Case studies of technology (or ICT) application in circular tourism

Circular Economy will go hand-in-hand with the further progressing of the digital transformation

Applying ICTs in destination management can boost sustainable tourism. Information and communication technologies can help destination management organizations (DMOs) in their work for sustainable tourism development by enabling several applications or tools that can be used for information management, fulfilling tourist satisfaction, supporting community participation, and trying to manage energy usage and its impacts, among others. These include for example Destination Management systems (DMS), Environment Management Information Systems (EMIS), Location Based Services (LBS), Community Informatics (CI), virtual tourism and carbon calculators. 7 ICTs can also offer new distribution channels and raise the level of communication and interaction with and between stakeholders. They have a major role in information collection, analyzing, management and distribution. They help to measure impacts, monitor and report.

The relationship between tourism, technology and sustainable development

Four stages of ICT development can be differentiated in tourism: opportunity, disruption, immersion and usurpation. These stages enabled things like computerized reservation systems, global distribution systems, websites of tourism companies, speed and easiness of reservations and price competition. Through these stages, ICT became an evident part of the everyday life of many consumers. We use social media and innovations like Airbnb.4 ICT systems are widely used in tourism to support important activities in tourism, like accommodation, transportation and communication benefitting both suppliers and tourists. The adoption of them has been affected by changing the competitive scope.

How ICT helps tourism:

• Sharing economy platforms – A potential contributor to a sustainable future with promising outcomes for SDGs is the sharing economy with its platforms widely used in tourism enabled by technology, like Airbnb and Couchsurfing. These platforms may enhance for example cultural learning and intercultural friendships and economic sustainability by providing access to the market for people from developing countries, women entrepreneurs and empowering small or rural businesses. It can be said that platforms provide access to underutilized resources, generate employment and could reduce resource consumption. 6 Thus, sharing economy platforms could contribute to multiple SDG’s 2:  no poverty, gender equality, decent work & economic growth, industry innovation and infrastructure, sustainable cities & communities and responsible consumption & production.

• Tools for DMOs – Applying ICTs in destination management can boost sustainable tourism. Information and communication technologies can help destination management organizations (DMOs) in their work for sustainable tourism development by enabling several applications or tools that can be used for information management, fulfilling tourist satisfaction, supporting community participation, and trying to manage energy usage and its impacts, among others. These include for example Destination Management systems (DMS), Environment Management Information Systems (EMIS), Location Based Services (LBS), Community Informatics (CI), virtual tourism and carbon calculators. ICTs can also offer new distribution channels and raise the level of communication and interaction with and between stakeholders. They have a major role in information collection, analyzing, management and distribution. They help to measure impacts, monitor and report.

• One of the most important tools for destination managers for supporting efforts in sustainable tourism development is Destination Management Systems (DMS) which can be used for actions such as information management, marketing, resource management and tourism Environment Management Information Systems (EMIS) helps tourism planning and decision-making by offering valuable data on tourism impacts at the destination and monitoring emissions and waste management. Location Based Services (LBS) provide information on tourists’ specific locations helping destination management in terms of informing the tourists about sites and attractions to visit and educating them about sensitive locations, appropriate tourist behavior and sustainable choices in the destination. Community Informatics (CI) can be used to aid community engagement, heritage and tradition preservation, interpretation, community cohesion and education of tourists. It includes community involvement in decisions regarding tourism development and planning at the destination. Virtual Tourism (VT) in turn offers a new option for experiencing tourism products or service offerings. It can reduce the degradation of attractions by reducing tourist numbers and providing information about the destination leading to positive environmental impacts. Finally, a carbon calculator is a product innovation that informs tourists about their carbon footprint before and during their trip. 8 The use of technology-based tools in destination management help to achieve at least the SDGs 2 of reduced inequalities, sustainable cities & communities, responsible consumption & production, climate action, life on land and partnerships for the goals.

