The role of family businesses in sustainable tourism development

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The role of family businesses in sustainable
tourism development

• A/Prof. Janne J. Liburd
• Prof. Jack Carlsen

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Outline

• Family business culture and sustainable tourism
• Researching the role of family businesses in
  sustainable tourism
• Observations and findings
• Case studies and examples
• Further research

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Family business culture and sustainable
development

• Family businesses form the majority of tourism
  and hospitality businesses
• Key issues for family business are the role of
  family members, cultural practice and quality of
  life, and some are also motivated by conservation
  and sustainable development
• The cumulative decisions and actions of a large
  number of family businesses influences tourism
  experiences and sustainability, especially in
  small communities and ecologically sensitive areas

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Researching the role of family businesses in
sustainable tourism

• Many family businesses in tourism and hospitality
  case studied
• Examples of cultural and sustainable practices
  identified
• Roles, values, relations, motivations and
  intentions of family members investigated
• Threats to financial viability, culture and
  succession recognized

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Observations and findings

• Many family businesses embody principles of
  sustainability, democratic equity and cultural
  practices (- and many do not!)
• Family business culture is constantly
  appropriated as a tourism resource, which is used
  to generate economic opportunities
• Simultaneously, a positive sense of place,
  identity, tradition, professional pride and
  mutual respect are reinforced
• Culture and values change over time and across
  generations
• Succession and equitable participation of younger
  family business owners are key to sustainability

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Observations and findings

• Cultural values and sustainability
• Surface values modes of behaviour,
  obligations and everyday practice
• Hidden values tradition, trust, ethics,
  stewardship
• Tradition captured in storytelling
• Trust linked to shared goals, risk-taking, sense
  of place and belonging
• Ethics and democratic equity in internal and
  external business practices
• Environmental stewardship practiced by many
  nature-based family businesses

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Hidden values made visible through storytelling

• The hotel is family-run, and our ambition to
  fulfil all our guests wishes is legendary. In
  the old days, the manager used to pick up the
  guests at the station. And when an American, Mr.
  Johnson, cycled around the world, the girls at
  the reception mended his tyre. He had not
  experienced such helpfulness anywhere else in the
  world. What can we do for you?
• Absalon Hotel, Copenhagen, Denmark

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Case studies and examples

• Inter-and intra-generational equity
• Henry of Pelham Winery (Niagara, Canada)
• Inn Father and Inn Mothers (Denmark)
• Improvement in material and non-material
  well-being
• CSR at Hovborg Inn (Denmark)
• Protection of biodiversity
• OReillys Rainforest Guesthouse (Queensland,
  Australia)
• Local/Global dimensions
• Wild Over Walpole (WOW) Western Australia

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Henry of Pelham Winery (Niagara, Canada)

• Three brothers abandoned their own careers to
  take over their fathers vineyard when he became
  ill and subsequently died.
• Family branding based on venerance and respect
  for the forefathers. In fact, the quality award
  winning wines, themed events and merchandise are
  tangible evidence of their ancestry.
• Clear evidence of fraternity and equity amongst
  the brothers
• Operationalise inter and intra-generational
  equity by respecting founders, sharing decisions
  and building a successful business for their
  children.

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Inn Father and Inn Mothers (Denmark)

• Owning or managing an inn is not a matter of
  occupation and corporate status rather it is
  about being I am the Inn Father
• Parental behaviour directed at guests and
  personnel alike, and regardless of blood affinity
• Virtues of empathy, visibility and helpfulness
• Inter-and intra-generational equity despite
  embedded power distance

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Corporate Social Responsibility and business
ethics (Denmark)

• At Hovborg Inn, village elderly bring a food
  bucket to pick up a hot meal
• No change in price over time, monthly payment
  based on honesty system
• No delivery pick up only so ensuring social
  interaction for the elderly
• Improvement in material and non-material
  well-being, quality of life

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Environmental stewardship at OReillys
Rainforest Guesthouse

• The main goal I would like for the family
  business, is to be more environmentally aware and
  focused. As the business has expanded we have
  lost our obligation to preserve the natural
  environment, which was the key ideology of the
  founding generations. Thus despite our lack of
  current emphasis on eco-tourism and the
  preservation of the environment I hope that one
  day our family business will become the leaders
  of the eco-tourism industry and actively work for
  the preservation of our unique surrounds.

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Research Proposition

• Sustainable tourism development is not a static
  target to be achieved
• It is a process of transformation where
  acceptable levels of change to the home and
  working lives of those family businesses involved
  in hospitality and tourism are of key importance
• Ultimately, it is a matter of quality of life

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Further research

• Need for in-depth understanding of family
  business surface values related to behaviour,
  obligations and practices
• Family business hidden values (tradition, trust,
  ethics, stewardship) links to cultural practice
  and sustainability
• Younger family business members values,
  motivations, intentions, relations and succession
• The role of family businesses in sustainable
  tourism development

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Questions or Comments?