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How to be a sustainable tourism business

For most European tourism providers today, embedding sustainability into all aspects of their business has become common practice. Before COVID-19, sustainable tourism was becoming increasingly important to the travelling public. Climate change leading to soaring temperatures, wildfires, floods, and other extreme weather events is now widely accepted to be a direct result of human behaviour. Countries, governments and citizens are urgently seeking to reduce carbon emissions, which impacts every industry in the world, including tourism.

Contents of this page

• Responsible travel choices are growing amidst climate crisis and post-COVID
• What is sustainable tourism?
• Eight elements of a sustainable tourism business
• Become certified as a sustainable tourism provider

1. Responsible travel choices are growing amidst climate crisis and post-COVID

Despite the challenges, large-scale leisure travel is still highly likely to resume once the pandemic subsides. New routines and shifting personal priorities because of COVID-19 has led to consumers reconsidering what is important to them, and the health of the planet is attracting global attention. As a result, the traveller mindset is stimulating changed travel behaviour as tourists are keen to minimise the negative effect of their travel while making a positive contribution to the destinations and communities they visit.

What does this changed tourist behaviour mean in practice?

• Choosing greener forms of transport, such as the train.
• Reducing the number of long-haul trips but staying longer.
• Contributing to carbon offsetting schemes or other community development schemes to offset their carbon footprint.
• Choosing low impact activities that are less harmful to the planet, such as outdoor sports like walking, hiking and cycling, rural tourism, wildlife watching, non-motorised water sports and cultural activities.
• Choosing service providers, such as inbound and local operators and accommodation providers, that are committed to responsible and sustainable tourism practices across their business.
• Upon arriving at a destination, staying longer, staying local.
• Engaging more fully with local communities through community-based tourism activities, staying locally rather than in large, generic hotels, eating local food.
• Avoiding ‘exploitative’ tourism that harms the environment, people and/or animals.
• Seeking authentic, unique, and small group tourism experiences.
• Learning about new cultures through immersive experiences such as food, festivals, cultural events, homestays, meeting local people.

European tourism companies are required to implement sustainability into their businesses under the European Green Deal legislation in order to meet the commitment to reduce carbon emissions to net zero by 2050. Given that European travellers are also increasingly keen to embrace sustainability, local tour operators and other tourism SMEs can improve their competitive position by investing to embed sustainability in their businesses.

For local tour operators that can meet these challenges, there are good opportunities to help save the planet and bring benefit to local communities while providing meaningful and authentic experiences to the growing number of responsible travellers.

2. What is sustainable tourism?

Sustainable tourism is defined formally by the UN Environment Programme and the UN World Tourism Organisation as, “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry and host communities”.

Sustainability in tourism is strongly connected to the United Nations Sustainable Development Goals (SDGs), developed by the UN as a call to action to promote global prosperity while protecting the planet. Tourism is recognised as a key sector in the challenge to meet the 17 SDGs.

Figure 1: UN Sustainable Development Goals

Source: UNWTO

What that means is that sustainable tourism is concerned with all the activities that are conducted by and in the tourism industry. It is about understanding and acknowledging that tourism has both negative and positive impacts on the planet, the natural environment, people and places, and taking the appropriate action to minimise the negative and maximise the positive impacts.

Table 1: Examples of Positive and Negative Impacts of Tourism

Source: Acorn Tourism Consulting

• Find out how adventure tour operators manage sustainability in tourism. The Adventure Travel Trade Association (ATTA), in association with Switzerland Tourism, has released the first report in a series of sustainability research reports that features case studies, lessons learned and best practices from all over the world, set to be published at regular intervals over the next two years. Download the first report on High Moments, Low Impact: Rethinking Adventure Travel’s Sustainability Efforts .

3. Eight elements of a sustainable tourism business

There are many ways to incorporate sustainability into your business, whether you run tours or manage tourism accommodation. It is important to understand that embedding sustainability into your business is a process that will take time. However, it should be your goal to achieve as high a level of sustainability as possible within a realistic timeframe.

If you don’t know whether your business is sustainable, use this free sustainability check to help you find out.

Figure 2: Eight Elements of a Sustainable Tourism Business

The higher the level of sustainability and the more responsibly you run your business, the greater the positive impact you will have on your environment, your community, the quality of your tourism product and client experience, and the more confidently you can promote your green credentials.

Element 1: Energy efficiency

Reducing our reliance on fossil fuels, conserving energy, and improving energy efficiency play a key role in managing the human impact on the environment. Types of energy from renewable sources, also referred to as renewables, are being adopted more widely around the world and new technologies are being developed all the time. While many systems are still very expensive, there are a wide range of small, practical steps that SMEs can take to improve their energy efficiency and monitor energy consumption.

Steps to take:

• Use renewable energy, such as electricity from solar panels or wind power, as much as possible. Choose energy suppliers that provide energy from renewable sources if possible.
• Make sure appliances such as fridges, washing machines and ovens are energy-efficient.
• Install energy-saving lightbulbs everywhere.
• Install thermostats for heating (if needed) and hot water, and a ‘smart’ meter to track your energy use to help you keep it as low as possible.
• Use electric vehicles instead of vehicles with combustion engines.
• Ask your customers/guests to be mindful, turning off lights, air conditioning and/or heating when they leave their rooms.

Figure 3: Example of Customer Notice to Conserve Energy

Source: Recycle Reminders

• Establish formal monitoring processes to measure your energy consumption on a monthly basis.

Element 2: Water conservation and waste management

The effective management of waste is at the core of any sustainable scheme. Tourism providers that adopt responsible waste practices demonstrate a high level of commitment to the preservation of the environment.

‘Reduce, Reuse, Recycle’ are the key activities in waste management, and the phrase is highly recognisable by consumers these days.

Figure 4: Recycling Waste Scheme in Action

The global problem of plastic pollution is well publicised in Europe and consumers are very familiar with images of oceans and beaches contaminated with vast amounts of plastic waste. Single-use plastic, commonly used for plastic bags, water/drinks bottles, straws and plastic plates/cutlery, is widely considered to be a major culprit. Many countries have banned the use of some single-use plastics and others, such as Tanzania, have banned travellers from bringing in plastic bags to the country .

Water is an increasingly precious resource that must be managed carefully in many countries that have limited rainfall or are prone to drought conditions. As well as encouraging your customers to use water responsibly for washing and so on, you should also encourage them to use reusable water bottles and provide a supply of filtered water. This is essential in places where tap water is not safe to drink.

• “Waste is only waste when you waste it” - ensure you have a waste separation scheme in place for recycling paper and cardboard, plastics and aluminium and ensure it is all disposed of responsibly according to the regulations in your destination.
• Consider whether you could support a ban on single-use plastics in your business or commit to working towards an outright ban.
• Compost food and garden waste appropriately.
• Install low-flow taps and shower heads.
• Install a rainwater harvesting system for crops/gardens, and/or flushing toilets.
• Install a water filtering system to encourage guests to limit their use of plastic bottles. Provide (loan, sell or give) your clients reusable bottles. They can be company-branded souvenirs.
• Display customer signs to use water sensibly and turn off taps.
• For accommodation providers, implement a reuse towels and bedlinen scheme.
• Encourage visitors to take part in a litter collection initiative.

Figure 5: Customer Notices: Reuse Bedlinen/Towel Scheme and Conserving Water

Source: Acorn Tourism Consulting/Key Signs

• Make sure you are aware of the regulations surrounding waste and recycling in your destination. Check what initiatives there may be to help you improve your waste management practices.
• Establish a formal monitoring process to measure your water usage on a monthly basis.

Element 3: Greenhouse gas emissions and carbon offsetting schemes

Reducing carbon emissions is the most important factor to address climate change. Carbon dioxide (CO2) accounts for around 80% of greenhouse gas emissions and its presence in increasingly high concentrations is the major cause of climate change. Burning fossil fuels, commonly practised in the manufacturing and aviation sectors, deforestation, and intensive farming practices are major contributors to harmful levels of carbon dioxide and other greenhouse gases in the atmosphere.

