p. 2Strategies towards smart sustainable society

Tourism as an activity provides individuals with the opportunity to travel, expand horizons, engage with different cultures, religions and traditions, and appreciate humanity and the natural world. To co-create value and tourism experiences, an entire global ecosystem has emerged, offering services and paving the way towards smart sustainable societies. In this service context, national, regional and local authorities, together with residents and tourism service providers and employees open up their destinations to welcome visitors. They engage in the dynamic co-creation of experiences with visitors and the entire tourism business ecosystem. Sharing environmental, socio-cultural and economic resources to co-create experiences for visitors generates value in terms of employment, income, revenue, profit and other benefits. Selling local products and services creates additional multiplier effects in the economy, whilst engaging other sectors such as agriculture, art, culture, heritage and manufacturing. These activities also generate sufficient resources to invest in infrastructure and community services, including health, education, safety and security. When done properly, tourism is a key strategy for smart sustainable societies.

‘Smart’ refers to technology-empowered, business ecosystem optimization, which can bring value to all stakeholders through networking (Buhalis, 2020). This is distinctively different from tourism management and marketing practices of the past that focused exclusively on the competitiveness and profitability of individual entities whether they were destinations, airlines, hotels or attractions. The strategic objective of smartness in tourism is to develop sustainable societies, supporting all stakeholders to co-create value. Smart ecosystems integrate the entire range of value chains, optimizing the benefits for the entire system. To ensure the long-term well-being of both travellers and host populations, tourism managers need to apply smart strategies to ensure the sustainability of all resources for all stakeholders and communities involved. Clearly, this is a major challenge for the tourism industry, which hitherto has often pursued self-centred approaches for short-term gains, but increasingly this will be a prerequisite for a sustainable and balanced future.

From the demand side, travel has become fundamental to life, education, mental health and, ultimately, the well-being of society. Well-being (as a composite construct that includes all the above issues) is a keyword in the World Health Organization (WHO, 1946) definition of health as a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. Well-being institutes a positive state of mental health in which people can fulfil their capabilities to effectively deal with life stressors and productively contribute to their communities. WHO (2004) reaffirms that positive mental health can be conceptualized as a subjective sense of well-being. Travel clearly facilitates personal growth and enhances well-being through physical, psychological, or spiritual activities for the traveller, but tourism can boost well-being for host societies too (Hartwell et al., 2018; Uysal et al., 2016). Making tourism an inclusive activity, by facilitating physical, informational, financial and emotional accessibility towards achieving ‘tourism for all’, can only be rewarding for society, diverse communities, citizenship rights and social justice (Buhalis, Ambrose and Darcy, 2012; Buhalis and Darcy, 2011; Buhalis and Michopoulou, 2011; McCabe, 2020; Michopoulou and Buhalis, 2013).

On the destination/supply side, innovative planning, management and marketing are essential tools for managing sustainable growth (Costa, 2020; Hall, 2008; Jenkins, 2020). Technology and eTourism have been driving innovation since the early 1990s (Buhalis, 1993, 1998, 2000a, 2003; Buhalis and Law, 2008; Egger and Buhalis, 2008), effective information search and providing critical information being at the heart of tourism distribution (Gretzel et al., 2019; O’Connor, 2019; Paraskevas et al., 2011). Smart strategies require leadership and knowledge management to take advantage of interoperable systems towards maximizing the benefits for all stakeholders (Buhalis, 2020; Spencer, Buhalis and Moital, 2012). Smart technologies and methodologies are pivotal for creating sustainable societies (Boes, Buhalis and Inversini, 2016). Digital transformation and smartness therefore improve the efficiency of the entire ecosystem and fundamentally disrupt traditional market structures and practices (Buhalis et al., 2019).

Sustainability has clearly emerged as a lever of fairer growth for societies and a key contributor towards competitiveness (Ruhanen, Moyle and Moyle, 2019; Milano, Novelli and Cheer, 2019; Font et al., 2021). Sustainability not only considers environmental resources, p. 3it also addresses economic and socio-cultural issues in the context of each destination, in order to support sustainable societies (Nunkoo, Seetanah and Agrawal, 2019). Butler (2020, p. 209) suggests that ‘continuing to promote tourism regardless of the capacity of destinations to manage increasing numbers of visitors is inexcusable in the current era of supposed sustainability’. Politicians, development and planning agencies as well as tourism promotion bodies need to devise and implement appropriate actions to balance costs and benefits and ensure that value is being co-created for all (Butler, 2020; Hall, 1994). Smart sustainable strategies should actively contribute to the well-being and prosperity of local communities and support the distribution of value for all involved.

