From profit to purpose: The rise of eco-tourism

Many eco-friendly hotels prioritise composting, do away with single-use plastics, and find new uses for trash. Photo: Collected

The hospitality industry, long driven by profit-centric motives, is witnessing a profound transformation. A growing demand for eco-friendly and socially conscious travel experiences signals a societal pivot towards environmental responsibility. At this critical juncture of consumer preference and ecological necessity lies eco-tourism—a compelling opportunity for the sector to align its practices with a greater purpose.

Eco-tourism, or sustainable tourism, champions responsible travel that uplifts local communities, preserves cultural heritage and protects the natural environment. 

Sustainable tourism is defined by the United Nations World Tourism Organisation (UNWTO) as an approach to travel that takes into account the social, economic and environmental implications of the industry, the host place, the visitors and the environment, both now and in the future. It safeguards cultural and environmental assets for the sake of future generations while simultaneously providing tourists with genuine experiences.

The global ecotourism market size was valued at $185.87 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.2% from 2022 to 2030. The global eco-tourism market is forecasted to generate $665.2 billion in revenue by 2030. 

This surge reflects a dramatic shift in consumer preferences, as travellers increasingly seek sustainable, authentic and community-driven experiences, indicating the sector's immense potential for growth and impact.

A shift towards ecotourism calls for an overhaul of conventional hospitality to meet environmental objectives. An important strategy is to improve energy efficiency and renewable energy by using renewable energy sources like solar and wind power in conjunction with energy-saving technology like smart thermostats, energy-efficient appliances and light-emitting diode arrays. 

One example of a world-class resort that runs solely on renewable energy is the iconic Maldives eco-tourism site Soneva Fushi. Additionally crucial are water conservation practices that deal with the industry's high water usage by implementing strategies such as low-flow plumbing fixtures, wastewater recycling systems and rainwater collection. 

The Alila Villas Uluwatu in Bali is just one example of a resort that has shown the importance of educating visitors about responsible water usage and integrating water-saving technology. Furthermore, it is crucial to implement waste management and circular economy integration to lessen environmental deterioration. 

Many eco-friendly hotels prioritise composting, do away with single-use plastics and find new uses for trash. For eco-tourism to be a success, it is crucial to encourage community engagement and cultural preservation by teaming up with local farmers, craftsmen and tour guides to provide visitors with genuine experiences that boost local economies and protect cultural heritage. 

For instance, Six Senses resorts in Bangkok give skill-building programmes to local populations and prioritise employment from the area. The hotel sector will take the lead in the worldwide sustainability movement thanks to these initiatives. 

The revolutionary power of ecotourism to revolutionise the hotel sector is illustrated by a number of pioneering cases. The desert getaway known as Feynan Ecolodge in Jordan runs totally independently of the power grid, relying instead on solar energy to generate electricity and on partnerships with nearby Bedouin villages to supply guest services. 

By using this one-of-a-kind method, visitors may experience real cultural immersion while also helping locals make a living. A similar Swiss establishment, the Whitepod Eco-Luxury Hotel, uses low-impact geodesic dome constructions to reduce energy usage; it also provides an unmatched alpine experience and has an emphasis on supporting local economies through employment and food procurement. 

Sustainability is one of AirBnB's key features, as part of the company's Sustainable Hosting Initiatives that promote eco-friendliness among hosts. Airbnb demonstrates its commitment to ethical and sustainable travel by highlighting eco-friendly stays. In addition to providing unforgettable experiences for guests, these examples demonstrate how eco-tourism concepts can strengthen local communities and protect the environment. 

The road to ecotourism isn't paved with roses. Renewable energy systems, waste management technology and eco-certifications can be costly and first discouraging for certain enterprises in the hotel industry. 

Also, you need a readiness to innovate, buy-in from stakeholders and a lot of training to change established operating methods. The investment is well worth it though because of the many advantages of eco-tourism, such as reduced energy costs, increased client loyalty and a distinct competitive advantage. 

Eco-tourism is not only an ethical choice but also a lucrative one, as travellers are increasingly willing to pay a premium for experiences and accommodations that align with their personal values. This demand underscores its potential to financially reward businesses that embrace sustainable practices.

Beyond sustainability, eco-tourism offers the hospitality sector a gateway to regenerative hospitality—a model focused on actively restoring ecosystems and uplifting local communities. Through initiatives like reforestation, marine conservation and biodiversity restoration, the industry can transform into a force for positive environmental change. This proactive approach not only enhances resilience to climate shocks but also sets a benchmark for other sectors to follow.

The transition from profit to purpose through eco-tourism signals a revolutionary shift. By adopting these principles, hospitality businesses can redefine success—not just in terms of revenue but also through their tangible contributions to the planet and its people. This shift is about staying relevant in an evolving market while leading the charge towards a more equitable and sustainable future.

As the tourism industry evolves, the focus is no longer on whether to adopt eco-tourism but on how swiftly and effectively it can be implemented. With demand for sustainable travel on the rise, those who act decisively will secure their place in this new era of purpose-driven hospitality.
 

Abdul Waaje is a Teaching Assistant at Michigan Technological University, Houghton, US. He can be reached at awaaje@mtu.edu. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.