TRYING TO END POVERTY THROUGH TOURISM
G Adventures’ expansion will directly benefit the world’s poorest nations
It’s a defining moment for the US$ 7.6- trillion global travel and tourism industry. With one billion people travelling worldwide and five- per- cent annual growth, times are good for tour companies.
But for Bruce Poon Tip, CEO of travel operator G Adventures, that presents an opportunity for his company to up its game. With the price of oil dropping, travel has surpassed it as the largest revenue generator for the 40 poorest countries in the word.
Meanwhile, poverty rates have been on the decline: 25 years ago when the world population was 5.2 billion, 36 per cent were living in extreme poverty; today the poverty rate is 12 per cent for a population of 7.3 billion, a statistic World Bank group president Jim Yong Kim said recently is a sign of substantial progress. He predicted extreme poverty can be eliminated by 2030.
Poon Tip contends the travel industry has a key role to play in reaching that goal, and as he reiterated at his company’s 25th- anniversary celebration last month, he plans to ensure G Adventures remains at the forefront of this effort.
The largest small- group adventure company in the world, G Adventures has carved its award- winning global reputation on sustainable travel — intimate, authentic experiences that fully immerse travellers in local culture and experience.
Many of its trips offer a unique opportunity to help the underserved communities travellers visit, often through its Planeterra Foundation, an organization founded in 2003 with a focus on social- enterprise support and development.
Today, 25 social- enterprise projects are incorporated in the supply chain of G Adventure itineraries with the goal of helping communities become more sustainable, and Poon Tip plans to increase that number.
“We’re going all in with our social- enterprise business model,” Poon Tip said of G Adventure’s “50 in 5” campaign, under which it will introduce 50 social enterprises in the next five years, ensuring that more than 90 per cent of travellers will visit at least one. “We’re celebrating what we’ve done but also doubling down on our original mission, which is to have positive impact in the places we travel,” he said.
The first five projects are already operating, including a successful pilot in India, which is now being rolled out in Nairobi, Cape Town and other cities. Women on Wheels trains women from slum regions in India to become certified commercial chauffeurs for women or couples, ensuring a safer transportation option for women travelling alone, while providing the drivers with financial stability and empowerment.
Poon Tip’s ambitious goal of reaching 75 total projects by 2020 will involve more staff, resources and more than $ 5 million.
He contends the $ 600,000 raised at the anniversary celebration is a great starting point. Having recently raised $ 217,000 in a recent appeal for Nepal, G Adventures is proving a powerful player.
Raising $ 800,000 in one month “is a great example of what our brand can do, in terms of raising awareness and money,” Poon Tip said.
The goal to end poverty through tourism is also being helped by the increasing number of travellers who are searching for tour operators that espouse social and environmental priorities and are putting less- developed countries on their must- see lists.
Money spent in foreign countries doesn’t always remain in the local economy, though, said Louise Twining- Ward, CEO of Sustainable Travel International.
Programs supported by companies such as G Adventures help build the capacity of local people to earn income, a capacity that is sustainable beyond tourist season.
“They create a virtuous cycle,” she added.
They can also bring the market to the supplier, an important contribution considering the preponderance of rural to urban migration in many developing countries.
“It targets income where it’s needed most,” said Twining-Ward, whose organization recently launched an industrywide 10 Million Better campaign to monitor and scale up social and environmental benefits from travel and tourism.
The pursuit of sustainable travel, however, isn’t simply a matter of social consciousness. It’s backed by a growing business case, starting with simple operational cost- cutting. Reductions in water, energy and waste can save money and enhance loyalty, increasing customer retention rate, something Twining- Ward said Poon Tip is on the leading edge of.
“We’ve had double- digit growth for the past 25 years, every single year,” Poon Tip said, noting that the company surpassed 25- percent growth in the past few months and grew 32 per cent last year, bringing annual revenue to more than $ 300 million.
A recent partnership with one of the world’s most recognized brands, National Geographic, should reinforce that business case. National Geographic Journeys with G Adventures is launching a new line of existential trips — 70 as early as January 2016.
Each will be led by a local guide and will connect travellers with locals to gain insight they may not have otherwise have.
“Obviously National Geographic gives us a bigger voice and platform to work with,” Poon Tip said of the 700 million people they now have access to through media channels every month.
Lynn Cutter, executive vicepresident of travel and licensing at National Geographic, said the media company will be able to offer more accessibly priced trips while reaching a younger audience and expanding globally. But it wouldn’t have pursued the collaboration without mission alignment.
“We are very like- minded, believing that travel is one of the most important ways to create change, educating people about places, immersing them in places and actually making a positive impact by supporting local projects,” Cutter said.
We’re doubling down on our original mission, which is to have positive impact in the places we travel.