ‘globally recognized corporate sustainable development standards’ (Goodwin, 2005, p. 1). That such promotion and guidance is seen to be necessary is well conveyed in Tearfund’s (2002, p. 5) report:
With few notable exceptions, tourism has been one of the slowest industries to adopt corporate social responsibility practices. Research in 2001 by Tearfund revealed that of 65 tour companies, only half has responsible tourism policies – many of these were so brief as to be virtually meaningless.
Table 3.1. Locating SSCM in the context of business operations. (Adapted from GRI, 2002, pp. 10–16.)
| Business operations | Areas encompassed |
|---|---|
| Product management and development | Includes actions related to the choice of the destination as well as the type of services to be included (e.g. the use of train versus plane) (nine indicators) |
| Internal management | Labour practices; health and safety; training and education; materials; waste; reflects all the operations and activities that take place in the headquarters or country offices (e.g. use of office supplies, production brochures, direct employment) (nine indicators) |
| Sub-division of Internal management | Criteria |
| Internal operations management | Building design and construction services; building materials, suppliers; real estate agents and rental services |
| Obtaining office space | Water supply and waste water disposal services; energy suppliers; waste disposal services; |
| Daily business processes | Telecommunication and IT services; suppliers of office equipment, furniture, paper and other supplies; cleaning services; catering services; gardening/landscape services; couriers; vehicle renting and parking services; management and financial consultants; PR and communication agencies; financial institutions |
| Supply chain management | Addresses actions related to the selection and contracting of service providers (16 indicators) |
| Customer relations | Summarizes the actions taken to deal with customers, not only with regards to the responsibility to serve them and reply to their comments, but also the opportunity to provide information and raise consumer awareness regarding sustainability (seven indicators) |
| Co-operation with destinations | Partnerships; community development; philanthropy and charitable donations: includes all activities and decisions related to destinations that tour operators make beyond the production and delivery of their holiday packages. This mainly includes efforts made by tour operators to engage in dialogues with destination operators about the impacts of tour packages, and philanthropic activities (six indicators) |
Table 3.2. Indicators for supply chain management. (Adapted from GRI, 2002, pp. 12–14.)
| Indicator | Description |
|---|---|
| 1 | Describe the supply |