Tourism as a global industry in the post-COVID-19 era

COVID-19, as the biggest global crisis since World War II, has shone a light on the importance of tourism worldwide. During the pandemic, travel and tourism activities came to a standstill as tourism, hospitality, travel and transport companies were forced to suspend or dramatically scale down operations due to the severe restrictions in movement (Gössling, Scott and Hall, 2020). Many countries closed their external borders and could only operate safe ‘bridges’ or ‘bubbles’ between regions with low epidemiological loads (Zhang et al., 2021).

The tourism industry had to respond rapidly to ensure the safety and security of consumers, employees and communities. New health protocols were implemented, and business processes were re-engineered almost overnight to meet new safety and security paradigms. Operational requirements for supporting stranded travellers and organizing repatriations also tested resilience. A rapid response to this unprecedented situation and a constantly moving business environment placed enormous pressure on tourism organizations and governments around the world (Hall, Scott and Gössling, 2020). This created an unprecedented liquidity crisis that not only affected businesses, local, regional and national governments and financial institutions, but also employees, suppliers and everybody in this business ecosystem, including culture and art (Girish, 2020).

COVID-19 also ignited the discussion for the transformation of global tourism (Prideaux, Thompson and Pabel, 2020; Wen et al., 2021).

The entire world realized the significance of tourism beyond the traditional economic benefits. Tourism and travel are directly linked to mental health and to facilitating human connections and interactivity. Governments at all levels also understood the importance of tourism for the sustainability of communities and for supporting the livelihood of societies around the world. Extensive lockdowns and immobility through travel restrictions meant that the international leisure travel market was frozen or ceased altogether, deferring demand to the future (World Travel & Tourism Council [WTTC], 2020).

International tourism suffered dramatically whilst destinations with proximity to substantial markets attracted domestic and regional clientele using primarily private land transportation. Digitization and smart systems, where available, were deployed to facilitate new social distancing protocols, instantly facilitating all processes. Those with a low level of digitization missed an opportunity to test smart technologies at a time of reduced travel and failed to take full advantage. For the first time ever, everybody appreciated the level of globalization of this industry and how interconnected we all are. The urgent need for global leadership became apparent both in governance, industry and academia.

Solidarity became critical for resilience and countless examples emerged globally. Many tourism and hospitality organizations and their employees volunteered to support hospitals and medical structures; to provide hospitality, food and shelter; to transport equipment and people on behalf of the authorities; and to support those in need. As an industry, we have done what we always do: offer service and care from the heart for those who need it most.

Although the global tourism industry suffered dramatically, we also demonstrated how resilient we are as an industry. The tourism, travel, leisure, hospitality industries exhibited humanity by being compassionate, kind, caring, considerate, but also resourceful, improvising solutions and being helpful towards others. After the medical staff, hospitality’s front-line staff demonstrated selflessness and self-sacrifice. They helped restart the hospitality and tourism industry, and engaged with others, exposing themselves to high transmission risks. Many tourism and hospitality academics around the world also rose to the occasion. They volunteered their services by analysing the situation, p. 4collecting and processing data and disseminating protocols, processes and procedures to help authorities and the tourism and hospitality industries to restart safely.

Often, one needs to lose something before fully appreciating its value. Almost overnight, we went from ‘over-tourism’ to no tourism; from people complaining about and suffering the consequences of overcrowding and exceeding carrying capacity in seasonal tourism peaks (Milano, Cheer and Novelli, 2019) to virtually zero travel activity and financial disaster. COVID-19 made people across the globe stop taking travel and tourism for granted and appreciate how critical it is for the industry, consumers and local residents at destinations. It also made politicians begin to understand the complexity and requirements of tourism globally.

During the COVID-19 crisis, society also had the opportunity to reflect. A range of radical changes are expected globally that will transform societies, affecting ways of living, consuming and travelling. One would hope these changes will improve quality of life and well-being, as presented in Table 0.1. The acceleration of digitization and adoption of smart practices challenge work patterns and life norms, propelling flexibility and personalization of services, but also pressure on performance in a completely different context.

A range of new challenges emerge by operating in the new norms – for individuals, organizations and societies. The new norms assume collective behaviour and individual responsibility, not always evident in society. They will also require a widespread infostructure to support mobility and remote teleworking and tele­living. Digital, cultural and organizational divides and silos need to be addressed to reorganize patterns of work, leisure and personal relationships. The new norms transform traditional social interactions, replacing them with hybrid forms of communication, working and living. A paradigm shift in everyday living, altering operational practices, communication protocols and decision making in societies is unfolding. Many of these radical changes will also have dramatic implications for tourism and travel and need to be addressed in future strategies. This will bring unforeseen opportunities, challenges and risks, particularly for business travel and the meetings, incentives, conferencing, exhibitions (MICE) sector. For example, digital nomads are expected to live blended lives, exploring exotic destinations whilst staying connected and functioning remotely. Smart strategies will need to address those issues and ensure sustainable societies.

p. 5Tourism mission possible: strategy, planning, management

Tourism has been growing steadily in the last 50 years, supporting many communities around the world. In 2019, UNWTO reported 1.5 billion international tourist arrivals globally (UNWTO, 2020). Domestic tourism, often not registered, is even more relevant and has a greater impact, especially in larger countries such as China, USA, Canada, Brazil, Indonesia and many others. Figures 0.1 and Figure 0.2 demonstrate that tourism has been extremely resilient, growing at 4 per cent per year on average in the 2000–2020 period. Figures 0.3 and 0.4 demonstrate that international arrivals droppped by 74% in 2020 and the recovery period is estimated to take 4–5 years.

