tourism sector leadership

"People want to travel": 4 sector leaders say that tourism will change and grow

The global travel and tourism industry's post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. Image:  Unsplash/Anete Lūsiņa

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Shinya katanozaka, gilda perez-alvarado, stephen kaufer.

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• In 2020 alone, the travel and tourism industry lost $4.5 trillion in GDP and 62 million jobs - the road to recovery remains long.
• The World Economic Forum’s latest Travel & Tourism Development Index gives expert insights on how the sector will recover and grow.
• We asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

The global travel and tourism sector’s post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. The difference in international tourist arrivals in January 2021 and a similar period in January 2022 was as much as the growth in all of 2021. However, with $4.5 trillion in GDP and 62 million jobs lost in 2020 alone, the road to recovery remains long.

A few factors will greatly determine how the sector performs. These include travel restrictions, vaccination rates and health security, changing market dynamics and consumer preferences, and the ability of businesses and destinations to adapt. At the same time, the sector will need to prepare for future shocks.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The World Economic Forum's latest Travel & Tourism Development Index highlights many of these aspects, including the opportunity and need to rebuild the travel and tourism sector for the better by making it more inclusive, sustainable, and resilient. This will unleash its potential to drive future economic and social progress.

Within this context, we asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

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Are you a 'bleisure' traveller, what is a ‘vaccine passport’ and will you need one the next time you travel, a travel boom is looming. but is the industry ready, how to follow davos 2022, “the way we live and work has changed because of the pandemic and the way we travel has changed as well”.

Tony Capuano, CEO, Marriott International

Despite the challenges created by the COVID-19 pandemic, the future looks bright for travel and tourism. Across the globe, people are already getting back on the road. Demand for travel is incredibly resilient and as vaccination rates have risen and restrictions eased, travel has rebounded quickly, often led by leisure.

The way many of us live and work has changed because of the pandemic and the way we travel has changed as well. New categories of travel have emerged. The rise of “bleisure” travel is one example – combining elements of business and leisure travel into a single trip. Newly flexible work arrangements, including the opportunity for many knowledge workers to work remotely, have created opportunities for extended travel, not limited by a Monday to Friday “9 to 5” workweek in the office.

To capitalize on this renewed and growing demand for new travel experiences, industry must join governments and policymakers to ensure that the right conditions are in place to welcome travellers as they prepare to get back on the road again, particularly those who cross international borders. Thus far, much of the recovery has been led by domestic and leisure travel. The incremental recovery of business and international travel, however, will be significant for the broader industry and the millions who make their livelihoods through travel and tourism.

Looking ahead to future challenges to the sector, be they public health conditions, international crises, or climate impacts, global coordination will be the essential component in tackling difficult circumstances head-on. International agreement on common – or at least compatible – standards and decision-making frameworks around global travel is key. Leveraging existing organizations and processes to achieve consensus as challenges emerge will help reduce risk and improve collaboration while keeping borders open.

“The travel and tourism sector will not be able to survive unless it adapts to the virtual market and sustainability conscience travellers”

Shinya Katanozaka, Representative Director, Chairman, ANA Holdings Inc.

At a time when people’s movements are still being restricted by the pandemic, there is a strong, renewed sense that people want to travel and that they want to go places for business and leisure.

In that respect, the biggest change has been in the very concept of “travel.”

A prime example is the rapid expansion of the market for “virtual travel.” This trend has been accelerated not only by advances in digital technologies, but also by the protracted pandemic. The travel and tourism sector will not be able to survive unless it adapts to this new market.

However, this is not as simple as a shift from “real” to “virtual.” Virtual experiences will flow back into a rediscovery of the value of real experiences. And beyond that, to a hunger for real experiences with clearer and more diverse purposes. The hope is that this meeting of virtual and actual will bring balance and synergy the industry.

The pandemic has also seen the emergence of the “sustainability-conscious” traveller, which means that the aviation industry and others are now facing the challenge of adding decarbonization to their value proposition. This trend will force a re-examination of what travel itself should look like and how sustainable practices can be incorporated and communicated. Addressing this challenge will also require stronger collaboration across the entire industry. We believe that this will play an important role in the industry’s revitalization as it recovers from the pandemic.

How is the World Economic Forum promoting sustainable and inclusive mobility systems?

The World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive.

• Through the Clean Skies for Tomorrow Coalition , more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030.
• In collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide.
• The Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight.
• The Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials.
• The Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies.
• In collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide.
• The Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit.
• The Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap.
• The Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition.
• The Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems.

Contact us for more information on how to get involved.

“The tourism industry must advocate for better protection of small businesses”

Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality

In the next few years, I think sustainability practices will become more prevalent as travellers become both more aware and interested in what countries, destinations and regions are doing in the sustainability space. Both core environmental pieces, such as water and air, and a general approach to sustainability are going to be important.

Additionally, I think conservation becomes more important in terms of how destinations and countries explain what they are doing, as the importance of climate change and natural resources are going to be critical and become top of mind for travellers.

The second part to this is we may see more interest in outdoor events going forward because it creates that sort of natural social distancing, if you will, or that natural safety piece. Doing outdoor activities such as outdoor dining, hiking and festivals may be a more appealing alternative to overcrowded events and spaces.

A lot of lessons were learned over the last few years, but one of the biggest ones was the importance of small business. As an industry, we must protect small business better. We need to have programmes outlined that successfully help small businesses get through challenging times.

Unfortunately, during the pandemic, many small businesses shut down and may never return. Small businesses are important to the travel and tourism sector because they bring uniqueness to destinations. People don’t travel to visit the same places they could visit at home; they prefer unique experiences that are only offered by specific businesses. If you were to remove all the small businesses from a destination, it would be a very different experience.

“Data shows that the majority of travellers want to explore destinations in a more immersive and experiential way”

Steve Kaufer, Co-Founder & CEO, Tripadvisor

We’re on the verge of a travel renaissance. The pandemic might have interrupted the global travel experience, but people are slowly coming out of the bubble. Businesses need to acknowledge the continued desire to feel safe when travelling. A Tripadvisor survey revealed that three-quarters (76%) of travellers will still make destination choices based on low COVID-19 infection rates.

As such, efforts to showcase how businesses care for travellers - be it by deep cleaning their properties or making items like hand sanitizer readily available - need to be ingrained within tourism operations moving forward.

But travel will also evolve in other ways, and as an industry, we need to be prepared to think digitally, and reimagine our use of physical space.

Hotels will become dynamic meeting places for teams to bond in our new hybrid work style. Lodgings near major corporate headquarters will benefit from an influx of bookings from employees convening for longer periods. They will also make way for the “bleisure” traveller who mixes business trips with leisure. Hotels in unique locales will become feasible workspaces. Employers should prepare for their workers to tag on a few extra days to get some rest and relaxation after on-location company gatherings.

Beyond the pandemic, travellers will also want to explore the world differently, see new places and do new things. Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture. While seeing the top of the Empire State building has been a typical excursion for tourists in New York city, visitors will become more drawn to intimate activities like taking a cooking class in Brooklyn with a family of pizza makers who go back generations. This will undoubtedly be a significant area of growth in the travel and tourism industry.

Governments would be smart to plan as well, and to consider an international playbook that helps prepare us for the next public health crisis, inclusive of universal vaccine passports and policies that get us through borders faster.

Understanding these key trends - the ongoing need to feel safe and the growing desire to travel differently - and planning for the next crisis will be essential for governments, destinations, and tourism businesses to succeed in the efforts to keep the world travelling.

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Home > Books > Tourism

Effective Leadership in the 21st Century: Lessons for the Tourism Sector in the African Continent

Submitted: 19 June 2020 Reviewed: 01 September 2020 Published: 18 September 2020

DOI: 10.5772/intechopen.93844

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Although Africa has been one of the world’s fastest growing tourism regions, when comparing it to the rest of the world, tourism still lags behind. Tourism is a dynamic and a competitive industry that continues to develop whilst the tourists’ preferences are changing. Consequently, leading and managing in the tourism sector is of great importance, particularly in the 21st century. The purpose of this paper is to explore leadership concepts to draw lessons for the tourism sector in the African continent. Leadership in the African continent remains questionable and controversial; the nature of effective leadership has been the subject of great debate. The findings reveal the prominent African leadership concepts from Ubuntu, Culturally embedded values, Communalism, Common good and Paternalism as some of the existing leadership concepts that could be applicable to an effective leader in the 21st century in the tourism sector in Africa.

• effective leadership

Author Information

Portia pearl siyanda sifolo *.

• Tshwane University of Technology, Pretoria, South Africa

*Address all correspondence to: [email protected]

1. Introduction

The employees play an essential role in the delivery of quality tourism products or services, therefore, Africa needs capable institutions and transformative leadership at all levels to achieve the African Union (AU) Agenda 2063 aspirations. Tourism is among the priority areas in the Agenda 2063 (a blueprint to drive Africa’s development and transformation for the next 50 years) that have immediate potential for growth and job creation in Africa [ 1 ]. The tourism sector is identified as one of the diversified economy for expanded strength to outside financial stuns whilst being the sector that would see intra-African trade escalating [ 1 ]. Moreover, the United Nations World Tourism Organisation (UNWTO) estimate that by 2030, there will be 1.8 million international tourist arrivals - which means an average of 5 million people crossing international borders (consuming tourism products and services) every single day [ 2 , 3 ]. This indicates the resilience of the tourism sector, whilst challenging the leaders in the travel and tourism industry to be more effective and efficient. Being the industry with low barriers to entry, tourism sector provide job opportunities to the well qualified and low skilled people at a domestic and international level. A number of global trends and risks ranging from wider fiscal deficits, unorthodox monetary policies, and slow economic growth after COVID-19 lockdown, political risks, global supply chains, security risks, and inflation easily influence the tourism scene. Therefore, effective leadership is necessary globally for the tourism sector to thrive due to global competitive environment and other unpredictable complexities challenging various organisations. It is paramount to achieve the continental aspiration set in the Agenda 2063.

We live in the world where travellers demand greater value for products and services, hence, Destination Marketing Organisations (DMO) work tirelessly to promote and market high quality tourism products and services. Leadership is crucial in achieving positive outcomes; therefore, the cultivation of leaders with exceptional character and skills is important to Africa’s tourism landscape. This chapter presents the state of leadership in the African context, draws lessons for the tourism sector in Africa from early approaches of leadership and African concepts ranging from Ubuntu, Culturally embedded values, Communalism, Common good and Paternalism.

2. Why leadership in Africa?

There is enough coverage of development and application of leadership perspectives in western organisations; information is limited on tourism leadership in Africa. “Leadership in the African continent remains questionable and controversial; the nature of effective leadership has been the subject of great debate. Masango asserts, “African leaders who used traditional method of leadership were viewed by some westerners as barbaric” [ 4 ]. Dieke [ 5 , 6 , 7 ] states that the problems in Africa’s tourism are “closely related to structural imbalances in their overall development pattern, and there are no clear strategies for development in general due to tourism not being integrated with other economic sectors”. Okupe, Ward and Ogechi concur that lack of political is an impediment to tourism development in Africa. Furthermore, “lack of implementable tourism master plans contributes to the under-development of the African tourism industry” [ 8 , 9 , 10 , 11 ].

A study conducted by Zhang, Khan, Kumar, Golpîra, and Sharif on tourism, logistical operations and environmental degradation warns that the carbon emissions and fossil fuel emissions associated with logistics development may pollute environmental sustainability in the end and create negative effects on inbound tourism [ 12 ]. Hence, there is a need for responsible and effective leaders. Therefore, contributing to the academic gaze, the prominent African leadership concepts for the tourism sector in Africa is critical. Several studies have contributed to leadership and management in Africa [ 13 , 14 , 15 , 16 ]. Among them is a study by Nicolaides on management and leadership in the hotel industry in South Africa, where he indicate the adoption of paternalistic approach by managers due to their vital role as business leaders [ 16 ].

There is still limited information on travel and tourism management that consider African leadership concepts. Okupe identify leadership as one of the key gaps in the operation and management of tourism in Africa [ 10 ]. The online poll results on tourism leadership conducted by the Southern and East African Tourism Update revealed that 58% of the participants thought that South Africa’s collective tourism leadership was severely lacking in May 2020 when it comes to recovery post-COVID-19 [ 17 ]. Whilst 28% indicated that during the time, there were plenty of discussion but no action and only 14% believed that leaders were doing their best in trying times [ 17 ]. With myriad of factors covered in the literature, the development and application of leadership concepts embracing cultural values among African organisations that incorporate “African Leadership” in their practice, still needs attention. The difference in the underlying principles of management in Africa and the West remain evident. According to Nkomo, African states are described as ‘irremediably corrupt’; ‘hopeless’; ‘criminal’; ungovernable’ or generally in ‘chaos’ [ 8 ]. Although the challenges facing the travel and tourism industry in the continent are vast, this chapter embraces the Ubuntu, Culturally embedded values, Communalism, Common good and Paternalism to draw leadership lessons. Dieke [ 5 ] states that is it essential for the tourism sector to attract the quality staff to meet the increasingly globalised service standards. A background on the state of the tourism industry in the African continent is of importance.

3. The state of travel and tourism in the African continent

Africa remains a continent with authentic and diverse cultures. There are several top-quality natural and man-made attractions, high standards of accommodation and infrastructure and a good transportation network with the potential to attract millions tourists annually [ 5 ]. Although Africa has been one of the world’s fastest growing tourism regions, tourism still lags behind when comparing it to the rest of the world. The World Travel and Tourism Council (WTTC) Competitiveness 2019 report by the World Economic Forum (WEF) indicates that the Sub-Saharan Africa’s travel and tourism market is very small. In 2018, the travel and tourism industry’s gross domestic product (GDP) of African countries totalled approximately $42.1 billion, with 37.4 million tourist arrivals in 2017, about 1.6% and 3.0% of the global total, respectively [ 18 , 19 ].

Furthermore, the COVID-19 widespread disturbance brought universal travel to a sudden stop and altogether influenced the tourism industry. Worldwide and household tourism esteem chains were disturbed. COVID-19 widened the gap in the total number of tourist’s receipts when comparing with the rest of the world. According to the United Nations Conference on Trade and Development [ 3 ], worldwide compression in tourism entries may have obliterating financial results as a few creating nations are profoundly subordinate on tourism. One may ask a question of whether COVID-19 responses by leaders from different tourism organisation could be a good start to determine the African leadership styles and behaviours. It is during challenging times where effective leadership could be explored in this dynamic and a competitive industry.

Prior COVID-19, there were 1407 million international tourist arrivals in 2018, a 6% increase on the previous 4 years; tourism receipts amounted to $1480 billion, an increase by 4.4% higher than global GDP growth as in the previous 8 years [ 20 ]. Opportunities for tourism development remain vast, yet limited due to various challenges facing the leaders in the continent; therefore, understanding the travel and tourism sector trends and issues in Africa is paramount to achieve the aspirations on the sector as indicated in the Agenda 2063, as well as to provide practical leadership solutions. This chapter is by no means proposing solutions to the myriad challenges facing the tourism sector in Africa, but merely intends to draw leadership lessons from African concepts.

Table 1 presents the summary of the selected challenges in the travel and tourism industry in Africa.

Top challenges confronting leaders in the travel and tourism industry in Africa.

Globally, the tourism industry is dynamic, and it is viewed as a major force in the construction and development efforts of governments in developing countries. For example, the study conducted by [ 12 ] on tourism logistical operations and environmental degradation in Thailand pleads with “governmental authorities to enforce green practices in logistical and transport-related operations, and need to increase tourist safety and security, to attract foreign tourists respectively”. The industry needs leaders and managers with a sense of current and future developments and the ability to work with various stakeholders. “A changing world demands a new leadership style emphasising societal impact and commitment to the common good” [ 36 ]. Furthermore, African leadership has become valuable in the 21st century. In today’s world, effective leadership is significant for the travel and tourism sectors to thrive; the industry underpins much of the global economic activity. The United Travel predicts that 8 million new jobs will be created in Africa because there was jobs rise in the total number of travel and tourism from 22.8 million in 2017 to 30.8 million in 2028 [ 3 , 5 ]. The previous statistics provide hope for the sector. A glimpse of the general leadership approaches is significant to better explore leadership theories.

4. Lessons from the early approaches of leadership concepts

There are many schools of thought and approaches to leadership; therefore, reviewing theories of leadership is essential. Early approaches to the study of leadership adopted universal or a generic perspective. Mullins produced the framework for the study of managerial leadership as indicated in Figure 1 [ 37 ]. The primary composed approach to examining leadership dissects individual, mental, and physical characteristics of solid pioneers. For the last four thousand years, each generation has written about the art and science of leadership [ 38 ]. “Most leadership theories have been developed in capitalist western countries up to now and do not take into account the view and learnings from countries that have been in deep crises for many years” [ 13 , 32 ]. Early approaches to leadership in the African tourism industry are captured by Gyr who revealed the early forms of travel and types of journey occurring in Africa. In his article, the “History of Tourism: Structures on the Path to Modernity” reveals that a well-travelled writer with an interest in both history and ethnology visited Egypt, North Africa, the Black Sea, Mesopotamia and Italy. This is one of documented early forms of travel and types of journeys occurring in Africa. Leading often means having the ability to effectively direct and guide a team to achieve, and sometimes exceed, objectives set, which contributes to the company’s overall results.

Framework for study of managerial leadership. Source: Mullins (2018).

