The effect of responsible tourism management practices on business performance in an emerging market

In: http://hdl.handle.net/11427/8910

Open Access

Abstract

Includes bibliographical references (leaves 211-212). ; Climate change, diminishing natural resources and a host of socio-economic challenges have fuelled the demands on businesses to manage their operations in a more sustainable and responsible manner. Global pressure, changing consumer demands and proof of business benefits have driven the growth in the field of corporate social responsibility (CSR). The tourism sector, however, despite being highly dependent on natural and human capital, has been slow to react to this trend. This paper investigates which factors influence the attitudes and perceptions of business managers towards responsible tourism management (RTM) and the effect that these attitudes and perceptions have on business performance. A conceptual model was developed to consider the relationships between managers' attitudes, management intention and business performance. Additionally variables considered to have disruptive power, such as managers' gender, highest level of education achieved, personal values, level of competitiveness, and industry sub-sector, were also included in the model. The analysis showed that despite the positive attitudes of tourism managers towards RTM, evidence of employee training, local procurement, and H IV/Aids policies is limited. Only 12.7% have an HIV/Aids policy and merely 13.7% carry the Fair Trade in Tourism South Africa (FTTSA) trademark. Factors disrupting the linear relationship between attitude and behaviour include the level of competitiveness in the business environment, the industry subsector, business size and the perceived costs of implementing RTM. The findings confirm previous research that a majority of South African tourism businesses are not adopting responsible tourism practices despite the evident need and benefits thereof. The findings from the research, however, also suggest that businesses who are employing RTM practices enjoy tangible business benefits ranging from increased employee morale to bottom line profits. The tourism industry in South Africa has been strongly criticised for its lack of transformation. Various government policies have been developed to encourage and expedite the spread of numerous benefits stemming from tourism to more South Africans. These include employment opportunities, small medium and micro enterprise (SMME) development, and poverty reduction. Social marketing campaigns by government tourism agencies aimed at influencing tourism businesses' management style should consider the findings from this study. Strategies will be more effective if the channels to implement RTM are made simpler, if the tourism industry feels supported by government to implement these changes, if the relative size of the business is taking into consideration, and if the perceived costs of RTM are addressed. It is imperative that the potential business benefits of RTM, including increased brand loyalty, product differentiation, marketing opportunities, and profits are communicated to tourism business managers. RTM, thus, becomes a strategic business choice for companies seeking to gain a competitive advantage. It benefits both the company and the society at large. Ultimately, a more sustainable and competitive South African tourism industry will result if business objectives of profit-maximisation are aligned with social and environmental goals.