Domestic tourism has been growing dramatically as a result of improvements in standards of living, urbanization and transportation infrastructure. Domestic tourism is critical for the redistribution of wealth from the centre to the periphery and for ensuring that rural and peripheral regions are supported. Tourism growth has continued regardless of a number of crises in the past, including 9/11, SARS, the Global Financial Crisis, Brexit, the collapse of Thomas Cook, geopolitical and social tensions and the global economic slowdown. Almost every region around the world attracts tourists, generating substantial economic benefits and addressing their balance of payments. In particular, insular, coastal, mountainous, polar and peripheral regions are often tourism-focused economies, many of which depend on tourism for more than 50 per cent of their gross domestic product (GDP) and employment on tourism.

International tourism arrivals 2000–2020 (millions)

Note:(e) estimate; (sc) scenario-based data.Source: UNWTO (2020).

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International tourism arrivals 2000–2020 (millions)

Note:(e) estimate; (sc) scenario-based data.Source: UNWTO (2020).

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International tourism arrivals 2000–2020 (millions)

Note:(e) estimate; (sc) scenario-based data.Source: UNWTO (2020).

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p. 6International tourism receipts 2000–2020 (US$ billions)

Note:(e) estimate; (sc) scenario-based data.Source: UNWTO (2020).

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p. 6International tourism receipts 2000–2020 (US$ billions)

Note:(e) estimate; (sc) scenario-based data.Source: UNWTO (2020).

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p. 6International tourism receipts 2000–2020 (US$ billions)

Note:(e) estimate; (sc) scenario-based data.Source: UNWTO (2020).

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International tourist arrivals in 2020: Scenarios and actual results (y on y monthly change, %)

Note:^*–Actual data is preliminary and based on estimates for destinations which have not yet reported full-year results.Source: UNWTO (2021).

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International tourist arrivals in 2020: Scenarios and actual results (y on y monthly change, %)

Note:^*–Actual data is preliminary and based on estimates for destinations which have not yet reported full-year results.Source: UNWTO (2021).

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International tourist arrivals in 2020: Scenarios and actual results (y on y monthly change, %)

Note:^*–Actual data is preliminary and based on estimates for destinations which have not yet reported full-year results.Source: UNWTO (2021).

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p. 7International tourism arrivals 2012–2024 (millions)

Note:^*–Actual data for 2020 is preliminary and based on estimates for countries which have not yet reported results.Source: UNWTO (2021).

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p. 7International tourism arrivals 2012–2024 (millions)

Note:^*–Actual data for 2020 is preliminary and based on estimates for countries which have not yet reported results.Source: UNWTO (2021).

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p. 7International tourism arrivals 2012–2024 (millions)

Note:^*–Actual data for 2020 is preliminary and based on estimates for countries which have not yet reported results.Source: UNWTO (2021).

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Tourism is equally critical for large metro­politan areas. Millions of visitors from around the world experience outstanding history and heritage, arts and culture, food, star attractions and nightlife. In London, for example, tourism and the night-time economy contribute £36 billion a year and employ 700 000 people. In 2019, UK tourism was the fastest-growing industry in employment terms, estimated to be worth over £257 billion by 2025. International tourism experienced a dramatic fall due to COVID in 2020, with a 73 per cent fall in visits from overseas and a 79 per cent fall in spending from overseas tourists (UNWTO, 2020). More than 40 airlines completely ceased or suspended operations due to restrictions and the collapse of demand. Although staycation and domestic tourism increased, domestic spending dropped by about 50 per cent due to lockdown, fear of socializing in hospitality spaces, as well as recession and employment insecurity (Keep and Ward, 2020). The devastating effects were felt immediately everywhere in the world. Tourism not only contributes to the economy, it also keeps critical services for society viable, by supporting art, culture, gastronomy, attractions and transportation, and supports local communities globally (McKercher, 2020; Richards, 2019).

