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Managerial Economics for Tourism Management.


Section 4

Specific topics related to green tourism management

Asst.Prof. Komsan Suriya
Faculty of Economics, Chiang Mai University December 19, 2008

Green tourism is more than ecotourism. Ecotourism is an environmental friendly tourism. Green tourism requires seven green parts according to Tourism Authority of Thailand (TAT) in 2008. The seven parts are listed below.
1. Green heart
  Positive attitude, right perception and appreciation toward the environmental friendliness and the concern of the danger threatened by the global warming should be in hearts of all operators in the tourism industry.
2. Green logistics
  Transportation between tourism sites and accommodations should reduce the emission of green house gases, save energy and use non-fossil fuel energy.
3. Green attraction
  Attractions should be managed in accordance to the policy of sustainable tourism especially the commitment in environmental preservation and reduction of green house gases.
4. Green community
  Urban and rural communities which open to tourism should concern about environmental protection and sustainability of tourism resources.
5. Green activity
  Tourism activity that offers pleasure without destroying environment and releasing green house gases to the atmosphere is preferred.
6. Green service
  Tourism service which is environmental friendly and non-hazardous to the atmosphere should be provided.
7. Green plus: The social and environmental responsibility
  Supports from society both financially and non-financially to protect environments at tourism destinations as well as to prevent hazardous tourism which is harmful to the atmosphere are asked for.

According to its seven parts, the management of green tourism is a management of a system. Who is a manger of the system is obviously a national organization that is responsible to the national tourism. The seven requirements need to set a green standard and apply to operators in the tourism industry. The question is what kind of mechanism to make the green tourism concept come true.

Management a system or a policy is different from private and public management discussed in precious sections. It needs reward and punishment. Game theory can be used in this sense. When people follow the standard, they should be rewarded. On the other hand, when people violate the standard, they should be punished.
Theoretically, it is easy to apply the game theory on a paper. Practically, it is more difficult. An organization is needed to be set up for monitoring the issue. Additional budget is needed to reward good operators. Additional cost is also needed to monitor and punish bad operators. Legal actions against bad operators will be chronic and disturbing. Sanctions is not easy like import barriers. Bad operators can continue selling their products to tourists without any practical sanctions.
Competition may be a better solution. Let the market compete in environmental standard to attract green tourists. Give awards to good operators. The spread of information in the market will inform tourists to choose a good operator over a bad one. Bad operators will then gradually leave the industry because of their lost. However, bad operators may cut price and become attractive to tourists again. In my opinion, therefore, the eighth elements of the green tourism should be Green Tourist whose preference is against bad environmental practices in the tourism industry. Education to tourists is crucial to change their attitudes. Advertisement on television is a powerful tool to convey the green message to tourists. Management of green tourism, thus, is on both the supply side and the demand side at the same time.
This article should be referred as
Suriya, Komsan. 2008. Managerial Economics for Tourism Management. [online]

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