The effects of climate change are causing serious problems for human life all over the world due to floods, storms, wildfires, and extreme temperatures. Rising sea temperatures are devastating coastal communities and damaging delicate ecosystems that cannot adapt quickly enough, which in turn threatens the many species that live in them.

To compensate for the emissions caused by tourism activities, many European tour operators make contributions to carbon offsetting schemes. Travellers also like to know that operators they use and places they visit are helping to address the issue by contributing to schemes and actively choose providers that make a conscious effort to minimise the impact of travel.

However, carbon offsetting is a controversial topic. It is becoming more widely understood that for carbon offsetting to work, activities must be carried out in addition to any existing scheme. Therefore, it is important to select offsetting schemes that really consider the positive impact they make towards addressing climate change.

You can see how UK operator Much Better Adventures carefully considers which reforestation and rewilding schemes to support for maximum benefit to the planet.

• Measure your carbon footprint using an online calculator such as Carmacal , developed specifically to measure the carbon footprint of tour and travel packages.
• Read more about the effects of climate change so that you are knowledgeable about the global issue. Greenpeace is a good source of information.
• Do your own research into companies that you can sign up with for carbon offsetting schemes, like Earthly . Some schemes, such as German organisation Atmosfair , support the development of tourism practices using renewable energy.
• Research what carbon offsetting schemes exist in your country or destination.

Element 4: Community relations, labour practices and human rights

Employing local people in your business is crucial for tourism to be sustainable. Local individuals benefit both economically and from a personal development perspective. It can also have a positive impact on their whole family and help foster a sense of local and national pride.

However, it is important to ensure that everyone involved in your business, including staff and volunteers, are treated fairly, do not work excessive hours or in poor conditions. They should have at least one full rest day a week and receive adequate training for the work they are expected to do.

It is also important to involve and consult with other local stakeholders, both in the planning and implementation stages. You must build strong relationships with them to ensure success at a community level and to be able to deliver an immersive experience for the traveller.

A Code of Conduct that encompasses all your business practices is essential. It should clearly state your support of human rights, that you distance yourself from child abuse and, if applicable, your commitment to animal welfare in tourism. You should research other companies’ Codes of Conduct to help you write your own, for instance:

• Intrepid Travel Responsible Travel Code of Conduct
• Rainbow Tours Code of Conduct
• ABTA’s Welfare of Animals in Tourism
• GAdventures’ Child Welfare and the Travel Industry – Global Good Practice Guidelines
• If you are setting up a community tourism project, identify all the stakeholders and what role they will play in the project, whether a supplier, buyer, community, family, group/organisation or employee or consultant.
• Employ staff from the direct community whenever you can, followed by the local area and region. Ensure that each role is supported by a formal job description and that training is provided as necessary.
• Build a network of knowledgeable and experienced guides who are enthusiastic and speak the language of the travellers to a good standard. They must be able to bring the product alive, whether guiding a walking trail, identifying bird life, conducting community village or historical tours, and so on. Offer training as necessary.
• Pay a fair wage for the work they do and the skills they have.
• Do not exploit children. They should not be employed by the business or be involved in anything dangerous, or if it means they miss school. For more advice on establishing a Code of Conduct, consult The Code of Conduct for the Protection of Children from Exploitation in Travel and Tourism .

Element 5: Maximising positive impact on local cultures

Maximising the authenticity of an experience for a visitor through meaningful interactions with local cultures and communities is at the heart of sustainable tourism activities. Community-based tourism (CBT) is a fast-growing niche market within the tourism industry, driven by travellers keen on unique and authentic experiences.

For instance, a guided walk or tour through a village combined with a traditional activity like cooking with a local family, or taking part in hands-on village activities like handicraft making or harvesting fruit or flowers. It is important to ensure the whole community is involved in supporting or providing the experience – and that a structure is in place that enables everyone in the community to benefit from selling the experience.

If your business serves food, it is important to ensure that produce is locally grown, harvested and/or produced, and is seasonal. Local and seasonal is a key part of sustainability. Sourcing from local producers and growers under fair terms and conditions ensures positive impact.

Other examples of activities, trips and experiences that can be organised sustainably to the benefit of both community and visitor include:

• Birdwatching
• Wildlife watching
• Nature walks, learning about unusual flora and fauna or traditional plant-based medicines
• Visiting a coffee or sugar cane farm
• Visiting a local community and joining in with traditional activities
• Guided walks with storytelling, visiting interesting historic sites
• Sharing local music and culture, such as traditional performances or visits to local festivals
• Opportunities to try traditional food and drink
• Language classes
• Watching and learning about traditional handicrafts, including the opportunity for tourists to try it themselves
• Food tasting
• Traditional cookery classes including a trip to the local market to buy ingredients
• Art, painting or photography  

Element 6: Health and safety

Ensuring guests’ health and safety is of paramount importance for all tourism providers. It has become even more important because of the pandemic, and you must establish some robust cleaning and sanitising protocols, making sure you are very clear what they are. If you supply travel products to European tour operators, they will also expect you to be very clear how you will keep their customers safe.

Your website is the best place to promote your COVID-19 safety protocols. Take a look at this comprehensive COVID-19 Operating Plan for staff and guests drawn up by local Indian operator Village Ways to give you some ideas for developing yours.

You can also consider signing up to join the World Travel & Tourism Council’s Safe Travels stamp, a self-certify scheme to help rebuild confidence among travellers so safe travel can resume once restrictions are eased. It is free to use, provided that you commit to the implementation of and ongoing compliance with the Safe Travels protocols. Download the WTTC Safe Travels Protocols to find out more.

• For more information about managing your business during COVID-19, download the CBI study on How to respond to COVID-19 in the tourism sector.

Element 7: Animal welfare

The welfare of animals in tourism is an emotive topic for European travellers. There is a lot of negative publicity surrounding poorly managed animal wildlife attractions that promote unacceptable practices, including forced animal performances and the handling of wild animals. There are many campaigning organisations in Europe and around the world that actively encourage wildlife tourists to stay away from such attractions, for instance Four Paws and Animondial .

Increasingly, European tour operators will only work with suppliers that promote very high standards of animal welfare, both for animals that live in the wild and those living in captivity, such as conservation sanctuaries. They will not buy from you if you cannot prove you are a responsible wildlife tourism provider.

• You should familiarise yourself with what are acceptable practices in animal tourism these days. Consult ABTA’s Animal Welfare Guidelines for more information.
• Assess your tourism product thoroughly to ensure it complies and make changes if it does not.
• For more information about requirements for wildlife tourism products, including detailed information about developing sustainable wildlife tourism products, consult the CBI study on Entering the European market for wildlife tourism products .

Element 8: Responsibility Statement

To communicate your commitment to sustainable tourism, you should write a Responsibility Statement for your business. The statement should clearly outline all the sustainable activities that you practise, but it is important that you are honest about what you do and that you don’t exaggerate or make any false claims. You will seriously harm your business and reputation if your claims are discovered to be false.

The statement must provide your visitors with a clear view of the proactive environmental and social measures that your businesses has adopted and others that you aspire to reach. This is important as it shows that you are aware there is always more that can be done, and it is a good thing to have goals.

This is a good example of aspirational thinking.