During COVID-19 lockdowns, many of these services were forced to close and became inaccessible to visitors. As we moved from over-tourism to no-tourism, many destinations realized the value of tourism for their communities. It was not only tourism and hospitality employees who suffered, but also artists and performers became instantly unemployed whilst cultural heritage attractions struggled to survive. This threatened the viability of museums, theatres, taxi services and even royal palaces. Many went bankrupt, including the pioneering Tjapukai Aboriginal Cultural Parkin Cairns, Australia, which has educated and entertained more than 3 million people about Australia’s rich indigenous culture since opening in 1987. In Thailand, thousands of elephants, as well as their keepers went hungry; monkeys in Bali, Indonesia became hungry and aggressive; and giraffes were hunted for food in Kenya. Regions need to attract visitors in order to support the sustainability of their societies and to keep these vital economies going, availing communities of essential services and benefits.

The inevitability of tourism growth

Tourism growth has become inevitable, globally. As well as more tourists seeking p. 8more authentic experiences in new destinations, most places around the world also aim to attract tourism demand to increase their income and prosperity. This is the case for most regions of the world, including those not traditionally labelled as destinations, such as urban centres (Bradford, Birmingham, Leeds in the UK); remote regions with hostile climates (e.g., Antarctica, Alaska, Iceland, Greenland); tropical and sub-Saharan regions (e.g., Côte d’Ivoire, Ghana, Kenya and Mozambique); destinations with strict religious or political practices (e.g., Saudi Arabia) as well as industrial sites (e.g., disaster sites, nuclear stations, battlefields, hospitals, minefields, etc.). There is also a proliferation of smaller, purpose-built or converted attractions/leisure facilities, such as theme parks, staged experiences (e.g., Canterbury Tales or London Dungeon in the UK), agriculture farms, wineries, potteries, snake farms, factories, traditional rebuilt villages, and so on, all aiming to attract visitors and income to sustain societies. The more remote and peculiar the resources, the more niche the types of tourism (Novelli, 2018).

This demonstrates the inevitability of tourism as an economic activity, especially for societies that have limited alternative development options. However, to ensure the sustainability of societies and to ensure benefits, appropriate macro-planning and management methods are an absolute prerequisite. It is the role of both policy makers and decision makers to take advantage of knowledge and research and develop suitable offerings and services to serve societies. The focus should be on tourism for communities, rather than communities for tourism.

Increasingly, governments and international organizations (EU, WTO, World Bank etc.) recognize tourism as the driving force of economies and are therefore willing to invest in and to support development (Telfer and Sharpley, 2015). Tourism development and growth must be managed professionally, ethically and responsibly. We need to seize the opportunities and benefits tourism can generate for societies around the world, whilst avoiding the pitfalls and hazards involved. Tourism should be developed and managed against a comprehensive analysis of resources, spatial distribution and geolocation data, vulnerability of ecosystems, customer base, patterns of use and seasonality patterns. Tourism planning, management and marketing strategies should be based on a range of interlinked issues, including a careful investigation of alternative development options; an analysis of complementarity with existing economic activities and also cultural traits; a thorough investigation of resources and their sensitivity; a scenario analysis of positive and negative impacts per destination.

Competition makes success more difficult and destinations and enterprises will find attracting visitors and benefits more complex. Tourism destinations and enterprises need to rationalize their planning and management in order to satisfy their main stakeholders; optimize their tourism impacts and/or profitability; and ensure sustainability (Costa, 2020; Costa, Panyik and Buhalis, 2012, 2013; Fyall and Garrod, 2020; Jenkins, 2020; Novelli, 2016). Tourism research provides a comprehensive range of tools for tourism management and planning. Although growing numbers have been traditionally used to measure tourism success, alternative outcome variables need to be explored to evaluate tourism (Uysal, 2019). Tourism impacts and benefits should be measured in terms of net economic yield; environmental and societal contributions; quality of jobs and stakeholders’ well-being. Ultimately the happiness of local residents at destinations needs to be evaluated based on the contribution of tourism to their quality of life and long-term prosperity.

The need for a better understanding of tourism management and marketing

During the COVID-19 crisis, it became apparent that despite its critical importance and more than 50 years of research in tourism, the tourism industry is still widely misunderstood and underappreciated. Despite many people professing expertise and engaging in both paid and pro bono advice, it is evident that there is a mixed bag of, at times, contradictory positions in the way tourism could or should be managed and marketed, leading to further mis­understandings and inadequate interventions (Novelli, 2016). Despite the numerous attempts to address the challenges of the industry by researchers around the world, there is sparse application of innovative mechanisms to address these challenges. Often it is still unclear to policy decision makers what needs to be achieved in tourism management and marketing, planning and sustainability. There is also p. 9insufficient knowledge of best practice from around the world and innovative mechanisms with which to address these challenges. The gap between academic knowledge and industry applications seems to have become wider, with the vast majority of decision makers appearing to be unaware of the knowledge created in tourism through academic research. Compared with other areas of business or science, tourism has been broadly undervalued as a scientific area of study. This has been partly attributed to the youth of tourism as an area of study, as well as the multidisciplinary nature of this activity. As many people have experienced the industry as consumers, they often mistakenly believe they have sufficient expertise to appreciate its complexity.