There are common themes about the nature of leadership and leaders captured in every continent in the context of politics, the military, philosophy and businesses. Research literature on tourism reveals that leadership has not received the necessary attention in both tourist destinations and networked environments in general [ 39 ]. The work by [ 28 ] covers tourism and environmental degradation in China, while Zhang, Khan, Kumar, Golpîra, and Sharif covered logistical operations and environmental degradation from Thailand perspective [ 12 ]. Although tourism businesses in Africa are not isolated from developed and developing communities, there is interdependence of the different sectors, individuals and groups involved in tourism [ 4 ]. Hence, there is a school of thought on various contingency or situational leadership, where the behaviour of the leader is explored by looking at the situation at hand or the context. For example, the environment in which the tourism sector operates is increasingly complex and competitive, leaving organisations to structure themselves in order to get quick, flexible and innovative responses. There has been a rise within the number of tourism organisations experiencing changes due to increasing tough financial climates, competitive advertising conditions and continuous technological changes over the final few decades. This ever-changing global landscape has led to a number of challenges as well as opportunities that organisations, its leaders and employees can embrace. Numerous tourism organisations that have had to re-assess their working models. The tourism sector continues to develop whilst the tourists’ preferences are changing as the tourism consumers are more mindful of the significance of their free time and are more specific in their choice. Pechlaner, Kozak, Volgger & Volgger [ 13 , 39 ] refer to the contingency theory by Fiedler, the leader-member exchange (LMX) theory by Graen and Uhl-Bien and transactional/transformational theory by Bass, Avolio [ 40 ] and Spencer et al. as successful theories in describing and explaining effective leadership in firms and other organisations. Consequently, leading and managing in the tourism sector is of great importance, particularly in the 21st century. Therefore, creative thinking enables leaders to contribute novel insights that can open up new opportunities or design mutually beneficial effective work groups.

In the 16th century, the focus of organisations was on management and improving productivity (refer to Figure 1 ). According to Iszatt-White , et al. , in the 1880s and 1890s the core ideas of ‘scientific management’ were developed by Frederick Winslow Taylor and first published in 1903; they were later expanded to the principles of scientific management [ 41 ]. Among Tylor’s co-workers was Henry Laurence Gantt who left legacies to production management by coming up with the ‘task and bonus’ system that is linked to the bonus paid to managers to how well they taught their employees to improve performance [ 41 ]. Among Gantt’s contribution is a Gantt chart commonly used in project management (which is also used in the travel, tourism and hospitality sectors) [ 42 ]; it is one of the most popular and useful ways of showing activities (tasks or events) displayed against time. Research into travel, tourism and hospitality has an established tradition of investigating leadership issues (although not always appearing under the label of “leadership”) [ 39 ]. In this chapter, Gantt’s contribution is highlighted because of its use on tracking project schedules (an essential component in effective leadership in the tourism sector). Gantt chart shows additional information about the various tasks or phases of the project; for example, how the tasks relate to each other, how far each task has progressed, what resources are being used for each task and so on.

We live in the world where dynamism of the markets and the current business scenarios require companies to have effective leaders that will be able to manage several projects simultaneously. Projects in the tourism industry are not new, the projects in a corporate context take about 50% of the organisational budget; hence, the nature of leadership and the characteristics of great leaders are debated intensely.

In the 20th century, the trait theories were developed where attributes or characteristics of ‘great men’ were examined. These theories presumed that leaders are born and that successful leaders have similar traits. The trait theory is concerned with the characteristics or traits that a person brings to the field in which leadership is worked out. Authors cite leadership traits to include, intelligence, assertiveness, good vocabulary, attractiveness, self-confidence and other attributes [ 22 , 43 ]. Behavioural theories sought to measure the observable characteristics that leaders demonstrate, while theorists researched leadership as a set of behaviours. Pioneering studies are those from the University of Ohio State in the 1950’s that identified two behavioural dimensions, consideration and initiating structure; and from the University of Michigan which found two categories of leadership behaviour (employee orientation and production orientation). Another Behavioural approach to leadership is the Managerial Grid from early leadership studies developed in the early 1960s by management theorists Robert Blake and Jane Mouton as the basis for developing a two-dimensional grid for appraising leadership styles. It used the two behavioural dimensions “concern for people” and “concern for production” and evaluated a leader’s use of these behaviours, ranking them on a scale from 1 (low) to 9 (high).

The 21st century present new approaches or leadership paradigms that “share a number of common themes relating to the emotional or symbolic aspects of leadership” [ 41 ]. The 21st century refers to an era where characteristics of the new competitive landscape are driven by the continuing technological revolution and the increasing globalisation of business and economic activity [ 26 ]. In this era, leadership is often of a transactional nature in complex, competitive, tough financial climates and continuous technological changes. Andersen states that the managers and leaders have the responsibility to carry out risk analysis to reveal threats to ensure successful strategic execution [ 44 ]. The tourism industry is interlinked and prone to rapid developmental trends. Therefore, looking at the leadership approaches in Figure 1 , one may argue that there are many skills required from the travel and tourism managers or leaders.

The characteristics of a leader range from personal management and the ability to motivate a team [ 45 ]. Leaders are famous for being proactive and positive, they communicate well and are good listeners, and they have integrity. They are approachable and are role models. They tend to focus on strengths and have respect and trust for the employees (which is part of servant leadership; it is an effective leadership approach that enhances work engagement). They observe the ‘golden rule’ and are sensitive to others. These characteristic are essential for a travel and tourism leader as they apply structured methods to allocate resources effectively. In other words, travel and tourism leaders are expected to be proactive (lead by an example in case there is a need for problem prevention), reactive (constant presents of there is a problem) and inactive at some point (trusting the group of stakeholders or a team will achieve common goal). Since there are numerous definitions of leadership, perhaps capturing few definitions is prudent.

5. Leadership definition

Leadership has been extensively studies for centuries. The concept is famous for being defined from individuals’ perspectives and the aspects that interests them most. Emanating from a historical and impactful leadership definition by Stodgill, “leadership is the initiation and maintenance of structure in expectation and interaction” [ 14 ]. The study by Masango on leadership in the African context reveals that, “leadership is a group phenomenon’, meaning that, there “are no leaders without followers” [ 14 ]. In other words, a definition of leadership in the African context must consider the collective aspect. He further stated that “leaders use influence to guide groups of people through a certain course of actions or towards the achievement of certain goals”, leadership is therefore, goal directed, and plays a significant part in the life of a group, tribe or community” [ 14 ].

With the changes in the societies, markets, customers, competition, and technology around the globe, organisations are forced to clarify their values, develop new strategies, and learn new ways of operating; hence, the definition of leadership has evolved to suite a certain context. Meyer and Boninelli concur that leadership has no sequential beginning or end, it is rather critical to understand perspectives on what leadership is about, and the implications for organisations in the modern economy [ 38 ]. One may then argue that leadership is a choice and being a good leader is a skill that anyone can learn. Some believe that leadership is inherent in certain individuals; hence, it is referred to as an essential in achieving the vision of the organisation. Others believe that leaders rise from the masses when the situation demands it. According to Amanchukwu, Stanley and Ololube, good leadership is developed through a never-ending self-study, education, training, and the accumulation of relevant experience [ 13 ].

Leadership should be visionary, motivating, and stimulating for the team members; hence, the transformational leadership style is advocated for tourism leaders [ 40 ]. Thomas distinguishes leadership from management by identifying five nuances not found in management such as giving direction, providing inspiration, building teams, setting an example and being accepted as a leader [ 46 ]. Leadership is viewed as a process (focusing on what leaders actually do) and as a property (the set characteristics attributed to individuals perceived to be leaders) [ 47 ]. Therefore, looking at the travel and tourism organisations, cooperation as the base in the organisations and their environment is critical. This permeates through the consistent travel and tourism management practices, processes, procedures, tools and techniques (value chain). Leadership is an effective tool to be used by the travel and tourism managers to influence outcome, otherwise, lack of leadership skills could be directly associated with failure which my negatively affect the contribution of tourism in the country and the rest of the continent. Perhaps, distinguishing the differences between leadership and management in projects is paramount.

6. Difference between tourism leadership and tourism management

Linking the association between leadership characteristics and successful managers offers invaluable information. Henceforth, differentiating between the roles of a manager or a leader in context of tourism leadership and management is difficult. Welch differentiated between the manager (someone who works to carry out the aims of the organisation) and the leader (serves to create new aims, tweak old ones, or initiate new courses of action) [ 48 ]. Drawn from [ 49 ] work, the difference between tourism leadership and tourism management in this chapter is summarised as follows;

Tourism management “refers to the oversight of all activities (related to the travel, tourism and hospitality industries) of planning and organizing through decision-making process which enhance effectiveness and efficiency of the tourism industry”.

Tourism Leadership is a “process of leading others for achievement of objectives; the concept encompasses motivating and guiding people to realize their potential and achieve tougher and challenging organizational goals in travel, tourism and hospitality industry”.

Leaders and managers are there to serve the organisational need [ 9 ]. Normally they require a multi-functional inclusion. Understanding the internal and external perspective of management as a manager and as a leader has a significant effect to the success in the organisation. An internal perspective of management is within the organisation is where by scarce resources are used more effectively while improving the existing procedures and methods to ensure efficient product or a service. An external perspective focuses on developing and improving quality of life. Therefore, tourism manager or a leader needs to have knowledge of both the internal and external perspective to deal with a number of global trends and risks (wider fiscal deficits, unorthodox monetary policies, slow economic growth after COVID-19 lockdown, political risks, global supply chains and security risks and inflation) among others. The performance of a tourism manager and the effectiveness of a leader are both measured in terms of the performance of the team. Therefore, managerial and emotional competencies (as factors of leadership) have important causative effects in determining the success of a tourism organisation; although it is important to note that success can be negatively affected if the wrong leadership style is chosen and/or if the tourism manager or a leader is inexperienced (Novo, Landis and Haley, 2017). Although management and organisational aspects have been explored, it is critical to highlight that the focus of this chapter remains with exploring effective leadership in the 21st century. The following section will focus on the dynamic tourists’ preferences in the 21st century, with an intention to highlight the need for effective leadership.

7. Why effective leadership in the 21st century?

Effective leadership is one of the main and primary drivers for growth, development and innovation. Effective leadership is meaningful, impactful and profound. Effective leadership is one of the main and primary drivers for growth, development and innovation in the 21st century. According to [ 26 ] effective strategic leaders have to operate under conditions of uncertainty; they must view a volatile environment as presenting opportunities and employ an entrepreneurial mindset that allows them to identify and exploit those opportunities in contexts with significant ambiguity.

Effective leaders are able to keep their teams engaged. Kumar concur that effective leaders influence the entire organisation and people outside the organisation [ 50 ]. Their influence extends beyond the boundaries of the organisation as they continually identifying and interrogating the ethical issues [ 38 ]. They adapt and modify their leadership styles in order to maintain employee engagement, even if there are four generations in the workplace. It is critical to engage stakeholders, whilst minimising risk to adopt and maximise benefits through a focus on the organisational, cultural and people aspects of business transformations. Effective leaders must also understand the modern tourist concept. Vail, Moreland and Wilson warns against the high-quality tourist services that require skilled and motivated employees and that quality service, in turn, is the key to both higher profitability and good jobs [ 33 ].

Why the focus on a ‘modern tourist’? Modern tourists exhibit a growing concern about the impact of their acts; the manner in which they choose to consume the tourism products and services has significantly changed. Tourists make choices based on different factors, from personal factors such as personality or aspirations, together with household factors like lifestyle or decision-making style; these affect their decisions [ 51 ]. A new type of consumer (in this case ‘modern tourist’) was born as a result of the technological evolutions of the late 20th century as well as a consequence of globalisation, hence today’s tourists are increasingly connected [ 51 ]. This is evident from the work of Vail, Moreland and Wilson who define the modern tourists as a growing market segments with many baby boomers with ample discretionary time and income; they are experiential tourists seeking low-stress outdoor activities, supplemented by quality dining, lodging, shopping, and cultural amenities. They further state that “many younger adventurers seek destinations offering outstanding expedition hiking, cross country skiing, and mountain biking, but they also want cell phone and internet coverage, a great meal, lively night life, and a comfortable bed after their exertions” [ 51 , 52 ]. This point is also emphasised by [ 52 ] that “millennials don’t simply represent another generation of travellers; their preferences and lack of predictability make them different”, as a result, tourists demand greater value, more experiences and higher levels of quality ([ 24 ]: 01), hence, the new ethos in the tourism industry allows the tourists to take responsibility when travelling.

Tourists prefer to engage in physically and intellectually active holidays, with a growing demand for not only recreational activities, sport and adventure, but for knowledge of the history, culture and environment of the places being visited [ 24 ]. These new types of tourism are more closely linked to culture, nature, health, religion, etc., are growing three times faster than forms that are more traditional. Therefore, it is essential for a 21st century leader to possess the characteristics that makes them see opportunities everywhere; they should strive for excellence and live with an entrepreneurial spirit. They must work with a generous purpose and embrace culture in order to cater for the 21st century tourists.

Leadership in the 21st Century should be based on three pillars: values based leadership, network leadership and systemic resilience. Good leadership in Africa always shares life to others [ 32 ]. More lessons can also be drawn from the concept of responsible leadership for a leader to be 1) able to make informed ethical judgements about existing norms and rules; 2) displaying moral courage and aspiring to positive change; 3) engage in long-term thinking and in perspective taking; 4) communicate effectively with stakeholders; and 5) participate in collective problem-solving. In the 21st century, the leader must have company’s intention to do the right things and act in ways that are good for society. Ethical leadership has a major impact on the behaviour and attitudes of employees as it encourages the employees to perform a higher quality of work performance [ 7 , 50 , 53 ].

Effective leadership is gained through a combination of business knowledge and personal skills including determination, being open-minded, self-reflection, and excellent communication and team-building skills. Therefore, enhancing innovation is paramount in managing or leading in the services sector. Critical thinking is a primary tool for dealing with dilemmas and paradoxes, the support and encouragement of critical thinking is a key characteristic of effective leadership processes [ 54 ]. Stošić and Milutinović state that service excellence and innovation is a necessity in the tourism sector [ 48 ].

8. African leadership concepts: lessons for the tourism sector

There are factors influencing development and application of African leadership perspective. These factors vary from one country to country and from continent to continent. Drawing from the work by Nzelibe, there are certain trends that have influenced modern thought-system of management in Africa; these are guided by certain basic, traditional values, assumptions, and principles [ 55 ]. Hence, he refers to them as traditionalism, which has to do with adherence to accepted customs, beliefs, and practices that determine accepted behaviour, morality, and the desired characteristics of the individual in African society [ 21 , 55 ]. Based on Nzelibes’ proposition, one may argue that effective leaders can apply the principles and practices in their management systems in the tourism sector for common good. For example, destinations are reinventing themselves using socio-cultural assets to attract tourists. This has been a common practice, particularly in leadership, where cultural expression involves issues and conflicts connected to the leaders and followers inside a variety of international, national, regional and organisational contexts [ 56 ]. Figure 2 presents the African leadership concepts.

Selected African leadership concepts.

Another African concept is “communalism”, which stems from the belief that the individual is not alone, but belongs to the community [ 55 , 57 ]. Communalism focuses on the community above the individual [ 50 ]. It implies a way of decision-making which is based on consensus [ 57 ]. African communalism is about communal feelings, world views, moral and cultural values based on closed-knit relationship among their kith and kin within a socio-cultural setting [ 57 ]. In other words, an effective tourism leader in the 21st century must see himself/ herself as part of the community, respect the values followed in that cultural specific setting and be in a position to live by the principles favouring the position held and the community. The tourism industry leadership cannot work effectively without community support and involvement [ 4 ]. Tourism is a community product, and it is therefore necessary to have community and local capabilities such as community leadership and formal and informal networks directly involved in tourism development and promotion efforts [ 30 ]. In Dieke’s words “tourism must be profitable to the communities to compensate for any dislocation of everyday life; it should gain the acceptance of the communities in relation to the type, scale and location of tourism development and planners should consider the need for protection of certain communities and sites and to meet their acceptable cultural standards” [ 5 , 50 ].

The third African concept covered in this chapter is “Ubuntu” which is an African value meaning ‘humanness’, sometimes referred to as humanity to others. It also means ‘I am what I am because of who we all are’, or ‘a person is a person through people’ [ 18 , 21 ]. The concept of Ubuntu goes beyond a sense of loyalty to something that is more deep-seated; is provides a sense of belonging and purpose [ 58 ]. As indicated earlier, that leadership is a group phenomenon that plays a significant part in the life of a group, tribe or community, hence, the trust relationship is of critical importance. The key values entrenched in African leadership include, being respectful to others and treating them with dignity. These values are reflected in the tourism sector where service excellence is at the centre of customer care and stakeholder engagement. Service excellence, customer care and stakeholder engagement cannot be obtained without trust and common good. Ubuntu is a critical African concept to an effective leader in the tourism industry as it promotes responsible tourism.

The forth concept is Paternalism, which is an African concept based on interconnectedness and solidarity [ 4 , 41 ] Paternalism is defined as the managers’ personal interest in workers’ off-the-job lives and personal problems, and managers’ effort to support the employees to achieve personal goals and improve welfare [ 35 ]. Paternalism is a policy or practice that is fundamental for leaders to make and base their decisions on, so that they can act accordingly for the common good; whilst, constructing proper organisational practices. This concept can be beneficial to the leaders in the tourism sector. For example, [ 59 ] refer to paternalistic leadership behaviour and affective organisational commitment as a concept that will have direct and indirect effects on performance of small businesses and therefore the performance of tourism destination. Paternalism is conceptualised in two types: authoritaritative and benevolent. Authoritaritative paternalism values job and does not include a sincere generosity, whilst benevolent paternalism emphasises the commitment of the subordinate and an intimate care of the manager for the subordinate.

Learn from their culture and customs.

Listen to what they have to say.

Create a platform for dialogue and participation.

