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(2017),"Examine destination loyalty of first-time and repeat visitors at all-inclusive resorts", International Journal of
Contemporary Hospitality Management, Vol. 29 Iss 7 pp. - http://dx.doi.org/10.1108/IJCHM-06-2015-0293
(2017),"Chinese travelers preferences for hotel amenities", International Journal of Contemporary Hospitality Management,
Vol. 29 Iss 7 pp. - http://dx.doi.org/10.1108/IJCHM-09-2016-0511
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Abstract
Purpose: The purpose of this research is to explore the link between social entrepreneurship and
thorough review of the related literature and of any existing Canadian sources of hospitality and
Findings: Findings show that there are limited showcased hospitality and tourism social
entrepreneurship projects in Canada. Two main assumptions related to the Canadian context can
Research limitations: This study assessed the situation in Canada and although it was
opportunity.
Theoretical implications: This research makes three key contributions to the literature on
sustainable hospitality and tourism. First, it explains that social entrepreneurship supports the
industry and discusses five links to explain how the former underpins the latter. If the industry is
to become more broadly sustainable, then it requires the ongoing contributions of innovative
social entrepreneurs. Second, this research investigates the extent of this activity in Canadas
industry and whether its growth and benefits can be measured under the current circumstances.
The findings show large gaps in our ability to evaluate these questions. Third, given the expected
but non-quantified value of motivating social entrepreneurship within the industry, this research
Practical implications: The design of a national incentive program would encourage industry
sustainability through tax breaks. This voluntary system would require that firms provide
standardized annual reports with their tax filings so that reliable industry data could be collected
for analysis and understanding of the sustainability of the industry. Participating firms would be
sustainable hospitality and tourism such that it provides innovation that spurs sustainable
industry growth. This is also the first study of its kind to explore social entrepreneurships
Introduction
There is no shortage of literature debating tourisms impacts (Mason, 2015), nor the
Bramwell, 2012). This article suggests that spurring innovation in the hospitality and tourism
industry through social entrepreneurship will help to address this situation. Thus, this research
explains the relationship between social entrepreneurship and sustainable tourism so as to make
recommendations on how the former can serve to improve the state of the latter. Previous
research has not made this distinct connection nor suggested related policy solutions. First, both
terms, sustainable tourism and social entrepreneurship are introduced as well as the significance
of this topic.
The term sustainable tourism has long been debated in academic literature and has come
to have multiple meanings depending on the context. Before explaining this further, it is clarified
here that this research recognizes that hospitality and tourism are often discussed as separate, but
related industries. However, they are also often considered together (e.g., Chathoth, Ungson,
Harrington, and Chan, 2016; Denizci and Mohammed, 2015; Fong, Law, Tang, and Yap, 2016)
and for the purposes of this study, they are considered as an industry because they overlap and
influence each other and both need to become more sustainable. Also, the empirical work of this
study includes social entrepreneurship in both hospitality and tourism types of projects. Thus,
this study may talk about hospitality and tourism together or drop one of the terms, but the same
The key elements of sustainability in this industry are universal in that it is a form of
tourism that must reflect the three pillars of sustainable development: to benefit society, protect
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and respect the environment, and be economically viable over the long term in consideration of
future generations (Bramwell and Lane, 2002; Kensbock and Jennings, 2011; McCool and Lime,
2001; Butler, 1999). The United Nations World Tourism Organization (1995) defined
sustainable tourism as that which meets the needs of present tourists and host regions while
Sustainable tourism should not only be a small part of the hospitality and tourism
industry, as it is today. It is critical that the entire industry become more sustainable for a variety
of reasons as it relates to environmental, social and economic issues. For example, leakage is an
important negative economic effect where foreign multi-nationals reap the benefits of tourist
visits rather than the local tourist operations and their respective local communities (Lansing and
De Vries, 2007). Sustainable tourism requires that, where possible, local sources are preferred
and compensated at fair prices. From an environmental standpoint, reducing pollution including
greenhouse gas emissions, water and energy consumption so as to protect local ecosystems are
sustainable tourism issues. For example, clean transportation systems help to address these
issues. From a social perspective, some problems to be mitigated include cultural impacts and
social differentiation (Lansing and De Vries, 2007; Stonich, Sorenson and Hundt, 1995).
Although the call for a more sustainable industry has been at the forefront for many years, there
is little progress for wide reaching innovation within it even though tourism development [is
seen] as a potential avenue for positive changes through the ideas of sustainable tourism
Social entrepreneurship is a relatively new topic of interest within the academic and
literary worlds thus, the literature on it is limited (Kistruck and Beamish, 2010). With heightened
interest in recent years from various interest groups such as politicians, community
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organizations, and academics, the concept of social enterprise has become much more prevalent
(Chamberlain, Gillis, Prindiville, Bechard, Ulhaq, Elson and Hall, 2015). Driven by moral
factors, individuals see social enterprises as a way to increase and safeguard social equality.
Social entrepreneurship is evolving into a wider movement where business is more naturally
inclusive of it and it does not only occur as a matter of succumbing to societal pressures
(Brouard, McMurtry and Vieta, 2015; Sakarya, Bodur, Yildrim-ktem and Selekler-Gksen,
2012).