Figure 6: Next Steps

Source: Much Better Adventures

For inspiration when writing one for your business, look at these examples of responsibility statements from tour operators and tourism providers:

• Intrepid Travel – as one of the world’s leading tour operators of sustainable holidays to destinations all over the world, its responsibility statement is extremely comprehensive and covers many themes of responsible and sustainable tourism practices.
• Responsible Travel – is an Online Travel Agent (OTA) of responsible holidays. Its mission is to ‘make the travel and tourism industry more caring’ and it has a very detailed responsible tourism policy.
• Village Ways, India – has a strong but simple responsibility statement that focuses on five main themes.
• The Black Sheep Inn, Ecuador – this ecolodge in the Andes Mountains has an impressive goal to be self-sufficient in energy, water and food production. It clearly outlines all the sustainable and conservation activities it undertakes, including detailing the reasons why composting toilets and harnessing solar energy is a good idea.
• Lapa Rios Ecolodge, Costa Rica – sustainability is the core value of this ecolodge with nature conservation and community development at the forefront of its activities.
• Make sure the statements you make are clear and honest.
• Do not exaggerate your claims or make vague statements.
• Avoid ‘ greenwashing ’ – do not pretend you are doing something that you are not. It will harm your reputation when it is discovered.
• Avoid 'greenhushing' – by underreporting your sustainability achievements to your clients

4. Become certified as a sustainable tourism provider

Being certified as a sustainable business sends out a strong message to your customers that you understand the issues and are working hard to minimise negative impacts and maximise positive impacts of your tourism business.

The Global Sustainable Tourism Council , commonly referred to as the GSTC, manages the global standards for sustainable travel and tourism, and acts as the international accreditation body for sustainable tourism certification.

Figure 7: Global Sustainable Tourism Council Logo

Source: GSTC

The GSTC Criteria are applicable to all sectors of the tourism industry and organised around four main themes:

• Effective sustainability planning
• Maximising social and economic benefits for the local community
• Enhancing cultural heritage
• Reducing negative impacts on the environment

There are two sets of GSTC Criteria:

• Industry Criteria for Hotels and Accommodation Providers , and Tour Operators
• Destination Criteria for policymakers and destination managers.

Tour operators and accommodation providers may apply for sustainable certification directly with GSTC or apply to join a scheme that has adopted the GSTC Criteria within its own system and has been recognised by GSTC as GSTC-Recognised Standards.

Table 2: Examples of GSTC-Recognised Standards

Source: GSTC/Acorn Tourism Consulting

To illustrate the importance of sustainability certification to adventure tour operators around the world, the Adventure Travel and Trade Association (ATTA) 2021 Adventure Tour Operator Snapshot Survey identified that 40% of respondents were either working towards sustainability certification or were certified already.

Figure 8: Sustainability Certification among Adventure Tour Operators

Source: ATTA

• Do your own research into the different sustainability certification schemes to see which would be most suitable for your business. Make sure you explore any national schemes that are available in your country too.
• Have a look at this website, bookdifferent.com , an OTA (online travel agent) offering a range of sustainable hotels and other eco-friendly accommodations all over the world. If you want to list your property on this OTA, you will be referred to a partner-ecolabel to begin the certification process.

TO BECOME CERTIFIED AS A SUSTAINABLE BUSINESS, OR NOT?

If you cannot afford to become certified sustainable at this stage, you should incorporate sustainable practices in all your businesses activities as far as you are able to, and make sure that you record your activities and use your website to tell the story about your sustainability. Although certification is desirable, travellers will also be interested to know that your activities are sustainable and have a positive impact on the environment, people and local economy.

Travelife for Tour Operators

Travelife is an internationally recognised GSTC-accredited training, management and certification initiative for tour operators committed to reaching sustainability, with more than 400 members worldwide. Travelife is one of the best known sustainable tourism certification systems and widely adopted in Europe, so many operators in developing countries choose this standard for their business.

Travelife offers two separate but interrelated sustainability systems, one for tour operators and travel agencies, the other for hotels and accommodation providers. Benefits of joining the tour operator scheme include:

• Guidelines and templates for sustainability policies and contracts for internal and external implementation of sustainability.
• A personal coach (or trainer) to advise and support your organisation through the implementation stage.
• An online assessment of your activities and verification of your sustainability report.
• Seven online training courses for your staff and suppliers.
• The Travelife Award (subject to compliance with the Travelife requirements and standards).
• Five free calculations for your tour package’s carbon emissions.

Travelife Standard, Criteria and Tools

The Travelife Standard integrates management and performance criteria and is based on leading international sustainability and Corporate Social Responsibility (CSR) guidelines. These include the GSTC criteria ; ISO 14001 in Environmental Management and ISO 26000 in Corporate Social Responsibility Guidelines and Principles. The Travelife criteria have been developed around the major sustainability themes, detailed in the following table. In addition, specialist tools have been created to help members address these issues.

Table 3: Travelife Sustainability Themes and Tools to Address Sustainability Issues

Source: Travelife/Acorn Tourism Consulting

Travelife Certification Process

There is a three-stage approach to achieve sustainability certification under the Travelife scheme. Applicants usually complete each stage before progressing to the next.

Figure 9: The Stages of Travelife Sustainable Certification

To find out more about the three stages, also known as packages, visit Travelife’s membership packages page.

Travelife members are found across the tourism industry and include travel trade associations which promote Travelife to their members, such as ABTA (Association of British Travel Agents) and ANVR (Netherlands Travel Trade Association). You can also browse Travelife’s current tour operator and travel agent members, arranged by country here .

When it comes to accommodation providers, many leading companies have joined Travelife to help improve sustainability in their own accommodation supply chain, like TUI and Hotelplan .

• If you organise trips, tours and experiences, consult the Travelife website to make sure you understand the requirements for certification.
• For more information about the Travelife sustainability programme for accommodation providers such as guest houses, hotels, hostels, and other tourism accommodation, visit the website, Travelife Accommodation Sustainability .

This study was carried out on behalf of CBI by Acorn Tourism Consulting Limited .

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Sustainability in tourism is on the edge of a breakthrough. Present day consumers expect companies to minimize their environmental impact and maximize their social returns. More and more outbound operators expect their partners to work on sustainability. This offers a major competitive advantage for inbound operators who have reached certification. Certification is achievable for all companies, large and small and in all destinations. We do not expect you to do the impossible or anything which does not make business sense. To help businesses we have developed a comprehensive and inspirational training and tool package to lead you through the process and provide international recognition. Naut Kusters – General Manager, Travelife for Tour Operators

My advice to local tour operators would be to build sustainability into the heart of your business. Think carefully about all the positive and negative impacts your business has on the environment and communities where you operate.  Make and implement a clear plan to maximise the benefits and minimise the burdens. This will mean you can confidently communicate your approach, your progress and successes to the companies you do business with. Work closely with others in the destination where you operate to share challenges and solutions, and most of all emphasise how being a sustainable travel company offers a better customer experience – one that’s local, authentic, special and memorable.   Rebecca Armstrong, Destinations Programme Office,  The Travel Foundation

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Green transformation strategies: building sustainable tourism for the future

Written by Daniela Vuta on January 4, 2023 . Posted in Strategy

Image source: Nathaniel Yeo | Unsplash

“The pandemic and its impact on tourism, jobs, and revenues offer an unprecedented reminder of the need to rebalance our relationship with people, planet, and prosperity. The green transformation of the sector is needed, not just for the planet, but also for tourism itself, boosting competitiveness and increasing resilience.” – UNWTO Secretary-General Zurab Pololikashvili

While the world is seeking to adapt to the “new normal” set by an ongoing pandemic, the future of the tourism industry remains highly uncertain. According to the UNWTO World Tourism Barometer released in January 2022, global tourism registered an increase of 4% in 2021, with 15 million more international tourist arrivals compared to 2020. Still, these levels remain 72% below the pre-pandemic year 2019. Meanwhile, the latest UNWTO Panel of Experts survey reveals that most experts (64%) agree that international tourism will not reach the 2019 levels until 2024 or later. 

Beyond the economic and social disruption, the pandemic crisis has disclosed existing structural weaknesses in the tourism sector, along with breaches in governmental and industry preparedness or response capabilities. Fragmented sectors and differences in the nature of tourism; seasonality; consumption of natural resources; impacts on climate change; and relative importance of tourism in the economy are only some of the shortcomings, as shown by the OECD Tourism Paper in 2021. 

