Key Facts about Tourism
World's number one industry and employer.
Grown 25% in last 10 years, 5% in 2010. Tourism causes over 5% of human-caused greenhouse gas emissions (90% from transport). Aviation is 3.5% but one of the fastest growing causes. World poverty is increasing, but tourism can provide local employment and income and value the culture and nature of poor countries, esp. in rural areas. |
Challenges for Sustainable Tourism
1. Tourism has significant potential as a driver for growth for the world economy. The tourism economy
represents 5 per cent of world GDP, while it contributes to 6-7 per cent of total employment. International
tourism ranks fourth (after fuels, chemicals and automotive products) in global exports, with an industry
value of US$1trillion a year, accounting for 30 per cent of the world’s exports of commercial services or 6
per cent of total exports; 935 million international tourists were recorded in 2010 and 4 billion domestic
arrivals in 2008. In over 150 countries, tourism is one of five top export earners, and in 60 it is the number
one export. It is the main source of foreign exchange for one-third of developing countries and one-half
of LDCs.
2. The development of tourism is accompanied by significant challenges. The rapid growth in both
international and domestic travel, the trends to travel farther and over shorter periods of time, and
the preference given to energy-intensive transportation are increasing the non-renewable energy
dependency of tourism, resulting in the sector’s contribution of 5 per cent to global GHG emissions.
Other challenges include excessive water consumption compared with residential water use, discharge
of untreated water, the generation of waste, the damage to local terrestrial and marine biodiversity, and
the threats to the survival of local cultures, built heritage and traditions.
3. Green tourism has the potential to create new jobs and reduce poverty. Travel and tourism are
human-resource intensive, employing directly and indirectly 8 per cent of the global workforce. It is
estimated that one job in the core tourism industry creates about one and a half additional or indirect
jobs in the tourism-related economy. The greening of tourism, which involves efficiency improvements
in energy, water, and waste systems, is expected to reinforce the employment potential of the sector
with increased local hiring and sourcing and significant opportunities in tourism oriented toward local
culture and the natural environment.
4. Tourism development can be designed to support the local economy and poverty reduction. Local
economic effects of tourism are determined by the share of tourism spending in the local economy as
well as the amount of the resulting other economic activities. In greening the tourism sector, therefore,
increasing the involvement of local communities, especially the poor, in the tourism value chain can
contribute to the development of local economy and poverty reduction. This can include the local supply
of products, labour, tourism services, and increasingly “green services” in energy and water efficiency
and waste management. There is increasing evidence that more sustainable tourism in rural areas can
lead to more positive poverty-reducing effects.
5. Investing in the greening of tourism can reduce the cost of energy, water, and waste and enhance
the value of biodiversity, ecosystems and cultural heritage. Investment in energy efficiency has been
found to generate significant returns within a short payback period. Improving waste management
is expected to save money for tourism businesses, create jobs and enhance the attractiveness of
destinations. The investment requirement in conservation and restoration is small relative to the value of
forests, mangroves, wetlands, and coastal zones including coral reefs, which provide ecosystem services
essential for the foundation of economic activities and for human survival. Investment in cultural
heritage—the largest single component of consumer demand for sustainable tourism—is among
the most significant and usually profitable investments a society or tourism sector can make. Under a
green-economy investment scenario, tourism makes a larger contribution to GDP growth and significant
environmental benefits include reductions in water consumption (18 per cent), energy use (44 per cent)
and CO2 emissions (52 per cent) compared with “business-as-usual”.
6. Tourists are demanding the greening of tourism. More than a third of travellers are found to favour
environmentally-friendly tourism and be willing to pay for related experiences. Traditional mass tourism
has reached a stage of steady growth. In contrast, ecotourism, nature, heritage, cultural, and “soft
adventure” tourism are taking the lead and are predicted to grow rapidly over the next two decades. It
is estimated that global spending on ecotourism is increasing about six times the industry-wide rate of
growth.
