Thursday, February 21, 2013

Tourism as a people business

By Renton de Alwis

Reposting of a column from 'Out of the Box' in the Financial Times, Sri Lanka published in January 2010


By definition tourism is about people and their interactions with the natural, social and cultural environments at the places they visit. Yet, people in most instances perceive tourism to be an elitist business activity which only leaves the crumbs of its benefits, for the communities at these destinations. While in most instances this is far from the truth, there are others, where it is the reality.

In a day and age, where responsibility to society is held as a desirable goal for business, tourism could do well to benefit from such demand driven sentiment. The new consumer demand at the mid and high-end of the spectrum now demands that destinations and tourism business operators be even more socially aware and environmentally responsible than before. Issues such as ‘travel guilt’ arising from sensitivity to causes of global warming, seeking direct benefits to communities from the tourist spend and exploring interactive experiences with real people in real situations are becoming more and more important to customers demanding tourism services today.

Some destinations and businesses are seemingly addressing this issue with a segmented approach. They have a mainstream or mass tourism which caters to the low-end demand while also presenting activities with labels such as ecotourism and community-based tourism. There are others who present the entire destination as one that is based on principles of responsible tourism. Examples of the first approach will be Thailand, Malaysia, Indonesia or India, while destinations such as Costa Rica and Scotland will represent the latter.        

In my opinion, we in Sri Lanka are placed in a vantage position to seek a way-forward with our future tourism development that can provide us a unique positioning as a responsible tourism destination. To do this we need to venture to develop our new tourism operations based on a fresh business model. A model that can be profitable and be able to both meet customer expectations and provide direct stakeholder benefits to communities.  

One such opportunity for establishing entirely new business models is presented in the area of tourist accommodation facilities development. Today, when we consider mainstream tourist accommodation we tend to look at constructing hotel or resort complexes with all facilities contained within that complex. Such hotel or resort complexes need to have centralised power, water-supply, sewerage and waste disposal facilities and adequate numbers of hired wage workers to provide required services. These are expensive investments, with largely negative environmental impacts and are also difficult to sustain during demand down-turns.      

Instead, if we were to establish tourist accommodation as an expand on the concept of rooms in homes or smaller accommodation units, concentrated in destination areas where an effective demand for that area can be created based on the natural and/or cultural resources available there. The rooms-in-homes will not necessarily have to be inside people’s homes, but additions built close to them. An example exists now of such facilities in Goyambokka/Madilla area near Tangalle. The Ubud area in Bali will also provide a similar example from overseas. Kalkudah on the East coast, in my mind, could be a suitable area to set such a model into action to test its viability. The idea further extended will provide opportunities for the formation of new ‘Area Accommodation Management Companies’, which can step in to provide managerial expertise and training to ensure quality assurance, marketing and selling the area and its facilities, where community operators could hire its services.

The advantages of such a business model will be its potential to use renewable sources of energy, i.e. solar, bio-gas and wind; operation of units managed by members of the community providing them direct stakeholder benefit, not become burdensome during periods of demand down-turn, have least impact on the scenic environment of the area, meet and satisfy customer aspirations and assist to position Sri Lanka as an unique tourism destination that can stand tall in the global market place.   
 

  

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