Boluk (2011), however, claims that the idea of social entrepreneurship has been given
minimal attention within the tourism industry and that social entrepreneurship is an emerging
theme of inquiry (Boluk, 2011, p. 199). Social entrepreneurship has been used in vague
terms (Abu-Saifan, 2012) and while social innovation has been considered an important aspect of
social entrepreneurship such that the two terms are used almost synonymously (Alegre and
Berbegal-Mirabent, 2016), according to some, social innovation is not necessarily required for
social entrepreneurship (Mulgan, 2007; Munshi, 2010). Perhaps this is because, at least in the
minds of some, the business does not have to do something novel to qualify it as a social
entrepreneurial venture, but not all agree. More definitions follow for further consideration of
this issue. A social innovation is an idea that aims to benefit a social goal or need (Mulgan, 2007)
and must provide gains for disadvantaged parties (Bright and Godwin, 2010). Thus, the
general consensus says that social entrepreneurship includes solving a problem (Prieto, Phipps,
and sell products or services that improve the quality of life for low-income or
disadvantaged people, while also earning financial revenues for the enterprise to
sustain and grow its activities. (Etchart and Comolli, 2013, p. 1).
Kline, Shaw and Rubright (2014) define social entrepreneurs as socially conscious
individuals who devise and incorporate innovative business models that address social
problems or needs that are unmet by government and the private sector in a way
Drucker (2002) takes the opinion that no matter what the size, age or type of business an
entrepreneur engages in, the heart of that activity is innovation: the effort to create purposeful,
focused change in an enterprises economic or social potential. (p. 96). Thus, there is some
disagreement as to whether social enterprises require social innovation and this article tends to
Peredo and McLean (2006) provide further clarity by suggesting that whereas a social
entrepreneur is the individual behind an entity that has both profit and social goals in mind,
social enterprise is the activity commonly equated with social entrepreneurship (p. 5). Social
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enterprises are able to address issues that affect marginalized and underserved groups, while
furthering local economic development (George, 2013). The definition of social entrepreneurship
is often discussed in the context of non-profit businesses that focus on social needs (Kroeger and
Weber, 2014). Social enterprise has been encouraged through the belief that market based
approaches to social benefit can contribute to the long-term sustainability of programs focused
However, different regions of the world have associated the term social enterprise with
their own distinct models and activities, developing differently until about 2005 (Defourny and
Nyssens, 2010). Europeans have mainstreamed the term into their institutional vocabulary
(Defourny, 2001). In Western Europe, federal governments have used social enterprise related
frameworks and perspectives to advance their own political agendas (Defourny and Nyssens,
2008). The situation has been vastly different in Eastern Europe where high rates of
unemployment, the fall of communism and poverty have driven agendas that have influenced
social enterprise (Les and Jeliazkova, 2005). In Canada, the term is relatively new and has only
recently entered into discussions. However, the influence has arrived more so from Europe than
from the United States where the focus has been on the drive for commercialism of non-profits
(Dees, 1994, 1998). In the US, private philanthropy has also influenced the emergence of social
enterprise, primarily in the non-profit sector (Defourny and Nyssens, 2010; Dees, 1998; Kerlin,
2006).
Within the literature on hospitality and tourism and economic development, two broad
themes appear: 1) tourism is a driver of economies, and; 2) there are economic cost-benefits of
tourism (Shaw and Williams, 2002). However, linkages between sustainable tourism and tourism
as involved in social entrepreneurship and its potential for economic development are scarce.
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Therefore, this research begins by examining how the terms sustainable tourism and social
entrepreneurship might relate to each other. Furthermore, it is explained how sustainable tourism
might be enhanced and possibly even require ongoing social entrepreneurship within the
hospitality and tourism sector. Following this is an examination of the extent to which this
activity exists in Canada. Finally, a recommendation for a system that can encourage, track and
measure social entrepreneurship that supports sustainable tourism in Canada is outlined. This
research concludes with recommendations, theoretical and practical implications, and limitations
and future research. Overall, increased discussion on how social entrepreneurship may enhance
tourism and hospitality is recommended, and furthermore, there is scope to highlight tourisms
entrepreneurship is a concept drawn from entrepreneurship, where the differences lay in the
intentions and overall objectives of the innovator and/or enterprise (Lepoutre, Juston, Terjesen
and Bosma, 2013). To be considered a social entrepreneurial venture, the related activity must
address and attempt to solve social issues in a larger context and/or encourage further activity
with social purpose to create a sustainable solution (Mair and Marti, 2006). Prieto, Phipps, and
Friedrich (2007) give the example of New York Universitys (NYU) views on the intentions of
social entrepreneurs. NYU lists three types of individuals and their intentions: 1) those who
have or plan to develop an innovative idea to address a specific social problem in a pattern
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breaking, sustainable, and scalable way, 2) those that will work in and/or build the infrastructure
needed for social entrepreneurial work to take root and 3) those who will bring action oriented
awareness on a national and/or global scale to particular social problems (p. 9).
As mentioned earlier, social enterprise is somewhat different in the United States. For the
most part, social enterprise has focused on increasing revenue for non-profit organizations or
fuelling social projects through philanthropy (Dees, 1998). In Canada, although the focus is also
on societal management of social needs, the majority of social enterprise development has come
from small for-profit rather than non-profit projects. As Dees (2003) adds, the focus in Canada
has focused on innovation and impact, rather than income because that was already present.
Whereas entrepreneurs will normally aim to affect change through the provision of a product or
service with an end goal of benefitting themselves and/or their organizations, social
entrepreneurs aim to benefit society at large through their initiatives (Lepoutre et al, 2013; Mair
and Marti, 2006). Although both entrepreneurs and social entrepreneurs look to seize
opportunities, social entrepreneurs search specifically for opportunities that will generate social
organizations. Hybrid organizations can exist on either side of the for-profit/non-profit divide;
blurring this boundary by adopting social and environmental missions as do non-profits, but
generating income to accomplish their mission like for-profits (Haigh and Hoffman, 2012, p.