7. The private sector, especially small firms, can, and must be mobilised to support green tourism.
The tourism sector involves a diverse range of actors. The awareness of green tourism exists mainly in a
selection of larger scale firms. Smaller firms are mostly outside this sphere and diverse supplier groups
may not be connected at all. Specific mechanisms and tools to educate small and medium sized tourism
related enterprises are critical and are most effective when they are accompanied by actionable items.
The promotion and widespread use of internationally recognised standards for sustainable tourism, such
as the Global Sustainable Tourism Criteria (GSTC), can help businesses understand the practical aspects
of sustainable tourism and assist with mobilising investment.
8. Much of the economic potential for green tourism is found in small and medium-sized Enterprises
(SMEs), which need better access to financing for investing in green tourism. The majority of tourism
businesses are SMEs with potential to generate greater income and opportunity from green strategies.
Their single greatest limiting factor for greening, however, is lack of access to capital. Governments and
international organisations can facilitate the financial flow to these important actors with an emphasis
on contributions to the local economy and poverty reduction. Public-private partnerships can spread
the costs and risks of large green tourism investments. Besides reducing administrative fees and offering
favorable interest rates for green tourism projects, in-kind support such as technical, marketing or
business administration assistance, could also help.
9. Destination planning and development strategies are the first step towards the greening of
tourism. In developing tourism strategies, local governments, communities and businesses need to
establish mechanisms for coordinating with ministries responsible for the environment, energy, labour,
agriculture, transport, health, finance, security, and other relevant areas. Clear requirements are needed
in such areas as zoning, protected areas, environmental rules and regulations, labour rules, agricultural
standards, and health requirements particularly related to energy, emissions, water, waste and sanitation.
10. Government investments and policies can leverage private sector actions on green tourism.
Government spending on public goods such as protected areas, cultural assets, water conservation,
waste management, sanitation, public transport, and renewable energy infrastructure can reduce
the cost of green investments by the private sector in green tourism. Governments can also use tax
concessions and subsidies to encourage private investment in green tourism. Time-bound subsidies
can be given, for example, on the purchase of equipment or technology that reduces waste, encourages
energy and water efficiency, the conservation of biodiversity, and the strengthening of linkages with
local businesses and community organisations. At the same time, resource and energy use as well as
waste generation need to be correctly priced to reflect their true cost to society.
represents 5 per cent of world GDP, while it contributes to 6-7 per cent of total employment. International
tourism ranks fourth (after fuels, chemicals and automotive products) in global exports, with an industry
value of US$1trillion a year, accounting for 30 per cent of the world’s exports of commercial services or 6
per cent of total exports; 935 million international tourists were recorded in 2010 and 4 billion domestic
arrivals in 2008. In over 150 countries, tourism is one of five top export earners, and in 60 it is the number
one export. It is the main source of foreign exchange for one-third of developing countries and one-half
of LDCs.
2. The development of tourism is accompanied by significant challenges. The rapid growth in both
international and domestic travel, the trends to travel farther and over shorter periods of time, and
the preference given to energy-intensive transportation are increasing the non-renewable energy
dependency of tourism, resulting in the sector’s contribution of 5 per cent to global GHG emissions.
Other challenges include excessive water consumption compared with residential water use, discharge
of untreated water, the generation of waste, the damage to local terrestrial and marine biodiversity, and
the threats to the survival of local cultures, built heritage and traditions.
3. Green tourism has the potential to create new jobs and reduce poverty. Travel and tourism are
human-resource intensive, employing directly and indirectly 8 per cent of the global workforce. It is
estimated that one job in the core tourism industry creates about one and a half additional or indirect
jobs in the tourism-related economy. The greening of tourism, which involves efficiency improvements
in energy, water, and waste systems, is expected to reinforce the employment potential of the sector
with increased local hiring and sourcing and significant opportunities in tourism oriented toward local
culture and the natural environment.
