Posts Tagged ‘tourism communities’
NZx: the art of inspiration/leadership
Morena
For this months blog we thought we would look at the art of inspiration/leadership in the visitor sector.
This thinking came to our front of mind last week when we dined out in a tourism focused town. As the only diners that night we received adequate service, but no more. This is in sharp contrast to the situation we encountered while filling up the car with petrol on the West Coast last year. In this case the attendant thanked us for choosing to use their service station and spend our money with them, as opposed to someone else.
After our dining experience I reflected on what was a lost opportunity for the hospitality business. My view is that any business echos the leadership and inspirational traits of it’s leaders.
Over the years I have been lucky enough to have worked with some amazing and inspiring leaders. One thing they all had in common was that they showed some or all of the traits noted below, and in some cases more.
Of course there have been a number of leaders that didn’t reflect these traits, their leadership style is probably best summed up in this link
The future challenge for managers/mentors/team leaders across the visitor sector will be ensuring they implement these traits (and others) as our borders open up. Do you inspire/lead/mentor using these building blocks?
Thanks to Vala Afshar from Salesforce for the prompt!
Ka kite ano
NZx: the yellow brick road
Nau mai
This month we consider progress on NZ Inc’s drive towards sustainability.
One of the key drivers of wider sustainability goals is Tourism Aotearoa. Their most recent goals focus on four aspects: Visitor – Deliver outstanding visitor experiences Community – New Zealanders are welcoming hosts Environment – Aotearoa is enhanced by tourism Economic – Grow tourism’s contribution to New Zealand’s economy
“Since its release 18 months ago of the New Zealand Tourism Sustainability Commitment, now has more than 1000 tourism businesses signed up. Last year TIA and six other New Zealand organisations launched Tiaki – Care for New Zealand, an initiative that actively encourages international and domestic travellers to act as guardians of Aotearoa.”
Of course Tourism Aotearoa champions these achievements. However a close look at their performance suggests there is still a long way to go with the goal of minimizing tourism’s environmental footprint falling by 7%. Smaller falls are recorded in sustainable growth and community satisfaction. Overall the tourism industry’s scorecard sits at 8.1, well short of the 9.4 goal for 2025.
A quick look at the Ministry of Environments, Environment Aotearoa 2019, is sad reading. Key findings include:
Issue 1: Our native plants, animals, and ecosystems are under threat Issue 2: Changes to the vegetation on our land are degrading the soil and water Issue 3: Urban growth is reducing versatile land and native biodiversity Issue 4: Our waterways are polluted in farming areas Issue 5: Our environment is polluted in urban areas Issue 6: Taking water changes flows which affects our freshwater ecosystems Issue 7: The way we fish is affecting the health of our ocean environment Issue 8: New Zealand has high greenhouse gas emissions per person Issue 9: Climate change is already affecting Aotearoa New Zealand
And then we need to consider the this years UN Report. Its short and blunt stating “the most comprehensive and rigorous assessment on the state of the environment completed by the UN in the last five years has been published , warning that damage to the planet is so dire that people’s health will be increasingly threatened unless urgent action is taken.
The report, which was produced by 250 scientists and experts from more than 70 countries, says that either we drastically scale up environmental protections, or cities and regions in Asia, the Middle East and Africa could see millions of premature deaths by mid-century. It also warns that pollutants in our freshwater systems will see anti-microbial resistance become a major cause of death by 2050 and endocrine disruptors impact male and female fertility, as well as child neurodevelopment.
We could go on…..the point is we have all been here before. These issues are not new they have all been raised before, in fact since the late 1990’s.
New Zealand’s tourism industry was a world leader in the late 1990’s with the introduction of Green Globe 21, an environmental programme based on certified continual environment improvement. That was until political interference in the shape of Tourism New Zealand’s Qualmark programme, and poor leadership from Tourism Aotearoa’s predecessor (TIANZ) sunk this initiative.
Check this report out from 2004 in which Lincoln University questions:
How Clean and Green is New Zealand Tourism? Lifecycle and Future Environmental Impacts.
We have a lot to do and not a lot of time in which to do achieve real gains.
Nga mihi
Malcolm
NZx: June 30th cathedral thinking
Ata mārie
As we discussed in last months blog the Government has now moved on introducing a proposed visitor levy.
There may not be much debate that such a solution is needed with international visitor arrivals hitting 3.7m last year, and forecast to top 5m by 2024, almost twice the number we welcomed in 2012.
As many of us are aware, such growth has resulted in congested roads, overcrowding at popular destinations, and overloaded sewage and water systems, all putting pressure on local council budgets.
The tourism industry argues that tourism raises (through GST) around $1.47 billion annually. The predicted income from the levy is not a lot (around $ 57-80 million a year) and is certainly a lot less than the likely investment required to fix issues of around $ 150 million annually.