126). Social enterprises often fall within this category as well (Lepoutre et al., 2013). However,
a different view regarding profit is held by Grassl (2012) who advocates for the following
conditions for a social enterprise: 1. it must be driven by a social mission (i.e., abstain from
distributing profit to shareholders); 2. it must generate positive externalities (spill overs) for
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society; 3. it must recognize the centrality of the entrepreneurial function; 4. it must achieve
Overall, the boundaries between for-profit and non-profit enterprises are blurred and
confused with the introduction of the concept of a social enterprise. However, whether socially
These understandings are key for thinking about how social enterprise may be important for
sustainable tourism.
The hospitality and tourism industry can either blossom to become more sustainable or
sustainable tourism can remain a specialty niche within this industry (Ruhanen, 2013; Lansing
and De Vries, 2007). Both situations are considered sustainable tourism here. The two may be
difficult to separate exactly, but the former may be characterized as adopting sustainable
improvements to existing businesses where sustainable activities are not necessarily core to the
business models. In contrast, the niche represents a whole new innovative set of sustainable
from within larger established firms. A larger firm may initiate social benefit type projects and/or
aim to reduce a companys overall impact on society. In contrast, the newer upstarts represent
social entrepreneurship. When sustainable tourism is discussed here, both types are considered
and the latter influences for former. This is relevant for this discussion because, as understood
from the previous discussion, social entrepreneurship maintains the critical quality of
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sustainability is a necessity to ensure that the enterprise remains a going concern (Lepoutre et al.,
2013). These innovations could be related to both types of sustainable tourism, whether
There are a few articles that touch upon social innovation and social enterprise in the
industry. Yang and Wall (2008) discuss the role of entrepreneurs in hospitality and tourism in
China and Shaw and Williams (2002) outline the need for social innovation. However, overall
there is a lack of research about the actual modus operandi of entrepreneurship (Yang, Ryan
and Zhang, 2014: 835). The following discussion focuses on how social entrepreneurship
changes the tourism industry towards greater sustainability from both perspectives and Figure 1,
below, is a diagram to show the five relationships that are next explored.
1. Social entrepreneurship grows the sustainable tourism sector more options for tourists
With social entrepreneurship generating new sustainable tourism start-ups, this means
growth for the tourism industry. Globally, the hospitality and tourism industry represents 11% of
all jobs and had an economic impact of US$ 1245 billion in 2014 (UNWTO, 2015). This
industry is growing in Canada but compared to other OECD countries, it lags and thus this
represents an opportunity for the country. For the average OECD country, tourism is 4.9% of
GDP whereas in Canada, tourism is only 2% of GDP. Also, for the average OECD country,
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tourism offers 5.9% of total employment, whereas in Canada tourism is only about 3.5% of total
employment (OECD, 2016). Within Canada, travel and tourism generate over $90 billion a year
in economic activity and with over 16 million international visitors every year this sector is the
countrys largest service export worth $17.2 billion annually (Tourism Industry Association of
Canada, 2016). As the hospitality and tourism sector represents every region of the country, it is
Canadas largest employer of youth under 25, and approximately 8% of SMEs in Canada
Association of Canada (TIAC), 2012, 2106). Social enterprises in Canada have become a sector
within themselves, one in which the Government of Canada takes an interest. As more
businesses utilize this model, further research can investigate the effects and impacts of social
enterprises.
Sustainable tourism with its entrepreneurial orientation may help Canada to address
economic dips in its economy through diversification (McIssac, Moody and Mowat, 2013).
Canada needs to diversify so that it is not as sensitive to resource-based industries and this is
why the Canadian context is a focus of this study (Blackwell, 2015). While Canada is of interest
to travelers, other OECD nations tend to be higher on their lists and these countries are deriving
larger portions of their incomes from them such as: France, Greece, Hungary, Iceland, Italy,
Mexico, Portugal, and Spain (OECD, 2016). Canada is working towards building an
internationally competitive tourism sector. This includes building awareness of Canada as a top
tourist destination (OECD, 2016; TIAC, 2016). Thus, Canada could find its point of
a bold sustainable tourism brand. In fact, Canada has a Federal Sustainable Development
Strategy (FSDS) called Planning for a Sustainable Future: A Federal Sustainable Development
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Strategy for Canada 2013-16 (OECD Canada Profile, 2016). However, there is little mention of
By employing workers with different levels of ability and from different socio-economic
backgrounds, social enterprises are able to help stimulate the economy and can make an impact
on social issues that the government is unable to address. This is especially pertinent in Canada
as its economy has suffered with the contraction of the oil and gas industry and the loss of jobs
by everyone from geologists to field workers. While Canada has committed to greenhouse gas
emissions reductions at the recent COP 21 (Prystupa, 2015), it still struggles with an oil and gas
industry that resists transformation and the related legacy work force (Krugel, 2016). Social
enterprises often address issues of social exclusion, poverty and aim to transform the labour
market which in turn increases the livelihoods of all citizens (Mendell, 2007). The additional
As a start, some increased tourism could result by designing sustainable activities and
options for select groups. Ireland did this by aiming at diaspora (Mottiar, 2016). This could
revitalize a market for tourism in Canada where tourism arrivals have dropped in recent years
(TIAC, 2012; 2016). Sustainability themed conference attendees could be Canadian targets. As
part of this plan, other less sustainable businesses would be utilized as part of accessing the new
sustainable ones. For example, one may have to take a flight to arrive at a conference in
environmental restoration and improvement projects. Over time, the airlines and other less
sustainable businesses, accessed out of necessity, could make efforts to improve their
sustainability to satisfy the tourists searching for the completely sustainable vacation.
