MAIN PAGE | EVENTS & PROGRAMS | 2001 | IGM | SPEECHES | DEREK HOOD
PACIFIC BASIN ECONOMIC COUNCIL
MAIN PAGE | EVENTS & PROGRAMS | 2001 | IGM | SPEECHES | DEREK HOOD
Regional Vitality in the 21st Century
April 6-10, 2001 — Tokyo, Japan
Mr. Derek Hood
Good afternoon, thank you for the opportunity to join you today in the PBEC 34th International General Meeting and offer some comments about tourism. Tourism has evolved in a variety of ways in most countries of the world. Today, tourism is big business, it creates many jobs, cuts across numerous sectors of the economy and of society and earns valuable foreign exchange. PBEC indicates that in the Pacific tourism provides more than 100 million jobs and generates approximately US $ 400 million in export earnings. The World Travel and Tourism Council estimates that by 2005 tourism will be a US $ 7.2 trillion industry providing about 338 million jobs. The ability to liberalize barriers, enhance competitiveness, and increase tourism capacity in a sustainable manner, which are the subjects on which I have been asked to comment, are vital to the tourism industry. There are five areas which, if the restrictions were eased or removed, would have an immediate positive impact on tourism: 1. Visas: The visa application process is all too often a nuisance, time consuming and sometimes expensive. An objective review of its necessity for visitors and the usefulness of exit visas where required would lessen this obstacle to travel. 2. Currency Restrictions: A regulation that limits the amount of money available for travel negatively impacts individuals' ability to travel and the potential length of their trip. 3. Aviation Bilaterals: Bilaterals that restrict an airlines ability to increase capacity on designated routes between countries can be a major inhibitor to expanded travel. This is an area in which the tourism industry must determine how they can become involved and exert influence. The impact of an aviation bilateral on tourism is seldom considered a priority during the negotiations between governments. An example of how this negatively impacts tourism occurs here in Japan. Aviation Bilaterals in Japan have been negotiated from a single runway at Narita for more than twenty years. I acknowledge there are many issues to be considered before being overly critical but the very restrictive approach that Japan has pursued has made it extremely difficult to obtain approval for either more flights or additional carriers to operate into Japan. The gradual increase in capacity that has been permitted over the years has resulted in corresponding increases in overseas travel by Japanese tourists and visitors to Japan. The "Open Skies" policies in North America, which was first introduced in the mid 1970's, has resulted in some challenging issues. Nevertheless, it certainly has resulted in increased numbers of business travellers, people visiting friends and relatives and significant volumes of tourists. Clearly, increased air capacity usually results in increased volumes of travellers. 4. Airport Facilities: Airport facilities are a major factor in the growth of tourism. Experienced travellers and tour planners consciously avoid some airports if the facilities are poor or processing time is unreasonably long. The pressure will increase on these facilities as aircraft manufacturers build the next generation of jumbo aircraft. There are numerous examples in the world where state of the art air terminals designed for efficiency and customer appeal are marketed effectively with good commercial results. Hong Kong, Singapore and Vancouver are three of several success stories in the Pacific. Mercifully, we seem to have left behind the era that mandated all airline terminals must be intimidating, boring and inefficient too soon after they were opened. 5. Government "CIQ": Customs, Immigration and Quarantine. Some travellers first impression of a country is often an interface with Customs or Immigration. This experience, good or bad, can last a life time. There appears to be a growing awareness amongst government officials of the importance of these roles and increasingly we are seeing well trained and motivated officials in these positions. Well planned training programs offered on an ongoing basis are vital for all personnel who interact with visiting tourists. At the same time there are still some very outdated processes being used in the world to clear passengers through government formalities which could be modified. In this age of technology, it is possible to clear a passenger at the point of origin rather than require them to stand in line at the destination. For example personal ID from something as small as a credit card could be transmitted to the authorities at the destination during the time check in. Subsequently the authorities have ample time, while the traveller is en route, to determine if secondary inspection is required on arrival at the destination. Some would argue that the wait for one's baggage would appear even longer if there was only one lineup - perhaps even baggage delivery could be speeded up also. The pressure to grow and be able to offer expanded facilities at airports is very strong and it is interesting to note that in many countries governments have removed themselves from managing airport terminals. Increasingly there are examples of the