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The Importance of Tourism on Economies and Businesses

Published: 3/26/2019 12:21:08 PM

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Tourism is vital for the success of many economies around the world. There are several benefits of tourism on host destinations.  Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.

The number of jobs created by tourism in many different areas is significant. These jobs are not only a part of the tourism sector but may also include the agricultural sector, communication sector, health sector, and the educational sector. Many tourists travel to experience the hosting destination’s culture, different traditions, and gastronomy. This is very profitable to local restaurants, shopping centers, and stores. Melbourne, Australia ’s population is greatly affected by tourism. It has a population of around 4 million people and around 22,000 citizens are employed by the tourism sector only.

Governments that rely on tourism for a big percentage of their revenue invest a lot in the infrastructure of the country . They want more and more tourists to visit their country which means that safe and advanced facilities are necessary. This leads to new roads and highways, developed parks, improved public spaces, new airports, and possibly better schools and hospitals. Safe and innovative infrastructures allow for a smooth flow of goods and services. Moreover, local people experience an opportunity for economic and educational growth.

Tourism creates a cultural exchange between tourists and local citizens. Exhibitions, conferences, and events usually attract foreigners. Organizing authorities usually gain profits from registration fees, gift sales, exhibition spaces, and sales of media copyright. Furthermore, foreign tourists bring diversity and cultural enrichment to the hosting country.

Tourism is a great opportunity for foreigners to learn about a new culture, but it also creates many opportunities for local citizens . It allows young entrepreneurs to establish new products and services that would not be sustainable on the local population of residents alone. Moreover, residents experience the benefits that come with tourism occurring in their own country.

To learn about the countries earning the most from international tourist arrivals, click on the link below!

Countries Earning the Most from International Tourism

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How Does Tourism Benefit Local Communities?

Tourism is a thriving industry that not only brings in visitors from around the world but also has significant positive impacts on local communities. While the economic benefits of tourism are well-known, its contributions to social, cultural, and environmental aspects are often overlooked. This article will explore how tourism can catalyze sustainable development and create a range of advantages for local communities.

Economic Growth and Job Creation: One of the most apparent benefits of tourism is its role in generating economic growth and employment opportunities. Tourists visit a destination and spend money on accommodation, transportation, food, shopping, and various services. This expenditure stimulates the local economy, increasing business activities and new jobs. Hotels, restaurants, tour operators, and local artisans are among the many businesses that directly benefit from the influx of tourists.

Preservation of Cultural Heritage: Tourism plays a significant role in preserving and promoting the cultural heritage of local communities. Visitors are often eager to explore a destination's unique traditions, customs, and historical sites. This creates a demand for cultural experiences, encouraging locals to preserve their traditions and showcase their heritage. By valuing their cultural assets, communities are motivated to protect historical landmarks, monuments, festivals, and traditional craftsmanship, which might have been neglected or forgotten.

Community Development and Infrastructure Improvement: Tourism can lead to the development of community infrastructure and public services. The revenue generated from tourism can be reinvested in improving transportation networks, healthcare facilities, educational institutions, and public spaces. This benefits tourists and enhances the quality of life for local residents. Additionally, the need to provide a positive visitor experience can encourage communities to invest in better facilities, amenities, and attractions, which ultimately benefit both tourists and locals alike.

Encouragement of Small Businesses and Entrepreneurship: The tourism industry allows small businesses and local entrepreneurs to thrive. Locals can establish their guesthouses, homestays, restaurants, tour companies, souvenir shops, and other tourism-related enterprises. This fosters entrepreneurship and empowers individuals within the community, promoting self-sufficiency and economic diversification. The growth of small businesses contributes to a more balanced and sustainable local economy, reducing dependency on a single industry.

Cultural Exchanges and Social Understanding: Tourism acts as a bridge for cultural exchange, fostering greater understanding and appreciation between visitors and locals. When tourists engage with the community, they gain insights into the local way of life, traditions, and customs. Similarly, locals can learn about different cultures, perspectives, and values. These interactions promote mutual respect and tolerance, breaking down stereotypes and fostering a sense of global citizenship.

Environmental Conservation and Sustainable Practices: Tourism can also drive environmental conservation and sustainable practices. Destinations with natural attractions often rely on preserving their environment to attract tourists. This incentivizes local communities to protect and conserve their natural resources, such as forests, wildlife, and marine ecosystems. Sustainable tourism practices, including responsible waste management, energy conservation, and eco-friendly initiatives, can benefit the environment and the community's long-term well-being.

RELATED: Train Your Tourism Ambassadors

Conclusion: Tourism brings many benefits to local communities beyond economic gains. It contributes to cultural preservation, infrastructure development, entrepreneurship, social understanding, and environmental conservation. By embracing sustainable tourism practices and involving local communities in decision-making processes, we can ensure that the positive impacts of tourism are maximized while minimizing its potential negative consequences. As travelers, we have the power to support and promote tourism that benefits local communities, ultimately creating a more inclusive and sustainable world.

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How Tourism Benefits Nature and Wildlife

The Great Barrier Reef. Yellowstone. The Amazon Rainforest. One of the top reasons that tourists are drawn to destinations such as these is because of their rich biodiversity and unique landscapes.

According to Brand USA,  2 of the top 5 motivators  for selecting vacation spots are ecotourism and nature. Wanderlusters are seeking experiences that reflect the  true  essence of the places they are visiting. In other words, they want to visit places with unspoiled environments and thriving native wildlife.

We often hear about all of the ways that humans are destroying wild places and jeopardizing the health of the planet – and rightfully so. Over  75%  of land environments have been severely altered by humans and species are facing extinction at up to  1000x  the natural rate. While there’s no denying that irresponsible tourism contributes to this devastation, we shouldn’t overlook the important role that sustainable and well-managed tourism plays in advancing conservation and protecting our world’s treasured ecosystems. These benefits have only been further evidenced by the current COVID-19 crisis and the resulting halt in tourism.

In this blog post we’ve highlighted just a handful of the different ways that tourism benefits nature and wildlife. Read on to learn more!

Increasing Community Support for Conservation

Over the last decade, nature-based tourism has become increasingly popular.  In total, wildlife tourism now supports nearly  22 million jobs  around the world and contributes more than $120 billion to global GDP.

This growing interest in wildlife tourism, and the economic benefits that come along with it, can change community attitudes towards conservation. Without tourism, local communities may merely view wild animals as a danger to their farms and families, and only value natural resources for consumption. But when animals and natural areas bring tourism dollars and jobs to their community, it can help residents see the importance of keeping their natural assets intact and healthy.

In Cambodia, for instance, ecotourism is motivating communities to conserve critically endangered bird species, such as the giant ibis and white-shouldered ibis. Thousands of tourists come from across the world to see these rare and iconic species. The birding operator Sam Veasna Conservation Tours incentivizes community-based conservation in the region by training and employing locals as guides and ecotourism providers, and requiring visitors to donate to village development projects. In return for this income and employment, community members agree to not hunt or cut down trees. To date, Sam Veasna’s visitors have contributed over  $500,000  to local communities, making a strong case for the importance of protecting their unique birdlife.

Creating Sustainable Livelihoods

Beyond changing mindsets, tourism can prevent ecosystem degradation by creating more sustainable livelihoods for local communities. Jobs as guides, cooks, or housekeepers offer alternative income sources to environmentally-destructive activities such as logging, slash-and-burn agriculture, quarrying, or illegal hunting.

In Rewa, Guyana, poor job security led villagers to illegally harvest and trade wild animals. As a result, wildlife species such as arapaimas, giant river turtles, and giant otters were beginning to disappear. In 2005, the village opened a community-run eco lodge to improve livelihoods while protecting its ecological diversity.  By employing community members as sport fishing guides and boat captains, the lodge allows villagers to maintain rainforest-based livelihoods without causing damage to the ecosystem. Thanks to tourism, arapaimas, turtles, and otters are now common in the Rewa River. Not to mention, visitors contribute far more money to the local economy than wildlife exploitation did. In fact, research shows that globally wildlife tourism is  5x  more lucrative than illegal wildlife trade!

Raising Environmental Awareness of Tourists

Tourism not only bears the capacity to shift local mindsets and behavior, it can also raise environmental awareness among tourists. From camping to beach lounging, tourism provides countless opportunities for individuals to learn about the natural world and experience it firsthand.

When people connect with nature during their travels, it can lead them to appreciate it more and become invested in protecting it. Tours, parks, and other travel experiences often facilitate this type of environmental learning through interpretive techniques such as educational brochures, exhibits, or guided excursions. Whale watching, for instance,  has been shown  to raise visitors’ knowledge of aquatic mammals and increase their support for whale conservation. And on the Great Barrier Reef, guided boat tours and marine biology talks  have been found  to influence visitor behavior and minimize the damage that they cause to the reef.

In Chilean Patagonia, interpretive panels have been installed along one of the world’s most iconic trekking circuits in Torres del Paine National Park. The panels, which were designed by the  Torres del Paine Legacy Fund , educate visitors about the wetland ecosystem they’re traversing, and provide information about the plants and animals found there.

A hiker reads about the types of wildlife that reside in Torres del Paine National Park. Photo: Torres del Paine Legacy Fund.

Prompting Conservation Policies & Protected Areas

Tourism can also provide a compelling incentive for governments and organizations to institute environmental policies and conservation measures. This includes the creation of national parks, nature reserves, and other protected areas to preserve their biodiversity and correspondingly boost their tourism appeal.

Due to the popularity of coastal tourism in particular, reef-based activities such as scuba diving, snorkeling, boat trips and whale watching are a particularly important source of economic revenues. In fact, it is estimated that coral reefs generate  $36 billion  in global tourism value per year. Many countries rely on the income that comes from marine-based tourism and see the importance of protecting their coastlines, coral reefs, and beaches.

In the Galapagos, for instance, marine-based tourism is worth over  $178 million  per year, and supports over a third of all jobs.  The islands are a hotspot for large and rare marine life, including the  highest abundance  of sharks on the planet. Thanks to spending by divers and other marine tourists, a single shark in the Galapagos is worth about $5.4 million over its lifetime, while a dead shark only brings in $200 to fishermen. Realizing the economic importance of its life below water, the government introduced no-fishing zones in 2016 to prevent the extraction of sharks and safeguard the island’s marine tourism value.

Mountain gorillas are another species that has benefited from tourism-motivated conservation policies. These endangered apes can only be found in Uganda, Rwanda, and the Democratic Republic of the Congo. In Uganda, gorilla trekking permits start at  $600  and the economic value of gorilla tourism is estimated to be as much as  $34.3 million . This has led to policies and strategies that support conservation, such as veterinary interventions, intensive law enforcement, community conservation projects, regulated ecotourism, and transboundary collaboration among government institutions and NGOs. Thanks to these efforts, the number of gorillas within the Virunga Mountain region rose from  240 in the 1980s to 604 in 2016 . Now they are the  only wild ape population whose numbers are increasing !

Financing Conservation

But simply establishing protected areas isn’t enough on its own. Ensuring the conservation of the sensitive environments and vulnerable species that these areas aim to protect requires effective management and conservation measures.

However, this is easier said than done. Around the world, many protected areas are under-funded. In fact, the global funding gap for effectively managing these sites is estimated to be up to  $440 billion  dollars per year. Tourism plays an essential role in bridging this gap by providing an additional source of funding. Proceeds from visitor entrance fees, operating permits, accommodations, and guiding services can help pay the salaries of park rangers and guards, and fund necessary management activities such as ecosystem monitoring, anti-poaching patrols, invasive species eradication, and environmental educational programs.

In Africa, tourism is an important source of funding for land and wildlife conservation. SANParks, the public entity responsible for managing South Africa’s national parks, raises more than  80%  of its funding from tourism.  Chumbe Island Coral Park,  a marine protected area off the coast of Zanzibar, takes this model a step further and is funded  entirely  by ecotourism income. Thanks to effective management, Chumbe Island is home to one of the most pristine coral reefs in the region.