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On the other hand, some tourists who would normally use the standard mass tourist
offerings may switch to the new firms offerings. Heightened competition may enter the industry
and the sustainable offerings might even command a premium price. As an example, Skwachys,
a boutique hotel in Vancouver, Canada, also a fair trade gallery and an urban Aboriginal artist
residence commands a higher price than most other small hotels in the area. While existing
businesses could lose the market size evaluated on a monetary basis could enlarge as tourists
increase their spending on the premium sustainable offerings. Whether one or both phenomena
occur together (increased competition and higher prices), existing businesses will feel pressure to
become more sustainable. Thus, the new innovations resulting from the social entrepreneurship
increase sustainable tourism from the two aforementioned perspectives, social intrapreneurship
and entrepreneurship.
Canada and abroad. CARE, a development NGO, spun off a firm called Jita in Bangladesh, for
women to sell brand items in their rural areas from Unilever, Bata, Grameen Phone, and others.
In Canada, a social enterprise called Mealshare is working with hospitality and food providers
nation-wide to help the less fortunate. Through a marketing partnership, Mealshare partners with
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restaurants and places their logo next to a few menu items. When a customer orders a Mealshare
Item, they get their meal and Mealshare provides one meal to a youth in need. To date they have
Non-profits can offer patient capital and expertise to make start-up attempts where for-
profit businesses would not normally enter (Cohen and Sahlman, 2013). Once the new enterprise
is profitable the non-profit releases it as a going concern. Thus, the non-profit acts like a social
enterprise creating a socially beneficial for-profit business within a harsh environment for long
term economic development. The new business is sustainable utilizing local people and
resources thus, avoiding leakage. This same model could be duplicated within the tourism
industry where a tourism social entrepreneur works with a larger NGO for additional support.
For example, the Planeterra Foundation, the not-for-profit enterprise of G Adventures (a tour
operator) in Canada, has developed many initiatives to help foster community enterprises that
then become part of the mainstream tour operators offerings both locally and abroad. In the
village of Huchuy Qosco, Peru, Planeterra helped to establish a community restaurant 100%
owned and operated by the local community. Within the first nine months of operation, the
Parwa Restaurant served 16,000 guests and earned $160,000 USD in revenues. Their profits
were invested back into the business: finishing a two level building for administration, employee
change rooms and bathrooms, gardens, glass walls for the eating area, and more serving supplies
like plates, cutlery etc. They were also able to develop three of their own community projects: a
computer lab and library, a home care program for the elderly of the village, and a scholarship
social relations such as labour laws existing firms may struggle to change and to change in such
a manner that their businesses are enhanced (Hitchcock, 2009). However, new regulations can
result in benefits such as cost savings and by creating barriers to entry for new firms. They may
even be strategic for a business (Davari and Strutton, 2014; Graci and Dodds, 2009). New start-
ups offering special goods and/or service expertise may aid existing firms in meeting
requirements and in helping them to realize benefits. Thus, the start-ups accelerate the
sustainability of the industry while helping government see its new policies enacted. An example
provincial and national parks. Due to the success of this venture the National Parks of Canada is
(https://www.parkbus.ca/).
attention
By attracting tourists with new sustainable tourism activities all the while ensuring positive
impacts for local communities, positive spillovers can ensue (Lordkipanidze, Brezet, and
Backman, 2005). Reduced leakage can result with the thoughtful participation of new and
existing hospitality and tourism businesses, alike, just one of the economic advantages. Greater
numbers of visitors may utilize a range of goods and services thus supporting local businesses. In
the process, they gain awareness and possibly a greater appreciation of the locality, its people
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visitors can result in their empathy for that nation through their experiences as visitors. When
many international visitors have developed these common positive experiences, this may have
untold impacts. For example, when Koh Phi Phi in Thailand suffered from the Tsunami in 2004,
the destination attracted increased relief aid as many of its past visitors remembered their
positive experiences and also came to help with the clean up. Another example in Canada is
Fogo Inn based in Newfoundland. The accommodation features rainwater capture and storage,
solar, and use of local labour and materials. All of Fogo Inns furniture is 100% locally made and
now the communitys furniture is sold on KLAUS by Nienkamper. The Inn won the Greatest
Innovation/Disruption Prize at LE Miami and is one of Architectural Digests Ten Most Daring
New Buildings Around the World. The Fogo Island Inn has recently been recognized on Cond
acclaim may be partially due to the rise of this social enterprise in a depressed economy that has
historically been dependant on oil. However, Fogo is an example of a social tourism enterprise
sustainably. If the touristic systems do not facilitate this, visitors can overrun a locale and create
damage instead, but the opportunities for the opposite are there (Levy and Hawkins, 2009). For
example, in Niagara Falls too much development too quickly resulted in the eyesore called
Clifton Hill opposite the falls. Also, disposable ponchos distributed on popular attractions like
the Maid of the Mist or the Journey Behind the Falls are often seen littering the city and local
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parks. Whistler, a key hospitality location located on the other side of the country in British
Columbia, also attracts thousands of tourists per year. However, hospitality and tourism is
planned for and managed through sustainable town planning and community inclusion. This is
illustrative of cases where both new social enterprises and existing tourism operators can jointly
develop the sustainable systems to handle larger numbers of tourists, ultimately increasing yield
(increasing the overall revenue from tourist spend rather than just increasing the number of
tourists).