As a global society, despite extensive academic research on the subject, very limited appreciation and application of the needs and requirements of both travellers and destination communities exist. Although many rushed to describe the new realities in the meta-COVID era, it was apparent that they projected their inner thoughts and wishes, rather than realistic and implementable solutions. More empirical and evidence-based knowledge in tourism is necessary to encourage planners, decision makers, politicians and marketers to appreciate the complexity of this industry (Baggio, 2020). To ensure that we co-create value for all stakeholders on a global basis, we require a better understanding of key concepts.

The globalization of societal and economic impacts of tourism clearly demonstrated that unless we employ evidence-based professional tourism methods, we will be unable to manage this global industry and achieve its potential contribution to sustainable societies.

The recent cries of sustainability and over-tourism are perhaps new wine in old bottles. As early as 1973, Sir George Young warned that tourism cannot be planned separately from other aspects of economic and social life. This planning must take account of national, regional and local dimensions. Benefits of tourism are more apparent at the national level, whilst the costs are often faced at the regional and local levels. Sir Young predicted that the demand for travel will continue to grow and thus the problem that tourism is facing is how to accommodate that increasing demand without creating severe social, economic and environmental consequences for the destination. A range of management indicators were offered together with some possible directions. He noted the need for balanced development and called for tourist authorities to act within the context of a national plan that identifies the role of tourism and that blends the requirements. Limits on tourism development may need to be adopted too, to ensure longer-term prosperity (Buhalis, 1999). Unmanaged tourism growth in many destinations has inevitably resulted in conflicts and damaged its competitiveness (Milano, Novelli and Cheer, 2019).

Need for tourism planning, management and marketing

Tourism planning and management should therefore provide a strategy for smart sustainable societies (Boes et al., 2016). It is critical that conflicting interests are examined and resolved with mutually acceptable solutions ensuring the compatibility of different strategies and the long-term satisfaction of all stakeholders. Indigenous peoples at destinations are the most important stakeholders, as they provide local resources to visitors in exchange for economic benefits and an improved quality of life. Adequate returns on the resources utilized by tourists must be achieved. Measures should be taken to rationalize, regulate and legislate on the use of economic, socio-cultural and environmental impacts (Buhalis, 2000a).

Tourists are looking for total satisfaction through properly segmented products that address their specialized interests and their increasing sophistication (Dolnicar, 2019). Sophisticated tourists seek more authentic and themed experiences, which enable them to pursue their specific interests within the context of the travel environment. Smart solutions should support personalization and contextualization in real time. They should provide value for money but also most importantly value for time, co-creating nowness services and memorable experiences (Buhalis and Sinarta, 2019).

The tourism industry drives the development of tourism globally. The drive for profitability encourages the development of amenities and mechanisms, facilitating the tourism activity. The industry can be divided into two parts: destination-based/incoming and generating-region/outgoing. The incoming industry is traditionally based around small and family-based enterprises that are rooted in local communities, p. 10which are themselves destinations. It often lacks expertise, capital, global perspective, digital adoption, qualified human resources and power. Outgoing industry tends to be multinational, vertically integrated and well resourced with capital, expertise and power. It tends to have limited interest in and commitment to its chosen destinations, as it has endless choice and is driven purely by commercial considerations. Its short-term profitability drive, in combination with its power over governments and enterprises at destinations, enables it to force its will, often against the long-term interests of local stakeholders. The tourism industry at destinations depends heavily on multinational metropolitan corporations for tourist arrivals. Thus, it often has no option but to follow neo-colonial types of authority. Addressing power struggles is critical, especially in distribution channel relationships, to minimize conflicts (Buhalis, 2000b). Increasingly, however, it is being realized that negotiated, mutually beneficial partnerships between all members of the industry are essential to providing seamless and specialized tourism products and increasing competitiveness in the long term, without draining local resources. This is a prerequisite for harmony, ensuring residents’ quality of life and avoiding irritation (Mihalic, 2021).

Governments need to play a critical role in rationalizing tourism development and propelling smart sustainable societies (Jenkins, 2020). They use tourism as a tool to increase their GDP, stimulate regional development, generate employment and improve the balance of payments. However, it is often observed that governments lack the expertise and resources needed to develop tourism properly. They often leave market forces enough freedom to determine the pace and direction of development and employ irrational political management, driven by personal agendas and sometimes by corruption (Papathanassis, Katsios and Dinu, 2018). In many destinations, this leads to dependency on multinational corporations for investment, management and distribution of tourism, frequently generating neo-colonial conditions. It also leads to unsustainable practices that damage the future of societies, create tensions and jeopardize the interests of weaker market players (Buhalis, 2000b). To ensure that tourism is practised sustainably, appropriate planning and development principles need to be applied by governments to regulate industry and ensure sustainability (Jenkins, 2020). Traditionally, marketing concentrates on increasing visitation and treats tourism like any other commodity. This approach fails to recognize the unique needs and limitations of each destination as well as their particular geographical, environmental and socio-cultural characteristics. In contrast, the planning literature concentrates more on the impacts of tourism and on limiting tourism development, often ignoring the market dynamics and the requirements of entrepreneurs at the destination and the place of origin (Buhalis, 1999). A balanced approach that facilitates co-creation of value for all stakeholders is critical.