In addition to financing protected areas, tourists and tourism businesses may also contribute directly to local conservation initiatives. In St. Kitts, local tourism businesses donated  $18,500  to fund the planting of fruit trees to protect coastal areas. At Vail Resorts, guests are invited to donate $1 when they purchase a season pass, lift ticket, hotel stay, or shuttle ride. In 2019, Vail’s program raised over  $975,000  for on-the-ground conservation efforts that help restore habitat, improve forest access, and preserve land.

Carbon offsetting is another way that individuals and businesses can contribute to environmental conservation projects, while also mitigating their own emissions. Luxury tour operator TCS World Travel, for instance, partners with Sustainable Travel International to  offset  the carbon emissions generated by their jet trips. Through this partnership, TCS supports the  Madre de Dios project  which protects critical rainforest habitat and endangered species in the Peruvian Amazon.

Aiding Ecosystem Monitoring

While park rangers and guards play a critical role in patrolling sensitive environments, tracking ecosystem health, and warding off threats, it is often impossible for them to monitor such vast areas by themselves. The mere presence of tourists in natural areas can protect wildlife by providing an extra set of eyes on the ground.

In Africa, safari vehicles and guests deter poachers from wildlife conservancies, helping to safeguard highly targeted species such rhinos. The COVID-19 pandemic has further highlighted the critical role that tourism plays in deterring poachers and creating safe havens for wildlife. As visitation has come to a halt, rhino poaching has  reportedly increased  in tourism hotspots.

The Great Barrier Reef Marine Park Authority’s “Eye on the Reef” program is an even more intentional effort to engage tourists and operators in ecosystem monitoring. The program engages divers and marine tourism providers in watching over the Great Barrier Reef by reporting the coral, fish, pollution, and invasive species they see via a citizen science app. Sustainable Travel International is currently developing NEMO, a similar reef monitoring program for use on the  Mesoamerican Reef.

There are countless other citizen science programs that aim to fill different research gaps, and that visitors can participate in during their trip. Whale watchers, for example, can contribute to whale identification and tracking by submitting their photographs of humpback whales via the HappyWhale website. To date, more than  260,000  photos have been submitted to HappyWhale, and more than 38,000 individual whales identified.

Tourism businesses may also aid researchers in collecting environmental data. In Nevis, the Four Seasons Resort helps researchers study the migration patterns of critically endangered hawksbill sea turtles that nest on the island’s beaches. Resort guests help look for nesting sea turtles which are then fitted with a satellite transmitter and released into the sea. To date,  21  turtles have been released through this program.

Supporting Habitat & Ecosystem Restoration

Along with putting on their scientist cap, visitors and tourism businesses can support conservation by participating in ecosystem restoration.  

In Bonaire, local dive operators are lending a hand in restoring the island’s coral reefs by training tourists and divers on basic reef restoration techniques. Once they are trained, visitors can help maintain coral nurseries and outplant coral fragments onto degraded reef sites. To date, more than over  22,000  corals have been outplanted onto Bonaire’s reefs.

Visitors and tourism businesses can also participate in the removal and eradication of non-native species which devastate local habitats. In Mexico, divers and guides lend a hand in  hunting invasive lionfish  which are a serious threat to the Mesoamerican Reef. After they are captured, the fish are grilled up and served to tourists as a special local dish.

Visitors and tour guides can also help restore ecosystem health by cleaning up the environments they visit. For example, more than  86,000  scuba divers have removed litter from the oceans as part of Project Aware’s “Dive Against Debris” program.

Advancing Green Technologies & Fueling Innovation

Because of its economic importance and influence, tourism can trigger environmental innovation through the advancement of green infrastructure, processes, and technologies. For instance, tourism can lead the way in the development of renewable energy infrastructure, like wind and solar farms, on remote islands or rural areas that would not usually be exposed to clean energy.

In Aruba, tourism is the primary economic activity, representing  73%  of GDP. Realizing that the future of its tourism industry depends on environmental sustainability, Aruba’s public and private sector have invested in innovative solutions. Aruba’s Bucuti & Tara Beach Resort, for instance, is considered an eco-pioneer in the  Caribbean  due to the novel sustainability initiatives that it not only implements, but also develops. Among its achievements, the property heats its water via solar panels, installed exercise equipment that produces electricity, utilizes water saving devices in its bathrooms, and reuses greywater to irrigate its gardens. The resort aids the sustainability transition on the island by offering tours of their grounds and sharing their practices with others.

In Oregon, tourism supported the expansion of electric vehicle infrastructure along the state’s rural roads and scenic highways. The state’s tourism commission,  Travel Oregon , helped facilitate the installation of electric vehicle charging stations near tourism businesses and developed Electric Byway itineraries. Now, Oregon is home to one of the largest networks of electric vehicle fast charging stations in the country!

Still Progress To Be Made

But of course, all of the benefits above will only occur when tourism happens in a well-managed and sustainable way. As we’ve gained a better understanding of how humans impact the natural world, there have definitely been great strides towards making tourism more eco-friendly. However, our work is far from done. There’s still a lot of room for improvement by everyone involved in tourism – businesses, governments, communities, and tourists – to maximize tourism’s benefits for the planet.

To learn more about how we are helping to amplify the environmental benefits of tourism and ensure that tourism safeguards local ecosystems through our work, click  here .

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Community-based tourism: how your trip can make a positive impact on local people

Community-based tourism can reap great rewards. Done well, it enables local organisations to protect precious habitats, preserve unique culture and empower grassroots employees.

In the mid-1990s, the remote community of Klemtu in Canada’s British Columbia had to make a choice. Hit hard by the collapse of the fishing and forestry industries, unemployment was rocketing, and options were running out. But they knew there were two things in the Great Bear Rainforest that you couldn’t get anywhere else: their own Indigenous culture and the rare, ghostly-white Kermode bear, also known as the Spirit Bear. And that’s how Spirit Bear Lodge was born: a showcase of the Kitasoo/Xai’xais First Nation, and an entry point for exploring the extraordinary wilderness of the largest temperate rainforest on Earth, with the added benefit of spotting those elusive bears, along with wolves, whales and brown bears. Today, the lodge is a blueprint for conservation-based, community-based tourism, with a string of successes under its belt: the surrounding rainforest is now protected from logging, bear hunting has been banned and the community has a steady income. It has also, they say, fuelled a cultural renaissance. “The lodge has created opportunities for young and old to thrive in their homelands, while educating people from around the world with our rich culture,” explains Roxanne Robinson, guest services manager at the lodge. Guests learn about Kitasoo/Xai’xais culture from the lodge staff and their guides on wildlife expeditions, kayaking tours and cultural visits, while younger community members drop by as part of the Súa Educational Foundation programme. “Súa means ‘thunder’ in our language, and they come to share stories, songs and dances with guests in our traditional big house,” says Robinson. Guests not only have an incredible experience, but they can also sleep easy knowing that their tourist dollars are doing good. Doing good, if reports are anything to go by, is something we all want to do more of. According to an American Express poll last year, 72% of travellers want to help boost tourism revenue in local economies. And the latest sustainability report by Booking.com showed that 73% of travellers would like to have authentic experiences that are representative of the local culture; 84% believe that preservation of cultural heritage is crucial; and 76% want to be sure that their economic impact is spread equally throughout society. So, being a responsible traveller is no longer just about protecting the environment or reducing our carbon footprints. It’s about how our tourist dollars can do good in the places we visit. It’s about communities. It’s taking the ‘buy local’ mantra — supporting your neighbourhood bookshop instead of buying on Amazon, say, or eating in a local restaurant instead of McDonald’s — and using it on your travels. When travelling, though, buying locally can be more nuanced. It could mean eating out in a local restaurant — but who owns the restaurant? Are the staff local but the profits going abroad? Does the restaurant support local producers and farmers, or are the ingredients imported? Is the attached gift shop a showcase of Indigenous craftsmanship, or are the souvenirs all made in China?  

It is, in other words, complicated. “Is it tourism that takes place in a community?” asks Dr Albert Kimbu, head of tourism and transport at the University of Surrey. “Or is it tourism that’s actively engaging and benefitting communities?” That’s the key. That’s the question we, as travellers, need to be asking. “My take on community-based tourism, or CBT,” explains Dr Kimbu, “is that it has to be by the community, for the community.” In other words, if a hotel or lodge takes guests to visit a local school, or to see a cultural dance in a local village, which might be taking place in the community — is the community genuinely benefitting? They might be getting paid, but it could also be straight-up cultural exploitation. Jamie Sweeting, CEO of Planeterra, the non-profit partner of G Adventures, which specialises in community tourism, agrees: “It needs to be owned, led and run by the communities themselves.” Why? “Because,” explains Dr Kimbu, “When communities become aware that what they have is a product that can be sold, then they have a stake in protecting it.” Take the Sabyinyo Silverback Lodge in Rwanda. The saleable product here is the mountain gorilla that inhabits Volcanoes National Park next door. Visitors will pay a high price to see them in the wild. Working with Sacola, a local non-profit, the idea of a lodge that’s 100%-owned and -run by the community was born, with all profits going back into social and economic projects, as well as conservation within the park. It’s worked a treat. Since opening in 2006, US$4m (£3m) has gone into community and conservation projects, while the gorilla population in the park now includes 10 different gorilla groups. So, the community recognised the financial benefits of their neighbouring gorillas and now benefit by protecting their environment. But CBT at its best goes way beyond employing locally. It means the community gets to decide how to protect the culture and environment on which it depends. So, the community benefits, the environment and local culture is safeguarded, and the resulting economic benefits stay within the community. Win-win-win. There are ripple effects, too. Spier, a wine estate in South Africa’s Stellenbosch region, has a Growing for Good programme, which includes mentoring and assisting local entrepreneurs to create businesses that can then be used by Spier. This has worked with a local laundry service, for example, as well as a taxi service used by its guests. And Fogo Island Inn in Newfoundland, Canada is all about the ripple effects, having been created entirely for the benefit of the local community. This 29-room luxury inn was built by local philanthropist Zita Cobb through her Shorefast Foundation, and 100% of operating surpluses are reinvested in the community — a community that was in dire straits just a decade ago, thanks to the collapse of the global cod market.  

Power in partnership

Sabyinyo, Spier and Fogo are examples of when it works. When it doesn’t work, community involvement is nothing short of exploitation. As Amanda Ho, the co-founder of Regenerative Travel, puts it: “In many cases, what we’ve seen is communities around the world angry that their health, wellbeing, and priorities are not being recognised or respected by tourism.” Jamie Sweeting tells me about a particular lodge in Botswana — he won’t name names — which was ‘talking the talk’ about working with the Indigenous San. “The website was shouting about empowering the local community,” he says. But when Planeterra did some digging, it found that while the San were used to put on cultural shows at the lodge, they were earning below the living wage and staying in poor accommodation with barely enough food. Planeterra worked with the local San people to promote and upskill the community-owned Dqae Qare San Lodge nearby, helping them gain direct access to the same markets the other lodge was benefitting from.  

“Community-based tourism can be especially beneficial in empowering women, who are often responsible for the homestay or dining components of a trip” Francisca Kellett

That lack of access to market — and the lack of the knowledge, skills and infrastructure needed to run a successful travel business — is key. As Justin Francis of Responsible Travel puts it: “Being able to access the distribution chains of the tourism industry — to get guests through the doors — is difficult without the partnership of an established tour operator.” When CBT first appeared around 20-25 years ago, he says, NGOs and donors would pitch up at communities, build beautiful ecolodges, but allow the communities very little say — and then fail to provide the training, infrastructure and business know-how to lead to any kind of success.  