Build on local wisdom and community assets.

Build the community’s capacity to find solutions to their own problems.

Build sustainable solutions and encourage ownership of assets.

Identify and prioritise the community’s needs with the community.

It is expensive in the short term, but cheap in the long term, which means the impact will be felt long after the fact.

Work with legitimate and credible community leadership.

Build-up process is slow, deep and strong.

Serve the community’s agenda and build the relationship.

Donor money and time is well invested for future generations.

“Most African businesses experience dilemma when choosing leadership approaches” [ 38 ]. African traditional leadership has been confined to communal areas and practiced African leadership that is “centred on culturally embedded values such as communalism, togetherness, rationalism, consensus and unity; these are encapsulated in the ethos of Ubuntu” [ 4 , 41 , 60 ]. Africa’s tourism industry requires leaders that understand the industry, its complexity and their role within it [ 8 ]. Ubuntu as a “traditional African value that prompts the establishment of a two way trust relationships as the essence of successful leadership” [ 41 ]. Leaders such as Nelson Mandela, Kwame Nkrumah and Desmond Tutu are famous for their culturally embedded values/approaches. There is a great need for the African continent to consider service leadership and ethical leadership, which is characterised by integrity, competence, responsibility, accountability, fairness and transparency. Companies often face challenges building leadership potential and effectively managing the project. There is a need to train the employees to move into leadership positions, not only for succession purposes but also for empowerment and acknowledgement. According to [ 9 , 16 ], cultural enlightenment and awareness of employee diversity are critical leadership trait that encourages cross-cultural teamwork. This trait is important in the travel, tourism and hospitality sector where there is a higher proportion of women. Women generate higher returns on equity, while running balance sheets that are more conservative when it comes to business performance. In fact, where women account for the majority role players in the tourism sector, inclusion is necessary. The UN report indicated that in January 2017, only 10 women were serving as Head of State and 9 were serving as Head of Government [ 3 ]. This is an indication of the limited opportunities as far as the inclusion of women is concerned in the world. However, women such as Ellen Johnson Sirleaf, the former President of Liberia, the first elected female head of state in Africa, Joyce Banda, who has made history becoming Malawi’s first female president and only the second woman to lead a country in Africa are inspiring.

9. Conclusions

There is a lot that has been written on leadership from a business perspective to the philosophers’ viewpoints; even politicians and historians among others have dissected the concept of leadership. Leaders as people, play an important role in an organisation and to the society. This chapter presented the concept of leadership in the 21st century in the tourism industry as one of the services sectors in global economic growth, and Africa in particular. Effective leadership examples in the tourism industry can be drawn from large destinations with strong performance like Kenya, Côte d’Ivoire, Mauritius and Zimbabwe in sub-Saharan Africa. Although South Africa, reported slower growth in arrivals in 2017, there was a strong increase in receipts, more lessons from the tourism leaders in the sub-region’s top destination can be useful. Island destinations Seychelles, Cabo Verde and Reunion, all reported double-digit growth in arrivals.

Acknowledgments

The author thanks Tshwane University of Technology.

Conflict of interest

The authors declare no conflict of interest.

Notes/Thanks/Other declarations

Thank you to Tebogo Ramoneng, Tumelo Rampheri and Zime Mzelemu.

Appendices and Nomenclature

Case study 1, africa’s young leaders face a testing 2020.

Two “dinosaurs” who were forced out of politics in 2019 – Abdelaziz Bouteflika, the 82-year-old president of Algeria, who had ruled since 1999, and Omar al-Bashir, 75, in power in Sudan since 1989 – fell victim to mass movements spearheaded by young protesters, though in each case the once-powerful rulers were left vulnerable when armed forces withdrew their support.

One of the most striking recent appointments was in Angola, where its president, João Lourenço, appointed Vera Daves de Sousa, a 34-year-old former researcher and analyst, to be the new finance minister. Elderly men, especially senior soldiers who fought in the decades-long civil war, have long dominated the political system in the former Portuguese colony. Vera Daves de Sousa, 34, is finance minister in Angola, where elderly men, many of them veterans of the long civil war, previously dominated politics.

Alex Vines, director of the Africa programme at London’s Chatham House, said Lourenço’s appointment of a swath of younger people, including many women, to senior positions within the government was a gamble. “He has leapfrogged a generation to appoint more technocratic, able people, including many women, to key posts. He sees them as change agents … Next year will be the litmus test for the reform process,” Vines said.

Perhaps the most high profile of the young leaders is Abiy Ahmed, the 43-year-old prime minister of Ethiopia and winner of 2019’s Nobel peace prize. Since coming to power in 2018, Abiy has ended a nearly 20-year military stalemate with Eritrea, and pushed through reforms at home, dramatically changing the atmosphere in what was regarded as a repressive state. Nick Cheeseman, professor of democracy at the University of Birmingham and an expert in African politics, said Abiy was facing a hard choice between a shift towards authoritarianism, or the difficult task of generating confidence and belief in his reforms. “What happens in Ethiopia has massive implications for the countries around it,” Cheeseman said.

In Sudan, the protest movement that swept away Bashir has opened the way to younger political figures. Nevertheless, some may not be any more progressive or less predatory than their former rulers. One is Mohamed Hamdan Dagalo, a 43-year-old warlord accused of systematic human rights abuses, who has emerged as perhaps the most powerful man in the country. He is now deputy chairman of the sovereign council that still holds supreme power.

Elsewhere some young leaders who have challenged entrenched interests have stumbled. In South Africa, Mmusi Maimane, a 39-year-old once breathlessly hailed as the Obama of Soweto, resigned as leader of the opposition Democratic Alliance following disappointing election results.

Julius Malema, the 38-year-old leader of the populist, radical leftwing Economic Freedom Fighters.

In Uganda, Bobi Wine, an opposition MP and popular music star, has generated international attention but is yet to build the kind of political machine that would challenge the country’s veteran leader.

Yoweri Museveni, while in Zimbabwe, Nelson Chamisa, a 41-year-old former pastor who has led the Movement for Democratic Change since 2018, has struggled to mobilise sufficient numbers to destabilise the ruling Zanu-PF government under 78-year-old Emmerson Mnangagwa.“They have inherited, or are opposing, deep-seated neo-patrimonial systems. You can destabilise them, you can even bring down a leader, but the transitional politics are very, very difficult and sometimes they just don’t work out,” said Vines.

The young rulers and challengers remain a minority. The average age of African leaders is more than 60, which means that the continent with the youngest citizens has the oldest rulers.

Source: https://www.theguardian.com/world/2019/dec/31/africas-young-leaders-face-a-testing-2020

Chapter review activity

How would you describe the leadership styles of the above-mentioned “Politicians in their 30s and 40s”?

Which leader/“politician” has principles of African leadership and why?

Due to the testing times in 2020, such as the COVID 19, advise the Africa’s young leaders on the issues of change management and state the importance of project leadership.

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Why Leadership Is Important In The Tourism Industry

The tourism industry is one of the largest and most rapidly growing industries in the world. It plays a vital role in the global economy, generating employment opportunities, foreign exchange earnings, and enhancing the socio-cultural fabric of host communities. Effective leadership is critical for the success of the tourism industry.

Leaders in the tourism industry need to be visionary, innovative, and capable of managing the interests of multiple stakeholders. This article provides insights into the importance of leadership in the tourism industry by discussing how leaders can coordinate multiple stakeholders, create a vision for the industry, develop strategies for success, implement policies and regulations, and ensure growth and development of the tourism sector.

Effective leadership is essential for coordinating multiple stakeholders in the tourism industry. Tourism involves various stakeholders, including tourists, local communities, governments, private sector businesses, and non-governmental organizations. Leaders in the tourism industry need to manage the diverse interests of these stakeholders by developing collaborative relationships, communicating effectively, and promoting sustainable tourism practices.

In addition, leaders need to ensure that the interests of all stakeholders are taken into account while making decisions that affect the tourism industry. By doing so, they can create a more equitable and sustainable tourism industry that benefits everyone involved.

Coordinating Multiple Stakeholders

Effective coordination among diverse stakeholders in the tourism ecosystem is crucial for achieving sustainable growth and addressing complex challenges.

The tourism industry is composed of various stakeholders, including tourists, local communities, government agencies, private businesses, and non-governmental organizations. Each stakeholder has a different set of goals, interests, and expectations, which can lead to conflicts and challenges in managing tourism activities.

For example, local communities may prioritize the preservation of their cultural heritage and natural environment, while businesses may focus on maximizing profits and attracting more tourists.

Effective leadership is needed to manage these conflicts and engage stakeholders in a collaborative and inclusive manner. Leadership can play a critical role in coordinating multiple stakeholders by fostering dialogue, building trust, and finding common ground.

Leaders in the tourism industry need to be skilled at stakeholder engagement, which involves identifying and involving relevant stakeholders, understanding their needs and perspectives, and creating opportunities for collaboration and participation.

Through effective stakeholder engagement, leaders can ensure that tourism activities align with local needs and priorities, minimize negative impacts on the environment and communities, and promote sustainable development.

Moreover, leaders can facilitate the sharing of knowledge and resources among stakeholders, which can lead to innovation and improved performance in the tourism industry.

Overall, effective leadership is essential for coordinating diverse stakeholders and achieving sustainable growth in the tourism industry.

Creating a Vision for the Industry

The creation of a clear and compelling vision for the future of the tourism industry can serve as a powerful tool for leadership.

Collaborative planning and effective communication between stakeholders are essential components in the creation of a shared vision for the industry.

By engaging all stakeholders in the process of developing a vision, leaders can ensure that the needs, wants, and aspirations of all parties are taken into consideration. This leads to a stronger sense of ownership and commitment to achieving the vision, as well as a greater willingness to work together towards a common goal.

A strong vision for the tourism industry can also provide direction and motivation for stakeholders, guiding their decisions and actions towards a common goal.

It can help to identify areas where innovation and investment are needed, as well as opportunities for collaboration and partnership.

In addition, a clear vision can create a sense of purpose and meaning for those involved in the industry, inspiring them to work towards a future that is both desirable and achievable.

Overall, leadership that can effectively create and communicate a compelling vision for the tourism industry can play a crucial role in shaping its future success.

Developing Strategies for Success

Developing effective strategies is crucial for achieving success in the constantly evolving landscape of travel and hospitality.

The tourism industry is highly competitive, and businesses need to create innovative and unique marketing tactics to attract and retain customers.

This requires leaders who can identify opportunities and challenges in the industry and develop strategies that can effectively address them.

For instance, a leader in the tourism industry may develop a marketing plan that focuses on social media platforms to reach a wider audience. They may also implement loyalty programs to enhance customer satisfaction and retention.

In addition, leaders in the tourism industry must also focus on developing strategies for sustainable growth.

This includes strategies that prioritize environmental, social, and economic sustainability.

For instance, a leader may develop a plan that promotes responsible tourism by reducing the carbon footprint of their operations, supporting local communities, and preserving cultural heritage.

By developing strategies that balance the needs of the environment, society, and the economy, leaders in the tourism industry can create a sustainable business model that benefits everyone involved.

Ultimately, the success of businesses in the tourism industry depends on the ability of their leaders to develop effective and sustainable strategies.

Implementing Policies and Regulations

The implementation of policies and regulations within the travel and hospitality sector is crucial for ensuring sustainable practices that benefit the environment, society, and economy, evoking a sense of responsibility and accountability for businesses and stakeholders.

The tourism industry has been identified as a significant contributor to environmental degradation, which has led to the development of several regulations aimed at mitigating its impact. Government agencies play a crucial role in implementing these regulations by enforcing compliance and monitoring the industry’s practices. By doing so, they ensure that businesses operate in a manner that is environmentally conscious and sustainable.

Policies and regulations also play a critical role in ensuring that the tourism industry operates in a socially responsible and ethical manner. For example, regulations regarding the employment of locals, the treatment of employees, and the provision of fair wages and benefits ensure that businesses contribute positively to the economy and society.

Additionally, regulations aimed at protecting cultural heritage sites, protecting wildlife, and preserving natural habitats ensure that the industry operates in a manner that is respectful and sustainable. Overall, the implementation of policies and regulations is crucial for creating a sustainable tourism industry that benefits all stakeholders and contributes positively to society and the environment.

Ensuring Growth and Development of the Tourism Sector

Achieving sustainable growth and development of the travel and hospitality sector requires a collaborative effort from various stakeholders, including government bodies, tourism organizations, local communities, and private sector entities.

These groups must work together to ensure that the tourism industry is developed in a way that benefits all parties involved.

Innovation and creativity are also essential factors that contribute to the growth and development of the tourism sector.

The tourism industry is constantly evolving, and it is essential to implement new and creative ideas to attract tourists and enhance their experience.

To ensure sustainable growth and development, tourism organizations must prioritize the protection of the environment and the preservation of cultural heritage.

This can be achieved by promoting responsible tourism practices, such as reducing carbon footprints, supporting local businesses, and respecting local cultural traditions.

By prioritizing the well-being of the environment and the local community, the tourism industry can continue to thrive while also benefiting the surrounding areas.

It is important to note that sustainable growth and development cannot be achieved overnight; it requires a long-term strategic approach that balances economic, social, and environmental factors.

By implementing collaborative efforts, innovation, and creativity, the tourism industry can create a sustainable future for all.

Leadership plays a crucial role in the tourism industry, as it is responsible for coordinating multiple stakeholders, creating a vision for the industry, developing strategies for success, implementing policies and regulations, and ensuring growth and development. Effective leaders are crucial in navigating the complexity of the tourism industry, which involves multiple stakeholders such as tourists, government agencies, local communities, and private sector organizations. They must be able to understand the needs and interests of each stakeholder and bring them together to achieve common goals.

Creating a vision for the industry is also an essential function of leadership in the tourism industry. Leaders must be able to envision a future that is sustainable, competitive, and beneficial for all stakeholders. They must be able to identify trends and anticipate changes in the market to ensure that the industry remains relevant and resilient.

Developing strategies for success is another critical role of leadership, as it involves identifying opportunities for growth and innovation, addressing challenges and risks, and ensuring that resources are used effectively.

In conclusion, leadership is crucial in the tourism industry as it brings together multiple stakeholders, creates a vision, develops strategies, implements policies and regulations, and ensures growth and development. Effective leaders must be able to navigate the complexity of the industry, understand the needs and interests of stakeholders, and anticipate changes in the market. By doing so, they can help to ensure that the tourism industry remains competitive, sustainable, and beneficial for all.

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Transformational Leadership for the Hospitality and Tourism Industry

• First Online: 29 May 2022

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• Kathleen Farrell 11  

Part of the book series: Humanism in Business Series ((HUBUS))

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According to Mele (2012, p. 81), “humanistic management is about recognising what people are, treating them accordingly and fostering their development”. To get the best out of people, leaders must manage them respectfully, showing concern for their interests and cooperating with them for the common good. In this way, they will inspire their people to follow. To achieve this, the leader needs education in many virtues, including magnanimity and humility. Apart from education, mentoring and sport are also activities that can build leadership capacity. For the hospitality and tourism industry, which is the subject of this book, transformational leadership has been found to work particularly well. It uses teamwork and motivation to inspire employees and generates positive effects such as commitment, empowerment, performance, service innovation behaviour and life satisfaction. Transformational hospitality and tourism leaders are needed to establish more acceptable human resource management systems and practices for the flourishing of the persons who work in the industry. Such leaders are likely to embrace humanistic management principles and therefore promote human dignity and foster human flourishing. Ultimately, the society benefits through improved sustainability indices.

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Farrell, K. (2022). Transformational Leadership for the Hospitality and Tourism Industry. In: Ogunyemi, K., Ogunyemi, O., Okoye, E. (eds) Humanistic Perspectives in Hospitality and Tourism, Volume 1. Humanism in Business Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-95671-4_14

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About UN Tourism

UN Tourism’s leadership vision acknowledges the most pressing challenges facing tourism and identifies the sector’s ability to overcome them and to drive wider positive change, including the opportunities responsible tourism offers for the advancement of the 17 Sustainable Development Goals (SDGs).

UN Tourism members have endorsed the Management Vision of the Secretary-General which seeks to position tourism as a policy priority, lead in knowledge creation, enhance the Organization’s capacity through building new and stronger partnerships , and offer better value for existing Members while also expanding membership.

To realize the Management Vision, UN Tourism’s work is based around five distinct pillars:

• making tourism smarter through celebrating innovation and leading the digital transformation of the sector;
• making tourism more competitive at every level through promoting investment and promoting entrepreneurship;
• creating more and better jobs and providing relevant training;
• building resilience and promoting safe and seamless travel; and
• harnessing tourism’s unique potential to protect cultural and natural heritage and to support communities both economically and socially.

As the leading international organization in the field of tourism, UN Tourism promotes tourism as a driver of economic growth, inclusive development and environmental sustainability and offers leadership and support to the sector in advancing knowledge and tourism policies worldwide. 

UN Tourism encourages the implementation of the Global Code of Ethics for Tourism , to maximize tourism’s socio-economic contribution while minimizing its possible negative impacts, and is committed to promoting tourism as an instrument in achieving the Sustainable Development Goals (SDGs) , geared towards reducing poverty and fostering sustainable development worldwide.

UN Tourism generates market knowledge, promotes competitive and sustainable tourism policies and instruments, fosters tourism education and training, and works to make tourism an effective tool for development through technical assistance projects in over 100 countries around the world. 

UN Tourism’s membership includes 160 Member States, 6 Associate Members and over 500 Affiliate Members representing the private sector, educational institutions, tourism associations and local tourism authorities.

Basic Documents

Our management.

