Sustainable Tourism: Can Businesses Balance Profit and Planet?
Sustainability

Sustainable Tourism: Can Businesses Balance Profit and Planet?

Maggie MacLellan
Maggie MacLellan February 24, 2025 14 minutes read

Over 1.4 billion people travel internationally annually, contributing $9 trillion to the global economy (World Tourism Organization). Yet, this booming industry comes at a cost of carbon emissions, over-tourism, and environmental degradation. As the world seeks solutions for the climate crisis, the tourism industry faces a critical question: Can businesses remain profitable while protecting the planet? The answer lies in sustainable tourism, a growing movement that seeks to balance profitability with environmental and social responsibility. But is this balance achievable or unrealistic? 

The Environmental and Social Cost of Tourism

Tourism is a double-edged sword, driving economic growth, creating jobs, and fostering cultural exchange while leaving a significant environmental footprint. According to a 2018 study published in Nature Climate Change, tourism accounts for 8% of global carbon emissions, with air travel being the largest contributor (Lenzen et al.). 

Popular destinations like Venice, Bali, and Machu Picchu are crumbling under the weight of over-tourism, which has led to significant environmental degradation, littering, and strained local resources (World Tourism Organization, "Overtourism"). Coral reefs, forests, and wildlife habitats are threatened as unregulated tourism disrupts their ecosystems (World Travel and Tourism Council). 

The social impact is troubling as regional communities are displaced or marginalized to make way for tourism development (Scheyvens). Cultural heritage sites are exploited for profit, losing authenticity and diminishing the prosperity of the communities that consider these sites their home. Economic inequality persists, as profits often flow to multinational corporations rather than local economies (World Bank). For example, in Venice, the influx of tourists has driven residents out of the city, prompting local governments to implement entry fees and visitor caps to mitigate the damage (BBC). Similarly, Thailand’s Maya Bay was closed for four years to allow its ecosystem to recover from the effects of excessive tourism (National Geographic). These examples highlight the need for a more sustainable approach to tourism, and the push for regulations that are enforced and supported by local governments.

What is Sustainable Tourism?

The impacts of one of the world’s largest industries have given rise to a powerful and necessary movement: sustainable tourism. At its core, sustainable tourism focuses on minimizing negative environmental impacts, helping and emphasizing local communities, and promoting cultural preservation (World Tourism Organization, "Sustainable Development"). Sustainable tourism aims to give a travel experience that enriches both the traveler and the destination. This can take many forms, such as ecotourism focused on nature and wildlife conservation to community-based tourism that empowers local populations and builds deeper cultural understanding in travelers. 

Sustainable tourism also emphasizes the importance of long-term planning and responsible resource management. Costa Rica is an example of effective sustainable tourism, generating $4 billion annually while protecting 25% of its land as national parks (National Geographic). The country has strategically invested in conservation efforts, renewable energy, and eco-certification programs, ensuring that tourism supports both the environment and local communities. By prioritizing sustainability as a long-term strategy, Costa Rica demonstrates how destinations can turn ecological responsibility into a competitive advantage, and that sustainable tourism is a practical approach that can be implemented globally.

Sustainability Close to Home: Local Efforts in Canada and the USA

In Canada, Banff National Park has implemented strict visitor limits and shuttle systems to reduce traffic congestion and protect its fragile alpine ecosystems (Parks Canada). Similarly, British Columbia’s Indigenous-led tourism initiatives, such as the Klahoose Wilderness Resort, combine cultural preservation with eco-friendly practices, offering visitors immersive experiences while supporting local communities (Indigenous Tourism Association of Canada). Vancouver has been recognized as one of the greenest cities in the world, with its tourism board promoting eco-friendly accommodations and carbon-neutral tours (Tourism Vancouver). The city’s commitment to sustainability extends to its urban planning, with initiatives like green building standards and extensive public transit options showing that sustainability isn’t just about protecting nature, it’s about respecting and uplifting the people who call these places home. 

Image: Banff National Park's tour website showcasing the SDGs they obtain.

In the United States, the National Park Service (NPS) has faced significant challenges in balancing conservation with tourism. During the Trump administration, budget cuts and staffing reductions led to concerns about the maintenance and protection of national parks. In 2017, the administration fired numerous park employees, citing cost-saving measures, while the move sparked local fears of reduced oversight and environmental harm (The Guardian). Without adequate staffing, national parks struggled to manage waste, maintain trails, and protect wildlife, leading to environmental degradation and a diminished visitor experience. These restrictions also had a ripple effect on local economies, as many communities rely on tourism revenue generated by national parks. 

The Business Case for Sustainability

Contrary to the belief that sustainability is a cost burden, it can be a powerful driver of profitability. A 2022 survey by Booking.com found that 87% of travelers want to travel sustainably, with millennials and Gen Z leading the demand (Booking.com). This shift in consumer behavior presents a significant opportunity for businesses to embrace sustainability. Companies that prioritize eco-friendly practices may see higher customer loyalty and enhanced brand reputation. For instance, Intrepid Travel, a carbon-neutral tour operator has reported consistent revenue growth, proving that sustainability and profitability can go hand in hand (Intrepid Travel). Moreover, sustainable practices like energy efficiency and waste reduction lead to significant cost savings. Marriott International, for example, reduced single-use plastics by 50% across its properties, saving millions annually while appealing to eco-conscious travelers (Marriott International). 

