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The role of tourism in sustainable development.

Robert B. Richardson Robert B. Richardson Community Sustainability, Michigan State University
https://doi.org/10.1093/acrefore/9780199389414.013.387
Published online: 25 March 2021

Sustainable development is the foundational principle for enhancing human and economic development while maintaining the functional integrity of ecological and social systems that support regional economies. Tourism has played a critical role in sustainable development in many countries and regions around the world. In developing countries, tourism development has been used as an important strategy for increasing economic growth, alleviating poverty, creating jobs, and improving food security. Many developing countries are in regions that are characterized by high levels of biological diversity, natural resources, and cultural heritage sites that attract international tourists whose local purchases generate income and support employment and economic development. Tourism has been associated with the principles of sustainable development because of its potential to support environmental protection and livelihoods. However, the relationship between tourism and the environment is multifaceted, as some types of tourism have been associated with negative environmental impacts, many of which are borne by host communities.

The concept of sustainable tourism development emerged in contrast to mass tourism, which involves the participation of large numbers of people, often in structured or packaged tours. Mass tourism has been associated with economic leakage and dependence, along with negative environmental and social impacts. Sustainable tourism development has been promoted in various ways as a framing concept in contrast to these economic, environmental, and social impacts. Some literature has acknowledged a vagueness of the concept of sustainable tourism, which has been used to advocate for fundamentally different strategies for tourism development that may exacerbate existing conflicts between conservation and development paradigms. Tourism has played an important role in sustainable development in some countries through the development of alternative tourism models, including ecotourism, community-based tourism, pro-poor tourism, slow tourism, green tourism, and heritage tourism, among others that aim to enhance livelihoods, increase local economic growth, and provide for environmental protection. Although these models have been given significant attention among researchers, the extent of their implementation in tourism planning initiatives has been limited, superficial, or incomplete in many contexts.

The sustainability of tourism as a global system is disputed among scholars. Tourism is dependent on travel, and nearly all forms of transportation require the use of non-renewable resources such as fossil fuels for energy. The burning of fossil fuels for transportation generates emissions of greenhouse gases that contribute to global climate change, which is fundamentally unsustainable. Tourism is also vulnerable to both localized and global shocks. Studies of the vulnerability of tourism to localized shocks include the impacts of natural disasters, disease outbreaks, and civil unrest. Studies of the vulnerability of tourism to global shocks include the impacts of climate change, economic crisis, global public health pandemics, oil price shocks, and acts of terrorism. It is clear that tourism has contributed significantly to economic development globally, but its role in sustainable development is uncertain, debatable, and potentially contradictory.

conservation
economic development
environmental impacts
sustainable development
sustainable tourism
tourism development

Introduction

Sustainable development is the guiding principle for advancing human and economic development while maintaining the integrity of ecosystems and social systems on which the economy depends. It is also the foundation of the leading global framework for international cooperation—the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) (United Nations, 2015 ). The concept of sustainable development is often associated with the publication of Our Common Future (World Commission on Environment and Development [WCED], 1987 , p. 29), which defined it as “paths of human progress that meet the needs and aspirations of the present generation without compromising the ability of future generations to meet their needs.” Concerns about the environmental implications of economic development in lower income countries had been central to debates about development studies since the 1970s (Adams, 2009 ). The principles of sustainable development have come to dominate the development discourse, and the concept has become the primary development paradigm since the 1990s.

Tourism has played an increasingly important role in sustainable development since the 1990s, both globally and in particular countries and regions. For decades, tourism has been promoted as a low-impact, non-extractive option for economic development, particularly for developing countries (Gössling, 2000 ). Many developing countries have managed to increase their participation in the global economy through development of international tourism. Tourism development is increasingly viewed as an important tool in increasing economic growth, alleviating poverty, and improving food security. Tourism enables communities that are poor in material wealth, but rich in history and cultural heritage, to leverage their unique assets for economic development (Honey & Gilpin, 2009 ). More importantly, tourism offers an alternative to large-scale development projects, such as construction of dams, and to extractive industries such as mining and forestry, all of which contribute to emissions of pollutants and threaten biodiversity and the cultural values of Indigenous Peoples.

Environmental quality in destination areas is inextricably linked with tourism, as visiting natural areas and sightseeing are often the primary purpose of many leisure travels. Some forms of tourism, such as ecotourism, can contribute to the conservation of biodiversity and the protection of ecosystem functions in destination areas (Fennell, 2020 ; Gössling, 1999 ). Butler ( 1991 ) suggests that there is a kind of mutual dependence between tourism and the environment that should generate mutual benefits. Many developing countries are in regions that are characterized by high levels of species diversity, natural resources, and protected areas. Such ideas imply that tourism may be well aligned with the tenets of sustainable development.

However, the relationship between tourism and the environment is complex, as some forms of tourism have been associated with negative environmental impacts, including greenhouse gas emissions, freshwater use, land use, and food consumption (Butler, 1991 ; Gössling & Peeters, 2015 ; Hunter & Green, 1995 ; Vitousek et al., 1997 ). Assessments of the sustainability of tourism have highlighted several themes, including (a) parks, biodiversity, and conservation; (b) pollution and climate change; (c) prosperity, economic growth, and poverty alleviation; (d) peace, security, and safety; and (e) population stabilization and reduction (Buckley, 2012 ). From a global perspective, tourism contributes to (a) changes in land cover and land use; (b) energy use, (c) biotic exchange and extinction of wild species; (d) exchange and dispersion of diseases; and (e) changes in the perception and understanding of the environment (Gössling, 2002 ).

Research on tourism and the environment spans a wide range of social and natural science disciplines, and key contributions have been disseminated across many interdisciplinary fields, including biodiversity conservation, climate science, economics, and environmental science, among others (Buckley, 2011 ; Butler, 1991 ; Gössling, 2002 ; Lenzen et al., 2018 ). Given the global significance of the tourism sector and its environmental impacts, the role of tourism in sustainable development is an important topic of research in environmental science generally and in environmental economics and management specifically. Reviews of tourism research have highlighted future research priorities for sustainable development, including the role of tourism in the designation and expansion of protected areas; improvement in environmental accounting techniques that quantify environmental impacts; and the effects of individual perceptions of responsibility in addressing climate change (Buckley, 2012 ).

Tourism is one of the world’s largest industries, and it has linkages with many of the prime sectors of the global economy (Fennell, 2020 ). As a global economic sector, tourism represents one of the largest generators of wealth, and it is an important agent of economic growth and development (Garau-Vadell et al., 2018 ). Tourism is a critical industry in many local and national economies, and it represents a large and growing share of world trade (Hunter, 1995 ). Global tourism has had an average annual increase of 6.6% over the past half century, with international tourist arrivals rising sharply from 25.2 million in 1950 to more than 950 million in 2010 . In 2019 , the number of international tourists reached 1.5 billion, up 4% from 2018 (Fennell, 2020 ; United Nations World Tourism Organization [UNWTO], 2020 ). European countries are host to more than half of international tourists, but since 1990 , growth in international arrivals has risen faster than the global average, in both the Middle East and the Asia and Pacific region (UNWTO, 2020 ).

The growth in global tourism has been accompanied by an expansion of travel markets and a diversification of tourism destinations. In 1950 , the top five travel destinations were all countries in Europe and the Americas, and these destinations held 71% of the global travel market (Fennell, 2020 ). By 2002 , these countries represented only 35%, which underscores the emergence of newly accessible travel destinations in Africa, Asia, the Middle East, and the Pacific Rim, including numerous developing countries. Over the past 70 years, global tourism has grown significantly as an economic sector, and it has contributed to the economic development of dozens of nations.

Given the growth of international tourism and its emergence as one of the world’s largest export sectors, the question of its impact on economic growth for the host countries has been a topic of great interest in the tourism literature. Two hypotheses have emerged regarding the role of tourism in the economic growth process (Apergis & Payne, 2012 ). First, tourism-led growth hypothesis relies on the assumption that tourism is an engine of growth that generates spillovers and positive externalities through economic linkages that will impact the overall economy. Second, the economic-driven tourism growth hypothesis emphasizes policies oriented toward well-defined and enforceable property rights, stable political institutions, and adequate investment in both physical and human capital to facilitate the development of the tourism sector. Studies have concluded with support for both the tourism-led growth hypothesis (e.g., Durbarry, 2004 ; Katircioglu, 2010 ) and the economic-led growth hypothesis (e.g., Katircioglu, 2009 ; Oh, 2005 ), whereas other studies have found support for a bidirectional causality for tourism and economic growth (e.g., Apergis & Payne, 2012 ; Lee & Chang, 2008 ).

The growth of tourism has been marked by an increase in the competition for tourist expenditures, making it difficult for destinations to maintain their share of the international tourism market (Butler, 1991 ). Tourism development is cyclical and subject to short-term cycles and overconsumption of resources. Butler ( 1980 ) developed a tourist-area cycle of evolution that depicts the number of tourists rising sharply over time through periods of exploration, involvement, and development, before eventual consolidation and stagnation. When tourism growth exceeds the carrying capacity of the area, resource degradation can lead to the decline of tourism unless specific steps are taken to promote rejuvenation (Butler, 1980 , 1991 ).

The potential of tourism development as a tool to contribute to environmental conservation, economic growth, and poverty reduction is derived from several unique characteristics of the tourism system (UNWTO, 2002 ). First, tourism represents an opportunity for economic diversification, particularly in marginal areas with few other export options. Tourists are attracted to remote areas with high values of cultural, wildlife, and landscape assets. The cultural and natural heritage of developing countries is frequently based on such assets, and tourism represents an opportunity for income generation through the preservation of heritage values. Tourism is the only export sector where the consumer travels to the exporting country, which provides opportunities for lower-income households to become exporters through the sale of goods and services to foreign tourists. Tourism is also labor intensive; it provides small-scale employment opportunities, which also helps to promote gender equity. Finally, there are numerous indirect benefits of tourism for people living in poverty, including increased market access for remote areas through the development of roads, infrastructure, and communication networks. Nevertheless, travel is highly income elastic and carbon intensive, which has significant implications for the sustainability of the tourism sector (Lenzen et al., 2018 ).

Concerns about environmental issues appeared in tourism research just as global awareness of the environmental impacts of human activities was expanding. The United Nations Conference on the Human Environment was held in Stockholm in 1972 , the same year as the publication of The Limits to Growth (Meadows et al., 1972 ), which highlighted the concerns about the implications of exponential economic and population growth in a world of finite resources. This was the same year that the famous Blue Marble photograph of Earth was taken by the crew of the Apollo 17 spacecraft (Höhler, 2015 , p. 10), and the image captured the planet cloaked in the darkness of space and became a symbol of Earth’s fragility and vulnerability. As noted by Buckley ( 2012 ), tourism researchers turned their attention to social and environmental issues around the same time (Cohen, 1978 ; Farrell & McLellan, 1987 ; Turner & Ash, 1975 ; Young, 1973 ).

The notion of sustainable development is often associated with the publication of Our Common Future , the report of the World Commission on Environment and Development, also known as the Brundtland Commission (WCED, 1987 ). The report characterized sustainable development in terms of meeting “the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987 , p. 43). Four basic principles are fundamental to the concept of sustainability: (a) the idea of holistic planning and strategy making; (b) the importance of preserving essential ecological processes; (c) the need to protect both human heritage and biodiversity; and (d) the need to develop in such a way that productivity can be sustained over the long term for future generations (Bramwell & Lane, 1993 ). In addition to achieving balance between economic growth and the conservation of natural resources, there should be a balance of fairness and opportunity between the nations of the world.

Although the modern concept of sustainable development emerged with the publication of Our Common Future , sustainable development has its roots in ideas about sustainable forest management that were developed in Europe during the 17th and 18th centuries (Blewitt, 2015 ; Grober, 2007 ). Sustainable forest management is concerned with the stewardship and use of forests in a way that maintains their biodiversity, productivity, and regeneration capacity as well as their potential to fulfill society’s demands for forest products and benefits. Building on these ideas, Daly ( 1990 ) offered two operational principles of sustainable development. First, sustainable development implies that harvest rates should be no greater than rates of regeneration; this concept is known as maximum sustainable yield. Second, waste emission rates should not exceed the natural assimilative capacities of the ecosystems into which the wastes are emitted. Regenerative and assimilative capacities are characterized as natural capital, and a failure to maintain these capacities is not sustainable.

Shortly after the emergence of the concept of sustainable development in academic and policy discourse, tourism researchers began referring to the notion of sustainable tourism (May, 1991 ; Nash & Butler, 1990 ), which soon became the dominant paradigm of tourism development. The concept of sustainable tourism, as with the role of tourism in sustainable development, has been interpreted in different ways, and there is a lack of consensus concerning its meaning, objectives, and indicators (Sharpley, 2000 ). Growing interest in the subject inspired the creation of a new academic journal, Journal of Sustainable Tourism , which was launched in 1993 and has become a leading tourism journal. It is described as “an international journal that publishes research on tourism and sustainable development, including economic, social, cultural and political aspects.”

The notion of sustainable tourism development emerged in contrast to mass tourism, which is characterized by the participation of large numbers of people, often provided as structured or packaged tours. Mass tourism has risen sharply in the last half century. International arrivals alone have increased by an average annual rate of more than 25% since 1950 , and many of those trips involved mass tourism activities (Fennell, 2020 ; UNWTO, 2020 ). Some examples of mass tourism include beach resorts, cruise ship tourism, gaming casinos, golf resorts, group tours, ski resorts, theme parks, and wildlife safari tourism, among others. Little data exist regarding the volume of domestic mass tourism, but nevertheless mass tourism activities dominate the global tourism sector. Mass tourism has been shown to generate benefits to host countries, such as income and employment generation, although it has also been associated with economic leakage (where revenue generated by tourism is lost to other countries’ economies) and economic dependency (where developing countries are dependent on wealthier countries for tourists, imports, and foreign investment) (Cater, 1993 ; Conway & Timms, 2010 ; Khan, 1997 ; Peeters, 2012 ). Mass tourism has been associated with numerous negative environmental impacts and social impacts (Cater, 1993 ; Conway & Timms, 2010 ; Fennell, 2020 ; Ghimire, 2013 ; Gursoy et al., 2010 ; Liu, 2003 ; Peeters, 2012 ; Wheeller, 2007 ). Sustainable tourism development has been promoted in various ways as a framing concept in contrast to many of these economic, environmental, and social impacts.

Much of the early research on sustainable tourism focused on defining the concept, which has been the subject of vigorous debate (Bramwell & Lane, 1993 ; Garrod & Fyall, 1998 ; Hunter, 1995 ; Inskeep, 1991 ; Liu, 2003 ; Sharpley, 2000 ). Early definitions of sustainable tourism development seemed to fall in one of two categories (Sharpley, 2000 ). First, the “tourism-centric” paradigm of sustainable tourism development focuses on sustaining tourism as an economic activity (Hunter, 1995 ). Second, alternative paradigms have situated sustainable tourism in the context of wider sustainable development policies (Butler, 1991 ). One of the most comprehensive definitions of sustainable tourism echoes some of the language of the Brundtland Commission’s definition of sustainable development (WCED, 1987 ), emphasizing opportunities for the future while also integrating social and environmental concerns:

Sustainable tourism can be thought of as meeting the needs of present tourists and host regions while protecting and enhancing opportunity for the future. Sustainable tourism development is envisaged as leading to management of all resources in such a way that we can fulfill economic, social and aesthetic needs while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems. (Inskeep, 1991 , p. 461)

Hunter argued that over the short and long terms, sustainable tourism development should

“meet the needs and wants of the local host community in terms of improved living standards and quality of life;

satisfy the demands of tourists and the tourism industry, and continue to attract them in order to meet the first aim; and

safeguard the environmental resource base for tourism, encompassing natural, built and cultural components, in order to achieve both of the preceding aims.” (Hunter, 1995 , p. 156)

Numerous other definitions have been documented, and the term itself has been subject to widespread critique (Buckley, 2012 ; Hunter, 1995 ; Liu, 2003 ). Nevertheless, there have been numerous calls to move beyond debate about a definition and to consider how it may best be implemented in practice (Garrod & Fyall, 1998 ; Liu, 2003 ). Cater ( 1993 ) identified three key criteria for sustainable tourism: (a) meeting the needs of the host population in terms of improved living standards both in the short and long terms; (b) satisfying the demands of a growing number of tourists; and (c) safeguarding the natural environment in order to achieve both of the preceding aims.

Some literature has acknowledged a vagueness of the concept of sustainable tourism, which has been used to advocate for fundamentally different strategies for tourism development that may exacerbate existing conflicts between conservation and development paradigms (Garrod & Fyall, 1998 ; Hunter, 1995 ; Liu, 2003 ; McKercher, 1993b ). Similar criticisms have been leveled at the concept of sustainable development, which has been described as an oxymoron with a wide range of meanings (Adams, 2009 ; Daly, 1990 ) and “defined in such a way as to be either morally repugnant or logically redundant” (Beckerman, 1994 , p. 192). Sharpley ( 2000 ) suggests that in the tourism literature, there has been “a consistent and fundamental failure to build a theoretical link between sustainable tourism and its parental paradigm,” sustainable development (p. 2). Hunter ( 1995 ) suggests that practical measures designed to operationalize sustainable tourism fail to address many of the critical issues that are central to the concept of sustainable development generally and may even actually counteract the fundamental requirements of sustainable development. He suggests that mainstream sustainable tourism development is concerned with protecting the immediate resource base that will sustain tourism development while ignoring concerns for the status of the wider tourism resource base, such as potential problems associated with air pollution, congestion, introduction of invasive species, and declining oil reserves. The dominant paradigm of sustainable tourism development has been described as introverted, tourism-centric, and in competition with other sectors for scarce resources (McKercher, 1993a ). Hunter ( 1995 , p. 156) proposes an alternative, “extraparochial” paradigm where sustainable tourism development is reconceptualized in terms of its contribution to overall sustainable development. Such a paradigm would reconsider the scope, scale, and sectoral context of tourism-related resource utilization issues.

“Sustainability,” “sustainable tourism,” and “sustainable development” are all well-established terms that have often been used loosely and interchangeably in the tourism literature (Liu, 2003 ). Nevertheless, the subject of sustainable tourism has been given considerable attention and has been the focus of numerous academic compilations and textbooks (Coccossis & Nijkamp, 1995 ; Hall & Lew, 1998 ; Stabler, 1997 ; Swarbrooke, 1999 ), and it calls for new approaches to sustainable tourism development (Bramwell & Lane, 1993 ; Garrod & Fyall, 1998 ; Hunter, 1995 ; Sharpley, 2000 ). The notion of sustainable tourism has been reconceptualized in the literature by several authors who provided alternative frameworks for tourism development (Buckley, 2012 ; Gössling, 2002 ; Hunter, 1995 ; Liu, 2003 ; McKercher, 1993b ; Sharpley, 2000 ).

Early research in sustainable tourism focused on the local environmental impacts of tourism, including energy use, water use, food consumption, and change in land use (Buckley, 2012 ; Butler, 1991 ; Gössling, 2002 ; Hunter & Green, 1995 ). Subsequent research has emphasized the global environmental impacts of tourism, such as greenhouse gas emissions and biodiversity losses (Gössling, 2002 ; Gössling & Peeters, 2015 ; Lenzen et al., 2018 ). Additional research has emphasized the impacts of environmental change on tourism itself, including the impacts of climate change on tourist behavior (Gössling et al., 2012 ; Richardson & Loomis, 2004 ; Scott et al., 2012 ; Viner, 2006 ). Countries that are dependent on tourism for economic growth may be particularly vulnerable to the impacts of climate change (Richardson & Witkoswki, 2010 ).

The early focus on environmental issues in sustainable tourism has been broadened to include economic, social, and cultural issues as well as questions of power and equity in society (Bramwell & Lane, 1993 ; Sharpley, 2014 ), and some of these frameworks have integrated notions of social equity, prosperity, and cultural heritage values. Sustainable tourism is dependent on critical long-term considerations of the impacts; notions of equity; an appreciation of the importance of linkages (i.e., economic, social, and environmental); and the facilitation of cooperation and collaboration between different stakeholders (Elliott & Neirotti, 2008 ).

McKercher ( 1993b ) notes that tourism resources are typically part of the public domain or are intrinsically linked to the social fabric of the host community. As a result, many commonplace tourist activities such as sightseeing may be perceived as invasive by members of the host community. Many social impacts of tourism can be linked to the overuse of the resource base, increases in traffic congestion, rising land prices, urban sprawl, and changes in the social structure of host communities. Given the importance of tourist–resident interaction, sustainable tourism development depends in part on the support of the host community (Garau-Vadell et al., 2018 ).

Tourism planning involves the dual objectives of optimizing the well-being of local residents in host communities and minimizing the costs of tourism development (Sharpley, 2014 ). Tourism researchers have paid significant attention to examining the social impacts of tourism in general and to understanding host communities’ perceptions of tourism in particular. Studies of the social impacts of tourism development have examined the perceptions of local residents and the effects of tourism on social cohesion, traditional lifestyles, and the erosion of cultural heritage, particularly among Indigenous Peoples (Butler & Hinch, 2007 ; Deery et al., 2012 ; Mathieson & Wall, 1982 ; Sharpley, 2014 ; Whitford & Ruhanen, 2016 ).

Alternative Tourism and Sustainable Development

A wide body of published research is related to the role of tourism in sustainable development, and much of the literature involves case studies of particular types of tourism. Many such studies contrast types of alternative tourism with those of mass tourism, which has received sustained criticism for decades and is widely considered to be unsustainable (Cater, 1993 ; Conway & Timms, 2010 ; Fennell, 2020 ; Gursoy et al., 2010 ; Liu, 2003 ; Peeters, 2012 ; Zapata et al., 2011 ). Still, some tourism researchers have taken issue with the conclusion that mass tourism is inherently unsustainable (Sharpley, 2000 ; Weaver, 2007 ), and some have argued for developing pathways to “sustainable mass tourism” as “the desired and impending outcome for most destinations” (Weaver, 2012 , p. 1030). In integrating an ethical component to mass tourism development, Weaver ( 2014 , p. 131) suggests that the desirable outcome is “enlightened mass tourism.” Such suggestions have been contested in the literature and criticized for dubious assumptions about emergent norms of sustainability and support for growth, which are widely seen as contradictory (Peeters, 2012 ; Wheeller, 2007 ).

Models of responsible or alternative tourism development include ecotourism, community-based tourism, pro-poor tourism, slow tourism, green tourism, and heritage tourism, among others. Most models of alternative tourism development emphasize themes that aim to counteract the perceived negative impacts of conventional or mass tourism. As such, the objectives of these models of tourism development tend to focus on minimizing environmental impacts, supporting biodiversity conservation, empowering local communities, alleviating poverty, and engendering pleasant relationships between tourists and residents.

