Sustainable Tourism Trend Analysis

TREND ANALYSIS:
SUSTAINABLE TOURISM
HTM 4170: International Tourism |Dr.Marion Joppe
ABSTRACT
Sustainable tourism is a growing trend within the
tourism industry that promotes a triple bottom line
approach in order to prevent and mitigate negative
impacts of tourism. More than ever before, travelers
are demanding lower environmental and cultural
impacts while companies are building their business
models around the concept of sustainability.
Multilateral organisations are also seen to actively
facilitate policies and frameworks to encourage this
trend.
Anna Sabrina Ahmad Sopian
0810047

TrendAnalysis:Sustainable Tourism |AnnaSabrinaAhmadSopian
Table of Contents
Description of Trend......................................................................................................................3
Historical Perspective ....................................................................................................................6
Breadth of Impacts to Date ...........................................................................................................8
Anticipated Future Evolution and Impacts...............................................................................11
Appendix.......................................................................................................................................14
Appendix 1: Conceptual Diagram of Policy Approaches .....................................................14
Appendix 2: Modernization Theory: Walt Rostow’s Stages of Economic Growth...............15
Appendix 3: History of Tourism Development .....................................................................16
Appendix 4: How Leakages can Occur .................................................................................17
Appendix 5: 10YFP Programme on Sustainable Tourism ....................................................18
Bibliography .................................................................................................................................19

Description of Trend
The tourism industry has seen continuous positive evolution throughout the past six
decades and is currently one of the largest and fastest growing economic sectors in the world.
International tourist arrival has reached 1 billion for the first time in 2012, with a forecasted 1.8
billion arrivals in the year 2030 (UNWTO, 2014). In 2014, travel and tourism generated US$7.6
trillion (10% of global GDP) and 277 million jobs (1 in 11 jobs) for the global economy (WTTC,
2015). In developing countries, the growth of tourism accounts for more than 40% of GDP and is
vital for foreign exchange (WTTC, 2015). Tourism also provides a wide range of indirect
benefits such as facilitating trade, income growth and entrepreneurship, as well as triggering the
provision of new infrastructure, conserving and financing preservations of natural and cultural
heritage, and reinforcing employment potentials. With all these benefits, tourism is often seen as
a country’s most important tool for development. This paper will analyse relationship between
tourism and development theories from a historical perspective, and the trend of increasing
awareness among tourists, businesses and multinational organizations to operate tourism
sustainably.
Despite all the positive impacts of tourism around the world, an unsustainable tourism
model can cause degradation to the triple bottom line approach, which is made up of the quality
of environment, society and culture of host communities and economic assets of destinations.
Examples of environmental degradation include the depletion of natural resources, loss of
biodiversity, land degradation, pollution and water shortage. Statistically, five percent of global
carbon dioxide emission is generated by tourism (UNWTO, 2014). Some host countries
experience negative socio-cultural impacts driven by tourism. Culture commodification is highly
prevalent in some communities, such as the Kuna women in Cambodia, who must redesign the

cultural Molas blouse to reflect the interests of tourists. Another social issue that arises is over
exploitation or child labour: an estimated 13-19 million children below the age of 18 years old,
accounting for 10-15 percent employment, are employed in the tourism industry (UNEP, n.d).
Deprivation of local people’s access to the land may also result from unsustainable tourism, as
seen Boracay Island in the Philippines, in which one quarter of the island has been bought by an
outside corporation, resulting in a crisis in the water supply and limited infrastructural benefit for
local residents (UNEP, n.d).. Finally, culture clashes often result from poor cultural sensitivity in
tourism. Many Muslim countries and Christian communities in Polynesia, the Caribbean and
Mediterranean receive tourists that disregard the strict dress code standard and do not respect the
local tradition and religion which then leads to tension within local community (UNEP, n.d).
Additionally, tourism can also affect a destination’s economy negatively such as causing
price hikes and economic dependencies. A San Francisco State University study shows that as a
consequence of tourism development, price for locals to attain basic services and goods increases
by an average of eight percent (UNEP, 2014). In addition to this, 34% of the workforce in
Jamaica depends directly or indirectly on tourism, a trend also seen in Gambia (30%) and
Maldives (80%) (UNEP, 2014). This can cause a devastating effect on their local economy as it
is vulnerable to shifts in tourism patterns and exacerbates excessive leakages from recipient
economies. In the Caribbean, St. Lucia had a foreign leakage rate of 56% from its gross tourism
receipts, Aruba had 41%, Barbuda 25% and Jamaica 40% (UNEP, 2014). This is why it is
important to work through the triple bottom line approach (environment, socio-cultural and
economic) and ensure tourism is developed sustainably to achieve minimal negative impacts by
the industry.

