Make Tourism FAIR FAIRTRADE in the Hotel, Restaurant and Catering (HORECA) Industry. A Presentation by Nicole Rudy, FAIRTRADE Austria

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1 Make Tourism FAIR FAIRTRADE in the Hotel, Restaurant and Catering (HORECA) Industry A Presentation by Nicole Rudy, FAIRTRADE Austria

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3 Poverty and its Consequences 1/5 of the world population live on less than $1 / day Every 2nd person on less than $2 / day Every day 24,000 people die of hunger The number of immigrants and refugees is rapidly increasing, especially that of people with African origin

4 Take Coffee for Example One of the world market s most important commodities E.g. Ethiopia Basis of life for more than 100 million people About $80 billion worth of retail sales in consumer countries But: Only very low export earnings for producing countries Source: Human Development Report 2005, FAO

5 The FAIRTRADE Vision FAIRTRADE s international umbrella is the Fairtrade Labelling Organisations International (FLO ), an internationally recognised, multistakeholder, non-profit organization, focusing on the empowerment of people in developing countries through trade. Its global team works to directly connect producers and consumers and promote fairer trading conditions and sustainability. Our Vision: To combat poverty through trade and create a world in which all producers can enjoy secure and sustainable livelihoods, fulfill their potential and decide on their future.

6 The FAIRTRADE Mission FAIRTRADE aims to combat poverty through trade FAIRTRADE is a market-based approach to supporting development and empowering producers in the Global South who are disadvantaged through unequal trade conditions FAIRTRADE s equitable approach to trade is based on a partnership between producers and consumers.

7 The FAIRTRADE Certification System FLO-CERT, the independent certification body for Fairtrade, is ISO 65 accredited. (ISO 65 = is the leading internationally accepted norm for certification bodies operating a product certification system) FLO-CERT certifies producers, traders and licensees. It audits the implementation of the FAIRTRADE Standards at each step of the commercial supply chain When Standards have been met, the resulting consumer product may be licensed by a National Fairtrade Initiative to use the FAIRTRADE Certification Mark Certification FLO-CERT Labelling Initiatives Production Chain Producer Trader Licensee Distributor Consumer Fairtrade Services FLO e.v. Producer support Standard setting Labelling Initiatives Licensing Promotion

8 FAIRTRADE Standards at a Glance Pre-financing (access to credit in advance of the sale Contracts: long-term, stable contracts with buyers) Labour rights (core International Labour Organization conventions, including no bonded or illegal child labour, health and safety, freedom of association and collective bargaining, no discrimination) Environment (protection of sensitive natural areas, no prohibited pesticides, safe handling of pesticides and waste, no genetically modified products) Democracy (for small farmer organizations, all members have a say in decision-making. For plantations, workers decide on FAIRTRADE Premium use) Please note: Full Fairtrade standards available at

9 The FAIRTRADE Fair Price Consulting with producers and businesses around the world, FAIRTRADE calculates a floor price, which serves as a safety net against excessive market fluctuations. The stability provided by the assurance of a fair price enables producers to make longer-term investment decisions and to enhance their credit worthiness.

10 The FAIRTRADE Minimum Price as a Safety Net For detailed information on FAIRTRADE minimum prices for all products see

11 The FAIRTRADE Premium On top of the price received for crops, producer organisations are paid Fairtrade Premium funds to invest in social or economic development projects. Decisions on how to use the funds are made democratically by the farmers and workers involved.

12 Usage of the FAIRTRADE Premium Education Infrastructure Health Housing

13 in Mio. Euros International Development 827 Fairtrade farmer and worker organizations in about 60 countries, about 1.2 million individual farmers and workers = more than 7.5 Mio people (farmers, workers and their families) Development of Global FAIRTRADE Retail sales: about 3.4 billion euros = + 15% (on 2008) Fairtrade sales estimated retail value

14 Umsatz 2009 pro Einwohner pro Jahr in Per-Capita FAIRTRADE Sales 2009 in Selected Countries Switzerland United Kingdom** Finland Denmark Austria Norway Sweden Ireland Netherlands Belgium Canada France Germany USA Italy Quelle: FAIRTRADE Lizenzstatistik 09

15 Development of FAIRTRADE Retail Sales in Austria Umsatzentwicklung im Österreichischen Einzelhandel (in Mio ) * Quelle: Fairtrade Lizenzstatistik *Estimate

16 High Level of Consumer Familiarity and Trust By Country, 2008 Only British consumers are more likely than Austrians to have seen the FT label.

17 Perceived Consumer Benefits of FAIRTRADE Products Unprompted, Combined Mentions, Austria, country average is 11 percent 15-country average is 16 percent 15-country average is 10 percent One in five Austrian FT purchasers are unable to specify any benefits, more than in any other country surveyed. Austrians are more likely to name personal benefits to them (e.g. high quality of products) over benefits to society. Subsample: Those who say they purchase at least one FT product Rarely or more often at Q11 (n=790). Note: Benefits mentioned by less than 2% of respondents are not included in the chart.

18 Where Consumers Want to Buy FAIRTRADE Products im Kaffeehaus/am Buffet in Restaurants/Hotels in der Bäckerei am Arbeitsplatz in der Kantine keine Angabe Source: Gfk-Studie 2007

19 Products for Business Customers Coffee Sugar Tea Bananas Beverages Rice Cocoa Flowers Icecream Cotton

20 Be in Good Company - with FAIRTRADE Dealing responsibly with our customers and suppliers is a matter of course for us. For me, FAIRTRADE is the best way to implement this philosophy. Heinz Reitbauer, CEO Restaurant Steirereck "This long-term commitment will not only benefit our farmers, but will give our customers the assurance that the coffee they're buying in Starbucks in the form of espresso-based beverages is at a price that will allow sustainability for those people who need it most. Howard Schultz, CEO and Chairman Starbucks Luxury and sustainability are no longer mutually exclusive. Our customers awareness of social and environmental issues is growing and we regard it as our duty to keep abreast with them. Dir. Gerald R. Krischek,CEO Hotel Goldener Hirsch Salzburg Luxury Collection Hotel

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22 Contact Please feel free to contact us anytime: Gertraud Akgün-Krenn Phone: (01) Ext. 13 Barbara Weinmann Phone: (01) Ext. 19

23 THANK YOU!!! Questions?