Having a voice, Francis says, is key where elected community representatives participate in the decision making: “The driving force behind successful CBT projects is local people setting the terms. It’s about them making informed decisions around how tourism develops.” In the case of the Ccaccaccollo Women’s Weaving Cooperative in Peru’s Sacred Valley, it was three women that had that voice. “When they first came to us, only a handful could do traditional Inca weaving,” Sweeting says. Led by those women, Planeterra assisted with training, infrastructure and marketing, and the co-op has boomed, now owned and run by more than 65 individuals, with an attached homestay attracting overnight visitors. CBT can be especially beneficial in empowering women, who are often responsible for the homestay or dining components of a trip. Dreamcatchers, a tour operator in South Africa, recognised this over 30 years ago, and helped launch a range of CBT enterprises including ‘Kammama’, a selection of nationwide, women-run homestays and experiences, from cooking courses in Soweto to an overnight stay with a family in the Cape Winelands. In the case of Ccaccaccollo, the ripple effect has been a huge uptick in education in the community: all the women involved are now fully literate in Spanish, the first generation to achieve this locally, and most have children in tertiary education — another first. “And there has been an uplift in the pride in their culture. They’re embracing it. They can see that people from dozens of countries travel to visit them because they have something special to offer,” says Sweeting. That special offering is what’s in it for us. “For travellers, CBT offers a genuinely authentic experience and insight into local life,” says Zina Bencheikh, at Intrepid Travel. “Travellers are welcomed into a community and have the chance to immerse themselves.” Intrepid now aims to bring a degree of CBT into many of its sustainable, small-group adventure tours. “Our clients often talk about our CBT experiences as one of the unexpected highlights of their trip,” says Bencheikh. So how do we spot the good guys? How do we know whether a lodge or restaurant or experience that claims to benefit a community genuinely is?   “Ask questions,” says Dr Kimbu. “Have a discussion with those organising your trip.” Bencheikh agrees. “Do your research. Before you visit, ask questions about how the project is run and where the money goes from your visit.” Travelling with a trusted tour operator is also sensible, as is looking out for any certification programmes such as B Corp. Covid-19, of course, has had a dreadful impact on CBT. Planeterra recently launched the Global Community Tourism Network, providing online training, promotion and marketing, to help organisations prepare for when tourists come back. “Many communities don’t have internet or phone access,” explains Sweeting. “So, we also have 16 strategic partnerships, mostly local non-profits with their own network. Our reach is now more than 800 community tourism enterprises in 75 countries.” On the flipside, Covid-19 has also changed how we want to travel. “There’s been a definite shift, with more travellers wanting to find purpose in their trips,” says Sweeting. “We need to take advantage of that. When you’re able to experience something owned and run by a community, it’s much more rewarding, and a more equitable experience for the host and the guest.” As Dr Kimbu puts it, “CBT has a sense of fairness and justice.” It’s that sense of fairness and justice that’s been behind the success of Spirit Bear Lodge for more than 20 years and one that the community hopes will last for generations. “I do hope that my children and future children continue with Spirit Bear Lodge,” Robinson tells me. “Seeing the growth in this company has been amazing. It’s a great way to learn and grow and thrive in our homelands.” You can’t say fairer than that.  

Published in the   May 2022   issue of   National Geographic Traveller (UK)

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The impact of tourism: How can we all do this better?

John perrottet, beril benli.

Tourism is growing, and growing fast. After surpassing 1 billion international visitors in 2012, we are expecting 1.8 billion by 2030. Tourism is growing faster than the global economy and, for the first time, the statistics for 2015 are expected to show that there were more trips taken to the developing world than to the developed world. But what does this actually mean? Growth, on its own, is not enough. Destinations and their stakeholders are responsible for ensuring that growth is well-managed; that benefits are maximized; and that any negative externalities are minimized. This requires a continuous process of planning and management that evolves and that can be measured over time. For the World Bank Group, our clients and our development partners, this process of planning and management is a central interest. How can we help these processes to deliver more and better development impact? What kinds of interventions or types of assistance will deliver the best results? How do you define the best results – for whom? – and how do we measure them? Being able to demonstrate how the tourism sector contributes to the Bank Group’s twin goals of eliminating extreme poverty and promoting shared prosperity is an imperative for all stakeholders. It’s relevant for national governments, sub-national state agencies, businesses (both multinationals and SMEs), multilateral development banks, NGOs, academics and think tanks. Moreover, it’s vital in helping guide future planning and development, gaining access to and applying for funding, and demonstrating progress to constituents at all levels.

Despite the great breadth and depth of existing impact information, however, serious concerns remain about the accuracy, complexity, gaps, comparability and sustainability of the types of the impact analyses that have been carried out. The Bank Group’s Sustainable Tourism Global Solutions Group recently convened a thought-leadership event in Washington to begin a preliminary discussion about how all stakeholders can come together to try and address some of the current shortcomings. During the “ Measuring for Impact in Touris m” event, we heard about a wide range of challenges for those working in this area and we began to map out the greatest gaps and issues. As Anabel Gonzalez, the Senior Director of the Trade and Competitiveness Global Practice, said at that conference: “We want to be better at monitoring and evaluating our impact, we want to learn from others, and we want to contribute more effectively to tourism development.  I believe these are goals most of you will share. We invite you to join this discussion – and be frank, open and provocative.”The findings can be found in our report, “ Towards More Effective Impact Measurement in the Tourism Sector: Observations and Key Issues ,” which highlights a number of priorities. Some of those challenges concern the availability, quality and consistency of data; the high cost of impact measurement for SMEs; the proliferation of different systems; issues of attribution; quantifying notions of “value”; and the ability to communicate effectively to a wide range of audiences. Some key areas for immediate follow-up and further analysis were also identified. They include:

• Exploring the theory of change by examining more closely the proposition  that, when tourism growth occurs, those living in extreme poverty benefit and by digging deeper into what tourism growth really means for the poor, especially in terms of employment. 
• Assessing the impact value of different types of tourism.
• Assessing and developing the role of technology for data collection, impact measurement and communication.
• Evaluating the use of training for better communication – including assessing what has been tried and what has worked and considering how it could be scaled up. 
• Analyzing the necessity and practicality of improving collaboration among various actors, and assessing the alignment of frameworks along with proposals for greater alignment.
• Developing ideas and proposals for the enhanced sharing and pooling of impact data.
• Developing ideas and proposals for greater inclusion of SMEs.
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What is travel and tourism’s role in future global prosperity?

The travel and tourism sector faces many challenges in a disrupted world, from geopolitical tensions to climate change. Image:  Unsplash.

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Maksim soshkin.

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Stay up to date:, travel and tourism.

• The travel and tourism sector faces many challenges in a disrupted world, from geopolitical tensions to climate change.
• The sector can be a powerful driver of sustainable economic prosperity – supporting people and places.
• The latest Travel and Tourism Development Index benchmarks the factors and policies that enable resilient and sustainable development.

With 2023 at an end, the Travel and Tourism (T&T) sector is finally positioned to move past the impact of the pandemic, with international tourist arrivals anticipated to reach levels reminiscent of the pre-pandemic era . However T&T sector stakeholders and destinations are navigating a complex terrain marked by external challenges such as geopolitical and economic uncertainty, inflation and dangers from the proliferation of extreme weather events like wildfires.

Many of these issues represent broader ongoing and longer-term economic, environmental, societal, geopolitical and technological trends. Within this context, consumers, policy-makers and advocates have expressed growing apprehension about the sector’s record on sustainability and its role in issues such as climate change, overcrowding, and overall impact on local communities.

Against this dynamic backdrop, it becomes imperative for the leaders and visionaries of the T&T industry to not only comprehend the impending trends but also acknowledge the sector's potential to tackle global challenges. When managed thoughtfully, travel and tourism emerge as potent drivers of resilient and sustainable development, contributing to the collective well-being of our planet.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

Why travel and tourism have a role to play in future global prosperity

The recently released World Economic Forum’s Global Risk Report 2024 sheds light on the short- and long-term risks that the world faces. According to the report’s survey results, economic and societal risks, such as inequality, inflation, migration, and economic downturns, take center stage in the next two years, while environmental concerns, including extreme weather events and biodiversity loss, dominate the global risks for the next decade.

Given that T&T accounts for 7.6% of global GDP and close to 300 million jobs , the sector plays a critical role in addressing societal and economic challenges. The sector's significance magnifies as it empowers small- and medium-sized enterprises, with over 80% of T&T businesses falling under this category. It also plays a pivotal role in employing women, youth, migrants, and informal workers, thereby contributing significantly to economic opportunities .

T&T is also a major driver of global connectivity at a time when geopolitical tensions and conflict are on the rise, while globalization seems to be slowing. In the coming decade, T&T’s role in mitigating socioeconomic risks will only climb, with the World Travel and Tourism Council forecasting T&T sector GDP to grow at nearly double the rate of the broader global economy in the 10 years to 2033, thereby adding more than 100 million new jobs.

On an environmental level, T&T is a key stakeholder in addressing climate change and protecting the environment. The sector is not only affected by these challenges but also contributes to climate change with around 8% of global anthropogenic greenhouse gas emissions stemming from tourism activities. Therefore, actions in the sector, especially in hard-to-abate segments like aviation, are important to helping meet global climate change targets. Moreover, many destinations' dependence on nature-based attractions makes T&T a means to generate economic value for protecting nature.

Have you read?

What is overtourism and how can we overcome it , this is how to leverage community-led sustainable tourism for people and biodiversity, are we finally turning the tide towards sustainable tourism, the podcasts to listen to during davos #wef24, unlocking travel and tourism's potential.

To unlock the full potential of T&T as a tool for addressing many of the world’s ongoing and future challenges, sector leaders must prioritize sustainability and resilience in their development strategies.

The Global Future Council on Sustainable Tourism emphasizes the importance of creating standards and metrics for sustainability, cultivating a well-trained and inclusive workforce, prioritizing and engaging with local communities, aligning visitors with destinations carrying capacity and making appropriate investments in relevant infrastructure .

Achieving these goals necessitates a high degree of collaboration among sector and non-sector businesses, employees, and government actors at national and local levels, including tourism and environmental agencies, civil society, and international organizations.

In the coming months, the Forum, in collaboration with the University of Surrey, will unveil the latest edition of the Travel and Tourism Development Index (TTDI). This index promises to provide a comprehensive understanding of the factors and policies that enable the sustainable and resilient development of the T&T sector.

Drawing on the latest data encompassing environmental and social impacts of T&T, labour markets, infrastructure, natural and cultural resources, and demand sustainability, the TTDI offers insights into the challenges ahead, the sector's readiness for risks and opportunities, and how it can be leveraged to address global issues. The importance of T&T for global prosperity will only grow in the years, creating new opportunities for shared commitment to a sustainable and inclusive future.

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World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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Tourism Can Help Lead the World to Recovery

About the author, zurab pololikashvili.

Zurab Pololikashvili is Secretary-General of the United Nations World Tourism Organization.

26 September 2020 T he COVID-19 pandemic has hit global tourism harder than any other major economic sector. In an effort to contain the spread of the virus and keep their citizens safe, countries around the world introduced restrictions on international travel, bringing tourism to a standstill almost overnight. Indeed, at the peak of this lockdown, the United Nations World Tourism Organization (UNWTO) found that 100 per cent of global destinations had either closed their borders to tourists completely or introduced strict measures such as compulsory quarantine for new arrivals.

The sudden and unexpected fall in tourist arrivals also placed on hold the many social and economic benefits that tourism delivers. Globally, tourism supports one in ten jobs, and 80 per cent of the sector is made up of small businesses, including family operations. At the start of the crisis, UNWTO set out three possible scenarios for tourism in 2020, depending on when and how widely travel restrictions would be lifted. While it looks like we will avoid the worst-case scenario, we nevertheless expect global tourist arrivals to be down by as much as 70 per cent this year compared to 2019.

The knock-on effect will be significant. The United Nations Conference on Trade and Development (UNCTAD) estimates that tourism’s woes will cause global GDP to decline by as much as 1.5 per cent to 2.8 per cent . Furthermore, the fall in tourist numbers will likely translate into as many as 120 million lost jobs. And, as always, the most vulnerable will suffer the most, including women and youth, for whom tourism is a leading source of opportunity, as well as those working in the informal economy.