Sustainable Tourism Development, or STD, is defined as tourism that is developed and
maintained in an area (community, environment) in a manner that remains viable for an
indefinite period and does not degrade or alter the environment (human and physical) in which it
exists to such a degree that prohibits the successful development and well-being of local
destinations or local residents’ activities and processes (Wu, 2009). The purpose of STD is also
to protect the environment, maintain cultural integrity, establish social justice, promote economic
benefits and meet the needs of host populations in terms of improved living standards (Zolfani
and et al, 2015). The closely intertwined relationship between sustainable tourism and host
communities causes UNWTO to state that “Sustainable tourism development requires the
informed participation of all relevant stakeholders and a strong political leadership to ensure
wide participation and consensus building” (Mundt, 2011). Examples of relevant stakeholders
include businesses, residents, government, special interest groups, employees, educational
institutions, visitors and possibly more. These involvement of these stakeholders is necessary to
understand the balance between all of the triple bottom line aspects and discuss trade-offs needed
to utilise tourism as a tool for development (Waligo et al. 2015). By encouraging participatory
decision-making in a democratic process (a bottom-up approach, also known as “decentralisation”
(Appendix 1), decisions or policies formed can benefit all stakeholders, especially the local
community, as much as possible and ensure their tourism sector is developed in a sustainable
manner. Additionally, participatory decision-making often includes an agreement on aspects that
should be prioritised when forming and implementing policies. A destination (comprising of all
its stakeholders) may choose an aspect (i.e. environment, culture, economy) that resonates to
what best fulfills their needs in a sustainable manner (Theerapappisit, 2012). It could be
conservation of environmental or cultural-heritage resources, or promoting economic growth for

the locals. Another important process is to also decide how different course of actions can affect
each stakeholder (Theerapappisit, 2012). By planning from a bottom-up approach, the tourism
industry will be able to identify and offer the best experience to all its stakeholders, tourists and
local residents alike.
Historical Perspective
Historically, the sustainable tourism development paradigm surfaced after multiple
attempts of applying tourism as a tool for development to different development theories. This
application first started after international tourism was seen as a part of mass consumption and
can be categorised into four main paradigms: modernisation (1950s and 1960s), dependency
(1950s and 1960s), economic neo-liberalisation (mid 1970s and 1980s) and
alternative/sustainable development theories (1980s and 1990s).
Modernisation theory was officially epitomized by Walt Rostow in his most influential
work, the 1960 publication entitled Stages of Economic Growth – A Non Communist Manifesto
(Appendix 2). His work views development as a linear path from traditional to modern, which
can only occur if barriers such as tradition, superstition, values and traditional social structure are
changed (Holden, 2005). During this time, tourism was advocated to generate foreign exchange,
increase balance of payment and Gross Domestic Product (GDP), create employment, facilitate
transfer of technology and to promote modern western values of life (Awang et al, 2009).
Dependency theory suggests that developing countries have political, institutional and
economic structures that keep them dependent on developing countries. Historically, the theory
emphasizes how wealthy, powerful core countries such as the United States and European Union