Moreover, recent studies indicate that the demand for tourism is undergoing significant behavioral changes towards more sustainable travel patterns that were amplified by the pandemic. For instance, a 2021 Eurobarometer survey showed that 82% of European citizens are inclined to include more sustainable practices in their travel habits, such as consuming locally sourced products, reducing waste and water consumption, traveling off-season or to less-visited destinations, and choosing transport alternatives based on their ecological impact. These results are supported by another survey conducted by Booking.com across 30 countries worldwide that gathered insights from 29,000 travelers. Seventy-three percent of the participants in the survey would be more likely to choose an accommodation if it has implemented sustainability practices. 

Such studies prove that there is an increasing need for developing more sustainable and resilient models of tourism, supported by policymakers and service providers. In other words, a change of paradigm is needed, and green transformation policies and strategies seem to be the approach that will bring resilience and balance between “the needs of people, planet, and prosperity” in the tourism ecosystem.

The role of green transformation in sustainable industry recovery

Green transformation is not a new concept for the world economy, and it emerged as a trend in the tourism industry even before the pandemic. In a broad sense, the concept refers to “combining economic growth with caring about the environment to guarantee a high quality of life for present and future generations, at the level which is attainable due to civilizational development, as well as to an effective and rational use of the available resources” ( Cheba et al., 2022 , p.1). 

In particular, green transformation involves an integrated approach that relies on combining legal regulations, innovative technologies, strategies, and clear initiatives to create sustainable and environmentally friendly markets. As the pandemic hastened the call for a green transformation in tourism, worldwide organizations and policymakers are planning strategies, key actions, and targets to achieve long-term competitiveness and sector recovery. 

There is a general consensus that the industry must continue to build digital skills, implement digital solutions, create sustainable infrastructure, and address sustainable travel patterns. In early 2022, the European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs released the Transition Pathway for Tourism , a report that introduces a set of strategy recommendations for the tourism ecosystem, based on the objectives of the European Green Deal . Within this report, the European Commission refers to the “tourism ecosystem” as businesses that work in sectors such as food and beverage services, on-line information and services providers (tourist offices, digital platforms, travel technology providers), travel agents and tour operators, accommodation suppliers, destination management, attractions and passenger transport (pg. 2).

Some of the key strategies and their related targets are as follows:

• Passenger transport companies (aviation, water, and land transport) should reduce Greenhouse Gasses (GHG) to become climate neutral by 2050. 
• European cities and regions should develop sustainable mobility for climate-neutral cities, by implementing mobility plans and by doubling the high-speed rail traffic by 2030.
• Buildings have to become more energy and resource-efficient, and energy support must move towards sustainable renewables.
• Hospitality and all tourism services should implement circular models and diminish their environmental footprint. This includes reducing by half the amount of non-recycled waste by 2030 and lower food waste, single-use plastics, air pollutants, and water pollution while increasing water efficiency.
• Each destination or tourism service provider should build their communication strategy on transparency towards sustainability and environmental footprint, thus guiding and empowering consumers’ choices. 

Furthermore, the World Tourism Organization considers that “transforming tourism operations for climate action continues to be of utmost importance for the sector to remain in line with the international goals.” To support that, three main goals and actionable ways for their achievement were introduced in the Recommendations for the transition to a green travel and tourism economy : monitor and report CO2 emissions from tourism operations; accelerate the decarbonization of tourism operations; and engage the tourism sector in carbon removal. 

Green transformation strategies in practice

Around the world, different practices of strategy planning and ongoing actions stand as evidence for the shift to a green travel and tourism economy as a roadmap for sustainable and resilient growth.

In the recovery from COVID-19, Kyoto (Japan), “a city where history and culture give rise to hope,” reconfigured its urban development and tourism strategy in 2021. The recovery strategy aims to develop the city as a higher-quality destination for both residents and tourists while supporting the Sustainable Development Goals (SDGs) recommended by the United Nations. 

As stated in the Kyoto Tourism Promotion Plan 2025 , five Goals for Urban Development and Tourism are to be achieved by 2030:

• Harmony between the life of residents and tourism, allowing the local populace to feel enriched
• All actors are involved in refining the “light of Kyoto” and improving tourism quality.
• Tourism industry leaders become more active, and entrepreneurship of new businesses in the fields of tourism and culture flourish, contributing to improve the vitality of the city and cultural inheritance
• Ensuring flexible, strong, safe, secure and environmentally sustainable tourism that can cope with various crises, such as infectious diseases and disasters
• Establishing the city’s credentials as an attractive MICE city, welcoming people from all over the world, recognizing diversity, and contributing to world peace

Measuring the progress towards achieving their vision is ensured by key performance indicators set for each of the five goals, which are meant to be evaluated on a regular basis. Several examples of KPIs included in the strategy plan are as follows: 

• % Full-time employment in the tourism sector
• % Satisfaction level of tourism workers
• % Tourism businesses whose products and unit prices have increased
• % Tourism businesses contributing to the local community
• % Tourism businesses that take into consideration the environment
• # International conferences held

One distinctive feature of the Kyoto strategy is the Code of Conduct for Sustainable Tourism in Kyoto (Kyoto Tourism Morals), which aims to provide “guidelines for the tourism industry and its workers, tourists, and residents to work together in united efforts to maintain harmony in Kyoto, and to preserve Kyoto for future generations.”

“Rebuilding tourism is also an opportunity for transformation with a focus on leveraging its impact on destinations visited and building more resilient communities and businesses through innovation, digitalization, sustainability, and partnerships.”  – 2020 Tourism Policy Brief, United Nations

This article originally appeared in the 23rd PERFORMANCE Magazine – Printed Edition. Download your free copy from TKI Marketplace or get one in print via Amazon .

Tags: green transformation , Strategy planning , sustainable tourism , tourism

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The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality

ISBN : 978-1-78743-530-8 , eISBN : 978-1-78743-529-2

Publication date: 11 July 2018

This chapter aims to discuss the key issues of green entrepreneurship in tourism (GEiT), paying special attention to the environmental performance of green entrepreneurs and its relationship with strategy, brand reputation and long-term business growth.

Methodology/approach

Literature review is conducted on conceptual issues and several hotels first-hand experiences that were categorised to provide readers with business-world examples.

This chapter highlights how small- and medium-sized entrepreneurs are the agents who started green innovation initiatives and how larger corporations tested and validated them. A myriad of small green interventions awaits to be undercovered and implemented. Most of them can bring financial improvements to the entrepreneurs as the required initial investments are not necessarily high.

Research limitations/implications

This chapter is explorative in nature, based on a literature review and interviews-based analysis of consolidated green initiatives, most of them being successful ones.

Practical implications

The forces driving green initiatives are identified and classified. Most important categories of green entrepreneurs are described and emphasis was placed on the managerial and marketing benefits linked to green initiatives and action plans.

Originality/value

This chapter presents models and concepts in an integrated way, facilitating a useful knowledge for prospective entrepreneurs wishing to acquire a better understanding of the opportunities and challenges related to eco-friendly business.

• Green entrepreneurship
• Green initiatives/action plans
• Case studies
• Environmental performance

Acknowledgements

Acknowledgement.

The authors wish to thank the financial support provided by The Spanish Government: Research Projects RETOS 2016, ECO2016-75961-R and ECO2016-79659-R.

Alonso-Almeida, M.d.M. and Álvarez-Gil, M.J. (2018), "Green Entrepreneurship in Tourism", Sotiriadis, M. (Ed.) The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality , Emerald Publishing Limited, Leeds, pp. 369-386. https://doi.org/10.1108/978-1-78743-529-220181027

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What Is Green Tourism

Published: December 12, 2023

Modified: December 28, 2023

by Nedi Breland

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• Sustainability

Introduction

Welcome to the world of green tourism, where sustainable travel meets environmental responsibility. As the global awareness of climate change and ecological preservation continues to grow, so does the importance of adopting eco-friendly practices in the tourism industry. Green tourism, also known as sustainable tourism or eco-tourism, is a concept that focuses on promoting travel activities that have minimal impact on the environment, preserve local cultures, and provide social and economic benefits to the host communities.

