DAM792 - Air New Zealand: A Report on Tourism & Sustainability

This report examines Air New Zealand's approach to sustainable tourism management, highlighting the company's commitment to environmental, social, and economic development within New Zealand's tourism sector. It reviews the role of sustainability in tourism, emphasizing the New Zealand Tourism Sustainability Commitment and its four key pillars: economic, visitor, host community, and environmental commitments. The report critically evaluates sustainability approaches, discussing the integration of sustainability into business practices and addressing barriers such as economic priorities and a lack of momentum in taking action. It also explores Air New Zealand's sustainable practices, including its sustainability framework aligned with the United Nations Sustainable Development Goals, economic commitment, and initiatives like fuel efficiency, waste management, and ecological restoration. The report concludes with recommendations for Air New Zealand to further enhance its sustainability efforts by supporting local underdeveloped regions, improving transportation infrastructure, increasing customer base, and educating the public about the importance of sustainability in tourism.

Running Head: Tourism Management
New Zealand Tourism Management
Report
System04104
8/3/2019

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Executive Summary
Sustainability in tourism industry is the need of modern time because people
destroying the natural resources for the growth and development in the tourism sector and
avoid its consequences. Devastation of natural resources is the serious concern for the whole
world because the rapid destruction of natural resource adversely affects our environment and
creates problems for our next generation. In such a tough scenario, the popular Airways
Company of New Zealand has taken some crucial steps towards the sustainable development
in the tourism industry. The company shows its commitment towards the nature and focuses
on sustainable business practices even in the era of tough competition in the aviation
industry.
The literature review shows the various opinions of authors about the role of
sustainable development. However, it has been found that the short-term economic interest of
business organisation adversely affects the sustainable approach of the business organisation.
The business organisation wants to earn more and more profit in short duration and ignore the
sustainability approach in the business. While the government and political party also wants
to create more jobs and employment opportunities for people because of the short political
duration and avoid the environmental and social sustainability goals.
Air New Zealand focuses on increasing its fuel efficiency, waste management,
ecological restoration, carbon reduction, and providing support to the local business
organisations and underdeveloped regions. These initiatives of the company help to attract
more and more visitors towards the New Zealand tourism. However, the company is lacking
somewhere such as it needs to educate people about the protection of natural resources and
environment. The company is also lacking in increasing its fuel efficiency level at the
expected level, and cannot spend too much money on the sustainable development approach.
It is recommended to Air New Zealand to focus on supporting the local underdeveloped
regions for the sustainable development in tourism industry and improve the transportation
and infrastructure facilities in the country. Apart from this, the company must increase its
number of customers so it can increase its profit and can invest more money on sustainability.
The company should also work on waste management and carbon reduction and educate the
people about the role of sustainability in future development of tourism sector.

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1. Overview about ‘Air New Zealand (ANZ)’
Air New Zealand is a global airways company of New Zealand. Air New Zealand is
known for providing services related to passengers and cargo services. Air New Zealand is
serving more than 17 million passengers every year. This airways company was established
in 1940 when its forerunner airline company Teasman Empire Airways Limited (TEAL) was
incorporated. However, the company started its airways operation in 1935. This company is
also Alliance of Star Alliance. The Headquarter of the company is established in Auckland.
The company operates its business in 19 countries including 20 domestic and more than 30
international destinations. The Air New Zealand currently operated more than 3400 flights on
average, each week. Primarily the company operates its business in Pacific Rim. The
company has more than 12500 employees and 115 aircraft including Boeing Jet Aircrafts
(Air New Zealand, 2019).
The company promised to “connect New Zealanders with each other and New Zealand
with the whole world through a liberating travel experience” (Air New Zealand, 2019).
However, the objective of ANZ is to “create a world-class organisation by delivering cultural,
customer, and commercial excellence” (Air New Zealand, 2019).
Company is known for its quality airways services and sustainable practices. Air New
Zealand provides travelling facilities to the customers and tourists who want to visit in New
Zealand. Apart from this company is also known for its sustainable business practices and
won various awards for its sustainability approach. The company also offers so many trip
ideas on their portal to attract people for the New Zealand tourism (Air New Zealand, 2019).
2. Literature Review
As more and more countries are focusing on travel and tourism industry, the destruction
of natural resources is also increasing because tourism is directly related with our natural
resources. Tourism has significant effects on natural resource and its consumption pattern. It
also leads to the pollution and social systems (Klein, 2011). Therefore, the need of
sustainable approach and proper planning is required from different countries and from the
tourism service providers to protect the world and the natural resources.

