TravTalk Middle East Online Magazine
Tourism is responsible for around 11 per cent of the world’s greenhouse gas emissions, and it is projected to double by the year 2050, according to the World Travel and Tourism Council (WTTC). Unless measures are taken to limit the emissions, this will aggravate global warming, leading to even more severe and unpredictable weather patterns.
As COP28 commences, the pressing need to tackle global climate and environmental issues is once again at the forefront. The sector is facing mounting pressure from governments and investors to lower emissions and enhance sustainability by implementing stricter emissions regulations, providing green tax incentives, and increasing investments linked to ESG (Environmental, Social, and Governance) standards. Additionally, an expanding number of consumers are expressing a preference for more sustainable travel options. The industry can transition into a more sustainable future and achieve the net-zero 2023 target by following certain practices.
As the global economy progresses, particularly in high-income countries and regions with rapid economic growth, consumers’ demand for travel has grown at a much faster pace than their consumption of other products and services. The desire for unique travel experiences, growing aviation demand, and a desire for lavish amenities in often remote and sensitive areas have turned tourism into a high-carbon consumption category. Despite the efforts to decarbonize tourism operations, the worldwide demand for tourism is surpassing these efforts, leading to an acceleration in global carbon emissions.
Green financing
Tourism can be reimagined and its favourable impact on both people and the planet can be boosted by the Sustainable Development Goals (SDGs) by utilizing sustainable investments. The financial industry can play a pivotal role in supporting the shift toward a sustainable development model that is low-carbon and inclusive, for instance by enabling small and medium-sized enterprises (SMEs) to obtain green finance. According to a PWC analysis, investing in green initiatives within major industries of the GCC could result in a significant impact by 2030. This includes the potential to unlock up to US $2 trillion in cumulative GDP contribution, creating over 1 million job opportunities and fostering foreign direct investment (FDI).
The utilization of green financing opportunities in the UAE’s tourism sector can facilitate the development of resource-efficient tourism infrastructure, such as eco-friendly hotels and natural heritage destinations.
Use of technology
With climate change’s impact becoming more visible, tourism stakeholders such as local authorities, tourism-related businesses, suppliers, and individual travellers must collaborate and reduce the industry’s reliance on fossil fuels. The tourism industry is adopting various technologies to reduce its carbon footprint. The use of solar power, energy-efficient appliances, electric vehicles, and smart building technologies are just a few examples of how the industry is working towards sustainability. These technologies can not only help reduce the industry’s carbon footprint but also lead to significant cost savings for tourism-related businesses. For instance, many hotels and resorts are installing solar panels to generate clean energy, which can help reduce their reliance on fossil fuels. Another technology that is gaining popularity in the tourism industry is electric vehicles (EVs).
Carbon offsetting
Carbon offsetting is an increasingly popular approach for reducing tourism’s carbon footprint. The process involves investing in projects that reduce or remove carbon emissions to compensate for the emissions produced by a business or an individual. By investing in carbon offsetting projects, tourism-related businesses can contribute to the fight against climate change.
