BUSM 4567

Ecotourism and
Sustainable
Hospitality
Management
 RMIT Classification: Trusted

Week 3
Economic, Social Sustainability
& Stakeholders
 RMIT Classification: Trusted

TBL

Planet
People Environment
Profit Social
Economy
 RMIT Classification: Trusted

Week 3
Economic Sustainability
 RMIT Classification: Trusted

Elements of sustainability
Environment

Economy Society

World Commission on Environment and Development

 RMIT Classification: Trusted

Elements of sustainability
• Money and capital
Environment • Employment
• Technological growth
• Investment
• Market forces

Economy Society

World Commission on Environment and Development

 RMIT Classification: Trusted

Economic sustainability

§ Economic sustainability refers to practices

that support long-term economic growth
without negatively impacting the social,
environmental, and cultural aspects of the
community.
Positive Impacts

Increases overall wealth of the host community

Broadens the base of activity on which economies
depend
Stimulates inbound direct investment
Creates employment at the host destination
Increases taxation revenue for destination
governments
Increases revenue for local businesses
 e.g. Negative Impacts

Inequitable distribution of economic benefits

amongst host community residents.
“Leakage” of economic benefits outside of the
community, due to need for imports or
external ownership of tourism service
providers.
Cost of provision of infrastructural and other
services specifically required by tourists.
Competition for government funding against
community need for social services provision.
Potential to inflate costs of living at
destination.
 RMIT Classification: Trusted

Week 3
Social Sustainability
 RMIT Classification: Trusted

Elements of sustainability
Environment • Human diversity
(cultural, linguistic, ethnic)
• Equity
• Quality of life
• Political structures
• Institutional structures

Economy Society

World Commission on Environment and Development

 RMIT Classification: Trusted

Social sustainability

§ Social sustainability can specify

and manage both positive and
negative impacts of systems,
processes, organisations, and
activities on people and social
life.
 Improved infrastructure e.g. roads, rail, air and seaports
Positive Impacts Increased variety of recreational opportunities, e.g.
theatre, cinemas, restaurants
Improved social services for tourists e.g. medical care,
also available to local residents
Interaction with other cultures reduces ethnocentrism
Greater incentive to sustain uniqueness in host
community culture
e.g. Negative Impacts

Increase in crime and other socially undesirable

activity
The commercialisation of culture to meet tourist’s
behavioural preferences
Competition between hosts and guests for access to
host community resources
Irreconcilable differences between host and guest
cultural practices
 RMIT Classification: Trusted

Week 3
Stakeholders
 RMIT Classification: Trusted

Stakeholders

“Any group or individual who can

affect or is affected by the
achievement of an organisation’s
objectives.”
(Freeman, R.E. (1984) Strategic Management: A
Stakeholder Approach, Boston: Pitman.)

Developers, businesses, neighbours,

communities, government ministries,
non-governmental agencies, etc.
 RMIT Classification: Trusted

Stakeholders Analysis
Levels of the importance of stakeholders (Clarkson 1995)
§ Primary stakeholder:one who, without continuing
participation, the business cannot survive or the
development/intervention succeeds.
§ Secondary stakeholders: ones who influence, affect or are
influenced or affected by the business/development initiative
but who are not engaged in transactions with the
business/development initiative and are not essential for its
survival
§ i.e. Those that affect vs those that are affected by.
§ Active versus passive stakeholders (e.g. farmers versus
absentee landlords)
RMIT Classification: Trusted

Stakeholders
 RMIT Classification: Trusted

That’s a wrap for TLB

Economic Sustainability
viable tourism industry; prosperous local economy;
quality local employment
Societal Sustainability
equitable distribution of economic benefits; fulfilling
experiences for visitors; positive and constructive
host/guest relationships; improved sense of community;
revitalised community culture
Environmental Sustainability
enhanced physical integrity; expanding biological
diversity; maximised resource efficiency; acceptable
environmental purity (UNWTO)
 RMIT Classification: Trusted

Week 3
Please complete your pre-class
activity before our F2F class.
BUSM 4567

Thank you so much,

and keep smiling!
Have a nice day!

© BUSM4567 2023 Dr Daisy