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2.1 Role of Sustainability in Tourism
The number of tourists is increasing globally with rapid speed. In 1950, there were 25
million people globally. The number of tourists is 527 million in 1995, and 1.32 billion in
2017. This number is expected to rise up to 1.8 billion by 2030 (Lohmann & Pearce, 2018).
The increasing number of tourists not only affects the natural resources rather it forces the
government of many countries to destroy the natural resources for the benefit and growth of
tourism sector. The focus on tourism sector not only affects the natural resources, it also
affects the wildlife, and habitat impacts, affect the water purity, and also affect the climate
and atmosphere in all over the world. Therefore, sustainability play an important role in
protecting the natural resources and intact our natural environment as pure as it was earlier.
The sustainable approach of different countries leads to protection of our natural resources
and helps to intact these resources for the long time period.
2.2 Sustainability Initiatives of the New Zealand Tourism Sustainability
Commitment
The New Zealand Tourism Sustainability Commitment aims to see that every tourism
organisation of the New Zealand adopted the sustainability approach by 2025. The main
vision of it is to ensure that every country of the world will practice sustainable approach and
protect the natural resources for the world and for our next generation. To achieve the goal
the New Zealand Tourism Sustainability Commitment aims set four economic goals that help
the country to achieve the suitability in tourism sector (Choi & Murray, 2010).
The four key tourism sustainability commitment of New Zealand are as follow:
1. Economic Commitment: The main aim of this commitment is to encourage the
organisations for sustainable approach and long-time financial performance. Those
organisations, which are financially strong, are required to grasp the opportunities by other
elements of sustainability.
2. Visitor Commitment: Create add value in tourism so the visitors can get better
experience of tourism in the country. It also focuses on meeting the expectations of visitors.
3. Host Community Commitment: Welcome of tourists and local support from the
community is the key in tourism. The sustainable businesses have to find the social licence to
operate the tourism business in the community and they must provide better care and support
to the visitors (Maheshwari, Vandewalle & Bamber, 2011).

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4. Environmental commitment: The tourism organisation should care about the natural
resources and our natural environment on which the whole tourism business is depends. This
commitment helps to ensure the interest of our future generations for natural resources and
environment (Weaver, 2011).
The main aim of these key commitments is to promote the initiatives for protection of
natural resources and environment and continue to be a high-class destination for the tourists
and international travellers.
2.3 Critical Evaluation of Sustainability Approaches
The vision of the sustainability commitment goals of the New Zealand is to “leading the
world in sustainable tourism’. The success of these commitment goals depends on the
positive approach of all the countries and tourism partner organisations. The sustainability
approach not only helps the country to protect the natural resources rather it also helps the
country to gain maximum profits from this tourism industry without affecting the natural
resources. The 14 commitments in New Zealand sustainability goals are the key approach for
ensuring sustainable development in the country. The key thing behind sustainability
approach is that it requires the involvement of both government and tourism organisations to
ensure the success and the success requires that all come on board as endorsers. However, the
whole world is now focusing on sustainability in tourism industry because only sustainable
approach can mitigate the risk in this industry and may stop to impede the future wellbeing of
our next generation (Yu, Chancellor & Cole, 2011).
2.4 Integration of Sustainability to Business Practices
The sustainable business practices in tourism industry faces many barriers. However,
there are so many benefits of practicing sustainable practices in the tourism industry. The two
major benefits of practicing sustainability approach in the tourism business or as follow:
1. Increase Profitability: Using sustainable approach in tourism business may hike the
profits of the organisations. Using sustainability approach not only helps to attract
large number of customers rather it also focuses on building infrastructure and
improve the residence facilities for the visitors. This development in the tourism area
helps to increase the number of customers and which further leads to increase in profit
of the tourism business organisations (Rundle-Thiele & Wymer, 2010).