Approaches to alternative tourism development tend to overlap with themes of responsible tourism, and the two terms are frequently used interchangeably. Responsible tourism has been characterized in terms of numerous elements, including

ensuring that communities are involved in and benefit from tourism;

respecting local, natural, and cultural environments;

involving the local community in planning and decision-making;

using local resources sustainably;

behaving in ways that are sensitive to the host culture;

maintaining and encouraging natural, economic, and cultural diversity; and

assessing environmental, social, and economic impacts as a prerequisite to tourism development (Spenceley, 2012 ).

Hetzer ( 1965 ) identified four fundamental principles or perquisites for a more responsible form of tourism: (a) minimum environmental impact; (b) minimum impact on and maximum respect for host cultures; (c) maximum economic benefits to the host country; and (d) maximum leisure satisfaction to participating tourists.

The history of ecotourism is closely connected with the emergence of sustainable development, as it was born out of a concern for the conservation of biodiversity. Ecotourism is a form of tourism that aims to minimize local environmental impacts while bringing benefits to protected areas and the people living around those lands (Honey, 2008 ). Ecotourism represents a small segment of nature-based tourism, which is understood as tourism based on the natural attractions of an area, such as scenic areas and wildlife (Gössling, 1999 ). The ecotourism movement gained momentum in the 1990s, primarily in developing countries in Latin America and sub-Saharan Africa, and nearly all countries are now engaged in some form of ecotourism. In some communities, ecotourism is the primary economic activity and source of income and economic development.

The term “ecotourism” was coined by Hector Ceballos-Lascuráin and defined by him as “tourism that consists in travelling to relatively undisturbed or uncontaminated natural areas with the specific object of studying, admiring, and enjoying the scenery and its wild plants and animals” (Ceballos-Lascuráin, 1987 , p. 13). In discussing ecotourism resources, he also made reference to “any existing cultural manifestations (both past and present) found in these areas” (Ceballos-Lascuráin, 1987 , p. 14). The basic precepts of ecotourism had been discussed long before the actual use of the term. Twenty years earlier, Hetzer ( 1965 ) referred to a form of tourism “based principally upon natural and archaeological resources such as caves, fossil sites (and) archaeological sites.” Thus, both natural resources and cultural resources were integrated into ecotourism frameworks from the earliest manifestations.

Costa Rica is well known for having successfully integrated ecotourism in its overall strategy for sustainable development, and numerous case studies of ecotourism in Costa Rica appear in the literature (Chase et al., 1998 ; Fennell & Eagles, 1990 ; Gray & Campbell, 2007 ; Hearne & Salinas, 2002 ). Ecotourism in Costa Rica has been seen as having supported the economic development of the country while promoting biodiversity conservation in its extensive network of protected areas. Chase et al. ( 1998 ) estimated the demand for ecotourism in a study of differential pricing of entrance fees at national parks in Costa Rica. The authors estimated elasticities associated with the own-price, cross-price, and income variables and found that the elasticities of demand were significantly different between three different national park sites. The results reveal the heterogeneity characterizing tourist behavior and park attractions and amenities. Hearne and Salinas ( 2002 ) used choice experiments to examine the preferences of domestic and foreign tourists in Costa Rica in an ecotourism site. Both sets of tourists demonstrated a preference for improved infrastructure, more information, and lower entrance fees. Foreign tourists demonstrated relatively stronger preferences for the inclusion of restrictions in the access to some trails.

Ecotourism has also been studied extensively in Kenya (Southgate, 2006 ), Malaysia (Lian Chan & Baum, 2007 ), Nepal (Baral et al., 2008 ), Peru (Stronza, 2007 ), and Taiwan (Lai & Nepal, 2006 ), among many other countries. Numerous case studies have demonstrated the potential for ecotourism to contribute to sustainable development by providing support for biodiversity conservation, local livelihoods, and regional development.

Community-Based Tourism

Community-based tourism (CBT) is a model of tourism development that emphasizes the development of local communities and allows for local residents to have substantial control over its development and management, and a major proportion of the benefits remain within the community. CBT emerged during the 1970s as a response to the negative impacts of the international mass tourism development model (Cater, 1993 ; Hall & Lew, 2009 ; Turner & Ash, 1975 ; Zapata et al., 2011 ).

Community-based tourism has been examined for its potential to contribute to poverty reduction. In a study of the viability of the CBT model to support socioeconomic development and poverty alleviation in Nicaragua, tourism was perceived by participants in the study to have an impact on employment creation in their communities (Zapata et al., 2011 ). Tourism was seen to have had positive impacts on strengthening local knowledge and skills, particularly on the integration of women to new roles in the labor market. One of the main perceived gains regarding the environment was the process of raising awareness regarding the conservation of natural resources. The small scale of CBT operations and low capacity to accommodate visitors was seen as a limitation of the model.

Spenceley ( 2012 ) compiled case studies of community-based tourism in countries in southern Africa, including Botswana, Madagascar, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe. In this volume, authors characterize community-based and nature-based tourism development projects in the region and demonstrate how community participation in planning and decision-making has generated benefits for local residents and supported conservation initiatives. They contend that responsible tourism practices are of particular importance in the region because of the rich biological diversity, abundant charismatic wildlife, and the critical need for local economic development and livelihood strategies.

In Kenya, CBT enterprises were not perceived to have made a significant impact on poverty reduction at an individual household level, in part because the model relied heavily on donor funding, reinforcing dependency and poverty (Manyara & Jones, 2007 ). The study identified several critical success factors for CBT enterprises, namely, awareness and sensitization, community empowerment, effective leadership, and community capacity building, which can inform appropriate tourism policy formulation in Kenya. The impacts of CBT on economic development and poverty reduction would be greatly enhanced if tourism initiatives were able to emphasize independence, address local community priorities, enhance community empowerment and transparency, discourage elitism, promote effective community leadership, and develop community capacity to operate their own enterprises more efficiently.

Pro-Poor Tourism

Pro-poor tourism is a model of tourism development that brings net benefits to people living in poverty (Ashley et al., 2001 ; Harrison, 2008 ). Although its theoretical foundations and development objectives overlap to some degree with those of community-based tourism and other models of AT, the key distinctive feature of pro-poor tourism is that it places poor people and poverty at the top of the agenda. By focusing on a very simple and incontrovertibly moral idea, namely, the net benefits of tourism to impoverished people, the concept has broad appeal to donors and international aid agencies. Harnessing the economic benefits of tourism for pro-poor growth means capitalizing on the advantages while reducing negative impacts to people living in poverty (Ashley et al., 2001 ). Pro-poor approaches to tourism development include increasing access of impoverished people to economic benefits; addressing negative social and environmental impacts associated with tourism; and focusing on policies, processes, and partnerships that seek to remove barriers to participation by people living in poverty. At the local level, pro-poor tourism can play a very significant role in livelihood security and poverty reduction (Ashley & Roe, 2002 ).

Rogerson ( 2011 ) argues that the growth of pro-poor tourism initiatives in South Africa suggests that the country has become a laboratory for the testing and evolution of new approaches toward sustainable development planning that potentially will have relevance for other countries in the developing world. A study of pro-poor tourism development initiatives in Laos identified a number of favorable conditions for pro-poor tourism development, including the fact that local people are open to tourism and motivated to participate (Suntikul et al., 2009 ). The authors also noted a lack of development in the linkages that could optimize the fulfilment of the pro-poor agenda, such as training or facilitation of local people’s participation in pro-poor tourism development at the grassroots level.

Critics of the model have argued that pro-poor tourism is based on an acceptance of the status quo of existing capitalism, that it is morally indiscriminate and theoretically imprecise, and that its practitioners are academically and commercially marginal (Harrison, 2008 ). As Chok et al. ( 2007 ) indicate, the focus “on poor people in the South reflects a strong anthropocentric view . . . and . . . environmental benefits are secondary to poor peoples’” benefits (p. 153).

Harrison ( 2008 ) argues that pro-poor tourism is not a distinctive approach to tourism as a development tool and that it may be easier to discuss what pro-poor tourism is not than what it is. He concludes that it is neither anticapitalist nor inconsistent with mainstream tourism on which it relies; it is neither a theory nor a model and is not a niche form of tourism. Further, he argues that it has no distinctive method and is not only about people living in poverty.

Slow Tourism

The concept of slow tourism has emerged as a model of sustainable tourism development, and as such, it lacks an exact definition. The concept of slow tourism traces its origin back to some institutionalized social movements such as “slow food” and “slow cities” that began in Italy in the 1990s and spread rapidly around the world (Fullagar et al., 2012 ; Oh et al., 2016 , p. 205). Advocates of slow tourism tend to emphasize slowness in terms of speed, mobility, and modes of transportation that generate less environmental pollution. They propose niche marketing for alternative forms of tourism that focus on quality upgrading rather than merely increasing the quantity of visitors via the established mass-tourism infrastructure (Conway & Timms, 2010 ).

In the context of the Caribbean region, slow tourism has been promoted as more culturally sensitive and authentic, as compared to the dominant mass tourism development model that is based on all-inclusive beach resorts dependent on foreign investment (Conway & Timms, 2010 ). Recognizing its value as an alternative marketing strategy, Conway and Timms ( 2010 ) make the case for rebranding alternative tourism in the Caribbean as a means of revitalizing the sector for the changing demands of tourists in the 21st century . They suggest that slow tourism is the antithesis of mass tourism, which “relies on increasing the quantity of tourists who move through the system with little regard to either the quality of the tourists’ experience or the benefits that accrue to the localities the tourist visits” (Conway & Timms, 2010 , p. 332). The authors draw on cases from Barbados, the Grenadines, Jamaica, and Trinidad and Tobago to characterize models of slow tourism development in remote fishing villages and communities near nature preserves and sea turtle nesting sites.

Although there is a growing interest in the concept of slow tourism in the literature, there seems to be little agreement about the exact nature of slow tourism and whether it is a niche form of special interest tourism or whether it represents a more fundamental potential shift across the industry. Conway and Timms ( 2010 ) focus on the destination, advocating for slow tourism in terms of a promotional identity for an industry in need of rebranding. Caffyn ( 2012 , p. 77) discusses the implementation of slow tourism in terms of “encouraging visitors to make slower choices when planning and enjoying their holidays.” It is not clear whether slow tourism is a marketing strategy, a mindset, or a social movement, but the literature on slow tourism nearly always equates the term with sustainable tourism (Caffyn, 2012 ; Conway & Timms, 2010 ; Oh et al., 2016 ). Caffyn ( 2012 , p. 80) suggests that slow tourism could offer a “win–win,” which she describes as “a more sustainable form of tourism; keeping more of the economic benefits within the local community and destination; and delivering a more meaningful and satisfying experience.” Research on slow tourism is nascent, and thus the contribution of slow tourism to sustainable development is not well understood.

Impacts of Tourism Development

The role of tourism in sustainable development can be examined through an understanding of the economic, environmental, and social impacts of tourism. Tourism is a global phenomenon that involves travel, recreation, the consumption of food, overnight accommodations, entertainment, sightseeing, and other activities that simultaneously intersect the lives of local residents, businesses, and communities. The impacts of tourism involve benefits and costs to all groups, and some of these impacts cannot easily be measured. Nevertheless, they have been studied extensively in the literature, which provides some context for how these benefits and costs are distributed.

Economic Impacts of Tourism

The travel and tourism sector is one of the largest components of the global economy, and global tourism has increased exponentially since the end of the Second World War (UNWTO, 2020 ). The direct, indirect, and induced economic impact of global travel accounted for 8.9 trillion U.S. dollars in contribution to the global gross domestic product (GDP), or 10.3% of global GDP. The global travel and tourism sector supports approximately 330 million jobs, or 1 in 10 jobs around the world. From an economic perspective, tourism plays a significant role in sustainable development. In many developing countries, tourism has the potential to play a unique role in income generation and distribution relative to many other industries, in part because of its high multiplier effect and consumption of local goods and services. However, research on the economic impacts of tourism has shown that this potential has rarely been fully realized (Liu, 2003 ).

Numerous studies have examined the impact of tourism expenditure on GDP, income, employment, and public sector revenue. Narayan ( 2004 ) used a computable general equilibrium model to estimate the economic impact of tourism growth on the economy of Fiji. Tourism is Fiji’s largest industry, with average annual growth of 10–12%; and as a middle-income country, tourism is critical to Fiji’s economic development. The findings indicate that an increase in tourism expenditures was associated with an increase in GDP, an improvement in the country’s balance of payments, and an increase in real consumption and national welfare. Evidence suggests that the benefits of tourism expansion outweigh any export effects caused by an appreciation of the exchange rate and an increase in domestic prices and wages.

Seetanah ( 2011 ) examined the potential contribution of tourism to economic growth and development using panel data of 19 island economies around the world from 1990 to 2007 and revealed that tourism development is an important factor in explaining economic performance in the selected island economies. The results have policy implications for improving economic growth by harnessing the contribution of the tourism sector. Pratt ( 2015 ) modeled the economic impact of tourism for seven small island developing states in the Pacific, the Caribbean, and the Indian Ocean. In most states, the transportation sector was found to have above-average linkages to other sectors of the economy. The results revealed some advantages of economies of scale for maximizing the economic contribution of tourism.

Apergis and Payne ( 2012 ) examined the causal relationship between tourism and economic growth for a panel of nine Caribbean countries. The panel of Caribbean countries includes Antigua and Barbuda, Bahamas, Dominica, Dominican Republic, Grenada, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago. The authors use a panel error correction model to reveal bidirectional causality between tourism and economic growth in both the short run and the long run. The presence of bidirectional causality reiterates the importance of the tourism sector in the generation of foreign exchange income and in financing the production of goods and services within these countries. Likewise, stable political institutions and adequate government policies to ensure the appropriate investment in physical and human capital will enhance economic growth. In turn, stable economic growth will provide the resources needed to develop the tourism infrastructure for the success of the countries’ tourism sector. Thus, policy makers should be cognizant of the interdependent relationship between tourism and economic growth in the design and implementation of economic policy. The mixed nature of these results suggest that the relationship between tourism and economic growth depends largely on the social and economic context as well as the role of tourism in the economy.

The economic benefits and costs of tourism are frequently distributed unevenly. An analysis of the impact of wildlife conservation policies in Zambia on household welfare found that households located near national parks earn higher levels of income from wage employment and self-employment than other rural households in the country, but they were also more likely to suffer crop losses related to wildlife conflicts (Richardson et al., 2012 ). The findings suggest that tourism development and wildlife conservation can contribute to pro-poor development, but they may be sustainable only if human–wildlife conflicts are minimized or compensated.

Environmental Impacts of Tourism

The environmental impacts of tourism are significant, ranging from local effects to contributions to global environmental change (Gössling & Peeters, 2015 ). Tourism is both dependent on water resources and a factor in global and local freshwater use. Tourists consume water for drinking, when showering and using the toilet, when participating in activities such as winter ski tourism (i.e., snowmaking), and when using swimming pools and spas. Fresh water is also needed to maintain hotel gardens and golf courses, and water use is embedded in tourism infrastructure development (e.g., accommodations, laundry, dining) and in food and fuel production. Direct water consumption in tourism is estimated to be approximately 350 liters (L) per guest night for accommodation; when indirect water use from food, energy, and transport are considered, total water use in tourism is estimated to be approximately 6,575 L per guest night, or 27,800 L per person per trip (Gössling & Peeters, 2015 ). In addition, tourism contributes to the pollution of oceans as well as lakes, rivers, and other freshwater systems (Gössling, 2002 ; Gössling et al., 2011 ).

The clearing and conversion of land is central for tourism development, and in many cases, the land used for tourism includes roads, airports, railways, accommodations, trails, pedestrian walks, shopping areas, parking areas, campgrounds, vacation homes, golf courses, marinas, ski resorts, and indirect land use for food production, disposal of solid wastes, and the treatment of wastewater (Gössling & Peeters, 2015 ). Global land use for accommodation is estimated to be approximately 42 m 2 per bed. Total global land use for tourism is estimated to be nearly 62,000 km 2 , or 11.7 m 2 per tourist; more than half of this estimate is represented by land use for traffic infrastructure.

Tourism and hospitality have direct and indirect links to nearly all aspects of food production, preparation, and consumption because of the quantities of food consumed in tourism contexts (Gössling et al., 2011 ). Food production has significant implications for sustainable development, given the growing global demand for food. The implications include land conversion, losses to biodiversity, changes in nutrient cycling, and contributions to greenhouse emissions that are associated with global climate change (Vitousek et al., 1997 ). Global food use for tourism is estimated to be approximately 39.4 megatons 1 (Mt), about 38% than the amount of food consumed at home. This equates to approximately 1,800 grams (g) of food consumed per tourist per day.

Although tourism has been promoted as a low-impact, nonextractive option for economic development, (Gössling, 2000 ), assessments reveal that such pursuits have a significant carbon footprint, as tourism is significantly more carbon intensive than other potential areas of economic development (Lenzen et al., 2018 ). Tourism is dependent on energy, and virtually all energy use in the tourism sector is derived from fossil fuels, which contribute to global greenhouse emissions that are associated with global climate change. Energy use for tourism has been estimated to be approximately 3,575 megajoules 2 (MJ) per trip, including energy for travel and accommodations (Gössling & Peeters, 2015 ). A previous estimate of global carbon dioxide (CO 2 ) emissions from tourism provided values of 1.12 gigatons 3 (Gt) of CO 2 , amounting to about 3% of global CO 2 -equivalent (CO 2 e) emissions (Gössling & Peeters, 2015 ). However, these analyses do not cover the supply chains underpinning tourism and do not therefore represent true carbon footprints. A more complete analysis of the emissions from energy consumption necessary to sustain the tourism sector would include food and beverages, infrastructure construction and maintenance, retail, and financial services. Between 2009 and 2013 , tourism’s global carbon footprint is estimated to have increased from 3.9 to 4.5 GtCO 2 e, four times more than previously estimated, accounting for about 8% of global greenhouse gas emissions (Lenzen et al., 2018 ). The majority of this footprint is exerted by and within high-income countries. The rising global demand for tourism is outstripping efforts at decarbonization of tourism operations and as a result is accelerating global carbon emissions.

Social Impacts of Tourism

The social impacts of tourism have been widely studied, with an emphasis on residents’ perceptions in the host community (Sharpley, 2014 ). Case studies include research conducted in Australia (Faulkner & Tideswell, 1997 ; Gursoy et al., 2010 ; Tovar & Lockwood, 2008 ), Belize (Diedrich & Garcia-Buades, 2008 ), China (Gu & Ryan, 2008 ), Fiji (King et al., 1993 ), Greece (Haralambopoulos & Pizam, 1996 ; Tsartas, 1992 ), Hungary (Rátz, 2000 ), Thailand (Huttasin, 2008 ), Turkey (Kuvan & Akan, 2005 ), the United Kingdom (Brunt & Courtney, 1999 ; Haley et al., 2005 ), and the United States (Andereck et al., 2005 ; Milman & Pizam, 1988 ), among others. The social impacts of tourism are difficult to measure, and most published studies are mainly concerned with the social impacts on the host communities rather than the impacts on the tourists themselves.

Studies of residents’ perceptions of tourism are typically conducted using household surveys. In most cases, residents recognize the economic dependence on tourism for income, and there is substantial evidence to suggest that working in or owning a business in tourism or a related industry is associated with more positive perceptions of tourism (Andereck et al., 2007 ). The perceived nature of negative effects is complex and often conveys a dislike of crowding, traffic congestion, and higher prices for basic needs (Deery et al., 2012 ). When the number of tourists far exceeds that of the resident population, negative attitudes toward tourism may manifest (Diedrich & Garcia-Buades, 2008 ). However, residents who recognize negative impacts may not necessarily oppose tourism development (King et al., 1993 ).

In some regions, little is known about the social and cultural impacts of tourism despite its dominance as an economic sector. Tourism is a rapidly growing sector in Cuba, and it is projected to grow at rates that exceed the average projected growth rates for the Caribbean and the world overall (Salinas et al., 2018 ). Still, even though there has been rapid tourism development in Cuba, there has been little research related to the environmental and sociocultural impacts of this tourism growth (Rutty & Richardson, 2019 ).

In some international tourism contexts, studies have found that residents are generally resentful toward tourism because it fuels inequality and exacerbates racist attitudes and discrimination (Cabezas, 2004 ; Jamal & Camargo, 2014 ; Mbaiwa, 2005 ). Other studies revealed similar narratives and recorded statements of exclusion and socioeconomic stratification (Sanchez & Adams, 2008 ). Local residents often must navigate the gaps in the racialized, gendered, and sexualized structures imposed by the global tourism industry and host-country governments (Cabezas, 2004 ).

However, during times of economic crisis, residents may develop a more permissive view as their perceptions of the costs of tourism development decrease (Garau-Vadell et al., 2018 ). This increased positive attitude is not based on an increase in the perception of positive impacts of tourism, but rather on a decrease in the perception of the negative impacts.

There is a growing body of research on Indigenous and Aboriginal tourism that emphasizes justice issues such as human rights and self-empowerment, control, and participation of traditional owners in comanagement of destinations (Jamal & Camargo, 2014 ; Ryan & Huyton, 2000 ; Whyte, 2010 ).

Sustainability of Tourism

A process or system is said to be sustainable to the extent that it is robust, resilient, and adaptive (Anderies et al., 2013 ). By most measures, the global tourism system does not meet these criteria for sustainability. Tourism is not robust in that it cannot resist threats and perturbations, such as economic shocks, public health pandemics, war, and other disruptions. Tourism is not resilient in that it does not easily recover from failures, such as natural disasters or civil unrest. Furthermore, tourism is not adaptive in that it is often unable to change in response to external conditions. One example that underscores the failure to meet all three criteria is the dependence of tourism on fossil fuels for transportation and energy, which are key inputs for tourism development. This dependence itself is not sustainable (Wheeller, 2007 ), and thus the sustainability of tourism is questionable.

Liu ( 2003 ) notes that research related to the role of tourism in sustainable development has emphasized supply-side concepts such as sustaining tourism resources and ignored the demand side, which is particularly vulnerable to social and economic shocks. Tourism is vulnerable to both localized and global shocks. Studies of the vulnerability of tourism to localized shocks include disaster vulnerability in coastal Thailand (Calgaro & Lloyd, 2008 ), bushfires in northeast Victoria in Australia (Cioccio & Michael, 2007 ), forest fires in British Columbia, Canada (Hystad & Keller, 2008 ); and outbreak of foot and mouth disease in the United Kingdom (Miller & Ritchie, 2003 ).

Like most other economic sectors, tourism is vulnerable to the impacts of earthquakes, particularly in areas where tourism infrastructure may not be resilient to such shocks. Numerous studies have examined the impacts of earthquake events on tourism, including studies of the aftermath of the 1997 earthquake in central Italy (Mazzocchi & Montini, 2001 ), the 1999 earthquake in Taiwan (Huan et al., 2004 ; Huang & Min, 2002 ), and the 2008 Wenchuan earthquake in western Sichuan, China (Yang et al., 2011 ), among others.