Green tourism goes beyond simply visiting natural attractions or staying in eco-friendly accommodations. It encompasses a range of practices that prioritize sustainability, conservation, and respect for local communities. This type of tourism aims to strike a balance between experiencing the beauty of our planet and actively contributing to its protection.

In recent years, green tourism has gained significant momentum, with travelers becoming more conscious of their environmental footprint and seeking out destinations and experiences that align with their values. This shift in consumer behavior has prompted tour operators, hoteliers, and governments to embrace sustainable practices in their operations and make conscious efforts to reduce their carbon footprint.

Moreover, the concept of green tourism extends beyond environmental considerations. It also takes into account the social and economic impact of tourism on local communities. Green tourism initiatives often promote community involvement, fair employment practices, and the preservation of cultural heritage, ensuring that the benefits of tourism are shared with all stakeholders.

With the increasing popularity of green tourism, a range of certification programs and guidelines have been established to help travelers identify truly sustainable options. These certifications not only provide travelers with the reassurance that they are making responsible travel choices but also incentivize businesses to adopt environmentally friendly practices.

In this article, we will explore the various aspects of green tourism, including its definition, benefits, principles, and practices. We will also delve into the world of green tourism certification programs and examine real-life case studies showcasing successful implementations. Finally, we will discuss the challenges and opportunities that arise in the realm of green tourism.

So strap on your backpack and get ready to embark on a sustainable journey to explore the wonders of green tourism!

Definition of Green Tourism

Green tourism, also referred to as sustainable tourism or eco-tourism, is a form of travel that focuses on minimizing the negative impact on the environment, supporting local communities, and preserving cultural heritage. It aims to create a balance between enjoying the beauty of natural and cultural attractions while promoting responsible and sustainable practices.

At its core, green tourism revolves around three main pillars: environmental conservation, socio-cultural respect, and economic viability. These pillars guide travelers, tour operators, and destination managers in adopting sustainable practices that benefit both the environment and the communities they visit.

From an environmental perspective, green tourism places a strong emphasis on reducing carbon emissions, conserving natural resources, and protecting biodiversity. Travelers are encouraged to choose eco-friendly accommodations, participate in nature-based activities with minimal disturbance to ecosystems, and support businesses that implement sustainable waste management and energy conservation practices.

In terms of socio-cultural respect, green tourism promotes the preservation of local cultures, traditions, and ways of life. It encourages travelers to interact with local communities in a respectful manner, fostering cultural exchange and supporting the local economy through the purchase of locally made products and services. By doing so, green tourism helps preserve cultural diversity and heritage, ensuring that future generations can continue to appreciate and learn from them.

Lastly, economic viability is a crucial aspect of green tourism. It recognizes the importance of ensuring that tourism generates economic benefits for local communities rather than exploiting or displacing them. Green tourism initiatives aim to create opportunities for local employment, promote fair wages and working conditions, and encourage the reinvestment of tourism revenue back into the community for infrastructure development, education, and healthcare.

Overall, green tourism strives to create a sustainable travel experience for both travelers and host communities. It encourages responsible behavior, raises awareness about environmental and social issues, and fosters a sense of appreciation for the natural and cultural wonders of the world.

Benefits of Green Tourism

Green tourism offers a multitude of benefits, not only for travelers but also for the environment, local communities, and the tourism industry as a whole.

One of the primary benefits of green tourism is its positive impact on the environment. By promoting sustainable practices such as energy conservation, waste reduction, and the use of renewable resources, green tourism helps minimize the ecological footprint of travel activities. This leads to a reduced carbon footprint, decreased pollution, and the preservation of natural habitats and biodiversity.

Furthermore, green tourism encourages travelers to engage in nature-based activities that foster a deeper appreciation and understanding of the environment. This heightened appreciation can lead to increased support for conservation efforts and the protection of fragile ecosystems.

Green tourism also brings significant socio-cultural benefits. By promoting respect for local customs, traditions, and cultures, it helps preserve and celebrate cultural heritage. Travelers have the opportunity to immerse themselves in authentic cultural experiences, engage with local communities, and contribute to the economic growth of these communities through the purchase of locally made products and services.

Moreover, green tourism often leads to the creation of employment opportunities for local residents. By supporting small businesses, eco-lodges, and community-based tourism initiatives, green tourism generates income for local communities, empowering them economically and reducing dependence on external sources of income.

For travelers, green tourism offers a unique and meaningful travel experience. It allows them to connect with nature, gain a deeper understanding of local cultures, and make a positive impact on the destinations they visit. Green tourism provides opportunities for personal growth, self-reflection, and a sense of fulfillment that comes from traveling responsibly and sustainably.

From a business perspective, adopting green tourism practices can lead to a competitive advantage. By demonstrating a commitment to sustainability, businesses can attract environmentally conscious travelers who actively seek out eco-friendly options. Green tourism initiatives also often result in cost savings through energy efficiency measures, waste reduction, and operational optimization.

Overall, green tourism benefits not only the travelers but also the environment, local communities, and the tourism industry. It offers a more responsible and sustainable approach to travel, ensuring that future generations can continue to enjoy the wonders of our world.

Principles of Green Tourism

Green tourism is guided by a set of principles that help ensure sustainable and responsible practices in the industry. These principles serve as a framework for businesses, travelers, and destination managers to make informed decisions that prioritize environmental conservation, socio-cultural respect, and economic viability.

1. Environmental Conservation: The principle of environmental conservation focuses on minimizing the negative impact of tourism on natural resources and ecosystems. This includes reducing carbon emissions, conserving water and energy, protecting biodiversity, and promoting sustainable waste management practices. Businesses and travelers are encouraged to choose eco-friendly accommodations, engage in low-impact activities, and support initiatives that contribute to the preservation and restoration of the environment.

2. Socio-cultural Respect: Green tourism emphasizes the importance of respecting and celebrating local cultures, traditions, and ways of life. This principle encourages travelers to engage in meaningful interactions with local communities, learn about their customs and traditions, and contribute to the local economy through the support of locally owned businesses. It also emphasizes the preservation of cultural heritage and the promotion of fair and responsible tourism practices that benefit host communities.

3. Community Involvement: Green tourism recognizes the value of involving local communities in decision-making processes and ensuring that they benefit from tourism activities. This principle aims to empower local residents by creating opportunities for employment, supporting community-based tourism initiatives, and facilitating the equitable distribution of tourism revenue. It encourages social and economic development that is inclusive and sustainable.

4. Education and Awareness: Green tourism promotes education and awareness about sustainability issues among travelers, businesses, and local communities. This principle emphasizes the importance of educating travelers about responsible travel practices, environmental conservation, and cultural sensitivity. It encourages businesses to provide training and resources to employees, fostering a culture of sustainability throughout the tourism industry.

5. Collaboration and Partnerships: Green tourism recognizes that achieving sustainability goals requires collaboration and partnerships among various stakeholders. This principle encourages businesses, government agencies, NGOs, and local communities to work together in implementing sustainable tourism practices. Collaboration promotes knowledge sharing, resource pooling, and the development of innovative solutions that benefit both the environment and local communities.

6. Continuous Improvement: Green tourism embraces the principle of continuous improvement, acknowledging that sustainability is an ongoing process. Businesses and destinations are encouraged to regularly evaluate their practices, set goals for improvement, and measure their environmental and socio-cultural performance. By striving for continuous improvement, green tourism ensures that initiatives remain relevant, effective, and adaptable to changing circumstances and emerging sustainability challenges.

By adhering to these principles, green tourism aims to provide a framework for responsible and sustainable travel practices that not only benefit the environment but also contribute to the well-being and prosperity of local communities.

Green Tourism Practices

Green tourism involves a range of practices that prioritize sustainability, conservation, and responsible behavior. These practices span various aspects of travel, from transportation and accommodation to activities and interactions with local communities. Here are some key green tourism practices:

1. Sustainable Transportation: Traveling to and within destinations in a sustainable manner is an important aspect of green tourism. This includes opting for public transportation, cycling, or walking whenever possible, as well as choosing fuel-efficient vehicles or carpooling. Travelers can also offset their carbon emissions by supporting carbon offset programs.