• Empowerment of local communities – ICTs can have significant direct and indirect impacts on the local community. Tourism literature has emphasized local communities as a key resource for sustainable tourism development, indicating the importance of their inclusion and involvement of them. Tourism, often utilizing the natural and cultural heritage of the communities, is important for community development and poverty alleviation offering inclusive employment opportunities for all equally. With the help of ICTs, it is possible for small businesses to promote and manage their business and bookings. In addition to economic benefits for locals, it enables benefits such as skills development, better access to education, exposure to the world outside the community and strengthened confidence and community engagement. For example, the research found that ICTs had a big role in community development in Malaysia. The use of ICTS in homestay accommodations enabled the community more opportunities for education and ICT training. The local community learnt to use the various booking platforms for accommodation. Communities could improve their access to higher education and skills in hospitality due to the success of the business enabled by ICTs. In addition, with access to the internet the locals were able to educate themselves about environmental conservation. https://joinup.ec.europa.eu/collection/rolling-plan-ict-standardisation/circular-economy

Social Benefits 

An inclusive approach to the development of sustainable tourism destinations has the ability to impact local communities in multiple ways. The major benefit to these communities is the ability to empower residents to make decisions and control the process of development which generates trust, ownership, and social capital among the residents. Gender equality is also another benefit to local communities by improving employment/entrepreneurship opportunities for all facilitating their access to jobs and/or participation in supply-chains, and by creating possibilities for career advancement (UNWTO United Nations World Tourism Organization , n.d.). The positive feedback the communities receive from visitors, including tourists, government workers, students and academics strengthens community pride and fosters a proud sense of shared cultural identity and group-consciousness.

Environmental Benefits 

The participation of local communities in the development of sustainable tourism is fundamental to alter the impact of tourism on the environment. A key motivation for the initiation of many sustainable tourism projects is the ability to properly manage the effects of tourism and conserve natural resources. Projects tend to deter local communities from illegal use and overuse of natural resources as well as they try to integrate the protected natural areas in regional and local development plans and programs. Sustainable tourism development can be a vehicle for protecting and restoring biodiversity.

Economic Benefits 

There are economic benefits to the proper development of tourism with sustainability standards. Economic empowerment in sustainable tourism does not only affect entrepreneurs or government officials, it also provides long term financial benefits to a destination community through tourism entrepreneurship.

When more tourist dollars go directly into the pockets of people in the destination’s local community, they in turn spend most or all of it in their local economies. As more money circulates in the community, this encourages new businesses, creates jobs and reduces poverty. It strengthens communities.

Sustainable tourism offers opportunities to people from all walks of life: minorities, youth and women. It particularly benefits smaller communities that have fewer alternative means of income.

Where women are offering accommodation or selling souvenirs and earning money, invariably they spend it on their families, providing better education for their children and better healthcare. And more jobs means less people abandoning their villages for job opportunities in the cities or even abroad.

Ecotourism promotes economic sustainability by fostering employment and self-employment of disadvantaged groups (youth, women, etc.), the creation of responsible businesses related to active tourism, the reuse of crops and fruit gardens abandoned by the rural exodus of past decades, etc.

Cultural Benefits 

The impact of sustainable tourism in culture is far reaching. The culture of local communities is impacted by the preservation and transmission of cultural and historical traditions, which contributes to the conservation and sustainable management of natural resources, the protection of local heritage, and a renaissance of local cultures, and cultural arts and crafts (UNEP The United Nations Environment Programme, n.d.). Outside local communities, many other stakeholders are also impacted by the cultural interchange experienced as consequence of sustainable tourism. Traveling brings people into contact with each other, it can foster understanding between peoples and cultures (UNEP, n.d.). The cultural exchange between hosts and guests increases mutual sympathy and understanding and reduces prejudice (UNEP, n.d.)

Figure: Adapted from “The Emergence of Sustainable Tourism– A Literature Review”. Bâc, D.P. n.d. Copyright n.d by University of Oradea, Faculty of Economics, Department of Economics