nations actively perpetuate the state of dependency on their peripherals (Latin America, Africa
and Asia) through policies, initiatives and special trade relations rooted from colonialism to
favour the core country’s own progress (Holden, 2005). This is exhibited in tourism through the
flow of mass tourists from core to peripheral countries (thus affecting the demand) and running
of hotels by foreign corporations, which then favours foreign wealth instead of promoting
development of local communities (Awang et al, 2009).
Economic neoliberalism in tourism development rose due to the oil crisis and economic
depression that characterized the mid 1970s-1980s (Awang et al, 2009). In result, this paradigm
emphasizes deregulation, liberalisation, privatisation and a free market-based economy, all of
which were partly inspired by the World Bank and International Monetary Fund through their
Structural Adjustment Lending Program (SALP) which subsequently reduced state influence and
promoted the idea that large capital investment will create a multiplier effect (jobs, sales, extra
income) that then trickles down to all classes of society (Holden, 2005). This capital investment
idea was subsequently backed up by United Nations Development Program (UNDP), the
International Labour Organisations and governments of major industrialised countries, leading to
the formation of World Tourism Organisation (WTO) to promote tourism development and
develop many large-scale tourism infrastructures using state investments with hope that its
economic benefit will accrue to larger benefits (Holden, 2005).
However, by mid 1970s, the effectiveness of these three perspectives were questioned,
having shown low multiplier effect, high levels of economic leakage, and negative social and
cultural impact. In addition to this, these development approaches to tourism perpetuated the
exploitative economic relationships between core and peripheral countries, with tourism being
seen as a new form of ‘neo-colonialism’ and ‘imperialism’ (Appendix 3) (Holden, 2005).

Dependency theorists also draw parallels between past and present by describing how
multinational companies replace the model of colonial government working with local elites
(Holden, 2005). Ultimately, these economic outcomes are generally enjoyed, not by the local
mass, but by foreigners and local elites. Therefore to find a solution to this, the tourism sector
began considering the alternative development paradigm with a focus on sustainable tourism
development (STD) with its triple bottom line and participatory decision-making approach.
Breadths of Impacts to Date
STD receives momentum when studies on various tourism operations have resulted in
large negative impacts on the three aspects: environmental, socio-cultural and economic. An
example of this was well demonstrated through the role of tourism in Thailand. An average golf
course in a tropical country like Thailand needs 1500kg of chemical fertilizers, pesticides and
herbicides per year and uses as much water as 60,000 rural villagers would consume (UNEP,
n.d.). The country suffers from violation of human rights and sexual exploitation from its ‘sex
tourism’ brand: in 2005, there is an estimated of 200,000-300,000 sex workers in Thailand,
which contradicts their original indigenous culture of Buddhism (Nuttavuthisit, 2007). As for
economic leakage, in Thailand, it is estimated that 70% of all money spent by tourists ended up
leaving the country via foreign-owned tour operators, airlines, hotels, imported drinks and food.
(Appendix 4) (UNEP, n.d.). The influx of tourists could also result in an increase in price for
basic goods and services for locals (UNEP, n.d.). These negative impacts of tourism
demonstrates the need for consciousness among consumers, since they exist due to tourist
demand. If consumers understand the impact of their choices, they will demand better and more