The management team works towards a comprehensive vision for development of the tourism sector. This includes positioning tourism as a policy priority, establishing thought leadership in knowledge and policy creation, increasing resources and strengthening UN Tourism’s capacity through meaningful partnerships.

Governing Bodies

 The bodies of the World Tourism Organization are the:

• General Assembly
• Regional Commissions
• Executive Council
• Secretariat

Member States

An intergovernmental organization, UN Tourism has 160 Member States, 6 Associate Members, 2 Observers

Working With the Private Sector

Bringing together over 500 companies, educational and research institutions, destinations and NGOs, the UN Tourism Affiliate Members provides a space for members to engage in dialogue, share information and take further action.

UN Tourism Liaison Office in Geneva

As part of the UN Tourism Geneva Liaison Office (GVLO) scope of work to represent UN Tourism to the UN System and Diplomatic Missions in Geneva and in building strategic partnerships for increased capacity, GVLO has participated in numerous United Nations System led activities.

UN Tourism Tourism Ambassadors

UN Tourism’s Ambassadors for Sustainable Tourism are drawn from the worlds of sport, entertainment, business, gastronomy and more.

• Press Releases
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WTTC Announces Leadership Changes

Gloria Guevara steps down as President & CEO Julia Simpson to take over the helm

LONDON, UK: The World Travel & Tourism Council (WTTC), which represents the global Travel & Tourism private sector, announces the departure of Gloria Guevara after four years leading the global tourism body.

The former Tourism Secretary of Mexico, Guevara, joined WTTC in August 2017, has led WTTC and its Members through a transformational agenda over the past years, including the sector’s significant impact from the COVID-19 pandemic. Guevara was the strong voice in leading the global Travel & Tourism sector through its the most difficult year in history and has helped unite the sector and define the path for the recovery.

WTTC is delighted to announce the appointment of International Airlines Group (IAG) Executive Committee Member, Julia Simpson, as its President & CEO, effective August 15th.

Simpson brings extensive experience of the Travel & Tourism sector, having served on the boards of British Airways, Iberia and most recently as Chief of Staff at International Airlines Group. She previously worked at senior levels in the UK Government including advisor for the UK Prime Minister.

Carnival Corporation President and CEO, Arnold Donald, who was recently appointed as Chair of WTTC, paid tribute to Gloria Guevara and welcomed Julia Simpson to her new role.

Arnold Donald said: “I would like to first thank Gloria for her dedication and commitment to WTTC, especially in these difficult times. Her contributions have been immeasurable, from helping to unite the sector as it manages and recovers from the pandemic, to providing a clear voice and direction for the safe restart of international travel. And I and the entire executive committee are grateful for Gloria’s continued help through this transition and her support to WTTC.

"I am delighted to welcome Julia Simpson, an exceptional leader with experience both in the private sector and in government, to help guide WTTC at this critical juncture of the Travel & Tourism sector. I look forward to working with Julia in my role as Chair, to continue building on WTTC’s many successful initiatives.”

Gloria Guevara said: “It is with a heavy heart that I leave WTTC. I am very proud to have led this diverse and talented team and to have worked with so many amazing industry leaders, who are WTTC’s Members, and built strong relationships with government heads of tourism around the world. 

“I leave WTTC after completing my mandate, in a stronger position as the voice of the private sector and the leader of the global agenda. I know that under Julia’s solid leadership, WTTC will continue to build on this legacy and lead it into its next chapter, championing the entire global Travel & Tourism sector to its recovery.”

Julia Simpson said “It will be a great privilege to lead WTTC as it emerges from the worst crisis in our history. Travel & Tourism plays a critical role to our economies across the globe, accounting for 330m jobs in 2019. In many communities it is the backbone of family run businesses that have been left devastated.

"The Travel & Tourism sector has shown real leadership in ‘reopening’ the world safely and securely; and I look forward to shaping and driving the sector’s ambitious agenda to achieve long-term sustainable and inclusive growth.”

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The competitiveness of small and medium enterprises in the tourism sector: the role of leadership competencies

Journal of Economics and Development

ISSN : 1859-0020

Article publication date: 16 November 2020

Issue publication date: 27 July 2021

This research aims to adopt competitiveness theory to analyse the effects of leadership competencies on the competitiveness of small and medium-sized enterprises (SMEs) in the tourism sector.

Design/methodology/approach

This research collected data from 200 participants, who are in management positions of tourism SMEs in Vietnam. Structural equation modelling was applied.

The results indicate satisfactory reliability and validity of the constructs and support for two models within a structural equation modelling to evaluate the influence of leadership competencies on the competitiveness of SMEs. The data from both customers and competitors show that the competitiveness and the performance of the enterprise are affected by hands-on experience; relationships building competencies; strategic vision; operations management competencies. Furthermore, customers also value professional knowledge of the enterprises' leaders.

Practical implications

The study suggests that the government agencies and tourism SMEs themselves should focus more on leadership. Training courses, exchange programs, seminars and workshops should be provided for SMEs leaders to improve their leadership competencies.

Originality/value

The research findings provide a more comprehensive view of internal and external factors affecting the competitiveness of SMEs in the tourism sector in Vietnam. This also contributes to competitiveness and leadership research by presenting the positive linkage between leadership competencies and the competitiveness of SMEs.

• Leadership competencies

Cong, L.C. and Thu, D.A. (2021), "The competitiveness of small and medium enterprises in the tourism sector: the role of leadership competencies", Journal of Economics and Development , Vol. 23 No. 3, pp. 299-316. https://doi.org/10.1108/JED-06-2020-0080

Emerald Publishing Limited

Copyright © 2020, Le Chi Cong and Dao Anh Thu

Published in Journal of Economics and Development . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Research on the competitiveness of enterprises is not a new topic in Vietnam academic field ( Tho and Trang, 2009 ). Many studies have conducted from the perspective of Porter's theory of competitiveness and competitive advantage ( 1985 ) to develop conceptual and empirical studies ( Kamp and Parry, 2017 ; Man et al. , 2002 ). The concept of competitiveness has been continued to develop in three levels, which are enterprise, industry and country; and it has attracted the attention of many business researchers ( Bharadwaj et al. , 1993 ; Goldberg et al. , 2003 ). In Vietnam, several researchers in different fields have applied the theory of competitiveness and competitive advantage to explore the factors that contribute to the competitiveness of businesses ( Tho and Trang, 2009 ; An and Thi, 2012 ; Ai, 2013 ; Hieu et al. , 2020 ). However, there has been no significant research on how leadership affects the competitiveness of small and medium enterprises in practice. Therefore, researchers continue carrying out several types of research in the Vietnamese context to form a comprehensive view of leadership factors affecting the competitiveness of small and medium enterprises ( Cong and Hai, 2015 ).

Leaders play a vital role in shaping business goals, strategies and decisions ( Asree et al. , 2010 ). It has been recognised that leadership competencies are decisive factors for business success ( Asree et al. , 2010 ; Clarke, 2010 ). The leadership process means creating social influence to foster the voluntary participation of subordinates in implementing the vision, goals and mission of the organisation ( Asree et al. , 2010 ; Clarke, 2010 ). Leadership is the combination of knowledge, skills, experience, behaviours and attitudes to turn organisations or enterprises into a cohesive body to ensure successful competition in the marketplace ( Church, 1995 ; Asree et al. , 2010 ).

Regarding small and medium-sized enterprises (SMEs), leaders/managers have an important role in improving competitiveness, creating jobs, increasing incomes for employees and mobilising social resources for business development investment ( Clarke, 2010 ; Cannon et al. , 2010 ). However, most leaders/managers of SMEs, even those who have received higher education, lack in-depth knowledge of economics, business administration, business law and other key areas. This limitation has been found to have a significant impact on the enterprises' vision, goals, strategies and capability to cope with risks ( Chawla et al. , 1997 ). Notably, due to their small scale, SMEs are particularly vulnerable to an adverse business environment ( Chawla et al. , 1997 ).

Indeed, in Khanh Hoa during the past few years, there have been an increasing number of SMEs, which have been dissolved, are in hiatus, or went bankrupt. Arguably, one of the key causal factors is the weak management of human resources, especially the development of leadership competencies of the management team and the managers. The lack of adequate consideration of this aspect causes the difficulties for SMEs to develop ( Cong and Hai, 2015 ). As the chief executor of an enterprise, the SME manager has to exercise leadership activities which are comprehensive and practical. Furthermore, he/she has to execute directly the production process and business operations, as well as perform leadership activities in human resources management.

To perform his/her role effectively, an SME manager needs strong leadership competencies, sufficient knowledge and skill set, attitudes and qualities to effectively lead not only himself/herself but also the team and the whole organisation. This serves the ultimate purpose, which is to maintain and develop the position of the enterprise in the market and generate legitimate income for the stakeholders and the manager himself/herself. This study aims to apply competitiveness theories to analyse leadership competencies affecting the competitiveness of SMEs. The results have practical implications to systematise theoretical issues, investigate the situation, identify the competencies that constitute the leadership of enterprises. Furthermore, the study offers recommendations on policy to improve the competitiveness of SMEs in the future.

2. Literature review

2.1 competitiveness.

Over the past 30 years, competitiveness has always been an attracting topic among scholars, businesses and government agencies. There are four levels of competitiveness, including product, firm, industry and nation ( Porter, 2008 ). Today, competitiveness is also considered in terms of region and locality ( Porter, 2008 ). Regarding the product, Goldberg et al. (2003) argued that the concept of competitiveness is related to the aspects of competitive advantage or price competitiveness, strategic management and historical, cultural – social aspects. Man et al. (2002) also approached corporate competitiveness from the perspective of price, service quality, gross profit and the ability to plan and achieve business goals compared to industry competitors. For the industry, competitiveness is understood as the ability to maintain or increase market share by low cost or product characteristics compared to a similar industry in different countries ( Porter, 2008 ). Finally, national competitiveness is the competitiveness of a national economy to achieve and maintain high growth based on sustainable policies and institutions (WEF, 2003). This research studies the enterprise competitiveness and is mainly developed based on Porter's theory of competitiveness and competitive advantage ( 1985 , 2008 ).

2.2 Small and medium enterprises (SMEs)

According to McAdam et al. (2004) , there is no universal definition of SMEs, and this poses a challenge for studying SMEs. Commonly, the definitions of SMEs fall into two criteria. A quantitative criterion includes size, capital, annual turnover, invested capital, revenue, total assets, market share and so on ( Hossain and Kauranen, 2016 ). Amongst these, the number of employees is the most common since it is available, easy to control and not affected by inflation (Filion, 1990; cited in Buculescu, 2013 ). However, Gibson and Van Der Vaart (2008) argued that it can be misleading because when an organisation develops or becomes more efficient, it does not always entail the recruiting of more people, thus affecting the growth of SMEs. Other qualitative categories such as turnover and balance sheet are also criticized as being suitable explanatory factors because they do not consider the type of the economic sector, and other business aspects ( Buculescu, 2013 ). Furthermore, each country has its definition. For example, in Vietnam, according to the Government's Decree No. 39/2018/ ND-CP on March 11th, 2018, SMEs are business establishments that are legally registered. They are divided into three levels: micro, small, medium scale according to the total capital (total capital equal to the total assets determined in the enterprise's balance sheet) or the average number of employees per year, which is less than 200. The total capital is the primary criterion. By comparison, European SMEs are classified by the number of employees (under 250 people), and turnover or balance sheet ( European Commission, 2003 ). The number of employees in SMEs in the USA, however, can be a maximum of 500 employees regarding business sector (the United States International Trade Commission, 2010 ), which is double the standard size of European SMEs and much larger than Vietnamese one.

A qualitative criterion considers the independent ownership of SMEs as the primary category, and it can be combined with qualitative criterion. For example, Recklies (2001, cited in Buculescu, 2013 ) defined an SME as a small entity, which is independent in terms of capital and does not possess a majority of market share. Other categories are the specification of the business sector, which is represented in the definitions of SMEs in the USA and China ( Hossain and Kauranen, 2016 ); or management hierarchy, low specialised degree of executives ( Mohamed et al. , 2013 ). The qualitative criteria also focus on the disadvantages of SMEs such as lack of strong negotiating position ( Mohamed et al. , 2013 ); lack of sufficient financial resources ( Abosede et al. , 2016 ) as the owner has all responsibility for funding ( Buculescu, 2013 ). As can be seen, the criteria of SMEs do not consider the business relationships, technology competencies, management competencies and performance.

2.3 Competitiveness of small and medium enterprises

The concept of competitiveness of different levels (enterprise, industry, country), has attracted the attention of both researchers and business managers ( Bharadwaj et al. , 1993 ; Goldberg et al. , 2003 ). The concept of competitiveness relates to aspects such as competitive advantage, price competition, strategic management and other historical and socio-cultural aspects ( Goldberg et al. , 2003 ). Competitiveness can also be seen as an independent variable, intermediate variable or entirely dependent variable, depending on the perspective of the approach in the studies ( Asree et al. , 2010 ). In the hospitality sector, the competitiveness of small and medium-scale hotels can be seen through the competitiveness of price, service quality, gross profit, planning and achieve business goals compared to their competitors ( Fraj et al. , 2015 ).

The competitiveness of enterprises is seen as the degree of interaction between the groups of customers' satisfaction and the value of shareholders by constantly improving service quality, the capability to exploit the potentials, to implement or to respond through financial strength ( Asree et al. , 2010 ). Business practices indicate that a SME is not a scaled-down version of a large enterprise ( Chawla et al. , 1997 ). SMEs differ in organisational structure, capital capacity, labour, technology, the capability to respond to the environment, management style and, more importantly, the fashion in which they compete with other enterprises ( Chawla et al. , 1997 ). Therefore, competitiveness studies focussing only on large corporations may not be applied directly to SMEs ( Man et al. , 2002 ; Chawla et al. , 1997 ). Research, having studied the factors influencing the competitiveness of SMEs, has increased significantly in recent years ( Asree et al. , 2010 ).

Robinson (2005) emphasised that the assessment of the SMEs competitiveness should be considered in the wider interaction or placing it in the constant turbulence of the business environment and considering the capability to access capital sources and the internal capabilities of SMEs. Noticeably, to achieve a competitive advantage, internal resources play a more vital role than external factors ( Zainudin et al. , 2018 ). Although the hospitality sector has particular characteristics such as being influenced by seasonality, most of the enterprises are household businesses, meaning they are highly independent. These companies are equipped in advance; thus, they are not constrained by suppliers. Therefore, the competitiveness of small and medium-sized hotels is heavily influenced by the management competencies of business owners ( Fraj et al. , 2015 ; Cong and Hai, 2015 ). This approach addresses the consideration of the various environmental influences and impacts on the competitiveness of small and medium-sized hotels, with particular emphasis on the internal factors of the enterprise ( Asree et al. , 2010 ).

2.4 Leaders

The concept of “leaders” is often misunderstood and confused with many other concepts, especially with “managers”, or “business owners”. Misperceptions and inadequate understanding of the leaders themselves have affected the performance of many organisations or groups. Therefore, an understanding of the concept of “leader” is vital. Overall, a leader must ensure three capabilities: shaping a vision, inspiring and influencing ( Anand and Punia, 2013 ). Stated differently, a leader is a person who is capable of creating a vision for an organisation or group and exercises his/her power to influence who follow that vision. More importantly, in the everchanging and turbulent business context, a leader also needs to develop trusting relationships with his/her subordinates and empower them by acknowledging and clarify their roles in the organisation ( Martínez-Córcoles et al. , 2020 ). Depending on a particular research aspect, researchers have different definitions of leaders.

2.5 The influence of leadership competencies on the competitiveness of small and medium enterprises

The leaders of the enterprises can manage and lead the organizations effectively only if they truly acquire knowledge of their business fields. In addition to requiring fundamental knowledge, leaders always need to be eager to learn to improve their awareness, knowledge and update new information ( Anand and Punia, 2013 ) to develop their competencies in managerial and entrepreneurial aspects ( Lenka and Agarwal, 2017 ; Man et al. , 2002 ). Leaders play an important role in the establishment, survival and sustainable development of the organisations ( Anand and Punia, 2013 ; Man et al. , 2002 ). In particular, their role is even more important for SMEs because of their origins, size, characteristics and the nature of their business operations. SME leaders oversee almost all aspects of business operations. They are often referred to as general managers (GM) rather than Sspecialist managers (SM). Many studies have shown that the nature of general management, which involves almost all the activities, limits their strategic vision. The long-term ideas are outweighed by short-term tasks ( Anand and Punia, 2013 ; Man et al. , 2002 ). However, understanding and measuring the different influences of leaders on the competitiveness of SMEs is the subject of much debate. Several empirical studies show the strong influence of the factors belonged to leaders themselves on the competitiveness of enterprises ( OECD, 1993 ; Goldberg et al. , 2003 ; Anand and Punia, 2013 ; Man et al. , 2002 ).

There is a positive relationship between the professional knowledge of leaders and the competitiveness of SMEs.

There is a positive relationship between operations management competencies of leaders and competitive advantage of SMEs.

There is a positive relationship between the strategic vision of leaders and the competitiveness of SMEs.

There is a positive relationship between relationships building competencies of leaders and competitive advantage of SMEs.

Anand and Punia (2013) stated that experience, knowledge and management skills are particularly important competencies of leaders to increase the competitiveness of SMEs. Chawla et al. (1997) argued that the experience and strategic orientation are two crucial factors of leaders that positively influence the competitiveness of SMEs. On the other hand, some studies refer to factors that belong to their characteristics such as age, gender, educational background or psychological and behavioural characteristics as well as their management skills, all of which have a profound impact on the competitiveness of SMEs.

There is a positive relationship between the hands-on experience of leaders and the competitiveness of SMEs.

