Nicola de Palma

The paradox of international governmental tourism institutions: disconnected from the industry's major players

International governmental tourism institutions (let the reader do the exercise of thinking of 1 or 2 of these), have been established with the objective of promoting sustainable tourism, fostering international cooperation, and supporting economic development in various regions of the world. However, a fundamental criticism of these institutions is their apparent disconnect with major players in the tourism industry, including large hotel corporations, airlines, and online booking platforms, who often do not actively participate in these organizations. This situation raises questions about the effectiveness and relevance of these institutions in an industry dominated by large private players.

International governmental tourism institutions have several key roles, including:

• Promotion of sustainable tourism: encouraging practices that minimize the environmental and cultural impact of tourism.

• International cooperation: facilitating collaboration between different countries to improve the quality and accessibility of tourism.

• Economic development: supporting developing countries through the creation of tourism infrastructure and destination promotion.

• Research and data: provide industry statistics, analysis and trends to inform governments and market players.

While these objectives are laudable, the execution of these objectives is often limited by the lack of participation and collaboration of the major players in the tourism industry.

Global tourism is dominated by corporate giants that control a significant portion of the market. These include hotel chains such as Marriott, Hilton and Accor; international airlines such as American Airlines, Emirates and Lufthansa; and digital platforms such as Booking.com, Expedia and Airbnb. These private players have a considerable impact on the direction and evolution of global tourism, often surpassing the influence of government institutions, where they stand out:

• Operational autonomy: large tourism companies operate with a high degree of autonomy, guided by their own commercial interests, which frequently conflicts with the sustainability and development objectives set forth by international institutions.

• Technological innovation: online booking platforms and mobile applications have revolutionized the way tourists plan and book their trips, reducing the relevance of traditional channels promoted by government institutions.

• Global strategies: large hotel chains and airlines implement global strategies that prioritize profitable, high-growth markets, often ignoring the recommendations or emerging market development initiatives proposed by international institutions.

Limitations of international governmental institutions

International governmental tourism institutions face several limitations that compromise their effectiveness in the tourism industry:

• Lack of private sector participation: the absence of major private sector players in these institutions means that proposed policies and recommendations may lack support and implementation in practice. Without the collaboration of these entities, many initiatives remain on paper.

• Bureaucracy and slowness: international institutions are often subject to bureaucratic processes that slow down decision making and policy implementation, in contrast to the agility and speed with which private actors can adapt to market trends.

• Limited funding: relying heavily on contributions from member states, these institutions often face budgetary constraints that limit their ability to implement ambitious, large-scale projects.

• Regional and local relevance: recommendations and policies developed at the international level may not be appropriate or relevant for all regions, especially those with very different socioeconomic and cultural contexts.

Case studies: disconnection and consequences

• Airbnb and non-traditional lodging: Airbnb has transformed the lodging market, offering alternatives to traditional hotels. However, its business model has generated controversy in terms of regulation, taxation and its impact on local communities. Airbnb's lack of participation in the discussions of international institutions has hindered the creation of effective global policies to manage these challenges.

• Online booking platforms: companies such as booking.com and Expedia dominate the online travel booking market. Their ability to negotiate rates and terms with hotels and airlines gives them considerable power that often contravenes the fair pricing and transparency policies promoted by international institutions.

• Hotel chains and sustainability: while global hotel chains adopt sustainability programs, these initiatives are often designed and implemented independently, without aligning with sustainable tourism strategies promoted by international institutions, leading to fragmented and sometimes less effective efforts.

To improve the usefulness and relevance of international governmental tourism institutions, I believe that the following strategies should be considered:

• Encourage private sector inclusion: establish stronger collaborative mechanisms with large tourism corporations, ensuring that their perspectives and needs are considered in policy formulation.

• Agile decision-making: reduce bureaucracy and speed up decision-making processes to respond more effectively to the changing dynamics of the tourism market.

• Adequate and diversified financing: explore alternative sources of funding, including public-private partnerships, to expand the resources available for projects and programs.

• Regional adaptability: develop policies and recommendations that are flexible and adaptable to local and regional contexts, recognizing the diversity of the global tourism market.

• Innovation and technology: incorporate emerging technologies and innovative practices into tourism promotion and development strategies, aligning with market trends and consumer preferences.

In this context, it is crucial to recognize and congratulate the work developed by the Tourism and Society Think Tank (TSTT). Since its inception in 2020, the TSTT has proven to be an influential and committed voice for sustainable and responsible tourism development. Despite having limited resources compared to large government institutions and industry corporations, TSTT has managed to position itself as a benchmark in research and analysis of the interactions between tourism and society. Its dedication and innovative approach have allowed significant advances in the understanding of the social, economic and environmental impacts of tourism, showing that it is possible to generate positive change from an independent and academic perspective.

TSTT has faced the challenge of being a "David" in an industry full of "Goliaths". The organization has demonstrated that, through rigorous research, strategic collaboration and effective communication, it is possible to influence the global tourism agenda. Its reports and studies have provided a solid foundation for the development of more equitable and sustainable policies and practices, earning the respect and attention of key players in the sector. This constant struggle for fairer and more sustainable tourism, even in the face of the giant corporations that dominate the market, is a testament to the power of passion and professionalism.

In the future, it is essential that the Tourism and Society Think Tank continues to work with the same freedom and professionalism that has characterized its work so far. The independence of its research and the quality of its work are critical to maintaining its credibility and its ability to positively influence the tourism industry. By continuing to promote a vision of tourism that prioritizes the well-being of local communities and environmental conservation, TSTT can continue to be a beacon of hope and an engine of change in an ever-evolving industry. Congratulations on your achievements to date, and may you continue to move forward with the same dedication and innovative spirit.

Author: Nicola de Palma

Italian tourism and society journalist