Developing countries at greatest risk

No country has been left unscathed by the pandemic, including with regard to tourism. The effects, however, will be most profoundly felt in those destinations that are most reliant on tourism for livelihoods and economic well-being. For the majority of the world’s Small Island Developing States (SIDS), as well as the least developed countries, most notably within Africa, tourism is a lifeline. On average, tourism accounts for 30 per cent of export revenues for SIDS , and in some cases this is much higher. Indeed, in Palau—the newest UNWTO member State, having officially joined in 2019— tourism generates 90 per cent of all exports .

As the United Nations Secretary-General’s Policy Brief on “ COVID-19 and Transforming Tourism ” makes clear, the true cost of the pandemic’s impact on tourism cannot be measured in GDP or employment figures alone. Due to its unique cross-cutting nature, touching upon nearly every part of modern society, tourism is an essential contributor to the wider mission of the United Nations, including achievement of the Sustainable Development Goals. Again, as a leading employer of women, tourism leads the way in the journey towards gender equality. At the same time, tourism is a leading contributor to the promotion and protection of cultural and natural heritage, which is in jeopardy, including the ecosystems and wildlife that draw visitors to developing countries.

Building cooperation and a united response

Before the World Health Organization (WHO) officially declared COVID-19 to be a pandemic, UNWTO recognized both the unique vulnerability of tourism and also the sector’s unique potential to drive wider societal recovery once the health crisis had been tackled. The visit of a UNWTO delegation to WHO headquarters in Geneva laid the foundations for the international, multi-organizational cooperation that has defined tourism’s response to an unprecedented challenge.

This, in turn, came on the back of heightened advocacy for tourism at the very highest political level, most notably at the European Commission at the start of the year, to make sure the sector is at the centre of the planned European New Green Deal, as well as at the most recent meetings of the G20 nations. This has allowed UNWTO to become an increasingly prominent voice within the United Nations. When the crisis hit, we were able to make sure that tourism was part of the conversation at both the governmental and United Nations levels.

The Global Tourism Crisis Committee, convened virtually in March and then meeting five times as the crisis evolved, brought together leading voices from member States and from the private sector. Only UNWTO was in a position to unite such a diverse sector. This Crisis Committee channelled these diverse voices and concerns into a clear plan of action, the UNWTO Recommendations for Recovery . These Recommendations have been embraced across the public and private sectors and now inform recovery plans in every global region.

Sustainability takes centre stage

Central to the Recommendations is the principle that sustainability and inclusivity are at the heart of both the recovery process and the tourism sector that emerges out of this crisis. The pause in global tourism presents the global community with a chance to reassess its priorities. It also allows us to put the principles that are central to the work of UNWTO—namely that tourism works for people and planet, and should be open to all and benefit all—front and centre of everything we do.

The number one priority, however, is to build trust and confidence. Only by making people feel safe and encouraging them to travel again will the benefits that tourism offers start to return. UNWTO, as the specialized United Nations agency for tourism, must lead by example. To this end, as soon as it was safely possible, in-person visits to member States resumed: to the Canary Islands and Ibiza in Spain, to Italy, and to Saudi Arabia. The decision was also made to hold a hybrid Executive Council meeting, the first in-person meeting of the tourism sector and the United Nations to be held since the start of the pandemic. This brought together 170 delegates from 24 countries, sending a clear message that safe international travel is now possible in many parts of the world, thus providing a vital confidence boost for the sector.

As tourism restarts in many parts of the world, with growing numbers of countries easing travel restrictions, the sector’s position within the work of the United Nations has never been more relevant. UNWTO leads the restart guided by the principles of the Tbilisi Declaration , signed by our member States in Georgia at the close of the UNWTO Executive Council (15–17 September 2020). The Declaration recognizes the importance of tourism to livelihoods, to economic prosperity and opportunity, and to preserving our shared and unique culture. Signatories also committed to building back better, prioritizing sustainability and equality, and ensuring that, as tourism builds a brighter future, nobody is left behind.

The UN Chronicle  is not an official record. It is privileged to host senior United Nations officials as well as distinguished contributors from outside the United Nations system whose views are not necessarily those of the United Nations. Similarly, the boundaries and names shown, and the designations used, in maps or articles do not necessarily imply endorsement or acceptance by the United Nations.

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UN urges investment in clean, sustainable tourism, as numbers bounce back

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International tourism is showing strong signs of recovery, with tourist numbers rising to 57 per cent of pre-pandemic levels. On World Tourism Day, marked on Tuesday, the UN is calling for a major global rethink of the sector, to ensure that tourism is sustainable, and benefits local communities.

The UN World Tourism Organization ( UNWTO ) released encouraging news on Monday, with its latest World Tourism Barometer, which shows that international tourism arrivals almost tripled in the first seven months of 2022 (compared to the same period in 2021).

Cautious optimism

The agency’s Panel of Tourism Experts expressed cautious confidence for the rest of year, and into 2023, despite the uncertain economic environment: increasing interest rates, rising energy and food prices, and the growing prospects of a global recession, continue to pose major threats to the sector.

In a message released to mark the Day, the UN Secretary-General, António Guterres, hailed tourism’s ability to drive sustainable development, and called for more investment in clean and sustainable tourism, the creation of decent jobs, and for measures to ensure that profits benefit host countries and local communities.

Go green to survive

“Governments, businesses and consumers must align their tourism practices with the Sustainable Development Goals and a 1.5 degree future”, said Mr. Guterres, referring to international agreements aimed at keeping global warming in check. “The very survival of this industry, and many tourist destinations, such as Small Island Developing States, depends on it.”

“The restart of tourism everywhere brings hope,” declared Zurab Pololikashvili, UNWTO Secretary-General, in his address at the opening of the official celebrations organized for the Day, in the Indonesian resort city of Bali.

Mr. Pololikashvili described tourism, which employs around 10 per cent of the global workforce, as the “ultimate cross-cutting and people-to-people sector, which touches on almost everything we do.”

Report card

To mark the day, UNWTO launched its first World Tourism Day Report , the first in an annual series of updates and analysis of the Organization’s work guiding the sector forward.

The report contains updates on the agency’s activities in key areas including gender equality, sustainability and climate action, tourism governance and investments and innovation.

Representatives of the G20 group of the world’s leading economies, including tourism ministers, will meet in Bali in November. Ahead of the event, UNWTO has produced a set of guidelines for ministers, to enable them to support resilient and sustainable tourist businesses, which take into account human capital, innovation, youth and women empowerment, and climate action.

Ensure zero-tolerance for sexual exploitation: UN rights expert

An independent UN rights expert released a statement ahead of the Day, to call for Governments to ensure that the tourism industry is free from child forced labour, sexual abuse and sexual exploitation. 

Mama Fatima Singhateh, UN Special Rapporteur on the sale and sexual exploitation of children, warned that the COVID-19 pandemic, climate change and socioeconomic setbacks have caused enormous strains on child protection systems.

This, she said, has made children more vulnerable to sale, trafficking and sexual exploitation in the context of travel and tourism, especially in countries that have traditionally relied on the income generated from travel and tourism.  

Tourism and the climate crisis

• In response to concerns surrounding the impact of the tourism sector on the climate crisis, UNWTO launched the Glasgow Declaration on Climate Action in Tourism at the 2021 UN Climate Conference (COP26), which was held in the Scottish City.
• Signatories commit to supporting global commitments to halve harmful emissions by 2030, and reach Net Zero as soon as possible before 2050, implement climate action plans, and report on their progress on an annual basis.
• To date more than 530 organizations have signed the Declaration, including major international companies, and tourism boards from a wide variety of countries.  

UN Tourism | Bringing the world closer

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UN report Underscores Importance of Tourism for Economic Recovery in 2022

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The important role that tourism will play in the recovery of national economies and global trade has been highlighted in the 2022 edition of the World Economic Situation and Prospects (WESP) report by the United Nations. Drawing on data from the World Tourism Organization (UNWTO), WESP underlines the sector’s importance for the world economy and particularly for developing economies, including Small Island Developing States (SIDS).

After a global contraction of 3.4% in 2020 and a rebound of 5.5% in 2021, the world economy is projected to grow by 4% in 2022 and then 3.5% in 2023. Given its importance as a major export category (prior to the pandemic tourism was the third largest in the world, after fuels and chemicals), and recognizing its role as a source of employment and economic development , the sector’s recovery is expected to drive growth in every world region.

UNWTO Secretary-General Zurab Pololikashvili said: “The sudden halt in international tourism caused by the pandemic has emphasized the sector’s importance to both national economies and individual livelihoods. The flagship UN report makes use of UNWTO data and analysis to assess the cost of declining tourism and illustrates just how important restarting tourism will be in 2022 and beyond.”

Jobs, economic growth and equality all hit

The sudden halt in international tourism caused by the pandemic has emphasized the sector’s importance to both national economies and individual livelihoods

The latest edition of the UN World Economic Situation and Prospects report uses key UNWTO data on international tourist arrivals and tourism receipts to illustrate how the pandemic’s impact has been felt beyond the sector itself . International tourist arrivals plunged by 73% in 2020, dropping to levels not seen for 30 years. And while tourism did record a modest improvement in the third quarter of 2021, international arrivals between January-September 2021 were still 20% below 2020 levels and 76% below 2019 levels (full year 2021 results to be released by UNWTO on 18 January).

The crisis has had a devastating impact on employment, including in hospitality, travel services and retail trade. It has disproportionately affected vulnerable groups, including youth and migrant workers, as well as workers with lower educational attainment and skills. Exacerbation of the gender divide is evident, especially in developing countries, with women seeing greater declines in employment and labour force participation than men.

Diversification for recovery

Further analysing the sector’s role in economic recovery, the UN report notes that many destinations, in particular tourism-dependent countries, will need to diversify their tourism throughout 2022 and beyond. Again drawing on UNWTO analysis , the publication shows how many destinations are developing domestic and rural tourism to help local economies in rural and depressed areas to boost job creation and protect natural resources and cultural heritage , while at the same time empowering women, youth and indigenous peoples. Additionally, the report notes how Small Island Developing States can take steps to ensure local businesses and workers retain more of the economic benefits that international tourism brings, noting for example that that “tourism leakage” amounts to an estimated 80% of all money spent by tourists in the Caribbean region.

Related links

• Download the news release in PDF
• UNWTO Market Intelligence
• UNWTO Tourism Data Dashboard
• Rural Tourism
• World Economic Situation and Prospects 2022

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What Is Sustainable Tourism and Why Is It Important?

Sustainable management and socioeconomic, cultural, and environmental impacts are the four pillars of sustainable tourism

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What Makes Tourism Sustainable?

The role of tourists, types of sustainable tourism.

Sustainable tourism considers its current and future economic, social, and environmental impacts by addressing the needs of its ecological surroundings and the local communities. This is achieved by protecting natural environments and wildlife when developing and managing tourism activities, providing only authentic experiences for tourists that don’t appropriate or misrepresent local heritage and culture, or creating direct socioeconomic benefits for local communities through training and employment.

As people begin to pay more attention to sustainability and the direct and indirect effects of their actions, travel destinations and organizations are following suit. For example, the New Zealand Tourism Sustainability Commitment is aiming to see every New Zealand tourism business committed to sustainability by 2025, while the island country of Palau has required visitors to sign an eco pledge upon entry since 2017.

Tourism industries are considered successfully sustainable when they can meet the needs of travelers while having a low impact on natural resources and generating long-term employment for locals. By creating positive experiences for local people, travelers, and the industry itself, properly managed sustainable tourism can meet the needs of the present without compromising the future.

What Is Sustainability?

At its core, sustainability focuses on balance — maintaining our environmental, social, and economic benefits without using up the resources that future generations will need to thrive. In the past, sustainability ideals tended to lean towards business, though more modern definitions of sustainability highlight finding ways to avoid depleting natural resources in order to keep an ecological balance and maintain the quality of environmental and human societies.

