The keys to managing growth and sustainable tourism governance

and September 20, 2017

Dr Noel Scott was the lead author of the UNWTO special report on managing growth and sustainable tourism governance in Asia and the Pacific.
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A spe­cial report on Man­aging Growth and Sus­tain­able Tour­ism Gov­ernance in Asia and the Pacific was launched by the United Nations World Tour­ism Organ­iz­a­tion (UNWTO) at its 22nd Gen­er­al Assembly in Cheng­du, China last week. For this “GT” Insight, Dav­id Gill­banks of The “Good Tour­ism” Blog cor­res­pon­ded with the lead author of the report Dr Noel Scott, to find out what the report is all about and what it can teach tour­ism stake­hold­ers of all shapes and sizes.

“GT”: Con­grat­u­la­tions on the launch of the UNWTO spe­cial report Man­aging Growth and Sus­tain­able Tour­ism Gov­ernance in Asia and the Pacific. What is it all about?

Dr Scott: The key mes­sage from this report if that unless the insti­tu­tions respons­ible for the task of main­tain­ing the sus­tain­ab­il­ity of tour­ism des­tin­a­tion have the dir­ect­ive capa­city and dir­ect­ive effect­ive­ness to achieve this task then it will not happen.

The implic­a­tion is that there is a need to under­stand the dir­ect­ive capa­city and effect­ive­ness of dif­fer­ent insti­tu­tions (gov­ern­ment, com­munity, NGOs, private sec­tor, etc).

It is likely that indi­vidu­ally, none of the organ­isa­tions will have dir­ect­ive capa­city and dir­ect­ive effect­ive­ness to achieve the task of sus­tain­able tour­ism des­tin­a­tion development.

There­fore there is need for these organ­isa­tions to work togeth­er by set­ting object­ives, identi­fy­ing their sep­ar­ate and joint respons­ib­il­it­ies and devel­op­ing the required dir­ect­ive capa­city and dir­ect­ive effectiveness.

A num­ber of cases in the spe­cial report illus­trate these points.

“GT”: What is meant by “dir­ect­ive capa­city” and “dir­ect­ive effect­ive­ness”? I assume both are a com­bin­a­tion of know­ledge of prob­lems and solu­tions, lead­er­ship, and author­ity. How­ever when I plugged “dir­ect­ive capa­city” into my favour­ite search engine it came up with links related to patient autonomy and liv­ing wills!

Dr Scott: Dir­ect­ive capa­city is what an organ­isa­tion can legit­im­ately dir­ect its mem­ber to do — its organ­isa­tion­al powers. So first let’s think about two dif­fer­ent types of insti­tu­tions: reli­gious faiths and private sec­tor businesses.

Some reli­gious faiths main­tain the power to dir­ect what a mem­ber of that faith eats, wears and their appro­pri­ate beha­viour at cer­tain times of day. Most private sec­tor busi­nesses can­not dir­ect what their employ­ees eat, but may have the right to dir­ect what they wear and the appro­pri­ate beha­viour dur­ing work­ing hours. Reli­gious faiths and private sec­tor busi­nesses have dir­ect­ive capa­city over dif­fer­ent types of per­son­al behaviour.

Now think about gov­ern­ment nation­al park agen­cies. A nation­al park agency is giv­en powers to pro­tect the long-term envir­on­ment of a nation­al park. How­ever, a park eco­sys­tem can be ser­i­ously affected by clear­ing of trees imme­di­ately out­side its bound­ar­ies and the agency can do noth­ing. It has no dir­ect­ive capa­city out­side its boundaries.

BUT, what if the nation­al park agency estab­lishes a vol­un­tary organ­isa­tion of loc­al land­hold­ers that com­mit to pro­tec­tion of the park? This new pub­lic-private part­ner­ship may agree a code of con­duct and to lim­its on veget­a­tion clear­ing. The mem­bers of this new vol­un­tary organ­isa­tion now have dir­ect­ive capa­city to pro­tect the park and its sur­rounds. This dir­ect­ive capa­city is based on vol­un­tary agree­ments amongst its members.

So dir­ect­ive capa­city is the scope of powers that an organ­isa­tion has to achieve some task (such as pro­tect­ing a nation­al park).

Now if we think about the dir­ect­ive capa­cit­ies of gov­ern­ment organ­isa­tions in devel­op­ing sus­tain­able tour­ism des­tin­a­tions, we find that there are many organ­isa­tions with dir­ect­ive capa­cit­ies relat­ing to sus­tain­ab­il­ity but their roles and object­ives often clash or con­flict. In addi­tion, a gov­ern­ment may not have the powers neces­sary to restrict pres­sure on the envir­on­ment by pop­u­la­tion increases, remov­al of veget­a­tion or pol­lu­tion of the water through inef­fi­cient sew­er­age systems.

