Harvard economist Michael Porter is most famous for his work on cluster theory. He argues that clusters benefit businesses in three ways: by increasing the productivity of companies through access to a local supply chain and a diverse pool of skilled labour; secondly, by encouraging innovation; and thirdly, by stimulating the formation of new businesses within the cluster.
Tourism destinations are clusters of accommodation, attractions, and activities, and the stronger the destination cluster, the more likely tourists are to stay longer, creating more significant economic benefits for local businesses and the community.
Porter and Kramer explained their “big idea” in a 2011 Huffington Post article, following the 2008 economic crisis. “We still lack an overall framework for guiding these efforts, and most companies remain stuck in a ‘social responsibility’ mind-set in which societal issues are at the periphery, not the core. The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the centre. We believe that it can give rise to the next major transformation of business thinking.”
The challenge is to create shared value by growing the cake and creating a vibrant cluster.
Malcos Sengwayo, Chairman of Piggs Peak Hotel, welcomed participants to the conference, endorsing Responsible Tourism and telling those present that “our team lives it every day … proud to be part of this growing movement” to make tourism better.
“The Responsible Tourism movement reminds us that tourism should not be something we build on top of communities—it must grow from within them” said the Honourable Minister of Tourism, Mrs Jane Mkhonta-Simelane, during the opening address. “Tourism must create value not only for visitors, but for the people who live, work, and raise families in our destinations. And that value must be felt in livelihoods, in dignity, and in opportunity.
The role of the monarchy and the preservation of our customs are not merely historical; they are a living part of who we are. And as we welcome visitors into our country, we must ensure that this heritage is honoured and protected—not commodified but shared with dignity and pride.
It is in that spirit that we come together today—not to talk about tourism as a commodity to be sold, but as a system that can uplift, connect, and reflect who we are as Emaswati. At Piggs Peak Hotel, new management and energy are combining with commitment and innovation from the local town council and surrounding community to share this great part of the Kingdom of Eswatini with travellers.”
The Honourable Minister of Finance, Mr Neal Rijkenberg, reminded us in his address of the strength of Eswatini’s distinctive culture and endorsed Responsible Tourism: “We don’t have the beaches. We don’t have the Kruger Parks. We don’t have those kinds of things. But what we do have is some unique things. We believe that we are the number one country in the world when it comes to preserving culture. I don’t think there’s another country in the world that takes its culture as seriously as Eswatini does. We don’t do it for tourism—we do it because it’s what we do as a nation, as a country. But for that reason, I believe there’s a strong tourism play that one can do around it, to be able to really make sure that the world understands and gets to see us better. Especially around responsible tourism discussions—it just really fits hand in glove with our strategy as a government. I’ve had a look at the Responsible Tourism Charter—it’s brilliant. It ticks all the boxes and makes us all benefit. I want to congratulate everyone who’s been working on that and all those bringing it into Eswatini to make sure we comply and feed into the responsible tourism network.
The Piggs Peak Hotel reported its contribution to the local economy:
In the financial year 2024–25, the hotel spent 819,077 Eswatini Emalangeni in the local economy, equivalent to USD 43,465. When the Piggs Peak Hotel is full and there is demand for additional beds, the hotel sources them locally, contributing 159,781 Emalangeni (USD 8,479) to other accommodation businesses. The hotel has increased its staffing to 100, contributing 8,324,375 Emalangeni (USD 441,742) to local households in 2023–24.
In total, Piggs Peak Hotel contributed USD 485,207 in shared value to the local economy. The total shared value created is even greater when accounting for local spending by tour operators and individual tourists on experiences and crafts.
I have re-recorded my presentation at the 2025 Piggs Peak Conference on Creating Shared Value to make it more widely available and as a point of reference for the municipality, businesses, and the local community.
Growing the cake
The next stage is to work with the Piggs Peak municipality to develop ways of measuring and reporting the economic benefits to businesses and the community from tourists attracted to stay at the Piggs Peak Hotel. If there is a richer range of attractions and activities for guests, the hotel benefits from longer stays, and local businesses and the community gain from tourist spending.
Next year, at the follow-up conference, the municipality will report on the community benefits that come from attracting tourists.
