Sustainable Tourism Market Size (2024 – 2030)

In 2023, the Global Sustainable Tourism Market was valued at $2.5 trillion, and is projected to reach a market size of $6.26 trillion by 2030. Over the forecast period of 2024-2030, market is projected to grow at a CAGR of 14%.

According to the World Tourism Organization, sustainable tourism addresses the demands of travelers, the travel industry, the environment, and host communities while fully accounting for its present and future effects on the economy, society, and environment. This market has seen good growth over the past decade owing to rising awareness and governmental initiatives. Currently, with economic developments, certifications, and promotion from the tourism and wellness industries, this market is expanding. In the future, with a focus on innovations and policy changes, this market will progress tremendously. During the forecast period, a considerable growth rate is anticipated.

Key Market Insights:

There was a 142.6% rise in online searches for sustainable travel between April 2019 and April 2022.

78% of travelers surveyed about their travel intentions for 2023 said they intended to stay in environmentally friendly lodging this year.

To boost the regional economy, 42% of travelers make it a point to buy at small businesses.

For meals and room service, 27% of respondents would prefer to utilize reusable plates and utensils.

Approximately 38% of individuals prefer luxurious accommodations. Therefore, awareness is being spread through social media and programs amongst the people as well as the dwelling residences to implement sustainable systems.

Sustainable Tourism Market Drivers:

The expansion is being driven by rising customer demand and awareness.

As per Statista, global transport-related CO2 emissions from tourism are expected to increase from 2016 levels by 25% by 2030, or from 1597 Mt to 1998 Mt of CO2. It is predicted that by 2030, the increase in CO2 emissions from transport connected to tourism will account for 5.3% of all emissions caused by human activity globally. This figure has raised awareness amongst the public about the environmental impact the tourism industry causes. Tourists are increasingly seeking eco-friendly accommodations. Along with this, other steps like the usage of recycled or recyclable foodware, supporting the local communities, protecting the flora and fauna, traveling by bicycle as well as public transport, saving energy, and minimizing waste are being taken. Besides, the wellness and tourism industries have been setting up various trends to promote these practices. This includes a zero-waste policy. This demand has been helping businesses switch to practices that align with the values of environmentalists.  

Initiatives by industries are contributing to the success.

Accommodations have increased the usage of LED lights since they are cost-effective and reduce the carbon footprint. This helps with energy conservation. Secondly, recycling practices are being implemented. This includes glass, paper, and cand, which are frequently used by travelers. Thirdly, water filling stations are on the rise to reduce the use of plastic and buy other water bottles. Adoption of electric vehicles is increasing due to their economic friendliness. To keep up with this, electric charging stations are being promoted. Aside from utilizing intelligent technology, eco-friendly bedding and sustainable furnishings are being used. Furthermore, stocking natural and organic free-trade shampoos as well as soaps in biodegradable packaging from certified green producers for the bathroom is being implemented.

Sustainable Tourism Market Restraints and Challenges:

Costs, restricted knowledge, and a lack of resources are the main issues that the market is currently experiencing.

One of the significant barriers in this market is the associated expenses. Initial investments in smart technologies, energy resources, and other infrastructure are very high. Small and medium-scale organizations can be demotivated by this. Additionally, maintenance charges further add up. Secondly, limited awareness might hinder growth. With changing lifestyles and preferences, people are leaning towards living a luxurious life. In this process, they might be negligent about the environment. Few people purchase 3–4 cars for a single household. This further takes a toll, causing damage. Moreover, infrastructure limitations in remote and underdeveloped areas can hamper progress. Accessibility to these resources can be difficult due to economic conditions and inefficient systems.

Sustainable Tourism Market Opportunities:

The sustainable tourism industry may provide the surrounding community with several advantages. Enhancing the economic well-being of the region, creating jobs, boosting income status, and giving players a role in the design and implementation of tourism are a few of the major possibilities. Besides this, the Global Sustainable Tourism Council has approved the Green Star Hotel (GSH) as a national green certification and capacity-building program (GSTC). Through a capacity-building program that includes informational meetings and training for interested hotels, GSH seeks to promote sustainable tourism. Upon successful completion of program requirements, participating hotels are awarded GSH accreditation. Furthermore, social media marketing assists travelers and tourists in promoting local cultures and, occasionally, by acting as a mediator, in raising awareness of the social needs in these cultures. El Gouna, a resort town, was the first in Africa and the Arab world to win the UN-sponsored Global Green Town award, which recognizes significant efforts and advancements made towards environmental sustainability and a more environmentally conscious community. In El Gouna, over 85% of garbage is recycled and repurposed, resulting in a zero-waste system.

SUSTAINABLE TOURISM MARKET REPORT COVERAGE:

Sustainable Tourism Market Segmentation: By Destination Type

• Coastal

• Mountain

• Others

Coastal destinations are both the largest and fastest-growing type in this market. This is because this area is surrounded by water bodies, aquatic life, and sporting adventures. Therefore, it becomes vital to adopt sustainable practices to make sure that the ecosystem is not exploited. Besides, these regions have a rich local culture and history, attracting a broader consumer base. Apart from this, beaches, lakes, and other water bodies are known to reduce stress and anxiety, providing peace of mind. This helps generate more profits by attracting a greater percentage of tourists.