Tourism is vulnerable to extreme weather events. Regional economic strength has been found to be associated with lower vulnerability to natural disasters. Kim and Marcoullier ( 2015 ) examined the vulnerability and resilience of 10 tourism-based regional economies that included U.S. national parks or protected seashores situated on the Gulf of Mexico or Atlantic Ocean coastline that were affected by several hurricanes over a 26-year period. Regions with stronger economic characteristics prior to natural disasters were found to have lower disaster losses than regions with weaker economies.

Tourism is extremely sensitive to oil spills, whatever their origin, and the volume of oil released need not be large to generate significant economic losses (Cirer-Costa, 2015 ). Studies of the vulnerability of tourism to the localized shock of an oil spill include research on the impacts of oil spills in Alaska (Coddington, 2015 ), Brazil (Ribeiro et al., 2020 ), Spain (Castanedo et al., 2009 ), affected regions in the United States along the Gulf of Mexico (Pennington-Gray et al., 2011 ; Ritchie et al., 2013 ), and the Republic of Korea (Cheong, 2012 ), among others. Future research on the vulnerability of tourist destinations to oil spills should also incorporate freshwater environments, such as lakes, rivers, and streams, where the rupture of oil pipelines is more frequent.

Significant attention has been paid to assessing the vulnerability of tourist destinations to acts of terrorism and the impacts of terrorist attacks on regional tourist economies (Liu & Pratt, 2017 ). Such studies include analyses of the impacts of terrorist attacks on three European countries, Greece, Italy, and Austria (Enders et al., 1992 ); the impact of the 2001 terrorist attacks on the United States (Goodrich, 2002 ); terrorism and tourism in Nepal (Bhattarai et al., 2005 ); vulnerability of tourism livelihoods in Bali (Baker & Coulter, 2007 ); the impact of terrorism on tourist preferences for destinations in the Mediterranean and the Canary Islands (Arana & León, 2008 ); the 2011 massacres in Olso and Utøya, Norway (Wolff & Larsen, 2014 ); terrorism and political violence in Tunisia (Lanouar & Goaied, 2019 ); and the impact of terrorism on European tourism (Corbet et al., 2019 ), among others. Pizam and Fleischer ( 2002 ) studied the impact of acts of terrorism on tourism demand in Israel between May 1991 and May 2001 , and they confirmed that the frequency of acts of terrorism had caused a larger decline in international tourist arrivals than the severity of these acts. Most of these are ex post studies, and future assessments of the underlying conditions of destinations could reveal a deeper understanding of the vulnerability of tourism to terrorism.

Tourism is vulnerable to economic crisis, both local economic shocks (Okumus & Karamustafa, 2005 ; Stylidis & Terzidou, 2014 ) and global economic crisis (Papatheodorou et al., 2010 ; Smeral, 2010 ). Okumus and Karamustafa ( 2005 ) evaluated the impact of the February 2001 economic crisis in Turkey on tourism, and they found that the tourism industry was poorly prepared for the economic crisis despite having suffered previous impacts related to the Gulf War in the early 1990s, terrorism in Turkey in the 1990s, the civil war in former Yugoslavia in the early 1990s, an internal economic crisis in 1994 , and two earthquakes in the northwest region of Turkey in 1999 . In a study of the attitudes and perceptions of citizens of Greece, Stylidis and Terzidou ( 2014 ) found that economic crisis is associated with increased support for tourism development, particularly out of self-interest. Economic crisis diminishes residents’ concern for environmental issues. In a study of the behavior of European tourists amid an economic crisis, Eugenio-Martin and Campos-Soria ( 2014 ) found that the probability of households cutting back on travel expenditures depends largely on the climate and economic conditions of tourists’ home countries, and households that do reduce travel spending engage in tourism closer to home.

Becken and Lennox ( 2012 ) studied the implications of a long-term increase in oil prices for tourism in New Zealand, and they estimate that a doubling of oil prices is associated with a 1.7% decrease in real gross national disposable income and a 9% reduction in the real value of tourism exports. Chatziantoniou et al. ( 2013 ) investigated the relationship among oil price shocks, tourism variables, and economic indicators in four European Mediterranean countries and found that aggregate demand oil price shocks generated a lagged effect on tourism-generated income and economic growth. Kisswani et al. ( 2020 ) examined the asymmetric effect of oil prices on tourism receipts and the sensitive susceptibility of tourism to oil price changes using nonlinear analysis. The findings document a long-run asymmetrical effect for most countries, after incorporating the structural breaks, suggesting that governments and tourism businesses and organizations should interpret oil price fluctuations cautiously.

Finally, the sustainability of tourism has been shown to be vulnerable to the outbreak of infectious diseases, including the impact of the Ebola virus on tourism in sub-Saharan Africa (Maphanga & Henama, 2019 ; Novelli et al., 2018 ) and in the United States (Cahyanto et al., 2016 ). The literature also includes studies of the impact of swine flu on tourism demand in Brunei (Haque & Haque, 2018 ), Mexico (Monterrubio, 2010 ), and the United Kingdom (Page et al., 2012 ), among others. In addition, rapid assessments of the impacts of the novel coronavirus SARS-CoV-2 have documented severe disruptions and cessations of tourism because of unprecedented global travel restrictions and widespread restrictions on public gatherings (Gössling et al., 2020 ; Qiu et al., 2020 ; Sharma & Nicolau, 2020 ). Hotels, airlines, cruise lines, and car rentals have all experienced a significant decrease globally because of the COVID-19 pandemic, and the shock to the industry is significant enough to warrant concerns about the long-term outlook (Sharma & Nicolau, 2020 ). Qiu et al. ( 2020 ) estimated the social costs of the pandemic to tourism in three cities in China (Hong Kong, Guangzhou, and Wuhan), and they found that most respondents were willing to pay for risk reduction and action in responding to the pandemic crisis; there was no significant difference between residents’ willingness to pay in the three cities. Some research has emphasized how lessons from the COVID-19 pandemic can prepare global tourism for an economic transformation that is needed to mitigate the impacts of climate change (Brouder, 2020 ; Prideaux et al., 2020 ).

It is clear that tourism has contributed significantly to economic development globally, but its role in sustainable development is uncertain, contested, and potentially paradoxical. This is due, in part, to the contested nature of sustainable development itself. Tourism has been promoted as a low-impact, nonextractive option for economic development, particularly for developing countries (Gössling, 2000 ), and many countries have managed to increase their participation in the global economy through development of international tourism. Tourism development has been viewed as an important sector for investment to enhance economic growth, poverty alleviation, and food security, and the sector provides an alternative opportunity to large-scale development projects and extractive industries that contribute to emissions of pollutants and threaten biodiversity and cultural values. However, global evidence from research on the economic impacts of tourism has shown that this potential has rarely been realized (Liu, 2003 ).

The role of tourism in sustainable development has been studied extensively and with a variety of perspectives, including the conceptualization of alternative or responsible forms of tourism and the examination of economic, environmental, and social impacts of tourism development. The research has generally concluded that tourism development has contributed to sustainable development in some cases where it is demonstrated to have provided support for biodiversity conservation initiatives and livelihood development strategies. As an economic sector, tourism is considered to be labor intensive, providing opportunities for poor households to enhance their livelihood through the sale of goods and services to foreign tourists.

Nature-based tourism approaches such as ecotourism and community-based tourism have been successful at attracting tourists to parks and protected areas, and their spending provides financial support for biodiversity conservation, livelihoods, and economic growth in developing countries. Nevertheless, studies of the impacts of tourism development have documented negative environmental impacts locally in terms of land use, food and water consumption, and congestion, and globally in terms of the contribution of tourism to climate change through the emission of greenhouse gases related to transportation and other tourist activities. Studies of the social impacts of tourism have documented experiences of discrimination based on ethnicity, gender, race, sex, and national identity.

The sustainability of tourism as an economic sector has been examined in terms of its vulnerability to civil conflict, economic shocks, natural disasters, and public health pandemics. Most studies conclude that tourism may have positive impacts for regional development and environmental conservation, but there is evidence that tourism inherently generates negative environmental impacts, primarily through pollutions stemming from transportation. The regional benefits of tourism development must be considered alongside the global impacts of increased transportation and tourism participation. Global tourism has also been shown to be vulnerable to economic crises, oil price shocks, and global outbreaks of infectious diseases. Given that tourism is dependent on energy, the movement of people, and the consumption of resources, virtually all tourism activities have significant economic, environmental, and sustainable impacts. As such, the role of tourism in sustainable development is highly questionable. Future research on the role of tourism in sustainable development should focus on reducing the negative impacts of tourism development, both regionally and globally.

14 important environmental impacts of tourism + explanations + examples

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The environmental impacts of tourism have gained increasing attention in recent years.

With the rise in sustainable tourism and an increased number of initiatives for being environmentally friendly, tourists and stakeholders alike are now recognising the importance of environmental management in the tourism industry.

In this post, I will explain why the environmental impacts of tourism are an important consideration and what the commonly noted positive and negative environmental impacts of tourism are.

Why the environment is so important to tourism

Positive environmental impacts of tourism, water resources, land degradation , local resources , air pollution and noise , solid waste and littering , aesthetic pollution, construction activities and infrastructure development, deforestation and intensified or unsustainable use of land , marina development, coral reefs, anchoring and other marine activities , alteration of ecosystems by tourist activities , environmental impacts of tourism: conclusion, environmental impacts of tourism reading list.

The quality of the environment, both natural and man-made, is essential to tourism. However, tourism’s relationship with the environment is complex and many activities can have adverse environmental effects if careful tourism planning and management is not undertaken.

It is ironic really, that tourism often destroys the very things that it relies on!

Many of the negative environmental impacts that result from tourism are linked with the construction of general infrastructure such as roads and airports, and of tourism facilities, including resorts, hotels, restaurants, shops, golf courses and marinas. The negative impacts of tourism development can gradually destroy the environmental resources on which it depends.

It’s not ALL negative, however!

Tourism has the potential to create beneficial effects on the environment by contributing to environmental protection and conservation. It is a way to raise awareness of environmental values and it can serve as a tool to finance protection of natural areas and increase their economic importance.

In this article I have outlined exactly how we can both protect and destroy the environment through tourism. I have also created a new YouTube video on the environmental impacts of tourism, you can see this below. (by the way- you can help me to be able to keep content like this free for everyone to access by subscribing to my YouTube channel! And don’t forget to leave me a comment to say hi too!).

Although there are not as many (far from it!) positive environmental impacts of tourism as there are negative, it is important to note that tourism CAN help preserve the environment!

The most commonly noted positive environmental impact of tourism is raised awareness. Many destinations promote ecotourism and sustainable tourism and this can help to educate people about the environmental impacts of tourism. Destinations such as Costa Rica and The Gambia have fantastic ecotourism initiatives that promote environmentally-friendly activities and resources. There are also many national parks, game reserves and conservation areas around the world that help to promote positive environmental impacts of tourism.

Positive environmental impacts can also be induced through the NEED for the environment. Tourism can often not succeed without the environment due the fact that it relies on it (after all we can’t go on a beach holiday without a beach or go skiing without a mountain, can we?).

In many destinations they have organised operations for tasks such as cleaning the beach in order to keep the destination aesthetically pleasant and thus keep the tourists happy. Some destinations have taken this further and put restrictions in place for the number of tourists that can visit at one time.

Not too long ago the island of Borocay in the Philippines was closed to tourists to allow time for it to recover from the negative environmental impacts that had resulted from large-scale tourism in recent years. Whilst inconvenient for tourists who had planned to travel here, this is a positive example of tourism environmental management and we are beginning to see more examples such as this around the world.

Negative environmental impacts of tourism

Negative environmental impacts of tourism occur when the level of visitor use is greater than the environment’s ability to cope with this use.

Uncontrolled conventional tourism poses potential threats to many natural areas around the world. It can put enormous pressure on an area and lead to impacts such as: soil erosion , increased pollution, discharges into the sea, natural habitat loss, increased pressure on endangered species and heightened vulnerability to forest fires. It often puts a strain on water resources, and it can force local populations to compete for the use of critical resources.

I will explain each of these negative environmental impacts of tourism below.

Depletion of natural resources

Tourism development can put pressure on natural resources when it increases consumption in areas where resources are already scarce. Some of the most common noted examples include using up water resources, land degradation and the depletion of other local resources.

The tourism industry generally overuses water resources for hotels, swimming pools, golf courses and personal use of water by tourists. This can result in water shortages and degradation of water supplies, as well as generating a greater volume of waste water.

In drier regions, like the Mediterranean, the issue of water scarcity is of particular concern. Because of the hot climate and the tendency for tourists to consume more water when on holiday than they do at home, the amount used can run up to 440 litres a day. This is almost double what the inhabitants of an average Spanish city use.

impact of tourism development on environment

Golf course maintenance can also deplete fresh water resources.

In recent years golf tourism has increased in popularity and the number of golf courses has grown rapidly.

Golf courses require an enormous amount of water every day and this can result in water scarcity. Furthermore, golf resorts are more and more often situated in or near protected areas or areas where resources are limited, exacerbating their impacts.

An average golf course in a tropical country such as Thailand needs 1500kg of chemical fertilizers, pesticides and herbicides per year and uses as much water as 60,000 rural villagers.

brown rock formation under white and blue cloudy sky

Important land resources include fertile soil, forests , wetlands and wildlife. Unfortunately, tourism often contributes to the degradation of said resources. Increased construction of tourism facilities has increased the pressure on these resources and on scenic landscapes.

Animals are often displaced when their homes are destroyed or when they are disturbed by noise. This may result in increased animals deaths, for example road-kill deaths. It may also contribute to changes in behaviour.

Animals may become a nuisance, by entering areas that they wouldn’t (and shouldn’t) usually go into, such as people’s homes. It may also contribute towards aggressive behaviour when animals try to protect their young or savage for food that has become scarce as a result of tourism development.

Picturesque landscapes are often destroyed by tourism. Whilst many destinations nowadays have limits and restrictions on what development can occur and in what style, many do not impose any such rules. High rise hotels and buildings which are not in character with the surrounding architecture or landscape contribute to a lack of atheistic appeal.

Forests often suffer negative impacts of tourism in the form of deforestation caused by fuel wood collection and land clearing. For example, one trekking tourist in Nepal can use four to five kilograms of wood a day!

There are also many cases of erosion, whereby tourists may trek the same path or ski the same slope so frequently that it erodes the natural landscape. Sites such as Machu Pichu have been forced to introduce restrictions on tourist numbers to limit the damage caused.

picturesque scenery of grassy field in village

Tourism can create great pressure on local resources like energy, food, and other raw materials that may already be in short supply. Greater extraction and transport of these resources exacerbates the physical impacts associated with their exploitation.

Because of the seasonal character of the industry, many destinations have ten times more inhabitants in the high season as in the low season.

A high demand is placed upon these resources to meet the high expectations tourists often have (proper heating, hot water, etc.). This can put significant pressure on the local resources and infrastructure, often resulting in the local people going without in order to feed the tourism industry.

Tourism can cause the same forms of pollution as any other industry: Air emissions; noise pollution; solid waste and littering; sewage; oil and chemicals. The tourism industry also contributes to forms of architectural/visual pollution.

Transport by air, road, and rail is continuously increasing in response to the rising number of tourists and their greater mobility. In fact, tourism accounts for more than 60% of all air travel.

One study estimated that a single transatlantic return flight emits almost half the CO2 emissions produced by all other sources (lighting, heating, car use, etc.) consumed by an average person yearly- that’s a pretty shocking statistic!

I remember asking my class to calculate their carbon footprint one lesson only to be very embarrassed that my emissions were A LOT higher than theirs due to the amount of flights I took each year compared to them. Point proven I guess….

Anyway, air pollution from tourist transportation has impacts on a global level, especially from CO2 emissions related to transportation energy use. This can contribute to severe local air pollution . It also contributes towards climate change.

Fortunately, technological advancements in aviation are seeing more environmentally friendly aircraft and fuels being used worldwide, although the problem is far from being cured. If you really want to help save the environment, the answer is to seek alternative methods of transportation and avoid flying.

You can also look at ways to offset your carbon footprint .

Noise pollution can also be a concern.

Noise pollution from aircraft, cars, buses, (+ snowmobiles and jet skis etc etc) can cause annoyance, stress, and even hearing loss for humans. It also causes distress to wildlife and can cause animals to alter their natural activity patterns. Having taught at a university near London Heathrow for several years, this was always a topic of interest to my students and made a popular choice of dissertation topic .

In areas with high concentrations of tourist activities and appealing natural attractions, waste disposal is a serious problem, contributing significantly to the environmental impacts of tourism.

Improper waste disposal can be a major despoiler of the natural environment. Rivers, scenic areas, and roadsides are areas that are commonly found littered with waste, ranging from plastic bottles to sewage.

Cruise tourism in the Caribbean, for example, is a major contributor to this negative environmental impact of tourism. Cruise ships are estimated to produce more than 70,000 tons of waste each year.

The Wider Caribbean Region, stretching from Florida to French Guiana, receives 63,000 port calls from ships each year, and they generate 82,000 tons of rubbish. About 77% of all ship waste comes from cruise vessels. On average, passengers on a cruise ship each account for 3.5 kilograms of rubbish daily – compared with the 0.8 kilograms each generated by the less well-endowed folk on shore.

Whilst it is generally an unwritten rule that you do not throw rubbish into the sea, this is difficult to enforce in the open ocean . In the past cruise ships would simply dump their waste while out at sea. Nowadays, fortunately, this is less commonly the case, however I am sure that there are still exceptions.

Solid waste and littering can degrade the physical appearance of the water and shoreline and cause the death of marine animals. Just take a look at the image below. This is a picture taken of the insides of a dead bird. Bird often mistake floating plastic for fish and eat it. They can not digest plastic so once their stomachs become full they starve to death. This is all but one sad example of the environmental impacts of tourism.

Mountain areas also commonly suffer at the hands of the tourism industry. In mountain regions, trekking tourists generate a great deal of waste. Tourists on expedition frequently leave behind their rubbish, oxygen cylinders and even camping equipment. I have heard many stories of this and I also witnessed it first hand when I climbed Mount Kilimanjaro .

The construction of hotels, recreation and other facilities often leads to increased sewage pollution.

Unfortunately, many destinations, particularly in the developing world, do not have strict law enrichments on sewage disposal. As a result, wastewater has polluted seas and lakes surrounding tourist attractions around the world. This damages the flora and fauna in the area and can cause serious damage to coral reefs.

Sewage pollution threatens the health of humans and animals.

I’ll never forget the time that I went on a school trip to climb Snowdonia in Wales. The water running down the streams was so clear and perfect that some of my friends had suggested we drink some. What’s purer than mountain fresh water right from the mountain, right?

A few minutes later we saw a huge pile of (human??) feaces in the water upstream!!

Often tourism fails to integrate its structures with the natural features and indigenous architecture of the destination. Large, dominating resorts of disparate design can look out of place in any natural environment and may clash with the indigenous structural design.

A lack of land-use planning and building regulations in many destinations has facilitated sprawling developments along coastlines, valleys and scenic routes. The sprawl includes tourism facilities themselves and supporting infrastructure such as roads, employee housing, parking, service areas, and waste disposal. This can make a tourist destination less appealing and can contribute to a loss of appeal.

Physical impacts of tourism development

Whilst the tourism industry itself has a number of negative environmental impacts. There are also a number of physical impacts that arise from the development of the tourism industry. This includes the construction of buildings, marinas, roads etc.

The development of tourism facilities can involve sand mining, beach and sand dune erosion and loss of wildlife habitats.

The tourist often will not see these side effects of tourism development, but they can have devastating consequences for the surrounding environment. Animals may displaced from their habitats and the noise from construction may upset them.

I remember reading a while ago (although I can’t seem to find where now) that in order to develop the resort of Kotu in The Gambia, a huge section of the coastline was demolished in order to be able to use the sand for building purposes. This would inevitably have had severe consequences for the wildlife living in the area.

Construction of ski resort accommodation and facilities frequently requires clearing forested land.

Land may also be cleared to obtain materials used to build tourism sites, such as wood.

I’ll never forget the site when I flew over the Amazon Rainforest only to see huge areas of forest cleared. That was a sad reality to see.

Likewise, coastal wetlands are often drained due to lack of more suitable sites. Areas that would be home to a wide array of flora and fauna are turned into hotels, car parks and swimming pools.

old city port with moored ships and historical houses

The building of marinas and ports can also contribute to the negative environmental impacts of tourism.

Development of marinas and breakwaters can cause changes in currents and coastlines.

These changes can have vast impacts ranging from changes in temperatures to erosion spots to the wider ecosystem.

Coral reefs are especially fragile marine ecosystems. They suffer worldwide from reef-based tourism developments and from tourist activity.

Evidence suggests a variety of impacts to coral result from shoreline development. Increased sediments in the water can affect growth. Trampling by tourists can damage or even kill coral. Ship groundings can scrape the bottom of the sea bed and kill the coral. Pollution from sewage can have adverse effects.

All of these factors contribute to a decline and reduction in the size of coral reefs worldwide. This then has a wider impact on the global marine life and ecosystem, as many animals rely on the coral for as their habitat and food source.

Physical impacts from tourist activities

The last point worth mentioning when discussing the environmental impacts of tourism is the way in which physical impacts can occur as a result of tourist activities.

This includes tramping, anchoring, cruising and diving. The more this occurs, the more damage that is caused. Natural, this is worse in areas with mass tourism and overtourism .

unrecognizable male traveler standing on hill against misty scenic highlands

Tourists using the same trail over and over again trample the vegetation and soil, eventually causing damage that can lead to loss of biodiversity and other impacts.

Such damage can be even more extensive when visitors frequently stray off established trails. This is evidenced in Machu Pichu as well as other well known destinations and attractions, as I discussed earlier in this post.

white and black anchor with chain at daytime

In marine areas many tourist activities occur in or around fragile ecosystems.

Anchoring, scuba diving, yachting and cruising are some of the activities that can cause direct degradation of marine ecosystems such as coral reefs. As I said previously, this can have a significant knock on effect on the surrounding ecosystem.

Habitats can be degraded by tourism leisure activities.

For example, wildlife viewing can bring about stress for the animals and alter their natural behaviour when tourists come too close.

As I have articulated throughout this post, there are a range of environmental impacts that result from tourism. Whilst some are good, the majority unfortunately are bad. The answer to many of these problems boils down to careful tourism planning and management and the adoption of sustainable tourism principles.

Did you find this article helpful? Take a look at my posts on the social impacts of tourism and the economic impacts of tourism too! Oh, and follow me on social media !

