Stakeholders in tourism. This is a phrase often used in both academia and the tourism industry, but what does it actually mean?
The word stakeholder is a term that often throws people. In fact, it is commonly confused with the term shareholder. Whilst the two terms are not entirely dissimilar, they mean different things. So what exactly is meant by stakeholders in tourism?
Stakeholders in tourism: What does it mean?
This article explains what is meant by the term stakeholder, the theory behind it and who the main stakeholders in tourism are.
A stakeholder is quite literally anyone who is involved with a particular project, organisation or industry. To put it simply, they hold a metaphorical ‘stake’.
A stakeholder in tourism can be an individual person, such as a tourist or a taxi driver. They could be a group of people such as a student group or a family. They could be a company or organisation.
A stakeholder is different from a shareholder. A stakeholder is a person, group or organisation who is in some way involved with a project. Whereas a shareholder is a person, group or organisation who owns part of the project (i.e. a share).
Therefore a stakeholder and a shareholder are two different things.
As such, when we refer to a stakeholder in tourism, this does not necessarily mean somebody who is financially involved. Stakeholders could have a wide range of involvements, that are not necessarily related to ownership or money.
Stakeholder Theory in tourism
Stakeholder Theory is all about the way in which stakeholders should be taken into account when making business decisions.
Most of the world nowadays is built upon a capitalist society, within which there is a complex web of interconnected stakeholders. From customers through to suppliers, employees, investors and local communities, it is important that their needs and desires are taken into account in order to yield optimal results.
As such, Stakeholder Theory presupposes that an organisation should take into account and create value for all stakeholders when undertaking their planning and operational activities.
Stakeholder Theory was first introduced by R. Edward Freeman in his 1984 book Strategic Management: A Stakeholder Approach. Since this time businesses and organisations in a range of industries throughout the world have used Freeman’s ideas in their operational plans.
Stakeholder Theory has become a key consideration in the research of business ethics and has served as a platform for further research and development in the area.
Stakeholder analysis in tourism
In order to ensure that a business, whether in tourism or in another industry, is effectively considering stakeholders needs and requirements, the organisation must carry out some form of stakeholder analysis.
Stakeholder analysis is a process whereby key stakeholders are identified and grouped according to levels of participation, interest and influence. The organisation must then determine how best to work with and satisfy said stakeholders.
In the context of tourism this could involve considering how best to work with the host community or working with the Government on tax policies, for example. Or it could involve investigating what products would be most popular with the tourists and what working conditions must be provided to yield the best outcomes from company employees.
To put it simply, stakeholder analysis is a complex task where each person, group or individual must be assessed in terms of their value to the organisation and what their needs and requirements are.
Theoretically then, if the organisation operates with all of its stakeholders’ needs and requirements in mind, they are more likely to satisfy stakeholders and therefore to conduct successful business operations.
Who are the stakeholders in tourism?
The tourism industry is one of the biggest industries in the world. This means that there are many individuals, groups and organisations who are involved at some level or another.
As demonstrated in the diagram above, there are a number of key stakeholders who are commonly involved with the tourism industry. Through his work on stakeholders in tourism, Peter Burns classified stakeholders according to the type of engagement that they have: External, secondary or primary. This is demonstrated below.
The typical involvement of each of these stakeholders is outlined below.
Government
The government plays a key role in the tourism industry. Throughout the different levels of tourism policy and planning, the Government will dictate a variety of rules, requirements and practices.
From visa policies to the maintenance of public infrastructure, most tourism businesses operate closely with government.
Tourism organisations and operators
There are a wide range of tourism organisations and operators.
From travel agents and airlines through to DMOs (Destination Management Organisations) and travel bloggers and influencers, to restaurants, hotels and tourist attractions, all of these organisations are key players in the tourism industry.
Small and medium enterprises
There are a wide range of businesses that are seen as stakeholders in tourism.
These may be directly associated with travel and tourism, such as an airline.
They may also be indirectly associated with tourism, such as a waste removal company (who deals with the waste created by tourism).