sustainable tourism practices that consider environment, socio-cultural and economic benefits for
locals.
This demand for sustainability has started to emerge within the tourism industry and can
be seen through various market analyses. From the perspective of tourists, a 2012 report by the
Travel Foundation and Forum for the Future illustrates consumers’ expectation on travel
companies to build sustainability into their product offering. This is shown through the majority
of tourists, 70% of which believe companies must commit to preserving natural environment,
with 55% advocating for fair working conditions and 75% wanting a more responsible holiday
experience (Responsible Travel, 2015). Additionally, 93% of Conde Nast Traveler readers
surveyed in 2011 responded that travel companies should be responsible for protecting the
environment and 58% responded that their hotel choice is influenced by the support the hotel
gives to the local community (UN, n.d.). This is influential, because in contrast to the normal
consumers, sustainability conscious consumers are also said to travel more frequently, with
nearly 76% taking at least two vacations away from home and 22% taking five to eight in 2010’s
CMIGreen Traveler Study (UN, n.d.). Additionally, awareness for sustainable tourism is also
growing and affecting consumers’ choices. This trend is seen through TripAdvisor’s survey in
2012 that states 71% travelers plan to make more eco-friendly choices in the next 12 months
compared to 65% that did so in the past 12 months (UN, n.d.).
In response to consumers’ demand, many businesses have begun to adopt good
environmental and social practices or adhering to certifications that help make their operations
and supply chains accountable. A survey by TripAdvisor in 2012-2013 showed that majority of
businesses (91%) agree that operating in an eco-friendly manner is important and 77% currently
have practices in place to reduce the impact of their business on the environment (Responsible

Tourism, 2015). Example of such businesses is Hilton Hotels worldwide, in which between 2009
-2014, has reduced energy usage by 13.6%, carbon output by 20.2%, waste output by 26.8% and
water use by 13.1% (Responsible Tourism, 2015). In addition to this, TUI Travel took 3.8
million customers to 1,200 hotels with sustainability certifications in 2013, and has reduced
average per passenger carbon emissions by 9.3% (Responsible Tourism, 2015). Moreover,
implementing sustainable practices can also benefit businesses economically. For example,
Marriott International has developed a ‘green’ hotel prototype pre-certified by US Green
Building Council as part of its LEED Volume Program (Marriott, 2011). This prototype was able
to save Marriott’s hotel owner an average of $100,000 in development costs, six months in
design time and up to 25% in terms of energy and water consumption (Marriott, 2011). All these
examples shows that many businesses are recognising the trend of sustainability and are
currently shaping their business models towards it.
Recognising this shift toward a sustainable tourism paradigm, multilateral organisations
have also begun facilitating sustainability initiatives by compiling best practices carried out in
the past by hotels, tourism operators and destination for the purpose of exemplary application for
others. For example, the Global Sustainable Tourism Council (GSTC) Partnership was initiated
by the Rainforest Alliance in 2008, along with the United Nations Environment Programme
(UNEP), the United Nations Foundation and the United Nations World Tourism Organisation
(UNWTO) (GSTcouncil, n.d.). This partnership’spurpose was to launch the GSTC criteria as a
minimum requirement for destinations, hotels and tour operators who aspire to sustain the
world’s natural and cultural resources while ensuring tourism as a tool to alleviate poverty (UN,
n.d.). The criteria were based on four main pillars: sustainable management, socioeconomic
impacts, cultural impacts, environmental impacts (includes consumption of resource, reducing

pollution and conserving biodiversity and landscape) which each have their own performance
indicators (GSTcouncil, n.d). Apart from this initiative, certifications are also a tool in evaluating
destination and tour operators’ commitment towards sustainability. There are over 250 third-
party certification initiatives all over the world which evaluate operations based on their
commitment to sustainability. Examples include the Blue Flag, Green Globe 21 (GG21),
Respecting Our Culture and Program (ROC) in Australia, Fair Trade in Tourism South Africa
(FTTSA), Heritage Environmental Rating Scheme in South Africa, EcoAward Namibia and
many more (Responsible Tourism, n.d.). These certificates were devised in order to counter the
deceptive practice of “greenwashing”, or making false and exaggerated claims about a product’s
or business’ environmental practices (LePree, 2009).
Anticipated Future Evolution and Impacts
With various changes and events happening around the world, our environmental health,
cultures and economies are becoming intricately linked with each other. People are increasingly
becoming more aware of how their choices can affect their future, and this is also true of the
tourism industry. As 2020 approaches, we are now entering a time in which authenticity – real
experiences rather than fake culture packaged for tourists, are highly sought after (Francis, 2008).
It is possible that with the imposition of emissions trading may increase the price of aviation fuel
and subsequently the cost of flying. Then, with the decrease in low-cost airfare, travelling locally
may become the predominant way to travel. This shift in travelling trends is termed ‘geo-local’
in which holidaymakers travel much closer to home (Francis, 2008). The economic rise of BRIC
(Brazil, Russia, India, China) countries will mean that tourism demand will no longer be
dominated by Westerners and possibly also lead to the rise of domestic guests within a local

