Sustainable tourism market set to grow by 14% by 2025 | kbnmart

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The sustainable tourism market is expected to witness significant growth, as it is expected to reach US$11.4 trillion at a CAGR of 14% by 2032.

Market Overview

The sustainable tourism market is growing at a significant rate, reaching $3.3 trillion in 2022 and is expected to reach $11.4 trillion by 2032, showing a strong CAGR of 14% from 2023 to 2032, according to Allied Market Research. Market data for 2022 indicates that the group travel segment accounted for more than half of global revenues, with millennials being the dominant age group, driving increased market share and the highest growth rate.

Key sectors and trends

The report highlights various market segments and their contributions:

• Coastal tourism: It dominated the market in 2022 due to its natural beauty and outdoor activities. This segment is expected to maintain its lead during the forecast period.
• Tourism on the island: It is expected to grow at a CAGR of 14.3% from 2023 to 2032, offering unique experiences that combine coastal and mountain tourism.
• Family segment: It captured more than a third of the market revenue in 2022, capitalizing on the educational value of sustainable practices for all age groups.
• Individual tourism: It is expected to grow at a CAGR of 14.8%, driven by travelers looking for authentic cultural interactions.

Regional Insights

• Asia Pacific: The region is expected to lead the market in 2022, accounting for more than two-thirds of the global revenue, and is expected to continue as the fastest growing region due to its rich cultural heritage and diverse tourism attractions.

Driving factors

The rising demand for eco-friendly travel and accommodation destinations is boosting the sustainable tourism market. Travelers are increasingly seeking hotels and resorts with sustainable operations, including energy-saving initiatives, use of renewable energy, waste reduction, recycling, and water conservation. Eco-certified accommodations and responsible tour operators are becoming increasingly popular among tourists.

Strategic developments

Key players in the market, such as Intrepid Group Pty Limited, G Adventures, Spiti Ecosphere, and Basecamp Explorer Group, are adopting different strategies to enhance their market share and profitability. These strategies include:

• Consumer awareness: Increasing awareness about sustainability and environmental protection is driving the demand for eco-friendly tourism options.
• Government initiatives: Policies such as carbon taxes and ecotourism certifications encourage sustainable practices.
• Industrial cooperation: Collaboration between hotels, airlines and tour operators to develop and adhere to sustainable tourism standards.
• Technological innovation: Advances in renewable energy, waste management and environmentally friendly transportation are reducing the environmental impact of tourism.
• Community participation: Emphasizing local community participation in tourism decision-making processes and fair distribution of benefits.

Key benefits for stakeholders

• Quantitative analysis of market segments and trends from 2022 to 2032.
• Insights into the key drivers, barriers and opportunities in the sustainable tourism market.
• Porter’s Five Forces Analysis for Strategic Business Decision Making.
• Detailed segmentation analysis to identify market opportunities.
• Regional revenue contributions and position of players in the market.