Slavery in the Travel Industry

Is Your Travel Business Unknowingly Connected to Modern Slavery?

Why Align with the UN Guiding Principles on Business & Human Rights (UNGPs)?

The travel industry is under increasing scrutiny to ensure ethical business practices. Aligning with the UNGPs is not just about compliance; it is a strategic business move that delivers tangible benefits:

Brand Reputation: 86% of global consumers expect brands to be socially responsible (Nielsen). Ethical companies attract positive media attention and stakeholder trust.
Market Access & Competitive Advantage: Governments and corporate clients are increasingly requiring modern slavery compliance in procurement processes. Companies leading in this space gain preferred supplier status.
Employee Engagement: 71% of employees prefer to work for a company with a strong social purpose (Cone Communications). Ethical businesses retain top talent and increase productivity.
Customer Loyalty: 63% of consumers choose brands based on their social impact (Edelman Trust Barometer). Travelers are increasingly choosing ethical options when booking flights, hotels, and tours.

These are four great reasons for any company that wants growth to start the process of lifting humanity in business.

What are the UNGPs ?

The UN Guiding Principles on Business and Human Rights (UNGPs) provide a framework for businesses to prevent and address human rights abuses. They are built on three key pillars:

State Duty to Protect human rights through policies and enforcement.
Corporate Responsibility to Respect human rights in operations and supply chains.
Access to Remedy for victims of human rights violations.

How Does the Australian MSA Align?

The Australian Modern Slavery Act (MSA) 2018 is based on these principles. Plus it requires businesses with over $100 million in revenue to report on how they identify and mitigate modern slavery risks. Equally important, similar legislation exists globally, including:

Any company that wants to supply or work with these large companies must be compliant.

The Travel Industry’s Link to Modern Slavery

Every business in the travel sector is connected to modern slavery through its operations and supply chain:

Airports & Airlines: Ground staff, cleaners, and baggage handlers are often hired via labour hire agencies with weak protections.
Hotels & Hospitality: Housekeeping, laundry services, and food supply chains frequently involve exploited workers.
Cruise Ships & Tour Operators: Recruitment agencies providing crew members are known for deceptive hiring practices, leading to debt bondage.
Supply Chains: Travel companies source goods (e.g., linens, uniforms, food, and construction services) from regions with high risks of forced labour.

Case Study: Modern Slavery Scandal in the Travel Industry

In 2022, a high-profile case of modern slavery was uncovered in the hospitality sector linked to the FIFA World Cup in Qatar. An investigation by human rights organisations revealed that thousands of migrant workers, hired to build and service luxury hotels, were subjected to exploitative conditions. These included forced labour, unpaid wages, and restricted movement due to employer-controlled passports. As a result, major international hotel brands faced severe reputational damage, with consumer boycotts and negative media coverage.

Additionally, airlines and travel agencies that facilitated travel packages to Qatar faced backlash for failing to conduct due diligence on their business relationships. As a result, this case underscores the urgent need for travel and hospitality businesses to conduct thorough supply chain audits and ensure compliance with international human rights laws.

(Source: Amnesty International, “Qatar World Cup 2022: Exploitation and Forced Labour in the Hospitality Sector,” 2022) Ethical Procurement in the Hotel Industry

Where to Start: Key Areas for Modern Slavery Risk Assessment

Ethical Procurement: Ensuring all suppliers meet ethical labour standards.
Supplier Relationships: Conducting due diligence, contract clauses, and ongoing audits.
Staff Training: Educating employees on human rights risks and best practices.
Supplier Training: Helping key vendors understand their responsibilities.
Grievance Mechanisms: Providing safe reporting channels for workers.
Consumer Transparency: Clearly communicating efforts to ethical travellers.

The Freedom Hub Ethical Business Advisory Services can support and/or train your teams through each of these steps.

Legal Obligations and Emerging Developments

The December 2024 Policy on the Crime of Slavery by the International Criminal Court (ICC) reinforces global accountability for businesses linked to slavery. It has serious implications for businesses, supply chains, and consumer responsibility. Companies and individuals failing to act may face legal risks, financial penalties, and reputational damage. (read more here)

Case Study: A leading global hotel chain.

Marriott International has taken significant steps to combat modern slavery in its supply chains. The company implemented a rigorous due diligence process for its suppliers, ensuring that all procurement activities aligned with ethical labour standards. Marriott’s Supplier Code of Conduct mandates fair wages, safe working conditions, and zero tolerance for forced labour. Additionally, the company provides human rights training for employees and suppliers to raise awareness of risks. As a result, Marriott has successfully reduced exploitative labour practices within its operations, setting a benchmark for the hospitality sector.

(Source: Marriott International, “Human Rights Commitment and Modern Slavery Statement 2023”)

How TFH Ethical Business Advisory Can Help You to Take Action Against this Risk…

The Freedom Hub Ethical Business Advisory Services supports travel businesses in:

Compliance & Reporting: Guidance on Australian MSA and international laws.
Supply Chain Risk Assessments: Identifying high-risk areas.
Staff & Supplier Training: Tailored workshops, Lunch and Learns as well as Webinars
Remediation Planning: Support in addressing violations and improving worker conditions.
Ethical Business Strategy: Integrating human rights into corporate governance and three-year roadmaps to demonstrate intent.

Taking action now to not only ensure compliance but also strengthen your business for the future.

Contact The Freedom Hub to begin your journey toward ethical and responsible business practices. We would love to help.