If you are studying the environmental impacts of tourism or if you are interested in learning more about the environmental impacts of tourism, I have compiled a short reading list for you below.

The 3 types of travel and tourism organisations
150 types of tourism! The ultimate tourism glossary
50 fascinating facts about the travel and tourism industry

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Published: 07 May 2018

The carbon footprint of global tourism

Manfred Lenzen ORCID: orcid.org/0000-0002-0828-5288 1 ,
Ya-Yen Sun 2 , 3 ,
Futu Faturay ORCID: orcid.org/0000-0001-5636-1794 1 , 4 ,
Yuan-Peng Ting 2 ,
Arne Geschke ORCID: orcid.org/0000-0001-9193-5829 1 &
Arunima Malik ORCID: orcid.org/0000-0002-4630-9869 1 , 5

Nature Climate Change volume 8 , pages 522–528 ( 2018 ) Cite this article

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Tourism contributes significantly to global gross domestic product, and is forecast to grow at an annual 4%, thus outpacing many other economic sectors. However, global carbon emissions related to tourism are currently not well quantified. Here, we quantify tourism-related global carbon flows between 160 countries, and their carbon footprints under origin and destination accounting perspectives. We find that, between 2009 and 2013, tourism’s global carbon footprint has increased from 3.9 to 4.5 GtCO 2 e, four times more than previously estimated, accounting for about 8% of global greenhouse gas emissions. Transport, shopping and food are significant contributors. The majority of this footprint is exerted by and in high-income countries. The rapid increase in tourism demand is effectively outstripping the decarbonization of tourism-related technology. We project that, due to its high carbon intensity and continuing growth, tourism will constitute a growing part of the world’s greenhouse gas emissions.

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Change history

23 may 2018.

In the version of this Article originally published, in the penultimate paragraph of the section “Gas species and supply chains”, in the sentence “In this assessment, the contribution of air travel emissions amounts to 20% (0.9 GtCO2e) of tourism’s global carbon footprint...” the values should have read “12% (0.55 GtCO2e)”; this error has now been corrected, and Supplementary Table 9 has been amended to clarify this change.

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Acknowledgements

This work was financially supported by the Australian Research Council through its Discovery Projects DP0985522 and DP130101293, the National eResearch Collaboration Tools and Resources project (NeCTAR) through its Industrial Ecology Virtual Laboratory, and the Taiwan Ministry of Science and Technology (no. 105-2410-H-006-055-MY3). The authors thank S. Juraszek for expertly managing the Global IELab’s advanced computation requirements, and C. Jarabak for help with collecting data.

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Manfred Lenzen, Futu Faturay, Arne Geschke & Arunima Malik

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Ya-Yen Sun & Yuan-Peng Ting

UQ Business School, The University of Queensland, Brisbane, Queensland, Australia

Fiscal Policy Agency, Ministry of Finance of the Republic of Indonesia, Jakarta, Indonesia

Futu Faturay

Sydney Business School, The University of Sydney, Sydney, New South Wales, Australia

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Y.-Y.S. and M.L. conceived and designed the experiments. M.L., Y.-Y.S., F.F., Y.-P.T., A.G. and A.M. performed the experiments. F.F., Y.-P.T., M.L. and Y.-Y.S. analysed the data. Y.-P.T., A.G., Y.-Y.S. and M.L. contributed materials/analysis tools. M.L., Y.-Y.S. and A.M. wrote the paper.

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Lenzen, M., Sun, YY., Faturay, F. et al. The carbon footprint of global tourism. Nature Clim Change 8 , 522–528 (2018). https://doi.org/10.1038/s41558-018-0141-x

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Sustainable development

"Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities"

Sustainable tourism development guidelines and management practices are applicable to all forms of tourism in all types of destinations, including mass tourism and the various niche tourism segments. Sustainability principles refer to the environmental, economic, and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee its long-term sustainability.

Thus, sustainable tourism should:

Make optimal use of environmental resources that constitute a key element in tourism development, maintaining essential ecological processes and helping to conserve natural heritage and biodiversity.
Respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to inter-cultural understanding and tolerance.
Ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation.

Sustainable tourism development requires the informed participation of all relevant stakeholders, as well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable tourism is a continuous process and it requires constant monitoring of impacts, introducing the necessary preventive and/or corrective measures whenever necessary.

Sustainable tourism should also maintain a high level of tourist satisfaction and ensure a meaningful experience to the tourists, raising their awareness about sustainability issues and promoting sustainable tourism practices amongst them.

COMMITTEE ON TOURISM AND SUSTAINABILITY (CTS)

Biodiversity

UN Tourism strives to promote tourism development that supports, in equal measure, the conservation of biodiversity, the social welfare and the economic security of the host countries and communities.

Climate Action

Tourism is both highly vulnerable to climate change while at the same time contributing to it. Threats for the sector are diverse, including direct and indirect impacts such as more extreme weather events, increasing insurance costs and safety concerns, water shortages, biodiversity loss and damage to assets and attractions at destinations, among others.

Global Tourism Plastics Initiative

The problem of plastic pollution in tourism is too big for any single organisation to fix on its own. To match the scale of the problem, changes need to take place across the whole tourism value chain.

Hotel Energy Solutions (HES)

Hotel Energy Solutions (HES) is a UN Tourism -initiated project in collaboration with a team of United Nations and EU leading agencies in Tourism and Energy .

Observatories (INSTO)

The UN Tourism International Network of Sustainable Tourism Observatories (INSTO) is a network of tourism observatories monitoring the economic, environmental and social impact of tourism at the destination level.

When responsibly planned and managed, tourism has demonstrated its capacity to support job creation, promote inclusive social integration, protect natural and cultural heritage, conserve biodiversity, generate sustainable livelihoods and improve human wellbeing. As the sector is experiencing tremendous growth, collective efforts to ensure its long-term sustainability are essential.

Resource Efficiency in Tourism

The report aims to inspire stakeholders and encourage them to advance the implementation of the SDGs through sustainable tourism.

Small Islands Developing States (SIDS)

Small Island Developing States face numerous challenges. For a significant number, their remoteness affects their ability to be part of the global supply chain, increases import costs - especially for energy - and limits their competitiveness in the tourist industry. Many are increasingly vulnerable to the impacts of climate change - from devastating storms to the threat of sea level rise.

Travel facilitation

Travel facilitation of tourist travel is closely interlinked with tourism development and can be a tool to foster increased demand and generate economic development, job creation and international understanding.

UNGA Sustainable Tourism Resolutions

The UN Tourism is regularly preparing reports for the General Assembly of the United Nations providing updates on sustainable tourism policies both from UN Tourism member States and States Members of the United Nations, as well as relevant agencies and programmes of the United Nations system.

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Impact of tourism development upon environmental sustainability: a suggested framework for sustainable ecotourism

Qadar bakhsh baloch.

1 Abasyn University, Peshawar, Pakistan

Syed Naseeb Shah

Nadeem iqbal.

2 Air University School of Management, Air University, Islamabad, Pakistan

Muhammad Sheeraz

3 Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan

Muhammad Asadullah

4 IBA, Gomal University, Dera Ismail Khan, Pakistan

Sourath Mahar

5 University of Sialkot, Sialkot, Pakistan

Asia Umar Khan

6 Islamia College University Peshawar, Peshawar, Pakistan

Associated Data

The data that support the findings of this study are openly available on request.

The empirical research investigated the relationship between tourism development and environmental suitability to propose a framework for sustainable ecotourism. The framework suggested a balance between business and environmental interests in maintaining an ecological system with the moderating help of government support and policy interventions. The study population encompasses tourism stakeholders, including tourists, representatives from local communities, members of civil administration, hoteliers, and tour operators serving the areas. A total of 650 questionnaires were distributed to respondents, along with a brief description of key study variables to develop a better understanding. After verifying the instrument’s reliability and validity, data analysis was conducted via hierarchical regression. The study findings revealed that a substantial number of people perceive socio-economic benefits, including employment and business openings, infrastructure development from tourism development, and growth. However, the state of the natural and environmental capital was found to be gradually degrading. Alongside the social environment, social vulnerability is reported due to the overutilization of land, intrusion from external cultures, and pollution in air and water due to traffic congestion, accumulation of solid waste, sewage, and carbon emissions. The study suggested a model framework for the development of sustained ecotourism, including supportive government policy interventions to ensure effective conservation of environmental and natural resources without compromising the economic viability and social well-beings of the locals. Furthermore, the variables and the constructs researched can be replicated to other destinations to seek valuable inputs for sustainable destination management elsewhere.

Introduction

Tourism is a vibrant force that stimulates travel to explore nature, adventures, wonders, and societies, discover cultures, meet people, interact with values, and experience new traditions and events. Tourism development attracts tourists to a particular destination to develop and sustain a tourism industry. Moreover, environmental sustainability is the future-based conscious effort aimed at conserving socio-cultural heritage and preserving natural resources to protect environmental ecosystems through supporting people’s health and economic well-being. Environment sustainability can be reflected in clean and green natural landscaping, thriving biodiversity, virgin sea beaches, long stretches of desert steppes, socio-cultural values, and archeological heritage that epitomize tourists’ degree of motivation and willingness of the local community to welcome the visitors. In this context, tourism growth and environmental sustainability are considered interdependent constructs; therefore, the increase in tourism development and tourists’ arrivals directly affects the quality of sustained and green tourism (Azam et al. 2018 ; Hassan et al. 2020 ; Sun et al. 2021 ).

According to the World Tourism Organization (UNWTO), tourism is one of the fastest-growing industries, contributing more than 10% to the global GDP (UNWTO 2017; Mikayilov et al. 2019 ). Twenty-five million international tourists in 1950 grew to 166 million in 1970, reaching 1.442 billion in 2018 and projected to be 1.8 billion by 2030. Mobilizing such a substantial human tourist’s mass is most likely to trickle environmental pollution along with its positive effects on employment, wealth creation, and the economy. The local pollution at tourist destinations may include air emissions, noise, solid waste, littering, sewage, oil and chemicals, architectural/visual pollution, heating, car use, and many more. In addition, an uncontrolled, overcrowded, and ill-planned tourist population has substantial adverse effects on the quality of the environment. It results in the over-consumption of natural resources, degradation of service quality, and an exponential increase in wastage and pollution. Furthermore, tourism arrivals beyond capacity bring problems rather than a blessing, such as leaving behind soil erosion, attrition of natural resources, accumulation of waste and air pollution, and endangering biodiversity, decomposition of socio-cultural habitats, and virginity of land and sea (Kostić et al. 2016 ; Shaheen et al. 2019 ; Andlib and Salcedo-Castro 2021 ).

Tourism growth and environmental pollution have been witnessed around the globe in different regions. The ASEAN countries referred to as heaven for air pollution, climate change, and global warming are experiencing economic tourism and pollution (Azam et al. 2018 ; Guzel and Okumus 2020 ). In China, more than fifty-eight major Chinese tourism destinations are inviting immediate policy measures to mitigate air pollution and improve environmental sustainability (Zhang et al. 2020 ). Similarly, Singapore, being a top-visited country, is facing negative ecological footprints and calling for a trade-off between tourism development and environmental sustainability (Khoi et al. 2021 ). The prior studies established that international tourism and the tourism-led growth surge tourists’ arrival, energy consumption, carbon dioxide (CO 2 ) emissions, and air pollution resultantly cause climate change (Aslan et al. 2021 ). South Asian countries, more specifically Sri Lanka and Pakistan, are on the verge of tourism growth and environmental pollution compared to other countries (Chishti et al. 2020 ; Tiwari et al. 2021 ).

Pakistan is acknowledged in the tourism world because of its magnificent mountains with the densest concentration of high peaks in the world, scenic beauty of Neelum Valley, Murree, Chitral, and swat Valleys’, Kaghan, Naran, Hunza, Gilgit Baltistan (Baloch 2007 ), sacred shrines of Sikhism, archeological sites of the Gandhara and Indus Valley civilizations such as Mohenjo-Daro, Taxila including pre-Islamic Kalasha community (Baloch and Rehman 2015 ). In addition, Pakistan’s hospitable and multicultural society offers rich traditions, customs, and festivals for the tourists to explore, commemorate, cherish, and enjoy. Pakistan’s geographical and socio-cultural environment represents its resource and an opportunity (Baloch and Rehman 2015 ); therefore, Pakistan is looking to capitalize on it as a promising source of the foreign reserve to compensate for its mounting trade deficit (Baloch et al. 2020 ).

Tourism expansion has been established as a very deleterious ecological cost vis-à-vis the socio-economic benefits it passes to the host communities (Pulido-Fernández et al. 2019 ; Simo-Kengne 2022 ). In this context, the research is motivated to investigate the relationships between Pakistan’s tourism development activities and environmental sustainability. Drawing from the arguments of Pulido-Fernández et al. ( 2019 ) and Simo-Kengne ( 2022 ), it is feared that Pakistan’s ongoing determination to tourism development is likely to cause environmental degradation in two ways. Firstly, the tourism infrastructure developmental process would consume natural resources in the form of air and water pollution, loss of nature, and biodiversity. Secondly, the proliferation of tourism-related energy-consuming activities harms the environment by adding CO 2 emissions (Andlib and Saceldo-Castro 2021 ; Chien et al. 2021a ). Therefore, to tape this tourism-rich potential without compromising the sustainability of the natural and socio-cultural environment in the area, there is a dire need to develop Pakistan’s tourism areas into environment-friendly destinations.

Against the backdrop of a widening level of trade deficit, Pakistan’s rich tourism potential is being perceived as an immediate alternative for earning revenue to compensate for the current account gap. However, the developing large-scale tourism industry is considered a threat to deforestation, and air and water pollution, endangering biodiversity trading on resilient ecological credentials. The research study attempts to find an all-inclusive and comprehensive answer to the socio-ecological environmental concerns of tourism development and growth. Therefore, the research investigates the relationship between tourism development and its environmental sustainability to suggest a model framework for the development and growth of Sustainable Ecotourism in Pakistan along with its most visited destinations.

Literature review

Tourism development and growth.

Tourism is considered a force of sound as it benefits travelers and communities in urban and suburban areas. Tourism development is the process of forming and sustaining a business for a particular or mix of segments of tourists’ as per their motivation in a particular area or at a specific destination. Primarily, tourism development refers to the all-encompassing process of planning, pursuing, and executing strategies to establish, develop, promote, and encourage tourism in a particular area or destination (Mandić et al. 2018 ; Ratnasari et al. 2020 ). A tourism destination may serve as a single motivation for a group of tourists or a mix of purposes, i.e., natural tourism, socio-cultural or religious tourism, adventure or business tourism, or a combination of two or more. Andlib and Salcedo-Castro ( 2021 ), drawing from an analysis approach, contended that tourism destinations in Pakistan offer a mix of promising and negative consequences concerning their socio-economic and environmental impressions on the host community. The promising socio-economic impacts for the local community are perceived in the form of employment and business opportunities, improved standard of living, and infrastructural development in the area. The adverse environmental outcomes include overcrowding, traffic congestion, air and noise pollution, environmental degradation, and encroachment of landscaping for the local community and the tourists. An extensive review of the literature exercise suggests the following benefits that the local community and the tourists accrue from the tour are as follows:

Generate revenue and monetary support for people and the community through local arts and culture commercialization.
Improve local resource infrastructure and quality of life, including employment generation and access to improved civic facilities.
Help to create awareness and understanding of different ethnic cultures, social values, and traditions, connecting them and preserving cultures.
Rehabilitate and conserve socio-cultural and historical heritage, including archeological and natural sites.
Establishment of natural parks, protracted areas, and scenic beauty spots.
Conservation of nature, biodiversity, and endangered species with control over animal poaching.
Improved water and air quality through afforestation, littering control, land and soil conservation, and recycling of used water and waste.

Tourism and hospitality business incorporates various business activities such as travel and transportation through the air or other modes of travel, lodging, messing, restaurants, and tourism destinations (Szpilko 2017 ; Bakhriddinovna and Qizi 2020 ). A tourist’s tourism experience is aimed at leisure, experiencing adventure, learning the culture or history of a particular area or ethnic entity, traveling for business or health, education, or religious purposes. The chain of activities adds value to the Tourism experience. Every activity contributes toward economic stimulation, job creation, revenue generation, and tourism development encompassing infrastructure for all activities involved in the tourism process. Tourism growth expresses the number of arrivals and the time of their stay/trips over a period of time. Tourism growth is measured through the interplay between tourists’ arrivals, tourism receipts, and travel time duration (Song et al. 2010 ; Arifin et al. 2019 ). The following factors drive the degree and level of tourism development and growth:

Environmental factors include scenic beauty, green spaces, snowy mountains, towering peaks, good climate and weather, the interconnectivity of destination, quality of infrastructure, etc.
Socio-economic factors: the distinctiveness of community, uniqueness of culture and social values, hospitality and adaptability, accessibility, accommodation, facilities and amenities, cost-effectiveness, price index, and enabling business environment.
Historical, cultural, and religious factors include historical and cultural heritage, religious sites, and cultural values and experiences.

The tourism development process and its different dynamics revolve around the nature of tourism planned for a particular destination or area, which can be specified as ecotourism, sustainable tourism, green tourism or regenerative tourism, etc. Ecotourism is “responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and education” (Cheia, 2013 ; TIES, 2015). According to the World Conservation Union (IUCN), ecotourism involves “ Environmentally responsible travel to natural areas, to enjoy and appreciate nature (and accompanying cultural features, both past, and present) that promote conservation, have a low visitor impact and provide for beneficially active socio-economic involvement of local peoples ”. Moreover, Blangy and Wood ( 1993 ) defined it as “ responsible travel to natural areas that conserves the environment and sustains the well-being of local people ” (p. 32). The concept of ecotourism is grounded upon a well-defined set of principles including “environmental conservation and education, cultural preservation and experience, and economic benefits” (Cobbinah 2015 ; De Grosbois and Fennell 2021 ).

Ecotourism minimizes tourism’s impact on the tourism resources of a specific destination, including lessening physical, social, interactive, and psychosomatic impacts. Ecotourism is also about demonstrating a positive and responsible attitude from the tourists and hosts toward protecting and preserving all components of the environmental ecosystem. Ecotourism reflects a purpose-oriented mindset, responsible for creating and delivering value for the destination with a high degree of kindliness for local environmental, political, or social issues. Ecotourism generally differs from mass tourism because of its following features (Liang et al. 2018 ; Ding and Cao 2019 ; Confente and Scarpi 2021 ):

Conscientious behavior focuses on the low impact on the environment.
Sensitivity and warmth for local cultures, values, and biodiversity.
Supporting the sustenance of efforts for the conservation of local resources.
Sharing and delivering tourism benefits to the local communities.
Local participation as a tourism stakeholder in the decision-making process.
Educating the tourist and locals about the sensitivity and care of the environment because tourism without proper arrangement can endanger the ecosystems and indigenous cultures and lead to significant ecological degradation.

Sustainability aims to recognize all impacts of tourism, minimize the adverse impacts, and maximize the encouraging ones. Sustainable tourism involves sustainable practices to maintain viable support for the ecology of the tourism environment in and around the destination. Sustainable tourism is natural resource-based tourism that resembles ecotourism and focuses on creating travel openings with marginal impact and encouraging learning about nature having a low impact, conservation, and valuable consideration for the local community’s well-being (Fennell 2001 & 2020 ; Butowski 2021 ). On the other hand, ecotourism inspires tourists to learn and care about the environment and effectively participate in the conservation of nature and cultural activities. Therefore, ecotourism is inclusive of sustainable tourism, whereas the focus of sustainable tourism includes the following responsibilities:

Caring, protecting, and conserving the environment, natural capital, biodiversity, and wildlife.
Delivering socio-economic welfare for the people living in and around tourists' destinations.
Identifying, rehabilitating, conserving, and promoting cultural and historical heritage for visitors learning experiences.
Bringing tourists and local groups together for shared benefits.
Creating wide-ranging and reachable opportunities for tourists.

Environment and sustainability of ecosystem

The term “environment” is all-inclusive of all the natural, organic living, inorganic, and non-natural things. The environment also denotes the interface among all breathing species with the natural resources and other constituents of the environment. Humans’ activities are mainly responsible for environmental damage as people and nations have contemplated modifying the environment to suit their expediencies. Deforestation, overpopulation, exhaustion of natural capital, and accumulation of solid waste and sewage are the major human activities that result in polluted air and water, acid rain, amplified carbon dioxide levels, depletion of the ozone, climate change, global warming, extermination of species, etc. A clean, green, and hygienic fit environment has clean air, clean water, clean energy, and moderate temperature for the healthy living of humans, animals, and biodiversity as nature is destined for them by their creatures. Maintaining and sustaining a clean environment is indispensable for human and biodiversity existence, fostering growth and development for conducting business and creating wealth. The environment can be sustained through conservation, preservation, and appropriate management to provide clean air, water, and food safe from toxic contamination, waste, and sewage disposal, saving endangered species and land conservation.

The globalization process, known for building socio-economic partnerships across countries, is also charged with encouraging environmental degradation through the over-consumption of natural resources and energy consumption, deforestation, land erosion, and weakening (Adebayo and Kirikkaleli 2021 ; Sun et al. 2021 ). Chien et al. ( 2021b ), while studying the causality of environmental degradation in Pakistan, empirically confirmed the existence of a significant connection between CO 2 emissions and GDP growth, renewable energy, technological innovation, and globalization. However, Chien et al. ( 2021a ) suggested using solar energy as a source of economic intervention to control CO 2 emissions and improve environmental quality in China. The danger of air pollution is hard to escape as microscopic air pollutants pierce through the human respiratory and cardiovascular system, injuring the lungs, heart, and brain. Ill-planned and uncontrolled human activities negatively affect ecosystems, causing climate change, ocean acidification, melting glaciers, habitation loss, eutrophication, air pollution, contaminants, and extinction of endangered species ( Albrich et al. 2020 ) .

Humans have a more significant effect on their physical environment in numerous ways, such as pollution, contamination, overpopulation, deforestation, burning fossil fuels and driving to soil erosion, polluting air and water quality, climate change, etc. UNO Agenda for 2030 “Sustainable Development and its Sustainable Development Goals” (SDGs) mirrors the common premise that a healthy environment and human health are interlaced as integral to the satisfaction of fundamental human rights, i.e., right to life, well-being, food, water and sanitation, quality of life and biodiversity to ensure healthy lives and promote well-being for all at all ages (SDG3)—which includes air quality that is dependent upon terrestrial ecosystems (SDG15), oceans (SDG14), cities (SDG11), water, cleanliness, and hygiene (SDG6) (Swain 2018 ; Opoku 2019 ; Scharlemann et al. 2020 ). The UNEP stated that 58% of diarrhea cases in developing economies is due to the non-provision of clean water and inadequate sanitation facilities resulting in 3.5 million deaths globally (Desai 2016 ; Ekins and Gupta 2019 ).

