June 14, 2024
Ethical Tourism Market

Ethical Tourism Market is trending by increasing awareness on sustainability and responsible travel

Ethical Tourism Market overview

Ethical tourism or responsible tourism refers to the tourism practiced in a socially and environmentally responsible manner. It involves minimizing negative economic, environmental, and social impacts while generating greater economic benefits for local people and enhancing the well-being of host communities, environments, and future development opportunities. Products and services associated with ethical tourism include community-based tourism, volunteer tourism, sustainable tourism, responsible travel, ecotourism and cultural tourism. Ethical tourism aims to directly benefit—economically and socially—the local communities visited through mutually respectful partnerships and projects that promote intercultural understanding and conservation of local environments and heritage.

The Global Ethical Tourism Market is estimated to be valued at US$ 381.12 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the Ethical Tourism Market Demand are Intrepid Travel, Responsible Tourism India, Responsible travel, Wilderness Safaris, Basecamp Explorer AS, Wild Frontiers Adventures Travel, Beyonder Experiences, Bouteco, Cheeseman’s Ecological Safaris, G Adventures Inc., Gondwana Ecotours, Inkaterra, Intrepid Group Pty Limited, LooLa Adventure Resort, and Natural Habitat Adventures. Growing awareness among global travelers regarding responsible and sustainable travel is driving the demand for ethical tourism. Travelers are now preferring destinations and tourism operators that generate local economic benefits and preserve natural and cultural heritage.

The accelerating growth of the global travel and tourism industry is providing opportunities for ethical or responsible tourism to become mainstream. According to UNWTO, international tourist arrivals are expected to increase by 3-4% annually in the coming years. As people travel more frequently, they are also becoming more socially and environmentally conscious in their travel choices. Many tour operators, hotels and destinations are incorporating ethical practices to attract these socially responsible travelers and gain a competitive edge.

Market key trends

Increasing partnership and collaboration between governments, communities and private sector is a key trend in the ethical tourism market. Public-private partnerships are playing an important role in developing community-based ecotourism projects that provide livelihood opportunities to local people while conserving natural resources and heritage. For example, lodges and camps owned and managed by local communities in Africa working with NGOs and international tour operators. Growing popularity of volunteer and experiential travel is also shaping the market. Travelers want to actively contribute through meaningful activities like teaching, construction work or conservation efforts.

Porter’s Analysis

Threat of new entrants: New players entering the ethical tourism market face high initial costs to establish new tours, destinations and activities. They also have to compete against already established players who have brand recognition and loyalty from customers.

Bargaining power of buyers: Individual consumers have moderate bargaining power as there are many alternatives and options available in the ethical tourism market. However, tour groups and travel agencies have greater purchasing power as they can negotiate on volume and prices.

Bargaining power of suppliers: Tour destinations and local communities that supply experiences have moderate bargaining power depending on the uniqueness of their offerings and location. They can play suppliers off against each other to some extent.

Threat of new substitutes: There is a moderate threat from alternative types of sustainable and responsible tourism. Ethical tourists may substitute to other similar experiential activities if ethical tours do not deliver unique experiences.

Competitive rivalry: The market is highly competitive with many tour operators offering differentiated experiences. Companies focus on high quality and unique tours and activities to gain an edge.

Geographical regions

Europe leads the ethical tourism market in terms of value, accounting for over 30% share. Countries like France, Spain, Italy and UK attract large number of environmentally concerned tourists. North America is another major region driven by increased awareness in the United States and Canada.

Asia Pacific region is witnessing the fastest growth and will expand at a CAGR of over 8% during the forecast period. Countries such as India and China are promoting domestic tourism and ethical travels to rural areas are gaining popularity. Similarly, other emerging regions such as Africa and South America are exploring new opportunities in sustainable tourism.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it