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2. Protection of Natural Resources and Environment: The sustainable approach helps
to protect the natural resources and the natural environment. This will improve the life
style of people and give them a healthy future. However, nature is directly related
with the success and failure of tourism industry because if people will not care about
the nature, it will definitely affect the whole tourism business in any region.
The two key barriers or complexities are as follow that affect the implementation of
sustainability approach in the business organisations:
1. Economic Priority: The major barrier in adoption of sustainable approach for the
business organisation is related to economic priority over the environmental or social
concern. This barrier also shows the short-term focus of government and business
organisations both. The business organisation where want to earn more and more
profit in short duration and ignore the sustainability approach in the business. While
the government and political party want to create more jobs and employment
opportunities for people because of the short political duration (Miller, Rathouse,
Scarles, Holmes & Tribe, 2010).
2. Lack of momentum in taking actions concerning to the sustainability: Most of the
business organisation ignore the sustainability initiatives. They do not focus on
natural resources of protecting the natural environment rather they are focusing on
building bar and hotels, dive operators, restaurants, and other accommodations
facilities so they can earn more profit from the business. Even the lose caring nature
of business organisations towards the natural resources and unethical practices are the
major concern for implementing the sustainability approach in the tourism business
organisations (Buckley, 2012).
3. Sustainable Practices of Air New Zealand
ANZ have a faith that success of the organisation is directly connected with the success of
the country. If New Zealand will progress and develop Air New Zealand will develop and
grow. Similarly, the successful New Zealand requires a thrashing and successful ANZ. The
ANZ also focuses on overall development of New Zealand and is committed to ensure
economic, social, and environmental development of the country (Keen, 2013).
The company has its own sustainability framework that guides the company to go beyond
their sustainability goals and ensure success of the country’s sustainable approach and

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programs. The Sustainable framework of the company is aligned with the United Nation’s
Sustainable Development Goals (SDGs). However, the company also dedicated to the
sustainable commitment of New Zealand and focuses on creating more sustainable and better
future for all the people. The company has its own advisory panel on sustainable goals that
guides the company about appropriate actions which are required to fulfil all the sustainably
goal’s requirements. The advisory panel has a group of subject matter experts who advices
the company about all aspects of sustainability journey. However, the company is committed
to oblige the sustainable goals commitments of New Zealand and its operations follow all the
sustainable approaches in the business operation (Cohen & Higham, 2011).
3.1 Economic Commitment
The sustainability goals of the financially strong company are to hold the chances
provided by other sustainability factors or elements (Howitt, Revol, Smith & Rodger, 2010).
Air New Zealand is one of the financially strong companies and has capabilities of spending
money for the sustainable business development. Tourism industry is responsible to generate
employment and prosperity in the local community in the New Zealand. However, the
economic commitments of the company are as follow:
1. Sustainable Businesses
The company is focusing on long-term financial performance and want to increase its
passengers from 17 million to 20 million by 2025. The company wants to enhance its
business by employee engagement programs, giving better experience to customers, provide
security for people, and community involvement in the business (Hopkins, Campbell‐Hunt,
Carter, Higham & Rosin, 2015).
2. Capital Investment
The company is investing so much money for improving the better fuel efficiency so the
environment can be less harmed with poisonous gases. The company is getting average 2.4%
average annual aviation fuel efficiency and it helps in reducing the consumption of natural
resource and also helps in reducing the pollution level. Company invest money on electronic
equipment and machinery up-gradation that will decrease the electricity uses of the company
up to 4.5% (Day & Cai, 2012).

