Performance Monitoring Programs and Performance Indicators for Sustainable Tourism
Co-Authors
Donald E. Hawkins, Eisenhower Professor of Tourism Policy
Kristin Lamoureux, Director
International Institute of Tourism Studies
School of Business
The George Washington University
2201 G St. NW Suite 301
Washington, DC 20052
www.gwutourism.org
Donald E. Hawkins
At the George Washington University School of Business in Washington, D.C., U.S.A., Dr. Hawkins is engaged in tourism and hospitality management education and conducts policy-related research. He was appointed as the Dwight D. Eisenhower Professor of Tourism Policy (an endowed chair) in 1994.
In 2003, he received the first United Nations World Tourism Organization (UNWTO) Ulysses Prize for individual accomplishments in the creation and dissemination of knowledge in the area of tourism policy and strategic management. He coordinated the UNWTO Tourism Policy Forum focused on using tourism as a development assistance strategy, conducted at GW, October 18-20, 2004. He received the UNWTO Themis Foundation Science Fellow Award, in April, 2005 in Andorra.
He has extensive international consulting experience over the past 30 years for multilateral and bi-lateral development assistance agencies, governments and the private sector, including investment promotion, strategic planning, policy development, and human resource development.
Kristin Lamoureux
Kristin Lamoureux is the Director of the International Institute of Tourism Studies (IITS) at The George Washington University in Washington, DC, USA. She is also an adjunct faculty member of the Department of Tourism and Hospitality Management, specializing in the planning and development of sustainable tourism. Currently, her duties include the oversight of all IITS activities including the Career Education Program and the administration of all grants/contracts such as the USAID project focused on Sustainable Tourism Development in Rural Areas of Northern Mozambique. Additionally, she has actively been involved in several tourism development projects a World Bank project focusing on sustainable coastal tourism development in Honduras after Hurricane Mitch; as well as a project to develop SAVE tourism in Northern Honduras. She has also worked as tourism advisor or consultant to the United States Environmental Protection Agency, the World Travel and Tourism Council, the Ecotourism Society, Conservation International, among others.
Acknowledgements
We would like to acknowledge key contributions from Chrystel Cancel, International Institute of Tourism Studies (IITS) and Crista Foncea, Department of Tourism and Hospitality Management, School of Business, The George Washington University (GWU) for their assistance in completing background research for this chapter.
Introduction
Sustainable tourism, as outlined by the United Nations World Tourism Organization (UNWTO), should make optimal use of environmental resources that help conserve natural heritage and biodiversity, respect the socio-cultural authenticity of host communities and provide socio-economic benefits to all stakeholders (UNWTO 2004)
According to the UNWTO, “The development of sustainable tourism requires the informed participation of all relevant stakeholders, as well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable tourism is a continuous process and requires constant monitoring of impacts, introducing the necessary preventive and/or corrective measures whenever necessary.” (UNWTO 2004)
Since the Bruntland Report came out in 1987, and even before that, much has been written on the topic of sustainable development and how its principles can be applied to tourism. Most tourism experts agree that for a destination to reap the benefits of tourism over the long term without causing harm to the natural or cultural landscape, tourism must be developed in a sustainable manner. For this to occur, decision-makers within the destination must have the necessary information to continually evaluate and monitor impacts on the natural, cultural and economic situation of the destination.
How do successful tourism destinations address the rising expectations of visitors? How can damage to natural, cultural and socio-economic environments be avoided? How do destinations plan for sustainable tourism development that benefits the tourism industry and the local community?
Through the development of performance monitoring programs, destinations are able to answer the questions posed above. Developing adequate indicators that will allow the destination to make informed decision in the management of its resources may be the key to sustainable tourism development. Although, those involved in tourism development generally regard performance monitoring and the use of indicators as important part of sustainable tourism development, the implementation of such as not always been a key priority. While there have been some successes in the area of monitoring as one will see from the examples given here, far greater attention needs to be placed on recognizing the need for comprehensive monitoring systems with indicators that address the multiple issues involved in sustainable tourism development (Miller and Twining-Ward, 2005).
Through research-based practices, examples and ready-to-use tools, this chapter seeks to help those involved in the implementation of performance monitoring programs and development of sustainable tourism indicators make decisions geared towards safeguarding a destination’s cultural heritage, enhancing its natural environment, improving the welfare of people in the destination, and creating a positive experience for visitors. The goal of this chapter is to guide a destination’s stakeholders in decision-making that benefits both the local tourism industry and community, as well as visitors who have chosen their tourism destination.