2. Eco-friendly Accommodations: Green tourism encourages staying in eco-friendly accommodations that have implemented sustainable practices. Look for accommodations that have energy-efficient systems, water conservation measures, waste recycling programs, and use renewable energy sources. Eco-lodges, eco-resorts, and eco-hotels often prioritize sustainability and offer unique and authentic experiences.

3. Responsible Wildlife and Nature Experiences: Green tourism promotes responsible wildlife and nature experiences that prioritize the well-being and conservation of animals and ecosystems. Choose tour operators and activities that adhere to responsible wildlife viewing practices, such as maintaining a safe distance, avoiding interactions that disrupt natural behaviors, and supporting initiatives that contribute to conservation efforts.

4. Support Local Communities: Green tourism emphasizes supporting local communities by engaging in responsible and ethical tourism practices. This includes purchasing locally made products, participating in cultural activities and events, and patronizing local businesses and restaurants. By supporting the local economy, travelers can contribute to the socio-economic development of the community.

5. Minimize Waste: Green tourism encourages the reduction, reuse, and recycling of waste. Travelers are encouraged to bring reusable water bottles, utensils, and shopping bags to minimize single-use plastics. Using refill stations and recycling facilities provided by the accommodations and destinations is also important in minimizing waste generation.

6. Respect Local Culture and Customs: Green tourism promotes cultural sensitivity and respect for local culture and customs. Before visiting a destination, familiarize yourself with the local customs, traditions, and etiquette to ensure respectful interactions. Seek permission before taking photographs, refrain from inappropriate behavior, and support cultural preservation initiatives.

7. Responsible Water Usage: Water conservation is a critical aspect of green tourism. Travelers are encouraged to be conscious of their water consumption, limiting unnecessary water use such as taking shorter showers, reusing towels, and reporting any leaks or water wastage to the accommodation staff. Additionally, supporting initiatives that promote access to clean water for local communities is crucial.

These are just a few examples of the green tourism practices that travelers can adopt to minimize their environmental impact and contribute positively to the destinations they visit. By being mindful of these practices, travelers can play an active role in promoting sustainability and conservation in the tourism industry.

Green Tourism Certification Programs

To help travelers identify truly sustainable and responsible travel options, various green tourism certification programs have been established around the world. These certification programs assess and recognize businesses that meet specific criteria and standards related to environmentally and socially responsible practices. Here are a few notable green tourism certification programs:

1. Green Globe: Green Globe is a leading sustainability certification program for the travel and tourism industry. It provides certification to businesses that meet strict criteria in areas such as environmental management, social responsibility, cultural heritage protection, and economic benefits to local communities. Green Globe-certified businesses are committed to sustainable practices across their operations.

2. Rainforest Alliance: The Rainforest Alliance certification program focuses on promoting sustainable practices in agriculture, forestry, and tourism. Their certification ensures that businesses adhere to environmental and social standards that protect ecosystems, conserve natural resources, and promote the well-being of local communities. Rainforest Alliance-certified accommodations, tour operators, and attractions contribute to the conservation of biodiversity and the fight against climate change.

3. LEED Certification: LEED (Leadership in Energy and Environmental Design) is a globally recognized green building certification program. While it primarily focuses on building design and construction, LEED certification is also applicable to hotels and accommodations that meet specific sustainability and energy efficiency standards. LEED-certified properties prioritize resource conservation, waste reduction, and indoor environmental quality.

4. EarthCheck: EarthCheck is a certification program that assesses the environmental and social sustainability performance of tourism operators and destinations. It provides businesses with feedback and guidance on ways to improve their sustainability practices. EarthCheck-certified businesses undergo regular audits to ensure ongoing compliance with internationally recognized standards in areas such as waste management, energy efficiency, and community engagement.

5. Travelife: Travelife is an internationally recognized certification program for tour operators, travel agencies, and accommodations. It assesses the sustainability performance of businesses based on a comprehensive set of criteria, covering environmental, social, and economic aspects. Travelife-certified businesses are committed to reducing their environmental footprint and contributing to the welfare of local communities through responsible practices and initiatives.

These are just a few examples of the many green tourism certification programs available worldwide. By seeking out and supporting businesses with these certifications, travelers can have confidence in the sustainability and responsible practices of the establishments they choose to visit. These certifications also incentivize businesses to continually improve and uphold environmentally and socially sustainable practices within the tourism industry.

Case Studies of Green Tourism Success

Several destinations and businesses have successfully implemented green tourism practices, showcasing the positive impact that sustainability can have on both the environment and local communities. Here are a few inspiring case studies:

1. Costa Rica: Costa Rica has long been regarded as a leader in green tourism. The country has made significant strides in the conservation of its rich biodiversity and natural resources. Costa Rica implemented a payment for environmental services program that incentivizes landowners to protect and preserve forests. It also promotes sustainable agriculture, renewable energy, and eco-tourism initiatives. This dedication to sustainability has positioned Costa Rica as a top destination for eco-conscious travelers, contributing to the country’s economic growth and environmental preservation.

2. Soneva Resorts, Maldives: Soneva Resorts is a group of luxury resorts in the Maldives that has pioneered sustainable tourism practices. They prioritize waste reduction and have implemented initiatives such as on-site composting, water filtration and bottling plants, and a carbon offset program. Soneva Resorts also actively engages with local communities, providing employment opportunities and supporting education and healthcare initiatives. These efforts have not only minimized the environmental impact of their operations but have also positively impacted the well-being of local communities.

3. Grootbos Private Nature Reserve, South Africa: Grootbos Private Nature Reserve is an award-winning eco-lodge in South Africa. It focuses on conservation, sustainable land management, and community empowerment. The reserve offers guided tours that educate visitors about local flora and fauna, reforestation projects, and community development initiatives. Grootbos also supports local schools, provides training for community members, and contributes to the preservation of the unique Fynbos biome. Its commitment to environmental and social sustainability has made it a role model for responsible tourism in the region.

4. Glacier National Park, USA: Glacier National Park in Montana, USA, has implemented a range of sustainable practices to mitigate the effects of climate change and protect its pristine wilderness. The park encourages eco-friendly transportation by providing shuttle services and promoting cycling and hiking trails. It also focuses on waste reduction and recycling, energy efficiency, and the preservation of wildlife habitats. Glacier National Park serves as both a natural haven for visitors and an example of how protected areas can actively combat environmental challenges.

These case studies highlight the positive outcomes that can be achieved through the implementation of green tourism practices. From the conservation of natural resources to the support of local communities, these examples demonstrate the potential for sustainability to thrive within the tourism industry. By learning from these success stories, other destinations and businesses can be inspired to adopt and prioritize green tourism practices.

Challenges and Opportunities in Green Tourism

While green tourism brings numerous benefits, it also faces challenges that need to be addressed for the industry to continue its sustainable growth. At the same time, these challenges present opportunities for innovation and improvement. Here are some key challenges and opportunities in green tourism:

1. Awareness and Education: One of the main challenges in green tourism is the lack of awareness and understanding among both travelers and businesses. Many people are still unfamiliar with sustainable travel practices or the importance of choosing eco-friendly options. The opportunity lies in education and raising awareness about the benefits of green tourism. By providing information and promoting sustainable practices, the tourism industry can empower travelers to make more responsible choices.

2. Infrastructure and Technology: The availability of sustainable infrastructure and technologies is crucial for the growth of green tourism. However, implementing green infrastructure and adopting sustainable technologies can be challenging, particularly for smaller businesses and destinations. The opportunity lies in investing in renewable energy, efficient waste management systems, and eco-friendly transportation options. Collaboration between governments, businesses, and technology providers can help overcome these challenges and create more sustainable tourism infrastructures.