Based on both domestic and foreign studies, as well as on the fundamental theories, the research model used here is developed to analyse how different characteristics of leaders affect the competitiveness of SMEs in the tourism sector. The dependent variables are built based on the measurement of the enterprise competitiveness in two aspects: (1) competitiveness and performance of enterprises compared to competitors and (2) competitiveness and performance of the enterprise from the perspective of customers.

3. Methodology

3.1 data collection and analysis, 3.1.1 data description.

Currently, Khanh Hoa has over 1,600 enterprises in the tourism sector. To be specific, the number of accommodation establishments accounts for a large proportion of 710. Among them, 250 companies are operating in travel service; 580 establishments in restaurants/food and beverage services and nearly 30 units in shopping and entertainment service. Of these, the proportion of SMEs is around 92%. To gather a specific view regarding the influence of leadership competencies on the competitiveness of SMEs in Khanh Hoa tourism sector, a survey was conducted with 250 leaders/managers of SMEs in the province. There were 215 questionnaires collected. The number of questionnaires, which were incomplete and invalid, was 15. Amongst 200 participants, there were 117 males and 83 females, accounting for 58.5 and 41.5%, respectively. The number of participants with undergraduate and post-graduate degree occupied the largest proportion (70.5%). The group having a college degree ranked second (26.0%), and participants having attended junior college only constituted 3.0%. The number of people with other educational backgrounds was the lowest at 0.5%. The majority of participants were between 35 and 45 years old (55.0%). The age group from 46 to 55 made up 26.0% with 52 participants. The group under 35 years old ranked third with 34 participants (17.0%). The smallest proportion (2.0%) was the group over 55 years old with four participants. The characteristics of the sample reflect the nature of the tourism sector, in which the workforce aged from 35 to 45 not only reaches maturity but also has youth and enthusiasm. The number of participants holding a division manager position was 130, accounting for 65.0%. There were 37 participants in the head/deputy of department position (18.5%) and 33 participants in other positions (16.5%). 109 participants had been in the position for more than five years, occupying 54.5%. The number of those who had worked for 3–5 years was 71 (35.5%). There were 20 participants with 20 years of working experience (10.0%). This indicates that people with more than five years of working experience have been currently holding key management and leadership positions in SMEs in the tourism sector.

3.1.2 Measurement

Based on the literature review, this study generated a research measurement consisting of seven components in the research model. Leaders' professional knowledge is measured by five variables and was developed from the researches of Chawla et al. (1997) and Cong and Hai (2015) . Leaders' operations management competence is measured by 10 variables and was developed from the researches of Goldberg et al. (2003) , Robinson (2005) and Cong and Hai (2015) . Leaders' strategic vision were measured by six variables and was developed from the study of Cong and Hai (2015) . Leaders' relationships building competency is measured by six variables and was developed from the research of Chawla et al. (1997) and Cong and Hai (2015) . Leaders' hands-on experience is measured by six variables and was developed from the studies of Goldberg et al. (2003) , Robinson (2005) . In particular, the competitiveness and performance of the enterprise in this study were approached from two aspects: customers and competitors and was developed from the works of Robinson (2005) and Cong and Hai (2015) . This is because the competitiveness is not only measured by comparing to competitors within the industry ( Man et al. , 2002 ; Chawla et al. , 1997 ) but also has to be assessed from the customer perspective ( Cong and Hai, 2015 ). The fact that in the service industry the customers directly involve in the service creation and also be the beneficiary of these services ( Cong and Hai, 2015 ). Details of the scale are in Appendix .

In prior, the research employed qualitative research to understand and select the variables. A group of experts was interviewed independently with an open/closed questionnaire. Each person was asked for their opinions on particular components of leadership competencies ( Cong and Hai, 2015 ; Chu and Hwang, 2008 ). A group of 10 experts (researchers, lecturers; tourism enterprise leaders and government agency managers) was selected, and they were asked to present their level of agreement regarding specific variables presented by the values on the scale from 1 to 5: (1) very irrelevant indicators; (2) not highly relevant; (3) somewhat relevant; (4) highly relevant; (5) very relevant ( Cong and Hai, 2015 ; Chu and Hwang, 2008 ). Based on the evaluation, standard deviation and differences of each variable were calculated ( Chu and Hwang, 2008 ). Research results show that all experts agreed with the observed variables proposed to measure the competitiveness of SMEs in the tourism sector in Khanh Hoa.

3.1.3 Analytical procedures

The first goal of the quantitative analysis was to confirm the related measures of intended constructs (convergent validity) and whether these constructs differed from each other (discriminant validity). The second goal was to examine appropriate constructs in the proposed conceptual model and causal relationships, as shown in Figure 1 . These analyses were performed using maximum likelihood estimation in AMOS 25.0. According to Hair et al. (1998) , structural equation modeling can apply a correlation matrix or a covariance matrix as a key to building any model.

Additionally, it is appropriate to use covariance to test a theory. Some indicators such as chi-squared ( χ 2 ), normed fit index (NFI), relative Fft Index (RFI), Tucker–Lewis index (TLI), comparative fit index (CFI) and root mean square error of approximation (RMSEA) were applied to assess the suitability of the overall model (measurement and construct model). The appropriateness of the accepted model is denoted by NFI and CFI values, which were over 0.90; and RMSEA was below 0.08. These values represent moderate relevance, while values which are less than 0.05 are relatively good ( Browne and Cudeck, 1992 ).

4. Research findings and discussion

4.1 reliability test.

The Cronbach's alpha analysis results indicate the scores of key factors as follows: professional knowledge = 0.832; operations management competencies = 0.939; strategic vision = 0.881; Relationships building = 0.904; hands-on experience = 0.836. The analysis also indicates the score of the dependent scales including competitiveness and performance of the enterprise from the perspective of customers = 0.947; competitiveness and performance of the enterprises compared to competitors = 0.920. All of these are greater than 0.6. The results show that the observed variables have the appropriate correlation coefficients, which are greater than or equal to 0.3 (≥0.3) ( Nunnally and Bernstein, 1994 ) (see Table 1 ).

4.2 Confirmatory factor analysis

Table 2 displays the intercorrelations between the constructs in the theoretical model. All correlations are significant ( p  < 0.001; p  < 0.05). A confirmatory factor analysis (CFA) of the measurement model, including five constructs in the theoretical model as in Figure 1 , results in a good fit with the data ( χ 2  = 991.73; df = 573. p  = 0.000; RMSEA = 0.060; NFI = 0.912; CFI = 0.917) ( Browne and Cudeck, 1992 ). Tables 3 and 4 present the results of the CFA.

As shown in Table 3 , all factor loadings on the constructs are highly significant ( p  < 0.001: t -value > 9.040) with values ranging from 0.61 to 0.93. which shows the convergent validity of the constructs. The composite reliabilities exceed the minimum value of 0.60, and the variances extracted surpass the recommended threshold of 0.50.

4.3 Structural model

The estimated results of the structural model, including only direct effects in Figure 1 , indicate a good fit with the data: chi-square value = 995.126; df = 574; GFI = 0.912; CFI = 0.917; TLI = 0.914; RMSEA = 0.06 ( Browne and Cudeck, 1992 ). As shown in Table 5 all hypotheses involving direct effects are supported by the data.

This study expected that the professional knowledge of leaders has a direct impact on the competitiveness of SMEs, including the competitiveness and performance of the enterprises from the perspective of customers ( H1 ) and the competitiveness and performance of the enterprise compared to competitors ( H2 ). Both hypotheses are confirmed by the data, which indicates that professional knowledge of leaders has a significantly positive effect on the competitiveness and performance of the enterprises from the perspective of customers ( β 1  = 0.318. t  = 4.155. p  < 0.001) and the competitiveness and performance of the enterprise compared to competitors ( β 2  = 0.318. t  = 3.290. p  < 0.001).

Hypothesis 3 was that the operations management competencies of leaders have a direct impact on the competitiveness of SMEs, including the competitiveness and performance of the enterprises from the perspective of customers ( H3 ) and the competitiveness and performance of the enterprise compared to competitors ( H4 ). Two hypotheses are supported by the significantly positive effect of the operations management competencies of leaders on the competitiveness of SMEs ( β 3  = 0.173. t  = 2.090. p  < 0.005); ( β 4  = 0.159. t  = 1.971. p  < 0.10).

Hypotheses 5 and 6 suggested that the strategic vision of leaders would increase the competitiveness of SMEs, including the competitiveness and performance of the enterprises from the perspective of customers ( H5 ), and the competitiveness and performance of the enterprise compared to competitors ( H6 ). Both hypotheses are supported, indicating that the strategic vision of leaders has a significantly positive impact on the competitiveness of SMEs ( β 5  = 0.212. t  = 3.398. p  < 0.001); ( β 6  = 0.276. t  = 3.446. p  < 0.001).

Hypotheses 7 and 8 proposed that the relationship building of leaders has a positive effect on the competitiveness and performance of the enterprises from the perspective of customers ( H7 ), and the competitiveness and performance of the enterprise compared to competitors ( H8 ). These two hypotheses are supported, showing that the relationship building of leaders are significantly positively related to the competitiveness of SMEs ( β 7  = 0.226. t  = 3.592. p  < 0.001); ( β 8  = 0.181. t  = 2.295. p  < 0.005).

Finally, the results indicate that the hands-on experience of leaders has a strong significant positive effect on the competitiveness and performance of the enterprises from the perspective of customers ( β 9  = 0.260. t  = 4.207. p  < 0.001), supporting H9 . The hands-on experience of leaders has a strong significant positive effect on the competitiveness and performance of the enterprise compared to competitors ( β 10  = 0.186. t  = 2.359. p  < 0.05), supporting H10 .

5. Recommendations on policy to improve leadership competencies to enhance the competitiveness of small and medium enterprises

This study drew on competitiveness theory to analyse the influence of leadership competencies on the competitiveness of SMEs in the tourism sector. A survey of several enterprises indicates that there are two models for evaluating the influence of leadership competencies on the competitiveness of SMEs. Firstly, the competitiveness and performance of the enterprises from the perspective of customers are affected by (1) hands-on experiences; (2) strategic vision; (3) relationship building, (4) professional knowledge and (5) operations management competencies. Secondly, the competitiveness and performance of enterprises compared to competitors are affected by (1) hands-on experience; (2) relationship building; (3) strategic vision and; (4) Operations management competencies. Based on the findings, many recommendations on the policy are proposed to improve the competitiveness of SMEs in the tourism sector in Khanh Hoa province.

First, increasing the opportunities for SMEs managers in the tourism sector in Khanh Hoa province to gain more hands-on experience. Regarding knowledge related to hands-on experience, tourism SME managers should participate in training programs, seminars and workshops organised by the Provincial SMEs Association, other consultancies and training organisations. Besides, tourism SME managers should acquire knowledge of international integration, including understanding its concept, nature, forms and characteristics; the inevitability and consequences since international integration is a major phenomenon of the modern world. Tourism SME leaders can actively find out more from books about change management, international economic integration and learn the methods to manage successfully the change from successful leaders in the country and around the world.

Secondly, increasing opportunities for tourism SME managers in Khanh Hoa province to improve their strategic vision. Tourism SME leaders can systematically register and participate in training courses, seminars and workshops for business leaders to equip strategy and vision-related knowledge such as strategic thinking, creative thinking, strategic management; strategic business development. Tourism SME leaders can choose training courses in these areas from prestigious organisations or institutions, for example, the course “Strategic Management in Enterprises” organised by the Center for Business Administration Study (CBAS) of the University of Economics and Business (UEB) and Vietnam National University, Hanoi (VNU). Through these courses, SME managers can understand the importance of shaping a vision for their business, how strategic management can determine the success or failure in the marketplace; know how to seize opportunities and create competitive advantages; gain and apply knowledge to build optimal strategies, to implement these strategies to each unit to ensure the efficiency, to evaluate the results and effectiveness and to adjust these strategies to adapt to the changing conditions in the business. Moreover, SME leaders can enhance their knowledge of vision and strategy development by visiting and surveying successful businesses in Vietnam or other countries to learn from their experiences. Furthermore, managers can participate in discussions amongst managers, directors who are members of the associations, clubs to gather information, share experiences and improve knowledge.

Thirdly, increase opportunities for tourism SME managers in Khanh Hoa province to expand business relationships . Research on tourism SMEs in Khanh Hoa province shows that the capability to build relationships is a component belonging to the leaders themselves, and it has a direct and positive effect on the competitiveness of SMEs. Interpretation of the differences in the research results shows that the influence of factors will vary greatly depending on the object and context of the study. From the perspective of the long-term orientation of tourism SMEs, to maintain position and sustainable competitiveness, managers are required to shape and develop a long-term strategic vision. It is vital to have a coherent strategy, which focuses on improving the quality of services, building the brand in customers' perceptions, enhancing the capability to establish relationships with partners to enhance the value of supply chain in tourism services.

Fourthly, increasing opportunities for tourism SME managers in Khanh Hoa province to improve operations management competencies. In terms of knowledge, tourism SME managers need to raise their awareness of their roles to improve operations management competencies. Leaders of tourism SMEs should attend training courses, seminars, exchange programs, as well as join associations to enhance understanding and improve knowledge. Specifically, the content includes building structure of each unit in the enterprise; the management competencies, leading people, decision-making, monitoring and evaluation. It also contains principles of training and development programs for employees in terms of human resource management like the training program “Managing people” of PACE Institute of Management. Leaders of SMEs can also learn more experiences, models of management development from organisations around the world to have a comprehensive view and skills; capability to evaluate, analysis, solve problems and plan strategy.

Fifthly, increase the opportunities for tourism SME managers in Khanh Hoa province to improve management competencies in terms of professional knowledge. To be able to understand professional knowledge in the tourism sector, managers are required to participate in tourism management programs and courses at junior colleges, colleges, universities in the mode of part-time courses or short-term training courses. Besides, managers should attend courses related to business management, financial management, market management, production management, personnel management organised by provincial business associations, training centres, government departments/divisions. For example, the training course “SMEs management skills” of AFC Institute for Financial Management equips participants with the market knowledge; business planning and production; organising of SMEs sales, human resources and financial systems; build and manage a staff of SMEs. Through this course, tourism SME managers can improve their knowledge of the domestic and foreign tourism markets, competitors, globalisation and integration; have opportunities to talk with colleagues and lecturers who have extensive experience in business administration and finance; expand opportunities to interact with other enterprises and learn from successful examples.

Finally, the above results allow researchers and SMEs in tourism sectors to have a more comprehensive view of leadership factors affecting the competitiveness of SMEs in the tourism sector in Khanh Hoa province. In particular, the results show that it is necessary to focus more attention on the vital role of the leaders. At present, many enterprises hold the belief that the limitations on finances, human resources and outdated technology and facilities are considered as the major causes affecting the competitiveness SMEs in the tourism sector. In contrast, the above results show that a leader, who play a key role in every strategic decision, is the most crucial factor. Therefore, if the leaders of SMEs in the tourism sector aim to enhance their competitiveness, it can be a tremendous issue for them to believe in the fallacy of other causes rather than their leadership competencies.

This study is based on the competitiveness theory to develop the model showing the influence of leadership competencies on the competitiveness of enterprises. However, to achieve a comprehensive view, further studies need to expand other aspects based on different theories such as resources-based theories or approach competitiveness theory in terms of business fields and competitive contexts. This study collected data from managers of the small and medium hotel in Nha Trang, who age from 36 to 55. Therefore, sample representativeness is affected. Future researches are suggested to widen the sample size to fully understand the factors affecting the competitiveness of small and medium enterprises.

Research model

Cronbach's Alpha analysis of the scale

Construct means, standard deviation and correlations

Summary of hypothesis testing results

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Further reading

Davis , P.S. , Dibrell , C.C. and Janz , B.D. ( 2002 ), “ The impact of time on the strategy-performance relationship implications for managers ”, Industrial Marketing Management , Vol. 31 No. 4 , pp. 339 - 347 .

Globerson , S. and Zwikael , O. ( 2002 ), “ The impact of the project manager on project management planning processes ”, Project Management Journal , Vol. 33 No. 3 , pp. 58 - 64 .

Nair , J. , Chellasamy , A. and Singh , B. ( 2019 ), “ Readiness factors for information technology adoption in SMEs: testing an exploratory model in an Indian context ”, Journal of Asia Business Studies , Vol. 13 No. 4 , pp. 694 - 718 .

Pullman , M.E. , Verma , R. and Goodale , J.C. ( 2001 ), “ Service design and operations strategy formulation in multicultural markets ”, Journal of Operations Management , Vol. 19 No. 2 , pp. 239 - 254 .

Tho , N.D. ( 2017 ), “ Firm capabilities and performance: a necessary condition analysis ”, Journal of Management Development , Vol. 37 No. 4 , pp. 322 - 332 .

Corresponding author

About the authors.

Le Chi Cong is an Associate Professor of Tourism Faculty at Nha Trang Univerisity. His research interests are destination quality, satisfaction of visitors, satisfaction–loyalty consistency. His recent works have appeared in Journal of Food Quality and Preference; Journal of Hospitality and Tourism Management; Asia Pacific Journal of Marketing and Logistics; International Journal of Tourism Cities; Tourism Planning and Development; Journal of Economics and Development (Vietnam).

Dao Anh Thu is a Lecturer in the Tourism Faculty at Nha Trang University. She teaches on the marketing in hospitality. Her areas of study are marketing communications, consumer behaviour and organisational behaviour.

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• Oct 7, 2023

Top 10 Most Influential Business Leaders in the Hospitality Sector

Updated: Oct 8, 2023

The hospitality industry relies on visionary leadership to drive growth, innovation and success. Here are our top ten business leaders influencing the future of the global hospitality sector: Chris Nassetta, Federico J. González, Anthony Capuano, Dr. Jeffrey O, Satya Anand, Chip Conley, Patrick Pacious, Jonathan Tisch, Kit Kemp and Elie W. Maalouf. We have added Greg O'Hara as an additional hospitality leader worth mentioning.

