International Tourism OrganizationsHenryk Handszuh

Katowice School of Economics (GWSH)Plenipotentiary, International Documentation and Research Centre on Industrial Heritage for TourismMadrid Zabrze

Fmr. Director, Market DepartmentWorld Tourism Organization UNWTO, Madrid

Part I. Theory of organizationsOrganizations as a vehicle of cooperationRoles of organizationsEffectiveness of organizationsStrategies of organizationsQuality and capacity assesment

Organizations as a vehicle of cooperationCooperation, also called collaboration, is working and doing things together, by independent subjects, whereas it implies on their part:

An aptitude of creating links with othersAn ability (capacity) of working within a group with a view to reaching common objectivesAn ability (capacity) of team work with a view to executing tasksAn ability (capacities) to jointly solve problems

On individual level these capacities to cooperate are considered to be among emotional competences of people

This capacity is also considered to belong to social competencies which determine the quality of relations with other people

What makes up social competencesSocial competences make up social capital

It implies a social structure: consists of networks of common understanding and trust, shared knowledge and norms of behaviour, language, practice

Without trust and comprehension, cooperation and exchanges in the market cannot take place

In companies and organizations, without social knowledge and norms, the staff and the employees wouldnt be able to cooperate and produce together

In the economy and the state the social capital makes possible the functioning of the industrial capital

Cooperation and collaborationCooperation and collaborationare responsible for creating internal (personal) links among members of the group (representing specific interests)are responsible for developing a respective identity as the team and the whole

This makes it possible the constancy and efficient functioning of the team or system with a view to attaining common goals of its members

The effectiveness of cooperation depends on the quality of social capital (mutual trust) within the organization or community (including international community)

Actors and beneficiaries of cooperation within international organizations in the field of tourismStates/state bodies/central administration

Local administration

Public institutions

Companies/chambers of commerce

Consumers/consumer advocates

Trade unions/staff

Civil society organizations

Consultants/experts, research institutes, academic institutions

Media

Objectives of cooperation (or competition) through international organizationsExchange of information and experience

Creating favourable climate for an activity (lobby)

Joint representation

Activities in favour of common interests (political, economic, social, cultural, professional)

Joint undertakings (actions, campaigns, activities)

Solution of problems

Research

Elaboration of common codes, standards and norms

Elaboration and execution of legally binding norms

The need of cooperation in tourism to overcome barriersBarriers of supply (production, distribution.) affecting the commercial sector

Barriers of resourcesMaterial and intangible components of the product and energy

Human capital (skills)

Financial (benefits and credit)

Management-related

Formal/administrative (regulations)

Territory- and distance-related (technological)Barriers of consumption

Financial (disposable income)

External environment, physical and social (e.g. people with disabilities, age- and gender-related)

Formal/administrative (regulations)

Consumer mind-related (cultural, educational)

Including territory- and distance related

Main areas of international cooperation in tourism through international organizationswith respect to vulnerabilitiesCooperation regarding consumers

Mobility (freedom to travel)

Consumer economic rights

Group interests

The young

People with disabilities

The poor

Social tourism

with respect to vulnerabilities (2)Aiming at the reduction/elimination of negative effects of tourism activities (production and consumption)

Social effects

Natural environmental effects

Cooperation for development

Economically underdeveloped and poor regions

Least developed countries (LDCs)

Promoting desirable (sustainable) investments

Investments in general (foreign direct investment)

Protection of minorities

International cooperation takes place in the framework of different forms of organizationsWhat is an organization? Elements/requirements of organization

Members

Objectives or aims

Structures/organs including secretariat (staff)

Procedures

ResourcesA common error consists in identifying an organization with its executive staff/secretariat

Such a belief or attitude is used as an excuse by members not to assume their own responsibility

Legal and fiscal status of international organizations (three types of organizations)Legal status is determined by the form of creating the organization, which further determines mutual members relations and those relating to the country of headquarters

1. Intergovernmental organizations are established by means of an international agreement concluded between States, which is normally subject to ratification (national parliament, president)The original Statutes are normally deposited in the ministry of foreign affairs of the country of headquartersThe budget is financed by members contributions (taxpayer money)External audit of the organizations finance is exercised by elected Members representatives (auditors)Executive secretariat staff enjoys diplomatic status accorded by the country of headquartersNational representatives to the organization are often also diplomats (e.g. national ambassadors to the country of origin)The organization (secretariat, staff) is exempted from taxes in the country of headquarters (VAT, PIT)

Legal and fiscal status of international organizations (2)2. Non-governmental organizations are established on the basis of the national law of the country of headquartersRegistration in the ministry of interior

Are exempt from taxes if non-profit (does not concern staff)

The budget is financed by members contributions; civil society organizations also by donatives

3. Economic organizations (companies, corporations) are inscribed in the national register on the basis of the public commercial law The pay taxes (or otherwise they enjoy tax exemptions on the case-by-case basis)

Members participation in the activities of an organization comparisons between economic and non- economic (non-profit) organizationsIntergovernmental, Non-profitInterests of members and executive staff

Political interest groups

Seeking the greatest common factor

Distance from members staff and its stability/continuity

Participation of members and (their) experts in formulating strategies and work programmes

Using the organization for political (PR) purposes in member countriesEconomicInterests of shareholders (owners) and board of directors

Controlling block of shares

Brand product, new products

Relations between headquarters and affiliates

Relations between the owners, management and brand corporation

Product satisfies personal ambitions and interests of owners (profit, prestige, image, social recognition in the sector concerned and position on the marketplace)

Quality and effectiveness of organizationsHow to measure it?