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3. Productivity
Air New Zealand spends huge money on tourism advertising and urging people to visit in
New Zealand and see the beauty of its nature. It will help the organisation to ensure greater
productivity even in lean season and it increases the productivity of the organisation. To
mitigate the adverse seasonal effect on tourism sector, the company also launches various
offers to customers. The company offers tourism packages in low cost for the international
visitors in lean season (Becken & Schiff, 2011).
3.2 Visitors Commitment
Visitor’s commitment refers to meeting the visitor’s expectation and added value in the
services. The Air New Zealand provides best travelling experience on affordable prices to
both domestic and international visitors so they can experience the best services in the Air
New Zealand (Weaver, 2010).
1. Visitors Information
The Air New Zealand collects the information regarding its customers and visitors so they
cannot face any challenges or issue during their travel. The company also provide all the
facilities to the customer based on the information so the visitors experience is enhanced and
negative impact can easily be reduced.
2. Product and Market Development
Air New Zealand generally operates its business in London and some of the European
countries. Apart from this, it also operates its business in Pacific Islands, USA, Africa, and in
some countries of Asia. However, the Air New Zealand is looking to expand its business and
want to attract the Asian visitors in the country especially from South East Asia. Air New
Zealand operates its business only in 20 countries and to achieve the sustainable growth in
tourism, it must be looking for enhancing the number of flights in Asian countries such as
China and India where more than 3.5 billion people are living (Bramwell & Lane, 2011).
3. Visitor Engagement
Air New Zealand is providing best travelling experiences to the visitors. Every traveller
experiences the best services of this company and wants to come New Zealand again and
again. The good image of the company involves the customers in routine travelling to the
country and it will also help the country to increase its revenue from the tourism sector.

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3.3 Host Community commitment
The welcoming support and cooperation of local community is the key in the tourism
sector. The employee of the New Zealand also believes in such practices that improve the
reputation of New Zealand and provide best experience to the visitors.
1. Sustainable Employment
Air New Zealand enhances the number of employees in the flights and in the ground staff
members. Currently there are more than 12000 employees are working with Air New
Zealand. The main objective and goal of these employees is to provide best travelling
services to the visitors so they can get better experience of tourism and travelling in Air New
Zealand (Gössling, Scott, & Hall, 2013).
2. Quality employment
People who are working with in different flights or assisting people are well educated and
behave in cultural and ethical ways with the visitors. This shows the commitment of the
company towards the people and avoids any negative impact of the country on the travellers.
The Air New Zealand also provides regular training and support to the employees so they can
provide best services and best welcome to the customers (Baum, Cheung, Kong, Kralj,
Mooney, Ramachandran, & Siow, 2016).
3. Community engagement
The role of community is also important in the sustainable tourism development. The Air
New Zealand is one of the responsible companies in the New Zealand and it involves the
community in its decision making regarding sustainability actions. The Air New Zealand
engages its community in its sustainability approach. The company encourages the local
community people about the benefits of natural resources and their required support in the
sustainable tourism development. The company also focuses on sustainable approach and
benefits.
4. Sustainable Supply chains
Air New Zealand is using latest technology and equipment for its business organisation.
Under this commitment, business organisation have socially and environmentally sustainable
supply chains that help the organisation to decrease the emission rate and electricity
consumption which are responsible for pollution and destruction of natural resources and
environment (Fortanier & Van Wijk, 2010).

