Investing in the Values of the Future

Anna PollockCEO

Desticorp

Roadmap• The Relevance & Power of Values• Why are they changing?• How are they changing? • Impact on Tourism’s Future in the South Pacific• Implications and opportunities

Tourism A History of Changing Values

Celebration & Pilgrimage

The Grand Tour

Escape

Rest & Relaxation-escape & exclusivity

Romance

Retail Therapy

Exploration & Learning

Source: www.johannaost.com

Adventure

The Real Adventure

Abraham Maslow

Meaning

Meaning

Doing Good

Welcome back the “diaspora”

Coming Home

Why are Values so Important?

Spend our time & money

What attracts our attention

who we trust

•Family•Government•Business

•Friends•Peers•People Like Us

what we count•Income – how much we make•Friends – real and virtual •Net worth – sum of assets and liabilities•GDP – sum total of economic activity•Arrivals – people crossing border•Yield – how much they spend•Growth – more•Happiness – how good we feel inside•Footprint – how we impact the earth•HPI – Happy Planet Index

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…and how we assign value

• INTRINSIC VALUE• What does it cost?• How necessary is it?

• EXTRINSIC VALUE• How much can I charge?• How much will you pay?

• SCARCITY VALUE

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What do we Value?

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Liquid ValueIf the Unit of measure =16 fluid ounces, which has the most extrinsic value?

• Bottled water?• Starbucks Coffee?• Gas (petrol) for your car?• Crude oil?• Tap water?• Unit of atmosphere?

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If the Unit of measure =16 fluid ounces, which one has the most extrinsic value?

• $1.50 Bottled water• $4.00 Starbucks Coffee• $0.52 Gas or petrol at an Exxon gas station• $0.24 Price of crude oil at $80 a barrel• ? Clean Tap water• ? Unit of atmosphere (clean, pollution free air)

Liquid Value

Whose Values Matter in Tourism?

Host Community

Investor

Guest Supplier

How Do We Anticipate Future Values?

This is where the peoples of the South Pacific have a

built in advantage

The Art of Wayfinding

Surface eddies or deeper ocean currents………….28

Trends

Drivers

Paradigms

Organization,Structure

Outcomes

CultureValues

Perception

our unexamined assumptions

To anticipate future values, go deeper

The power of perception

Defeated by what they couldn’t see

Will Tourism Put Wind in Our Sails?

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Even though the “NICE” times are over

*NICE = Non-inflationary period of constant expansion

So, are we at a punctuation

point in history?

Is this being asked of us?

“We are at that point of time when a four-hundred-year-old age is rattling in its deathbed and another is struggling to be born – with a shifting of culture, science, society and institutions enormously greater and swifter than the world has ever experienced…..”

…….Ahead lies the possibility of regeneration of individuality, liberty, community and ethics such as the world has ever known, and a harmony with nature, with one another, and with the divine intelligence such as the world has always dreamed. .

Trends Organization,Structure

Outcomes

Drivers CultureValues

Paradigms Perception

our unexamined assumptions

How are people in your markets changing their view of the world?

What Assumptions are Changing?

• We’re separate objects• It’s a material world – value lies in things• Only the fittest survive, compete or die• Growth is essential for economic stability• The earth is a lumberyard with resources to be used to

make and sell things• Technology will solve our problems• Tourism is an industry• GDP measures prosperity

We’re Changing Operating Systems

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The Industrial Model Assumes

• The universe is a machine of parts and objects• The planet is a lumberyard• The industrial model can be applied to tourism• Places and people are resources to be exploited

The industrial model:

• Productizes• Standardizes

• Homogenizes• Commoditizes

The industrial model ignores THE Key Value Driver = SCARCITY3

• Only one place• Only one period of time• Only one experience

The industrial model is inaccurate

There are no straight lines in nature

Nothing in Nature Grows Indefinitely

Death in Venice

Changing Perception of SpaceWe’ve only one home

But is it toxic real estate?

We’ve only one home

Are we living beyond our means?

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We Need Three to Support Our Current Population & Current

Lifestyles

We haven’t had to pay for our life support services

Economy Depends on Ecology

• The Economy is a wholly owned subsidiary of the environment

• Not just about “greening” but changing our view of ourselves

CONNECTIVITY & COMMUNITY

From separateness to interconnectivity and interdependence

Future value is in the relationships between people

Law of networks

Tourism is NOT an industry but a Community of Connecting Agents

Individuals Wield Enormous Power

Individuals Wield Enormous Power

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The web is changing tooFrom a channel to a platform for collaboration

ORGANIZATION

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• Destinations are communities• Self-organizing, complex, adaptive• They are not assembly lines or factories• Leadership is now about capacity building and

facilitation• Collaboration and Cooperation enable innovation

and resilience

Industrial Organizations

What do they need to survive?

• Orders & Order• Commands & Control• Stability• Continuity• Rules• Fear• Withholding Information• Measurement• Incentives• Competition

Ecological Organizations?

•Everyone is a leader•Everyone sensing, respondingand communicating•Transparency•Trust•Reputation•Agile•Adaptable

How Do They Survive?

Re-thinking What We Measure

• Does GDP measure what we value?

• Can we have prosperity without growth?

• Happy Planet Index• Footprint• Life satisfaction• Health• The ecological efficiency with

which happy & healthy lives are supported

CHANGING CONSUMERS

Implications for the South Pacific

Questions for the South Pacific1. Have you made a conscious choice about the kind, scale

and scope of tourism you want to develop?2. Is this choice true to the values of the community? 3. Do you know how to generate the greatest net benefit from

tourism and integrate it with and serve the entire economy?

4. Are you able to apply principles of Scarcity and Stewardship in your own unique way?

5. How will you define and measure success?6. Will your choices withstand the intense scrutiny of all

stakeholders?7. How willing are you to work in new more collaborative

ways and break down the barriers that have traditionally separated tourism from other economic sectors?

Q&A Session

Anna PollockCEO

Desticorp