Posts Tagged ‘social license’

NZx: March 22nd – southern road trip

Thursday, March 22, 2018
posted by malcolm

Naumai

It is always a privilege to “share” Aotearoa / New Zealand. It matters little if the audience is domestic or international , hitting the road to explore our place in the world is one of life’s pleasures.

This summer was however different. Tasked with sharing the southern part of the South Island with a group of international visitors (including over the Chinese New Year period) I reflected on what one might find.

Reading and listening to media headlines I was expecting a constant stream of polluting freedom campers, over priced food and lodging, little space, tired operators, and people literally everywhere – even in my normally quiet haunts and secluded places!

The trip took in every destination and more, between Christchurch and Bluff via the Catlins, Manapouri, Te Anau Queenstown and Wanaka.

So summing up the trip was a great success, we achieved most things we promised our visitors and more. We saw rare and endangered wildlife, meet some fantastic locals, enjoyed great food and wine and the whole gambit of southern landscapes.

That of course is the official version.

My overwhelming impression after ten days on the road in the southern South Island, is of too many people in too many locations. I mean literally no one used to go to Slope Point (the most southern point of mainland NZ) , a full car park at Bluff mid afternoon (great views) and absolutely no where to turn in Wanaka around 4pm.

I am apprehensive when I hear local operators saying that bookings for next year re even higher than this summer, in one case up to a third. What does that mean for tourism’s social license to operate?

Here are some facts:   

The number of international visitors coming into NZ averages over 320,000 a month                                                          

This is an average yearly growth of over 5.65  for the last ten years                                                                                             

More than one in ten jobs is indirectly generated by tourism                                                                                            

International visitors contribute $ 40 million per day to the economy

And some views (2017) of international visitors  on their NZx:             
                                                                                 
nine out of ten international visitors are highly satisfied with their NZx
94% of their expectations are met or exceeded by their NZx
98% believe natural landscapes and scenery are the top motivators to visit

 

And New Zealander’s (2017)  views on tourism             

96% of us agree tourism is good for NZ                                                    35% think tourism puts too much pressure on NZ                                       21%  think there are too many visitors                                                                                   

Challenges for NZ’s around international visitors include: road congestion, litter and a high risk of motor accidents

In earlier blogs we have discussed the opportunities and challenges for tourism in maintaining and enhancing a social license to operate. Some initiatives such as Tourism Aotearoa’s sustainable tourism are small step in the right direction. But if this years southern experience on the road is next years reality, then we have a serious problem – with no coordinated response in sight.

Ka kite ano

 

       Visitors on the beach – Moeraki Boulders

 

Naumai

Last month we looked at some views on why NZ tourism needs to develop it’s social license to operate.

As previously noted, there are many definitions of how to obtain and maintain a  social license to operate. At the micro level it’s about the concept of  a project achieving ongoing approval of the local community and other stakeholders. That may be formal through processes such as the RMA or the DOC concession process or informal such as access agreements.

At the macro level it is how industry sectors work at a national level along similar lines, and particularly how they influence government.

The opportunity to achieve a social license to operate can be seen as an overall outcome. There is no rule book which defines the process, a method, tools or ways to achieve such an outcome.That is both an advantage and disadvantage.

Gavin Shepherd in the Te Awamutu Courier argues, that for the farming sector, “long-term profits on farm are more linked to these social perceptions than efficiency in production or scale at all costs”.

Dan Ormond, formerly partner at Ideas Shop, notes that, along with knowledge of who your market is and its size, “all aspects of engaging with stakeholders and developing sustainable business practices need to be communicated well in order to keep your business’s social license to operate”.

So how do we achieve such a license?

There seems to be general agreement on the following processes:

  • identify key stakeholders (people affected by the project/sector) and continue to review these
  • gain social acceptance based around legal, social,and cultural norms – both formal and informal
  • gain credibility based on accurate and transparent information and importantly delivering on promises and representations that have been given
  • gain trust from the local or national community based on being accountable, collaborative and sharing experiences
  • deliver extensive and wide ranging communications across all channels that integrate all of the above.

