Tourism in the Australian Capital Territory: Climate Change and a Sustainable Business Future - Case Study Example

Tourism in the Australian Capital Territory (ACT): Climate Change and a Sustainable Business Future Introduction Climate is an essential resource for the tourism industry especially for destinations which attract tourists through sports tourism, beaches and nature. Changes in weather or climate patterns in tourist destinations can adversely affect the travel decisions and comfort of tourists. Thus to reducing the flow of tourists. Although the tourism industry relies on climate and the environment in general for its sustained growth and success, it also significantly contributes to climate change and the overall degradation of the environment. For example, the tourism industry contributes to the emission of greenhouse gases ‎‎‎(GHG), especially through the transportation of tourists.‎ ‎Since the 1st International Conference on Climate Change and Tourism convened by the United Nations World Tourism Organization (UNWTO) in Tunisia in 2003, there has been a growing interest especially in research studies on the complex relationship between climate change and tourism. Currently, there is wide recognition on the need for international organisations, national governments and the tourism sector to develop and implement measures that will ensure a sustainable business future for the tourism sector by addressing the changing climate conditions and mitigating tourism’s ‎environmental impacts that contribute to climate change (Reddy & Wilkes 2012; UNWTO 2013). This paper seeks to critically examine the link between climate change and sustainable business future for the tourism industry in the Australian Capital Territory (ACT). Firstly, it looks at the current state of tourism in the ACT. Secondly, it examines the strategic challenges of business sustainability faced in ACT’s tourism sector as far as climate change is concerned. Thirdly, this paper highlights the major stakeholders who play significant roles in ensuring sustainability of the tourism sector in ACT. Moreover, it will look at the possible strategic responses and preferred approach that can be used to address climate change and ensure sustainable development in the tourism sector in ACT. Lastly, this paper will highlight an indicative timeline, measures and roles that can be used to assist in implementing the preferred strategy in the tourism industry in the ACT. Current State of Tourism in ACT Tourism in ACT is a unique asset that not only acts as a source of revenue but also provides numerous employment opportunities. The tourism sector in ACT is endowed with a wide range of eye-catching and unique touristic sites and natural sceneries. Some of the striking features in this area include; wildlife, sprawling parklands, farms, galleries, wineries, sandy beaches, aquatic life, glacial lakes, snowy mountains, scenic countryside, casinos and magnificent restaurants and bars among many other features (Tourism Australia 2014). Tourist visiting ACT originate from the either the domestic or international market. According to a study carried out by Visit Canberra (2014), in the year ending December 2013 the ACT welcomed over 2 million domestic overnight tourists and 1.95million domestic day tourists. The key transport options commonly used by domestic tourists include; air and road transport. On the other hand, in the year ending December 2013 the ACT welcomed over 181,686 international tourists. The top five countries where international tourists who visit ACT originate from include; China (11.6%), USA (11.3%), South East Asia countries such as Singapore, Malaysia, Hong Kong, Thailand (10.3%), United Kingdom (9.4 %) and New Zealand (8.5 %). The preferred modes of transport for most international tourists is also air and road transport (Visit Canberra 2014). A majority of tourism businesses in ACT are small and medium-sized business. Large businesses in ACT make less than one per cent. Following the Global Financial Crisis (GFC), many tourism businesses in ACT have been facing wide range of challenges. Although Australia is considered to be among the least affected countries by the GFC, the tourism sector witnessed tumultuous times due to this global economic downturn. This is mainly because a considerable amount of revenue generated in this industry comes from tourists from the international markets affected by the GFC. The aftermath of GFC has seen many small and middle sized businesses realising lower profitability due to changes in tourist flow and high operation and labour costs. However, despite of the existing challenges in ACT’s tourism sector, a number of studies have forecasted that in the course of the next decade tourism businesses in ACT will experience a significant increase in profitability and growth due to increase of inflow of tourists from emerging markets such as China, Malaysia and Singapore. As a result of upcoming influx of tourists from emerging markets, there is pressure for ACT to dramatically enhance its tourism infrastructure, boost its service standards and revamp its hotels (TRA 2014). Generally, the success of the tourism industry in ACT largely hinges on the well being of the environment. In essence, tourism can only thrive if sustainable environmental practices that ensure conservation of biodiversity and survival of rare and endangered species of plant and animal life are sustained. Moreover, climate is particularly an essential resource for the tourism industry especially for destinations in ACT which attract tourists through sports tourism, the beach and nature. Changes in weather or climate patterns in tourist destinations can adversely affect the travel decisions and comfort of tourists. This could in turn affect the demand patterns and flow of tourist in certain destinations. Consequently, business sectors which rely on tourism such as hotel and hospitality, construction, transports or handicrafts may experience a downturn. Reduction in the arrival of tourists due to changes in climate could also lead to an increase in unemployment (Reddy & Wilkes 2012; UNWTO 2013). Strategic Challenges of Sustainability A critical look at the current state of the tourism sector in ACT as discussed in the section above, it is evident that there are three emerging issues pertaining to sustainability. These issues present several strategic challenges that can significantly affect the sustainable business future of ACT’s tourism sector if not addressed. The first issue that emerges from the current state of tourism in ACT revolves around its tourists attractions. It is evident that ACT is largely an ecotourism destination since a considerable number of its attractions are natural sceneries such as glacial lakes, snowy mountains, sandy beaches and sprawling parklands among many other features (TRA 2014; Tourism Australia 2014). Tourism in natural areas, including protected areas has been on the increase in ACT and is currently considered to account for about 30% of all leisure travel and to be worth millions of dollars each year. Many domestic and international tourists who visit ACT come to see the various rich and diverse natural systems in world heritage areas and national parks. Thus it can be argued that tourism in ACT is nature-based or largely an eco-tourism destination (Buckley 2004). Although this is beneficial to the economy and relatively economically sustainable, it presents a major environmental sustainability challenge. According to Buckley (2004), ecotourism or nature-based tourism can adversely affect the environment in many ways. A number of studies have found that tourist activities in the natural environment such as hiking, mountain climbing, fishing and camping among many other activities can directly or indirectly contribute to climate change (Tonge et al., 2004; Turton 2005; Williams et al 2001; Whinam & Comfort 1996). For example, Buckley (2004) notes that ecotourism activities such as hiking, mountain climbing, fishing and camping among many other activities significantly contribute to soil tillage, land degradation and deforestation which in turn release carbon from the land system and minimise its capacity to absorb and store carbon. In addition to this, pollution brought about by the influx of tourists in natural environment through biomass burning, fossil fuel combustion, the release of aerosols and other pollutants into the atmosphere may also contribute to climate change. Some of these pollutants often alter the capacity of the atmosphere to absorb solar radiation (Buckley (2004; Sun & Walsh 1998). Another major strategic challenge when it comes to the sustainability of tourism in ACT relates to the forecasted increase of tourists in ACT in the near future. Increase in the flow of tourists in ACT is likely to enhance the profitability and overall economic sustainability of small and medium scale businesses in ACT. Nevertheless, the influx of tourists is likely to bring two strategic challenges. The first strategic challenge has to do with the pressure for ACT to dramatically enhance its tourism infrastructure so as to effectively accommodate the increasing number of tourists (TRA 2014). Further expansion of tourism infrastructure in ACT, could bring about adverse impact to the environment. For instance, over development along the coastal strip could bring about ecological problems in the beaches by disrupting natural erosion processes of marine environments. In order to create room for expansion, deforestation may also increase take place. Studies have found deforestation to be responsible for over 20% of global warming due to the massive release of carbon dioxide and other greenhouse gases which accelerate the rate of climate change. Secondly, the influx of tourists in ACT goes hand in hand with increase in travel. Since road and air transport are the most preferred means of travel by both domestic and international tourists in ACT, greenhouse gas emissions are likely to increase (Buckley 2004). Major Stakeholders Issues pertaining to climate change and the sustainability ACT’s tourism business future call for the collective involvement of various stakeholders. Some of the key stakeholders that can play a significant role in addressing some of the strategic challenges highlighted in the section above include; international environmental and tourist organisations, the central government, local government, the media, business practitioners and the local communities within the tourism sector in ACT. International and national environmental and tourist organisation such as the United Nations World Tourism Organisation (UNWTO) can play a significant role in promoting sustainable and responsible tourism by providing support and leadership. Similarly, the central and local government can play a significant role in enhancing the sustainability of tourism in ACT by instituting, implementing and enforcing suitable policies and regulations that support sustainable tourism practices that are not only suitable for businesses but also for the environment. Moreover, the media can play a significant role in educating and creating awareness in the local community regarding various sustainability issues evident in the tourism sector. Additionally, business practitioners within the tourism sector in ACT are also major stakeholders whose role in the implementing sustainable business practices is essential (TRA 2014). Possible Strategic Responses Evidently, in the case of the tourism sector in ACT conflict arises when it comes to striking a balance between the development of tourism sector and the opportunity cost of safe guarding the environment in terms of preventing the triggers of climate change. As a result, focus should be directed towards sustainable development. According to Pearce, Barbier & Markandya (2013) sustainable development encompasses, a business approach that enables various business practitioners to make their operations more economically, socially and environmentally beneficial to all stakeholders. Similarly, sustainable development can be described as; “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED 1987: 43). In the case of ACT’s tourism