Since tourism impacts and is impacted by a wide range of different activities and industries, all sectors and stakeholders (tourists, governments, host communities, tourism businesses) need to collaborate on sustainable tourism in order for it to be successful.

The World Tourism Organization (UNWTO) , which is the United Nations agency responsible for the promotion of sustainable tourism, and the Global Sustainable Tourism Council (GSTC) , the global standard for sustainable travel and tourism, have similar opinions on what makes tourism sustainable. By their account, sustainable tourism should make the best use of environmental resources while helping to conserve natural heritage and biodiversity, respect the socio-culture of local host communities, and contribute to intercultural understanding. Economically, it should also ensure viable long-term operations that will provide benefits to all stakeholders, whether that includes stable employment to locals, social services, or contributions to poverty alleviation.

The GSTC has developed a series of criteria to create a common language about sustainable travel and tourism. These criteria are used to distinguish sustainable destinations and organizations, but can also help create sustainable policies for businesses and government agencies. Arranged in four pillars, the global baseline standards include sustainable management, socioeconomic impact, cultural impacts, and environmental impacts.

Travel Tip:

The GSTC is an excellent resource for travelers who want to find sustainably managed destinations and accommodations and learn how to become a more sustainable traveler in general.

Environment 

Protecting natural environments is the bedrock of sustainable tourism. Data released by the World Tourism Organization estimates that tourism-based CO2 emissions are forecast to increase 25% by 2030. In 2016, tourism transport-related emissions contributed to 5% of all man-made emissions, while transport-related emissions from long-haul international travel were expected to grow 45% by 2030.

The environmental ramifications of tourism don’t end with carbon emissions, either. Unsustainably managed tourism can create waste problems, lead to land loss or soil erosion, increase natural habitat loss, and put pressure on endangered species . More often than not, the resources in these places are already scarce, and sadly, the negative effects can contribute to the destruction of the very environment on which the industry depends.

Industries and destinations that want to be sustainable must do their part to conserve resources, reduce pollution, and conserve biodiversity and important ecosystems. In order to achieve this, proper resource management and management of waste and emissions is important. In Bali, for example, tourism consumes 65% of local water resources, while in Zanzibar, tourists use 15 times as much water per night as local residents.

Another factor to environmentally focused sustainable tourism comes in the form of purchasing: Does the tour operator, hotel, or restaurant favor locally sourced suppliers and products? How do they manage their food waste and dispose of goods? Something as simple as offering paper straws instead of plastic ones can make a huge dent in an organization’s harmful pollutant footprint.

Recently, there has been an uptick in companies that promote carbon offsetting . The idea behind carbon offsetting is to compensate for generated greenhouse gas emissions by canceling out emissions somewhere else. Much like the idea that reducing or reusing should be considered first before recycling , carbon offsetting shouldn’t be the primary goal. Sustainable tourism industries always work towards reducing emissions first and offset what they can’t.

Properly managed sustainable tourism also has the power to provide alternatives to need-based professions and behaviors like poaching . Often, and especially in underdeveloped countries, residents turn to environmentally harmful practices due to poverty and other social issues. At Periyar Tiger Reserve in India, for example, an unregulated increase in tourists made it more difficult to control poaching in the area. In response, an eco development program aimed at providing employment for locals turned 85 former poachers into reserve gamekeepers. Under supervision of the reserve’s management staff, the group of gamekeepers have developed a series of tourism packages and are now protecting land instead of exploiting it. They’ve found that jobs in responsible wildlife tourism are more rewarding and lucrative than illegal work.

Flying nonstop and spending more time in a single destination can help save CO2, since planes use more fuel the more times they take off.

Local Culture and Residents

One of the most important and overlooked aspects of sustainable tourism is contributing to protecting, preserving, and enhancing local sites and traditions. These include areas of historical, archaeological, or cultural significance, but also "intangible heritage," such as ceremonial dance or traditional art techniques.

In cases where a site is being used as a tourist attraction, it is important that the tourism doesn’t impede access to local residents. For example, some tourist organizations create local programs that offer residents the chance to visit tourism sites with cultural value in their own countries. A program called “Children in the Wilderness” run by Wilderness Safaris educates children in rural Africa about the importance of wildlife conservation and valuable leadership development tools. Vacations booked through travel site Responsible Travel contribute to the company’s “Trip for a Trip” program, which organizes day trips for disadvantaged youth who live near popular tourist destinations but have never had the opportunity to visit.

Sustainable tourism bodies work alongside communities to incorporate various local cultural expressions as part of a traveler’s experiences and ensure that they are appropriately represented. They collaborate with locals and seek their input on culturally appropriate interpretation of sites, and train guides to give visitors a valuable (and correct) impression of the site. The key is to inspire travelers to want to protect the area because they understand its significance.

Bhutan, a small landlocked country in South Asia, has enforced a system of all-inclusive tax for international visitors since 1997 ($200 per day in the off season and $250 per day in the high season). This way, the government is able to restrict the tourism market to local entrepreneurs exclusively and restrict tourism to specific regions, ensuring that the country’s most precious natural resources won’t be exploited.

Incorporating volunteer work into your vacation is an amazing way to learn more about the local culture and help contribute to your host community at the same time. You can also book a trip that is focused primarily on volunteer work through a locally run charity or non profit (just be sure that the job isn’t taking employment opportunities away from residents).

It's not difficult to make a business case for sustainable tourism, especially if one looks at a destination as a product. Think of protecting a destination, cultural landmark, or ecosystem as an investment. By keeping the environment healthy and the locals happy, sustainable tourism will maximize the efficiency of business resources. This is especially true in places where locals are more likely to voice their concerns if they feel like the industry is treating visitors better than residents.

Not only does reducing reliance on natural resources help save money in the long run, studies have shown that modern travelers are likely to participate in environmentally friendly tourism. In 2019, Booking.com found that 73% of travelers preferred an eco-sustainable hotel over a traditional one and 72% of travelers believed that people need to make sustainable travel choices for the sake of future generations.

Always be mindful of where your souvenirs are coming from and whether or not the money is going directly towards the local economy. For example, opt for handcrafted souvenirs made by local artisans.

Growth in the travel and tourism sectors alone has outpaced the overall global economy growth for nine years in a row. Prior to the pandemic, travel and tourism accounted for an $9.6 trillion contribution to the global GDP and 333 million jobs (or one in four new jobs around the world).

Sustainable travel dollars help support employees, who in turn pay taxes that contribute to their local economy. If those employees are not paid a fair wage or aren’t treated fairly, the traveler is unknowingly supporting damaging or unsustainable practices that do nothing to contribute to the future of the community. Similarly, if a hotel doesn’t take into account its ecological footprint, it may be building infrastructure on animal nesting grounds or contributing to excessive pollution. The same goes for attractions, since sustainably managed spots (like nature preserves) often put profits towards conservation and research.

Costa Rica was able to turn a severe deforestation crisis in the 1980s into a diversified tourism-based economy by designating 25.56% of land protected as either a national park, wildlife refuge, or reserve.

While traveling, think of how you would want your home country or home town to be treated by visitors.

Are You a Sustainable Traveler?

Sustainable travelers understand that their actions create an ecological and social footprint on the places they visit. Be mindful of the destinations , accommodations, and activities you choose, and choose destinations that are closer to home or extend your length of stay to save resources. Consider switching to more environmentally friendly modes of transportation such as bicycles, trains, or walking while on vacation. Look into supporting locally run tour operations or local family-owned businesses rather than large international chains. Don’t engage in activities that harm wildlife, such as elephant riding or tiger petting , and opt instead for a wildlife sanctuary (or better yet, attend a beach clean up or plan an hour or two of some volunteer work that interests you). Leave natural areas as you found them by taking out what you carry in, not littering, and respecting the local residents and their traditions.

Most of us travel to experience the world. New cultures, new traditions, new sights and smells and tastes are what makes traveling so rewarding. It is our responsibility as travelers to ensure that these destinations are protected not only for the sake of the communities who rely upon them, but for a future generation of travelers.

Sustainable tourism has many different layers, most of which oppose the more traditional forms of mass tourism that are more likely to lead to environmental damage, loss of culture, pollution, negative economic impacts, and overtourism.

Ecotourism highlights responsible travel to natural areas that focus on environmental conservation. A sustainable tourism body supports and contributes to biodiversity conservation by managing its own property responsibly and respecting or enhancing nearby natural protected areas (or areas of high biological value). Most of the time, this looks like a financial compensation to conservation management, but it can also include making sure that tours, attractions, and infrastructure don’t disturb natural ecosystems.

On the same page, wildlife interactions with free roaming wildlife should be non-invasive and managed responsibly to avoid negative impacts to the animals. As a traveler, prioritize visits to accredited rescue and rehabilitation centers that focus on treating, rehoming, or releasing animals back into the wild, such as the Jaguar Rescue Center in Costa Rica.

Soft Tourism

Soft tourism may highlight local experiences, local languages, or encourage longer time spent in individual areas. This is opposed to hard tourism featuring short duration of visits, travel without respecting culture, taking lots of selfies , and generally feeling a sense of superiority as a tourist.

Many World Heritage Sites, for example, pay special attention to protection, preservation, and sustainability by promoting soft tourism. Peru’s famed Machu Picchu was previously known as one of the world’s worst victims of overtourism , or a place of interest that has experienced negative effects (such as traffic or litter) from excessive numbers of tourists. The attraction has taken steps to control damages in recent years, requiring hikers to hire local guides on the Inca Trail, specifying dates and time on visitor tickets to negate overcrowding, and banning all single use plastics from the site.

Traveling during a destination’s shoulder season , the period between the peak and low seasons, typically combines good weather and low prices without the large crowds. This allows better opportunities to immerse yourself in a new place without contributing to overtourism, but also provides the local economy with income during a normally slow season.

Rural Tourism

Rural tourism applies to tourism that takes place in non-urbanized areas such as national parks, forests, nature reserves, and mountain areas. This can mean anything from camping and glamping to hiking and WOOFing. Rural tourism is a great way to practice sustainable tourism, since it usually requires less use of natural resources.

Community Tourism

Community-based tourism involves tourism where local residents invite travelers to visit their own communities. It sometimes includes overnight stays and often takes place in rural or underdeveloped countries. This type of tourism fosters connection and enables tourists to gain an in-depth knowledge of local habitats, wildlife, and traditional cultures — all while providing direct economic benefits to the host communities. Ecuador is a world leader in community tourism, offering unique accommodation options like the Sani Lodge run by the local Kichwa indigenous community, which offers responsible cultural experiences in the Ecuadorian Amazon rainforest.

" Transport-related CO 2  Emissions of the Tourism Sector – Modelling Results ." World Tourism Organization and International Transport Forum , 2019, doi:10.18111/9789284416660

" 45 Arrivals Every Second ." The World Counts.

Becken, Susanne. " Water Equity- Contrasting Tourism Water Use With That of the Local Community ." Water Resources and Industry , vol. 7-8, 2014, pp. 9-22, doi:10.1016/j.wri.2014.09.002

Kutty, Govindan M., and T.K. Raghavan Nair. " Periyar Tiger Reserve: Poachers Turned Gamekeepers ." Food and Agriculture Organization.

" GSTC Destination Criteria ." Global Sustainable Tourism Council.

Rinzin, Chhewang, et al. " Ecotourism as a Mechanism for Sustainable Development: the Case of Bhutan ." Environmental Sciences , vol. 4, no. 2, 2007, pp. 109-125, doi:10.1080/15693430701365420

" Booking.com Reveals Key Findings From Its 2019 Sustainable Travel Report ." Booking.com.

" Economic Impact Reports ." World Travel and Tourism Council .

