Value Chain Tourism

• DEVELOPMENT, DESTINATION
• SECOND TIER SUPPLIERS
• FIRST TIER SUPPLIERS
• TOUR OPERATORS
• TRAVEL AGENCIES
• TOURIST

• • Environmental
    indicators
  • Emissions, effluent and waste

    Intensive transport, particularly by aeroplane, releases large quantities of emissions that are harmful to the climate. Cruise ships, which mostly burn heavy fuel oil without particulate filters, also emit pollutants that are harmful to both the climate and human health. Improper handling of wastewater and waste causes significant environmental pollution in the destinations. Hotels, as well as construction and development projects, often discharge polluted wastewater illegally into natural water bodies, which can have serious health consequences.

  • Resource consumption

    In many tourist destinations, there is a lack of legislation to control or regulate resource consumption. This risk is evident both in the development of tourist destinations and at the level of second- and first-tier suppliers, as well as, ultimately, among tourists at the end of the value chain. Measures to reduce resource consumption, such as through the use of renewable energy, often fail due to a lack of incentives.

  • Biodiversity

    Biodiversity – ranging from animal and plant species to microorganisms and habitats – is particularly under threat at the first stage of the tourism value chain. When tourist destinations are developed, landscapes are often destroyed, causing damage to sensitive ecosystems. This is frequently followed by the over-exploitation of the affected areas.

  • Transport emissions

    Transport emissions in the tourism sector arise primarily from tourists’ journeys to and from their destinations, as well as from their transport whilst at their destination. As transport plays a central role in tourism, the nature and scale of travel have a significant impact on the environmental burden caused by climate-damaging emissions. Cruises, in particular, stand out negatively, as they are almost exclusively focused on transport (see also ‘Emissions, Wastewater and Waste’).

  • Animal welfare

    In the tourism sector, the development of new tourist destinations puts animals at risk, as they often lose their natural habitats. Tourist activities organised by hotel operators or tour companies also pose risks to animals. Attractions such as camel rides in the desert, dolphin shows in hotel swimming pools or elephant rides are hugely popular, but the animals often suffer as a result.

  • Human rights
  • Discrimination

    A key reason for discrimination in the tourism industry lies with the travellers themselves. Organised excursions, which are intended to familiarise tourists with the customs and traditions of the destination country, often disregard privacy and lead to humiliating encounters between travellers and locals. Furthermore, discrimination against staff on the basis of their origin, religion or ethnicity is common – particularly in the sensitive area of second-tier suppliers.

  • The interests of the local community

    When developing new tourist destinations, particularly in developing and emerging economies, land grabbing occurs time and again: local people are driven from their own land to make way for tourism projects. Another serious concern is that scarce, vital resources are being monopolised by second- and first-tier suppliers. This risk is particularly evident when it comes to access to water. Overall, there is a danger that the economic value added will not be generated in the destination countries, but will instead accrue primarily to the tour operators in their home countries.

  • Child labour

    According to the ILO, between 13 and 19 million children and young people under the age of 18 work in the tourism sector. The risk of child labour is particularly high in the service-intensive sector of second- and first-tier suppliers. Furthermore, there is a serious problem at the final stage of the value chain: child prostitution, for which there is also demand from tourists. In regions such as South-East Asia, Eastern Europe and the Caribbean, the risk of child abuse through sex tourism is particularly high.

  • Forced and compulsory labour

    The risk of forced and compulsory labour within the tourism value chain is primarily found in the informal sector amongst second-tier suppliers, particularly during the high season.

  • Freedom of association

    The right to form trade unions is widely regarded as uncontroversial at international level and is enshrined in the laws of many countries. Nevertheless, trade union representation in the tourism sector is often weak. Particularly within large, globally operating hotel chains, in the hospitality sector and amongst suppliers, many companies fail to comply with legal requirements. Freedom of association often remains an empty promise in these sectors.

  • Working practices/
    -quality
  • Employment
    status

    Precarious working conditions in the tourism sector are particularly prevalent in tourist destinations. The hotel and hospitality industries, as well as related service providers, offer many low-paid jobs, often without protection against dismissal, social security cover or high skill requirements. Due to seasonal fluctuations, these jobs demand a great deal of flexibility from employees. Particularly during the peak season, long, irregular working hours – for example at weekends, at night or during the season – low wages and a high risk of unemployment characterise the everyday lives of employees.

  • Health and Safety at Work

    Health and safety risks in the tourism sector arise primarily amongst service-intensive first- and second-tier suppliers. Long working hours due to seasonal work – for example, on cruise ships – and high levels of physical strain, such as those frequently encountered in housekeeping roles within large international hotel chains, increase health risks in the workplace.

  • Discrimination / Diversity

    The tourism sector is predominantly staffed by women: around 55 per cent of employees are female. Management positions, on the other hand, are mostly held by men. There is also a pay gap: on average, women earn 10 to 15 per cent less than their male colleagues for the same work. Shortcomings in social diversity are particularly evident among first-tier suppliers, such as in the hotel and catering sectors.
  • Governance
  • Corruption, bribery, accepting benefits

    Corruption and bribery remain a significant, often hidden risk in the tourism sector. Specific cases and politically sensitive instances of influence-peddling rarely come to light, yet they occur particularly in countries with weak governments – for example, in the sale or leasing of land for the development of new tourist destinations.

  • Anti-competitive behaviour

    Anti-competitive behaviour occurs particularly frequently at the first stage of the tourism value chain. This problem is particularly evident in the awarding of contracts for the development of tourist destinations – and not only in developing and emerging economies. Such practices can harm the interests of the local population, for example when development leads to the displacement of local residents.

  • Compliance

    In the tourism sector, breaches of the law occur primarily in the development of destinations and amongst second-tier suppliers. The awarding of contracts for tourism development projects is particularly risky, as it often takes place within opaque structures and contractual partners may breach laws and legal requirements in the process.

  • Tax evasion

    In the tourism sector, the risk of tax evasion arises primarily in the informal sector amongst second-tier suppliers. The extent of this risk depends on the specific destination. Taxes can be evaded, for example, by disposing of waste outside the official infrastructure or by paying staff without an employment contract.

  • Poor governance

    Anyone who books a holiday often unwittingly supports questionable political regimes within the tourism industry. In Egypt, for example, the military controls large parts of the tourism sector. Even after the revolutions, high-ranking officers remain major investors and owners of hotel complexes. Tour operators and travel agents therefore face the challenge that their offerings and the demand they generate may indirectly support corrupt elites or authoritarian forms of government.

  • Product
    responsibility
  • Customer safety

    Customer safety in the tourism sector is a sensitive and emotive issue – for both key suppliers and tour operators. If hotels endanger guests through negligence or tour operators through providing incorrect information, the providers face a significant reputational risk as soon as such cases come to light.

  • Labelling of products

    Incorrect product labelling poses a threat to tour operators and travel agents, particularly from a financial perspective. As well as damaging their reputation, it also risks a decline in customer satisfaction. Particularly in the case of sustainable travel, the multitude of labels and certificates makes it difficult to find one’s way around. Rather than providing clarity, they often cause confusion.

  • Marketing, Advertising
  • Protection of customer data