Let’s get real: Tourism’s toughest challenges are yet to be tackled  

The latest OECD Tourism Trends and Policies report should make us pause for thought as we pack our bags for the summer. The tourism sector is under big pressure – with destinations struggling to manage demand, minimise impacts on the local environment and communities, and adapt to a changing climate. 

Travelling in the right direction? 

Let’s start with some good news. There is little doubt that “sustainability” and related concerns are taken much more seriously now than even five years ago. Most large companies have dedicated sustainability teams, boardrooms are discussing their CSR and ESG performance, and regulators are beginning to enforce compliance. Additionally, many global companies have climate action plans, and most destinations are focussed on managing tourism’s impacts and maximising its benefits. 

These are steps in the right direction. But they are small steps against strong headwinds. Despite these advancements, tourism’s greenhouse gas emissions are reaching record levels instead of declining as required by international agreements.

Climate change is causing severe damage to vulnerable destinations, and many communities are protesting against ever-increasing visitor numbers and the inequity of tourism: a model in which a few reap the benefits while many bear the burdens. 

D is for Dichotomy 

There is no shortage of good ideas within the sector. But they lack scale and ambition. Most efforts often sidestep or outright avoid the most challenging and significant issues, sometimes willingly but mostly due to insurmountable constraints. We’re left with largely performative, tick-box exercises that don’t move the needle far enough, even when well-intentioned, or worse, PR exercises straight from the greenwashing playbook. 

Getting real about the challenges 

To make a real difference, we need to address these challenges head-on. Here’s how. 

Addressing tourism’s carbon footprint 

Getting real about tourism’s impact means getting to grips with its global carbon footprint.  Our report, Envisioning Tourism in 2030 & Beyond, debunks the myth that sustainable aviation fuel (SAF) and new technology will allow us to continue with business as usual. While important and welcome, they won’t cover the expected tripling of air miles flown by 2050. 

Co-ordinating Investment and Policy 

Addressing aviation’s impact will require significant investment and ownership of international travel emissions, which currently fall outside Paris Agreement arrangements. These emissions could be incorporated into destination carbon budgets, creating incentives to decarbonise and optimise the value from each tonne of CO₂ “spent”.  

Norway is analysing the carbon intensity of its tourism sector to target markets and types of tourism that deliver more benefits for fewer emissions. They found that business travel is a particularly carbon-intensive segment, producing twice as much CO₂ per Krone spent compared to leisure tourism.

This is just one of a suite of tools and initiatives launched by Norway to track and reduce emissions, including: incentivising sustainable transportation, such as electric vehicles and public transport; an eco-certification scheme for tourism operators to encourage businesses to adopt better practices; and a calculator for tourism related transport emissions to enable stakeholders to build a holistic picture of their business’s impacts on the environment and society. 

Supporting host communities 

There is also a need to address the costs and burdens, felt by residents. Destinations face limits and thresholds to social, spatial, and natural resources. When these are exceeded, problems such as overtourism and environmental degradation arise. Destination authorities need support to pivot towards a destination stewardship mandate, often requiring new governance models, systems, and budget allocations to deliver more sustainable growth and wider community goals.  

In Vail and Tahoe (USA) both launched their first Destination Stewardship Plans in 2023.  For both destinations, increasing visitor numbers have put pressure on natural resources, infrastructure, and local communities. In response, the destinations sought wider and deeper stakeholder engagement, developed a shared vision for the place, and following assessments of how to manage risk and optimise value from tourism, put in place new priorities for action and indicators relating to these.  

Managing risks and allocating resources 

Understanding and managing risk is crucial, ensuring resources are available where they are needed most. We found little evidence that many businesses are addressing climate risk for either their operations or the communities they operate in. The costs associated with climate change are huge and growing. Vulnerable destinations and communities, particularly those facing severe impacts with limited resources, need coordinated support. One idea for collective action include could be to coordinate climate risk assessments with transparent findings for destinations. 

Strengthening policy and governance 

To move from performative to meaningful change, we need to strengthen the policy and governance landscape. Effective policies, like the Corporate Sustainability Reporting and Green Claims Directives in Europe, provide businesses with certainty and the enabling environment needed to promote collaboration and collective action. Without such policies, businesses lack the incentives to act responsibly.

The private sector also supports better regulation to create a level playing field and provide the right incentives. Innovative collaboration that moves beyond traditional borders and silos will also be key in strengthening policy. In the US Pacific North West, the Travel Foundation has begun exploring what collective climate action looks like, bringing together the bio-region represented by Washington, Oregon and British Columbia to work towards a common agenda rather than a fragmented one.   

It’s time for real action 

The tourism sector has made strides in addressing sustainability, but significant challenges remain. By getting real about these challenges and taking bold, coordinated actions, we can make an impact. It’s time to move beyond performative efforts and embrace meaningful change to ensure a sustainable and equitable future for tourism and the communities it depends on.