1. Chris Nassetta

Chris Nassetta has been the President and CEO of Hilton since 2007, overseeing the company's global growth and expansion. Under his leadership, Hilton has grown from 2,800 properties to over 6,500 properties worldwide today. Its brand portfolio has also expanded to 18 brands.

Nassetta prioritized investments in technology advancements like the Hilton Honors app and Digital Key. He championed Hilton's sustainability efforts, including programs to cut greenhouse gas emissions, reduce waste, and implement responsible construction. He also launched innovative partnerships, like the collaboration with Lyft to allow riders to book and access Hilton hotel rooms directly via the Lyft app.

Nassetta was names "CEO of the Year" by Chief Executive magazine in 2020. he serves on numerous boards and executive committees, including World Travel & Tourism Council, Business Roundtable, and American Hotel & Lodging Association.

He frequently shares updates and insights with over 200K followers on LinkedIn regarding Hilton's growth, innovations, company culture and more. He is known for his charismatic leadership style, focus on innovation and customer experience, and passion for expanding Hilton's brands globally under a unified company culture.

2. Federico J. González

Federico J. González is the Executive Vice Chairman of Radisson Hotel Group. Prior to this, he was the President and CEO of Radisson Hotel Group up until May 2023. González joined Radisson in 2013 and was instrumental in the company’s rebranding from Carlson Rezidor Hotel Group to Radisson Hotel Group in 2018. He has led the revitalization and repositioning of Radisson as a contemporary, relevant hotel brand.

Under González’s leadership, Radisson Hotel Group has expanded its global portfolio to over 1,500 hotels in operation and under development. The company has targeted adding over 500 new hotels by 2025.

Expansion efforts are focused heavily on EMEA and APAC, with plans to double Radisson’s presence in China specifically. González also aims to grow the presence of Radisson’s upscale and lifestyle brands like Radisson Collection and Radisson RED.

González’s background includes over 25 years working with premier hospitality brands. He previously served as CEO of NH Hotels and held various executive roles within NH Hotel Group, Disneyland Paris and Ciga Hotels. Known for his hands-on leadership style, González has been instrumental in reinvigorating Radisson’s brand image and driving impressive growth. Under González’s strategic leadership, Radisson Hotel Group positioned itself to become a globally recognized hospitality brand. González is currently the Group CEO of Louvre Hotels Group, a role he started in May 2023.

3. Anthony Capuano

Anthony Capuano serves as President and Chief Executive Officer of Marriott International, the world’s largest hotel company. He assumed the role in 2021 after a nearly 25-year career with Marriott.

As CEO, Capuano has focused on driving Marriott’s post-pandemic recovery and further growing its portfolio of over 8,000 properties across 139 countries. He has emphasized leveraging technology to enhance the guest experience and operational efficiency.

Capuano previously held roles as Marriott’s Global Chief Development Officer and Global Lodging Services Officer. He led the company’s global development efforts, overseeing a pipeline of over 500,000 rooms. Before joining Marriott in 1995, Capuano was a senior consultant with Laventhol & Horwath. He also served as VP of Owner Services for The Branard Company. Capuano earned his bachelor’s degree in Hotel Administration from Cornell University. He serves on the American Hotel & Lodging Association Board of Directors.

4. Dr. Jeffrey O

Dr. Jeffrey O is a renowned hospitality leader, educator, inspirational speaker, leadership coach, and author. Having been featured on the cover of many business and hospitality magazines, he is known as one of the influential leaders in the world of Hospitality. In addition to being the Chairman of the Board of Directors at St. Justine, he is also the president of the International Hospitality Institute (IHI) where he oversees global operations and organizes the annual Global Hospitality Summit (GHS).

Dr. Jeffrey O is an acclaimed author, with both fiction and non-fiction works to his name. Kirkus Reviews described his most recent thriller, Dead or Alive, as a “razor-sharp crime tale” and its protagonist as a “superlative hero.” Not only that, but Jeffrey is the inventor of the START Model™, a goal-setting and problem-solving tool designed for business professionals and coaches.

Dr. Jeffrey O previously served as the Chairman at Telacoach®. He has spent a good part of his career coaching executives in public speaking, executive presence, and strategic leadership.

5. Satya Anand

Satya Anand is the President for Europe, Middle East and Africa (EMEA) at Marriott International, where he is responsible for overseeing all business functions in the region, including operations, finance, human resources, legal, development, brands, sales and marketing. He provides strategic leadership for more than 998 hotels across 75 countries and territories.

Satya has been with Marriott International since 1988, when he started as a Night Auditor at the Vienna Marriott Hotel. Since then, he has held a number of leadership positions, including General Manager, Area Vice President in Western and Central Europe, Chief Financial Officer for Europe, and Board Member for AC by Marriott Hotels, of which he drove the performance of the brand in Spain and Italy in partnership with Antonio Catalan.

Most recently, Satya was Chief Operations Officer, Luxury & Southern Europe and Global Design EMEA, before his appointment as President, EMEA in 2020.

Originally from India, Satya graduated in Accounting from Bangalore MES College of Commerce. In 1988, he moved to Austria and completed his diploma in Hotel and Tourism Management from the International College of Tourism and Management, located in Semmering. Satya is currently based at Marriott International’s London regional office, residing between the UK and Vienna. In his free time, Satya enjoys playing tennis and golf with family and friends.

6. Chip Conley

Chip Conley is on a mission to revolutionize the hospitality industry a second time. After founding Joie de Vivre Hospitality, the second-largest operator of boutique hotels in the world, and then serving as Airbnb’s Head of Global Hospitality and Strategy, Conley co-founded Modern Elder Academy in January 2018. This academy is the first-ever ‘midlife wisdom school,’ and is dedicated to reframing the concept of aging. With over 3,000 alumni from 42 countries and 26 regional chapters, Modern Elder Academy is expanding to the United States with a new campus and regenerative community slated for Santa Fe, New Mexico in 2024.

Additionally, Conley is the recipient of hospitality’s highest honor, the Pioneer Award, and was named the Most Innovative CEO in the San Francisco Bay Area by the San Francisco Business Times. He is the founder of the Celebrity Pool Toss that supports families in the Tenderloin neighbourhood, and the San Francisco’s Hotel Hero Awards. Furthermore, he serves on the board of Encore.org , and the advisory board for the Stanford Center for Longevity.

7. Patrick Pacious

Patrick Pacious has served as President and Chief Executive Officer of Choice Hotels since January 2018. He is responsible for guiding the company’s strategic vision, growth, and performance.

Choice Hotels franchises over 7,400 hotels worldwide across its brand portfolio, including Comfort Inn, Quality Inn, Clarion, and Ascend Hotel Collection. Under Pacious’s leadership, Choice has accelerated growth for its upscale Cambria Hotels brand, reaching over 100 locations.

Pacious joined Choice Hotels in 2005, bringing over 15 years of experience in finance, accounting, and consulting. He previously held executive roles as Chief Operating Officer and Chief Financial Officer.

As CEO, Pacious has focused on expanding Choice’s digital capabilities and technology offerings. He oversaw the launch of AI-enabled revenue management platforms, self-service check-in, virtual voice assistants, and enhanced mobile apps.

In 2019, Choice launched Everhome Suites, a new extended stay concept targeting younger travelers. The brand represents one of Choice’s largest investments in decades. Revenues at Choice Hotels have grown to over $1 billion annually under Pacious’s leadership. In 2020, he managed through the challenges of the COVID-19 pandemic, protecting jobs and maintaining Choice’s financial strength.

8. Jonathan Tisch

Jonathan Tisch serves as Chairman and CEO of Loews Hotels. He is a member of the founding family of Loews Corporation, which owns and operates a portfolio of 24 luxury hotels and resorts.

As CEO since 1999, Tisch has overseen Loews Hotels’ growth and development, the launch of new brands, and enhancements to its guest loyalty program. He has expanded the brand’s presence on both coasts of the U.S. and into Canada. Tisch co-chairs the board of Loews Corp. with his cousin Andrew Tisch. Together, they led Loews Hotels through challenges like 9/11 and the 2008 recession while maintaining positive financial performance.

In addition to his role at Loews, Tisch is the Chairman of NYC & Company, New York City’s destination marketing organization. He also co-chairs the board of the Tribeca Film Festival and serves on boards for organizations like Robin Hood Foundation.

Active in philanthropy, Tisch funds initiatives focused on healthcare, education, and the arts. He also frequently promotes New York City tourism on social media channels including Instagram. Tisch is a co-owner of the New York Football Giants.

9. Kit Kemp

Kit Kemp is an influential British interior designer and decor entrepreneur. As design director of Firmdale Hotels, Kemp injects her signature look of vibrant colors, rich textures, and playful patterns into boutique hotel interiors around the world.

Born in England in 1959, Kemp studied at the Kensington Design Centre. She began her career working for an antique dealer, which inspired her love of mixing vintage and contemporary pieces. Her aesthetic developed into a layered maximalist style full of whimsical detail.

In 1994, Kemp co-founded Firmdale Hotels with her husband Tim Kemp, bringing her design talent to hospitality. Her most famous interiors are at London's Kit Kemp-designed Crosby Street Hotel and The Whitby Hotel. Known as "joyful spaces," they feature Kemp's trademark floral wallpapers, custom-designed furniture, mosaic tile floors, and elaborate fabric combinations.

Beyond Firmdale, Kit Kemp has expanded into product design, partnering with various brands over the years to create fabric, wallpaper, rug, lighting, and furniture collections. Companies such as Christie's, Lee Jofa, and Larsen have all collaborated with Kemp to produce lifestyle products featuring her sense of colour and pattern.

An influential tastemaker, Kemp has been widely featured and honoured for her contributions to interior design. She received an OBE from Queen Elizabeth II in 2011. Her recognizable signature style combines vintage English quirkiness with contemporary cosmopolitan flair. Kemp continues to oversee design at Firmdale while growing her product business and remaining an iconic presence in the design world.

10. Elie W. Maalouf

In July 2023, Elie was appointed Chief Executive Officer of IHG. Prior to this, Elie had served as Chief Executive Officer, Americas since February 2015. He is responsible for the executive oversight of the Group, and for ensuring that Board strategy and policy are implemented.

Before joining IHG, Elie was President and Chief Executive Officer of HMSHost Corporation for six years, where he was also a member of the board of directors. Elie has a diverse global experience, encompassing hotel development, branding, finance, real estate, operations management, and food and beverage. He was a Senior Advisor with McKinsey & Company from 2012 to 2014.

Elie is a member of the American Hotel & Lodging Association Executive Committee of the Board, and the U.S. Travel Association CEO Roundtable, and participates in organizations that promote the travel and hospitality industries. He is also a member of the Global Advisory Council at the University of Virginia Darden School of Business, and a board member of the Atlanta Committee for Progress.

Worth mentioning

Greg O'Hara

Greg O’Hara is the founder and Senior Managing Director of Certares, a private equity firm focused on investments in the travel, tourism, and hospitality sectors. O’Hara established Certares in 2012 in partnership with management from prominent travel companies. Under his leadership, Certares has deployed over $3 billion of equity capital across platforms in hospitality tech, travel distribution, hotels, destinations services, and other verticals.

Prior to founding Certares, O’Hara served as Chief Investment Officer at JPMorgan Chase's Special Investments Group. He was responsible for over $1 billion in private equity investments for the firm.

O’Hara currently serves on the boards of Internova, Travel Leaders Group, American Express Global Business Travel, and other hospitality companies. He previously held board positions with Travelport, Galileo International, and Carlson Wagonlit Travel.

In 2016, O’Hara was inducted into the Business Travel Hall of Fame for his outstanding contributions and leadership in business travel. With over 25 years of executive experience in travel investment, O’Hara brings deep expertise and strategic vision to Certares’ hospitality private equity portfolio. His leadership continues to transform the industry.

Together, these diverse industry leaders are shaping the future of the hospitality sector through their vision, investments, and passion for hospitality. Their influence propels the industry’s ongoing innovation and financial success.

• Hospitality

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5 Keys to Successful Hospitality Leadership

By Sarah Andersen

After completing the senior capstone Hospitality Leadership course at Boston University, I had the chance to reflect on the class topics and apply the teachings to my personal life. The course explored several different levels of leadership, from the head of a major corporation role to developing self-leadership. I learned the importance of a mission, vision, and values in an organization, better understood the components of change management, and worked with a group throughout the semester to develop my teamwork skills. I was able to critically analyze concepts and models presented in leadership literature as well as improve my own leadership skills.

I then interviewed three prominent leaders in hospitality and found connections between their industry insights and my leadership class discussions. dan donahue, president of saunders hotel group, len wolman, chairman and ceo of waterford hotel group, and geoff ballotti, president and ceo of wyndham hotel group kindly shared their experiences and explained their personal values and company’s culture, revealing the five keys to successful leadership..

“Leadership is the capacity to translate vision into reality.”

                                                           -Warren G. Bennis

Establishing Shared Beliefs, Values, and Goals

When an organization wants to achieve its goals, it needs a vision.   Effective leadership starts with the ability to recognize and outline those goals and inspire others to follow. Leaders paint a picture of how that vision will affect the company as a whole, as well as each individual. A leader’s ability to articulate that vision into a mission statement corresponds to the active implementation of goals and the company’s bottom line success. A productive vision goes beyond a written organizational mission statement, but instead permeates throughout all levels of a company and manifests into actions and beliefs. John P. Kotter, author of Business Leadership , writes, “A vision says something that helps clarify the direction in which an organization wants to move [and] is relatively easy to communicate, appealing to customers, stockholders, and employees.” 1 It is therefore up to hospitality leaders to set and clearly communicate a vision, and to inspire those around them to share and implement it.

A vision does not belong only to a leader. It must be a shared vision that attracts everyone to sustain high levels of motivation and withstand challenges. According to The Leadership Challenge , by James M. Kouzes and Barry Z. Posner, leaders can envision the future by imagining the possibilities and finding a common purpose. 2 In addition, leaders must spark a sense of meaning and purpose in those around them. Dan Donahue agrees that, “My job, as someone who has the vision, is to get you inspired and committed to sharing that vision and sharing that creativity to the point where you have buy-in.”

After seven years of rigorous research, a landmark study of the observations from more than 100 CEOs and over 8,000 employees found that “leaders who were clear about their values delivered as much as five times greater returns for their organizations as did leaders of weak character.” 3

So how do illustrious CEOs and successful leaders in our industry shape the parameters for success through a shared vision for a future? How do they empower and inspire those around them to make decisions and work towards their goals?

Balancing Accountability and Autonomy

When asked what his core values were, Len Wolman responded, “First and foremost, our organization has been built on integrity and transparency. We have four core values that we live by on a daily basis which are to (1) to wow the customer, (2) to continuously improve, (3) to be a passionate and committed team, and (4) to share and sustain our bottom line success.”

Dan Donahue, established that, “Our values are simple. Our values are people. We allow them the flexibility and latitude to do their jobs under the guide of taking care of the guest, but also taking care of themselves as well.” To strengthen others, exemplary leaders increase people’s belief in their ability to make a difference. They move from being in control to giving over control. Developing associates into leaders and enhancing self-determination creates a culture of empowerment and confidence. Geoff Ballotti agrees that, “In terms of motivating others, it is letting them make decisions. It’s not micromanaging, but rather letting them come up with the solutions.”

Geoff Ballotti continues, “Our core value statement is three words, ‘Count On Me,’ which is all about accountability. It is about people being able to be counted on at any time, for any issue, any question, any decision, and any support that our owners, franchisees, and associates need. It is built on the principal of integrity in terms of taking personal responsibility for your actions.” Accountability is important because it results in an extremely efficient and productive team. According to the U.S. Office of Personnel Management, accountability in the workplace is linked to higher performance and increases in commitment to work and employee morale. 4

Dan Donahue, states, “A vision has to be fluid. To get to an achievable goal and vision, whether short term or long term, you need to be present, you need to understand that if you want it to be successful you need to be there, you need to be accountable to it, and you need to be accountable to the people that want to share that.” When accountability becomes embedded into culture, company’s are able to set meaningful goals, develop team buy-in, build trust through support and encouragement, and celebrate successes together. Accountability is about creating a culture where people value responsibility. When associates understand that accountability involves a certain degree of autonomy, mutual respect develops between all levels of an organization.

Mr. Ballotti adds, “The third leg of our values is all about respect. Respecting everyone everywhere both on our ownership side and the community side.” When leaders develop mutual respect, associates are more likely to work harder to accomplish shared goals. Harvard Business Review examined employee needs and determined through a query of more than 19,000 workers that most employees desire renewal, value, focus and purpose. 5 Feeling a sense of value and respect can instill an employee with confidence and motivation. Len Wolman adds that, “I’ve been in the industry for many years, I was educated in the industry and then worked my way up through the industry, so I’m fortunate in that I have the perspective of having worked in various positions. So I have empathy, understanding, and respect for each position. Everyone needs to be treated with mutual respect and understanding.”

Modeling by Example

An important part of being an effective leader is educating others on what the organization stands for and why it matters. When leaders sincerely express a commitment to their core values, they’re also making a commitment on behalf of the entire organization. Therefore, leaders must make sure there is collective agreement on the shared values amongst everyone they lead.

So how do leaders become a role model for what the organization stands for?