The issue gets further muddied with a recent report suggesting that on one hand the Government profits to the tune of $2.6b annually, while on the other some local authorities in tourism struggle to maintain essential services to ratepayers and visitors alike.
The muddy waters become even more turbid with bed tax proposals being supported by some large Councils. However these do not appear to be gaining Government support at either local or national levels. This potential source of funds may be resolved later this year when the Productivity Commission reports back on options for local government funding.
The key points of the current visitor levy proposal include:
* Most international visitors entering New Zealand for 12 months or less would be charged a levy, proposed to be between $25 to $35
* There would be some exemptions, most notably Australian citizens and permanent residents and people from most Pacific Island Forum countries
* The levy would be collected through visa fees and via the proposed Electronic Travel Authority process, also under consultation, for citizens of visa waiver countries
* The levy would collect around $57-80 million in its first year, depending on the rate, which will be split between tourism infrastructure and conservation activity.
The consultation on the International Visitor Conservation and Tourism Levy is open until July 15th . As an aside related consultation on the Electronic Travel Authority and fees and levies proposals are also open, find out about both at MBIE.
It is likely that the proposed levy will come into effect in November.
In our view the levy is somewhat of a smokescreen. The tourism industry more than pays its way through GST and other fees. The $ 2.6 billion raised in this manner could easily be redistributed to fund infrastructure and development needs without the need for a levy or bed taxes.
It’s about cathedral thinking, something that successful governments have failed to build on with the visitor industry.
Decisions should be made now by the Government to invest monies raised by international visitors to facilitate the sustainable future of Aotearoa, particularly in the infrastructure and conservation fields.
Mā te wā
NZx: May 29th – a taxing question
Naumai
If you’re are linked into tourism, in any form, you will be aware that there are a number of key issues facing the industry ahead of increasing visitor numbers. There have been many calls for increased funding for the sector, both at national and regional levels, to address infrastructure and conservation related issues arising from tourism.
Good summaries of the issue can be found here and here.
Currently international tourism remains New Zealand’s largest export earner and it was responsible for a fifth of earnings from all exports of goods and services. Tourism accounted for 5.6 per cent of gross domestic product (GDP) and directly employs 230,793 people or 8.4 percent of the workforce. Currently the Government receives $1.5b in GST from international visitors, with a further $1.8b collected from domestic visitors.
The tourism leaders report (2016) suggests a National Tourism Infrastructure Levy be created comprising of a 2% national bed levy across the accommodation sector and a $5 increase to the border levy which would raise $65 million per annum from the industry.
Treasury’s view on any new tax is not supportive suggesting “that (there is no evidence) a border or bed tax meets the burden of proof for departing from BBLR (broad-base low-rate) principles”.
The latest in a myriad of comments on the tax issue come from Minister of Tourism, Kelvin Davis, who while at TRENZ, was forthright in saying the future is in a “levy on international visitors”.
Of course whichever side of the debate you support, the issue becomes more complex with TLA’s pushing and in some cases implementing “bed” tax. Currently Auckland, Wellington, Queenstown , Dunedin and Hawkes Bay are all pushing for, discussing, or in Auckland’s case legislating for, such a tax.
At the time of writing Rakiura/Stewart Island is the only destination to use a similar mechanism (visitor levy fee) although other entities such as Milford Sound Development Authority include a levy in all passenger cruise fees.
The key ingredient missing in the discussion is the major risk of an uncoordinated approach to fixing both infrastructure and conservation based issues. We have previously discussed the risks to tourism of uncoordinated approaches to sustainability and a social license to operate.
One thing a visitor (international or domestic) does not need is an arrival levy/tax and then varying provincial “bed” taxes – none of which are either consistent, efficient to administer or designed to solve the myriad of different issues specific to different places that make up New Zealand/Aotearoa.
Ka kite ano
NZx: March 22nd – southern road trip
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 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
NZx: November 26th Sustainable tourism
Naumai
It was heartening, if with a strong sense of deja vu, to see the tourism industry (re) start a process to ensure economic, environmental, host community, and visitor satisfaction and engagement, drive the future of sustainable tourism in New Zealand.
We have of course been here before with initiatives such as Green Globe and Environmental Plans. These initiatives, while driven locally, had a global context and more importantly measured success towards publicly stated goals. Poor decision making and lack of integration resulted in a lost opportunity for the industry and the weakly positioned environmental initiative in the form of the original Qualmark.
You can read more about this current sustainable tourism initiative here: http://sustainabletourism.nz/assets/Uploads/FINAL-TIA-SUSTAINABILITY-BOOK-17.0-web-spreads.pdf
In a sense there’s nothing really new here. The approach is the industry’s response to rapid growth, increasing public concerns about international visitor numbers, effects of tourism on local communities and the environment and ensuring tourism businesses are economically successful. All sensible and admirable goals – if not a little overdue.