industry, possible strategic responses that can be implemented in order to ensure sustainable development within ACT’s tourism sector should centre around mitigation approaches. Two mitigation approaches that can be used to promote sustainable development in this sector include regulation and soft tools. Regulation Generally, regulation involves the imposition of rules by authorities such as the government. The imposed rules set out what is permissible and impermissible practice. Often times, regulation is backed by the use penalties that are specifically intended to govern and modify the behaviour of individuals and entities (Tribe 2011). Improving regulation can play a significant role in promoting sustainable development in ACT’s tourism sector. The central and the local government in ACT can institute two forms of regulation in order to ensure that there is sustainable development. Firstly, due to the existing pressure for ACT to expand its infrastructure in order to effectively accommodate the forecasted increase in tourist flow, it is essential for the central and the local government to introduce or improve the existing planning regulations. These planning regulations should set standards that developers and business owners are expected to meet before they expand ant tourism infrastructure. The standards set should ensure that any proposed development or expansion of tourism infrastructure is economically, socially and environmentally beneficial to all stakeholders (Pearce et al. 2013). Secondly, the central and the local government should introduce or improve the existing environmental impact assessment regulations. This will ensure that business owners or practitioners within the tourism sector in ACT take into account the environmental impact of the operations. For example, through this regulation, the government can enforce the use of CO2 emission calculator amongst airline operators so as effectively assess their environmental impact (Tribe 2011). Soft Tools Soft tools are basically voluntary measures that attempt to change behaviour through information or education. Using soft tools, the media, international, national and local tourism and environmental regulations can play a significant role in creating awareness or educating the public and practitioners within the tourism sector in ACT about the impacts of their practices and ways in which they can realise sustainable development. In this case some of the soft tool approaches that can be used include; consumer education and advertising, guidelines, treaties and agreements with business owners and practitioners in the industry and developing codes of conduct to guide tourists and operators towards achieving sustainable development (Tribe 2011). Indicative Timeline 2014- 2016 Continuous Sustainable Development Strategy Response Strategy Roles Target Outcome 1. Regulation Planning Regulation Environmental Impact Assessment Regulations Central and local government in ACT Research Consultation with stakeholders Drafting and publishing of regulation Enforcement of regulations Business owners and Practitioners Operators of natural sceneries Airline operators Tourists -Minimise deforestation -Minimise emission of greenhouse gases in the atmosphere -Minimise land degradation 2. Soft Tools Awareness and Education Treaties and Agreements Code of conduct Media, local and international environment and tourist organisations -Awareness and education media campaigns on sustainable development -Consultation with stakeholders - Drafting and publishing of agreements and code of conduct Business owners and Practitioners Operators of natural sceneries Tourist Local communities -Public sensitisation on climate change, its causes and impacts -Minimise deforestation -Minimise emission of greenhouse gases in the atmosphere Conclusion Tourism in ACT is a unique asset that not only acts as a source of revenue but also provides numerous employment opportunities. ACT is largely an ecotourism destination since a considerable number of its attractions are natural sceneries such as glacial lakes, snowy mountains, sandy beaches and sprawling parklands among many other features. Although this is beneficial to the economy and relatively economically sustainable, it presents a major environmental sustainability challenge. For instance, due to the upcoming influx of tourists from emerging markets, there is pressure for ACT to dramatically enhance its tourism infrastructure. As a result, conflict arises when it comes to ( a balance between the development of tourism sector and the opportunity cost of safe guarding the environment in terms of preventing the triggers of climate change. In order address these strategic challenges and enhance sustainable development this paper proposes the need to utilize mitigation strategies such as regulation and soft tools like consumer education and advertising, guidelines, treaties and agreements with business owners and practitioners in the industry and developing codes of conduct to guide tourists and operators. References Buckley, R. 2004, Environmental Impacts of Ecotourism, CABI, Oxfordshire. Pearce, D., Barbier, E.& Markandya, A., 2013, Sustainable Development: Economics and Environment in the Third World, Routledge, London. Reddy, M.V & Wilkes, K, 2012, Tourism, Climate Change and Sustainability, Routledge,New York. Sun, D. & Walsh, D., 1998, “Review of studies on environmental impacts of recreation and tourism in Australia” Journal of Environmental Management, vol 53, pp. 323-338. Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland. Tonge, J., Moore, S.A., Hockings, M., Worboys, G. & Bridle, K., 2004, Developing Indicators for the Sustainable Management of Visitor Use of Protected Areas in Australia, a scoping report .CRC for Sustainable Tourism, Griffith University. Tourism Australia, 2014, Australian Capital Territory, viewed June 26 2014 Tourism Research Australia (TRA) 2014, State of the Industry 2013, viewed June 26 2014 Tribe, J., 2011, The Economics of Recreation, Leisure and Tourism, Routledge, New York. 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