Annual Report 2014/15 Annual Report 2014/15
Menu

lead the way

Society

Operating with social responsibility is a hallmark of our corporate culture. This commitment is reflected in our support for a diversity of ground-breaking projects. The TUI Care Foundation is embedded within our sustainability strategy. In future, all Group activities driven by our social commitment will be clustered under this umbrella, as we believe that major challenges are best met by combined forces.

By innovating and collaborating to tackle the industry’s biggest challenges, we believe we will help to future proof our own business and tourism across the world.

Measuring Tourism’s Impact: The TIMM project

In 2014 the TUI Group partnered with Travel Foundation in the UK and PricewaterhouseCoopers to pilot a new, holistic method for measuring the environmental impact of tourists. The economic, tax, environmental and social impacts of tourism were quantified and valued.

Known as the TIMM Study, the research focused on 60,000 TUI customers who spent their holidays in eight hotels on Cyprus. The TUI Group assisted this project by providing access to hotels and suppliers, data for the analysis and a technical review of the report, and by playing a role on the Advisory Panel. One of the project goals was to detect and monitise the impacts of tourism, both negative and positive, so as to optimise the effects of tourism. At the same time, it set out to identify the positive effects of tourism so as to build on them.

The ground-breaking pilot study demonstrates that it is not enough to measure success by using proxy indicators such as increasing visitor numbers. Instead, it provides clear insights into the impact those visitors have on the local economy. The research also shows the importance of going beyond basic economic measures to consider the big picture. For instance, tourism tax receipts are not often discussed as a benefit for destinations, but were found to be a very significant benefit for Cyprus, equivalent to €25 per customer per night. Airport departure tax accounted for just ten per cent of this total, which includes other taxes such as corporation tax, VAT and income tax.

Furthermore the study shows that a significant amount of the total impact of tourism comes indirectly from supply chain activities and tourism spend. For example, supply chains and other services used by customers were found to generate almost 14 times as much waste as the hotels themselves (1.8 kg of rubbish per customer per night from hotels compared with 25 kg from the supply chain).

The results clearly reveal that tourism operations generate overwhelmingly positive benefits. The economic and social effects worth more than €84 per customer per night substantially outweigh the environmental costs of about €4. But while the environmental damage caused by one tourist may be small, this is mul­tiplied by millions of tourists over the years, and so it needs to be carefully managed if a destination is to stay attractive for years to come.

MEASURING TOURISM'S IMPACT: A PILOT STUDY IN CYPRUS 2013

32,3 m

Economic dimension: Payroll, profits, intangibles and investments

13,3 m

Tax revenues: Profit taxes, production taxes, people taxes

84

positive economic and tax benefits per guest per night

€ 16,8 M.

Payroll

€ 696 K – € 3,6 M

Human Capital

€ 6,6 M

Production Tax
(mainly VAT)

€ 608 K

Waste

€ 1,4 M

GHGs

€ 171 K

Land use

Positive impact
Negative impact

Tunisia: Opening doors to tourism

Following the fatal attack on holidaymakers in summer 2015, Tunisia is facing a difficult period, and concerted action is required to build social and economic prosperity.

Tourism is one of the key sectors in the country and it is confronting particular challenges. Surveys show that tourists expect better service and more customer focus in Tunisia. There are many opportunities for women to work in this sector, but widespread attitudes to traditional female roles pose a difficult hurdle to many women when they seek to enter the employment market. In Tunisian hotels, women often still make up less than 20 % of the workforce.

Since 2012, TUI has therefore been supporting a project implemented by the German agency GIZ (Gesellschaft für Internationale Zusammenarbeit). The purpose of this joint initiative is to encourage the development of Tunisian tourism by integrating women more effectively into the economy. The idea is also to create more favourable employment opportunities and working conditions for women, along with new, culturally oriented prospects for women in the tourism sector. The project was funded equally until 2014 by the German Ministry for Economic Cooperation and Development (BMZ) and TUI. Since 2015 TUI has been providing non-financial support.

The project is designed to improve the quality of training and to facilitate young womens’ access to the employment market in tourism in collaboration with the Institut Maghrébin de Management et de Tourisme (IMMT), which provides training for the hotel sector.

44 bursary-holders have been selected for the two-year course since it began in 2014. They have all received additional support in the form of language courses and professional hospitality conduct. Moreover, a cooperation agreement has been signed with ten hotels and supervised on-the-job placements have been found for the trainees. 10 young women have so far been offered permanent jobs on completing the course.

Dominican Republic: CHANCE

Riu Hotels & Resorts got together with four other hotel chains in 2015 to launch an educational opportunity initiative. In the summer of 2015, 66 school students in the Dominican Republic who would normally have little access to vocational qualifications were able to take part in a two-month training course. During this peri­od they attended practical modules devoted to restaurant, bar service and kitchen skills, and theoretical teaching that included mathematics, English and Spanish, and the fundamentals of tourism. The project was implemented jointly with the National Technical Vocational Training Institute (INFOTEP).

All the participants rated this first project as a great success. The young people from Bavaro and Verón were able to explore their personal preferences and aptitudes in the tourism business, and for the hotel companies this was a chance to assess potential new recruits. For the participating hotels, the project also contributes effectively to creating jobs and assuming social responsibility in a core destination. A second project is already in the pipeline.

Curaçao: Kids Council

TUI Benelux has set up a Kids Council on Curaçao. It enables children between the ages of ten and twelve to play their part in the future development of the local economy and tourism in their destination.