Climate change overwhelmingly alters ecosystems’ ability to moderate life-threatening happenings, such as maintaining water quality, regulating water flows, unbalancing the temporal weather and maintaining glaciers, displacing or extinction biodiversity, wildfire, and drought (Zhu et al. 2019 ; Marengo et al. 2021 ). Research studies advocate that exposure to natural environments is correlated with mental health, and proximity to green space is associated with lowering stress and minimizing depression and anxiety (Noordzij et al. 2020 ; Slater et al. 2020 ; Callaghan et al. 2021 ). Furthermore, the Ecosystem is affected by pollution, over-exploitation of natural resources, climate change, invasive and displacing species, etc. Hence, providing clean air and water, hygienic places, and green spaces enriches the quality of life: condensed mortality, healthier value-added productivity, and is vital to maintaining mental health. On the other hand, climate change aggravates environment-related health hazards through adverse deviations to terrestrial ecology, oceans, biodiversity, and access to fresh and clean water.

Tourism development denotes all activities linked with creating and processing facilities providing services for the tourists on and around a destination. Infrastructure development is vital for developing a tourism destination to advance tourists’ living conditions and preserve natural and cultural heritage by constructing new tourist facilities, the destinations administrative and supporting echelons, including community living, etc. Development for tourism infrastructure and land use often burdens natural capital through over-consumption, leading to soil erosion, augmented pollution, loss of natural habitats, and endangered species. Development of tourism infrastructure and construction work has profound implications on environmental degradation, reduction in green spaces, deforestation, solid waste and sewage, overutilization of air and water, emission of CO 2 and other gases contributing to air and water pollution, climate change, loss and displacement of biodiversity, and the degradation of ecosystems. These negative consequences of tourism development result in many problems for the tourists and the indigenous people in the foreseeable future (Azam et al. 2018 ; Hoang et al. 2020 ).

A report published by UNEP titled “Infrastructure for climate action” has suggested governments introduce sustainable infrastructure as the prevailing one is responsible for causing 79% of all greenhouse gas emissions in struggling climate change, alleviation, and adaptation efforts. Sustainable infrastructure signifies that structures’ planning, construction, and functioning do not weaken the social, economic, and ecological systems (UNEP 2021 ; Krampe 2021 ). Sustainable infrastructure is the only solution that ensures societies, nature, and the environment flourish together. Therefore, Sustainable Ecotourism supports adapting pro-environment and nature-based climate change strategies that help resilient biodiversity and ecosystem to impact climate change. The proposed strategy is to focus on the conservation and restoration of ecosystems to combat climate hazards, fluctuating rainfalls, soil erosion, temperature variations, floods, and extreme wind storms (Niedziółka 2014 ; Setini 2021 )

Pakistan’s tourism infrastructure suffered a colossal amount of damage during the earthquake of October 8, 2005, which left widespread demolition and destruction to its human, economic assets, and infrastructure networks, especially in Kashmir and Khyber Pakhtunkhwa's tourism areas. The tourism-related infrastructure, including hotels, destination facilities of social service delivery and commerce, water channels, and communications networks, were either drained or virtually destroyed. The destruction in the aftermath of the earthquake was further added by the war against terror in tourism-hit areas, resulting in the redundancy of tourists and tourism facilities for a long time (Akbar et al. 2017 ; Zakaria and Ahmed 2019 ). The tourism revival activities during the post-earth quack, post-terrorism scenario, and COVID-19 period called for various entrepreneurial activities, including the construction of infrastructure, hotels, road networks, community living, etc. Development and reconstruction of the livelihood and hospitality infrastructure through entrepreneurship were undertaken intensively through a public-private partnership from national and international findings (Qamar and Baloch 2017 ; Sadiq 2021 ; Dogar et al. 2021 ).

The revival and reinvigoration of infrastructure in tourism areas were backed up by extensive deforestation, use of local green land, rebuilding of the road network, displacement of biodiversity, and overtaxing the consumption of water and other natural resources. The deforestation, extensive use of green land, and over-consumption of water and other natural resources have depleted the tourism value of the area on the one hand and degraded the environment on the other. However, it was the focused rehabilitation activities of earthquake and Pakistan’s Government’s socio-environment conservation strategy of the Billion Trees plantation program in the province, including dominating tourism areas. The afforestation and loss of green tops are being reclaimed through these efforts, and the tourism environment is soon expected to regenerate (Qamar and Baloch 2017 ; Rauf et al. 2019 ; Siddiqui and Siddiqui 2019 ).

Government support and policy interventions

Tourism generates wide-ranging benefits for the economy, community, and people. Tourism contributes to the economy through revenue generation and shares responsibility with the Government to alleviate poverty alleviation, create opportunities for job placements, protect environments, and conserve natural ecosystems and biodiversity. It is assumed that if the tourism industry is left to its own, it will most likely prefer its business interests over environments or biodiversity. Governments, custodians of the life and well-being of their subjects, are directly responsible for providing a clean environment, nature, and Ecosystem. Therefore, national and local governments are responsible for preparing and implementing tourism development plans and enforcing values and standards for tourism development in conformity with the prerequisites of environmental sustainability. Through institutional governance, governments help tourism development by providing financial and budgetary support, regulatory framework, land, physical resources, infrastructure, etc. Provision and facilitation for Sustainability of Ecotourism and conservation of environment and biodiversity are dependent upon Government-supported interventions as follows:

The regulatory framework for setting up tourism-related entrepreneurship and quality standards can support ecotourism and prevent environmental degradation on any account.
Provision of budgetary support for ecosystem conservation and regeneration of bio-diversity-related projects.
Plan, rehabilitate if needed, promote conservation and protection of socio-cultural, historic, antique, and natural endowments in coordination with other public and private agencies, and deal with the defaulters, if any.
Promoting and undertaking afforestation alongside land conservation and discouraging deforestation, soil erosion, accumulation of solid waste, littering, and any direct or indirect loss or threat to biodiversity.
Setting restrictions for over-tourism beyond capacity and quality standards for transportation, restaurants, hotels, food and drinking water, etc.
Placing enforcement mechanism necessary to ensure application of the regulatory framework and quality standards applicable along with all activities inclusive to the Ecotourism value chain.

Theoretical support and hypothesis development

According to the social disruption theory, rapidly expanding societies usually experience a period of widespread crisis and a loss of their conventional routines and attitudes. The crisis impacts people whose mental health, worldviews, behavioral patterns, and social networks may all be impacted (Çalişkan and Özer 2021 ). According to the social disruption theory, fast community change brought on by population growth will result in a variety of social issues that are signs of a generally disorganized community (Smith et al. 2001 ). Because some types of tourism communities experience rapid expansion accompanied by intensive development and rapid social change over a relatively short period of time, they seem to be great settings for studying various postulations of the social disruption theory.

Place change and social disruption theory are closely connected. According to this assumption, when a community undergoes fast expansion, it tends to experience a generalized crisis that might culminate in several social issues as changes spread throughout the community and among individuals (Rasoolimanesh et al. 2019 ). Place change can result from fundamental community restructuring due to economic development, new class divides, and migration of both long-term and temporary people (Nelson 2001 ). Social unrest, though, is not enduring. Instead, it is transitory; societies gradually adjust to these changes (Deery et al. 2012 ).

The standard of living may initially deteriorate, but due to the adaptability of people and communities, they will gradually reinvigorate and strengthen themselves accordingly. Furthermore, the social disruption proposition reinforces one of the challenges in analyzing the effects of tourism, particularly in emerging nations, since it is sometimes difficult to distinguish between the effects of tourism and the overall ongoing development (Park and Stokowski 2009 ) (Fig. (Fig.1 1 ).

Tourism development and growth significantly affect natural environment resources.
Tourism development and growth significantly affect environmental pollution.
Tourism development and growth significantly affect the physical ecosystem of the environment.
Tourism development and growth significantly affect the socio-cultural environment.
Tourism development and growth significantly affect the economic environment of people and the community.
Government policy and support significantly moderate the relationship between tourism development and growth and the environmental factors.

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Conceptual framework

Methodology

The study aimed to investigate the association of tourism development and its impact on environmental factors. Therefore, a survey method was employed to collect data by including all the relevant people in the locality. The study is based on stakeholders’ opinions from Pakistan’s most visited tourist areas, including Murree, Swat, Chitral, Naran, Kaghan, Neelum Valley, Malam Jabba, Ayubia, and Nathia Gali. A total of 650 stakeholders were contacted from the above-mentioned tourist destinations through survey. The distribution of the sample is mentioned in Table Table1 1 .

Sample configuration

Field survey—2021

Using quantitative techniques, hierarchical linear regression analysis was employed to investigate the possible relationships between tourism growth and various dimensions of environmental sustainability. The results below reveal that tourism development translates into environmental deterioration, and the relationship between tourism and environmental sustainability is bidirectional.

Tourism growth and development were measured through a five-item scale. The environment was measured through 16 items combined scale with sub-dimensions; depletion of Natural Resources=3 items, Polluting Environment=3 items, Physical Effects on Ecosystem=4 items, Socio-Cultural Degradation=3 items, and Economic Environment=3-items. Similarly, our moderating variable, Government Interventions and Support, was measured using a 5-item scale. Table Table2 2 below presents the details of the instruments.

Instrument reliability

Analysis and results

Data were analyzed using SPSS Version 26. It includes correlation, linear regression, and stepwise hierarchal regression analysis.

Table Table3 3 above shows that our Tourism Growth and Development has significant and positive relationship with Polluting Environment ( r = 0.20**), Physical Effects on Ecosystem ( r = 0.19**), Depletion of Natural Resource ( r = 0.24**), Socio-Cultural Degradation ( r = 0.18**). However, Tourism Growth and Development has positive relationship with Economic Environment ( r = 0.29**) and Government Interventions and Support ( r = 0.13**).

Correlation matrix

* p < 0.05; ** p < 0.01

Results of linear regression analysis at Table Table4 4 above depict that tourism growth and development predicts 4.1% variance in Depletion of Natural Resources ( β = 0.20, p <0.01), 3.9% variance in pollution ( β = 0.19, p <0.01), 6% variance in Physical Effects on Ecosystem ( β = 0.24, p <0.01), 3.6% variance in Socio-Cultural Degradation ( β = 0.18, p <0.01), and 8.8% variance in Economic Environment ( β = 0.29, p <0.01).

Regression analysis for H1–H5

** p < 0.01

The study analyzes the applied two-step hierarchal regression. In the first step, Tourism Growth and Government Interventions were treated as independent variables, and their significant impact was measured. In the second step, the interaction term Tourism and Growth× Government Interventions was added, and its impact was measured. The results suggest that Government Interventions and Support moderate the relationship between Tourism Growth and the Environmental variables (Table (Table5 5 ).

Moderation analysis

* p < 0.05;** p < 0.01

The study has reported unique findings regarding tourism and its environmental impacts. We found that tourism growth and development generate economic activity on the one hand. However, it has specific adverse environmental and socio-cultural outcomes on the other hand as well. Our study revealed that tourism growth and development predict a 4.1% variance in Depletion of Natural Resources ( β = 0.202*, p <0.01). This suggests that due to the expansion of tourism in the country, natural resources are continuously depleted to meet the needs of tourists. Studies also supported our findings and suggested that revival and reinvigoration of infrastructure in tourism areas were backed up by extensive deforestation, use of local green land, rebuilding of the road network, displacement of biodiversity, and overtaxing the consumption of water and other natural resources (Qamar and Baloch 2017 ; Sadiq 2021 ; Dogar et al. 2021 ). The prior studies are consistent with our hypothesis that “tourism development and growth significantly affect natural environment resources.”

We further found that tourism growth and development predict a 3.9% variance in pollution ( β = 0.198*, p <0.01), suggesting that tourism expansion may pollute the natural environment. Furthermore, recent national statistics depict that major human activities at local tourism destinations such as Kalam, Sawat, Muree, and Northern Areas have accumulated solid waste and sewage, resulting in polluted air and water. Further, research also suggests that the overflow of tourists to tourist destinations may adversely affect the environment due to human activities (Noordzij et al. 2020 ; Slater et al. 2020 ; Andlib and Salcedo-Castro 2021 ; Callaghan et al. 2021 ). Thus, it is safe to argue that the growth of tourism has a particularly detrimental effect on the environment. These findings also support our hypothesis, “Tourism development and growth significantly contribute to environmental pollution.”

The results reported that tourism growth and development predict a 6% variance in Physical Effects on the Ecosystem ( β = 0.245*, p <0.01). Studies have reported that deforestation and alteration in species’ natural environment for tourism facilities construction may adversely affect environmental health (Kuvan, 2010 ; Azam et al. 2018 ; Hoang et al. 2020 ; Andlib and Salcedo-Castro 2021 ). During post-terrorism and post-Covid-19 times in Pakistan, millions of local tourists moved to popular tourist destinations that required new infrastructure to accommodate these tourists. Consequently, colossal deforestation and other detrimental human activities have negatively affected ecosystem. These findings also support our hypothesis that tourism development and growth significantly affect the physical ecosystem of the environment.

The study reported a total of 3.6% variance in socio-cultural degradation ( β = 0.189*, p <0.01) due to tourism growth and development. These findings suggest that tourism’s growth and development may lead the inhabitants to imitate the foreign tourists regarding their living standards, which may endanger their traditional culture. Thus, our hypothesis that “tourism development and growth significantly affect the socio-cultural environment” is confirmed.

Further, it was found that tourism growth and development predict an 8.8% variance in the economic environment ( β = 0.297*, p <0.01). It is established from the literature that tourism growth and development generate economic activity in the country. Development projects such as the construction of infrastructure, hotels, and road networks generate economic activity to facilitate international and indigenous tourists, positively affecting the community’s living standard (Baloch et al. 2020 ). Thus, our hypothesis, “tourism development and growth significantly affect economic environment of people and community,” is confirmed.

Due to tourism growth and development, our study reported a 1.8% variance in Government Support and Interventions ( β = .133*, p <0.01). However, more recently, the Government of Pakistan has devised specific interventions that may help curb the adverse impacts of detrimental environmental factors. For example, developmental schemes such as the Billion Trees Plantation drive and Road-Infrastructure Network Development under the China-Pakistan Economic Corridor initiative may prove moderators to curb the negative impacts of tourism growth on the environment (Qamar and Baloch 2017 ; Rauf et al. 2019 ; Siddiqui and Siddiqui 2019 ). Therefore, the hypothesis, Government policy and support, significantly moderates the relationship between tourism development and growth with the environment is confirmed based on these findings.

Suggested model for ecotourism framework

Through its detailed review of existing literature, prevailing tourism policies, and empirical inputs from the stakeholders’ perspectives, the study has identified a wide range of obstacles limiting the development and growth of ecotourism in Pakistan. The study suggests National Tourism Management authorities carefully invest in ecotourism destination’s planning and development in coordination with the environment development agency. The suggested model for ecotourism framework is initially meant for the tourism destinations specifically designated for ecotourism. However, selected points can also be extended to the quality management parameters set for the National Parks, Conservation and Protracted Areas, Museums, National or International event sites, etc. The national tourism authorities are to lay particular emphasis in their forthcoming National Tourism Policy on the development and promotion of Sustainable Ecotourism having, with focus on the following key areas:

Identify and classify four to five ecotourism destinations, including ecotourism-centered activities of value chains for priority development, which are administratively possible within budgetary constraints. However, the development plan shall consider the integral benefits of other developmental schemes such as the Billion Trees Plantation drive, Road-Infrastructure Network Development under the China-Pakistan Economic Corridor initiative, International Union for Conservation of Nature (ICUN) programs in the area.
While staying within the alignment of UN Millennium Development Goals (MDG) calling for ‘environmental sustainability’ and the development vision of each designated destination, the Tourists Management System shall take into cognizance of issues like managing capacity of the place, quality parameters for the conservation of the environment, and allowable activities thereof.
Identify degenerated destinations of religious, socio-cultural, or historical significance for their rehabilitation under the Regenerated tourism program.
i. To deflect the tourist pressure upon these destinations, the potential tourists from nearby cities and metropolitan areas be provided with nearby alternative destinations for leisure tourism as stay-tourism sites.
ii. To prevent the environment from air pollution, the traffic load on the destination be curtailed through an effective traffic management strategy, provision of off-destination parking for combustion engine vehicles, and encouraging electric driven or hybrid vehicles for nearby parking.
iii. Provision of clean drinking water through public infiltration plants, public toilets, solid waste carriers, and recycling of sewage and used water is recommended in the most visited areas of the destination.
iv. Signposting at appropriate places, giving social messages encouraging to maintain cleanliness, avoid littering, ensure nature conservation, and humility toward biodiversity.
Develop all-inclusive, comprehensive execution plans to expedite the investments for the sustainable ecotourism, encouraging public–private cooperation, community involvement, and infrastructure mapping guaranteeing environmental conservation and safeguards.
Develop and place on the ground an all-inclusive program of capacity building for sustainable ecotourism, regenerative and green tourism services.
Develop and launch Pakistan tourism profile and Sustaining Ecotourism obligatory framework “to promote tourism on the one hand and nurture conscious ecological behavior among the potential tourists of the area”.
In order to fetch local ownership for the ecotourism center developments, all efforts shall be made to share the socio-economic benefits integral to the development scheme with the local population for community development.
As part of the destination management planning, identify complementary value chains and livelihood activities that could be developed as part of the overall ecotourism destination package.
i. Setting new quality standards facilitating the promotion of ecotourism and environmental sustainability through acts of various bodies operating in the Ecotourism value chain, such as:
Revision of Private hotels Management Act (1976) and Tourists Operators Act (1976) alongside introduction and promulgation of a new “Tourism Destination Management Act” incorporating new quality standards as of today.
Promulgating laws to make all new construction/development projects responsible from any agency in the area, incorporating quality standards needed for environmental sustainability, and promoting ecotourism.
Set measures for the preservation of the local biodiversity and preservation of endangered species, including seeking support from internationally active environment conservation agencies, declaring local hunting illegal, introducing licensing programs for hunting of certain selected animals/ birds on the payment of a handsome amount to be used for the welfare of the local community.
Create awareness programs against deforestation, land conservation, and biodiversity, and maintain cleanliness, inculcating a culture of respecting and enjoying nature instead of spoiling it.

Conclusion, implications, and limitations of the study

The study premise was based on the contention that sustenance of ecotourism focuses on the economic viability of the business interests alongside the conservation and preservation of natural ecosystems, including ethical fairness to the socio-cultural environment of the host community. Ecotourism is a phenomenon that contributes to environmental sustainability through well-planned and careful destination management capable of balancing conflicting interests of business growth and environmental sustainability. Tourism-environment paradox suggests that the sustainability and survival of both are dependent upon the flourishing mode of each other. Quality of environment and sustainability of bio-ecosystem stimulates tourists’ arrivals and over-tourism beyond capacity with irresponsible behavior from tourists negatively influencing the environment and harming the ecosystem of nature. Ecotourism is not inevitably sustainable unless it is economically sustainable and environmentally maintainable besides being socio-culturally acceptable. Socio-culturally intolerable ecotourism means the activity which does not benefit locals and their socio-cultural values. Hence, the study concludes that ecotourism has to positively interplay between economy, environment, and culture without compromising one over others. The pursuit of sustainable ecotourism is not an end in meeting the little comforts of the business interests but rather a means to end the sustainability issues created due to ill-conceived tourism development and unmanageable growth.

Practical implications

Drawing from the findings and conclusions of the research, the study extends the following practical implications for effectively managing the process of tourism development and environmental sustainability in line with the dictates of the philosophy behind ecotourism:

Paradoxically tourism necessitates ecological capitals as primary ingredients for the creation of tourism experiences on the one hand. However, it is also contingent upon the conservation and preservation of ecological integrity on the other. The study suggests that unbalancing this “resource paradox” results in the harshness and tenacity of adversarial climate change, natural calamities, environmental pollution, and endangered biodiversity.
The research findings and the suggested framework for ecotourism imply that sustainable ecotourism principles-based planning is mandatory for destination management to assure effective trade-off between the business interests’ sustainability of the environmental ecosystem.
Tourism development and growth shall be steered through ecotourism principles as its sustainable model offers enduring social, environmental and economic, ecological integrity, and social and cultural benefits for the local community. Therefore, ecotourism is a recipe for preventing environmental degradation and guarantees sustainability of ecosystems nature and its biodiversity. Hence, ecotourism shall stand central priority focus for strategic management to nurture quality experiences from sustainable tourism.
To revive back the sustainability of the environment, in the areas where over-tourism has degraded the environment, schemes for regenerated tourism shall be immediately launched to mitigate the negative footprints on the sustainability of destinations, including reinforcing protracted conservation sites, biodiversity, and recouping endangered species, afforestation drives, recycling of water and solid waste, refurnishing of landscaping, preservation, and rehabilitation of cultural heritage and refurbishing of depleted infrastructure accordingly. Furthermore, to regenerate and sustain the tourism infrastructure of the destinations experiencing over-tourism, capacity building measures like capacity, recycling of water and solid waste, preventive measures to control air and water pollution, traffic control management, and spread of entertainment facilities shall be the focus of the regeneration plans.
The study implies that government authorities and policymakers have a special role in placing their moderating intervention in terms of policy guidelines, regulatory framework, and budgetary support, provision of inter-organizational synergy in planning and implementation of ecotourism strategies, protection of environmental resource base and conservation of natural and biological ecosystem, sustenance of socio-cultural value of local community over and above their economic and social well-being/quality life for the long run.
The study also implies that public and private policymakers lay down threshold criteria for responsible travel and tourism standards for destination management and its related supply chain. The laid criterion would facilitate management in nurturing “responsible behavior” to plan, protect, conserve, preserve, and sustain natural and cultural resources and responsible socio-economic development without compromising the sustainability of the environment and long-term well-being of the hoist community. The deep-seated adherence to social responsibility protocols by the tourism supply chain network can significantly increase the capacity of tourism destinations and improve the conscious awareness of green consumers along the tourism supply chain. Furthermore, the consciously responsible behavior among stakeholders and legislatures can strike a needed balance between the business interests and environments in favor of sustainability of socio-cultural, economic, and natural capital.
The study elucidates that responsible behavior necessitates purpose-built eco-friendly infrastructure and policy parameters to support the sustainability of environments across destinations. The strategic planning aligned with the sustainability-focused objectives dictates the need for artistic, innovative, and talented people and quality intuitions in harnessing quality tourism services and responsible tourism behavior. Furthermore, the study encourages community involvement in the developmental process, enactment of structural policies, preservation of socio-cultural heritage, and conservation of natural biodiversity as it would foster emotional bondage between the people of the host community and the tourism undertakings. Therefore, community and value chain managers shall collaborate to maximize the perceived benefits of responsible tourism while developing cultural exchanges and planning opportunities for leisure and tourism.
Regulatory measures help offset negative impacts; for instance, controls on the number of tourist activities and movement of visitors within protected areas can limit impacts on the ecosystem and help maintain the integrity and vitality of the site. Limits should be established after an in-depth analysis of the maximum sustainable visitor capacity. Furthermore, the variables and the constructs researched can be replicated to other destinations to seek valuable inputs for sustainable destination management elsewhere.

