Future of Travel

Climate and tourism: Take action to safeguard the future of your business

November 6, 2024

Over the past decades, international and domestic tourism has grown due to several factors: affordable air travel, expanding middle classes, urbanisation, increased connectivity, technological advancements, innovative business models, and improved visa facilitation worldwide.

Contributing over 10% to global GDP and supporting more than one in ten jobs worldwide in 2019, the Travel & Tourism sector has been a significant driver of economic prosperity and job creation. In many countries, tourism serves as a crucial source of economic revenue. For example, in Thailand, tourism is a vital sector, attracting over 28 million tourists in 2023 and providing revenue to multiple small and medium enterprises (SMEs).i

Climate resilience directly contributes to the stability of tourism destinations. By implementing measures to mitigate and adapt to climate change, destinations can protect their natural resources, which are often the primary attractions for tourists. For instance, destinations like Puerto Rico and the Philippines have developed sophisticated resilience strategies that include climate risk assessments, biodiversity conservation plans, and hazard mapping.1,2 These measures help preserve beaches, forests, and other natural assets that are crucial for tourism.

Over the past decades, international and domestic tourism has grown due to several factors: affordable air travel, expanding middle classes, urbanisation, increased connectivity, technological advancements, innovative business models, and improved visa facilitation worldwide.

Contributing over 10% to global GDP and supporting more than one in ten jobs worldwide in 2019, the Travel & Tourism sector has been a significant driver of economic prosperity and job creation. In many countries, tourism serves as a crucial source of economic revenue. For example, in Thailand, tourism is a vital sector, attracting over 28 million tourists in 2023 and providing revenue to multiple small and medium enterprises (SMEs).i

ACTIONS FOR ECONOMIC RESILIENCE:

  • Implement climate mitigation measures: SMEs in the travel & tourism sector should adopt measures to mitigate the impact of climate change. This includes reducing carbon emissions, investing in sustainable infrastructure, and developing strategies to handle extreme weather events to minimise operational disruptions and costs.
  • Adopt sustainable business practices: To meet the growing market demand for eco-friendly travel options, SMEs should integrate sustainable practices into their operations. This can attract environmentally conscious consumers, helping to maintain and grow market share while also complying with regulatory pressures and avoiding potential penalties.
  • Enhance long-term viability through climate action: SMEs should focus on actions that ensure the long-term viability of tourism destinations. This involves safeguarding natural and cultural assets, promoting conservation efforts, and actively participating in the transition to a low-carbon economy to sustain their attractiveness to tourists and secure future revenues.

However, the sector contributes significantly towards carbon emissions. A 2019 study found that about 5% of all man-made emissions stemmed from tourism-related transport. The study projected a 25% increase in transport-related greenhouse gas emissions (GHG) by 2030.ii Currently, with Travel & Tourism emissions estimated to account for 8% to 11% of GHG emissions (equivalent to 3.9 to 5.4 billion tonnes of carbon emissions in 2019), it's evident that this impact is significant.  

This calls for the urgent need to highlight the financial necessity of implementing measures to mitigate the impact of climate change. This is due to several factors such as:

  • Economic risks: Climate change poses substantial risks to the Travel & Tourism sector, including damage to infrastructure and disruptions to travel patterns due to extreme weather events. This can lead to increased operational costs for SMEs.
  • Market demand: With growing awareness and concern about environmental issues, consumers are increasingly seeking sustainable travel options. In fact, 61% of them want to travel in a more carbon-neutral fashion, while more than 80% of tourists intend to prioritise sustainability in their upcoming trips. Failure to address climate change could lead to a loss of market share and revenue for SMEs in the sector.
  • Regulatory pressures: Governments worldwide are implementing regulations and policies to reduce carbon emissions and promote sustainable practices. Non-compliance can result in penalties and reputational damage for SMEs and other companies.
  • Long-term viability: Climate change poses existential threats to destinations, affecting their attractiveness to tourists. By taking climate action, the Travel & Tourism sector can ensure their long-term viability and resilience, thereby safeguarding future revenues.

This underscores the necessity for proactive measures, not only to minimise risks but also to capitalise on emerging opportunities in the transition to a low-carbon economy.

Tourism demand is highly sensitive to adverse economic, environmental, and social impacts, making businesses, communities, and livelihoods that depend on them increasingly vulnerable. Therefore, it is essential for the sector to intensify its efforts to combat this crisis by exploring all pathways to achieve net zero. This requires strong, tangible commitments and actions that drive change within the sector and beyond its boundaries.

This article is based on the WTTC report “A Net Zero Roadmap for Travel and Tourism: Proposing a New Target Framework for the Travel & Tourism Sector”, published November 2021

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