Over the years such initiatives have been met with initial support, particularly amongst the larger tourism entities – check out the current list of supporters here. Many other entities will undoubtedly sign up, driven by a mixture of opportunity, marketing push/pull, desire to stay ahead of the pack and some through genuine commitment.
As Fonterra has found their nearly tw0 year old public relations campaign has meet with mixed reaction. Some see through it as typical pr speak , while others believe it has a role to play in ensuring the dairy industries future in an increasingly skeptical New Zealand.
While not suggesting the campaign is no more than tourism’s version of pr speak it will take more than this initiative to make a difference. More needs to be done with both Central Government and Local Government to ensure all parties commitments are in alignment.
Of course it is local communities that drive a lot of input into both forms of Government. We have previously commented on tourism social license to operate in previous blogs.
The 14 commitments are big on the right words but light on measuring and reporting on success, other than financial.
Hopefully this tourism initiative will be both sustainable, wide reaching and effective!
Ka kite ano
Cruising Piopiotahi /Milford Sound
NZx – September 30th : how to boost your social license to operate
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:
- Economic: yielding inclusive growth;
- Social: bringing decent jobs and empowering communities;
- Environmental: preserving and enriching the environment and addressing climate change;
- Cultural: celebrating and preserving diversity, identity, and tangible and intangible culture, and
- 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
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:
Ka kite ano
Just what is tourism’s social license to operate in NZ?
NZx – June 29th: water, water everywhere…..
Naumai
Water, water everywhere so whats the issue…….?
A recent visit to Waireinga/Bridal Veil Falls, revealed a deeply discoloured waterway, with warning signs about the quality of the water, and danger to swimmers. Standing in the midst of 217 ha Wairēinga Scenic Reserve, surrounded by tawa-dominated forest, watching the water flow over 55 metres basalt cliffs, one wonders how this could happen in New Zealand.
There is good work being done in parts of the catchment. Over 8kms of native planting in an area upstream of the waterfall has been completed as part of a local initiative coordinated by Whaingaroa Harbour Care.
Water is already to be established as a key component of this years elections. A recent survey by Lincoln University (8th Public Perceptions of New Zealand’s Environment) canvassed New Zealander’s views about aspects of the environment .
The worst managed environments were perceived to be rivers, lakes, and groundwater, largely on account of very negative perceptions concerning the management of farm effluent and runoff. In fact, nearly 60 percent of respondents deemed farming to be one of the three main causes of damage to freshwater.
In a separate report, Our fresh water environment 2017, found nearly three quarters of native freshwater fish species are threatened by or at risk of extinction, as well as a third of native freshwater invertebrates and a third of native freshwater plants.
All of these reports raise the current issues, but also note the lack of data, and that the snapshot doesn’t take into account the slow movement through aquifers – such as those in Canterbury. The real impact on communities in these area may take many years to surface.
Both New Zealand’s leading export industries, tourism and farming, need to better manage their social license to operate in the environmental space. Water quality, the wider environment and sustainability are discussions (and subsequent actions) that need to form a key part of the this years conversations.
Ka kite ano
Waireinga/Bridal Veil Falls
NZx – May 30th: alternative facts
Naumai
The recent public debate (which is full of alternative facts) about Auckland’s proposed bed tax highlights the gaps between local and central government funding, and the lack of understanding as to how tourism adds benefits and costs to all aspects of the New Zealand economy.
Many people have a view on the tax but only a few reflect the facts. Tourism Industry Aotearoa, Chief Executive Chris Roberts says the commercial accommodation sector receives just 9% of the total visitor spend in Auckland source (Ministry of Business Innovation and Employment).
“The original targeted rate proposal was for 330 commercial property owners to pay the full cost of Council tourism and event promotion. The cost of that promotion is currently shared by every ratepayer in Auckland, residential and commercial.
“It is still not the fair share that Mayor Goff repeatedly talks about. The small targeted group receives around 7-8% of the total visitor spend in Auckland, and yet is being asked to pay 50% of promotion and event support.”
We note that in 2014 international and domestic visitors spent $ 66 million per day in New Zealand communities. Thats a fact.
Shamubeel Eaqub also believes the plan offers no clear alignment between costs and benefit. You can read his original article here http://www.stuff.co.nz/business/opinion-analysis/93272191/shamubeel-eaqub-bed-tax-reveals-local-government-flaws
With 2017 being an election year , one assumes there will soon be a large amount of alternative facts in circulation. Tourism will need to make sure it’s voice is united, clear and more importantly heard.
Ka kite ano 