In terms of a tourism perspective we note Taleb Rifai, Secretary-General, World Tourism Organization (UNWTO) comments that “globally tourism is today the 3rd largest export industry in the world after chemicals and fuels. Last year alone, 1.235 million travellers crossed international borders in one single year. By 2030, this 1.2 billion will become 1.8 billion”. Globally tourism has sustainable development as a key plank in all its 5 pillars:

  1. Economic: yielding inclusive growth;
  2. Social: bringing decent jobs and empowering communities;
  3. Environmental: preserving and enriching the environment and addressing climate change;
  4. Cultural: celebrating and preserving diversity, identity, and tangible and intangible culture, and
  5. Peace: as an essential prerequisite for development and progress.

As an aside the UN General Assembly declared 2017 as the International Year of Sustainable Tourism for Development. Who knew?

In NZ tourism faces some political issues and community fears. As Professor Chris Ryan noted immediately after the election, all major parties played lip service to developing integrated tourism policy. This remains an ongoing challenge for the industry but should not deter Tourism Aotearoa  Tourism New Zealand local Regional Tourism Organizations and tourism operators doing more in this space.

Regular snapshots of how NZ communities view tourism show a trend towards less acceptance at the current and particularly the projected levels of international tourism.

In summary, achieving and maintaining a social license to operate is a dynamic, long-term, holistic and vitally important process for both key industry sectors and individual operators. The difference being primarily the scale of the input.

As social scientist Kate Brooks states “Any industry, that operates, particularly using common resources like water or land, forests, has to concern themselves with social license to operate issues. It’s like somebody saying I want to come in and use your front yard (for my own profit).”

Ka kite ano

Cruise ship passengers      Whangara Marae

 

 

 

 

NZx – August 22nd: A social license to operate

Monday, August 21, 2017
posted by malcolm

Naumai

Continued growth in New Zealand tourism is raising questions over it’s social license to operate. As Tourism Aotearoa states ” Tourism will only achieve our Tourism 2025 aspirational goal if we maintain and enhance our social licence to operate. We are encouraging tourism operators to recognise the importance of growing their businesses in a way which balances the economic, social and environmental impacts.”

There is no widely accepted definition of a social license to operate (SLO). However a recent paper by the Sustainable Business Council suggests key attributes include:

a.  a measure of confidence and trust society has in business to behave in a legitimate, transparent, accountable and socially acceptable way;
b. it does not derive from a need for legal or regulatory compliance, instead is deemed to be the foundation for enhancing legitimacy and acquiring future     operational certainty, realising opportunities and lowering risk for the business;
c. an unwritten contract between companies and society for companies to acquire acceptance or approval of their business operations;
d. the terms of a SLO are often project or location specific. Although society as a whole ‘issues’ the SLO, it is usually local communities who are the ‘key arbiter’ of     the terms of the SLO due to their proximity to the company’s activities and associated effects;
 
Tourism New Zealand acknowledges the visitor experience “is affected by the New Zealand community’s own view on tourism – the more the community can understand the benefit of a strong tourism sector, the more likely it is to take a positive view on tourism growth. New Zealand is a long-haul, premium-priced destination with a strong, niche appeal in most overseas markets. We rely on positive brand association and word of mouth to make the most of our unique strengths as a destination. Poor visitor experiences will make it harder to compete with other tourism boards for targeted customers.
 
As Chrisopher Luxton, CEO Air New Zealand, recently stated ” The biggest issue the industry faces is its social license to operate.Tourism consumes infrastructure such as transport, accommodation, national parks, and puts particular pressure on places where there are low numbers of residents.  If visitors came to the country and thought it was clean but “broken down” and unable to handle its popularity then they might go home wishing they had gone to Dubrovnik in Croatia to see Game of Thrones sites. “That’s not a place we’d want to be. “If we don’t manage the social and the environmental pieces, the social license to operate as an industry is lost because, frankly, socially Kiwis sit there and say, ‘Yeah, I’m getting jacked off with all these tourists coming through the country and it’s irritating’.”
 
Of course tourism is not the only sector to be involved in this discussion. As Tourism NZ board member Raewyn Idoine says public perceptions of tourism are at a key point and action is needed now so the industry does not go the way of Fonterra. ‘‘Everybody loved farmers until they started polluting streams and rivers and making butter cost too much,’’ she says.  Now Fonterra is funding milk in schools and making expensive PR campaigns with Richie McCaw to improve their image.’’
 
The issues are clear and the current election campaign lightly touches on some of these issues.  At the time of writing no one party has really addressed the potential answers.
 
We will discuss some options to manage tourism’s social license to operate in next month’s post.

Ka kite ano

 

Just what is tourism’s social license to operate in NZ?