The answer is pretty simple. They set the example for others to follow. Holding others accountable to values and standards means leaders must live the values themselves. Dan Donahue responds, “I would never ask an employee to do something I wouldn’t do myself.” Len Wolman agrees adding, “You always want to set an example and never want to expect anyone to do anything that you wouldn’t do yourself.” Researcher on behavioral integrity demonstrates that the alignment between a leader’s words and actions has a powerful impact on how much constituents trust the leader and on their subsequent performance levels. 6 Great leaders effectively translate intention into reality by acting on the values they teach and the things they say to those around them.

Showing Vulnerability and Visibility

Confidence is an important skill to possess as a leader. However, having vulnerability as a leader is just as essential to recognize and appreciate. Every leader has vulnerability, but great leaders have the self-awareness to recognize this fact and feel comfortable expressing their weaknesses. Showing vulnerability is a relatable trait and Geoff Ballotti finds that, “The greatest leaders I know out there are very comfortable talking about their weaknesses, about what it is that they need to work on, to improve upon, and to do better.” Effective leaders invest the thinking, the time, the energy and are prepared for the vulnerability of connecting with others.

So how do these leaders earn trust, inspire, and build bonds with those they lead?

Great leaders inspire their associates and guests by genuinely connecting to them through a consistent presence and visibility. Visibility as a leader not only includes having a physical presence, but also aligning everyone to the purpose behind their shared vision through natural conversations and casual exchanges on a daily basis. When asked how he communicates company goals and the overall vision, Dan Donahue replied, “If you have a presence, it happens organically. It doesn’t need to be contrived.” The purpose of this sincere visibility is not about the need to “check on employees,” but rather an honest desire to interact with associates in order to gauge motivation and learn if employees need support or help. Mr. Wolman agrees that, “It is critical to operate with an open door policy and listen to everyone’s perspective and ideas, particularly the people who are executing the day to day functions, and I think you’ve got to be constantly evaluating that.”

Mr. Ballotti adds, “I also think showing empathy is key and the best way great leaders do that is through the art of storytelling when they’re up in front of their associate base or leadership team, being able to tell stories that connect and engage and inspire and motivate in terms of the culture your want to set and want to build.” Storytelling is a powerful way to share knowledge, push information at people or pull them into a company’s vision and mission by reinforcing the intent behind authentic leadership. According to Edgar Schein, Professor Emeritus at the MIT Sloan School of Management, “[Stories] also strengthen the framework and the importance of an organization’s culture by establishing norms and values.” 7 Good stories compel, persuade, and unify others around the leaders’ vision.

Creativity Breads Adaptability

“Hospitality isn’t about a product on the shelf. Hospitality is about creating something that changes day to day, hour to hour, or minute by minute.” – Dan Donahue

IBM’s 2010 Global CEO Study, which surveyed more than 1,500 CEOs from 60 countries and 33 industries worldwide, concluded that creativity is the most important leadership quality for success in business, outweighing competencies such as integrity and global thinking. 8 Geoff Ballotti agrees that, “Creativity is critical, especially in the business that we’re in. We’re trying to redefine and reposition our brand from a creative standpoint in terms of experience.” What defines one brand from another and what makes one brand more successful than another is the creativity that it delivers as well as the experience it delivers to its guests. Understanding how to generate great ideas is a crucial leadership trait in hospitality’s innovation-driven industry. Successful leaders create an environment where associates can contribute their imagination and insight, which is critical because most innovations draw upon the contributions of many.

Today’s business environment is unpredictable, changeable and increasingly complex. Therefore, the ability to create something that is both innovative and applicable is on the top of leader’s minds. Mr. Donahue states, “Nothing in our business can be or should be cookie cutter. It’s about curating an experience for each person who spends to be with you.” Len Wolman adds, “If you’re not creative and open to change in todays world with the disruptors that exist in our industry, particularly with technology, you will not be successful. You need to be creative in terms of staying ahead, staying current and relevant, and get managing the costs associated with change in a way that your organization can still be successful and profitable.”

In an industry of constant change, great hospitality leaders need to capitalize on the opportunities that are ripe for the present context and plan for the likely future state. Change requires creating a new system, which demands effective leadership. It is crucial that leaders first acknowledge how hard it can be to drive others outside of their comfort zones and push for change. When asked how he responds to change, Len Wolman replied, “A crucial element is feedback. We get daily feedback that is current and relevant, whether it be Trip Advisor, direct contact with our guests, or direct contact with our associates. We need to listen to it, we need to respond to it, and we need to adjust to the things that people are looking for whether it be the consumer or the work environment.” Those who create new initiatives, programing, design, and brand essence are the ones who succeed. By supporting creativity and commanding change, leaders can increase workplace satisfaction and build driven teams that craft original, valuable ideas.

Figure 1: Interview Questions

• When associates are inspired by their leaders, they are more confident, they know what’s expected, and they feel empowered to make decisions and work toward their goals. So with your vast experience in the hospitality industry, what are some ways you empower and inspire those around you to make decisions and really motivate others?
• Do you have a specific set of core values? They can be personal or related to your company.
• How do you hold others accountable to those values and standards as a leader? Are there specific tools or methods you provide your associates to help them work towards that unified goal?
• Confidence is obviously an important skill to possess as a leader, but do you think showing vulnerability as a leader is important as well? This can be shown through being more visible to others around you, taking risks, being vocal and clear about your specific goals as a leader….
• Creativity is essential to the entrepreneurship that gets new businesses started and that sustains the best companies after they have reached a global scale. Do you consider creativity to be a manageable trait? Is creativity a focus of your attention as a leader?
• How do you adapt to various situations in an age of rapid change (with technology and this millennial “mindset” emergence)? What are the key components to having an adaptable mindset?

Closing Thoughts

It has been made clear through the interview process of these three prominent industry leaders that establishing shared values, balancing accountability with autonomy, modeling by example, showing vulnerability through visibility, and having a creative mindset that is open to change are all essential factors to being a successful leader. The common theme amongst all these traits and elements to successful leadership, however, is each leader’s dependence and trust for their associates. At one point during the interview, Mr. Ballotti pointed out that, “Great leaders are those who surround themselves with great people…who are brighter, and smarter, and more diverse in thought than they are. And who are able to build a team that knows how to support and trust each other.” It is clear that effective leadership boils down to a leaders ability to unlock the full potential in those around them. Len Wolman adds that it “We take care of our associates so that they take care of our guests, which keeps the guests coming back and is the reason we are in business.“ Dan Donahue also notes, “You have to realize each individual employee’s needs. Make a connection with your employees every single day.” All good leaders were once followers themselves and have learned to establish and foster trust over time. A true leader passes praise and shares the blame, lifting up those around them. 9 Without followers, great leaders cannot lead.

PDF Version Available Here

Sarah R. Andersen is a senior at Boston University’s School of Hospitality Administration. Her areas of interest include integrated marketing communications and real estate development. Beyond her studies in hospitality, she is a member of the BU Women’s Lacrosse team. She plans to continue her studies at Boston University after graduating with her bachelor’s degree by enrolling in the School of Hospitality’s Master of Management in Hospitality program.

Gallos, joan v.  business leadership . second edition ed., a jossey-bass reader., kouzes, james m., and barry z. posner.  the leadership challenge: how to make extraordinary things happen in organizations . sixth edition ed., wiley, 2017., carson, and e. a. phelps, “regulating the expectation of reward,” nature neuroscience 11, no.8 (2008):880-881, “performance management: accountability can have positive results.”  u.s. office of personnel management . web., porath, tony schwartzchristine. “the power of meeting your employees’ needs.”  harvard business review , 6 dec. 2017., c. m. shea and j.m. howell, “charismatic leadership and task feedback: a laboratory study of their effects on self-efficacy and task performance,” leadership quarterly 10, no. 3 (1999), marshall, john, and matthew adamic. “the story is the message: shaping corporate culture.”  journal of business strategy , vol. 31, no. 2, 2010, pp. 18–23., “creativity selected as most crucial factor for future success.”  ibm 2010 global ceo study , 18 may 2010., henderson, aaron m.  building effective leadership from the ground up . llumina press, 2004., share this:.

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Tourism and Hospitality Industry Leadership Group

Discover how this group champions the national tourism strategy, Scotland Outlook 2030.

This group helps to drive recovery and sustainable growth across both tourism and hospitality in the long term. It also supports work to grow the value and enhance the benefits of tourism across Scotland.

To achieve this, the group brings tourism industry representatives together with public agencies.

In this article:

1. who sits on the tourism and hospitality industry leadership group, 2. what does the group do, 3. more information about the group.

The group includes individuals from across the public, private and the third sector. Members have knowledge and experience of destinations, sectors and businesses.

Individuals were all appointed through an open application process. They were appointed as individuals and not as representatives of companies or organisations. Separately, nine organisations are also represented on the group.

• Richard Lochhead MSP, Minister for Small Business, Innovation, Tourism and Trade 
• Marc Crothall, Chief Executive of the Scottish Tourism Alliance
• Judy Rae, OnFife Cultural Trust

Organisation members

• Highlands and Islands Enterprise
• Scottish Enterprise
• South of Scotland Enterprise
• Scottish Tourism Alliance
• Scottish Government
• Skills Development Scotland
• VisitScotland

Industry members

• Aileen Crawford, Glasgow Life
• Andrea Nicholas, Green Business UK Ltd / Green Tourism Certification Programme
• Barbara Smith, industry expert
• Benjamin Carey, Carey Tourism
• Calum Ross, Loch Melfort Hotel Ltd / Highlands and Islands Enterprise/Red Roof Business Support Ltd
• Carron Tobin, RuralDimensions Ltd
• Chris Greenwood, Moffat Centre for Travel and Tourism Business Development Glasgow School for Business and Society Glasgow Caledonian University
• Debbie Johnson, IHG Hotels and Resorts
• Joshua Ryan-Saha, Traveltech for Scotland TourismTech at Edinburgh Futures Insititute (University of Edinburgh)
• Joss Croft, UKinbound
• Kat Brogan, Mercat Tours and Mercat Tours International
• Kelly Johnstone, The Springboard Charity
• Leon Thompson, UKHospitality Scotland
• Melanie Allen, Chair, Galloway and Southern Ayrshire UNESCO Biosphere/owner, Nithbank Country Estate
• Michael Golding, Association of Scottish Visitor Attractions
• Stephen Duncan, Historic Environment Scotland

The group provides a collaborative strategic forum. This enables leaders from across the industry to engage with each other, government and its agencies.

It works to maximise the economic, social and cultural contribution of tourism and hospitality.

The group too is set up to support the ambitions of the Scottish Government’s National Strategy for Economic Transformation (NSET).

In its activities, the group considers the four key priorities of Scotland Outlook 2030:

passionate people

thriving places

diverse businesses

memorable experiences

Read the group's minutes on gov.scot.

Please use these external links to learn more about the Tourism and Hospitality Industry Leadership Group and its mission.

Tourism and Hospitality Industry Leadership Group activities

Check out a detailed overview of the group's activities on the Scottish Government website.

Scotland Outlook 2030 at a glance

Read all about Scotland's responsible tourism strategy for a sustainable future.

Related links

Short-term lets legislation changes in scotland, our regional team, events and training, event industry advisory group.

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Minister Ferrada to speak at the Tourism Industry Association of the Yukon’s Spring Conference

From: Innovation, Science and Economic Development Canada

Media advisory

The Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec, will speak with tourism industry leaders at the Tourism Industry Association of the Yukon’s Spring Conference to chart a course toward success in the tourism sector.

April 22, 2024 – Whitehorse, Yukon

Date: Thursday, April 25, 2024

Time: 8:30 am (MST)

Location: Whitehorse, Yukon

Members of the media are asked to contact ISED Media Relations at [email protected] to receive event location details and confirm their attendance.

Marie-Justine Torres Press Secretary Office of the Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec 613-327-5918 [email protected]

Media Relations Innovation, Science and Economic Development Canada [email protected]

Stay connected

Follow Canadian Tourism on social media.

X (Twitter):  @cdntourism | Instagram:  @cdntourism

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Tourism and Hospitality Industry Leadership Group minutes: June 2023

Minutes from the meeting of the group on 21 June 2023.

Attendees and apologies

Industry leadership group (ilg) members attending:.

• Andrea Nicholas, Green Business UK Ltd/Green Tourism Certification Programme
• Anna Miller, Highlands  and  Islands Enterprise
• Benjamin Carey, Carey Tourism
• Calum Ross, Loch Melfort Hotel Ltd/Highlands and Islands Enterprise/Red Roof Business Support Ltd
• Carron Tobin, RuralDimensions Ltd
• Chris Brodie, Skills Development Scotland
• Chris Greenwood, Moffat Centre for Travel and Tourism Business Development Glasgow School for Business and Society Glasgow Caledonian University
• Colin Cook, Scottish Government
• Debbie Johnson, IHG Hotels and Resorts
• James Fowlie, COSLA
• Joshua Ryan-Saha, Traveltech for Scotland TourismTech at Edinburgh Futures Insititute (University of Edinburgh)
• Joss Croft, UKinbound
• Judy Rae, OnFife Cultural Trust
• Kat Brogan, Mercat Tours and Mercat Tours International
• Karen Jackson, South of Scotland Enterprise
• Kelly Johnstone, The Springboard Charity
• Leon Thompson, UKHospitality Scotland
• Marc Crothall, Scottish Tourism Alliance
• Melanie Allen, Chair, Galloway and Southern Ayrshire UNESCO Biosphere/owner, Nithbank Country Estate
• Richard Lochhead MSP, Scottish Government
• Rob Dickson, VisitScotland
• Stephen Duncan, Historic Environment Scotland

ILG Members Apologies:

• Aileen Crawford, Glasgow Life
• Barbara Smith, Diageo
• Bryan Simpson, Unite
• Derek Shaw, Scottish Enterprise
• Chris O’Brien, Nevis Range  
• Michael Golding, Visit Inverness Loch Ness
• Russell Murray, Wilderness Group/Wilderness Scotland
• Caroline Cantin, Scottish Government
• Karen Christie, Scottish Tourism Alliance
• Eleanor Styles, Scottish Government   
• Lawrence Durden, Skills Development Scotland
• Judith Young, Scottish Government  
• Mark Rowley, South of Scotland Enterprise

Items and actions

MC welcomed everyone to the fourth meeting of the Tourism and Hospitality Industry Leadership Group.

It was noted that due to technical problems Michael Golding was unable to attend online as originally intended.

Apologies were noted.

Introductory comments

Marc Crothall provided a general update on initiatives and activities which are ongoing, and which impact the sector.

New Deal for Business Group

MC shared a presentation outlining the purpose of the Scottish Government’s New Deal for Business Group (NDBG) and the 5 sub-groups which are currently preparing a set of recommendations for endorsement by the NDBG before submission to the First Minister at the end of June.

The four priority areas of focus for the NDBG are:

• shared awareness of the economic and business environment
• developing the best environment to do business
• enhanced partnership working
• contribution to a Wellbeing Economy

The five sub-groups are:

• Regulatory Review Sub-Group (the existing Joint Regulatory Taskforce)
• Business Partnership Sub-Group
• Non-Domestic Rates Sub-Group
• Wellbeing Economy Sub-Group
• Sharing Key Metrics Sub-Group

The presentation was circulated to ILG member after meeting.

Note: On 29th June the New Deal for Business Group Report was published by Scottish Government, following 5-6 weeks of work done by the five sub-groups. 

Review of the Skills Delivery Landscape - James Withers Report

The James Withers report was published on 7 June with an accompanying news release.

A summary of the recommendations from the James Withers report was circulated to ILG members in advance of the meeting.

The Tourism and Hospitality Skills Group are currently digesting the content of the report.

It was noted that Skills Development Scotland met with Mr Dey last week. Mr Dey had advised that it would take time to consider the implementation of the review.

SDS are engaged in the process and see it as an opportunity.

ILG Chairs Meeting

The next meeting of the ILG Chairs will take place in-person on 24 August.

The meeting is co-chaired by the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, Neil Gray and Nora Senior. For information, a review of the ILG’s in Scotland, conducted by Nora Senior and published in July 2020 can be found here .

The agenda for the next meeting will focus on sharing best practice across different sectors.

MC will continue to discuss the opportunity to bring together representatives from across all ILGs to share best practice.

Scottish Tourism Alliance – Industry Survey – Headline Results

More than half of tourism and hospitality businesses that responded, (52%) are still in ‘survival mode’ or ‘consolidation’, demonstrating the continued fragility of the sector following COVID-19 and the ongoing financial crisis.

Almost half of businesses do not have enough cash reserves for the next quarter.

Nearly 60% of businesses say that they want the Scottish Government to hold off on introducing and progressing additional regulations until the economy further recovers.

39% of businesses responded that current domestic bookings for June to September this year are lower compared to the same period in 2022.

However, looking towards October to December 2023, over half of businesses (51%) are reporting that they feel ‘fairly’ or ‘very pessimistic’ about the outlook for their business.

Only 1% of respondents said their business was ready to expand.

Nearly half of respondents (49%) said they do not support the introduction of a visitor levy and a quarter of those that do, only do so only if the net revenue raised is ‘used solely for tourism investment and enhancement’.

Richard Lochhead, Minister for Small Business, Innovation, Tourism and Trade

RL highlighted that he was delighted to attend his first meeting of the Tourism and Hospitality Industry Leadership Group with ‘Tourism’ firmly added to his title and noted that he was very proud to be the Tourism Minister.

RL advised that he was looking forward to getting out and about during the summer recess visiting as many tourism and hospitality businesses as he can.

As the peak of the season approaches it is very heartening to hear such positive feedback from across the sector such as visitor attractions, hospitality businesses. Geographically the feedback is also positive, Edinburgh is doing very well as is Moray.

Despite positive visitor numbers and spend it is recognised that the sector continues to face significant challenges such as skills shortages, inflation, high interest rates and that this is creating a very tough landscape in which to operate.

