June 21, 2024
Sustainable Tourism Market

Sustainable Tourism Market Witnesses High Growth on Rising Environmental Concerns

Sustainable tourism refers to visiting areas in a way that least impacts the environment and local culture, while helping to generate future employment for local people. Sustainable tourism aims to operate in a low-impact way while supporting local communities. It involves local people in decision-making to ensure long-term sustainability measures are integrated in all aspects of the tourism value chain. The sustainable tourism market is gaining traction as it focuses on reducing pollution and conserving natural and cultural resources.

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: Key players operating in the sustainable tourism market include 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.

Key opportunities: Growing global tourism coupled with rising focus on sustainability and eco-friendly tourism provides huge growth opportunities to sustainable tourism operators. Developing countries offer significant potential to be tapped for community-based and eco-friendly tourism experiences.

Global expansion: Leading operators are expanding their portfolio and global presence to cater to growing demand from international travelers looking for unique local experiences in less explored destinations while also contributing to local communities. Partnerships with local operators help gain scalability while enriching sustainable tourism offerings.

Market Drivers:
The key drivers for the sustainable tourism market include rising environmental concerns boosting demand for low-impact travel experiences, willingness to pay premium for unique responsible travel options among affluent tourists, growing focus on community-based and eco-tourism by developing nations, and availability of funding and partnerships to strengthen sustainable infrastructure.

PEST Analysis

Political: Governments around the world are increasingly promoting sustainable tourism practices and regulations to protect natural and cultural heritage sites. Some offer incentives like tax benefits for businesses that adopt sustainable practices.

Economic: Rising environmental concerns and focus on responsible consumption are driving growth in sustainable tourism. Demand for experiential and socially impactful trips is increasing as travelers look to minimize their footprint.

Social: Younger generations especially are more aware of environmental issues and prefer vacation activities that integrate local communities and cultures. Social media promotes responsible operators and helps build brands committed to sustainability.

Technological: Digital platforms help operators manage resources efficiently and engage customers in conservation efforts. Technologies like electric vehicles, renewable energy solutions and smart waste management systems lower the carbon footprint of tourism businesses. Geo-tagging also aids in monitoring impacts.

Europe remains the largest regional market for sustainable tourism in terms of value owing to presence of popular natural destinations across countries like France, Italy, Spain and the United Kingdom. Travelers have increasing awareness about responsible operations and are willing to pay premium for environment-friendly services.

The Asia Pacific region is projected to be the fastest growing market during the forecast period. Rapid economic growth, rising disposable incomes, increasing preference for unique experiences and spread of sustainability concepts drive demand. Countries such as India, Indonesia, Thailand and Vietnam offer abundant opportunities for community-based and eco-tourism ventures. Initiatives by governments and operators enhance the development of sustainable tourism sector in the region.

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