May 21, 2024
Sustainable Tourism Market

Sustainable Tourism Market is Estimated to Witness High Growth Owing to Growing Environmental Concerns

The sustainable tourism market encompasses experiential travel that creates positive economic, environmental, and cultural impacts. Some of the key products in the market include eco-lodges and resorts, rural tourism, sports and adventure tourism, volunteering tourism, and community tourism. Sustainable tourism enables travelers to experience local cultures in a responsible and beneficial way for the local economy and environment. The growing demand for environmentally-friendly and socially-aware travel experiences is driving more travelers to opt for sustainable tourism activities. The Global sustainable tourism market is estimated to be valued at US$ 8.73 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 Global Sustainable Tourism Market Share 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 Travel International, Tourism Holdings Limited, Undiscovered Mountains, and Vagabond Tours Limited.

The growing awareness about responsible travel and the significant health and wellness benefits of eco-friendly experiences are driving significant growth opportunities in the sustainable tourism market. Tourists are increasingly seeking out unique cultural experiences, wildlife encounters, and adventure activities offered through sustainable tourism operators. In addition, rapid advancements in digital booking platforms are making it easier for travelers to find and book sustainable tours and activities.

Technological innovations centered around blockchain, virtual reality, and augmented reality are also helping sustainable tourism operators offer immersive experiences with minimal environmental impact. For instance, virtual tours enable travelers to experience destinations remotely before visiting physically. Blockchain applications help track supply chain data and certify sustainable credentials.

Market Drivers
The major driver for the sustainable tourism market is the increasing demand from environmentally-conscious consumers for eco-friendly travel options. According to studies, tourism is responsible for around 8% of global carbon emissions, so there is a mounting need to mitigate tourism’s environmental footprint. Sustainable tourism supports local biodiversity and economies while reducing pollution. The United Nations has also highlighted sustainable tourism as a key contributor to achieving development goals linked to poverty alleviation, climate action, and environmental protection.

Current Challenges in Sustainable Tourism Market
The sustainable tourism market is still at a nascent stage and faces numerous challenges. There is lack of awareness among travelers about the basic principles of sustainable tourism and its long term benefits. Many travelers are ignorant about the environmental and social impact of their travels. The sustainable tourism business model requires higher initial investments and operational costs. Profit margins tend to be lower compared to mass tourism. There is lack of coordination between various stakeholders like local communities, tourism boards, authorities and private operators. Standardization of metrics to measure sustainability is still evolving.

SWOT Analysis
Strength: Growing consumer preference for experiential and responsible travel. Increased focus on minimizing environmental footprint.
Weakness: Higher costs and limited scale of operations. Sustainable options still remain niche compared to conventional tourism.
Opportunity: Growing global interest in nature and heritage preservation. Developing countries see it as tool for community upliftment and self-employment.
Threats: Economic slowdowns can impact discretionary spending on experiential travel. Growing remote working may shift preferences away from destinations.

Geographical Regions
Europe accounts for the largest share in terms of value in sustainable tourism market currently. Countries like Sweden, Norway, Finland and Switzerland have been pioneering sustainable travel for decades. Their pristine natural beauty and well-developed ecotourism infrastructure have made them top destinations.

Asia Pacific region is expected to be the fastest growing market during forecast period. Countries like India and Indonesia are stepping up efforts to promote rural tourism, adventure sports and volunteer travel as means of sustainable livelihood. Sustainable tourism products that combine cultural sights with greenery are gaining popularity among global travelers to Asia.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it