Despite many examples of inappropriate tourism development around the world, several destinations are still trapped by chasing success through maximizing the number of arrivals. This is an inevitably vicious cycle that destroys the very essence of tourism, leading to value destruction and conflicts. Tourism should help to improve the prosperity of local people at destinations by stimulating local economies, developing infrastructures, encouraging the revitalization of cultures and traditions. Badly planned and inappropriate development, often driven by political interests, human greed and short-term gains, generates an oversupply of tourism facilities. As tourism grows uncontrollably, several physical, aesthetic and atmospheric elements of the destination disappear, damaging its attractiveness and the competitiveness (Buhalis, 1999, 2000a).

The carrying capacity concept encouraged the search for a magic number of visitors that might be approached with impunity and exceeded at peril (Coccossis and Mexa, 2004). Wall (2020, p. 213) explains that ‘as experience accumulated, it was recognized that it is simplistic to focus solely on numbers to the exclusion of other variables, such as type of visitor, length of stay, activities undertaken and group composition’. Appropriate types and levels of tourism activity should therefore be determined according to the goals and objectives established through a coherent and well-orchestrated planning process that examines all vulnerabilities and involves all stakeholders.

Optimizing the tourism ecosystem based on the tourism pyramid

Back in the early 1990s, my doctorate super­visor at the time, Professor Chris Cooper, challenged me to help with the development p. 11of the ‘Future of Tourism’ chapter, which later appeared in the early editions of the Cooper et al. Tourism: Principles and Practice book (see, for example, Cooper et al., 2005). To analyse trends and predict the future, we followed Neil Leiper’s (1979) tourism system and explored a comprehensive range of exogenous variables that drive market forces and determine the tourism system. This is still critically relevant, and it is still being used to conclude the Cooper (2021) Essentials of Tourism textbook. This conceptual development, illustrated in the tourism pyramid, determines the tourism ecosystem as analysed and articulated in the Encyclopedia of Tourism Management and Marketing ontology.

The tourism pyramid (Figure 0.5) provides a comprehensive illustration of the foundation required for the tourism system to operate successfully. It determines the essential layers that transform tourism management and marketing. The tourism system sits on the top of the pyramid. Its success depends on the robustness of the response to the challenges experienced at each layer of the pyramid. The global tourism industry has emerged as an ecosystem that brings together a range of actors to co-create value for all stakeholders, and smart sustainable society strategies are required to ensure that equitable returns for the resources utilized are achieved for all.

Destinations have emerged as stages that facilitate the co-creation of memorable experiences. By amalgamating cultures, nature, traditions and humanity with private and public organizations they offer transformative tourism experiences. Destinations are increasingly recognized by consumers as flexibly defined place brands, rather than defined regions (Buhalis and Park, 2021). They are interpreted subjectively by consumers, depending on their travel itinerary, cultural background, purpose of visit, educational level and past experience. This is often challenging, as from an administration perspective, destinations are well defined geographical areas, with formal borders and management responsibilities. The coordination of the six As (attractions, activities, accessibility, amenities, available packages, and ancillary services) is critical for co-creating value and maximizing benefits for all stakeholders (Buhalis, 2000a).

Intermediation and the distribution of tourism becomes one of the most imperative functions of tourism marketing (Buhalis and Laws, 2001). Using technology to communicate efficiently with target markets and engaging in dialogue across multiple online platforms are increasingly pivotal for attracting consumers. Developing an omni-channel strategy with a range of online and offline distributors is of paramount importance as it determines access to markets, profit margins, profitability and competitiveness (Buhalis and Licata, 2002). Comprehensive transportation systems taking advantage of multimodality and autonomous vehicles should make physical connectivity and accessibility as easy and inclusive as possible.

Resources include environmental, natural, socio-cultural and economic resources as well as capital, knowledge, expertise, education, training and technology. The tourism system uses these resources to address the needs of all stakeholders, including indigenous people and local residents, tourists, tourism industry and tourism organizations. Understanding resources and travel patterns is critical to appreciating conflicts and pressure points, towards creating an appropriate legislation and regulation framework (Buhalis and Sinarta, 2019). Context and real-time Big Data sets, at a granular level, determine the success of the system (Buhalis and Foerste, 2015).

