Sustainability

Common to these is that cooperation between core actors in a sustainable tourist supply chain (STSC) is between mutually dependent partners.

Trust between parties is crucial, and it is important that everyone benefits from cooperation - economically as well as developmentally. This can be achieved by sharing knowledge and information to support planning (see figure 3). In an STSC with uncertain demand, coordination between parties is essential. Smart tourism uses common IT platforms and integration of ERP systems between parties, which have become important tools in these processes.

SECTION 5: Risk factors

Objective: Recognize risk factors

5.1 Risk factors
An analysis of risks must be carried out both at the micro and macro level. Locally at the destination, it is carried out by each company, possibly together with closest partners. A macro analysis looks at trends and tourism volatility, where market conditions and customer needs change frequently. Also, the impact of the world economy, the threat picture, etc., must be included. Here, industry organizations or e.g., Visit companies can provide input.

5.2 Mitigating measures or alternatives
A risk analysis must also include mitigating measures or alternatives. A local tour operator offering hiking in nature, sailing, etc., in an area where weather conditions are unpredictable, has a moderate to high risk that the trip could be cancelled or changed from the originally planned. Depending on the situation, the operator must have alternatives that can replace the tourist's lost experience.

If nature experiences are the attraction offered by the operator, there is a risk of negative impact on biodiversity in the area. Nature experiences are commercial activities that generate revenue for the operator and the rest of the supply chain (STSC). Local knowledge about biodiversity and nature's vulnerability, together with collected data, is crucial to use nature in a sustainable way - commercial goals should give way to preserving nature's balance. The challenge is that supply chains often operate with long time horizons, and destinations must enter into agreements that extend two years or more into the future. This time horizon can be difficult to reconcile with nature's cycle and balance. A possible solution is to offer a range of experiences that are not dependent on the same risk factors.

In a supply chain with physical products, inventory management and placement of warehouses close to the customer are used to meet customer needs, including customized products and timely delivery. In the same way, products and services can be developed at a destination and in an STSC that in different ways meet customer expectations and create personal experiences (see figure 3). In other words, collaborations can be developed at the destination of both alternative experiences and complementary services (cf. inventory management for physical products). This can help mitigate risks, strengthen sustainable tourism development, and improve the local economy of the destination through satisfied tourists and partners in STSC.

The local population requires special attention, as they can both benefit from tourism and suffer from the physical presence of tourists in areas they normally use. Tourism can affect the housing situation with lack of supply and price increases, which has resulted in great dissatisfaction in many places. This dissatisfaction has often resulted in opposition and direct hostility towards tourists. Mitigating measures are very locally conditioned but necessary for long-term sustainable tourism development at a destination.

5.3 The choice of partners
The choice of partners contributing to core activity must be made carefully. This can be done in a supplier assessment process, where supplier capability is assessed based on:

• Past performance

• Reputation

• Third-party certification, e.g., ESG, ISO14001

• Evaluation of the supplier's services

• Visiting the supplier and assessing the supplier's performance in person.

Due to the different institutional logics and the size of companies in an STSM, there are both risks associated with asymmetric power relationships and supplier dependency, which is especially true for small businesses. Opportunistic behaviour in the supply chain is a latent risk that everyone must be aware of and prevent. This applies both to regulating one's behaviour and to ongoing evaluations of customers and suppliers.

SECTION 6: From current state to smart sustainable destination of the future

Objective: Understand the process from the current state to a smart sustainable destination of the future

6.1 The process from the current state to the smart sustainable destination of the future
By conducting a thorough current state analysis and developing a clear vision for the future, destinations can transform into smart, sustainable tourist destinations that offer enriching experiences for visitors while preserving and benefiting the local environment and communities. 

However, this can be a slow and demanding process where all stakeholders must agree on a future vision and their role in achieving this vision. The starting point is an analysis of the current state and identification of all areas that are important for fulfilling the future vision. The purpose of this part of the analysis is to uncover deficiencies that require efforts to achieve the desired development of the industry. The efforts are assessed and prioritized so that effective development can be carried out.

The content of an analysis of the current state, where the attraction is nature experiences, must include mapping of the area's natural resources and biodiversity. Ongoing conservation efforts and areas that are vulnerable and require special efforts must be marked.

In addition, the analysis must examine the current infrastructure, transport options, and accommodation capacity to identify any bottlenecks. The number of tourists and the current growth rate must be analyzed. A profile and needs analysis of current tourists can also be a good starting point for product development and marketing of the destination.

The use of smart technologies in an STSC can play a crucial role in supporting sustainability initiatives. A current state analysis of the technological level can uncover possible weaknesses that need to be addressed to take advantage of and implement new technologies.

Destinations are at different stages of development, from emerging to mature, and this has a significant impact on the starting point for a current state analysis. The analysis can both be the basis for initiating a turnaround process or the start of developing a new business foundation in an area. Regardless of the stage of development, it is important to involve local communities, businesses, and government bodies to ensure cooperation and support for realizing the vision.

Collectively, all these different factors contribute to a highly complex development process. The establishment of regional networks, hubs or clusters has proven successful in several places for the development of STSCM. Recent examples are from Northern Norway and Iceland. 

SECTION 7: Tourism data and sustainable development

Objective: Understand how tourism data can aid sustainable development and innovation

7.1 How can tourism data aid sustainable development
Sharing information and collecting reliable data is crucial for decisions in a sustainable tourism supply chain (STSCM) to be made on a fully informed basis. Availability of real-time data can support resource allocation and management of tourist flows to avoid bottlenecks. In case of changes or disruptions, e.g., in the transport system, information and communication to and between involved parties are easily accessible. Proactive conservation initiatives or crowd management at events can be supported by data collected via IoT (Internet of Things).

On the demand side, technology enables customized and personalized tourist experiences, and it opens immediate feedback from tourists on their service experience (see figure 3).

Analysis of tourist data collected via smart technologies can form the basis for continuous improvements in tourists' experiences and identification of activities that do not create value. This gives companies in STSC the opportunity to streamline their services, reduce costs and resource consumption while ensuring that tourists' service experience meets expectations.

In summary, implementing solutions that use data analysis to improve tourist experiences and resource management can contribute to a more sustainable tourism industry and enhance tourists' experience.

SECTION 8: The significance of supply chain evaluation in continuous improvement

Objective: Understand the significance of supply chain evaluation in continuous improvement

8. The significance of supply chain evaluation in continuous improvement
Effective measurement and coordination across the supply chain are crucial for enhancing performance. It can both help visualize activities in the supply chain but also individual company efforts. Given the complexity of an STSC, it is particularly important to choose appropriate performance measurements with clear objectives.

An important goal for performance is customer satisfaction (tourist satisfaction). Here an overall performance measurement of the supply chain based on a destination can be taken. But also, customer-supplier relationships where focus is between individual links in the supply chain are important. Here it is the individual partners who set goals, evaluate, and follow up on mutual performance.

Important considerations and binding decisions are balancing economic and operational performance goals with sustainability goals. Also, agreements where economic and operational goals must give way to sustainability goals in critical situations are necessary.

Repeated evaluations of performance goals are critical input in continuous improvement processes between individual links in the supply chain and overall performance of the supply chain (see fig. 3).