SUSTAINABLE TOURISM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Sustainable Tourism Market Size and Trends

The sustainable tourism market is estimated to be valued at USD 2.61 Bn in 2024 and is expected to reach USD 8.73 Bn by 2031, growing at a compound annual growth rate (CAGR) of 18.8% from 2024 to 2031.

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The sustainable tourism market has been witnessing significant growth over the past few years. The increasing focus of the travel industry as well as travelers towards reducing environmental impact and protecting natural and cultural heritage assets has boosted the demand for sustainable tourism practices. Moreover, rising environmental concerns among individuals and stringent government regulations regarding sustainable development have significantly contributed to the market growth. However, high initial costs associated with the implementation and certification of sustainable measures is a major challenge for tourism businesses. Nevertheless, growing eco-consciousness and sustainable development goals pointed by leading organizations are expected to further drive the market going forward.

Rising Environmental Awareness

Rising environmental awareness among people around the world is significantly driving the growth of sustainable tourism market. Tourists are increasingly preferring destinations that are focusing on conservation and protection of natural resources as well as local communities. They want to travel responsibly and reduce their environmental footprint. This trend is encouraging many tourist destinations as well as industry players to adopt sustainable practices. For instance, countries like Costa Rica have transformed their economy by promoting ecotourism. According to the Costa Rica Tourism Board, over 25% of the country's land is now protected for conservation and nearly 30% of the GDP comes from tourism, most of which is driven by nature and adventure activities in sustainably managed national parks and reserves. The number of international tourist arrivals to Costa Rica grew by 8% between 2020 to 2022 as reported by the World Tourism Organization. This clearly shows that sustainable tourism practices can boost tourism revenues if promoted properly. Going forward, the demand for sustainable travel options is expected to steadily rise among millennials and generation Z travelers who are taking conscious efforts to offset their carbon footprint through sustainable travel choices. Various reports from United Nations Environment Programme and World Travel and Tourism Council indicate that nearly 70% of travelers will prioritize minimizing environmental impact in planning their future trips. They also estimate that over 50% of global travel will be influenced by sustainability factors by 2023. With strong growth in this market segment, more companies and destinations will be inclined to adopt and certify sustainable standards and practices to cater to this influential demographic group and capture the emerging business opportunities.

Market Concentration and Competitive Landscape

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With rising incomes and growing middle classes in emerging markets, more people now travel for the experiences rather than just sightseeing. They want to immerse themselves in local cultures, engage with native communities, and try unique activities. While scenic beauty and infrastructure were the main draws earlier, travelers today are keen to visit places off the beaten track and do things that give them memories and stories to share. This has led to a surge in the demand for specialized tours, volunteer projects, outdoor adventures, culinary trails, wellness retreats, and cultural festivals. Travelers show increased willingness to spend on authentic and interactive activities even if they are more physically demanding or involve crude accommodations. Destinations are customizing their offerings to suit this evolving motivational shift. Many are promoting eco-lodges, homestays, farm visits, indigenous arts, or nature-based escapes that impart a sense of fulfillment to the travelers through sustainable tourism models. This experience economy is encouraging conservation efforts as travelers appreciate destinations that can deliver memorable experiences while protecting environmental and societal aspects.

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One of the major challenges for the sustainable tourism market is the lack of standardization and certification for sustainability practices. While many tourism businesses are making efforts towards sustainability, it is difficult for consumers to identify and choose the ones that are truly sustainable. Other challenges include the typically higher costs involved in sustainable operations which can put small businesses at a disadvantage. Changing consumer behaviors and creating mass awareness about issues like climate change and over tourism is also an ongoing task for the sustainable tourism industry.

 Market Opportunities: Growing awareness about environmental and social impacts of tourism

The growing awareness about environmental and social impacts of tourism has opened up several new opportunities for sustainable tourism businesses. More travelers now care about choosing eco-friendly accommodation and tours. This growing demand allows businesses to charge premium prices for sustainable offerings. Technological solutions are making sustainable practices more accessible and affordable.

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In terms of type, coastal tourism contributes 37.8% share of the sustainable tourism market owing to people's innate fascination with beaches and the ocean. Coastal destinations allow tourists to relax in a tranquil natural setting while enjoying scenic vistas of the sea. Being near the water has psychological and physiological benefits for reducing stress due to the calming effects of waves. Many travelers are also attracted to coastal areas for water-based activities like swimming, surfing, fishing, and boating. The opportunity to immerse in coastal culture further enhances the experience. With small boutique resorts and homestays blending seamlessly with the coastline, tourists can feel connected to local communities and immerse themselves in sustainable ways of life. The booming wellness tourism also drives demand, as coastal destinations provide the ideal backdrop for holistic rejuvenation.