Elaborate, evidence-based, multidisciplinary research is crucial to assessing the real impacts of tourism dynamically. Planners and decision makers should develop policies to achieve four major strategic directions: maximizing co-created value for locals and tourists; sustaining resources and making human settlements inclusive, safe, resilient and sustainable; promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all; and maximizing the profitability of tourism enterprises in the long term (Buhalis, 1999). Ultimately, we should help societies achieve equitable returns on resources utilized for tourism and ensure that value is co-created and distributed fairly and sustainably for all stakeholders.

Drive for sustainability and equitable returns for resources utilized

The tourism system is operating at the top of the tourism pyramid. It needs to fully address the challenges and opportunities of market forces and exogenous variables. The system includes the needs, wants, interests, abilities and disabilities of various market segments and attract those it can satisfy best. Consumers increase demand for leisure, business, health, education and culture-related trips and travel experiences. They rely on transportation and intermediation entities in the transit region to connect them with the destination. Technology is critical to bridging the information and also providing the infostructure for connecting demand and supply. In the destination region, a range of tourism organizations, typically small and medium enterprises (SMEs) work with local, regional and national tourism boards and governments to coordinate their offering and generate an inviting and well-coordinated environment. Comprehensive planning and management strategies need to facilitate and regulate both outbound and inbound tourism, empowering travellers to co-create value sustainably. Inbound tourism involves developing a comprehensive offering of suitable product and services, based on destination resources and infrastructure. Extensive distribution channels should be supported by communication and promotion strategies. The industry should be legislated and regulated based on carrying capacity measurements and vulnerabilities.

p. 12The tourism pyramid

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p. 12The tourism pyramid

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p. 12The tourism pyramid

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p. 13A number of dynamic market forces determine the business environment where tourism operates. Market forces are fundamental for the success of tourism, given the international nature of this activity and the need to address multiple legal systems, cultural and religious contexts and business practices. Globalization and concentration of the industry determine international regulations, border controls and facilitation. To co-create value, strategic alliances and value chains need to be formulated, often through vertical, horizontal and diagonal integration. Perhaps most importantly, the heart of tourism is its people. Creating decent work and talent management through education and training is essential in order to develop experiences as well as create the leadership of the industry. Developing decent and fair work, compensated at the right level, is paramount for sustainable societies. Resilience signifies the capacity to recover quickly from difficulties and unpredicted situations through business continuity measures and processes. The sector has had to further develop its resilience, to confront a range of crises affecting its performance whilst protecting people, assets and livelihoods.

A range of exogenous variables and global trends also determines how tourism is conducted and the needs and requirements of the various stakeholders. Consumer, social and cultural developments determine the tourism demand. Demographic trends also address age groups and in particular the needs of the emerging ageing market. Segmenting the market and providing the required services by blending appropriate market groups according to market contexts is critical. Politics and international relationships determine a range of issues, including facilitation of travel and border controls. International law and trade agreements regulate the movement of people and material that are part of the tourism system. A range of policies are determined through legislation and regulations that drive all market interactions. Safety and security have always been high on the agenda, with accidents, natural disasters and terrorism affecting tourism. The COVID-19 pandemic highlighted the importance of health protocols across the entire tourism system and the need for international collaboration. Environmental concerns surrounding climate change and global warming are also critical, as tourism needs to address these issues through eliminating waste and carbon neutrality.

There are several ethical and moral issues related to tourism and these are rooted in the ideals and principles of society. Social responsibility also needs to be addressed with regard to quality of work as well as inclusion and diversity. Addressing gender equality, women at work, inclusion and diversity is crucial for increasing productivity and creativity, leading to employee engagement, reduction of employee turnover and organizational competitiveness. Globalization and access to financial markets also influence investment opportunities, availability of capital and developments of facilities and infrastructure.

Technological innovations provide an ever-evolving layer of infostructure. Creating a comprehensive platform, where all stakeholders can ‘plug and play’, will ensure the inclusion of all to the smart ecosystem, empowering smart interactions through interoperability and interconnectivity of networks, and so facilitating the tourism ecosystem. Technology and digital marketing are increasingly critical for engaging all intermediaries and consumers online, co-creating value and developing online word-of-mouth through advocates (p. 14Buhalis, 2020). Wireless networks, 5G and satellite communications empower networking and support Big Data collection. Artificial intelligence and machine learning applications lead to real-time, context-based, value co-creation and nowness services (Buhalis and Sinarta, 2019). The Internet of Things and the Internet of Everything increasingly support interoperability between all devices. Digital implants and wearable technologies are gradually introducing the Internet of Bodies and the Internet of Senses that will be available with 6G (Ericsson.com, 2020).

