THR's opinion

Can We Buy Our Way Out of the Carbon Footprint of Tourism?

Tourism, like many other economic activities, has an environmental impact which according to a recent study already accounts for 8% of global greenhouse gas emissions. This substantial figure considers inputs from transport and infrastructure maintenance to food purchases and souvenirs for tourists. Out of that amount, air travel accounts for more than 12% of the pollution generated by the industry.

While responsible tourism that manages such damaging ramifications as carbon output from travel is certainly a 2022 tourism trend the bigger question remains, are we really willing to pay more for greener tourism?

Are we willing to spend more for the planet?

The Covid-19 pandemic changed our perspectives on innumerable aspects of our lives. It caused many of us to reconsider how we interact with the world around us, and how we contribute – both positively and negatively – to the planet.

So far, nearly 60% of the population have said they are willing to pay more to make their trip sustainable. Are we willing to put our money where our mouth is, though?

For example, in a 2020 study concerning greenhouse gas offsetting consumers had the option to pay to partially offset the carbon footprint of their trip. Although many travelers claimed to advocate sustainability in their travel, less than 5% of the nearly 64,000 bookings agreed to pay to compensate for their emissions.

Consumers are willing to take action to curtail climate change but, in this case, customers perceived the compensation price as too high.

Another example is that, on average, more than 30% of the population is willing to pay a 25% premium for more sustainable products. Nevertheless, this willingness is reduced in products such as commercial flights, for which there are few viable alternatives.

Supply-side adaptation

The supply-side tourism sector, in parallel with society, also has ambitions to reduce its carbon footprint through a number of investments.

Many hotel chains, for example, have managed to change their operating models to reduce their plastic consumption by more than 50%. As well, a number have begun to offset their emissions through the purchase of bonds to finance sustainable projects, while others - such as Paradores Nacionales or the Meliá Group in Spain- are now operating a large part of their hotels solely through energy coming from an investment in renewable sources. Some chains, such as the NH Group, have been able to reduce their carbon footprint by nearly 70%.

Businesses traditionally outside of the sector are also engaging with tourism sustainability. In the case of Google, the company has incorporated an option to identify sustainable hotels among its search tools, through which customers can easily filter the establishments that own green certificates.

This trend is not limited to the private sector. The Spanish city of Valencia has become a global model in sustainability by certifying and verifying its tourism carbon footprint. The study has analyzed greenhouse gas emitting sources and the environmental impact they generate. Just in 2019, 1,286 million tons of CO2 were produced, 81% of which corresponded to the transfer of tourists from their residence to Valencia.

Now that Valencia is aware of its footprint, many measures have been put in place - including self-consumption from renewable sources, electric mobility, or the increase of green spaces – to achieve carbon-neutral tourist activity between 2025 and 2030.

In Sum

While sustainable tourism is important to consumers, they are not always willing to pay more for it, though when the opportunity cost of switching to a different product is not too onerous, consumers may be open to considering alternative options.

On the supply side, hotels and other players are also taking seriously their role in the tourism footprint, with many taking a number of investment measures to improve their sustainability.