private sector either owning and/or managing airports. This transition has not been without its challenges and lessons learned but I suggest that there is a concept here that has applicability elsewhere in the tourism industry. Lastly in this area of what I would call "Human Made" inhibitors to travel and tourism is the price a potential traveller is required to pay. Artificial restrictions generally result in higher prices which in turn will result in fewer travellers and less tourism. Reasonable access to a market for suppliers whether it is an airline, hotel or other hosting facility will generally ensure that the customer will be offered the most competitive price available. In most instances either government or industry has the ability to adjust or eliminate any of these barriers to tourism. Political will or rational review of the issues could remove the restrictions which would result in increased tourism. It is recognised that where bilateral or sometimes trilateral negotiation is necessary the process is more complicated but the objective is often the same for all of the affected countries. The tourism industry has a role and a responsibility to ensure that the interested parties understand the importance of the issues and the impact of restrictions. When we consider how to enhance competitiveness in the tourism industry, which is my next topic, it is apparent the issues are complex and cooperation at all levels in the private sector and in government is essential. I expect I am preaching to the converted by making the statement that removal of artificial barriers in the tourism industry will result in a more competitive environment in areas where there is a realistic supply of a product available. But increasingly, tourism is focussing on areas where resources are limited or threatened and the traditional approach of removing artificial barriers clearly is not the responsible route to pursue. This area represents the biggest challenge for the tourism industry, government and private sectors, and for the most part these are still unchartered waters. The environment in which tourism interacts is broad in scope. It includes not only the natural environment - Land - Air - Water - Flora and Fauna, but also manmade changes in the environment including - History - Culture - Heritage. We do not have sufficient time in this forum today to delineate how tourism might be enhanced in each of these areas. But we do need to attempt to understand how a competitive environment can be assured as tourists wish to interact with - Ecosystems - Wildlife - Archeological discoveries - Climate - Culture. In order to enhance competitiveness we need to ensure that the views of the stakeholders in all of these areas are appropriately represented. This is important because nature, ecology and outdoor activity have become the buzz words in today's tour operator's and tourist's itineraries. A report prepared for the Commission for Environmental Cooperation in North America indicates that while tourism has been growing at around four per cent between 40 and 60 per cent of international visitors now travel to enjoy and appreciate nature. The interests and expectation of customers' in today's tourism industry are changing. Tourists from North America, Japan and Europe are extremely conscious of their holiday environment. They are demanding that the destinations they visit are environmentally friendly to their standards, which is much higher than the previous era. At the same time we see the burgeoning numbers from the emerging markets who, at this point, are interested in visiting the traditional icons and may not be as sensitive to the environmental issues as the repeat or a more sophisticated traveller. This new market is, however, significantly contributing to the revenue generated through tourism. It is also worth noting that experienced travellers are willing to consider a return visit to a destination if it meets the new environmental criterion. The expectations of the Japanese are also changing. In Japan, despite the economic issues facing the country, the number of Japanese who travel abroad has continued to rise. More than 18 million Japanese are expected to travel outside Japan this year; the growth is driven by the 50 plus age group. Also, in 2000 for the first time, the number of women exceeded the number of men who travelled abroad. The Japanese tourists are interested in "participation in nature", not simply passive sightseeing, in addition to culture and history. Hiking is very popular, there are 20 million Japanese who belong to hiking clubs in this country. They are knowledgeable, anxious to understand and observe the local etiquette and regulations, they are very genki...and invariably the best dressed hikers on the trail. Coincident with the pressure to change we also have significant challenges within our industry which must me dealt with as we endeavour to meet the customer's expectation.... Richard Leakey a paleontologist and director of the National Museum of Kenya supports a different approach. Mr Leakey suggest that "...the goal of environmental preservation would be better served if wildlife and wilderness were placed off limits to holiday makers....such areas would be better off if holiday makers watched nature on TV instead of going to visit it." This tourism industry, perhaps more