As the world marks World Tourism Day on 27SEP, travel is witnessing a transition, declaring sustainability a key factor in its long-term success that requires investment by the industry even if travel consumers are not putting their money where their mouth is.
With the theme of "Tourism and Green Investments," the U.N. World Tourism Organization (UNWTO) is spotlighting the significance of environmentally conscious investments in ensuring a resilient future for global tourism.
UNWTO Secretary-General Zurab Pololikashvili said, "Tourism has never been more important for our economies or for our societies. Its potential is enormous. And, so, on this World Tourism Day, we celebrate tourism's ability to drive growth while also highlighting the vital need for investments to ensure such growth is inclusive and sustainable."
UNWTO's Green Commitment
The UNWTO is orchestrating this year's main event in Riyadh, Saudi Arabia, with delegates from over 100 Member States, encompassing over 50 tourism ministers and top-tier representatives from the global tourism private sector, expected to participate. The UNWTO's advocacy and presentation at the event of a "Global Tourism Investment Framework" prioritizes:
- Environmental conservation
- Protection and respect for host communities' cultural identities
- Long-term economic viability
And it says that such an approach safeguards natural and cultural treasures and opens avenues for economic opportunities and poverty reduction.
Challenges of Sustainable Profitability
According to research from the World Travel & Tourism Council (WTTC), travel and tourism presently account for 8.1 percent of worldwide greenhouse gas emissions. Many leading companies in the sector have established emission-reduction goals for 2050, but advocates say that an equal number are only beginning to contemplate how to integrate climate change considerations into their operations.
Ruben Sanchez, the CEO and co-founder of BEONx – a technology platform focused on hotel profitability, said, "Sustainability has gone from being a trend to becoming a fundamental aspect for hotels. It is essential for a hotel's reputation and long-term success, in addition to meeting the needs of environmentally conscious customers," he said.
Sanchez highlighted the role of sustainability in long-term profitability, observing, "By highlighting their sustainability achievements, hotels enhance their reputation and attract eco-conscious guests. The integration also enables the suggestion of optimal pricing strategies based on the sustainability score, improving transparency and contributing to a more sustainable future by maximizing revenue and promoting environmentally friendly practices."
Sustainability Comes with a Cost
However, the road ahead is full of challenges. Airlines are establishing ambitious targets for eco-friendly jet fuel to achieve net-zero carbon emissions. But, as Open Jaw reported, this comes at a cost to travellers.
"Access to SAF continues to be constrained by high costs, which can be as much as three to five times that of jet fuel," said WestJet CEO Alexis von Hoensbroech.
Similarly, Sanchez emphasizes the hotel industry's mission of expanding guest accommodations and facilities, all while slashing its carbon footprint to achieve full decarbonization by 2050.
The cruise industry has set a goal to attain net-zero carbon cruising by 2050 by taking steps to lessen our ships' carbon impact both when docked and at sea. This involves investments in green technologies and collaborations with cities and ports for sustainable destination handling.
However, sustainable products often come at a higher price than their traditional counterparts because of the costlier materials involved, which inevitably mean higher rates for more sustainable travel products.
Sustainable Travel: Will Travellers Pay?
Travellers say they want sustainability, but will they pay for "regenerative travel?"
Sanchez highlighted that, particularly among millennials, there's a growing preference for environmentally-conscious services and products. "This translates into a willingness to pay more for these services, incentivising hotels to commit to sustainability. In addition, sustainability contributes to attracting this type of traveller by caring for the environment and improving the quality of the travel experience, thus generating a competitive advantage."
According to the University of Central Florida, sustainable travel practices motivate more than just the millennial crowd; a Nielson study found that "a growing number of people from older generations also want companies to become environmental stewards. The study found that "51% of baby boomers will spend more for sustainable products and services as well."
Euromonitor International reported that 51% of travellers are prepared to pay more than 30% extra for adventure and eco-tourism. A recent survey by Virtuoso revealed that the pandemic had influenced 82% of respondents to consider more responsible travel in the future. Additionally, 72% believe that travel should benefit local communities and economies, conserve destinations' cultural heritage, and safeguard the environment.
"Greenwashing"
Recent reports highlight the issue of "greenwashing" in the travel industry - where suppliers, from airlines to hotels and cruise lines - falsely claim eco-friendliness. No industry-wide standards of validating or certifying sustainable travel options yet exist.
In an interview with ABC News, James Thornton, CEO of Intrepid Group, said, "Traveling responsibly is about planning trips carefully so that you're able to enjoy the experience you seek, while leaving a positive footprint in the destination you're visiting."
If travellers are beginning to put their money where their mouths are when it comes to sustainable travel, it offers advisors the opportunity to provide value in helping them identify the best options.