Study limitation

Besides the functional, practical applications, the study has some limitations. Besides having integral disadvantages of cross-sectional research, the respondents selected for the study were visitors on peak days with the highest tourist arrivals, thereby having experiences of a higher degree of environmental pollution and natural disorder. Furthermore, the research is limited to stakeholders’ perspectives instead of any scientifically generated data or mathematical or econometric model.

Author contribution

QBB: conceptualization, methodology, writing—original draft. SNS: data curation and supervision. NI: visualization, editing, proofreading. MS: review and editing. MA: review and editing. SM: editing, data curation. AUK: review and editing.

Data availability

Declarations.

The authors have no relevant financial or non-financial interests to disclose. We also declare that we do not have human participants, data, or tissue.

We do not have any person’s data in any form.

The authors declare no competing interests.

Publisher's note

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Contributor Information

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Sustainable tourism

Related sdgs, promote sustained, inclusive and sustainable ....

Description

Publications.

Tourism is one of the world's fastest growing industries and an important source of foreign exchange and employment, while being closely linked to the social, economic, and environmental well-being of many countries, especially developing countries. Maritime or ocean-related tourism, as well as coastal tourism, are for example vital sectors of the economy in small island developing States (SIDS) and coastal least developed countries (LDCs) (see also: The Potential of the Blue Economy report as well as the Community of Ocean Action on sustainable blue economy).

The World Tourism Organization defines sustainable tourism as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities".

Based on General assembly resolution 70/193, 2017 was declared as the International Year of Sustainable Tourism for Development.

In the 2030 Agenda for Sustainable Development SDG target 8.9, aims to “by 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism is also highlighted in SDG target 12.b. which aims to “develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products”.

Tourism is also identified as one of the tools to “by 2030, increase the economic benefits to Small Island developing States and least developed countries” as comprised in SDG target 14.7.

In the Rio+20 outcome document The Future We want, sustainable tourism is defined by paragraph 130 as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities by supporting their local economies and the human and natural environment as a whole. ” In paragraph 130, Member States also “call for enhanced support for sustainable tourism activities and relevant capacity-building in developing countries in order to contribute to the achievement of sustainable development”.

In paragraph 131, Member States “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small- and medium-sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”. In this regard, Member States also “underline the importance of establishing, where necessary, appropriate guidelines and regulations in accordance with national priorities and legislation for promoting and supporting sustainable tourism”.

In 2002, the World Summit on Sustainable Development in Johannesburg called for the promotion of sustainable tourism development, including non-consumptive and eco-tourism, in Chapter IV, paragraph 43 of the Johannesburg Plan of Implementation.

At the Johannesburg Summit, the launch of the “Sustainable Tourism – Eliminating Poverty (ST-EP) initiative was announced. The initiative was inaugurated by the World Tourism Organization, in collaboration with UNCTAD, in order to develop sustainable tourism as a force for poverty alleviation.

The UN Commission on Sustainable Development (CSD) last reviewed the issue of sustainable tourism in 2001, when it was acting as the Preparatory Committee for the Johannesburg Summit.

The importance of sustainable tourism was also mentioned in Agenda 21.

For more information and documents on this topic, please visit this link

UNWTO Annual Report 2015

2015 was a landmark year for the global community. In September, the 70th Session of the United Nations General Assembly adopted the Sustainable Development Goals (SDGs), a universal agenda for planet and people. Among the 17 SDGs and 169 associated targets, tourism is explicitly featured in Goa...

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Unwto regional conference enhancing brand africa - fostering tourism development.

Tourism is one of the Africa’s most promising sectors in terms of development, and represents a major opportunity to foster inclusive development, increase the region’s participation in the global economy and generate revenues for investment in other activities, including environmental preservation.

January 2017 International Year of Tourism In the context of the universal 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), the International Year aims to support a change in policies, business practices and consumer behavior towards a more sustainable tourism sector that can contribute to the SDGs.
January 2015 Targets 8.9, 12 b,14.7 The 2030 Agenda for Sustainable Development commits Member States, through Sustainable Development Goal Target 8.9 to “devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products”. The importance of sustainable tourism, as a driver for jobs creation and the promotion of local culture and products, is also highlighted in Sustainable Development Goal target 12.b. Tourism is also identified as one of the tools to “increase [by 2030] the economic benefits to Small Island developing States and least developed countries”, through Sustainable Development Goals Target 14.7.
January 2012 Future We Want (Para 130-131) Sustainable tourism is defined as a significant contributor “to the three dimensions of sustainable development” thanks to its close linkages to other sectors and its ability to create decent jobs and generate trade opportunities. Therefore, Member States recognize “the need to support sustainable tourism activities and relevant capacity-building that promote environmental awareness, conserve and protect the environment, respect wildlife, flora, biodiversity, ecosystems and cultural diversity, and improve the welfare and livelihoods of local communities” as well as to “encourage the promotion of investment in sustainable tourism, including eco-tourism and cultural tourism, which may include creating small and medium sized enterprises and facilitating access to finance, including through microcredit initiatives for the poor, indigenous peoples and local communities in areas with high eco-tourism potential”.
January 2009 Roadmap for Recovery UNWTO announced in March 2009 the elaboration of a Roadmap for Recovery to be finalized by UNWTO’s General Assembly, based on seven action points. The Roadmap includes a set of 15 recommendations based on three interlocking action areas: resilience, stimulus, green economy aimed at supporting the tourism sector and the global economy.
January 2008 Global Sustainable Tourism Criteria The Global Sustainable Tourism Criteria represent the minimum requirements any tourism business should observe in order to ensure preservation and respect of the natural and cultural resources and make sure at the same time that tourism potential as tool for poverty alleviation is enforced. The Criteria are 41 and distributed into four different categories: 1) sustainability management, 2) social and economic 3) cultural 4) environmental.
January 2003 WTO becomes a UN specialized body By Resolution 453 (XV), the Assembly agreed on the transformation of the WTO into a United Nations specialized body. Such transformation was later ratified by the United Nations General Assembly with the adoption of Resolution A/RES/58/232.
January 2003 1st Int. Conf. on Climate Change and Tourism The conference was organized in order to gather tourism authorities, organizations, businesses and scientists to discuss on the impact that climate change can have on the tourist sector. The event took place from 9 till 11 April 2003 in Djerba, Tunisia.
January 2002 World Ecotourism Summit Held in May 2002, in Quebec City, Canada, the Summit represented the most important event in the framework of the International Year of Ecosystem. The Summit identified as main themes: ecotourism policy and planning, regulation of ecotourism, product development, marketing and promotion of ecotourism and monitoring costs and benefits of ecotourism.
January 1985 Tourism Bill of Rights and Tourist Code At the World Tourism Organization Sixth Assembly held in Sofia in 1985, the Tourism Bill of Rights and Tourist Code were adopted, setting out the rights and duties of tourists and host populations and formulating policies and action for implementation by states and the tourist industry.
January 1982 Acapulco Document Adopted in 1982, the Acapulco Document acknowledges the new dimension and role of tourism as a positive instrument towards the improvement of the quality of life for all peoples, as well as a significant force for peace and international understanding. The Acapulco Document also urges Member States to elaborate their policies, plans and programmes on tourism, in accordance with their national priorities and within the framework of the programme of work of the World Tourism Organization.

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Positive Impacts of Tourism on the Environment

If you asked random people from different countries whether tourism has negative or positive impacts on the environment, none of the answers would most likely prevail since their opinion will be based on their personal experience from travels. Tourism and environment have important, yet controversial relationship, that needs to be in a perfect balance to benefit each other.

Beautiful natural landscapes or unique flora and fauna are the main drivers of tourism into an area. But when too many tourists visit natural sites, environment and its inhabitants rather suffer from the negative impacts, which easily outweigh all the benefits due to exceeding the natural carrying capacity of a place .

On the other hand, when the number of visitors is balanced with respect for the natural environment, tourism has great potential in supporting or even starting out new conservation projects that protect unique areas and benefit local residents.

Sustainable tourism helps protect the environment

Many countries around the world depend on tourism as their main industry in providing jobs in rural areas and bringing in funds that would be otherwise out of their reach. Financial resources and employment are critical for local livelihoods and security. But as more and more countries focus on expanding their tourism sites, they often encounter problems with overconsumption of their finite natural resources, pollution, and degradation. This easily spirals into undesirable situations of negative impacts on the local environment and society.

Tourism as a fast-growing industry must follow the principles of sustainability in order to last long term while maintaining positive impacts for an area. In terms of environment, this means consumption of natural resources within acceptable limits, protecting biodiversity and making sure that essential ecological processes can take place, while providing a pleasant experience to visiting tourists [1] .

A part of striving towards sustainability is also raising awareness about the unique natural features of an area and educating visitors about their sustainable management. This helps them to understand the rules set in place and respect differences.

Sustainable Development Goals (SDGs) in relation to tourism

Tourism represents 10 percent of world GDP. The industry increasingly affects the environment, culture, and socio-economic development of a country. Due to such a great reach, it is a powerful tool in facilitating change.

According to the World Tourism Organization (UNWTO), tourism contributes directly or indirectly to all the 17 goals of sustainable development (SDGs) that were defined together with additional 169 SDG targets to ensure safer future for life on Earth by 2030.

Since 2018, UNWTO operates even an online platform dedicated to achievement of SDGs through tourism. You can visit it here: https://tourism4sdgs.org/ . On the platform is detailed description of each sustainable development goal in relation to tourism. SDGs address areas ranging from the importance of biodiversity, protection of marine ecosystems to urgent call for sustainable production and consumption.

Following the guidelines, UNWTO has, for example, partnered with the United Nations Environment Programme and the Ellen MacArthur Foundation and launched a Global Tourism Plastics Initiative to mitigate the problem of plastic pollution in the industry.

What are the positive impacts of tourism on the environment?

Sustainable tourism is the only way to go forward if the industry wants to grow. But throughout the last couple decades, tourism has been already growing and has introduced many new places to foreign visitors. In some regions, having the option of welcoming paying guests, tourism has brought many positive impacts on the environment. Let’s see their examples.

#1 Awareness raising and first-hand experience

Beautiful landscapes, animals in their natural environment, exotic ecosystems attract visitors from around the world. They are the primary reason why people travel. To get rest from their daily blues and experience ultimate relaxation from the connection with natural world. Tourism is the best tool to raise awareness of environmental values.

You learn the best when you do get to experience something directly, when you see it, touch it, and when you witness what threatens to destroy it. Personal visit of natural areas introduces you to the values they have for life. It makes you care about them, since you get to enjoy their special feeling. And memories you will have will encourage you to be environmentally-conscious in travel and personal life.

In January 2021, alarming pictures of the most touristy beaches in Bali buried in plastic waste that washed up on the shore due to the monsoon weather, appeared on social media of travelers and in the news [2] . The images have drawn global attention and created a bad rep for single-use plastic items, making us (consumers) more aware of the true impact.

#2 Tourism for skills learning and education

This is a special side of tourism but plays also an important role in positive impacts of tourism on the environment. Visitors do not have to be drawn to places just for entertainment or relaxation, they may come with the primary mission of learning a new skill or gaining certain knowledge. Tourists come to see a special feature in an area and often pay for their stay, for food, or training, which is a nice way to support the work they came to admire. Additionally, they may also put the new knowledge to use for their own projects.

One nice example of this form of tourism could be visiting a permaculture farm with the purpose to learn about the practices applied on the farm and exchange ideas on what might work at home. Another example, that could inspire many, is spending time on edible forest farms, learning about planting diversity of low maintenance plants on your piece of land. Or visiting villages excelling in agroforestry farming practices which have allowed them to harvest variety of products from their lands, while protecting sensitive mountainous environments, where intensive farming would not be an option.

#3 Support of conservation and biodiversity protection activities

Africa is a prime example of a country where tourism has had a positive effect on wildlife protection. Wildlife tourism in Africa makes around 36 percent of the tourism industry, contributing over $29 billion to the continent’s economy and provides jobs to 3.6 million people [3] .

The opportunity of seeing wild animals in their natural environment is what Africa is the most known for. This form of tourism reduces poverty and helps to empower women directly by giving them jobs, but even indirectly by allocating funds to build infrastructure – schools, hospitals.

Africa, Asia, South America, and the South Pacific focus more and more on the value of their wild natural areas. With the growth of tourism appear even new national and wildlife parks that connect sustainable tourism with biodiversity preservation.

For example, iSimangaliso Wetland Park in South Africa offers amazing experience for tourists who can choose between diving, snorkeling, kayaking or horseback riding in a landscape of 25,000 years old coastal dunes and swamp forests, while protecting the area’s sensitive ecosystems and unique species. The coastline is Africa’s only remaining nesting place of Loggerhead and Leatherback turtles [4] .

#4 Protection of endangered species

Countries begin to realize that their rare and endemic species are their symbol in the eyes of foreign visitors who are often attracted to the place because of them. Wild animals, virgin forests and a colorful palette of exotic plants are becoming an unusual sight in an economically developed world. The remaining spots that are still a home to this disappearing world are often turn to nature reserves and protected areas. This ensures better safety for endangered species that inhabit them.

Virunga National Park in East Africa has a story of conservation success to tell, even despite years of civil unrest and war in the surrounding areas, it has been declared an ecological pillar for the entire East and Central African biodiversity, having the largest concentration of birds and reptiles over other protected areas [5] .

Thanks to the initiative of the World Wildlife Fund and United Nations, the park has endured hard years and granted protection to endangered mountain gorillas, who were almost driven to extinction by human encroachment into their already limited habitat. Thanks to these extraordinary efforts and persistence, gorillas from the Virunga recovered and their number rose from 480 to over 600 [6] . The park is one of the most attractive tourist destinations, where you can see gorillas, chimpanzees, and many other iconic animals.

#5 Prevention of illegal trade and exploitation

Tourism brings new opportunities even to most remote places. The growing interest of tourists in visiting places where people live in connection with nature and animals gives chance to locals to sustain their families far from urban areas. In many cases, local communities quickly realize the need to protect what they have in order to attract tourists, as the stream of income from tourism is long-term and more advantageous than one-time sales of finite resources or poached animals.

A glimmer of hope sparked by the vision of attracting tourists takes place in two villages in Nepal that are known for being a transit points for illegal trade in pangolin meat and scales to Tibet and India.

The villages have joined a community-based pangolin conservation and education project . The goal of the project is to discourage local poachers from selling scales of pangolins to illegal traders, and thus interrupt the illegal trade pathway while protecting endangered pangolins . Participants of the project are also trained to help with long-term monitoring of pangolin population (species ecology, identification of threats and distribution).

#6 Finance and job opportunities

One in ten jobs worldwide are directly or indirectly in the tourism industry. Tourism creates decent work opportunities and economic growth even in rural or remote areas. Tourism employs women and is often the first job experience of young people. Money from the tourism then often goes into improving local infrastructure, and sustainable management and protection of natural wonders that attract visitors.

Better infrastructure and services have a positive impact on the environment. They revolve around consumption of resources and their management. Modern infrastructure for wastewater cleaning saves water and promotes more efficient use of it. Waste management facilities focus on recycling materials rather than just dumping waste into sea or to landfills.

Tourism also directly helps to fund conservation activities of national parks, or other nature and wildlife preservation projects. Visitors are usually asked to pay entrance fees or a small tax that is meant to support the project.

Costa Rica has one of the most successful rainforest conservation strategies, which enables the country to protect and care for its incredibly biodiversity rich rainforests, while at the same time generating income from tourism. A part of this income goes back to the rainforest conservation maintenance, research, and professional training of park guards. The rest sustains regional economy and creates balanced life opportunities for locals.

#7 Adoption of sustainable practices and new legislation

We have partially tapped into this aspect already in the previous point. It is closely linked. More funds available to a region mean better possibilities to improve infrastructure and services. Modernization of infrastructure goes hand in hand with a transition to sustainable technologies and seeking of long-term solutions that will benefit people and the local environment.

Many travelers care about their impact on the environment. They are willing to pay for environmentally friendly services and accommodation when visiting a new place. Many destinations already follow the suit and are changing their approach to tourism by considering their environmental impact in their management.

Additionally, governments also respond to this pressure and often enforce regulations to further protect local natural resources by adopting sustainable practices in the industry.

You can see this trend in increasing numbers of eco-tourism lodges around the world; or recycling bins placed in public areas to collect different materials for more efficient waste management; in water saving measures and recommendations adopted by accommodation providers; or even large-scale renewable energy projects that power whole regions.

Several studies highlighted the benefits of renewable energy for maintaining healthy environment during the seasonal influx of tourists to island destinations. For example, a study of Mediterranean islands sees renewable energy projects as a tool to provide sufficient energy to residents and tourists during the periods of increased demand, while protecting already fragile and limited resources islands have.

Tourism and the environment could go well together

The success of tourism relies on good infrastructure and decent quality of services. The industry therefore helps the community development and brings new sources of inspiration and motivation for protection of biodiversity rich natural areas, wildlife, or whole ecosystems.

Many new conservation projects raise hope of local people in being able to sustain their families, while taking care of their home, of their legacy, of a place shaped by the nurturing hands of their ancestors. They hope that their effort will be appreciated and rewarded by respectful visitors.

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Greentumble was founded in the summer of 2015 by us, Sara and Ovi . We are a couple of environmentalists who seek inspiration for life in simple values based on our love for nature. Our goal is to inspire people to change their attitudes and behaviors toward a more sustainable life. Read more about us .

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Impact of tourism development upon environmental sustainability: a suggested framework for sustainable ecotourism

Affiliations.

1 Abasyn University, Peshawar, Pakistan.
2 Air University School of Management, Air University, Islamabad, Pakistan. [email protected].
3 Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan.
4 IBA, Gomal University, Dera Ismail Khan, Pakistan.
5 University of Sialkot, Sialkot, Pakistan.
6 Islamia College University Peshawar, Peshawar, Pakistan.
PMID: 35984561
PMCID: PMC9389488
DOI: 10.1007/s11356-022-22496-w

The empirical research investigated the relationship between tourism development and environmental suitability to propose a framework for sustainable ecotourism. The framework suggested a balance between business and environmental interests in maintaining an ecological system with the moderating help of government support and policy interventions. The study population encompasses tourism stakeholders, including tourists, representatives from local communities, members of civil administration, hoteliers, and tour operators serving the areas. A total of 650 questionnaires were distributed to respondents, along with a brief description of key study variables to develop a better understanding. After verifying the instrument's reliability and validity, data analysis was conducted via hierarchical regression. The study findings revealed that a substantial number of people perceive socio-economic benefits, including employment and business openings, infrastructure development from tourism development, and growth. However, the state of the natural and environmental capital was found to be gradually degrading. Alongside the social environment, social vulnerability is reported due to the overutilization of land, intrusion from external cultures, and pollution in air and water due to traffic congestion, accumulation of solid waste, sewage, and carbon emissions. The study suggested a model framework for the development of sustained ecotourism, including supportive government policy interventions to ensure effective conservation of environmental and natural resources without compromising the economic viability and social well-beings of the locals. Furthermore, the variables and the constructs researched can be replicated to other destinations to seek valuable inputs for sustainable destination management elsewhere.

Keywords: Ecosystem and biodiversity; Ecotourism framework; Environmental sustainability and degradation; Natural environment; Tourism development and growth.

Conservation of Natural Resources*
Environmental Pollution
Reproducibility of Results

REVIEW article

This article is part of the research topic.

Recreational forests for co-benefits: conservation, tourism and well-being

An Overview of Community Livelihoods in Biosphere Reserves (BRs): based on the Sustainable Livelihoods Framework for the 21st Century Provisionally Accepted

1 Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences (CAS), China

The final, formatted version of the article will be published soon.

Biosphere Reserves (BRs) are the protected areas proposed by the Man and the Biosphere Programme for harmonious coexistence between humanity and nature. Human activities represented by community livelihoods have always been one of the critical issues in the protection and development of BRs. However, the lack of comprehensive research on the status quo and problems of community livelihoods in BRs has caused difficulties in policy formulation and management. In the form of a literature review, this study attempts to summarize and sort out the overview of community livelihoods in BRs by screening the academic literature with the keywords of BRs and livelihoods and using the 21st Century Sustainable Livelihood Framework as the road map. As a result, community livelihoods in BRs highly depend on environmental resources, increasing vulnerability. Although establishing BRs has brought financial and business opportunities to the community, it also provides environmental resources, public services, and geographical areas in the climate-environmental context needed for livelihood maintenance. However, community livelihoods and climate-environmental context show a contradictory relationship of 'mismatch between supply and demand' in environmental resources and public services in BRs. In geographical areas, the conflicts brought by illegal activities, invasive alien species, and wildlife-human conflicts are also gradually increasing. At the same time, unbalanced physical and financial assets and relational power with mixed praise also challenge the sustainable development of community livelihoods in BRs. Therefore, this study believes that through multi-stakeholder joint efforts, BRs Friendly Community Livelihoods other than the initial livelihood with high environmental resource dependence can be sought for communities through livelihood diversification, community participatory management, and community spatial pattern refinement.

Keywords: Sustainable Livelihoods Framework, Man and the biosphere programme, Environmental resources, review, resource management

Received: 23 Jan 2024; Accepted: 25 Mar 2024.

Copyright: © 2024 Yang. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

* Correspondence: Dr. Lun Yang, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences (CAS), Beijing, China

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Assessing the socio-economic impacts of tourism packages: a methodological proposition

SOCIETAL LCA
Open access
Published: 26 March 2024

Cite this article

You have full access to this open access article

Cristina Casals Miralles ORCID: orcid.org/0000-0002-5943-6920 1 ,
Mercè Boy Roura 1 ,
Sergio Ponsá Salas 1 ,
Laia Llenas Argelaguet 1 &
Joan Colón Jordà 1

The effects of tourism extend beyond purely economic considerations; they also have an impact on both the environment and people. Development of tools and procedures that foster consensus among practitioners and enable the measurement and benchmarking of impacts are required for tourism managers to be able to work on lowering and mitigating the sector’s effects, while enhancing the positive benefits. In this study a methodological proposition to assess the social impacts of tourism packages is presented.

Aim and scope

This study adapts and tests for the first time a social evaluation technique, the Product Social Impact Assessment (PSIA) method, to assess the social implications of tourism products and services. It is iteratively tested on 9 tourism packages in Mediterranean Protected Areas. Numerous parties, including managers of protected areas and private tourism stakeholders, have engaged in this process at various stages, such as developing the packages or supplying the data required for the assessment.

