June 18, 2024
Sustainable Tourism Market

Sustainable Tourism Market is Estimated to Witness High Growth Owing to Growth in Eco-Friendly Tourism Practices

The sustainable tourism market has experienced steady growth in recent years owing to rising concerns over environmental sustainability and an increasing preference among travelers for eco-friendly tourism practices and activities. Sustainable tourism aims to minimize pollution and waste while providing economic opportunities and social benefits to local communities. Some of the key products and services in the sustainable tourism industry include ecotourism, rural tourism, community tourism, volunteer tourism, and adventure tourism.

The global sustainable tourism market is estimated to be valued at US$ 2.61 Bn in 2024 and is expected to exhibit a CAGR of 18.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the sustainable tourism market are Wilderness Safaris, Basecamp Explorer AS, Wild Frontiers Adventures Travel, Beyonder Experiences, Bouteco, Cheeseman’s Ecological Safaris, G Adventures Inc., Gondwana Ecotours, Inkaterra, Intrepid Group Pty Limited, LooLa Adventure Resort, NATIVE TOURS, INC., Natural Habitat Adventures, Responsible Travel, Row Adventures, Sustainable Tourism Market Share Travel International, Tourism Holdings Limited, Undiscovered Mountains, and Vagabond Tours Limited.

The sustainable tourism industry offers significant opportunities for economic growth and empowerment of local communities. Many destinations are promoting rural and community-based tourism to provide alternative livelihood options to residents. There is also a growing demand for volunteer and socially-responsible tourism experiences.

Technological advancements like blockchain and AI are enabling greater traceability of sustainable practices in the tourism supply chain. Geo-tagging and remote sensor technologies are being used to monitor the environmental impact of tourism activities. Virtual and augmented reality solutions are also enhancing educational and interpretive experiences for ecotourists.

Market Drivers

The key driver boosting the sustainable tourism market is the growing awareness among travelers about responsible travel and its impact on the environment and local societies. Major international organizations are promoting sustainable tourism as a tool for rural development and poverty alleviation. Stringent government regulations in many countries regarding pollution control and waste management are also compelling tourism operators to adopt eco-friendly practices. The long-term sustainability of destinations is another important factor encouraging stakeholders to transition to green tourism models.

Current challenges in sustainable tourism market

The global sustainable tourism market faces several challenges currently. The key challenges are lack of widespread awareness and adoption among travelers as well as tourism operators. While the concept of sustainable and eco-friendly practices is gaining traction, there is still a long way to go in terms of making it the norm. Various certifications and standards have led to some confusion as well. Traceability of sustainability claims along the vast tourism value chain also poses difficulties. High initial investments deter new entrants as well.

SWOT Analysis

Strengths: Growing health and environmental consciousness is driving demand. Practice helps conserve fragile ecosystems and support local communities.

Weaknesses: Higher costs than conventional tourism. Lack of standardized definitions and measurements.

Opportunities: Opening of untouched locations adhering to sustainability. Developing countries see it as a means to boost tourism revenue.

Threats: Natural calamities pose risks. Economic slowdowns can dampen travel spending.

Geographical Regions of Market Concentration

Currently, the European region accounts for the largest share of the sustainable tourism market in terms of value. Countries such as Sweden, Norway, Finland, and Iceland have been pioneering eco-friendly practices in their tourism sectors for several decades. The presence of pristine natural locales and a population cognizant about sustainability issues has boosted the region’s market size.

Fastest growing region

The Asia Pacific region is projected to witness the fastest growth in the sustainable tourism market over the forecast period from 2024 to 2031. The increasing tourism activities in countries such as China, Thailand, Malaysia, and Indonesia coupled with initiatives toward green development are driving the market in the region. Rising incomes and the desire to travel among the expanding middle class also contribute to the growth momentum.

*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.