3. Balancing Conservation and Tourism: Sustainable tourism must strike a balance between meeting the needs of tourists and conserving natural and cultural assets. Managing visitor numbers, preserving delicate ecosystems, and mitigating the impact of tourism activities on local communities can be challenging. The opportunity lies in implementing responsible tourism practices, setting carrying capacity limits, and involving local communities in decision-making processes. By managing tourism sustainably, destinations can protect their unique assets while ensuring a positive and authentic travel experience.

4. Economic Viability: Green tourism initiatives can require upfront investments and may have higher operating costs compared to conventional practices. This can pose a challenge to businesses, particularly small and medium enterprises. However, green tourism also presents opportunities for new revenue streams and niche markets. Sustainable tourism practices can attract environmentally conscious travelers who are willing to pay a premium for a responsible travel experience. By focusing on innovative business models and promoting sustainability as a marketing asset, businesses can tap into the growing market of eco-conscious travelers.

5. Collaboration and Partnerships: Collaboration between various stakeholders, including governments, businesses, local communities, and non-governmental organizations, is essential for the success of green tourism. However, building strong partnerships can be challenging due to diverse interests, limited resources, and differing priorities. The opportunity lies in fostering collaboration and establishing platforms for dialogue and knowledge sharing. By working together, stakeholders can address common challenges, share best practices, and develop sustainable tourism strategies that benefit all parties involved.

By acknowledging and addressing these challenges, the tourism industry can embrace the opportunities presented by green tourism. Collaboration, innovation, education, and responsible practices are key to overcoming hurdles and creating a sustainable future for the industry.

Green tourism offers a transformative approach to travel, emphasizing sustainability, conservation, and responsible practices. It has the power to not only protect the environment and preserve cultural heritage but also bring economic benefits to local communities. By adopting green tourism practices, travelers can contribute to the well-being of the planet and make a positive impact on the destinations they visit.

Throughout this article, we have explored the definition of green tourism and its core principles. We have delved into the benefits of green tourism, including environmental conservation, socio-cultural respect, and economic viability. We have also examined various green tourism practices, such as sustainable transportation, eco-friendly accommodations, and responsible wildlife experiences.

Moreover, we have highlighted the importance of green tourism certification programs, which help travelers identify businesses committed to sustainable practices. We have provided case studies showcasing successful implementation of green tourism initiatives, as well as discussed the challenges and opportunities faced by the industry.

As we conclude, it is clear that green tourism is more than a trend; it is a necessary shift towards a more sustainable and responsible travel industry. The power to make a difference lies in the hands of individual travelers, businesses, and governments. By making conscious choices, supporting sustainable initiatives, and advocating for change, we can ensure the preservation of our planet’s natural and cultural treasures for future generations.

So, let us embark on our travel journeys with the principles of green tourism in mind. Let us strive to minimize our environmental footprint, respect local cultures, and support the well-being of host communities. Together, we can create a world where travel not only enriches our lives but also protects the world we call home.

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The report identifies green innovation in technologies and processes as a key feature of sustainable tourism in a green economy. On the basis of a survey of 27 countries, the report concludes that while government action is essential to support green innovation in tourism, there is no one-size-fits-all solution. The report provides an extensive overview of approaches taken by countries, and recommends a whole-of-government approach, including horizontal and vertical policy co-ordination, and closer integration of several policy areas, such as transport, energy and environment.

The report further discusses the results from the OECD/Nordic Innovation project on green business model innovation in tourism, which aims to guide tourism companies in greening their practices. The results show that, inter alia , only 15% of the participating companies demonstrate a strategic approach to business model innovation, and only 7% have a green innovation strategy.

The report also discusses drivers and barriers to green innovation in tourism, and finds that while a supporting policy framework and the business implications of environmental externalities are important drivers, the main barriers relate to financial resources to implement changes, customer reluctance to pay extra for green services, and a general lack of understanding of the value created from the greening of tourism. [Publication: Green Innovation in Tourism Services ]

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Green Marketing, Investment and Sustainable Development for Green Tourism

• First Online: 05 January 2022

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• Md. Nekmahmud 2 &
• Maria Fekete-Farkas PhD 3  

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Green tourism, a rapidly rising popular concept among tourists, investors, and other stakeholders in both developing and developed countries, offers sustainable, environmentally friendly, and socially responsible tourism services. This study aims to discuss the present scenario of the investment on green tourism and explains important driving forces for sustainable development of the tourism industry in the context of developing country’s concept such as Bangladesh. It also describes green marketing, promotional mix, investment policy in the green tourism industry, and sustainable tourism development (STD) in Bangladesh. Besides, this chapter highlights the ways and the reasons that government reacts to actual or potential investments on green tourism development in terms of environmental and sustainable development. In methodology, a qualitative sampling study by a systematic literature review analysis was conducted. More particularly, the PRISMA statement is used to comprehensively evaluate green marketing, green tourism, and sustainable tourism development in developing countries, reviewing 70 research papers in Scopus and Web of Science database. The systematic literature review and findings of the chapter are expected to encourage new investors, tourist agencies, financial institutions, and governments to raise investments on green tourism aiming towards providing customized green tourism service. Green tourism contributes to economic growth and protecting the environment and culture of tourist areas. Finally, the practical significance and recommendations are discussed in the concluding section.

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Nekmahmud, M., Fekete-Farkas, M. (2021). Green Marketing, Investment and Sustainable Development for Green Tourism. In: Hassan, A. (eds) Tourism in Bangladesh: Investment and Development Perspectives. Springer, Singapore. https://doi.org/10.1007/978-981-16-1858-1_21

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Six trends shaping new business models in tourism and hospitality

As destinations and source markets have changed, tourism and hospitality companies have evolved too. Six key trends have shaped business models in this sector over the past decade.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure practice.

In accommodation, asset-light models like franchising and management have proliferated, though luxury and small-scale brands are opting out. Consolidation has driven economies of scale. Hotels are looking to reclaim their relationship with guests, and almost two decades in, home sharing is charting its own course.

In the experiences space, reinvention is the name of the game. Cruises and theme parks have both focused on attracting new demographics while fine-tuning their revenue management strategies. Experiences remains a highly fragmented, legacy sector, creating massive opportunity for those able to crack the code on aggregation.

By considering the six trends, tourism and hospitality companies can gain insights on business practices for today—and on areas of future opportunity.

Accommodation: New models and value propositions

Large hotel brands have increasingly turned away from hotel ownership, scaling their business through franchising and management instead. The move is paying off. We find there is a 0.84 correlation between a hotel company’s share of franchised properties and its net profit margin.

Not all of hospitality is embracing asset-light model, however. Luxury hotel chains have resisted the trend, largely retaining in-house ownership to control standards. And smaller brands may find that they cannot reach the economies of scale that make the math of a franchise business work—focusing instead on creating distinctive experiences on a smaller scale.

Consolidation set the stage for the past decade. Several hotel brands quickly grew their foothold in key geographies and customer segments through strategic acquisitions, achieving economies of scale along the way.

As major hotels take a breather from a series of substantial acquisitions, further mergers between large hotel brands seem unlikely. However, tuck in acquisitions to target key growth demographics, like the luxury and youth categories, are likely to continue.

Another trend on the horizon is direct booking. Long reliant on online travel agencies, hotels are looking to reclaim their relationships with customers—both to cut down on intermediary booking fees and to learn more about their guests. Hotels are encouraging direct bookings through a variety of levers, ranging from best-rate guarantees to higher reward-earnings rates and improved mobile applications. 1 For example, Hyatt offers a best-rate guarantee for booking on hyatt.com and Marriott International is growing direct bookings. For more, see “Marriott sees record direct bookings at its hotels,” Skift, May 4, 2022.

Home sharing is here to stay. The segment has grown from 10 to 14 percent of booking value between 2017 and 2023, experiencing ups and downs in profitability along the way.

Recently, home sharing has positioned itself as more than a stand-in for traditional hotels. Airbnb’s recent advertising campaign “Get an Airbnb” leaned into the differences of home sharing from other hospitality offerings, emphasizing the space and privacy that renting a house can offer. 1 Samantha Shankman, “‘Get an Airbnb’ campaign challenges hotels,” Skift, August 30, 2023.