In general, research has found that although there has been much discussion about making
the hospitality and tourism industry more sustainable, the worldwide industry has not made much
progress (Buckley, 2012). Sustainable tourism is simply a niche whereas the global mandate is
that all tourism, including what is termed mass tourism, should become sustainable (Lansing
and De Vries, 2007; UNWTO, 2014). Some research states that the main driver of change is
government regulation, not market approaches (Buckley, 2012). Other research supports this
view that private enterprises, although they like the idea of sustainable tourism, do not feel
responsible for a local sustainability mandate and feel that they only have resources to look after
their own enterprise concerns (Kernal, 2005). On the other hand, recent research in the Chinese
tourism industry has looked at the shift that some organizations have taken from being non-
profits to profit oriented social enterprises (Wang, Duan, and Yu, 2016). This shift is from a
different starting point. Incidentally, that research recognizes the importance of national context
for these types of studies, as does this research on the Canadian industry.
Studies in sustainable tourism have considered the aims of social entrepreneurial ventures
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and how this translates into success for them. A study by von der Weppen and Cochrane (2012)
found that the success of social tourism enterprises is typically focused on relieving poverty and
environmental stresses in a financially self-sustaining way. The study concluded that in order to
see success within a tourism social enterprise, a balance must be maintained between the social
and environmental aims and financial aims (von der Weppen and Cochrane, 2012). Also, a
recent Spanish study found evidence that the factors mattering the most for social entrepreneurial
success, both in terms of meeting social and economic goals, included the choice of the value
proposition, preforming relevant market research, and getting stakeholders involved (Alegre and
Berbegal-Mirabent, 2016). Other single case study research in the South African hospitality and
tourism context considered the challenges of managing competing for-profit and non-profit goals
within the same social enterprise (Laeis and Lemke, 2015). This research warned about problems
when there is confusion about the goals of the social enterprise and when stakeholders are not
aligned.
A study by Mody (2013) explains the factors affecting supply and demand of social
tourism enterprises, specifically tour operators, from both operators and consumers perspective
using Indian social enterprises as the primary example. The major findings of the study were that
within the social tourism enterprise field, responsible tourism is considered the usual responsible
business practice and is considered a top priority. In addition, social tourism enterprises are the
Previous action research has experimented with a process for implementing sustainable
tourism on a small-scale county level basis in Europe with limited success because of the private,
voluntary nature of the program (Kernal, 2005). No enforcement existed and the system did not
motivate new innovation. It only attempted to convert existing enterprises to become sustainable.
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Although previous literature does address social enterprise or social innovation to some
extent, it does not focus on the link between social enterprise and sustainable tourism as does this
sustainable tourism practices and application of sustainability as a core business value within
tourism. In addition, authors discussing sustainable tourism outline that in order to move forward
on sustainability so that it is more than a niche, policies, control and enforcement are needed
(Aall, Dodds, Slensminde and Brendehaug, 2015; Hall, 2011; Dodds, 2007). However, to
create new opportunities and address societal needs, the system must motivate the birth and
growth of new social enterprises to ensure continuing improvement and innovation in sustainable
tourism. The following sections examine social entrepreneurship in Canadas hospitality and
tourism industry and then make recommendations for a Canadian incentive system for the
industry.
The existing literature is not sufficient to tell us how sustainable the industry has become
in Canada or how much it has changed. In an article summing up twenty years of research and
debate on sustainable development and relating this to tourism around the world, Andrew Holden
Thus, twenty years after the publication of the Brundtland Report the subsequent
European Union (EU), and the World Development Bank, the extent to which tourisms
Some might argue that tourism has become less sustainable. Hall (2010:131) states that:
The field of Tourism Studies has given substantial attention to the issue of sustainability
since the late 1980s. However, despite the plethora of publications, conferences, plans
and strategies that deal with sustainability, tourism is arguably less sustainable than it has
even been.
Canada can be included in these comments. The nation has little information about the
state of social entrepreneurship in its own tourism industry or how sustainable tourism is in this
country. Because measurements are not being taken, no database is available for use to test any
presuppositions. Indeed, a sustainability measurement scale that assesses the level of engagement
in sustainable actions is needed to promote them through collective efforts (Alisat and Riemer
(2015). However, measuring organizations contributions to social well-being and the natural
environment is needed even more than measures of individuals actions and values.
This research attempts a rough cut at showing that it is likely the case that Canada needs to
implement systems so that the nation can evaluate the state of its tourism industry with respect to
sustainable development. This research will demonstrate the need for data collection so that more
accurate evaluations can be conducted in future research and so that Canada can know the extent
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to which its industry is sustainable. In support of this effort, Buckley (2012: 537) states that:
sustainability indicators for the tourism sector. The most difficult component is to
important.
Methodology
The intention is to determine the level of social entrepreneurship activity within the
hospitality and tourism industry in Canada, given the information available. Thus, this is case
study research at the exploratory stage that does not incorporate propositions (Eisenhardt, 1989;
Rowley, 2002). Case study guidance suggests that this type of research may include reviewing a
wide variety of sources and multiple sources increases construct validity (Yin, 2013; Rowley,
2002). For this case, relevant sources were accessed in a two-part review where available
literature was reviewed and then sources reporting on sustainable hospitality and tourism projects
were examined. The literature referred to social entrepreneurship within Canada and, as well,
The second part of the review tabulated Canadian hospitality and tourism businesses that
social entrepreneurship is defined and described in the previous discussion. The word projects
is used because an entire business may not focus itself on social entrepreneurship, but it may
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engage in it as a portion of its activities. Thus, they are projects. A single in-depth case
analysis was undertaken that being of the Canadian hospitality and tourism industry so as to
show an example of differences in a commonplace theme. The Canadian projects were tabulated
according to the regional orientation of the search terms used and the website found or whether
the projects were part of social enterprise hubs (See the Appendix). Gray (2013) identifies single
case studies as a research method used to observe an example that is unique. It is not the
intention of this study to generalize from this research, but rather to supplement our
understanding of social enterprise within the Canadian industry and promote possible further
investigation. This study contributes to very early and developing knowledge base of social
enterprise in national contexts fostering sustainable hospitality and tourism. No national context
is exactly alike as this industry tends to tailor itself to context. The explanation for choosing
reviewed. To find these projects and websites a Google search was conducted using keywords
methodologies are outlined in the tables under the column entitled Search Terms/Methods
which can be found in the Appendix. This case study protocol increases external validity and by
developing the largest database possible for the Canadian industry, reliability is increased
(Rowley, 2002). This same methodology was also used to search for social entrepreneurial hubs
or innovation and resource spaces for supporting hospitality and tourism start-ups. By
developing explanations as part of data analysis internal validity is increased (Rowley, 2002).