Dr Noel Scott's colleague at Griffith University (and a "GT" Insight contributor) Dr Susanne Becken attended the launch of the UNWTO special report on Managing Growth and Sustainable Tourism Governance in Asia and the Pacific'.
Dr Noel Scot­t’s col­league at Grif­fith Uni­ver­sity (and a “GT” Insight con­trib­ut­or) Dr Susanne Beck­en (pic­tured right) atten­ded the launch of the UNWTO spe­cial report on Man­aging Growth and Sus­tain­able Tour­ism Gov­ernance in Asia and the Pacific at the UNW­TO’s 22nd Gen­er­al Assembly.

“GT”: For the layper­son (like me), can we refer to “dir­ect­ive capa­city” as “author­ity” and “dir­ect­ive effect­ive­ness” as “abil­ity”? For example hotel GM (and “GT” Insight con­trib­ut­or) John Mor­ris Wil­li­ams has both the author­ity and abil­ity, thanks to the buy-in and co-oper­a­tion of his staff, to com­post and recycle at Luang Pra­bang View Hotel. In this case author­ity would be mean­ing­less without the co-oper­a­tion of oth­ers. How­ever, while he does­n’t neces­sar­ily have the author­ity (and cer­tainly not the abil­ity on his own) to pick up lit­ter around the town of Luang Pra­bang, he is able to make that hap­pen by for­ging co-oper­at­ive part­ner­ships with oth­er stake­hold­ers. In this case a lack of author­ity isn’t an obstacle thanks to co-operation.

Dr Scott: Essen­tially yes. Dir­ect­ive capa­city means what author­ity Mr Wil­li­ams has over com­ple­tion of a task such as recyc­ling, over whom Mr Wil­li­ams has author­ity (his employ­ees), how decisions are made — Are there dis­cus­sions with employ­ees or just Mr Wil­li­ams mak­ing decisions by him­self? Does his Board of Dir­ect­ors need to get involved? — so it’s a bit more well-defined than just say­ing Mr Wil­li­ams has author­ity. It’s the same with “dir­ect­ive effect­ive­ness”. This cov­ers Mr Wil­li­ams’ know­ledge and skills, as well as his com­pany’s time and money avail­able, his abil­ity to know the recyc­ling has been done effect­ively and that he has achieved his object­ives, and so on. The dir­ect­ive capa­city and effect­ive­ness of a small busi­ness is easi­er to under­stand because these are mostly straight­for­ward and sim­il­ar for all private busi­nesses. The dir­ect­ive capa­city and effect­ive­ness of a gov­ern­ment depart­ment is more dif­fi­cult to measure.

“GT”: In the spe­cial report, gov­ernance is defined as a com­bin­a­tion of dir­ect­ive capa­city and dir­ect­ive effect­ive­ness, which is illus­trated by a mat­rix that has the former on the x‑axis and the lat­ter on the y‑axis. Good gov­ernance is an attrib­ute that can be ascribed to an entity that scores highly in both. The prin­ciple must surely scale up from the con­text of an indi­vidu­al in their house­hold and com­munity, through an organ­isa­tion in its oper­at­ing envir­on­ment, all the way to a glob­al play­er like the UNWTO itself. (Where would you place the UNWTO on this matrix!?)

So based on the 18 case stud­ies that made it into the report, what spe­cific­ally is the secret to good gov­ernance? The abil­ity to build con­sensus and forge alli­ances cer­tainly. How much is that depend­ent on a clear vis­ion for the future and SMART object­ives along the way?

Dr Scott: Yes, the same prin­ciples to all organ­isa­tions. The UNWTO is an inter­gov­ern­ment­al agency and like many of these, has no dir­ect­ive capa­city (author­ity) regard­ing the task of achiev­ing sus­tain­able tour­ism. It can provide expert advice and recom­mend­a­tions to its mem­ber coun­tries but that does not mean they have to imple­ment them. The UNWTO does have sig­ni­fic­ant expert­ise, know­ledge and skills in provid­ing advice on aspects of sus­tain­able tour­ism but must work though oth­er gov­ern­ment­al organ­isa­tions, which have more or less dir­ect­ive capacity.

The first key to good gov­ernance is to clearly define the task to be achieved. One prob­lem with improv­ing the sus­tain­ab­il­ity of des­tin­a­tions is that what to do is poorly defined and hard to meas­ure. There­fore it may be bet­ter to start with a spe­cif­ic task whose out­come is meas­ur­able. This could be a rub­bish clean-up day, or the cre­ation of a new nation­al park. For some tasks it may be with­in your own capa­city to organ­ise, while oth­er tasks will require a coali­tion of mem­bers with vari­ous levels of dir­ect­ive capa­city and effectiveness.