so than many others, has its enthusiasts who are ideologically poles apart. The major issues and opportunities facing the tourism industry have become more clearly defined and understood by all the stakeholders. Competition will generally be enhanced if the participants can function in an environment with as few restrictions as feasible. Growth in a sustainable manner or "Sustainable Tourism" is the focus of a great deal of attention. The topic is increasingly discussed and recorded and I have drawn extensively on this material for the final points I wish to make. The term Sustainable Tourism has gained respect and understanding in the industry and with government. It is difficult to provide a universally accepted definition but there appears to be a consensus that sustainable tourism development is dependent on polices which include the harmonious relationships with -
The concept of sustainability as a resource development and management philosophy is permeating all levels of policy and practise relating to tourism. There are five key elements for tourism sustainability
We also need to recognize the importance of indigenous cultures and the benefits that are derived from cultural exchanges which are part of the tourism experience. These experiences enjoyed by young and old shape the attitudes and understanding between races and nations which last for many years. Japan, perhaps more so than any other country, has lead the world by example and enthusiasm with its support of the sister city programs which it has introduced to both Western and Asian countries Within the concept of sustainable tourism development there is increasing recognition that sustainable management of resources will lead to acceptable conservation and development of a higher quality tourism product. The challenge is to find an acceptable balance among these elements. An example of balance is the self regulation that has emerged in many countries who provide whale watching products for tourists. All of the interested participants voluntarily work together to preserve the integrity of the product. The number of boats, distance from the whales, noise levels and other potentially damaging issues are identified and self regulated. Where realistic, this approach is by far the most satisfactory. PATA's "Code for Environmentally Responsible Tourism" defines sustainable tourism as : "Recognizes the necessity to ensure a sustainable future, meets the needs of the tourism industry today, and does not compromise the ability of this and future generations." This will only be successful if the business community can earn a profit in its commitment to sustainable tourism development. The policy question often raised is can sustainable tourism be economically viable for private companies and local communities while also being sensitive to environmental, cultural and social needs. Government and the private sector often have difficulty defining the economics of protecting the environment and assigning values to protected resources. An example of the difficulty this issue presents is in countries who rely heavily on the revenue generated from logging. I would suggest progress has been made in this area but we are far from enjoying a consensus that all interested parties are satisfied their views have been addressed. Overall the objective is to have an environmentally and culturally sustainable tourism development program that will allow;
A measurement that is increasingly offered in the overall context of a countries attractiveness to tourism is the Environmental Sustainability Index. "The ESI permits cross-national comparisons of environmental progress in a systematic and quantitative fashion." I acknowledge that those of us in the business of promoting our countries are prone to boast where possible but please allow me one commercial message and share with you the results of this index. The top three of the 122 countries in the world measured for the Environmental Sustainability Index are: Finland, Norway and Canada - in that order. Other PBEC countries who scored well were New Zealand - 6th, Australia 7th and the U.S. - 11th ; the other bit of good news is there were no countries represented in PBEC who ranked in the bottom ten. It is unlikely that the varied interests and the broad spectrum that constitute the tourism industry and the subsequent pressures they generate will be modified. History has demonstrated how this reality makes change a slow process. One of our major challenges is to draw on the strength these diverse views embody rather than let them divide us. The tourism industry's ability to exert influence on policy matters with government and work with the private sector to ensure fair representation is essential. We are encouraged that it is apparent increased energy and attention from both government and the private sectors is being directed at the issues which we are confident will be resolved. Your interest and support as leaders in your respective fields is certainly welcome. Let me leave you with one last thought which would indicate the environmental issues facing us today in fact are not new but have been with us for some time : Ancient Proverb: "We have not inherited the Earth from our ancestors. We have only borrowed it from our children." |
![[ Regional Vitality in the 21st Century ]](../logo128.jpg){kind=logo}