Results
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Upon searching through Google using keyword search terms such as social
social entrepreneurship projects within the hospitality and tourism industry in Canada arose. It is
difficult to find these social entrepreneurial projects, especially in the hospitality and tourism
industry. Although these projects exist, they are seldom made visible online and to the public.
Unless one were to search in depth for these particular projects or come across them in the place
of business, they are rarely to be found. More details of the Google search methods can be found
in the tables in the Appendix. Through the search, it was found that there are sites that showcase
sustainability projects and/or provide support (often financial support) for these projects. Within
these sites, there are often available directories that categorize the various projects into groups. In
particular, categories that relate to the hospitality and tourism industry were viewed. It was found
that there are limited showcased hospitality and tourism social entrepreneurship projects. Two
2) Hospitality and tourism social entrepreneurship projects and/or businesses are not
were found. Food is considered a segment of the hospitality and tourism industry and, in general,
more strongly associated with hospitality. Moreover, several reports compiled by the Social
Enterprise Sector Survey indicate that within the category of social enterprises, a large majority
of these sustainable food projects fall within the hospitality and tourism business sector (See
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In regards to the search for hospitality and tourism related social innovation hubs, there
was no information found in the Canadian hub webpages (See Appendix, Social Media Hub
table for more details). Hubs were focused on the provision of collaborative spaces for
individuals and/or organizations. Other benefits of these hubs include: the opportunity to connect
with other social entrepreneurs or those with innovative ideas, financial aid or resources, and
This section discusses some of the results mentioned above and makes some related
recommendations. First, the search for information on social entrepreneurship within the
Canadian hospitality and tourism industry discovered few social enterprise projects. Second, it
did not find any supportive hubs. Therefore, social enterprise activity within the industry exists
in Canada, but it is not highly visible and it, together with sustainable hospitality and tourism,
has not been paid enough attention. Thus, what is now a niche could use a stronger framework
for inclusion, identification, and incentives to support its growth. If sustainable hospitality and
more aware of climate change and environmental considerations they may begin to seek out
locations noted for their sustainability (Hansla, 2011; Dodds, Graci and Holmes, 2010; Hedlund,
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2011). Moreover, Canada has tremendous cultural richness through its diversity, in its cities, but
also across the country. According to previous reports, Canada is not recognized for its cultural
attractions, thus a national framework that supports sustainable tourism on all its dimensions
could be very beneficial for highlighting Canadian destinations for both their environmental
making this suggestion, a search was conducted to discover what systems for measuring and
incentivizing sustainability in hospitality and tourism exist elsewhere. For example, The
Sustainable Tourism Benchmarking Tool (STBT) was developed by UNCTAD (Cernat and
Gourdon, 2007). It identifies seven key dimensions to be measured: tourism assets, tourism
sustainability, overall infrastructure, and attractiveness. It also applies the framework on three
countries: Indonesia, Malaysia, and Thailand as case studies for demonstration purposes. In
addition, an Irish study of a government program called the Gathering which encouraged
diaspora visits supports the point that government can motivate social entrepreneurship in the
hospitality and tourism industry for positive impacts (Mottiar, 2016). While government can set
objectives, this recent study suggests that local ownership for empowerment is a key factor for
success. Franzioni (2015) also offers a framework for measuring the sustainability of a tourism
destinations and organisations. This suggests that whatever system is designed for Canada should
(GEM) could be considered as a model for data collection. It is a 17-year-old tool that is already
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trusted by the United Nations, OECD, World Economic Forum, and World Bank and is a widely
connected data collection effort of entrepreneurship. A similar type of system that tracks key
business sustainability measures could be employed to evaluate hospitality and tourism social
enterprises within Canada to determine their key attributes. Overall, the usefulness of the
aforementioned frameworks and systems would be in adapting and integrating them into a larger
program that would motivate sustainable hospitality and tourism in Canada and allow data
The aforementioned systems could provide some ideas for the design of a Canadian
measuring and reporting system and this article makes some additional suggestions. The
Canadian government could create a sustainability incentive program for the hospitality and
tourism industry within Canada. Incentives such as tax breaks would be key for motiving all
projects and programs, whether for internal operational improvements or as goods and services
offerings. Annual voluntary sustainability reporting, as part of a firms tax filing, would support
an application for sustainability tax breaks. With standardized reporting linked to tax filings,
reliable data could be collected systematically over time. Because only those firms that
voluntarily apply for the tax breaks would be supplying this data, then a limitation for future
understanding of this industry might be that the data could only track that subset of firms.
However, a reasonable assumption could be made that if firms receive sufficient monetary
benefit in return for their filings, then if they are not filing, they are probably not engaging in
sustainability to a meaningful extent anyway. Thus, this is an efficient way to determine the
sample size for future research analyses. Also, since reporting can be a significant burden,
especially for SMEs, the filing expenses would be tax deductible for them.
