The sustainable tourism market is projected to see substantial growth, increasing from US$3.3 trillion in 2022 to US$11.4 trillion by 2032, with an annual growth rate of 14% from 2023 to 2032. This surge is attributed to increasing consumer demand for eco-friendly and culturally sensitive travel options, according to a report by Allied Market Research.
Coastal tourism accounted for the largest market share in 2022, driven by its appeal for water-related activities and cultural diversity. Island tourism is expected to grow at the fastest pace, with a compound annual growth rate (CAGR) of 14.3%.
Millennials form the largest demographic in this market, seeking meaningful travel experiences that align with environmental and ethical values. Family travel is also significant, offering educational opportunities about conservation and sustainability.
Asia-Pacific led the sustainable tourism sector in 2022, contributing over 40% of global revenue. The region’s rich cultural heritage and UNESCO sites make it a key destination for eco-conscious travellers. Europe also sees steady growth, with destinations like the UK, France, and Italy focusing on cultural preservation and environmental sustainability.
The report highlights a rising demand for eco-friendly accommodations and transportation, such as electric vehicles and renewable energy-powered ships. Certifications like Green Globe and EarthCheck are increasingly adopted by businesses to appeal to environmentally conscious travellers.
Governments worldwide are implementing policies to promote sustainable practices, including carbon taxes and eco-tourism certifications. These measures are reshaping the industry, creating opportunities for travel businesses to align with sustainability trends and meet the preferences of modern travellers.