Conclusions

The methodology tested appears appropriate to quantify and qualify the social impacts of tourism packages and is valid for enhancing the social performance since positive progress between the two testing faces was registered. This study is a step towards standardizing the social assessment of tourism packages following a Life Cycle Assessment approach, and future developments are needed to make the approach proposed in the paper adequate to assess the social impacts of the upstream and downstream components of the system.

Avoid common mistakes on your manuscript.

1 Introduction

Despite the fact that the COVID-19 pandemic halted international travel and had a significant negative impact on the sector’s development with losses of USD 4.5 trillion and 62 million jobs, prior to the pandemic the tourism industry accounted for 10.4% of the global GDP and 10.6% of all jobs with an essentially constant growth trend over time (Organización Mundial del Turismo 2018 ; World Travel and Tourism Council 2021 ). As it is closely tied to other economic sectors, the tourism industry has also had an amplifying impact; it is predicted that for every direct job produced in tourism, an additional 1.5 jobs are indirectly created in other economic sectors (Organización Mundial del Turismo 2020 ). This information can help one understand the sector’s significance for global economic growth. This significance is especially clear in the most touristic regions, such as the Southern Mediterranean, which welcomes 19% of all visitors at a global scale (Scott and Gössling 2018 ) and where the travel and tourism sector accounts for up to 14.1% of GDP (World Travel and Tourism Council 2021 ).

Tourism not only generates financial gains, but it also has significant effects on the environment and society, the other two pillars of sustainability, just like any key economic activity (Gnanapala and Sandaruwani 2016 ; Arzoumanidis et al. 2021 ). It is estimated that the worldwide tourism sector accounts for a share of global water consumption of around 1% (Gössling 2013 ) and is responsible for an approximate 8% of the global CO 2 emissions (Lenzen et al. 2018 ). In certain countries, like Spain, the GHG emissions from the tourism industry may make up as much as 10.6% of the emissions from the entire national economy (Cadarso et al. 2016 ). At the same time, the tourism industry is particularly sensitive to climate change since a destination’s appeal is typically influenced by specific environmental factors (Köberl et al. 2015 ).

Additionally, from a sociological standpoint, several groups of individuals may be impacted by tourism-related activities. It is commonly recognized that the tourism industry can influence employees’ wellbeing. Around 87% of tourism employment is low-skilled jobs with limited career opportunities, and most of its workforce is required at certain points of time as the tourism demand is highly seasonal mainly due to given climatic conditions that make destinations more attractive during particular periods (Kronenberg and Fuchs 2021 ). These realities have detrimental socioeconomic repercussions since they make it difficult for employees to find steady, well-paying jobs. Local populations may also notice the negative consequences of tourism and can experience impacts related with vandalism and crime but also with respect to the objectification of their place and the changes in traditional cultures and the host’s way of life (Cheer et al. 2019 ). The local community can also be negatively affected at an economic level as tourism can increase the demand for some products and services that can lead to price inflation thus overburdening the access of permanent residents (Higgins-Desbiolles et al. 2019 ). Other groups of people besides employees and inhabitants may also be impacted by tourism-related activities depending on the specifics of each place, such as the value chain of the industry, society at large and tourists themselves. If properly managed, tourism can bring positive benefits and enhance the quality of life of societies while taking advantage from it, as stakeholders play a fundamental function in the development of sustainable tourism (Muler Gonzalez et al. 2018 ). The upkeep and construction of infrastructure, the promotion of direct and indirect workforce development, the distribution of economic growth, the spread of environmental and cultural awareness and pride, the capacity building of individuals and groups, the improvement of public health and safety issues, etc. are all social opportunities that can result from tourism (Ramkissoon 2020 ).

If tourism pretends to be a resilient and sustainable industry, managers should develop tourism models that are in tune with the essence of the ecosystems and human systems where the activities are taking place (Sánchez del Río-Vázquez et al. 2019 ). To do so, it is imperative to apply appropriate measurement tools to quantify the level of sustainability and monitor the progress over time to support the development of policies and projects and to take informed decisions at all scales (Zagonari 2019 ; McLeod et al. 2021 ).

To tackle this challenge, the primary objective of this study is to establish a comprehensive framework for evaluating the positive and negative social impacts of tourism products and service providers. This involves adapting and testing the Product Social Impact Assessment (PSIA) method, which has not been previously applied in the context of tourism. Building upon existing research and relevant schemes, the study aims to refine and tailor certain aspects of the methodology to suit the unique characteristics of the tourism industry.

2 State-of-the art

Tourism has been included in internationally accepted standards and guidelines that aim to achieve sustainability, such as the Sustainable Development Goals (SDGs) that explicitly mention the sector in the SDG 8 “decent work and economic growth”, SDG12 “responsible consumption and production”, and SDG14 “the sustainable use of oceans and marine resources”. Additionally, there are various indicators schemes that have tried to provide tools to monitor and measure the social aspects of tourism as The European Tourism Indicator System (ETIS) (European Commission 2016 ) that was launched with the aim of helping destinations to evaluate their sustainable tourism performance, by using a common comparable approach. The Global Sustainable Tourism Council (GSTC) developed the GSTC Criteria (Global Sustainable Tourism Council (GSTC) 2016 ) that are a set of minimum undertakings shaped as more than a hundred indicators that any tourism organization should aspire to when considering sustainability in their practices. The World Tourism Organization (WTO) that has been promoting the use of tourism indicators since the early 1990s presented the Indicators of Sustainable Development for Tourism Destinations (ISDTD): A Guidebook (World Tourism Organization (WTO) 2004 ) that describes over 40 major tourism sustainability issues, and for each issue, indicators are suggested. Additionally, several EU-funded projects as CO-EVOLVE and MITOMED + have adapted and developed social indicators for tourism in the Mediterranean region with the goal of enhancing the sustainability responsibility in tourism by helping local and regional policymakers to monitor impacts.

On the other hand, one of the most accepted and used techniques for holistically assessing sustainability of products and services is life cycle assessment (LCA) (Ekener et al. 2016 ). Social life cycle assessment (S-LCA) is a younger field of research partially based on the ISO 14040 standard, not as widespread as environmental and economic LCA (Lobsiger-Kägi et al. 2018 ; Fürtner et al. 2021 ). It includes the four main steps specified in the LCA framework: goal and scope, life cycle inventory (LCI), life cycle impact assessment (LCIA) and interpretation, and also is an iterative procedure that enables to improve the performance over time. There are two main methodologies coping with S-LCA: the UNEP-SETAC Guidelines for Social Life Cycle Assessment of Products and Organizations and the Product Social Impact Assessment (PSIA) method. Building upon these foundational broad methods, various authors have developed more specialized assessment methodologies for evaluating S-LCA, aiming to address specific areas where precisions was previously lacking (Ramirez et al. 2014 ). S-LCA is to be used to assess and compare the social characteristics of products and services, as well as their potential positive and negative effects throughout their life cycles (UNEP 2020 ). For the measurement of tourism environmental impacts, a life cycle thinking approach has been frequently applied in practical situations. However, with regard to S-LCA, there is a lack of case studies in tourism and, to the best of the authors’ knowledge, only Arcese et al. ( 2013 ) has considered a S-LCA approach in tourism to this day. Arcese et al. provides an interesting contribution regarding the identification of social topics and indicators to qualitatively assess an accommodation facility but lacks a measurement method to allow the translation of the qualitative data to quantitative results better aligning the proposed framework with an LCA mindset and also a system for benchmarking the outcomes for comparison and performance improvements is absent.

Existing tourism assessment strategies and projects have successfully identified the key social topics and indicators relevant to the sector at a destination level. However, they have often lacked a comprehensive scientific framework that enables evaluation, comparison and informed decision-making. This deficiency is particularly evident in several dimensions:

Life cycle perimeters: Current literature primarily focuses on select stages of tourism products’ life cycles, omitting critical phases which could offer significant insights (upstream and downstream processes such as infrastructure construction, goods production, and waste management).

Range of issues considered: Presently, there is a wide variability in the topics addressed, which leads to a fragmented understanding of what constitutes the social sustainability of tourism. This lack of standardization in topic selection likely results in the underrepresentation or complete omission of certain relevant issues.

Insufficiency and representativeness of literature: The paucity of literature on the social assessment of tourism inherently limits its representativeness. The current body of research, especially in terms of detailed case studies, is insufficient to effectively capture the diverse and evolving social impacts across different temporal and geographical contexts.

Methodological gaps: There is a need for a more unified and standardized methodology in assessing the social aspects of tourism services. The existing limited literature shows a diversity of approaches, which, while valuable, complicates the comparison of data.

This paper aims to bridge this gap by integrating these previous advancements in social assessment of tourism into a S-LCA approach, specifically utilizing the PSIA method. Prior frameworks that focused on tourism sustainability assessment have laid the groundwork by identifying crucial social topics and developing relevant indicators. Building upon these foundations, the PSIA technique facilitates the creation of performance indicators that allow for result benchmarking, provide recommendations for improvement and transform qualitative insights into semiquantitative outcomes while enabling the comprehensive assessment of tourism packages from a life cycle perspective. Through this integration, illustrated in Fig. 1 , it becomes possible to apply a systematic and standardized approach. This S-LCA procedure for tourism packages was tested and improved in 9 ecotourism packages located in various Mediterranean Protected Areas (PAs) as part of the EU-funded DESTIMED PLUS project.

Scheme of the social-assessment approach developed to evaluate the social impacts of tourism packages

3 Methodology

In the present study, the approach followed to assess the social impacts of tourism products is a bottom-up approach based on the PSIA method (Goedkoop et al. 2020 ), created by the Roundtable for Product Social Metrics project. The choice to utilize this strategy was made mostly due to the greater degree of development of the technique provided by PSIA regarding indicators and performance indicators, the applicability of the system for making recommendations, the possibility to address also positive impacts in addition to negative impacts and the clarity of the suggested outcomes visualization.

The information on the methodology developed to evaluate the social effect of tourism packages is further described in the following sections.

3.1 Goal and scope

The study’s primary goal is to develop and assess the effectiveness of a modified PSIA method tailored for evaluating the social impacts of tourism packages. Additionally, this assessment approach needs to be efficient for determining the effects as well as for offering suggestions for enhancing the social performance of the packages over time.

In relation with the goal of the study, only foreground processes in a gate-to-gate approach are considered in the assessment. The processes included in this S-LCA correspond to: (1) Accommodation, (2) Food&Drinks, (3) Mobility and (4) Activities&Services. This classification of services and activities is defined in accordance with the Ecological Footprint method for evaluating tourism packages developed by Mancini et al. ( 2018 ). From the system under study, the trip preparatory activities and the travelling to the destination and the return home are not considered in the assessment, as well as all the background processes (Fig. 2 ).

System boundary of the social impact assessment of the tourism packages delimited by the dashed line

3.2 Data collection

In the present study, company-specific data was collected from all the service providers of each tourism package by trained data collectors visiting the service providers’ sites. A scheme of the process is presented in Fig. 3 . To do so, technical partners of the project provided training to the different Local Ecotourism Cluster (LEC) members to build capacity for a general understanding of the sustainability evaluation of the packages. Data collectors were specially trained to be able to engage data providers and collect the data needed to assess the social sustainability of the packages. Additionally, stakeholder involvement was essential, especially when specific data verification for each performance indicator was required. Despite the complexities introduced by the pandemic, concerted efforts to engage as much as possible the appropriate individuals for each piece of information were made. The unique aspect of ecotourism suppliers, typically small-scale businesses deeply rooted in their communities, was beneficial in gathering relevant data. The sensitivity of the data being collected presents its own set of challenges, necessitating careful and nuanced approach to ensure accuracy and reliability.

Methodological steps to assess the social impacts of tourism packages with the social-assessment approach developed in this paper

A social assessment data collection excel tool was developed by technical partners and validated by the LECs to facilitate the process of collecting data. This survey was distributed in each pilot site. The data collected is equivalent to the qualitative or quantitative answers for the performance indicators defined to assess each indicator that can be found in Table S2 of the Supplementary material 1 . Additionally, a detailed document specifying the means of verification of the data provided for each performance indicator was handed to data collectors to ensure comparable results among pilot actions and can be consulted in the Supplementary material 2 . After data was collected, the first step consisted of a validation process performed by the technical partners. Data was processed and evaluated in accordance with the developed social impact assessment approach once it was confirmed that each package included a complete and trustworthy dataset.

The data collection process took place twice for each tourism package since an iterative approach was considered for the S-LCA. After data was collected in an initial assessment round (R1), results were analysed in detail and based on that, recommendations for improvement of the social performance of each package were formulated and delivered to each concerned LEC and service provider. Time for the integration of the recommendation was given to managers of the different packages. Service providers implemented changes for improvement based on the list of suggestions and LECs, and in some occasions, also made decisions regarding the substitution of providers for new providers with better social performance or other quality-related reasons. After this refining phase, the second round of testing (R2) took place, and the tourism packages were assessed again following the same strategy, survey and set of indicators to prove the effectiveness of the undergone social impact assessment method on the upgrading of the tourism packages from a social performance perspective.

The PSIA methodology incorporates a data quality assessment matrix to evaluate and document the quality of data pertinent to the most critical life-cycle stages in tourism’s social assessment (Goedkoop et al. 2020 ). This matrix focuses on three primary criteria: data accuracy, timeliness or age and its correlation and representativeness. In this study, the data quality is assessed using the PSIA matrix. The data predominantly consists of non-verified internal data with documentation or verified data partially based on assumptions (assigned a score of 2), from the current reporting period (score 1) and specific to each site under study (score 1). This assessment yields an average data quality score of 1.3, which is notably close to the optimal score of 1 (where 1 signifies the highest quality and 5 the lowest).

3.3 Social impact assessment

In this phase, the data gathered in the inventory stage is translated into impacts or potential impacts. The PSIA methodology adopts a Type I approach, which indicates that the assessment methodology is based on performance reference points with the main purpose of drawing the picture of the actual social impacts of tourism packages. To translate the data collected into results, the key elements of the methodology, which are (i) stakeholder groups, (ii) social topics, (iii) indicators, (iv) performance indicators and (v) reference scale, should be defined.

Stakeholder groups

The first key components of the assessment are the stakeholder groups. Stakeholder groups are those groups of people whose interests could be potentially affected by the life cycle of a product or service. The social impacts of the tourism packages are assessed with regard to the identified stakeholder groups for the 4 categories of services and activities previously determined (Accommodation, Food&Drinks, Mobility and Activities&Services) thus avoiding the implementation of indicators that are not relevant for the specific system under study.

The stakeholder categories considered in the assessment of tourism packages are the 4 groups proposed in the PSIA methodology: Workers, Local Community, Value Chain and Customers. No other additional groups of people have been identified in the literature reviewed or the experts consulted to potentially be impacted by the tourism packages.

Workers are those who operate in a specific industry to deliver a valuable product or service. Companies and facilities have a great influence on the overall Workers’ wellbeing, starting with remuneration but also in terms of working conditions and motivation. It is also important for companies that Workers are healthy, educated, satisfied and committed to be able to perform their tasks at an optimal level. Therefore, it is essential to safeguard and enhance the status of employees for both their benefit and the smooth operation of the business.

Local Community reflects the group of people who can be indirectly impacted by a product which life cycle stages take place in the surroundings of the area they inhabit. It is important to have the acceptance and agreement of the community of the area in which an organization operates.

The Value Chain stakeholder group is significant since its primary function is to provide high-quality components for the product or service in issue. Value Chain actors in this case refer to the suppliers providing food and beverages, linens and amenities, maintenance and repair, etc. to the accommodation, food, activities and transportation service providers of the tourism packages. Building solid relationships with suppliers based on satisfaction and trust is crucial.

Customers, who in this case are the Tourists, are important since businesses rely on them to generate demand for their goods. Tourists may be impacted from several product-related viewpoints, including security and transparency as well as accessibility and pricing.

Social Topics, Indicators, Performance Indicators and Reference Scale

In relation to stakeholders, the social topics are the key social issues for each group of people that can be affected in a positive or negative way as a consequence of the development of one or more life cycle stages of the product or service. The most relevant socially significant aspects on which products and services can affect stakeholder groups need to be identified for each particular system, in our case a tourism package, by carrying out a materiality assessment. The prioritization of these most relevant aspects should not be based on intuition but using tools as literature, databases and stakeholders and experts’ consultation. In the present study, a first baseline of 19 social topics was created by crossing over and adapting the categories that the UNEP/SETAC Methodological Sheets and the PSIA Handbook propose with several tourism specific guidelines and studies (European Commission 2016 ; GSTC 2016 ; WTO 2004 ).

To assess the impacts of the tourism packages with regard to the different social topics identified for each stakeholder group, a set of indicators must be developed. Indicators can be qualitative, quantitative or semiquantitative and should be useful for judging in a consistent way the state of a specific condition. The construction or selection of these indicators cannot be made arbitrarily and should be adapted to the individual case without compromising the comparability of results. Even though there is no standardized method to do it, practitioners should be able to justify the procedural choices that brought them to a determined point. In this study, a multi-methodological iterative approach is adopted to identify, adapt and develop relevant indicators. In a first step, several generic S-LCA standards and tourism specific guidelines and past studies were consulted as the European Tourism Indicator System (ETIS), the Global Sustainable Tourism Council Criteria (GSTC), the Indicators of Sustainable Development for Tourism Destinations (ISDTD) and the Sustainable Development Goals (SDGs). This initial screening allowed us to list 75 indicators that were adequate for addressing the different social topics. From this set of 75 indicators, the ones that were not measurable, practical or were overlapping in some respects with others were removed. This adjustment reduced the set of indicators to 45 indicators for 19 social topics that can be consulted in Table S1 of the Supplementary material 1 . The DESTIMED PLUS project experts, comprising a diverse group of professionals from universities, regional authorities, PA agencies, international association, sustainability organizations, tourism institutes, service providers, data collectors and other key local stakeholders from the LEC, found the initial list of 45 indicators to be impractical, necessitating its reduction. The group’s key affiliations included the Government of Catalonia’s Department of Territory and Sustainability (Spain), Institute for Tourism (Croatia), Fundació Universitària Balmes (Spain), Development Agency for South Aegean Region Energeiaka S.A. (Greece), WWF Mediterranean (Italy), Corsican Tourist Agency (France), Autonomous Region of Sardinia — Department for Environment (Italy), IUCN Mediterranean Centre for Cooperation (Spain), Region of Crete (Greece), National Agency of Protected Areas (Albania), Conference of Peripheral Maritime Regions of Europe (France), Regional Ministry of Agriculture, Livestock, Fishing and Sustainable Development of Andalusia (Spain), Global Footprint Network (Italy) and Regione Lazio (Italy), among other local entities and individuals. To streamline the indicators, the experts participated in a survey, rating and commenting on each indicator. This process, guided by the survey results and practical considerations, resulted in a refined list of 16 indicators covering 12 topics (Table 1 ). The rationale for excluding certain indicators from the final selection is detailed in Table S2 of the Supplementary material 1 .

For each indicator, a properly defined reference scale is developed. Reference scales are necessary to interpret the results and estimate the significance of the social impacts associated with products and services. The PSIA methodology suggests a 5-point numeric scale that goes from − 2 to + 2, as can be seen in Fig. 4 . Positive impacts are also considered in the assessment, so compliance beyond basic requirements is acknowledged and promoted. The meaning of each range of the scale should be clearly detailed for each indicator. Reference scales are constructed based on legislations, standards, non-binding guidelines and the sectors best in class and thought to be adaptable to each country’s regulations. For example, the reference scale for the indicator “% of jobs in tourism that are seasonal” that points < 15% of seasonality as an ideal performance and > 45% as a non-compliant performance is built based on data from the WTO for workers’ seasonality in European countries’ tourism sectors. The values chosen represent the second maximum and minimum seasonality % among the 10 countries for which information was available. Figure 5 shows the reference scale for the indicator “Partnerships involving the local community” as an illustration of a qualitative case and the reference scales for the rest of the indicators can be consulted in the Supplementary material 2 . Simultaneously, a set of performance indicators is proposed for each indicator because of its usefulness to give a guideline on the type of data that needs to be collected to correctly assess each indicator and its support in determining the score achieved, from the reference scale, by the system under study. Not all indicators, especially those that are quantitative and the outcome is directly correlated with a score on the reference scale, require performance indicators to be appropriately evaluated. Performance indicators for qualitative indicators, as the ones presented as an example in Fig. 5 , are created in this study, and the description of the 16 indicators’ reference scale and performance indicator can be consulted in Table S2 of the Supplementary material 1 .

Generic reference scale to assess the social performance

Example of a social indicator used on the impact assessment of tourism packages

3.4 Results’ interpretation

For each tourism package, results are presented aggregated for confidentiality and practical reasons. Equation (i) calculates the arithmetic mean of each indicator scoring for each service provider. The variables n and m represent subsets of the total indicators and suppliers, respectively. Specifically, when calculating the average for all indicators and/or suppliers, n and m attain their maximum values. In any other scenario, the scoring will reflect a subset of the overall indicators or suppliers involved in the calculation. Weighting of indicators is completely avoided in this case study.

in which SC is the scoring, that corresponds to the arithmetic mean of each indicator for each service provider. I ij is the result of an indicator i for one service provider j . n is the number of indicators concerning each specific scoring aggregation. m is the number of service providers concerning each specific scoring aggregation.

3.5 Methodological limitations

The methodology developed, initially focused on eco-tourism service providers in the Mediterranean, has a notable limitation in its gate-to-gate analysis, overlooking broader upstream and downstream social impacts in areas such as transportation from origin to destination that can have social impacts as for example on the topic of community dynamics. Although this focus has allowed for detailed insights within this specific context, the methodology’s design inherently allows for adaptability to other tourism sectors and regions. Future enhancements are envisioned to tailor indicators to different local contexts and business types, thereby broadening its applicability. The methodology may not fully capture all stakeholder perspectives, for instance, in the case of indigenous populations and local inhabitants, while our indicators primarily focus on aspects related to the actions of service providers, such as partnerships, the local workforce, local suppliers and monitoring residents’ perceptions, we may be underrepresenting the direct perspectives of the local community. This highlights the need for more inclusive engagement of stakeholders in the topics and indicators selection and development in subsequent adaptations. In our attempt to provide a comprehensive set of topics and indicators, it is acknowledged that we may not have captured or addressed all relevant cause-and-effect mechanisms that can impact stakeholders, as for example aspects like supply chain transparency that require greater emphasis in future updates to provide a more comprehensive view of the social impacts of tourism.