The first phase of the project has already attracted 50 children. The Council’s activities centre on the question: “How can tourism help to make Curaçao an even better island to live on?” The creative ideas and strategies the children come up with are passed on not only to TUI, but also to other bodies involved in the sector, such as the Curaçao Tourism Board, the airport, ministries and hotels.

The Kids Council has been implemented in partnership with the Missing Chapter Foundation and UNICEF. The initiative is based on the Children’s Rights and Business Principles, and is an example of best practice in the field of cooperation with destinations.

Protecting children

Many companies in the Group support the Child Protection Code for the tourist industry, which is founded on the UN Declaration of Human Rights and the UN Convention on the Rights of Children. The Code was drawn up together with ECPAT International.

ECPAT stands for End Child Prostitution, Pornography and Trafficking of Children for Sexual Purposes. The or­­ganisation was set up in 1990, at the time with an Asian focus. Now ECPAT campaigns against the prostitution, pornography and trafficking that blights the lives of children all over the globe, and it now has sections in 74 different countries. Its purpose is to assert children’s rights everywhere, to draw attention to the sexual exploitation of children, and to break down the international taboo which maintains a cloak of silence over the problem.

TUI informs customers about this commitment in catalogues, customer hand-outs, websites, in-flight magazines, brochures, leaflets and sometimes in-flight videos. Training sessions for employees at company sites and in the destinations help to counter the taboo and to raise awareness.

Core themes
in the Code
of Conduct for
Suppliers
Environment and
the Community
Working
conditions
Anti-
Corruption
Information
Security
Health
and Safety

Destination projects with the Travel Foundation

TUI has a longstanding partnership with the Travel Foundation, a sustainable tourism charity. We colla­borate on strategic projects that address the sustainability issues facing our industry.

For example:

In Cape Verde, we helped to set up a destination council to tackle sustainability issues, leading to the development of programmes on crafts, excursions and better beaches.

We have been working with the Travel Foundation in Cyprus on projects including the integration of minimum sustainability standards into the island’s national hotel quality rating system.

In Jamaica, we are supporting projects to develop cultural excursions and boost tourist expenditure in Montego Bay.

We supported the development of an online best practice tool for whale shark guides, which is now a mandatory requirement for all whale shark guides in the Quintana Roo region of Mexico.

Human Rights

Tourism connects people and markets and is one of the fastest growing industries worldwide. As a global player, we operate in many countries in the world and embrace our responsibility for society.

The TUI Group acknowledges the UN Guiding Principles on Business and Human Rights. Our commitment is expressly reflected in our Group employee Code of Conduct. We respect the personal dignity, privacy and rights of each individual. We do not tolerate discrimination, child labour or degrading working conditions. Our internal whistleblowing policy offers a worldwide system for the confidential and anonymous reporting of serious infringements of our Code of Conduct.

In addition, the TUI Code of Conduct for Suppliers serves as a guideline in the form of a summary of the ethical standards we expect of our business partners. The Code echoes our internal Code of Conduct and clarifies what we mean when we speak about “ethical business practices”. Sustainability in the supply chain is therefore an important part of our corporate responsibility.

The TUI Group has signed the Global Code of Ethics for Tourism of the World Tourism Organization UNWTO as a further expression of our commitment to observing the human rights and fundamental freedoms of all people.

Building civil society with the TUI Stiftung

Understanding Europe – a youth project addressing Euro-fatigue

Current challenges like financial crises and growing numbers of refugees call for a common European response. But so many young people and first-time voters simply shrug their shoulders when anyone mentions Europe. Not even half of them voted in the European elections in 2014.

In late August the TUI Stiftung, TUI’s German foundation, teamed up with the Schwarzkopf Foundation in Hamburg to launch the project Understanding Europe. The half-day courses bring students from secondary schools and vocational colleges together to discuss the EU. The aim is to impart fundamental knowledge about European politics and to point out ways people can participate. The trainers who lead the courses are young adults and students whose principal motivation is a desire to pass on their enthusiasm about Europe.

»The future of Europe lies in the hands of the younger generation. The project Understanding Europe is an opportunity to strengthen young people’s enthusiasm for a shared Europe.«

THOMAS ELLERBECK, Chairman of the TUI Stiftung’s Board of Trustees

3 questions for:

Name
Chris Drews
Position
Articled clerk and trainer with “Understanding Europe”
Responsible for
Sessions with school students for the project in Hamburg

What are the most common prejudices young people bring with them to the compact course?

DREWS: It isn’t so much that the students have pre­judices about the EU. The problem is more that the students simply aren’t interested in the EU and that they are confused by the complexity of the issue.

So how can you arouse their interest?

DREWS: We trainers show the students what the EU has to do with them. In concrete ways. First of all there are opportunities like Erasmus+. Very few of them realise that the programme doesn’t only offer co-funding for university students to spend time abroad, but that school students and apprentices are also eligible. And secondly we make it clear how political decisions exert a big influence on their everyday lives. And then it’s fun to watch how the penny drops. Suddenly they want to tackle even the difficult questions, like how laws are made.

If you could have a wish to make young people more interested in the EU, what would it be?

DREWS: A single wish ... It isn’t as easy as that. Politics are complicated. And it’s up to civil society to come to terms with it. The fact that foundations like this play a role is doubtless very important. It would be good to have more of that. And then the media have a duty to be more comprehensible and less partisan when reporting. But that is easier said than done.