These developments lead to personalized, individualized and contextualized experiences supported by recommended systems and digital assistants. In addition, virtual, augmented and mixed reality are increasingly shaping the innovation of customer hybrid experience, by integrating reality, information and constructed worlds. Robots and robotics, as well as autonomous vehicles and drones, will bring a paradigm shift in tourism, as their application will be disruptive to so many functions, processes and roles. Technology and smart methods, therefore, will increasingly determine the competitiveness of each entity in the ecosystem.

The rapid growth of the global tourism industry demonstrates the need for rationalization. A partnership between the private and public sectors will enable the satisfaction of the main stakeholders. Tourism organizations and destinations need to engage only with those markets that are supporting their long-term societal objectives. A thorough impact analysis should be developed for each target market and marketing should aim to attract only those markets that optimize tourism impacts. Tourism should primarily serve indigenous people and their needs. The focus should be on tourism for society, rather than society for tourism. By adopting strategies to ensure smart sustainable societies, tourism can fulfil its mission and ambition. By navigating through the entire range of tools and methodologies, using smart and sustainable practices, one can manage the entire system successfully. The sustainability and success of tourism is based on the equitable returns for the resources used and the ability of all actors to gain sufficient value in the long term. The utilization of local resources for tourism consumption should be reflected in sustainable economic and socio-cultural returns for local societies. The only constant in tourism is change. Intellect and constant innovation become the most important assets in enterprises. Qualified people through education and training should be capable to navigate through this complexity, empowering all stakeholders to co-create value.

The Encyclopedia of Tourism Management and Marketing

The Encyclopedia of Tourism Management and Marketing therefore harnesses cutting-edge knowledge to support students, researchers and decision makers. The Encyclopedia provides broad coverage as well as sufficient depth in these areas. It is positioned as a sibling, complementing Jafari and Xiao’s (2022) Encyclopedia of Tourism.

The Encyclopedia is based on a comprehensive ontology of more than 3000 terms. When completed, it will consist of about 1000 alphabetically ordered entries, covering a far-reaching range of cutting-edge topics. The entries were completed between 2020 and 2021 and analyse a wide range of topics from a global perspective, considering recent developments at the international level.

Innovative methods were used in developing the Encyclopedia. It was designed to be utterly inclusive in terms of entries and authors.A wide range of channels was used to recruit diverse authors and creatives to co-create the content and design. Crowdsourcing was used to develop the ontology, identify expert contributors and select the cover design. Social media was extensively used to engage with as many stakeholders as possible. The editor was particularly mindful of encouraging young academics, at the beginning of their academic career, to contribute with innovative and contemporary terms. A diversity drive ensured that all parts of the global scientific society had the opportunity to contribute to this knowledge collection.

The cover of the Encyclopedia articulates many of the messages discussed. The picture shows people visiting the Temple of Apollo and enjoying a memorable sunset experience in a wonderful cultural site. After all, people are the reason for doing tourism, and protecting treasures and bringing value to all is what tourism management and marketing is about. The Temple of Apollo – Portara is an archaeological site on Naxos Island, the Cyclades in Greece. Portara is a huge marble gate and the p. 15single remaining part of an unfinished Temple of Apollo from 530 BC, the island’s emblem and main landmark. God Apollo (ancient Greek: Ἀπόλλων) is the Olympian god of the sun and light, arts, music and poetry, healing and plagues, oracles, prophecy and knowledge, intelligence, logic, reason, civilization, order and beauty, and truth. He is harmony, reason and moderation personified, a perfect blend of physical superiority and moral virtue.

The selection of topics was based on their importance and frequency in tourism research outputs. The crowdsourcing approach meant that authors were invited to propose terms for inclusion to ensure diversity and inclusiveness (Khoo-Lattimore, 2019). To ensure the immediacy of the project, terms were released in batches. Once they were copy-edited, they were released online, creating engagement with readers instantly. The Encyclopedia will be finalized and go to print when we have exhausted the opportunities to include as many terms and contributors as possible. As well as the print version, the Encyclopedia will also be made available on Elgaronline, the publisher’s content management platform. The Encyclopedia is naturally at home in such an online setting, which allows for a sophisticated search functionality as well as direct linking to references and sources through XML coding.

I very much hope that the Encyclopedia will act as the starting point for innovative research and best-practice journeys to support the global tourism industry on its path to recovery, and that the Encyclopedia will empower smart sustainable societies to prosper in the future.

Acknowledgements

The publication of this Encyclopedia would not have been possible without the support of many key people and institutions. My deepest gratitude goes to the authors of the entries and all contributors for their commitment and willingness to share their knowledge. I am very appreciative for constructive feedback to this introduction from colleagues Professor Marina Novelli and Dr Elina Michopoulou. Finally, I would like to thank Edward Elgar Publishing, and particularly our publisher Daniel Mather and Karen Jones, Managing Editor, who have provided immense support and encouragement throughout the publication process.