Performance Indicators for Sustainable Tourism and the United Nations World Tourism Organization
The UNWTO has been involved in monitoring and evaluation of tourism projects through the development and implementation of indicators for over 15 years. In 1993, the UNWTO began implementing a series of sustainable tourism monitoring pilot projects in select destinations around the world (Miller and Twinning-Ward, 2005). In 2004, after an extensive process involving multiple pilot projects as well as an elaborate expert consultations, the UNWTO published Indicators of Sustainable Development for Tourism Destinations. This publication was developed as a guidebook for to help those decision-makers within a destination obtain sound information from which to manage sustainable tourism (UNWTO, 2004). This section briefly describes the UNWTO process as well as outlines the results of their extensive sustainable tourism monitoring program as explained in the Indicators of Sustainable Development for Tourism Destinations.
UNWTO Background Information
According to the UNWTO, as a result of the rapid expansion of the tourism sector, traditional and emerging tourism destinations are facing increasing pressure on their natural, cultural and socio-economic environments. Establishing tourism indicators can help to manage the impact that such a rapid expansion can provoke in a destination. In addition, tourists are now becoming more demanding about the quality of natural resources of an area, and about how Destination Management Organizations (DMO) protect those resources. Indicators are tools that can be used to help ensure that the resources that originally made the destination attractive to visitors are kept intact.
The UNWTO indicates that “in the context of sustainable tourism development, indicators are information sets which are formally selected for a regular use to measure changes in assets and issues that are key for the tourism development and management of a given destination” (2004). In general, indicators are signals of current issues, emerging situations or problems, which need to be addressed. Performance indicators allow destinations to acquire the necessary data to manage tourism in a sustainable manner.
Types of Indicators Identified through the UNWTO Process
Indicators can be classified into many different categories – economic, environmental, socio-cultural, etc. – to reflect the area to be measured. Indicators can also be either numerical or non-numerical depending upon how they measure changes to a destination.
Numerical indicators, known as “quantitative” indicators, usually refer to discrete aspects of tourism such as the number of arrivals, occupancy rates, local to tourist ratios, and others. It can be more convenient to use numerical indicators for managing purposes because they are more reliable and easier to track.
Non-numerical indicators, called “qualitative” indicators, typically inform about feelings, attitudes and behaviour of all stakeholders. These are more difficult to measure due to their human component. However, it is very important to include qualitative indicators in every destination analysis in order to learn the degree of involvement of all stakeholders.
Customizing Indicators for a Specific Destination
According to the UNWTO, the number of indicators will depend on the (2004):
· size of the destination
· number of critical issues
· interests of the user group
· information and the resources available to track and report the indicators.
Through the consultation of a number of experts as well as actual destination stakeholders, the UNWTO was able to determine that destinations should strive for the implementation of approximately 12-24 indicators as optimal. They noted that a key issue is to be inclusive and reach an agreement upon a relatively short list of indicators without important gaps in information gathered (2004).
The indicators chosen by a destination will always vary depending on its degree of development and the level of planning that already exists in it. It is important to identify the differences between destinations and individual issues or a region regarding its planning and regulation processes. The UNWTO suggests that in destinations where a formal planning process has not yet been started, the indicators development process can be a catalyst for formal planningn(2004).
UNWTO Indicators According to Function
As table 1 demonstrates, the following types of indicators will support the development of sustainable tourism:
Table 1: Examples of Indicators According to Their Function
INDICATOR / EXAMPLESEarly warning indicators / Decline in numbers of tourists who intend to return
Indicators of stresses on the system / Water shortages, or crime indices
Measures of the current state of the industry / Occupancy rate, level of tourists’ satisfaction
Measures of the impact of tourism / Indices of the level of deforestation, changes of consumption patterns and income levels in local communities
Measures of management efforts / Cleanup cost of water-bodies contamination
Measures of management effect, results or performance / Changed pollution levels, greater number of returning tourists
Source: UNWTO, 2004
The UNWTO has proposed the following criteria for selecting sustainability indicators in tourism (2004).
§ Relevance of the indicator to the selected issue
§ Feasibility of obtaining and analysing the needed information
§ Credibility of the information and reliability for users of the data
§ Clarity and understand-ability to users
§ Comparability over time and across jurisdictions or regions
Indicators can be used to monitor economic, environmental and social impacts of tourism activity. The following indicators, established by the UNWTO, may be appropriate for the monitoring and evaluation of a destination’s performance (2004).
Indicators related to economic impacts:
· Annual total income generated in the community.
· Ratio of income attributable to tourism versus traditional income generating activities.
· Total number of room/bed nights, average daily rates, occupancy, RevPAR.
· Taxes generated through tourism.
· Total number of workers in the community (and ratio of men and women) employed by tourism.
· Ratio of local to “outsiders” directly employed by tourism.
· Ratio of local to “outsiders” in management-level positions within the tourism sector.
· Percent of local workers employed at different skill levels (unskilled, technical, administrative, management, contract).
· Number of tourism-related M/SMEs (by type e.g. accommodations, guiding, transportation).
· Incentives for M/SMEs (special credits, tax advantages, grants, legal conditions).
· Capacity building for establishment and improvement of M/SMEs: number of programs or events, level of participation.
· Percent of all tourism enterprises in the area that are locally owned.