Sustainable Tourism Market Segmentation: By Tour Type

• Domestic

• International

Based on tour type, the domestic segment is the largest in this market. This is mainly because of the budget-friendliness associated with this category. This can be concerning transportation, accommodation, and other tourist charges. Besides, governmental agencies in various nations have begun to implement various initiatives and programs to promote sustainable tourism. Additionally, social media has created awareness about local cultures and their intricacies. However, the international segment is the fastest-growing. This is because of global operations, demand for foreign travel, economic improvements, collaborations between companies, and various schemes. Furthermore, with rising awareness about sustainability, people are preferring places that incorporate these practices. This is helping to strengthen the economies of these regions.

Sustainable Tourism Market Segmentation: By Tourist Type

• Solo

• Family & Group

The family and group segment is the largest in this market, holding a share exceeding 50%. This involves parents, children, relatives, strangers, friends, and other extended family members. More families are increasingly seeking eco-friendly tourist spots and experiences. However, solo travel is the fastest-growing. This is because of recent trends and the demand for independent travelers. This segment comprises a lot of teenagers and adults. These travelers have been choosing eco-friendly practices and accommodations. Moreover, a career in travel content creation has garnered immense attention. People can monetize money through their content and endorse various businesses that implement sustainable practices. This aids in the creation of better awareness.

Sustainable Tourism Market Segmentation: By Booking Type

• Offline Booking

• Online Booking

With a market share of almost 60%, the in-person booking category is the largest among all booking types. Face-to-face communication, trust, testimonials, haggling, demand, and convenience are the reasons behind this. The online booking segment is the fastest-growing among all booking types. Reviews, costs, digitization, accessibility, price comparison, user-friendly upgrades, demand, and convenience are the reasons behind this.

Sustainable Tourism Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America is the largest region in this market, holding a rough share of 31%. Countries like the United States and Canada stand at the forefront. This is owing to technological advancements, economic stability, investments, the presence of companies, demand, awareness, and an increase in travel activities. Popular North American regions include the Bahamas, Florida, Haida Gwaii, Hawaii, and Georgia. Asia-Pacific is the fastest-growing region due to rising initiatives by governments, demand, innovations, adoption, emerging startups, and urbanization. Australia, Bhutan, Thailand, and Cambodia are at the top. This region holds a share of around 24%. Europe is also among the dominant regions, with countries like Iceland, Finland, Sweden, and Austria at the top. This is because of the eco-friendly measures that are implemented and the creativity of various companies.

COVID-19 Impact Analysis on the Global Sustainable Tourism Market:

The outbreak of the virus had a mixed impact on the market. Due to this, the travel and tourism industry had to be shut down to prevent of spreading of the virus. People were unable to travel to nearby places due to guidelines and protocols. Besides, most of them were afraid to step out. The transportation line was disrupted. However, the pandemic also highlighted the importance of living a sustainable life. Many of them started to indulge in small practices, which had a huge positive impact. One such instance was supporting local trade activities. Post-pandemic, awareness grew about protecting our environment. A new Booking.com analysis states that 61% of respondents stated that the epidemic has motivated them to travel more responsibly in the future. This is likely due to their desire to make positive changes in their lives overall, such as cutting back on single-use plastics and food waste.

Latest Trends/ Developments:

The companies in this market are motivated to achieve a higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. Companies are also spending heavily to improve existing technologies while maintaining competitive pricing. This has further resulted in increased enlargement.

Emerging investments include solar windows, which use the panes of windows to function as solar panels to generate energy, and energy floors, which use movement to create energy. The Marriott group of hotels is investing in this technology.

Key Players:

1. TUI Group

2. Accor

3. Intrepid Travel

4. Six Senses

5. Marriott International

6. G Adventures

7. Hilton

8. Expedia Group

9. Booking Holdings

10. Airbnb

• In January 2023, the Ministry of Tourism, in collaboration with the Indian Institute of Tourism and Travel Management (IITTM), UNEP, and the Responsible Tourism Society of India (RTSOI), organized the second regional workshop on the development of sustainable and responsible tourist destinations in Kolkata to advance sustainable tourism in the nation. Senior government representatives and representatives of the travel industry from the Eastern region's states and union territories—Andaman & Nicobar Islands, Bihar, Jharkhand, and West Bengal—participated in the workshop in large numbers.

• In October 2022, Massimo Ferdinandi, the Republic of San Marino's ambassador to ASEAN, paid Deputy Secretary-General of ASEAN for ASEAN Economic Community Satvinder Singh a courtesy visit. They talked about opportunities for collaboration and synergy, and they presented a potential cooperative initiative to introduce European tourists to lesser-known ASEAN sustainable tourism locations.

• In January 2022, Turkey and the Global Sustainable Tourism Council (GSTC), the leading global forum for sustainability and the environment, inked a cooperation agreement. Through the agreement, the National Sustainable Tourism Scheme and formal GSTC status will be introduced by Turkey and GSTC. The Turkish tourist sector will expedite its worldwide sustainable practices because of the new program.