Can the private sector mainstream pro-poor tourism?

Businesses run tourism, from micro-enterprises to multinational companies. How companies conduct their business influences how far poor people benefit from tourism.

How hotels procure supplies and labour, how tour operators contract hotels, what kind of excursions they offer and what information they give to guests - all these actions influence how far tourism is pro-poor. The biggest challenge is to 'mainstream' pro-poor tourism so that it is a business approach across the industry, rather than a niche market (as ecotourism or community-based tourism are). How can tourism operators and businesses achieve this?

International tour operators

The idea that international tour operators should influence customers and organisations to help alleviate poverty in tourism destinations is relatively new. However, consumer expectations are changing. While customers are reluctant to compromise their holiday enjoyment, many now expect tour operators to manage pro-poor issues on their behalf. First Choice's research showed that 30 percent of overseas holidaymakers are 'concerned' about the impact of their stay on the destination.

UK tour operators have paid more attention to sustainable tourism practices over the last five years. Although 'sustainability' is a broad term, recent initiatives include a specific focus on local economic impacts. Members of the Federation of Tour Operators signed a Sustainable Tourism commitment in 2004. Furthermore, they are finalising a Supplier Handbook on sustainability for their accommodation providers, encouraging the use of local supplies.

Some tour operators are also changing their working practices. For example, First Choice task destination managers to source excursions that specifically benefit local people and the environment. The popular Outback Safaris tour of rural areas in the Dominican Republic employs 55 local people. Other villagers benefit from fees for visits to their homes or fields, the sale of products, medical assistance from Outback Safaris and tourist donations to local charities.

Hotels

Hoteliers can benefit local employees through training, promotion and fair working conditions and benefits. Strengthening other linkages can support local economies further, including:

• more local procurement, such as laundry and security services, soft furnishings and food
• providing advice and support for local tourism enterprises including guides, dancers and artists
• encouraging guests to spend more locally by collaborating in neighbourhood upgrading projects and providing information on taxis, entertainment venues and local charities.

Organisations must become pro-poor in their daily operations, rather than providing occasional 'add-ons'. To be sustainable in the long term, initiatives should meet the commercial objectives of an organisation. Stormsriver Adventures in South Africa, for example, prioritises training for local tour guides and uses local food suppliers, creating high customer satisfaction and greater support for the business locally.

The benefits to local economic development from pro-poor private sector behaviour are considerable: a cash injection plus new markets, ideas, partnerships and multipliers. Certain policies can support this:

• Pro-poor business behaviour can generate long term commercial gain for companies, but often with short to medium term implementation costs. Governments can help carry the burden of these costs through local investment and facilitation.
• Boosting pro poor impact is about how to use the 'core competencies' of tourism business - their marketing and procurement power, and their influence on tourist behaviour - not just donations. This is an approach, even a mentality, that can be applied throughout the tourism chain.

Caroline Ashley
Research Associate (in Tunis), Tourism Programme, Overseas Development Institute, 111 Westminster Bridge Road, London SE1 5JD, UK
T/F +216 71 982 935
c.ashley@odi.org.uk
www.odi.org.uk/propoortourism
www.propoortourism.org.uk

Jane Ashton
Head of Corporate Social Responsibility, First Choice Holidays PLC - Mainstream Sector
First Choice House, London Road, Crawley, West Sussex RH10 9GX, UK
T +44 (0)1293 588851
Jane.Ashton@firstchoice.co.uk
www.fcenvironmentandpeople.com/fcenviro
www.firstchoiceholidaysplc.com/firstchoice

See also

Pro-Poor Tourism Pilots in Southern Africa (2002-2005)
www.pptpilot.org.za

Views expressed on these pages are not necessarily those of DFID, IDS, id21 or other contributing institutions. Copyright remains with the original authors but (unless stated otherwise) any article may be copied or quoted without restriction, provided both source (id21, insights) and authors are properly acknowledged and informed. Copyright © 2006 id21. All rights reserved.