· Percent of workers in the community directly employed by ratio of the top to the lowest paid local tourism worker.
· Annual financial contribution by tourism to community projects.
· Infrastructure development stimulated by tourism also benefiting the poor.
· Number and type of development programs (education, training, health).
Indicators related to social-cultural impacts:
· Resident attitudes, perceived/actual benefits.
· Tourist attitudes, perceive/actual benefits, value/money.
· Number of social services available to the community (% which are from tourism activity).
· Percent of residents speaking another language.
· Percent of local residents concerned about loss of culture, community structure and values.
· Degree of local participation in tourism planning (% participating or represented).
· Access by locals to key sites.
· Price of real estate in the destination.
· Women/men as a percent of all tourism employment.
· Percent of women in management-level positions within tourism sector.
· Percent of tourism enterprises owned by women.
Indicators related to environmental impacts:
· Percent of total area (square km) under designated protected area.
· Number of tourists per hectare at key sites.
· Terrestrial flora and fauna health index based upon periodic surveys of tour operators, local communities, other experts.
· Percent change in wildlife based upon surveys done within a protected area.
· Number of divers/snorkelers per square meter of coral reef.
· Coral reef/marine health index based upon periodic surveys of dive operators, local communities, other experts.
· Level of sea water contamination (based upon chemical testing).
· Perception of tourists regarding cleanliness of water.
· Total volume of water consumed by tourists and by day.
· Total volume of stored water.
· Number of tourism establishments with water treated to international potable standards.
· Waste volume produced by destination per month.
· Volume of waste recycled.
· Quantity of water strewn in public areas.
· Per capita consumption of energy from all sources.
· Land use planning that includes zones for tourism development.
Further information can be found in Annex 1 which provides a chart that explains the relationship between tourism impacts and performance indicators.
Boxes 1 and 2 below provide examples provide an overview of the recommended indicators for both a specific type of destination, in this case coastal zones; as well as an example of a national approach to tourism indicators in the case of Tunisia.
Box 1: Destination Example: Coastal Zone Issues and Indicators
The UNWTO has identified unique sets of indicators for destinations with specific characteristics. Tourism development in coastal zones is one of the areas the UNWTO has identified for these specific indicators, as over “three quarters of the world’s tourism occurs in coastal areas” (2004). These areas are very popular destinations among tourists seeking to experience beach activities, wildlife, fishing, and boating. However, coastal zones are very fragile ecosystems and face many issues with the increasing number of tourists. For this reason, it is critical that a destination develop sustainable tourism indicators and monitor impacts on the destination. Issues of control and shore use and building, sea water quality, crowding, erosion, solid waste, identification and protection of fragile habitats are among possible issues that can occur during tourism development.The following table shows the relation between some possible issues and the corresponding indicators that coastal managers may consider monitoring to ensure the sustainable development of the coastal and marine environment.
Select Indicators Related to Possible Coastal Zone Issues
ISSUE / INDICATORS
· Damage to the natural environment of the shore zone / · Percentage of coastal area in degraded situation
· Sustainability of key species (coastal floral, fish) / · Number of incidents involving harassment of viewed species
· Shoreline erosion / · Annual change in measured shore/beach area
· Beach management / · Cost of beach cleaning
· Intensity / · Number of tourists per hectare on key sites
· Seawater contamination / · Number of days per year when beach and shoreline is closed due to contamination
· Complaints by tourists
· Reef systems / · Number of divers/snorkelers to the reef per square meter of reef
· Perception of cleanliness / · % of tourists that believe that the water is polluted
Source: UNWTO, 2004
Box 2: National Example: Tunisia’s Approach to Tourism IndicatorsThe tourism sector has been seen by the Tunisian authorities as a means of bringing employment opportunities and foreign investments to the country since the 1960s. Since its inception, tourism indicators have become an integral part of tourism planning in the coastal zone of Tunisia to monitor the economic, social and environmental impacts of the tourism development on the destination.
Today, tourism authorities use an effective indicator program based on 30 years of data to anticipate changes in the tourism market. These indicators serve as a warning system of important changes and trends and allow anticipated reaction. Tourism authorities are able to react and to raise better standards to control tourism development in the region.
To plan hotel development in the coastal zone, Tunisia’s tourism authority has determined a series of indicators and building standards to examine before deciding on new development featured in the table below.
Selected Indicators and Standards
Indicator / StandardNumber of beds per hectare / 100 beds/hectare
Coefficient of land occupation (area which is build on) / 25%
Beach density / 1 swimmer/16m2
Land use coefficient (area of floor space relative to surface area of total property) / 45%
Height (special tourist zone) / Hotel height must not exceed the height of a palm tree
Performance Monitoring Programs
The development of performance indicators for sustainable tourism should be one piece of the larger Performance Monitoring Program. Results-based management is contingent upon the continual process of receiving data and utilizing it to make better decisions for the future of the destination.