The second key is to build con­sensus and trust, and this may take time. Some­times small wins will provide a use­ful basis for devel­op­ment of fur­ther dir­ect­ive capa­city or effectiveness.

Third, many of the cases were suc­cess­ful because of a cham­pi­on, who cre­ated a coali­tion, or con­trib­uted new resources.

So good gov­ernance is partly about rules and laws and partly about people able to work together.

“GT”: A hypo­thet­ic­al. You wake up tomor­row morn­ing with all the dir­ect­ive capa­city in the world to make a start on sus­tain­able tour­ism. You take your own advice by start­ing with a spe­cif­ic task whose out­come is meas­ur­able in terms of it shift­ing the glob­al tour­ism industry toward sus­tain­ab­il­ity. What is that task? How do you sell that as a pri­or­ity to the industry? How do you deal with dissenters?

Dr Scott: Inter­est­ing. Well if we are talk­ing unlim­ited dir­ect­ive capa­city, then what you are say­ing is that I am able to require gov­ern­ments to devel­op laws that gov­ern­ment agen­cies will imple­ment. Good.

So I would select a par­tic­u­lar des­tin­a­tion: for example Labuan Bajo, home of the Komodo Dragon and a must-see des­tin­a­tion in Indone­sia that is devel­op­ing quickly. Or per­haps Raja Ampat in West Papua.

I would then devel­op a plan in con­junc­tion with loc­al busi­nesses to increase the cost of vis­it­ing these places sig­ni­fic­antly. In essence I would improve the value of the vis­it by bet­ter mar­ket­ing, improved ser­vices and so on. At the same time I would devel­op and enforce a phys­ic­al land use plan that restricts any new devel­op­ment to cer­tain areas only, requires licences for entry of fish­er­men or busi­ness oper­at­ors into nation­al parks (sim­il­ar to Great Bar­ri­er Reef Mar­ine Park). I would also devel­op a pro­gram to ensure that new busi­nesses had some loc­al own­er­ship com­pon­ent. If pos­sible I would also restrict migra­tion to the area per­haps through restric­tions on new accom­mod­a­tion? The key is to be able to restrict sup­ply of tour­ism ser­vices and residential/ busi­ness land use and attract a less price-sens­it­ive market.

The end res­ult would be the pro­tec­tion of a unique envir­on­ment­al resource with increased expendit­ure per vis­it­or and a great­er pro­por­tion going to loc­al people. It would also mean that there was less pres­sure on the envir­on­ment caused by a rap­idly increas­ing population.

The prob­lem with this scen­ario is that gov­ern­ments do not want to, or do not have the dir­ect­ive capa­city to under­take it. In addi­tion, I would sell it to the industry by say­ing that although it will take longer to under­take, it also means that they will have less com­pet­i­tion in the longer term and not face unsus­tain­able com­pet­i­tion. I think that a loc­al tour­ism busi­ness per­son may want this.

About Noel Scott

Noel Scott discusses the keys to managing growth and sustainable tourism governance
Dr Noel Scott

Noel Scott is Pro­fess­or and Deputy Dir­ect­or at Grif­fith Insti­tute of Tour­ism (GIFT), Grif­fith Uni­ver­sity, Gold Coast, Aus­tralia. With research interests includ­ing the study of tour­ism exper­i­ences, des­tin­a­tion man­age­ment and mar­ket­ing, and stake­hold­er organ­isa­tion, Dr Scott has super­vised 20 post­gradu­ate stu­dents to suc­cess­ful com­ple­tion of their theses. Dr Scott is a fre­quent speak­er at inter­na­tion­al aca­dem­ic and industry con­fer­ences, has more than 210 aca­dem­ic art­icles pub­lished includ­ing 11 books, and is on the Edit­or­i­al Board of 10 journ­als. He is also a Fel­low of the Coun­cil of Aus­trali­an Uni­ver­sity Tour­ism and Hos­pit­al­ity Edu­cat­ors and also of the Inter­na­tion­al Asso­ci­ation of China Tour­ism Schol­ars. Pri­or to start­ing his aca­dem­ic career in 2001, Noel worked as a seni­or man­ager in a vari­ety of lead­ing busi­nesses includ­ing as Man­ager Research and Stra­tegic Ser­vices at Tour­ism and Events Queens­land. He earned his PhD in tour­ism man­age­ment from the Uni­ver­sity of Queens­land in 2004.

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