• Costa Rica’s Keys to Success as a Sustainable Tourism Pioneer
• How to Be a Sustainable Traveler: 18 Tips
• Regenerative Travel: What It Is and How It's Outperforming Sustainable Tourism
• What Is Ecotourism? Definition, Examples, and Pros and Cons
• What Is Experiential Tourism?
• What Is Community-Based Tourism? Definition and Popular Destinations
• 3 More Rules for Sustainable Tourism
• What Is Overtourism and Why Is It Such a Big Problem?
• How to Become a Geo-Traveler
• What Is Voluntourism? Does It Help or Harm Communities?
• The World Doesn't Want Your Inukshuk
• 8 Incredible Rainforest Destinations Around the World
• 'Scattered Hotels' Are Saving Historic Villages in Italy and Beyond
• 15 Travel Destinations Being Ruined by Tourism
• How to Make Travel More Sustainable
• What's Special About the Faroe Islands

Sustainable tourism

Related sdgs, promote sustained, inclusive and sustainable ....

Description

Publications.

Tourism is one of the world's fastest growing industries and an important source of foreign exchange and employment, while being closely linked to the social, economic, and environmental well-being of many countries, especially developing countries. Maritime or ocean-related tourism, as well as coastal tourism, are for example vital sectors of the economy in small island developing States (SIDS) and coastal least developed countries (LDCs) (see also: The Potential of the Blue Economy report as well as the Community of Ocean Action on sustainable blue economy).

The World Tourism Organization defines sustainable tourism as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities".

Based on General assembly resolution 70/193, 2017 was declared as the  International Year of Sustainable Tourism for Development.

In the 2030 Agenda for Sustainable Development SDG target 8.9, aims to “by 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism is also highlighted in SDG target 12.b. which aims to “develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products”.

Tourism is also identified as one of the tools to “by 2030, increase the economic benefits to Small Island developing States and least developed countries” as comprised in SDG target 14.7.

In the Rio+20 outcome document The Future We want, sustainable tourism is defined by paragraph 130 as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities by supporting their local economies and the human and natural environment as a whole. ” In paragraph 130, Member States also “call for enhanced support for sustainable tourism activities and relevant capacity-building in developing countries in order to contribute to the achievement of sustainable development”.

In paragraph 131, Member States “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small- and medium-sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”. In this regard, Member States also “underline the importance of establishing, where necessary, appropriate guidelines and regulations in accordance with national priorities and legislation for promoting and supporting sustainable tourism”.

In 2002, the World Summit on Sustainable Development in Johannesburg called for the promotion of sustainable tourism development, including non-consumptive and eco-tourism, in Chapter IV, paragraph 43 of the Johannesburg Plan of Implementation.

At the Johannesburg Summit, the launch of the “Sustainable Tourism – Eliminating Poverty (ST-EP) initiative was announced. The initiative was inaugurated by the World Tourism Organization, in collaboration with UNCTAD, in order to develop sustainable tourism as a force for poverty alleviation.

The UN Commission on Sustainable Development (CSD) last reviewed the issue of sustainable tourism in 2001, when it was acting as the Preparatory Committee for the Johannesburg Summit.

The importance of sustainable tourism was also mentioned in Agenda 21.

For more information and documents on this topic,  please visit this link

UNWTO Annual Report 2015

2015 was a landmark year for the global community. In September, the 70th Session of the United Nations General Assembly adopted the Sustainable Development Goals (SDGs), a universal agenda for planet and people. Among the 17 SDGs and 169 associated targets, tourism is explicitly featured in Goa...

UNWTO Annual Report 2016

In December 2015, the United Nations General Assembly declared 2017 as the International Year of Sustainable Tourism for Development. This is a unique opportunity to devote a year to activities that promote the transformational power of tourism to help us reach a better future. This important cele...

Emerging Issues for Small Island Developing States

The 2012 UNEP Foresight Process on Emerging Global Environmental Issues primarily identified emerging environmental issues and possible solutions on a global scale and perspective. In 2013, UNEP carried out a similar exercise to identify priority emerging environmental issues that are of concern to ...

Transforming our World: The 2030 Agenda for Sustainable Development

This Agenda is a plan of action for people, planet and prosperity. It also seeks to strengthen universal peace in larger freedom, We recognize that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for su...

15 Years of the UNWTO World Tourism Network on Child Protection: A Compilation of Good Practices

Although it is widely recognized that tourism is not the cause of child exploitation, it can aggravate the problem when parts of its infrastructure, such as transport networks and accommodation facilities, are exploited by child abusers for nefarious ends. Additionally, many other factors that contr...

Towards Measuring the Economic Value of Wildlife Watching Tourism in Africa

Set against the backdrop of the ongoing poaching crisis driven by a dramatic increase in the illicit trade in wildlife products, this briefing paper intends to support the ongoing efforts of African governments and the broader international community in the fight against poaching. Specifically, this...

Status and Trends of Caribbean Coral Reefs: 1970-2012

Previous Caribbean assessments lumped data together into a single database regardless of geographic location, reef environment, depth, oceanographic conditions, etc. Data from shallow lagoons and back reef environments were combined with data from deep fore-reef environments and atolls. Geographic c...

Natural Resources Forum: Special Issue Tourism

The journal considers papers on all topics relevant to sustainable development. In addition, it dedicates series, issues and special sections to specific themes that are relevant to the current discussions of the United Nations Commission on Sustainable Development (CSD)....

Thailand: Supporting Sustainable Development in Thailand: A Geographic Clusters Approach

Market forces and government policies, including the Tenth National Development Plan (2007-2012), are moving Thailand toward a more geographically specialized economy. There is a growing consensus that Thailand’s comparative and competitive advantages lie in amenity services that have high reliance...

Road Map on Building a Green Economy for Sustainable Development in Carriacou and Petite Martinique, Grenada

This publication is the product of an international study led by the Division for Sustainable Development (DSD) of the United Nations Department of Economic and Social Affairs (UNDESA) in cooperation with the Ministry of Carriacou and Petite Martinique Affairs and the Ministry of Environment, Foreig...

Natural Resources Forum, a United Nations Sustainable Development Journal (NRF)

  Natural Resources Forum, a United Nations Sustainable Development Journal, seeks to address gaps in current knowledge and stimulate relevant policy discussions, leading to the implementation of the sustainable development agenda and the achievement of the Sustainable...

UN Ocean Conference 2025

Our Ocean, Our Future, Our Responsibility “The ocean is fundamental to life on our planet and to our future. The ocean is an important source of the planet’s biodiversity and plays a vital role in the climate system and water cycle. The ocean provides a range of ecosystem services, supplies us with

UN Ocean Conference 2022

The UN Ocean Conference 2022, co-hosted by the Governments of Kenya and Portugal, came at a critical time as the world was strengthening its efforts to mobilize, create and drive solutions to realize the 17 Sustainable Development Goals by 2030.

58th Session of the Commission for Social Development – CSocD58

22nd general assembly of the united nations world tourism organization, world tourism day 2017 official celebration.

This year’s World Tourism Day, held on 27 September, will be focused on Sustainable Tourism – a Tool for Development. Celebrated in line with the 2017 International Year of Sustainable Tourism for Development, the Day will be dedicated to exploring the contribution of tourism to the Sustainable Deve

World Tourism Day 2016 Official Celebration

Accessible Tourism for all is about the creation of environments that can cater for the needs of all of us, whether we are traveling or staying at home. May that be due to a disability, even temporary, families with small children, or the ageing population, at some point in our lives, sooner or late

4th Global Summit on City Tourism

The World Tourism Organisation (UNWTO) and the Regional Council for Tourism of Marrakesh with support of the Government of Morroco are organizing the 4th Global Summit on City Tourism in Marrakesh, Morroco (9-10 December 2015). International experts in city tourism, representatives of city DMOs, of

2nd Euro-Asian Mountain Resorts Conference

The World Tourism Organisation (UNWTO) and Ulsan Metropolitan City with support of the Government of the Republic of Korea are organizing the 2nd Euro-Asian Mountain Resorts Conference, in Ulsan, Republic of Korea (14 - 16 October 2015). Under the title “Paving the Way for a Bright Future for Mounta

21st General Assembly of the United Nations World Tourism Organization

Unwto regional conference enhancing brand africa - fostering tourism development.

Tourism is one of the Africa’s most promising sectors in terms of development, and represents a major opportunity to foster inclusive development, increase the region’s participation in the global economy and generate revenues for investment in other activities, including environmental preservation.

• January 2017 International Year of Tourism In the context of the universal 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), the International Year aims to support a change in policies, business practices and consumer behavior towards a more sustainable tourism sector that can contribute to the SDGs.
• January 2015 Targets 8.9, 12 b,14.7 The 2030 Agenda for Sustainable Development commits Member States, through Sustainable Development Goal Target 8.9 to “devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism, as a driver for jobs creation and the promotion of local culture and products, is also highlighted in Sustainable Development Goal target 12.b. Tourism is also identified as one of the tools to “increase [by 2030] the economic benefits to Small Island developing States and least developed countries”, through Sustainable Development Goals Target 14.7.
• January 2012 Future We Want (Para 130-131) Sustainable tourism is defined as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities” as well as to “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small and medium sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”.
• January 2009 Roadmap for Recovery UNWTO announced in March 2009 the elaboration of a Roadmap for Recovery to be finalized by UNWTO’s General Assembly, based on seven action points. The Roadmap includes a set of 15 recommendations based on three interlocking action areas: resilience, stimulus, green economy aimed at supporting the tourism sector and the global economy.
• January 2008 Global Sustainable Tourism Criteria The Global Sustainable Tourism Criteria represent the minimum requirements any tourism business should observe in order to ensure preservation and respect of the natural and cultural resources and make sure at the same time that tourism potential as tool for poverty alleviation is enforced. The Criteria are 41 and distributed into four different categories: 1) sustainability management, 2) social and economic 3) cultural 4) environmental.
• January 2003 WTO becomes a UN specialized body By Resolution 453 (XV), the Assembly agreed on the transformation of the WTO into a United Nations specialized body. Such transformation was later ratified by the United Nations General Assembly with the adoption of Resolution A/RES/58/232.
• January 2003 1st Int. Conf. on Climate Change and Tourism The conference was organized in order to gather tourism authorities, organizations, businesses and scientists to discuss on the impact that climate change can have on the tourist sector. The event took place from 9 till 11 April 2003 in Djerba, Tunisia.
• January 2002 World Ecotourism Summit Held in May 2002, in Quebec City, Canada, the Summit represented the most important event in the framework of the International Year of Ecosystem. The Summit identified as main themes: ecotourism policy and planning, regulation of ecotourism, product development, marketing and promotion of ecotourism and monitoring costs and benefits of ecotourism.
• January 1985 Tourism Bill of Rights and Tourist Code At the World Tourism Organization Sixth Assembly held in Sofia in 1985, the Tourism Bill of Rights and Tourist Code were adopted, setting out the rights and duties of tourists and host populations and formulating policies and action for implementation by states and the tourist industry.
• January 1982 Acapulco Document Adopted in 1982, the Acapulco Document acknowledges the new dimension and role of tourism as a positive instrument towards the improvement of the quality of life for all peoples, as well as a significant force for peace and international understanding. The Acapulco Document also urges Member States to elaborate their policies, plans and programmes on tourism, in accordance with their national priorities and within the framework of the programme of work of the World Tourism Organization.

10 Economic impacts of tourism + explanations + examples

There are many economic impacts of tourism, and it is important that we understand what they are and how we can maximise the positive economic impacts of tourism and minimise the negative economic impacts of tourism.

Many argue that the tourism industry is the largest industry in the world. While its actual value is difficult to accurately determine, the economic potential of the tourism industry is indisputable. In fact, it is because of the positive economic impacts that most destinations embark on their tourism journey.

There is, however, more than meets the eye in most cases. The positive economic impacts of tourism are often not as significant as anticipated. Furthermore, tourism activity tends to bring with it unwanted and often unexpected negative economic impacts of tourism.

In this article I will discuss the importance of understanding the economic impacts of tourism and what the economic impacts of tourism might be. A range of positive and negative impacts are discussed and case studies are provided.

