Price is the Key to Sustainable Tourism
The theory of price elasticity of demand tells us that as two things that are highly relevant to travel goods and the future tourism… To illustrate this concept think of drinking water as a good example of a good that has inelastic characteristics - in that people will pay for it because of its life sustaining properties. On the other hand, demand for sugar is very elastic because as the price of sugar increases individuals ask themselves the question could I live without it. When we consider tourism what are we really talking about – sugar or water? Travel and tourism are highly elastic, because as price increases, demand decreases and consumers look for alternative options or other social, cultural, learning, leisure and recreation alternatives. So where does this ubiquitous concept of sustainability fit as we look to a future where our planets health is at best uncertain. The term “sustainability” has many conflicting meanings. In my mind sustainable tourism is comprised of three key elements; social, environmental and economic values. What is abundantly clear is that tourism needs to clean up its act. The good news is that as the largest global industry the positive effects would be mind blowing. Consider “organic vegetables” at the grocery store. For many an obvious choice – they taste yummy and are better for the planet. However, for the majority organics are a “nice to have” option but not as viable based on the cheaper alternatives. Does sustainable travel currently fall into this kind of basket also…? I would argue that it does. The theory of the tragedy of the commons suggests that as individuals we are collectively irresponsible when it comes to sharing tourism resources. Poor governance can leads to a raft of issues, such as: over crowding, habitat degradation and resource management. These can threaten the overall viability and future of tourist industries. On the flip side strict enforcement of controls such as user pays, environment levies and taxes can negate demand. Socio-economic effects can be disastrous for local communities when tourist dollars dry up. The future of sustainable tourism relies on balanced governance; that leads to the identification of management standards, their regulation and enforcement. . Enforcement should ensure environmental guidelines, carrying capacities, rights management, and moral and social issues are being observed. By providing tax incentives to industry and operators governments can reward those who follow best practices to protect our tourism resources for future generations. Travel is always going to be sugar not water. We can take some comfort that given the choice, at an equal or lesser price people will choose sustainable travel products over non-sustainable alternatives. Social media and in particular peer-to-peer ratings and the socialization of travel are powerful mechanisms for change. They will play a large roll in providing the education people require to make better travel choices. In the broadest possible sense the good will of a morally conscious minority is not enough, it is a competitive price that will determine the future success of sustainable travel and tourism.