4. Tourism development can be designed to support the local economy and poverty reduction. Local
economic effects of tourism are determined by the share of tourism spending in the local economy as
well as the amount of the resulting other economic activities. In greening the tourism sector, therefore,
increasing the involvement of local communities, especially the poor, in the tourism value chain can
contribute to the development of local economy and poverty reduction. This can include the local supply
of products, labour, tourism services, and increasingly “green services” in energy and water efficiency
and waste management. There is increasing evidence that more sustainable tourism in rural areas can
lead to more positive poverty-reducing effects.
5. Investing in the greening of tourism can reduce the cost of energy, water, and waste and enhance
the value of biodiversity, ecosystems and cultural heritage. Investment in energy efficiency has been
found to generate significant returns within a short payback period. Improving waste management
is expected to save money for tourism businesses, create jobs and enhance the attractiveness of
destinations. The investment requirement in conservation and restoration is small relative to the value of
forests, mangroves, wetlands, and coastal zones including coral reefs, which provide ecosystem services
essential for the foundation of economic activities and for human survival. Investment in cultural
heritage—the largest single component of consumer demand for sustainable tourism—is among
the most significant and usually profitable investments a society or tourism sector can make. Under a
green-economy investment scenario, tourism makes a larger contribution to GDP growth and significant
environmental benefits include reductions in water consumption (18 per cent), energy use (44 per cent)
and CO2 emissions (52 per cent) compared with “business-as-usual”.
6. Tourists are demanding the greening of tourism. More than a third of travellers are found to favour
environmentally-friendly tourism and be willing to pay for related experiences. Traditional mass tourism
has reached a stage of steady growth. In contrast, ecotourism, nature, heritage, cultural, and “soft
adventure” tourism are taking the lead and are predicted to grow rapidly over the next two decades. It
is estimated that global spending on ecotourism is increasing about six times the industry-wide rate of
growth.
7. The private sector, especially small firms, can, and must be mobilised to support green tourism.
The tourism sector involves a diverse range of actors. The awareness of green tourism exists mainly in a
selection of larger scale firms. Smaller firms are mostly outside this sphere and diverse supplier groups
may not be connected at all. Specific mechanisms and tools to educate small and medium sized tourism
related enterprises are critical and are most effective when they are accompanied by actionable items.
The promotion and widespread use of internationally recognised standards for sustainable tourism, such
as the Global Sustainable Tourism Criteria (GSTC), can help businesses understand the practical aspects
of sustainable tourism and assist with mobilising investment.
8. Much of the economic potential for green tourism is found in small and medium-sized Enterprises
(SMEs), which need better access to financing for investing in green tourism. The majority of tourism
businesses are SMEs with potential to generate greater income and opportunity from green strategies.
Their single greatest limiting factor for greening, however, is lack of access to capital. Governments and
international organisations can facilitate the financial flow to these important actors with an emphasis
on contributions to the local economy and poverty reduction. Public-private partnerships can spread
the costs and risks of large green tourism investments. Besides reducing administrative fees and offering
favorable interest rates for green tourism projects, in-kind support such as technical, marketing or
business administration assistance, could also help.
9. Destination planning and development strategies are the first step towards the greening of
tourism. In developing tourism strategies, local governments, communities and businesses need to
establish mechanisms for coordinating with ministries responsible for the environment, energy, labour,
agriculture, transport, health, finance, security, and other relevant areas. Clear requirements are needed
in such areas as zoning, protected areas, environmental rules and regulations, labour rules, agricultural
standards, and health requirements particularly related to energy, emissions, water, waste and sanitation.
10. Government investments and policies can leverage private sector actions on green tourism.
Government spending on public goods such as protected areas, cultural assets, water conservation,
waste management, sanitation, public transport, and renewable energy infrastructure can reduce
the cost of green investments by the private sector in green tourism. Governments can also use tax
concessions and subsidies to encourage private investment in green tourism. Time-bound subsidies
can be given, for example, on the purchase of equipment or technology that reduces waste, encourages
energy and water efficiency, the conservation of biodiversity, and the strengthening of linkages with
local businesses and community organisations. At the same time, resource and energy use as well as
waste generation need to be correctly priced to reflect their true cost to society.