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If Canada would like to build a reputation for its growing sustainable hospitality and
tourism industry, then some public reporting is needed out of this tax incentive system. The
suggestion here is that the firms that file these sustainability reports and successfully qualify for
the tax breaks can be added to a government website list that reports annually on the qualifying
firms. This is beneficial advertising for these firms and for visitors to or within Canada because
they would be able to rely on this information. It would come from a trustworthy source that has
evaluated the firms on a reasonably even basis. Any additional advertising would be at the firms
discretion. For example, they could tell their sustainability stories. However, their sustainability
reports for tax purposes would be kept confidential as are tax filings, in general. This would
encourage full and transparent disclosure along with the fact that the Canadian Revenue Agency
is vigilant in terms of tax collection and enforcement of reporting. Thus, this approach is well
designed for the Canadian context and could work in other nations where tax evasion is
Moreover, because this program would be developed in conjunction with the existing
taxation bureau (Canada Revenue Agency), no new costly institutional set-ups would be
required. Some additional staff may be needed to approve the reports and perform random audits
to prevent fraudulent reporting. However, the tax bureau already performs these types of
functions for other aspects of taxation so the general expertise exists in-house. Each year, the
government could evaluate the success of the program in terms of incentivizing the industry and
its corresponding delivery of sustainability. This analysis would become clearer over time
because the data would be submitted annually in a consistent format. Thus, this sustainability
policy could be adjusted for greater success and changing conditions over time, as is usually the
Conclusions
Theoretical Implications
This research has made several theoretical contributions. It has logically connected the
literatures on social entrepreneurship and sustainable hospitality and tourism, thus explaining the
conceptual linkage between them in a general sense and in more specific ways. The general
connection between them is innovation and growth of the latter. Entrepreneurship and
intrapreneurship that focus on solving social and environmental issues by offering the related
goods and services can stimulate the larger industry to be broadly sustainable. Sustainable
tourism can become more than a niche. At the same time, the niche grows because the larger
industry needs to augment its existing services with those that are more specialized.
Figure 1 together with the corresponding five sections of discussion explained how social
sustainable hospitality and tourism sector, creating more options for visitors, 2) social
entrepreneurship creates a base for other more profitable activities thus spurring sustainable
and social regulations, and 5) social entrepreneurship fosters local economic development and
In addition to this theory that was explicated with illustrations, this work made practical
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Practical Implications
This article offers practical implications that make contributions to the hospitality and
tourism literature. The UNWTO has stated it an imperative that the industry become sustainable
and sustainable tourism, in general, has been discussed within the tourism literature, but there
has been a lack of implementation on a global scale (Hall, 2010; Buckley, 2012), thus this work
contributes to that goal. The focus here has been on the Canadian context with implications for
other similar national contexts. Nations tend to face unique sets of issues requiring tailored
solutions. Social entrepreneurship and intrapreneurship can likely increase sustainability in the
industry in almost any market economy, but how that might happen depends somewhat on
Canada was chosen because among many attractive OECD countries that have thriving
hospitality and tourism industries, Canadas has a great potential to succeed further than it has.
Moreover, Canada is facing some urgency in altering its economic makeup thus, it can benefit
from this examination. It needs to increase diversification away from commodities, especially its
flailing and volatile oil and gas industry that also contributes to climate change. Canada has also
made international climate commitments at COP 21 that it will struggle to meet. Thus,
hospitality and tourism is a promising industry for increasing its share as part of a larger portfolio
This examination showed that the data for supporting industry analyses and potential
industry and it does not even exist disparately so that it could be compiled. A search showed that
sustainable hospitality and tourism does exist in Canada, but that it needs measurement to
understand it more exactly. Thus, this research found some frameworks and ideas that may
entrepreneurship.
At the same time, because sustainability is a social good and there are market failures in
the attempt of its private delivery, then government needs to be involved. For implementation in
Canada, it was suggested that the federal government develop a sustainable hospitality and
tourism tax incentive program that, if voluntarily applied for, would offer motivational monetary
and marketing incentives to spur the sustainability of the industry, both more broadly and in the
existing niches in the country. This is a practical contribution that could apply to other nations
The empirical work was exploratory because of the novelty of the topic within the
hospitality and tourism industry and due to limitations related to data availability. The web
place and existing information is fragmented and hard to find. While we wait for measurement
systems to develop and more data to become available, research in the near term could follow up
with some detailed case studies of some of the Canadian projects to look at how these social
entrepreneurs are faring. As outlined by Alegre and Berbegal-Mirabent (2016) and Mottiar
(2016), having appropriate market research and assessing and understanding stakeholder
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involvement greatly influences success, thus expanding the current study would prove beneficial.
In addition, some previous research that examined work values over the generations could be
expanded upon by investigating whether sustainability and entrepreneurial values are changing
and Choi, 2008). This would inject some knowledge into our literature to explain if, at the
individual and generational levels of analysis, sustainable tourism could become increasingly of
interest in Canada. This would not make a difference for the main conclusions of this work
because ultimately, for in-depth and statistical analysis of the sustainability of the industry, a full
data set needs to be collected. This research identifies this requirement and sets out an approach
for gathering that data through a national tax incentive program supporting a sustainable
industry. Thus, more detailed industry level research may occur in the distant future if our
Further to this, a pilot project could be done to test the potential uptake of the tax
incentive scheme so as to avoid hypothetical bias that could be present (Michaud and Llerena,
2011; Luzar and Cosse, 1998). Government may like to do this pilot testing as part of policy
development. Many new tax policies are enacted by the Canada Revenue Agency that would be
better equipped to do pilot projects. Additionally, further research using Sigalas (2016)
Another limitation, as with all studies that discuss sustainability and social enterprise is
social desirability bias (Smith, 2007). The data collection process was such that the computers
used to do the searches may have already been used to do prior sustainability searches and
therefore subject to Google search analytics criteria that is unknown to the researchers.