tourism destination. These two examples are merely few of many future possibilities of tourism’s
outcomes as it moves along the sustainability paradigm.
Moreover, governance and system will play important roles in implementing
sustainability within the industry. The UNWTO recognises this and has partnered with France,
Korea and Morocco along with UNEP to create a Sustainable Tourism Programme of the Ten-
Year Framework on Sustainable Consumption and Production Patterns (10YFP) at the Rio+20
conference. The objective of this programme is to integrate sustainable consumption and
production (SCP) patterns in tourism-related policies and frameworks, collaborate with
stakeholders to improve tourism sector’s SCP performance, foster application of technical
solutions to prevent and mitigate the negative impacts of tourism and enhance sustainable
tourism investment and financing (Appendix 5) (UNEP), n.d.). The importance of tourism as a
massive force towards sustainability can be seen through a quote from Achim Steiner, the
Executive Director of the UNEP: “(tourism) is one of the ten economic sectors best suited for the
transition to a sustainable and inclusive green economy” (UNWTO, 2014). The implementation
of 10YFP will hopefully garner more evidence on how to carefully facilitate system operations
and policies that emphasise on environment, socio-cultural, economy and participation of local
residents in decision making processes to help decrease the negative impacts of tourism and
preserve our resources for future generation.
Inevitably, there are also various underlying issues that needs to be addressed in
achieving sustainable tourism such as a more efficient horizontal and vertical policy coordination,
better stakeholder engagement and indicators for measuring the impacts of implementations at
destination to gauge its effectiveness. However, the future of sustainable tourism developments
looks more promising than in previous years, since tourists are increasingly becoming more

aware of its importance, businesses are recognising these trends and multilateral organisations
have begun implementing these frameworks. Ultimately, the tourism industry is the business of
selling culture and nature as its main product, therefore it just makes sense that we put effort in
conserving and protecting what we have to sell.

Appendix
Appendix 1: Conceptual Diagram of Policy Approaches
Source:
Theerapappisit, P. (2012). The Bottom-Up Approach of Community-Based Ethnic Tourism: A
Case Study in Chiang Rai. Strategies for Tourism Industry – Micro and Macro
Perspecives. Retrieved on 25th January 2016. Retrieved from
http://cdn.intechopen.com/pdfs-wm/35718.pdf

Appendix 2: Modernization Theory: Walt Rostow’s Stages of Economic Growth
Source:
Rostow, W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge.
Retrieved on 9th February 2016. Retrieved from
http://fcweb.limestone.on.ca/~stridef/World%20Issues/Unit%202%20Lesson%206%20R
ostow.pdf

Appendix 3: History of Tourism Development
Source:
Holden, A. (2005). Tourism Studies and the Social Science. Routledge.

Appendix 4: How leakages can occur
Source:
UNEP. (n.d.) Impacts of Tourism. Retrieved on January 26th. Retrieved from
http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/FactsandFi
guresaboutTourism/ImpactsofTourism/tabid/78774/Default.aspx

Appendix 5: 10YFP Programme on Sustainable Tourism
Source: UNEP. (n.d.). Sustainable Tourism Programme. Retrieved on 11th February 2016.
Retrieved from
http://www.unep.org/10yfp/Programmes/ProgrammeConsultationandCurrentStatus/Sustainableto
urismincludingecotourism/tabid/106269/language/en-US/Default.aspx#.UpMhtmRgalo

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