 Insights, By Traveler Type: Strength in numbers

In terms of traveler type, the family segment contributes 39.3% share of the sustainable tourism market. Traveling as a family provides an opportunity for quality time, bonding, and making cherished memories together. Sustainable destinations appeal to families as they allow children to enjoy nature alongside experiential learning in a safe, community-focused environment. Most sustainable resorts and homestays also customize services and activities to different family member's needs, from meals to recreation. The emphasis on local culture and minimal ecological footprint further gives families a sense of responsibility in travelling responsibly. Multi-generational family trips are also on the rise, as sustainably-conscious baby boomers seek to pass on values of respecting communities and environment to future generations.

Insights, by Age Group: Strong sense of environmental advocacy and social consciousness

In terms of age group, millennials top the sustainable tourism market owing to their strong sense of environmental advocacy and social consciousness with 38.5% of the market share. Having grown up in a time of heightened climate change awareness, most millennials incorporate sustainability into all aspects of lifestyle, including travel. They are eager to experience destinations that foster local livelihoods and conserve nature. By interacting with communities, they also satisfy their quest for unique experiences over mass tourism. Sustainable options allow millennials to voyage responsibly according to their values. Some are even drawn to volunteer opportunities that let them contribute to conservation causes. With strong online presence, millennials influence peers to follow in their footsteps, driving further growth of sustainable tourism through word-of-mouth -- cementing it as the tourism of the future.

Regional Insights

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North America continues to dominate the global sustainable tourism market with 38.8% of the market share. The U.S. is the largest market due to high awareness and adoption of sustainable practices across the tourism industry. Major hotel chains, cruise operators, and tour operators have implemented sustainable initiatives to reduce their environmental footprint. There is also strong support from the government through legislation and policies promoting eco-friendly tourism. Tourism boards actively market sustainable destinations and experiences to the conscious American traveler. This has ensured large and growing market share for the region.

One market that is rapidly growing is Asia Pacific. Countries like Thailand, Indonesia, and Vietnam have a wealth of natural and cultural destinations that are ideal for sustainable tourism. With increasing disposable incomes, Southeast Asia has witnessed exponential growth in both domestic and international tourist arrivals. Local communities are being trained to offer experiences that showcase natural heritage and indigenous practices, while preserving traditional ways of life. Some forward-looking nations have implemented incentive schemes to encourage greener investments in tourism infrastructure. As a result, sustainable tourism is gaining ground across the region.

Market Report Scope

Sustainable Tourism Industry News

• In November 2023, NEOM and Our Habitas announced the launch of three new hotels in Leyja, Saudi Arabia, with a focus on eco-tourism. The hotels will be located in a natural wadi oasis between 400-meter-tall mountains, and will offer 120 suites with 40 keys each.
• In November 2023, Visit Keweenaw, the tourism authority for the Keweenaw Peninsula, launched its Sustainable Tourism Series. The series aims to raise awareness about light pollution prevention science and the region's black sky for upcoming generations.
• In October 2023, the Tourism Global Center (STGC) of Saudi Arabia established a new worldwide research center to provide improved techniques to support the travel and tourism industry and accelerate its shift to climate neutrality
• In June 2022, the Indian Ministry of Tourism hosted a national summit to promote more sustainable and ethical travel destinations

*Definition:The sustainable tourism market caters to travelers who are looking to explore destinations in an environment-friendly and socially responsible way. This growing market offers opportunities for tourism businesses to provide services like ecotourism, rural tourism, and community-based tourism and more while minimizing negative impacts and supporting local communities. Sustainable tourism aims to educate visitors about environmental and social issues through experiences that also benefit the environment, local culture, and economy in the long run.

Market Segmentation

•  Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Coastal Tourism
  • Mountain Tourism
  • Island Tourism
  • Others
•  Traveler Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Solo
  • Group
  • Family
  • Couples
• Age Group Insights (Revenue, USD Bn, 2019 - 2031)
  • Millennial
  • Baby Boomers
  • Generation X
  • Silver Hair
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Wilderness Safaris
  • Basecamp Explorer AS
  • Wild Frontiers Adventures Travel
  • Beyonder Experiences
  • Bouteco
  • Cheeseman’s Ecological Safaris
  • G Adventures Inc.
  • Gondwana Ecotours
  • Inkaterra
  • Intrepid Group Pty Limited
  • LooLa Adventure Resort
  • NATIVE TOURS, INC.
  • Natural Habitat Adventures
  • Responsible Travel
  • Row Adventures
  • Sustainable Travel International
  • Tourism Holdings Limited
  • Undiscovered Mountains
  • Vagabond Tours Limited