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Finally, other nations having large grey markets and informal economies where taxation
systems are not effective need different solutions than those suggested here. The tax incentive
program in this article would not likely work in these other types of places. This offers much
opportunity for future research. The approach to this examination could be used in other contexts
where the Internet is in wide use and then correspondingly appropriate solutions could be
developed.
Thus, overall, this research presents a rationale that suggests the critical role of social
entrepreneurship for building a sustainable hospitality and tourism industry together with an
approach for supporting this productive dynamic in nations with strong tax regimes. Future
research can use this work as a basis for investigating how a sustainable industry can be enacted
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Biographies:
Rachel Dodds is a Professor at the Ted Rogers School of Hospitality and Tourism Management, Ryerson
University, Canada. Her work focuses on practical, applied management and the development of tourism.
Her main research focus encompasses sustainability issues in tourism.
Deborah De Lange is an Assistant Professor in Strategic Management at the Ted Rogers School of
Management, Ryerson University, Canada. She has always been passionate about making the world a
better place, and her current focus is on sustainable development issues. She brings a wealth of talent and
experience to bear on these issues: an electrical engineering background, an MBA in science and
technology and a PhD in strategic management, as well as years working in industry and as a strategy
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consultant.
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Appendix
Nationwide
Terms/Methods
Social Enterprise http://www.soci Google: This website categorizes various social entrepreneurship projects in Canada by
Canada alenterprisecana social province, industry, primary purpose, market focus, and sales area.
SVN www.svn.org Navigate to: There were no social entrepreneurship projects within the travel & tourism
Members>Product
s and Services
Directory>Filter
w/ Canada and
Social Enterprise http://www.sess This website lists reports of surveys conducted of social entrepreneurial
rt/ In each report, a percentage of social enterprises which are active in each sector
Summary:
Ontario
Terms/Methods
directory/?actio Canada o Out of This World Caf, Friends Catering Company, and Lemon &
Operation http://operation Ethical travel and sustainability; social conscious backpacking internationally
m/what-we- 80 programs
do/who-we-are/
Brewing Company us.ca/bybo Online home beer delivery service that provides a charitable donation to
Home (BYBO: Buy comehome.ca/p Also provides homeless youth with employment opportunities (administrative
Online) your-beaus-
online-b-y-b-o/
British Columbia
Terms/Methods
of the Pacific Offers educational programs and raises awareness about the environment
(HCP)
Hubcap: BCs http://www.hub Google: British There are 5 projects/initiative listed on this website
Social Innovation capbc.ca/Explor Columbia Social 1 of the 5 is a project called ThisFish, under accommodation & food
Hub e.aspx Entrepreneurship o The project allows the consumer to see where their fish on their plate
came from
Vancity https://www.va Google: British Lists several social entrepreneurship projects/initiative by businesses within
tVancity/Investi Entrepreneurship Not necessarily directly hospitality/tourism, however there are some, such as a
es/StoriesOfImp
act/Social/
SVP Vancouver http://www.soci Google: British Showcases some non-profit programs, not all directly hospitality/tourism, in
s.org/vancouver Entrepreneurship There are some projects relating to local chefs (Growing Chefs) and tourism
are/nonprofits-
we-support/
Alberta
Terms/Methods
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Measuring the Size, http://www.mtr Google: Alberta Pg. 42, 2012 study indicated that in Manitoba, 67.8% of social entrepreneurial
Scope & Scale of oyal.ca/cs/group social enterprises surveyed (approx. 118 enterprises), are from the accommodation,
Manitoba mbsurvey.pdf
Alberta Social http://www.sess Google: Alberta Pg. 49, 2012 study surveyed 197 social enterprises, and indicated that 47% of
Enterprise Sector .ca/english/wp- social social entrepreneurial enterprises are from the accommodation, tourism, and
2013/11/Final- business
AB-Report-
November-
19.pdf
Social Enterprise http://socialente Google: Alberta List of social entrepreneurial businesses being funded by Social Enterprise Fund
business
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Terms/Methods
HubCap: BCs http://www.hub Google: social The website of BCs social innovation hub
Social Innovation capbc.ca/About- entrepreneurship Allows members to access publications, articles, and connect with a network of
Us.aspx Does not inform about hospitality and tourism related projects specifically
Canadian Social http://socialecon Google: Canada The connection between 6 research centres across Canada (Quebec, Atlantic,
Economy Hub omyhub.ca/ social Southern & Northern Ontario, Prairies, British Columbia, and the North)
Centre for Social http://socialinno Google: Canada Toronto based space for organizations to work on their social entrepreneurial
Does not inform about hospitality and tourism related projects specifically
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BC Centre for http://www.cent Google: Canada The centre offers resources, community networking, facilities, and research to
.html hub
Hub Ottawa http://ottawa.the Google: Canada A collaborative work environment where members are able to connect to a
-hub.net/ social network of over 7,000 individuals within the social innovation space worldwide
entrepreneurship
hub
The Hub Halifax http://www.theh Google: Canada A space fueling innovation amongst individuals and organizations
entrepreneurship
hub
Hive: Sweet Social http://www.hive Google: Canada A social hub in the Vancouver area fostering innovative ideas through providing
entrepreneurship Members are not focused in one industry; no mention of hospitality and tourism
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http://www.bdc.ca/
EN/about/csr/econ
omy/support_socia
l_entrepreneurs/Pa
ges/default.aspx
(found on this
page)
sdd.com/ social Provides services such as: advisory, funding, and facilities
hub
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