At the end of the post I have provided some additional reading on the economic impacts of tourism for tourism stakeholders , students and those who are interested in learning more.

 Foreign exchange earnings

Contribution to government revenues, employment generation, contribution to local economies, development of the private sector, infrastructure cost, increase in prices, economic dependence of the local community on tourism, foreign ownership and management, economic impacts of tourism: conclusion, further reading on the economic impacts of tourism, the economic impacts of tourism: why governments invest.

Tourism brings with it huge economic potential for a destination that wishes to develop their tourism industry. Employment, currency exchange, imports and taxes are just a few of the ways that tourism can bring money into a destination.

In recent years, tourism numbers have increased globally at exponential rates, as shown in the World Tourism Organisation data below.

There are a number of reasons for this growth including improvements in technology, increases in disposable income, the growth of budget airlines and consumer desires to travel further, to new destinations and more often.

Here are a few facts about the economic importance of the tourism industry globally:

• The tourism economy represents 5 percent of world GDP
• Tourism contributes to 6-7 percent of total employment
• International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports
• The tourism industry is valued at US$1trillion a year
• Tourism accounts for 30 percent of the world’s exports of commercial services
• Tourism accounts for 6 percent of total exports
• 1.4billion international tourists were recorded in 2018 (UNWTO)
• In over 150 countries, tourism is one of five top export earners
• Tourism is the main source of foreign exchange for one-third of developing countries and one-half of less economically developed countries (LEDCs)

There is a wealth of data about the economic value of tourism worldwide, with lots of handy graphs and charts in the United Nations Economic Impact Report .

In short, tourism is an example of an economic policy pursued by governments because:

•      it brings in foreign exchange
•      it generates employment
•      it creates economic activity

Building and developing a tourism industry, however, involves a lot of initial and ongoing expenditure. The airport may need expanding. The beaches need to be regularly cleaned. New roads may need to be built. All of this takes money, which is usually a financial outlay required by the Government.

For governments, decisions have to be made regarding their expenditure. They must ask questions such as:

How much money should be spent on the provision of social services such as health, education, housing?

How much should be spent on building new tourism facilities or maintaining existing ones?

If financial investment and resources are provided for tourism, the issue of opportunity costs arises.

By opportunity costs, I mean that by spending money on tourism, money will not be spent somewhere else. Think of it like this- we all have a specified amount of money and when it runs out, it runs out. If we decide to buy the new shoes instead of going out for dinner than we might look great, but have nowhere to go…!

In tourism, this means that the money and resources that are used for one purpose may not then be available to be used for other purposes. Some destinations have been known to spend more money on tourism than on providing education or healthcare for the people who live there, for example.

This can be said for other stakeholders of the tourism industry too.

There are a number of independent, franchised or multinational investors who play an important role in the industry. They may own hotels, roads or land amongst other aspects that are important players in the overall success of the tourism industry. Many businesses and individuals will take out loans to help fund their initial ventures.

So investing in tourism is big business, that much is clear. What what are the positive and negative impacts of this?

Positive economic impacts of tourism

So what are the positive economic impacts of tourism? As I explained, most destinations choose to invest their time and money into tourism because of the positive economic impacts that they hope to achieve. There are a range of possible positive economic impacts. I will explain the most common economic benefits of tourism below.

One of the biggest benefits of tourism is the ability to make money through foreign exchange earnings.

Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy. How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up!

Some currencies are worth more than others and so some countries will target tourists from particular areas. I remember when I visited Goa and somebody helped to carry my luggage at the airport. I wanted to give them a small tip and handed them some Rupees only to be told that the young man would prefer a British Pound!

Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro .

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated.

Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes.

Taxes differ considerably between destinations. I will never forget the first time that I was asked to pay a departure tax (I had never heard of it before then), because I was on my way home from a six month backpacking trip and I was almost out of money!

Japan is known for its high departure taxes. Here is a video by a travel blogger explaining how it works.

According to the World Tourism Organisation, the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

Indirect contributions come from goods and services supplied to tourists which are not directly related to the tourism industry.

Take food, for example. A tourist may buy food at a local supermarket. The supermarket is not directly associated with tourism, but if it wasn’t for tourism its revenues wouldn’t be as high because the tourists would not shop there.

There is also the income that is generated through induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed.

The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers.

There are two types of employment in the tourism industry: direct and indirect.

Direct employment includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few.

Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry. Take a fisherman, for example. He does not have any contact of dealings with tourists. BUT he does sell his fish to the hotel which serves tourists. So he is indirectly employed by the tourism industry, because without the tourists he would not be supplying the fish to the hotel.

It is because of these indirect relationships, that it is very difficult to accurately measure the economic value of tourism.

It is also difficult to say how many people are employed, directly and indirectly, within the tourism industry.

Furthermore, many informal employments may not be officially accounted for. Think tut tut driver in Cambodia or street seller in The Gambia – these people are not likely to be registered by the state and therefore their earnings are not declared.

It is for this reason that some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy.

If sustainable tourism is demonstrated, money will be directed to areas that will benefit the local community most.

There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or volunteer tourism projects.

The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect.

The multiplier effect relates to spending in one place creating economic benefits elsewhere. Tourism can do wonders for a destination in areas that may seem to be completely unrelated to tourism, but which are actually connected somewhere in the economic system.

Let me give you an example.

A tourist buys an omelet and a glass of orange juice for their breakfast in the restaurant of their hotel. This simple transaction actually has a significant multiplier effect. Below I have listed just a few of the effects of the tourist buying this breakfast.

The waiter is paid a salary- he spends his salary on schooling for his kids- the school has more money to spend on equipment- the standard of education at the school increases- the kids graduate with better qualifications- as adults, they secure better paying jobs- they can then spend more money in the local community…

The restaurant purchases eggs from a local farmer- the farmer uses that money to buy some more chickens- the chicken breeder uses that money to improve the standards of their cages, meaning that the chickens are healthier, live longer and lay more eggs- they can now sell the chickens for a higher price- the increased money made means that they can hire an extra employee- the employee spends his income in the local community…

The restaurant purchase the oranges from a local supplier- the supplier uses this money to pay the lorry driver who transports the oranges- the lorry driver pays road tax- the Government uses said road tax income to fix pot holes in the road- the improved roads make journeys quicker for the local community…

So as you can see, that breakfast that the tourist probably gave not another thought to after taking his last mouthful of egg, actually had the potential to have a significant economic impact on the local community!

The private sector has continuously developed within the tourism industry and owning a business within the private sector can be extremely profitable; making this a positive economic impact of tourism.

Whilst many businesses that you will come across are multinational, internationally-owned organisations (which contribute towards economic leakage ).

Many are also owned by the local community. This is the case even more so in recent years due to the rise in the popularity of the sharing economy and the likes of Airbnb and Uber, which encourage the growth of businesses within the local community.

Every destination is different with regards to how they manage the development of the private sector in tourism.

Some destinations do not allow multinational organisations for fear that they will steal business and thus profits away from local people. I have seen this myself in Italy when I was in search of a Starbucks mug for my collection , only to find that Italy has not allowed the company to open up any shops in their country because they are very proud of their individually-owned coffee shops.

Negative economic impacts of tourism

Unfortunately, the tourism industry doesn’t always smell of roses and there are also several negative economic impacts of tourism.

There are many hidden costs to tourism, which can have unfavourable economic effects on the host community.

Whilst such negative impacts are well documented in the tourism literature, many tourists are unaware of the negative effects that their actions may cause. Likewise, many destinations who are inexperienced or uneducated in tourism and economics may not be aware of the problems that can occur if tourism is not management properly.

Below, I will outline the most prominent negative economic impacts of tourism.

Economic leakage in tourism is one of the major negative economic impacts of tourism. This is when money spent does not remain in the country but ends up elsewhere; therefore limiting the economic benefits of tourism to the host destination.

The biggest culprits of economic leakage are multinational and internationally-owned corporations, all-inclusive holidays and enclave tourism.

I have written a detailed post on the concept of economic leakage in tourism, you can take a look here- Economic leakage in tourism explained .

Another one of the negative economic impacts of tourism is the cost of infrastructure. Tourism development can cost the local government and local taxpayers a great deal of money.

Tourism may require the government to improve the airport, roads and other infrastructure, which are costly. The development of the third runway at London Heathrow, for example, is estimated to cost £18.6billion!

Money spent in these areas may reduce government money needed in other critical areas such as education and health, as I outlined previously in my discussion on opportunity costs.

One of the most obvious economic impacts of tourism is that the very presence of tourism increases prices in the local area.

Have you ever tried to buy a can of Coke in the supermarket in your hotel? Or the bar on the beachfront? Walk five minutes down the road and try buying that same can in a local shop- I promise you, in the majority of cases you will see a BIG difference In cost! (For more travel hacks like this subscribe to my newsletter – I send out lots of tips, tricks and coupons!)

Increasing demand for basic services and goods from tourists will often cause price hikes that negatively impact local residents whose income does not increase proportionately.

Tourism development and the related rise in real estate demand may dramatically increase building costs and land values. This often means that local people will be forced to move away from the area that tourism is located, known as gentrification.

Taking measures to ensure that tourism is managed sustainably can help to mitigate this negative economic impact of tourism. Techniques such as employing only local people, limiting the number of all-inclusive hotels and encouraging the purchasing of local products and services can all help.

Another one of the major economic impacts of tourism is dependency. Many countries run the risk of becoming too dependant on tourism. The country sees $ signs and places all of its efforts in tourism. Whilst this can work out well, it is also risky business!

If for some reason tourism begins to lack in a destination, then it is important that the destination has alternative methods of making money. If they don’t, then they run the risk of being in severe financial difficulty if there is a decline in their tourism industry.

In The Gambia, for instance, 30% of the workforce depends directly or indirectly on tourism. In small island developing states, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica.

There are a number of reasons that tourism could decline in a destination.

The Gambia has experienced this just recently when they had a double hit on their tourism industry. The first hit was due to political instability in the country, which has put many tourists off visiting, and the second was when airline Monarch went bust, as they had a large market share in flights to The Gambia.

Other issues that could result in a decline in tourism includes economic recession, natural disasters and changing tourism patterns. Over-reliance on tourism carries risks to tourism-dependent economies, which can have devastating consequences.

The last of the negative economic impacts of tourism that I will discuss is that of foreign ownership and management.

As enterprise in the developed world becomes increasingly expensive, many businesses choose to go abroad. Whilst this may save the business money, it is usually not so beneficial for the economy of the host destination.

Foreign companies often bring with them their own staff, thus limiting the economic impact of increased employment. They will usually also export a large proportion of their income to the country where they are based. You can read more on this in my post on economic leakage in tourism .

As I have demonstrated in this post, tourism is a significant economic driver the world over. However, not all economic impacts of tourism are positive. In order to ensure that the economic impacts of tourism are maximised, careful management of the tourism industry is required.

If you enjoyed this article on the economic impacts of tourism I am sure that you will love these too-

• Environmental impacts of tourism
• The 3 types of travel and tourism organisations
• 150 types of tourism! The ultimate tourism glossary
• 50 fascinating facts about the travel and tourism industry
• 23 Types of Water Transport To Keep You Afloat

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Why Is Tourism Important? Everything You Need To Know

By: Author Mitch Glass

Posted on Last updated: March 22, 2023

Without seeing any facts or statistics, most everyone agrees that tourism is important for one reason or another. 

But if asked to explain why, you might be at a loss for words. 

So, why is tourism important anyway?

In this guide, we cover the importance of tourism — including all the pros and cons.

Is tourism a good thing? Is it harmful?

Let’s take a look.

Table of Contents

Why is tourism important?

What are the positive effects of tourism, the economic impact of tourism in developing countries, what are the social benefits of tourism, how does tourism improve the quality of life, why is domestic tourism important, what are the positive effects of tourism on culture, how does tourism benefit the environment, what are the negative effects of tourism, why is sustainable tourism important, the importance of tourism: is tourism good or bad.

