by Market Overview
Sustainable tourism involves visiting destinations in a way that minimizes negative impacts and enriches both the local communities and environment. It focuses on local culture, heritage and traditions while preserving natural resources. Tourism products that focus on experiential and responsible travel are gaining popularity as travellers are looking for authentic experiences through activities like river rafting, hiking, wildlife spotting, village visits etc. while reducing their carbon footprint. The growing awareness about climate change and threats to destinations have prompted tourism boards and companies to promote sustainable practices.
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.
Key Takeaways
Key players operating in the Sustainable Tourism are 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, and Vagabond Tours Limited.
The growing Sustainable Tourism Market Trends for locally inspired and culturally immersive trips is driving the sustainable tourism market. Travellers want to learn about local traditions, cuisine and environmentally-friendly practices. With rising incomes and growing middle class in emerging economies, international travel is on the rise globally. Promotion of sustainable tourism practices can ensure communities worldwide benefit from tourism development.
Market Key Trends
One of the key trends in the Sustainable Tourism Market is the focus on community-based and regenerative travel. Operators are working closely with local communities to preserve cultural heritage, empower women and youth, and ensure benefits are shared equitably. For example, revenue from tours and homestays boost local incomes. Some operators also contribute towards community development projects. This mutually-beneficial model of tourism helps maintain support for tourism in these destinations over the long run.
Porter’s Analysis
Threat of new entrants: The sustainable tourism market has medium threat of new entrants. While demand is rising rapidly at 18% CAGR, capital requirements and regulatory compliances prevent many new players from entering the market.
Bargaining power of buyers: Buyers have medium bargaining power. While there are many options for sustainable tours and activities, switching costs are low for buyers who can choose alternatives easily.
Bargaining power of suppliers: Suppliers have low bargaining power given the fragmented nature of the market. Many small local community groups offer unique tour experiences and activities.
Threat of new substitutes: Threat of substitutes is low as Sustainable Tourism Market Regional Analysis offers unique experiences focused on preserving local community lifestyle and environment. General mass tourism is not considered a close substitute.
Competitive rivalry: Intense as major global players compete by expanding activities and destinations while promoting their strong commitment to sustainability practices.
In terms of value, the Europe geographical region presently accounts for over 35% share in the global sustainable tourism market supported by widespread community-based tours and activities.
The fastest growing region for sustainable tourism market between 2024-2031 is expected to be Asia Pacific excluding Japan with over 20% CAGR. This can be attributed to rising incomes, awareness and government initiatives promoting community-based tourism especially in countries like Thailand, Indonesia and India.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