The degree of meeting the needs of members and actual impact on the reality (state of the matter)

An organization is not a simple summary of all its members and the secretariat (machinery), but an expected value-added synergy as a result of collaboration

An organization needs to create its own product and a new value

An economic organization needs to generate a positive financial output (perhaps also CSR effects for a good image and/or long-term sustainability)

Factors determining the quality and effectiveness of an (international organizations)Management/leadership politically effective, substantially knowledgeable and politically engagedTactful and tactic management/leadershipManagement respecting the statutes and regulations

Organization of work distribution of tasks among executive staff, reasonable distribution of duties among staff

Quality of work (competence, skill, empowerment and engagement) of:Collaborating national structures and staffThe secretariat staff

Factors determining the quality and effectiveness of an (international organizations) (2)The degree of political engagement of members

Existence of informed and continuously verified and monitored strategies of organizations and the identification of measures to these effects

(Secretariat) Transparency allowing members and external/civil society control and monitoringUp-to-date substantial information on the internetAccess to and timeliness of (working) documentsEstablished, publicly-known and monitored procedures of decision takingAccountability on statements & deliverables (including by management)

Management in international organizationsOrganizations are perceived in relation to the personality/charisma of their leadership (e.g. secretary-general)

(internal, external) Political criteria (political power) prevail over competence criteria in selecting persons to leadership positions

Political drops-off, second-rank and career officials prevail in a selection process in intergovernmental organizationsPoliticians prefer careers at national level

National procedures to select a competent candidate are lacking

Management in international organizations (2)Mainstream media, as a rule, do not keep track of nor pay attention to the leaders of international organizations (including tourism organizations), nevertheless the leaders (and their respective organizations) are recognized and considered by the professional media on an ad hoc basis

The situation may change once the organization acquires more importance and competence in point in matters affecting media perceptions and awareness of citizens/consumers (example: International Monetary Fund)

The situation is similar to that of international corporations their CEOs are hardly known to the public at large (although their names are not secret)

Strategies of organizations from the secretariat perspectiveAlliances with other organizations

Investment in the quality of their own staff

Dialogue/close contact/continuous consultation with members

Optimum use of resources (human, financial, members expertise)

Co-responsibility

De-centralization of tasks

Centralization in the process of decision taking

Competing with other organizations

Strategies, tactics and practices of the secretariat not always praiseworthy(with ignorant, indifferent, complacent members)Wait-and-see (no reaction)

Media noise over trifle

Non-engagement (not to antagonize the powerful, sponsors or individual members)

Forward flight (abandoning unsolved issues/no follow-up and picking up new fashionable items)

Celebrating the inner circle

Private niche

Appropriation of the organization

Strategies of international organizations form the members perspectiveThe founding principle: organizations are called into being in response to real (perceived) needs whose satisfaction requires international cooperation

Their creation is an expression of political will of initiators and implies power sharing

It could also be a way to obtain recognition and dominance position of the initiator of cooperation and organization

Quite often the creation of an organization is used as an institutional platform or formula of an organized debate or negotiations. Organizations get off the train at the stop of organizing conferences and exchange of experience

Strategies of international organizations form the members perspective (2)Lack of progress encourages to convene new parallel institutions (substitutes) and regroup (e.g. G20 in addition to UNO)

Intergovernmental organizations not necessarily engage governments

The most effective method of engaging states through their governments is getting in place an international legally binding document (e.g. convention) of which the organization is caretaker

Audit and evaluation. Formal quality assuranceAuditing bodies to be found in the structures of the organization and its machinerySome organizations have enacted their own ethical codes (e.g. ISO)Internal control

External control second and third party

Non-economic organizations should be subject to auditing in the first place

Economic organizations (companies, corporations) are verified in the marketplace

Audit and evaluation. Formal quality assurance (2)Typical measures of success (of some organizations)

Number of membersNumber of conference participantsConsideration by governments

Conflicts between the interests of the organization and the corporate interest of the machinery

Audit and evaluation. Formal quality assurance (3)Each organization in particular an international one should be evaluated by a third party, including by quality assurance schemes (e.g. ISO 9001:2010). Another method is to go by Capacity Assessment

Nevertheless, intergovernmental organizations less readily render to evaluation

Blurring of interests, interests overlapping between members of the secretariats and members representatives

Barriers of political criteria, requirements of political correctness

Confidentiality and secret (oath) to be observed by the staff members

Staff privileges, exemption of diplomatic staff from national jurisdiction

Various methods of capacity assessmentSWOT analysisInternal factors - current, subjective(s) strengths; (w) weaknessesExternal factors: future, objective(o) opportunities; (t) threats

Techniques from the private sectorE.g. Five s (Toyota)

Five-step Toyota system(kaizen as a road to quality)Sort/Set in order: Sort out unneeded items

Straighten up: Have a place for everything

Shine: Keep the area clean Standardize: Create rules and standard operating procedures Sustain: Maintain the system and continue to improve it Five times S

An audit system of the United Nations and its specialized agenciesHeadquarters of the United Nations Joint Inspection Unit

An audit system of the United Nations and its specialized agenciesCarried out by the Joint Inspection Unit headquartered in Geneva (United Nations European Office and UNCTAD)

the only independent external oversight body of the United Nations system mandated to conduct evaluations, inspections and investigations system-wide

The latest report: (Review of the Strategic planning in the United Nations System -(JIU/REP/2012/12)

First UNWTO report published in 2009 (https://www.unjiu.org/en/reports-notes/JIU%20Products/JIU_REP_2009_1_English.pdf)

The media hardly pay attention to the JIU reporting

End of Part 1 (ITO)

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