Tourism is important to local economies around the world and the people living in them. 

In 2019, the tourism industry was worth more than 1.1 trillion dollars in the U.S. alone. Over 15.8 million jobs rely on it. In many other countries, including the Maldives, Aruba, and Seychelles, tourism accounts for over 40% of GDP.

Tourism provides jobs and generates income. A lot of the money tourists spend — especially when spent with local businesses — benefits communities across the globe. 

In some developing countries, tourism is a financial lifeline.

But tourism isn’t just about money. It’s also important to people’s well-being.

Tourists benefit from traveling too (for more than just a bit of sun). Exploring the world provides a break from the repetition of everyday life — it can make you happier, healthier, and more productive. It also promotes biodiversity and allows people to fall in love with other cultures and ways of living.

First and foremost — people love to travel. 

Humans are curious creatures by nature. We’re always looking for new places to explore. Tourism provides an escape and a way of experiencing the world. Some people see tourism and travel as a hobby , but others actually consider it a lifestyle.

It creates millions of jobs and boosts the global economy — especially in popular countries. Before COVID-19, there were 4.5 million tourism jobs in Thailand. Since the pandemic ground travel to a halt, a whopping 1.45 million of those jobs have been lost. 

So, in some senses, tourism is vital.

Travel also spreads cultural understanding, acceptance, and education. 

When people visit places like Hiroshima Peace Memorial Park, the 9/11 Memorial, or the Holocaust Museum in Berlin, they develop more empathy for those who suffered history’s atrocities than they would from simply reading about it online.

Plus, research concludes that people who travel are 7% happier than those who don’t. 

A travel hobby allows you to get out of a routine. It allows you to try new things. And when you travel, you don’t have all the day-to-day stresses of work-life hanging over you. In fact, many love tourism so much, they ditch their day jobs and trade them for travel jobs that can earn from anywhere .

Why is tourism so important to the economy?

The economic benefits of tourism are vast. 

To give you a better understanding, here are a few statistics:

• In China, travel and tourism more than doubled in the last decade, approaching a $1.6 trillion annual spend.
• In Thailand, tourists spend $62.3 billion annually.
• Many Caribbean islands including Aruba, St Lucia, Antigua, Barbuda, and the Bahamas rely on tourism for over 50% of their country’s employment
• The Philippines’ thriving tourism industry employs over 41.2 million Filipinos. 8.3 million tourists visited the Philippines in 2019.

If we eliminated tourism, those countries would lose billions of dollars needed to support their population. There would be higher unemployment and less access to infrastructures like hospitals and schools that governments fund with tourism spending.

The economic impact is even larger in developing countries. Places like Mexico and Thailand have seen a dramatic increase in unemployment since the pandemic began and the tourism industry fell. 

In Mexico, between February and April 2020 (just after the global lockdowns were introduced), around 70,000 tourism jobs in Quintana Roo disappeared. Behind each of those jobs lost is a family struggling to make ends meet.

From January to November 2020, 60% fewer tourists visited Mexico than in the same period in 2019. If this were to continue, it’d push a staggering 10 million people into extreme poverty.

Thailand is another country fueled by tourism. 

Of the predicted 40 million tourists that were expected to arrive in 2020, just over 6 million were actually welcomed in. Between March and August, Thai borders were shut completely. This halt on international travel left the streets deserted, the beaches empty, and tens of thousands of people out of work.

Of course, it’s not all about money. Tourism has many social benefits too, such as improving social inclusion and fostering intercultural understanding. 

The more we experience other ways of life, the less threatened we feel by difference. Travel helps create new relationships between communities which broadens horizons, encourages tolerance, and can even help prevent violence .

It affects our mental health too.

Evidence suggests that experiencing different cultures can have mood-boosting effects. Tourism can improve self-esteem, increase awareness of nature, refresh the body, and renew the mind.

Tourism improves the qualify of life for workers of all ages and experience levels. Hospitality is key for tourism and opens doors for people from all walks of life. It can provide jobs to teenagers who just finished school or the older generation who are passionate about helping. 

Many create lifelong careers through tourism by becoming a pilot, a chef, or even running travel blogs that make money . 

Plus, countless local businesses started thanks to tourism — from the dainty store selling handmade soaps in Italy, to the family-owned Indonesian street-food cart, to the tour guide in Peru who loves telling stories about local legends. 

All these businesses rely on humans globetrotting around our little planet.

And the smile that spreads across your face when you get home and unpack that little bar of soap that smells like Limoncello — that will remind you just how much tourism improves the quality of life.

It’s not just about traveling abroad. Domestic tourism is also important. 

As we’ve seen throughout the COVID-19 pandemic, it can be just as exciting to explore your own country as it is to venture to another. 

So, why is tourism important domestically? 

For one thing, it’s another major driver of the economy. It can also create seasonal work like at Christmas Markets in the winter months or fêtes, carnivals, or festivals in summer.

The money spent is recycled back into the country to fund things like schools, hospitals, or other public services.

Plus, domestic tourism is more accessible to many people. When you travel domestically, you don’t have to worry about visas, the stress of flying, or the potential travel restrictions that come with leaving the country.

So, why is tourism important when it comes to culture? 

Well, culture is an evolving thing. Each year is riddled with new historical events. 

By inviting tourists into the country, you’re opening up your heritage to people from all over the world. They then go back home with a better understanding of your country’s history, and your culture grows, spreads, and evolves. 

Think back to the Peruvian tour guide. If he tells one of his legends to a European tourist, then that person tells someone else, and so on. Before you know it, the story is everywhere.

And it’s not just fabled legends that can start through tourism. The first beer was actually brewed in Iran before it slowly spread throughout the world. The birthplace of pizza is Italy, but now there are states in the U.S. with their own version of the cheese-topped classic. 

Numerous arts, crafts, traditions, and food are developed simply by people exploring one another’s cultures. Cultural interaction and understanding are some of the reasons tourism is important.

Many will tell you that tourism doesn’t benefit the environment at all. However, in some ways, it can be good for our planet. 

People often visit less developed places and bring new ideas and information with them. This can lead to countries adopting more sustainable practices. Sometimes, tourism is not just about traveling, but also helping others where we can.

Tourism is also credited for protecting natural resources and preserving endangered species. By supporting eco-tourism businesses like forest protection schemes, tourists help locals and landowners protect their trees and crops. 

Another example would be the ethical elephant sanctuaries popping up around Thailand. Thanks to tourists who don’t want to support companies who abuse animals, more “ethical” sanctuaries are popping up. 

Without this demand and awareness, positive wouldn’t change as quickly (if at all).

While tourism has many benefits, it also has negative impacts. We must be mindful not to cause too much environmental pollution or take more than a fair share of a country’s natural resources. 

This also includes economic pollution, like taking jobs or creating income inequality where profits go primarily to foreign investors rather than benefiting the country.

When traveling, respect for the local culture and customs is crucial. A lack of it is often why tourists get a bad reputation. Some travelers think they’re free to do whatever they want when visiting another country, but this can be disrespectful.

Foreigners shouldn’t visit a place to gawk at its inhabitants, steal resources, or carry home a superficial understanding of the country they visited. Instead, they should visit to appreciate differences and learn.

These negative effects of tourism are the reason traveling sustainably is so important.

Tourism has many benefits when done sustainably. It can help an area’s environment, people, and economy. 

But what is “ sustainable tourism ” anyway?

Well, sustainable tourism includes a few key elements:

• Minimizing negative environmental impacts (such as pollution) 
• Respecting cultural heritage sites
• Protecting natural habitats

Sustainable tourism helps communities protect their resources and land. It reduces the environmental impact and prevents illegal activities like poaching or smuggling wildlife or endangered species.

To travel sustainably, it’s also important to respect the cultural preservation sites and local traditions. That means not climbing the Egyptian pyramids, taking off your shoes before entering a Thai temple, and not stealing a coin from Rome’s Trevi fountain as your souvenir. 

Sure, one climber or one coin probably won’t make a difference. But millions of tourists visit these places. If people don’t travel sustainably, the attractions will crumble.

Lastly, sustainable tourism means being aware of your energy consumption and carbon footprint. Try to use eco-friendly transport, don’t be wasteful, and bring a reusable water bottle.

A few do’s and dont’s for sustainable travel:

✅ Do try to minimize your carbon footprint as much as possible.  ✅ Do respect local customs that might seem strange or unusual to you ✅ Do consider how tourism impacts sensitive areas, such as scuba diving on fragile coral reefs where carelessness can cause damage.

❌ Don’t litter or damage natural environments. ❌ Don’t buy souvenirs made from endangered wildlife and plants. These are BAD examples of souvenirs . ❌ Don’t leave a trace — Leave a destination in the same condition as you found it (or better).

As you can see, tourism has its flaws. It’s not perfect. 

But the benefits of tourism far outweigh the negative effects, especially as sustainable travel grows in popularity.

Tourism is good — both for travelers exploring new cultures and for locals who can support their families — and if we’re lucky, it’ll rebound soon. 

Mitch is your typical nomadic backpacker. Or at least, he was . But after stopping in Colombia to take “one week” of salsa lessons, his life took a sharp left turn. He met a cute Colombian girl in dance class, fell in love, and got married. Over half a decade has passed since he left his career to travel the world as a digital nomad, and he’s never looked back.

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Get ready to book your next trip — recent study shows travel may help slow down aging

The findings of a recently published study suggest travel could slow or delay the aging process, along with having other health benefits.

By Caitlin Keith

A recent study from a university in Australia looks at how travel affects entropy in the human body and what health benefits that provides, including the potential of slowing down aging.

“The Principle of Entropy Increase: A Novel View of How Tourism Influences Human Health” was published in the Journal of Travel Research in August, according to Fox News .

The study used an entropy perspective to look at how travel could affect an individual’s health.

“For the first time, an interdisciplinary study has applied the theory of entropy to tourism, finding that travel could have positive health benefits, including slowing down the signs of ageing,” per ScienceDaily .

What is entropy?

According to ScienceDaily entropy is “the general trend of the universe towards death and disorder.”

The study done from an entropy perspective suggests entropy changes can be triggered by tourism.

“Positive experiences might mitigate entropy increase and enhance health, while negative experiences may contribute to entropy increase and compromise health,” per ScienceDaily.

Who conducted the study?

The study “The Principle of Entropy Increase: A Novel View of How Tourism Influences Human Health” was conducted by researchers at Edith Cowan University, per Fox News . ECU is found outside Perth, Australia.

The lead researcher on the study was Fangli Hu, a Ph.D. candidate at ECU.

What are the effects of travel on health?

According to ScienceDaily, Hu said an individual’s physical and mental wellness could be enhanced through positive travel experiences including:

• Novel environments
• Engagement in physical activities
• Social interaction
• Fostering of positive emotions.

Positive travel experiences can help the body sustain a low-entropy state.

The researchers who conducted the study found that “travel therapy” could serve as a groundbreaking new health intervention when looked at through an entropy lens.

“Tourism typically exposes people to new surroundings and relaxing activities, and novel settings can stimulate stress responses and elevate metabolic rates, positively influencing metabolic activities and the body’s self-organising capabilities,” per ScienceDaily.

Travel contexts can also trigger an adaptive immune system response which improves the body’s ability to defend itself from external threats.

As Hu told Fox News , “Leisurely travel activities might help alleviate chronic stress, dampen over-activation of the immune system and encourage normal functioning of the self-defense system.”

Recreational travel activities could also release tension and fatigue in joints and muscles.

“This relief helps maintain the body’s metabolic balance and increases the anti-wear-and-tear system’s effectiveness,” Hu told ScienceDaily .

The aging process, according to Hu, is irreversible and can’t be stopped, but it can be slowed down.

All of the potential affects of “travel therapy” can contribute to slowing or delaying the aging process.

According to ScienceDaily there is also research to the contrary which has pointed out tourists can face challenges such as accidents, injuries, violence, infectious disease and safety issues with food and water.