NGOs
There are also many NGOs (non-governmental organisations) that are associated with the tourism industry.
These might include charities or non-profit organisations. Examples include the Tourism Society and The Travel Foundation.
Tourists
Tourists are at the very heart of the tourism industry. Without tourists there would be no tourism!
Suppliers
The tourism industry relies on a wide range of suppliers.
From factories producing bedding used in hotels, to farmers growing the vegetables served in restaurants, there are many suppliers who work either directly or indirectly with the tourism industry.
Employees
One of the key stakeholders in tourism is the workforce.
According to the World Travel & Tourism Council, travel and tourism supported around 357 million jobs worldwide in 2024 – roughly one in every ten jobs (see the guide to the economic impacts of tourism for more details).
Many employees in the tourism industry work in relatively low-paid jobs in areas such as hospitality, catering and customer service, although the industry also offers many skilled and professional careers.
Education
The education sector is also a stakeholder in tourism.
Many educational courses will involve visits to tourism areas to enhance the educational provision offered. For example a school history trip to the D-Day beaches in France.
Education is also offered to many employees who work in the tourism industry in the form of training.
Utilities and infrastructure
In order for the tourism industry to function, certain utilities and infrastructure are required.
This means that the local power plant is a stakeholder in tourism, because it provides energy.
It also means that the builders, road workers and engineers are stakeholders in tourism, because they provide and maintain the necessary infrastructure.
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Transport
There is a strong relationship between transport and tourism.
In fact, the very definition of tourism, prescribes that a person must travel away from the place that they live in order to be a tourist (although the growth of virtual tourism has led some to argue that this widely used definition should be revisited).
As such, the method of transport between point A and point B is an integral part of the tourism system, thus making the transport providers (airlines, trains, taxi etc) important stakeholders in tourism.
Communities
The final stakeholder in tourism that is worth mentioning is the community. In fact, many would argue that this is one of the most important stakeholders in tourism.
The guide to the social impacts of tourism, explains how important it is for tourism organisations to work with the local community and what the consequences can be if tourism operators do not listen to the needs and requirements of the host community.
Good tourism management often involves community-level briefings, consultations and ongoing communication in order to ensure that this important stakeholder is empowered throughout the process of tourism development planning and operation.
Video: Who are the stakeholders in tourism?
Stakeholders in tourism: Conclusion
This article has explained what is meant by the term stakeholders in tourism, along with the concepts of stakeholder theory and stakeholder analysis. There are many stakeholders in tourism, from governments, businesses and employees to tourists and local communities, and successful and sustainable tourism depends on balancing their different needs and interests.
Stakeholders in tourism: FAQs
Below are answers to some of the most common questions about stakeholders in tourism.
What is a stakeholder in tourism?
A stakeholder in tourism is any person, group or organisation that is involved in, affected by or has an interest in tourism, such as tourists, local residents, businesses, employees and governments.
Who are the main stakeholders in tourism?
The main stakeholders in tourism include tourists, local communities, governments, tourism businesses and operators, small and medium enterprises, employees, suppliers, NGOs, transport providers and the education sector.
What is the difference between a stakeholder and a shareholder?
A stakeholder is anyone involved in or affected by an organisation or project, while a shareholder is someone who owns a share of a company.
Why are stakeholders important in tourism?
Stakeholders are important because tourism affects many different groups. Involving them in planning and decision-making helps to balance economic, social and environmental interests and supports sustainable tourism.
What is stakeholder analysis in tourism?
Stakeholder analysis is the process of identifying the stakeholders in a tourism project or organisation, assessing their interest and influence, and deciding how best to engage with them.
Stakeholders in tourism: Further reading
If you found this article on stakeholders in tourism useful, these articles may also be of interest:
- Stakeholder theory and stakeholder analysis: A simple explanation
- Shareholder theory: A simple explanation
- 150 types of tourism! The ultimate tourism glossary
- Leiper’s Tourism System: A simple explanation
- 21 Types of Tourists Around The World
