Abstract
Background: Consumers worldwide have recently become more aware that their consumption preferences and habits influence not only the environment, but also other people’s lives. These ‘ethical’ consumers are therefore said to consider the moral features of the product or service in their consumption decision. The most prominent ethical consumption label is the Fair Trade label, which was established to enhance the living and working conditions of those working on small-scale farm cooperatives in developing countries.Aim: This paper aims to determine wine tourists’ willingness to pay (WTP) for improved working and living conditions for wine farm workers.Setting: The research was conducted at the largest wine festival in South Africa, the Wacky Wine Festival in Robertson in the Western Cape, an area renowned for its wine and fruit products.Method: The concept of a socially acceptable logo on the wine bottle – signalling fair wages to the farm workers – was assessed by using a double-bounded contingent valuation approach. Wine tourists completed 397 questionnaires during the festival in June 2017.Results: The results indicate that 80% of wine tourists are willing to pay more for socially responsible wines. The responsible wine consumer is typically younger and a premium of R11 per bottle of wine would be accepted if it signals fair treatment of workers.Conclusion: The socially responsible wine tourist in South Africa is more concerned about quality and the moral implications of the wine than the price. There is support for the implementation of a socially responsible label for wine products.
Highlights
A key trend in the tourism industry is a change in consumer behaviour, and one of the attributes of the new tourist is ethical consumption, which is becoming increasingly important (Saayman 2017)
The respondents are mainly from the Western Cape province (76.8%), with 13.9% of respondents from Gauteng, the province that boasts the highest income per capita in South Africa
The research was conducted among wine tourists at the 2017 Wacky Wine Festival in the Robertson valley in South Africa, which saw strike action in 2016 by wine farm labourers demanding better wages
Summary
A key trend in the tourism industry is a change in consumer behaviour, and one of the attributes of the new tourist is ethical consumption, which is becoming increasingly important (Saayman 2017). Doane (2001) defines ethical consumption as the purchase of a product or service that concerns a certain ethical issue, such as human rights, labour conditions, environmental friendliness and wellbeing – to name just a few – which is chosen freely by an individual consumer. Doane (2001) defines ethical consumption as the purchase of a product or service that concerns a certain ethical issue, such as human rights, labour conditions, environmental friendliness and wellbeing – to name just a few – which is chosen freely by an individual consumer. The global market for fair trade products was valued at US$900 million in 2005, with an estimated growth rate of 20% per annum (Wright & McCrea 2007). Consumers worldwide have recently become more aware that their consumption preferences and habits influence the environment, and other people’s lives. These ‘ethical’ consumers are said to consider the moral features of the product or service in their consumption decision. The most prominent ethical consumption label is the Fair Trade label, which was established to enhance the living and working conditions of those working on small-scale farm cooperatives in developing countries
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