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3.4 Environmental Commitment
The environmental commitment shows the responsibility of organisation towards the
natural resources and natural environment. It shows the commitment of the organisation
towards those actions, which are required to protect the environment. The environmental
commitment is required for the benefit of future generation and for their interest (Duval,
2013).
1. Ecological Restoration
The Air New Zealand is taking part in the ecological restoration initiatives. It mainly aims
to use those equipment and technique, which are necessary to protect the natural resources
and our environment. It also focuses on saving energy and fuel consumption and increases its
fuel efficiency every year. The company is also moving away from the single use of plastic
packages or any products that raped in plastic (Gössling & Buckley, 2016).
2. Carbon Reduction
The Air New Zealand Company every year encourages its customers to voluntary balance
the carbon emanation from the air travel. The organisation also removes the use of plastics in
the flights and aims to save fuel every year in the flights. The company is also trying to use
those jets and engines, which are capable in consuming less fuel (Castellani & Sala, 2010).
3. Waste Management
Waste management is always a key issue for the airline companies. Air New Zealand
catering partner LSG Sky Chefs and Ministry for Primary Industry to tackle the inflight waste
management. The company is running Project Green in the international fleet. However,
under this initiative the company removed 13 tonnes of waste, including 3.5 tonnes of bottled
water, 480kg sugar packets, and 266000 plastic cups. This program has been developed over
18 months and it helps the organisation in waste management (Hall, Scott & Gössling, 2016).
4. Education
The Air New Zealand educates and aware the tourists and visitors about the benefits of
environmental protection program. The company also helps the visitors about the care and
protection of natural environment and about their responsibilities towards the nature.
Education plays an important role in determining the sustainable development of the
organisation and sustainable development of tourism industry as well in the country (Mair,
2011).

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4. Recommendations
Attaining sustainable development in the tourism development is highly important for the
Air New Zealand. This will not only helps to conserve the natural resources rather it also
ensures a great future for the next generation. The requirement of natural resources to our
next generation is as crucial as for the current generation. Therefore, taking proper steps and
actions are necessary for any organisation. However, Air New Zealand follow the UN’s SDG
goals as a framework for the sustainable programs but company should also focuses on some
key initiative which are required to protect the natural environment and stop the degradation
of natural resources. On the basis of above study, the following recommendations can be
given to the Air New Zealand for the sustainable development in the tourist industry:
1. The organisation should look for the long-term profit rather than short term economic
benefits from the sustainable approach. It is found that Air New Zealand use the
short-term approach to achieve the sustainable goals and focus on the economic
benefits. However, the company can also buy the latest technology fleets so it can
increase the fuel efficiency.
2. The organisation should also focuses on attracting visitors towards the beauty of New
Zealand. It will be better if the organisation advertise the New Zealand tourism and its
beauty to the people all around the world. It will increase the revenue of the company
so the company can use more money on the sustainable approach and its sustainable
goals.
3. The company should support the less developed regions such as investment in
infrastructure and transportation facilities for the visitors.
4. The company can also focuses on provide excellent inflight services to the
international and domestic visitors and tourists. It will attract more and more people
towards the New Zealand tourism. The company can also take the help of SMEs for
providing high quality standards in comfort and services through tourism
endorsements.
5. The company can also encourages the culture of co-operation in the community
members and ask them to welcome the international visitors as their guest and give
them support and love. Show them the culture of the organisation.
6. The company can develop an information system that will help to provide information
related to economic, social, and environmental tourism and role of sustainability in
this area. It will also help the people to educate about the role of sustainability in

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tourism industry and their responsibility towards the natural environment and natural
resources. The company can also help the local community to develop residence and
hotel facilities for the international visitors.
5. Conclusion
In conclusion, ANZ is looking for the development of sustainable tourism in the country
and believes that if the company will succeed then it will lead to the growth and development
of New Zealand. However, the Air New Zealand follows the UN’s SDG goals for the
sustainable development in the tourism industry and mainly focuses on waste management
and increase the efficiency of fuel consumption. However, the company should also follow
the small sustainability actions and approach such as educating the local people, provide
assistance to the underdeveloped regions, and take the help of SMEs to provide better
services to international visitors in the country. Air New Zealand should also work on
increasing the number of travellers in the New Zealand and should work on rapid
development of information and technology. The Air New Zealand should also ensure that
the visitor’s experience will be enhanced in the country and they will get best services from
the company. The ANZ should also educate and aware the local people that how they should
welcome the foreigners in the country. All though, sustainable development in tourism is not
a short-term goal rather every tourism organisation should work and committed to the New
Zealand Sustainable Tourism Commitment initiatives.

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