RL noted that it was encouraging to see the latest IPS data which shows international visitor numbers in 2022 to be slightly behind 2019 but international visitor spend to be ahead of 2019.

Continuing on a positive note RL highlighted that the number of inward investment projects in Scotland is outperforming the UK and Europe. Scotland +3.3%, UK -6.4%, Europe +1%. Scotland is the top UK location for FDI outside London.

RL emphasised that he recognised the mix of the tough economic picture with the positive tourism news stories in Scotland.

RL highlighted the Scottish Government’s intent to reset relations with Scottish Businesses – to work together with business to put the right solutions in place recognising that we continue to work against a backdrop of uncertainty.

The Joint Task Force on Business Regulation (co-chaired by Minister Lochhead and COSLA) met yesterday. This group (now a sub-group of the New Deal for Business Group) will identify recommendations to improve the way government develops and implements policy proposals which have an impact on business and will also address how business can engage with that process.

RL reinforced his support for the delivery of Scotland Outlook 2030, highlighting an appetite to do more to address the challenges on skills and labour, to further explore opportunities within the innovation space and to ensure that government agendas are joined up, for example, transport and housing.

Note of previous meeting

The note of Previous Meeting (14 March 2023) was approved by the ILG on 14 April. MC reaffirmed this and advised that the meeting notes will be published on the Scottish Government website imminently.

Recap – ILG journey so far

To set the context for the workshop later in the agenda, Karen Christie, National Tourism Strategy Project Manager, provided a recap of the ILG journey so far.

Scotland Outlook 2030 – a brief reminder

Vision: Scotland – We will be the world leader in 21st century tourism.

Mission:  Together we will grow the value and positively enhance the benefits of tourism across Scotland by delivering the very best for our visitors, our businesses, our people, our communities and our environment.

It was noted that 21st century tourism is defined within the strategy document and provides a helpful context for the Vision and Mission. For example, “21st century tourism is about creating sustainable growth with everyone playing an active role. It’s about purpose and profit in equal measure, protecting people and place.”

Delivering SO2030

During the pandemic all COVID-19 response and recovery plans were aligned to the principles of SO2030.

Post pandemic, SO2030 is and will be delivered through three core elements:

• Core Activity (Business As Usual): Everyday business operations for public sector agencies and industry aligned to SO2030.
• Actions and Initiatives Over and Above Core Activity: S/M/L Actions which are beyond core activity (BAU), and which will help realise the vision and outcomes of SO2030.
• Strategic Game Changing Actions: Medium to long term game changing actions critical to becoming the world leader in 21st century tourism.

It was noted the ILG’s key area of influence is the strategic game changing actions – actions which will shift the dial and have a long term impact. This is where the ILG can add the most value to the delivery of the strategy moving forward.

ILG journey so far:

A recap of the work done by the ILG over the course of the first three meetings (23 November, 19 January and 14 March) was provided. It was noted that this work included a review and assessment of SO2030 as well as evidence and information gathering.

A high level summary of the output was shared. This included a number of common themes which could impact/support the delivery of SO2030.

It was highlighted by the ILG that one of the common themes identified, “challenges with transport infrastructure”, should also refer to other infrastructure challenges such as housing.

Action: A summary document, which summarises the output from the first three meetings (plus the conclusions from the meeting today - 21 June) is work in progress and will be completed in advance of the next ILG meeting on 27 September. (Secretariat)

Where are we now:

Five potential areas of focus were distilled from the output of the ILG work so far. These are five areas which will impact all the strategic priorities in SO2030 and where game changing actions are needed to achieve the ambitions of SO2030. The aim is to explore each of the five areas further and to challenge and stretch the thinking to 2030 and beyond.

Next Steps – shaping the ILG forward agenda:

It was noted that the five focus areas would be explored during the workshop today and if agreed, would form the basis of the ILG agenda moving forward.

Following the workshop, the five areas, are to be scoped out and developed further by producing a draft ‘Mission’ document for each one. This document will outline the ambition to be achieved and what it will take to achieve it.

Each of the draft ‘Mission’ documents will be reviewed at the next ILG meeting on 27 September.

Workshop introduction: Defining the game changing actions to make Scotland a world leader in 21st century tourism

Joshua Ryan-Saha shared the working titles for the five areas which had been identified as the initial focus areas for the ILG:

• Technology to Enable
• Sustainable Labour Supply
• Community Empowerment
• Net Zero Acceleration
• Sustainable Transport

JRS stressed that these five areas were not a fait accompli – they were just a starting point for further exploration.

JRS and ILG colleagues provided an overview of each of these areas, sharing why they were strategically important areas, a very brief overview of the work which is already underway in these areas and what the potential opportunities were for the ILG to add value.

It was noted that these five areas are intended to form the basis of the ILG agenda moving forward.

JRS provided guidelines for the workshop which would help explore these five areas in more depth.

ILG support framework

Rob Dickson, VisitScotland shared an update on the ILG support framework which VisitScotland will coordinate and facilitate. Information was provided on the following areas:

ILG communication support.

The roles and responsibilities of VisitScotland, individual members of the ILG and organisation members of the ILG were outlined.

• it was noted that ILG comms will use the Scotland Outlook 2030 identity
• ILG messaging will be drafted by VS resource and approved by the co-chairs
• all ILG members are encouraged to use the messaging as appropriate
• messaging in the first instance will be triggered by the quarterly ILG meetings and will continue to be updated as required, incorporating any substantive changes
• oppportunities for proactive industry-facing communications to support the ILG’s activity will also be considered when there are substantive changes

Action: ILG Communication Protocol to be shared with the ILG when the draft meeting notes are circulated. (Secretariat)

The following points were noted in discussion:

• communication is critical – it is important to make stakeholders aware of the work which the ILG is doing
• Highland Tourism was referenced as a good example of effective communication
• the work of the ILG must be transparent and reflect the collaborative working and partnership model being adopted by the ILG
• the language and messaging must be ambitious for the ILG to drive change

Support to progress the ILG agenda

This will take a programme approach and will initially focus on the five areas which have been identified, Technology to Enable, Sustainable Labour Supply, Community Empowerment, Net Zero Acceleration, Sustainable Transport.

ILG Secretariat.

RD advised that work was ongoing to determine the framework which will support the overall delivery of Scotland Outlook 2030, including monitoring progress of the strategy and identifying gaps in delivery.

Action: RD to share further details on the framework to support the overall delivery of Scotland Outlook 2030 when available.

The slides were shared with the ILG after the meeting for reference.

Close of morning session

Mr Lochhead thanked ILG members for their passion and commitment to tourism in Scotland and noted that their role as leaders and thought leaders was invaluable. The following points were highlighted in summary:

• tourism in 2030 will look very different to 2023 as the pace of change gets faster – this offers a very exciting opportunity for Scotland
• RL emphasised that his role was to create a better Scotland in which tourism can thrive as an industry
• ensuring a joined up approach between Scottish Government and agencies will be important to ensure that we can deliver on our vision for the future
• communities are at the heart of the kind of society that we want to build for the future

Mr Lochhead concluded that he was looking forward to getting feedback on the afternoon workshop session.

Workshop: Defining the game changing actions to make Scotland a world leader in 21st century tourism

JRS facilitated a workshop to explore the five focus areas, Technology to Enable, Sustainable Labour Supply, Community Empowerment, Net Zero Acceleration and Sustainable Transport. The workshop specifically considered what tourism in Scotland would look like in 2030 and how each of these areas could enable Scotland to be world leading. It also considered what the sector would need to start doing now to achieve this imagined future.

ILG colleagues created a narrative which described the future and identified initial actions.

ILG colleagues shared the output with full group.

The output from the workshop will be collated and analysed by JRS and his team. It was noted that the output from the workshop would form the basis for the ‘Mission’ documents.

Action: A summary of the workshop output, the key conclusions, and the next steps will be circulated with the draft meeting notes. (JRS and Secretariat)

ILG colleagues are to progress and develop a draft ‘Mission’ document before the next ILG meeting on 27 September.

Action: ILG colleagues to consider which of the five focus areas they would like to contribute to and confirm to [email protected] (All)

Any other business (AOB)

No AOB was noted.

Meeting Close

MC noted that it had been a good, productive day and thanked all ILG members who had contributed to the preparation of the meeting.

In summarising the meeting MC highlighted the following:

• the New Deal for Business Group, the Regulatory Review Group, ILG Chairs meeting and the Wither’s report are tangible evidence of an attempt by Scottish Government to positively shift their commitment to business. There is genuine recognition of the need to change the culture and approach to how Scottish Government and business can work together
• the recap at the start of the day was very useful to bring everyone up to speed on the journey so far and was a good foundation for the afternoon workshop
• the ILG support framework should provide reassurance to the ILG that there is a backbone in place to support the work of the ILG moving forward and its contribution to SO2030. It was noted that there is still more information to come

MC thanked everyone for their time and their contributions during the meeting noting that it was important for this group, as a strategic group, to constructively challenge as necessary.

ILG members were invited to reflect on the meeting and forward any additional thoughts on the topics which were discussed.

Action: All comments to be sent to [email protected]

The next meeting is Wednesday 27 September 2023, 11am to 3pm, at Technology and Innovation Centre, University of Strathclyde, Glasgow.

Tourism and Hospitality Industry Leadership Group

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Does the fate of tourism hinge on land use?

PolyU’s School of Hotel and Tourism Management

How we use land is central to how our societies function. Societal progress therefore frequently involves changes in land use, and in modern civilisation this is generally accomplished by official legislation. As the authors note, “land use change through a formal and regulatory framework is relatively recent, dating back to the mid-17th century, and the more comprehensive regulations to the early 20th century”. Being inherently tied to distinct local features, the fate of the tourism sector is particularly closely intertwined with land use legislation.

The economic consequences of land use changes are conventionally gauged through regulatory impact assessments. In societies worldwide, tourism is a key pillar of the economy. According to the researchers, however, “despite the importance of land use in tourism, there remains a critical gap in the literature of the assessment of changes in land use regulations”. This lack of understanding contrasts with the well-established literature on the impact of land use legislation in other economic contexts, such as agriculture, and may lead to regulatory changes being made by policymakers who are blind to their potential effects.

In both the developed and developing worlds, the reallocation of land for touristic usage is intended to support the economy. However, it is often a source of conflict, which “usually involves citizens opposing tourism development, and businesses supporting it for the reasons of economic growth”. However, even when efforts to redirect land use towards tourism succeed, economic growth is not guaranteed. The authors draw particular attention to a dearth of research investigating how small tourism businesses respond to regulatory changes, and whether the effects are positive.

Small and medium-sized enterprises (SMEs) are the bedrock of tourism, accounting for 70% of businesses in the sector, and are especially important in developing countries. Lacking the power and resources of larger firms, they are also particularly sensitive to regulatory changes. Tourism SMEs, as the researchers observe, are generally “dependent on debt financing due to limited access to other sources [of funding]” and tend to rely on fixed assets as collateral. Land is a major type of fixed asset, and therefore land use changes directly intersect with tourism SMEs’ attempts to grow using external financing.

The researchers’ focal country, Namibia, is an African nation that has seen a boom in land use allocation for tourism. “In 1990”, the authors note, “when Namibia gained independence, the government inherited an unbalanced distribution of land ownership”. This situation initially stifled economic growth by restricting communities’ ability to tap the country’s huge tourist potential. In the last two decades, however, the state has taken legislative steps to remedy this, including increasing the amount of land with communal access. Such land can legally be used for commercial ends, notably including tourism.

Specifically, a 2002 law opened the possibility of touristic land use under the auspices of communal conservancies, a type of local body governed by communal authorities. “This resulted in the development of Communal Joint Venture lodges through a partnership between the communal conservancies and the private sector”, the researchers tell us. The 46 Lodges now operating in Namibia employ numerous workers from local communities and have been supported by international development agencies. However, the Lodges’ ability to secure market financing and thus cement their long-term viability remains unproven.

To delve deeper into the Lodges’ situation, Lin and coworkers performed an impact assessment to investigate “whether the changes in land use regulations in Namibia impacted the Lodges’ ability to source market financing to continue growing, and their financial performance to stay competitive”. In other words, can these public–private joint ventures – which effectively represent a home-grown Namibian form of tourism SME – attract hard-nosed investors and become genuinely self-sufficient hospitality businesses in a market economy?

Interviewing representatives of key stakeholders in Namibia’s tourism sector, including banks, government departments, investors and law firms, the researchers acquired a wealth of expert opinion on the relationship between land use regulation and Lodge financing. They also personally visited a number of Lodges to obtain financial performance data, encompassing “a relatively well-rounded profile of operations in communal conservancies”. These statistics bolstered the study’s qualitative findings by providing a window into the financial status of the Lodges.

From the interviews with stakeholders, four themes emerged regarding the barriers to providing financing for Lodges: “unclear business viability; lack of acceptable collateral; poor quality of project proposals and financial information; and availability of alternative financing”. For example, the Lodges’ viability as tourism enterprises was hampered by the unclear legal boundaries of the sublease arrangements between conservancies and investors, while the relatively short (10-year) lease terms gave investors little confidence in their long-term prospects.

The legal robustness of the joint venture agreements was another sticking point for investors. “There was no explicit legal basis for the transfer of land use rights in communal conservancies for commercial purposes”, the researchers point out. This gave investors doubts about whether land use agreements would actually be upheld, making leases an ineffective form of collateral for obtaining financing for the Lodges. Meanwhile, financial institutions expressed doubts about some of the investors, noting that they were often owner–managers or “lifestyle” investors with little business acumen, thus providing inadequate operational data.

In their early days, communal conservancies received support from international agencies, often on relatively lax terms. While this had once played a vital developmental role, the continued availability of such “soft” alternative financing was now seen by banks as a safety net, preventing the Lodges from presenting as viable to investors. Those who did choose to invest encountered a complex web of parties expecting payment, often becoming subject to both lease fees and the land taxes passed on by conservancies, dubbed by one investor as “paying [twice] for the same product”.

Among the many other hurdles to investment were human resource issues and the terms of partnership agreements. These overlapped in the widespread stipulation for lodges to “hire from within the community, and not necessarily seek out the best trained, most productive staff from elsewhere as other non-joint venture lodges could”. Such terms made sense for conservancies, which often gained little economic benefit other than employment of locals, but clashed with the needs of private investors as they impaired the quality of service offered by the ventures.

The study’s conclusion is stark. Even if well intentioned, “land use regulations can negatively impact the growth and competitiveness of small tourism and hospitality enterprises through increased risk, lower financial performance, and unclear legality”. The authors call for caution by lawmakers who rule on land use changes, which can be a double-edged sword. They also note that possible agency conflicts – such as those between the governors of and investors in Namibian Lodges – must be considered as part of a holistic economic impact assessment of such laws, which will be crucial for devising better regulations in future.

About the authors

Sharma, Amit, Messerli, Hannah, and Lin, Michael S. (2023). Land Use Regulations and Small Tourism Enterprises.  Annals of Tourism Research , Vol. 100, 103550.

Media, Hong Kong, SAR

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Amadeus’s Travel4Impact Goes Global as Greenwashing Cases Make Headlines

Jesse Chase-Lubitz , Skift

April 26th, 2024 at 9:56 AM EDT

A program newly open to Americans as well as Europeans promises to educate travel company leaders on sustainable practices.

Jesse Chase-Lubitz

Amadeus , the travel technology giant, is offering a program that provides subsidized sustainability training for small and medium enterprises in the tourism industry to the Americas for the first time. 

The Spanish company has run the program Travel4Impact in Spain for Europeans for the last three years. What’s new is the program will now also accept applications from companies in the Americas. Applications close on April 30.

The program taps into a general trend toward positive-impact travel by offering C-level executives from small and medium companies a fully funded, six-month training and tutoring program taught by professors at IE University, or Universidad Instituto de Empresa, a Spanish business school. The program will offer spots to around 40 companies and start in September 2024.

The program aims to help companies incorporate sustainable practices and digital strategies into their business models and provides a network of professionals and companies making similar efforts.

“People want to travel, but they want to leave a positive impact,” said Poonam Rawat-Hahne, founder and CEO of Fernweh Fair Travel, in a webinar run by Amadeus on Tuesday. Rawat-Hahne added that she saw a niche for travel operators and agents wanting to take social impact into account increase after the pandemic.

“That niche exists,” said Jake Haupert, CEO of the Transformational Travel Council. “It’s at the bedrock of why we travel — those experiences, those opportunities to connect and learn from others are instrumental.” 

Greenwashing Cases

In recent months, greenwashing cases in the travel industry have made headlines. A Dutch court found the airline KLM had put out a misleading advertising campaign that hyped up the company’s environmental image. 

Booking.com ended its “Travel Sustainable” program, highlighting sustainable properties, in March after the Netherlands Authority for Consumers and Markets said the program “was a possibly misleading sustainability claim.”

“This is a really positive sign of our industry,” says Haupert of these cases. “That these things are happening now. People are going to be thinking a little bit differently before they go to market and make certain claims.”

The Amadeus-backed course changes each year based on the needs of the participants. In 2023, the syllabus addressed the implications of emerging technologies for the industry and specific companies and how to apply circular economic principles.

Following the completion of the course, participants can continue attending future sessions on topics like artificial intelligence and net zero policies.

The program doesn’t appear to lead companies to achieving any specific certifications schemes.

“Our objective at Travel4Impact is to amplify the impact of small businesses by promoting a purpose-driven innovation ecosystem,” an Amadeus spokesperson said.

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Tags: amadeus , climate change , sustainability , training

Photo credit: Madrid headquarters of travel tech firm Amadeus. Source: Amadeus.