Challenges in Achieving Sustainability

Sustainable tourism is not without challenges. The initial investment in sustainable infrastructure, such as renewable energy systems and waste management solutions, can be prohibitive, especially for small businesses (World Bank). In addition, this infrastructure includes higher operational costs compared to traditional tourism models, which pose an additional barrier (World Tourism Organization, "Barriers to Sustainable Tourism"). Consumer behavior is another hurdle. While many travelers express a desire for sustainable options, they are often unwilling to pay a premium for them (Booking.com). This disconnect between intention and action is one of the biggest obstacles to achieving sustainability in the tourism industry. 

Additionally, inconsistent regulations across countries and a lack of enforcement of sustainability standards further complicate efforts (Global Sustainable Tourism Council). Small businesses in developing countries struggle to obtain eco-certifications due to high costs, while luxury resorts face challenges in balancing sustainability with guest expectations (World Bank; Forbes). These obstacles highlight the need for innovative solutions and industry-wide collaboration.

Strategies for Balancing Profit and Planet

To overcome these challenges, businesses can consider adopting innovative strategies. Subscription-based travel services, such as eco-tourism memberships, are gaining popularity as a way to promote sustainable travel while ensuring steady revenue (Skift). These models encourage long-term commitment from travelers and provide businesses with predictable income streams. Partnerships with local communities and NGOs can also enhance sustainability efforts, ensuring that economic benefits are shared equitably (World Tourism Organization, "Partnerships for Sustainability"). 

Education and advocacy are equally important. Campaigns that educate travelers about sustainable practices, along with certifications like those from the Global Sustainable Tourism Council (GSTC), can drive consumer behavior toward more responsible choices (Global Sustainable Tourism Council).

 

Image: An example of one of Airbnb's Eco-Friendly Stays initiative 

Companies like Airbnb and G Adventures are leading the way. Airbnb’s “Eco-Friendly Stays” filter option displays sustainable accommodations, making it easy for travelers to make eco-conscious decisions (Airbnb). Meanwhile, G Adventures’ “Ripple Score” measures how much money stays in local communities, ensuring that tourism benefits those who need it most (G Adventures). 

A Sustainable Future for Tourism?

While challenges remain, the growing demand for sustainable travel and the success of existing and emerging businesses prove that it is possible to progress in profit, while protecting the environment and local communities. Businesses that embrace sustainability today will not only safeguard the planet but also secure their place in the tourism industry of tomorrow. As travelers, policymakers, and businesses come together, sustainable tourism can become more than just an ideal, it can be the new standard for travel. The path to sustainability is not easy, but it’s one worth taking and is a necessity for the future of our planet and the communities that depend on it. 






Works Cited:

Airbnb. “Eco-Friendly Stays.” Airbnb, 2023, www.airbnb.com.

BBC. “Venice to Charge Entry Fee for Day-Trippers.” BBC News, 2023, www.bbc.com.

Booking.com. Sustainable Travel Report 2022. Booking.com, 2022, www.booking.com.

Forbes. “The Challenges of Sustainable Luxury Tourism.” Forbes, 2023, www.forbes.com.

Global Sustainable Tourism Council. Eco-Certifications and Standards. GSTC, 2023, www.gstcouncil.org.

G Adventures. Ripple Score. G Adventures, 2023, www.gadventures.com.

Indigenous Tourism Association of Canada. “Klahoose Wilderness Resort.” ITAC, 2023, www.indigenoustourism.ca.

Intrepid Travel. Carbon Neutral Operations. Intrepid Travel, 2023, www.intrepidtravel.com.

Lenzen, Manfred, et al. “The Carbon Footprint of Global Tourism.” Nature Climate Change, vol. 8, 2018, pp. 522–528.

Marriott International. Reducing Single-Use Plastics. Marriott, 2022, www.marriott.com.

National Geographic. Costa Rica’s Eco-Tourism Success. National Geographic, 2021, www.nationalgeographic.com.

National Park Service. Sustainable Practices in Yosemite. NPS, 2023, www.nps.gov.

Parks Canada. Banff National Park Visitor Management. Parks Canada, 2023, www.pc.gc.ca.

Scheyvens, Regina. Tourism and Poverty. Routledge, 2018.

Skift. The Rise of Subscription-Based Travel Services. Skift, 2023, www.skift.com.

The Guardian. “Trump’s National Park Cuts Raise Concerns.” The Guardian, 2017, www.theguardian.com.

Tourism Vancouver. Sustainable Tourism Initiatives. Tourism Vancouver, 2023, www.tourismvancouver.com.

World Bank. Tourism and Economic Inequality. World Bank, 2021, www.worldbank.org.

World Tourism Organization. International Tourism Highlights. UNWTO, 2023, www.unwto.org.

World Travel and Tourism Council. Environmental Impact of Tourism. WTTC, 2023, www.wttc.org.

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2 comments
Photo of Nicolas Puentes
Nicolas Puentes February 25, 2025

As a fellow traveler that loves to go and explore new places and world wonders such as Machu Picchu, I completely agree with the balancing of profit and planet. It is needed to help preserve this places so that our future generations get the opportunity to witness them as well. Good job Maggie!!

Photo of Nicolas Puentes
Nicolas Puentes February 25, 2025

As a fellow traveler that loves to go and explore new places and world wonders such as Machu Picchu, I completely agree with the balancing of profit and planet. It is needed to help preserve this places so that our future generations get the opportunity to witness them as well. Good job Maggie!!

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