Home-sharing companies have also become a key distribution channel for smaller hotels, as they can offer more control over inventory and lower fees than other channels. In 2019, Airbnb reported a 152 percent increase in the number of rooms available for booking through its platform in boutique hotels, bed and breakfasts, and resorts. 2 “More hotels are using Airbnb,” Airbnb news release, January 16, 2019.

Experience providers: New segments and revenue streams

Cruises may only account for 2 percent of the overall travel and tourism market, but they have achieved 6 percent yearly revenue growth in the past decade. 1 McKinsey analysis of publicly listed tourism and hospitality companies’ Form 10-Ks. Attracting new travelers and providing new experiences have been key growth strategies.

Luxury hotels are capturing the new-to-cruising segment with the launch of yacht brands, purposefully positioned as a distinct experience from traditional cruises. Meanwhile, millennials are challenging stereotypes about cruising: of all cruise passengers, they are the demographic most likely to say they plan to cruise again (88 percent). 2 State of the cruise industry 2023: September 2023 update, CLIA, September 2023.

In parallel, cruises have fine-tuned their profitability through economies of scale and new revenue streams. Megaships have become the new normal, as ships with over 3,000 berths have grown from 27 to 47 percent of the global cruise fleet since 2015. Ancillary purchases such as onshore excursions and onboard casinos have also become a major source of growth, now accounting for 30 percent of revenue on average. 3 Calculated using the weighted average based on 2023 Form 10-Ks statements of publicly listed cruise companies.

Theme park attendance has grown 3 percent a year over the past decade, as theme park providers capitalize on new demographics and refine their revenue management strategies. 1 Global attraction attendance report , joint report from AECOM and Themed Entertainment Association, 2019.

Two new groups of visitors in particular are powering growth. First, the Asia–Pacific region accounted for much of the growth in theme park attendance in the past decade: of the total number of new visitors between 2013 and 2018, 57 percent were from Asia. Second, millennials are heading to parks in greater numbers, and not just for their children. A similar proportion of millennial parents (78%) and millennial nonparents (75%) say they are interested in going to a theme park. 2 Morning Consult survey, 2,201 participants, June 14–19, 2018.

To increase value from growing attendance, theme parks have become increasingly sophisticated in the field of revenue management. Demand-based pricing, tiered annual passes, and skip-the-line fees are all poised to go from pioneering to widespread practices.

Experiences are increasingly important to travelers, but the segment remains a highly fragmented space. Operators of activities ranging from walking tours to snorkeling outings tend to be small businesses with a limited digital presence.

This has created an opportunity for tech-forward companies to help travelers discover and book experiences. Destination marketing organizations have long played a role in this. For instance, VisitScotland helps visitors discover interesting activities like attending Harry Potter filming locations and whiskey tastings.

Several private companies that offer online discovery and booking platforms for travel activities, like Viator, GetYourGuide, and Klook, have achieved considerable growth in the US, European, and Asian markets. 1 Yeoh Siew Hoon, “GetYourGuide gets into pole position to win in $250b experiences market,” WIT, September 20, 2023. GetYourGuide grew its revenue fourfold between 2022 and 2023, Viator revenue was up 49 percent for the same time period, and Klook reported twice as many new customers in 2023 as in 2019. 2 “Klook completes US$210 million funding, embarks on a new era of profitable growth,” Klook news release, December 6, 2023; Mitra Sorrells, “With speculation of a sale in the air, Tripadvisor reports record revenue driven—again—by Viator,“ Phocus Wire, February 14, 2024.

Looking forward: Strategies to stay ahead of the curve

Where does this leave tourism and hospitality companies? Companies in any given sector tend to follow a power law curve : a small share of companies account for an outsize portion of both profits and losses. The tourism and hospitality sector is no different.

Over the past decade, publicly listed accommodation and experience providers grew revenue at 3 percent and 4 percent, respectively, roughly in line with global GDP growth. Accommodation providers increased their profits by five percentage points, while experience providers remained at an 18 percent average profit margin.

As stakeholders gear up for the next decade, there are things that businesses across the sector can do to sustain their hard-won growth—and profits. Moving forward, three strategies in particular can help tourism and hospitality companies stay on the leading edge of innovation.

Unbundle offerings

Hotel and experience providers can take a page from the airline playbook by unbundling rates and letting consumers pay for the exact experience they want. For example, at the time of booking, hotels can present guests with an individually priced bundle for a room on a higher floor, including breakfast and free parking—features that the guest’s past behavior suggests they would particularly value. Ensuring that guests can find their ideal room can lead both to increased revenue and increased satisfaction. A major hotel brand reported that guests chose to spend an additional $22 per night, on average, to customize their hotel room to their liking. 1 “IHG Hotels & Resorts revolutionizes booking experience through next-gen cloud solutions,” InterContinental Hotels news release, September 12, 2023.

Cross-sell exclusive experiences

For accommodation and transportation companies, partnering with experience providers to cross-sell a full journey provides an opportunity to tap into a growing area of traveler spending—and a chance to deepen the relationship with customers as a vacation creator. For example, airlines can partner with museums to offer discounted rates if booked at the time of the flight, or hotels can partner with a historical site nearby to offer early-hours admission. For uptake rates to become significant, the partnership needs to add value beyond mere cross-selling. Offering features like insurance or an option to buy now and pay later is one way to add value; creating a distinctive experience like a combined train and historic hotel journey is another.

Embrace a data-powered strategy

Tourism and hospitality entities individually hold a treasure trove of untapped data. Take Paris: hotels may see a surge in bookings for the “shoulder season.” Experience aggregator platforms might see that street food tours have attracted rising interest. Social media might reveal that a particular neighborhood is exploding in popularity. What special guest experiences could be created by combining these insights? Stakeholders can unlock new revenue streams by thinking through what data they hold that can be of value to others. More broadly speaking, combining multiple sources of data can help guide a strategy of unbundling and cross-selling to create more gratifying and pertinent experiences for travelers around the world. Embracing data isn’t just smart—it’s the future of travel.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Sophia Wang, Steffen Fuchs, Steffen Köpke, Steve Saxon, and Urs Binggeli for their contributions to this article. The authors also wish to thank Mabrian for providing data.

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Accelerating Green Investment in Tourism for Sustainable Development

• All Regions
• 19 Oct 2023

UNWTO has put tourism on the agenda of the World Investment Forum, the biggest investment gathering led by the United Nations.

In partnership with the Forum's organizers, the United Nations Conference on Trade and Development (UNCTAD), UNWTO held a special high-level dialogue that brought together both the investment and tourism communities.

Investment Framework for Tourism

At the " Accelerating Green Investment in Tourism for Sustainable Development " side event, UNWTO presented its new comprehensive tourism investment framework  focused on innovation, education and sustainability for a more comprehensive economic development. Alongside this, UNWTO also announced that it will partner with UNCTAD to provide a set of Guiding Principles for Tourism Investment in Sustainable Tourism. These will help stakeholders from every part of the sector implement the framework and further boost investments in tourism, one of UNWTO's core priorities for the sector.

Solutions for Transition

The high-level debate made clear the need for solutions to unlock finance, accelerate green investments in tourism and contribute to sustainable development, particularly relevant as the UAE prepares to host the COP28 climate conference next month.

The dialogues stressed the vital need for a sustainable transition, not just for the planet, but also for tourism itself, for boosting competitiveness and increasing resilience, while emphasised the need of a robust and supportive investment policy framework. Central to this will be delivering additional green investments (traditional and non-traditional), financing and enhancing innovation and technology is much needed in the tourism sector to support and accelerate this transformation. Additionally, the importance of investing in human workforce and specific skills development at every level of education was underlined within the context of green transition.

Moreover, the crucial role of non-traditional investments in enhancing innovation through the creation and diffusion of technologies and mobility startups with the power to decarbonize and unlock new business models and accelerate the green transition was outlined during the discussion.

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