Additionally, the nuances of real-life events are grossly oversimplified when using 5-point scales. The fact that the scales read − 1 and -2 as regular numbers presents a challenge. The logical deduction is that − 2 is twice as harmful as − 1; however, this is obviously not always the case. Additionally, when aggregating results, positive and negative values balance each other out leading to a neutralization. To address this, it is crucial to focus on a detailed interpretation of disaggregated results, with a particular emphasis on discussing extreme values that might otherwise be overlooked or masked.

4 Case study: the DESTIMED PLUS approach for ecotourism packages and its 9 protected areas

The methodology presented in this study is specifically designed to be applicable to a wide range of tourism products, considering in its boundaries general components of a package (Accommodation, Food&Drinks, Mobility and Activities), addressing overarching topics and stakeholder groups that are relevant to the global sector and using as a benchmark worldwide consensus concerning the direction that the tourism sector should take to guarantee a sustainable development. However, it has been tested in the framework of the DESTIMED PLUS project, a Mediterranean transnational cooperation project taking place from 2019 to 2022 that built on the findings of the EU-funded Interreg MED DESTIMED project and tested and evaluated a customized approach for the development, management, monitoring and promotion of ecotourism products in Mediterranean PAs. The primary difference between the DESTIMED and DESTIMED PLUS approaches in terms of the methodology is that the latter adds social and governance sustainability to the already existing set of environmental, conservation and quality considerations. Therefore, the establishment of a monitoring strategy and procedure to evaluate the social sustainability of the ecotourism packages is the main goal of this research.

In the context of this study, an ecotourism package or product is defined as a low-impact travel schedule that is customized to the area and its context, with specific activities and services planned day by day and delivered by local guides and suppliers. The DESTIMED PLUS project consolidated a system of 9 PAs in six Mediterranean countries, including Albania, Croatia, Greece, France, Italy and Spain, and engaged them in the establishment, design and monitoring of premium ecotourism packages in their respective regions. The formation of a LEC in each PA intended to serve as the central organization and was integrated by the PA management body, private stakeholder groups involved in local tourism and other stakeholders with an interest in tourism. The LECs facilitated the creation of packages through iterative and participatory processes.

Even though there is a large heterogeneity between packages because of the different geographical locations, there are some commonalities: the target market is an international tourist; the size of the group fluctuates around 10 people; the duration is 5–7 days and 4–6 nights, including conservation and local cultural activities; and all packages are designed to take place in shoulder season, the travel period between peak and off-peak seasons. Key facts of each package are described in Table 2 .

5 Results and discussion

Tables 3 and 4 show the results, for the 2 testing rounds (R1 and R2), of the application of the social assessment approach proposed in this paper to the 9 tourism packages developed under the DESTIMED PLUS project. Considering that − 2 indicates the lowest performance, 0 represents a compliant performance, and + 2 signifies the highest performance; the results vary from − 0.84 to 1.25 in the first round (R1) and − 0.68 to 1.33 in the second round (R2). Notably, the highest performance in both rounds is achieved by La Garrotxa (Spain) tourism package. Out of 9 packages, 6 managed to improve the social performance between R1 and R2. The greater social performance improvement is achieved by the Porto Conte tourism package (− 0.07 in R1 to 0.45 in R2).

The following sections further discuss the results for all the packages with regard to the various social topics of each stakeholder group under study. The tourism packages show an overall average higher social performance for the Tourists stakeholder group and the lower social performance is found for the Value Chain, but an overall greater improvement between R1 and R2 of 0.17 is achieved for this last one. The average results regarding Workers and the Local Community fall between the compliant and intermediate positive performance for both testing rounds.

The results obtained from the social assessment of the tourism packages and the capacity to enhance the social performance through the process followed in this research are not only linked with the level of management that service providers execute but could also be associated with the endemic social and socio-economic issues that a region or a country faces. It is possible to discover some intriguing connections if we look closely at the outcomes of the assessment of the tourism packages in relation to the various topics under consideration and take the geographical component into account, so this subject has been also expanded upon in the suceeding lines.

5.1 Workers

For the impacts on Workers, most of the packages are consistent with the standards or national average requirements and even are proactive in some cases. Overall results show an intermediate positive performance for Cres-Lošinj (Croatia), La Garrotxa (Spain), Bonifacio (France) and Pontine Archipelago (Italy) packages and a compliant behaviour for the others. Between the 2 testing rounds, significant improvements have been achieved by Porto Conte (Italy) and Divjake-Karavasta (Albania) packages. Among the three social topics corresponding to Workers, average results show a higher performance for the topic Working conditions, followed by the Training topic and lastly the Health&Safety topic. A general improvement of the social performance of the tourism packages is achieved for the three topics.

Concerning topics (Fig. 6 ), for Working conditions, all packages comply at least with the set basic requirements. La Garrotxa (Spain) stands out for its positive practices since it claims to have a plan in place to raise awareness and publicly report issues associated with forced and illegal labour, that the % of seasonal employers is less than 15%, and also that all Workers are paid better than the living wage in the country plus they receive additional social benefits on top of what is provided by the government. For the Pontine Archipelago (Italy) package, it is worth highlighting the positive performance regarding working time since they acknowledge that overtime is completely voluntary for Workers and prove to offer an economic compensation better than an ordinary hour or alternative compensation schemes per petition of the Worker (e.g. time-off). The Divjake-Karavasta package corrected the performance regarding working hours in R2 by proving that overtime does not exceed the maximum stipulated by law. Albania’s tourism sector has a deficient performance with regard to the average weekly working hours as the value (50 h a week) is way higher than the national average (41 h a week) (ILO 2021a ). A persistent culture of overtime can be indicative of a lack of strategic planning and proactive management practices and at the same time that suggests poor work-life balance policies and a disregard for employee well-being. Addressing these issues is crucial to ensure the well-being of employees, optimize productivity and establish a healthy and sustainable work environment. The Cabo de Gata (Spain) package performance regarding the seasonality of jobs (35–45% of the employers with temporary contracts) can be related with the fact that in Spain more than 1 in 4 job positions is covered by a temporary employer (OECD 2021 ). On the other hand, it can also be related with a broader concern of seasonality, which refers to the fluctuation in demand and activity levels within the tourism industry based on seasonal patterns. Addressing the seasonality issue and spreading tourism demand throughout the year is key to achieve a balanced and diversified economy, ensure better employment conditions, improve customer and community satisfaction and promote a resilient and competitive tourism industry. Finally, Albania and Greece are more predisposed to have an inferior social performance related with forced and illegal labour and also wages since these countries have, in the first place, a higher rate of estimated proportions of people living in modern slavery (6.87 and 7.91, respectively) (Walk Free 2021 ), and lastly, tourism average wages per month in Albania and Greece (273 and 783 USD) are lower or equal than the stipulated national minimum wage (288 and 773 USD) (ILO 2021b ). Forced/Illegal labour and fair remuneration are two closely linked critical concerns within the tourism industry that are due to a large presence of vulnerable workforce (including low-skilled, migrant, seasonal and disadvantaged workers), the seasonal nature of tourism, the significant presence of informal economy, the complexity of the supply chains, the absence of collective bargaining mechanisms and the lack of awarenes and enforcement among workers, employers, and consumers about labour rights and ethical practices. To ensure that the tourism industry provides decent work, it requires concerted efforts from governments, industry stakeholders and civil society to establish and enforce robust labour laws, promote transparency in supply chains, enhance awareness among workers and employers and foster a culture of responsible business practices.

Results of the social assessment of the tourism packages for the 2 testing rounds (R1 and R2) for the Workers stakeholder group

Most of the tourism packages under study are, at minimum, consistent with Health&Safety standards basic requirements. The Porto Conte (Italy) package improved the performance regarding Health&Safety in R2 as they provided sufficient evidence indicating compliance with standards and legislation and also that Workers have access to all the required personal protective equipment. It is essential to go beyond the minimum to create a safe and secure working environment in tourism due to the unique risks and challenges it presents. Proactive approaches to mitigate these risks can include risk assessment and management practices, training and education, accessibility to personal protective equipment, work-life balance promotion, emergency preparedness and establishing reporting mechanisms.

In relation to the topic Training, the major part of the packages disclouse a positive perfomance as the hours of training provided exceed the sectors minimum training hours established by each country-sector agreements or, in its absence, are higher than 20 h per year, that is the amount of training per Worker mandatory in Spain that has been taken as a baseline. Karpathos (Greece) package underperformance for this topic in both testing rounds can be related with the generalised low predisposition of Greek businesses to offer training (21.7% of all businesses) (European Commission 2021 ). The Divjake-Karavasta package improved the performance in this regard in R2 by increasing the number of hours of training provided. Training plays a crucial role in ensuring the professional development and competence of workers, but investing in training not only benefits individual workers but also contributes to the overall competitiveness and sustainability of the tourism industry. Effective training programs for tourism employees can help workers acquire new skills and knowledge to be able to provide high-quality services and meet the evolving needs and expectations of tourists, provide opportunities for personal growth and access better employment opportunities, stay updated with the latest industry trends, technologies and best practices fostering innovation and enabling businesses to adapt to changing market dynamics and employee retention rates as workers feel valued and invested in.

5.2 Local Community

The overall performance of the packages toward Local Community is in line with the requirements and actively promoted in most cases. An intermediate positive performance has been achieved for all packages, apart from Divjake-Karavasta (Albania), Karpathos (Greece) and Bonifacio (France) that performed in compliance with basic conditions. Even though 5 out of 9 tourism packages improved the general performance towards this stakeholder group, the results in Fig. 7 show a notable progress between the two assessment rounds for the Porto Conte (Italy) and the Pontine Archipelago (Italy) tourism packages. The social topic for which the aggregated results show a better performance is Local employment as opposed to the topic Well-being. The results for the topic Local capacity building were improved for 8 out of 9 packages. For the Community access topic, 7 tourism packages enhanced the social performance.

Results of the social assessment of the tourism packages for the 2 testing rounds (R1 and R2) for the Local Community stakeholder group

In relation with the various topics (Fig. 7 ), for Local capacity building, all packages performed at least in accordance with the established baseline for compliance. The performance of the Divjake-Karavasta (Albania) package is a consequence of the lack of partnerships and/or projects with the community. To improve the performance, it is required to implement some activities together with the community and establish a regular dialogue with them.

An exemplary conduct has been achieved by the majority of the packages for the topic Local employment. This fact is confirmed by the packages service providers employing over 95% of the workforce from the local talent pool and is strengthened by the commitment of the businesses with the skills development of the community in connection to the future needs for staffing. Also, the studied packages on average purchase more than 75% of the supplies locally. Using local suppliers in the tourism industry is of paramount importance for promoting local employment and fostering economic development within the host communities by creating employment opportunities, stimulating economic circulation within the community for a more extended period, empowering the community by providing them with a sense of ownership and pride while supporting the preservation of local traditions, crafts, cuisine and cultural practices, reducing the carbon footprint associated with transport and logistics and fostering social integration between tourists and the local community.

The social behaviour of ecotourism package service providers concerning the well-being of the local community stakeholder group is notably inadequate. A critical aspect of compliance in this context is the establishment of a robust system for monitoring residents’ perceptions of tourist activities. This generalized low performance regarding this social aspect may be attributed to its relatively low ranking on the list of concerns for tourism service providers, potentially indicating a gap in understanding or prioritizing the wellbeing of the local community in their operations. La Garrotxa (Spain), Cabo de Gata (Spain) and Pontine Archipelago (Italy) obtained a positive score since in addition to have a monitoring system in place, they also plan to take actions for improvement based on the information gathered through the monitoring system.

The results for the Community access topic that addresses the extent to which a company or facility integrates in its offer products and services for the Local Community are in general consistent with the essential requisites and positive for the majority of the packages. This scoring shows that the tourism service providers involved in the development of the packages plan and implement projects to ensure the access of the Local Community to tourist sites and other activities, plus the local language is used by the tourism businesses. Prioritizing the inclusion of the local community in activities and sites is crucial in tourism areas to ensure a harmonious coexistence between residents and tourists. This may be done by including activities that are important to the community, making sure they are affordable and accessible and preserving their cultural heritage (e.g. the local language).

5.3 Value Chain

The overall Value Chain performance of the packages has been improved in 6 out of 9 tourism packages between the 2 testing rounds. The Porto Conte (Italy) package registered a relevant social progress in R2. An averaged higher performance has been noted for the topic Supplier relationship compared with the results obtained for the topic Integration of sustainability on supply chain.

The performance on the Integration of sustainability on supply chain topic (Fig. 8 ) does not meet the minimum conditions for the cases of Divjake-Karavasta (Albania), Karpathos (Greece) and Cabo de Gata (Spain) since no criterion for suppliers’ selection based on environmental and social aspects is in place. Besides developing a criterion for supplier selection based on sustainability facts, the performance can be further improved by prioritizing suppliers with sustainability reports and/or certifications. Albania and Greece have a small proportion of participants in schemes as for example the UN Global Compact (United Nations 2021 ) in proportion for each billion USD of GDP compared to the other countries, but out of the 6 studied countries Spain is the one with the higher number of adhesions to this specific framework.

Results of the social assessment of the tourism packages for the 2 testing rounds (R1 and R2) for the Value Chain stakeholder group

The Supplier relationship topic results have ended up being more than just compliant with basic requirements with most of the packages showing a positive performance for this specific issue. Porto Conte (Italy) tourism package declared in R1 to have plans under development to comply fully with the obligations with regard to payments to suppliers. However, in R2, this package improved the performance and informed that most (> 85%) of the payments to suppliers were made not only within the period established by law, but also with the agreements made with the suppliers. The Divjake-Karavasta package results in both testing rounds can be linked to the fact that most payments were not aligned with the requirements for compliance. Payment to suppliers is crucial for maintaining financial stability, building trust and collaboration, supporting the social well-being of the value chain and enhancing the reputation and relationships with suppliers. This can contribute to a more ethical, sustainable and prosperous value chain, benefiting both suppliers and the broader community.

5.4 Tourists

Regarding the effects of the packages on the stakeholder group Tourists, results show a scoring going from compliant to ideal in most cases. An overall averaged relevant improvement was not perceived for this stakeholder group between the 2 rounds of the assessment and no major changes happened in any case study. Among the three topics assessed in this regard, the higher average performance of the packages corresponds to the Feedback mechanism, the lowest to the topic Quality of the service, and the topic Health&Safety falls in between the results of the 2 other topics.

For the topic Quality of the service (Fig. 9 ), the performance for 3 of the packages is worse than the fixed criterion. Those packages acknowledge not meeting the minimum adaptations regarding accessibility to people with disabilities. Pontine Archipelago (Italy) package claimed to provide products and services that can be mostly accessed by people with disabilities and, when this is not the case, there is the possibility to offer accessible alternatives. Coinciding with 2 out of 3 packages with a lower score, Albania and France are the countries with a smaller number of sites covered by the ISO 9001:2015 (ISO 2021 ) certificates per billion USD of GDP. ISO 9001:2015 specifies requirements for a quality management system when an organization needs to demonstrate its ability to consistently provide products and services that meet customer and applicable statutory and regulatory requirements. Italy is the country, out of the 6 under study, with a higher number of companies and facilities covered by this ISO certification. Offering services to people with disabilities is important for promoting inclusion and equal participation at the same time that expands the customer base and complies with legal and ethical obligations.

Results of the social assessment of the tourism packages for the 2 testing rounds (R1 and R2) for the Tourists stakeholder group

The conduct in relation with the topic Health&Safety of customers generally is in accordance or, in most cases, superior than the stipulated since most packages affirm to have a risk management plan in place that is periodically reviewed and that the Health&Safety metrics show a continuous improvement.

Most of the packages service providers have a feedback mechanism in place and, as a consequence, the results show a common proactive behaviour towards the topic Feedback mechanism. The majority of the packages also plan and implement actions based on the results obtained from this monitoring system to improve the performance towards customers.

5.5 Other perspectives on the findings

While the PSIA methodology used in the present research proposes to break down results by stakeholder group and social topic, to analyze results by category of service provider can introduce complementary information, indicating which activity drives a higher preassure on people general wellbeing (Table 5 ). Considering the average results of the 9 tourism packages, the social performance of Mobility is the worse among the 4 service providers categories. The most outstanding perfomance corresponds to the Accommodation category. Out of the 4 categories, social improvements have been registered for Accommodation, Food&Drinks, and Activities categories. The greater progress between the 2 testing rounds is achieved by Accommodation providers.

In general terms, Accommodation providers of the packages under assessment seem to be proactive in relation with their social performance and tend to implement actions that bring positive effects on people. The main negative issues can be related with the companies or facilities limited capacity to hire from the local pool talent or to set the conditions to make this happen in a near future. Being able to do so is important since it signals that you are investing in the areas’ growth, the wellbeing of citizens and the health of local economy, enabling communities to help themselves. Additionally, Accommodations seem to be lacking of systems to monitor the perception of the residents with regard to the tourism development in the area. Many localities think that the growth of tourism has a variety of detrimental effects on their culture and way of life, but at the same time the benefits of tourism to a town can also be significant. It is impossible to separate the social, cultural and economic effects of tourism on a host community, and different community groups and people may have different ideas about what is good for the neighborhood and what is bad. Communities might not get a chance to express their desire for change or decide against it before it occurs, so there must be agreed-upon objectives for community-based tourism if it is to be sustained.

The Food&Drinks group does not appear to be as committed to improving their capacity to offer advantages to people as the Accommodations group is. The primary concerns, in this regard, also include the development of monitoring frameworks to gather information and take action regarding residents’ perception on tourism. A lack of responsibility from Food&Drinks service providers in relation with the selection of their suppliers considering environmental and social sustainability aspects has been found for various case studies. Supply chains can be responsible for a big part of a company or facility impacts, therefore organizations can make a big difference by properly managing their network.

Relating with Activities service providers, the situation is similar as for Food&Drinks regarding social impacts, and as well their main point of conflict is associated with the presence of selection criterion for suppliers based on sustainability considerations. On the other hand, for the Mobility providers in addition to issues related with the residents’ perception of tourism impacts and the sustainability criterion for supplier selection, organizations could benefit also from a higher engagement with the Local Community through the development of partnerships. Community involvement is the power to bring positive, measurable change to both the communities in which you operate and to your business and can include financial actions but also other kinds of collaborations. The accessibility to people with disabilities could also be improved by Mobility providers and take into consideration other needs besides wheelchair accessibility. Finally, transport companies should more often place mechanisms for customers to provide feedback since it is important to improve the customer experience and overall customer satisfaction levels. It is worth noting that a number of data gaps were evident solely for the Mobility providers, and a lack of data is frequently correlated with an opaque supply chain.

6 Conclusions

This paper has successfully bridged the gap between the available studies addressing tourism social issues and the lack of a scientific framework that enables evaluation and informed decision-making. The customized PSIA methodology for tourism products is an important first step in determining the applicability of the PSIA method and S-LCA approach in the tourism industry.

The results confirm its appropiateness in quantifying and qualifying the social impacts of tourism packages and that at the same time typical input data issues have been overcomed by obtaining data directly from service suppliers. It has also been proved to be effective for enhancing the social performance of tourism service providers since it was achieved for 6 out of 9 tourism packages throughout an iterative process after providing improvement plans to all the service providers and LECs based on the results of the first assessment. The guidelines for benchmarking enable the production of valuable recommendation for decision-making, highlighting performance problems and improvement potentials. Furthermore, the assesment allows to establish crucial connections between social aspects of the tourism packages with endemic social issues faced by the regions, thereby fostering the generation of important insights and knowledge.

In our assessment, the highest benefits from the tourism packages are seen by Tourists, notably in feedback mechanism structures. Conversely, the Value Chain stakeholders experience the lowest benefits, primarily due to the absence of sustainable practices in supplier selection. For Workers, the most significant area for improvement lies in the Health&Safety, while for the Local Community, it is in addressing the residents’ perception of tourism’s impact. In the action plan to enhance overall performance, it is essential for the Value Chain stakeholders to focus on integrating sustainability criteria in supplier selection. Furthermore, considering the suboptimal performance of the majority of ecotourism package service providers in monitoring the Local Community’s perceptions of tourism, it becomes imperative to continuously assess the wellbeing of the local community in the context of tourism activities. For Tourists, the action plan must prioritize accessibility to people with disabilities to the tourism services and products. Regarding Workers, it is important to implement a robust Health&Safety policy that not only complies with regulations but also exceeds them. These strategic actions and all the other actions discussed in this paper are crucial for promoting a sustainable approach in tourim development.

The key component of any S-LCA is the identification of pertinent social topics and the use of appropriate indicators to evaluate them. The set of indicators and social topics proposed in this study can serve in data collection and as starting point to reach the creation of generalized approaches to assess the social impacts of tourism products. Future studies can expand on the identification of topics and the creation of indicators for the social assessment of sectors that form integral parts of the upstream and downstream components of the system thus enabling a comprehensive assessment that transcend the gate-to-gate approach of this study.

Data availability

The datasets generated and/or analyzed during the current study are not publicly available due to the sensitive nature of the information they contain, which could compromise the privacy of research participants. To mitigate the risk of disclosing confidential information, results have been presented in an aggregated form.

Abbreviations

Life cycle assessment

Local ecotourism cluster

Protected area

Product social impact assessment

Social life cycle assessment

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Innovation, science and economic development canada's 2024–2025 departmental plan, on this page, from the minister, companies, investment and growth.

Science, Technology, Research and Commercialization

People, Skills and Communities

Internal services, future-oriented condensed statement of operations, human resources, corporate information, supplementary information tables, federal tax expenditures, definitions.

It is our pleasure to present the 2024–25 Departmental Plan for Innovation, Science and Economic Development Canada (ISED), which lays out the key priorities the Department is working to advance for the benefit of all Canadians.

In 2024–25, ISED will continue working with the Innovation, Science and Economic Development Portfolio and other federal partners to bolster Canadian innovation by fostering competitive, sustainable and inclusive economic growth.

As Canada transitions to a net-zero economy, ISED has entered into special agreements with industry partners such as NextStar Energy, Volkswagen PowerCo, and Northvolt Batteries North America to increase Canada's production of lithium battery cells and electric vehicles (EVs). To help ensure Canada's economy remains a competitive destination for investment following the introduction of the Inflation Reduction Act in the United States, these unprecedented agreements will advance the country's position as an EV manufacturer. To complement these efforts and support Canada's Critical Minerals Strategy, the Strategic Innovation Fund (SIF) will also invest in projects that will prioritize the manufacturing, processing, and recycling of critical minerals.

Recognizing the growing importance of artificial intelligence (AI), ISED will seek to accelerate the adoption and commercialization of AI by investing in the Pan-Canadian Artificial Intelligence Strategy (PCAIS). In 2024-25, the PCAIS will provide funding of up to $20 million to institutions in across the country to advance AI innovations and research. Further advancing the PCAIS, ISED's Advanced Manufacturing Global Innovation Cluster, led by Next Generation Manufacturing Canada, will provide $19 million in funding for 12 AI projects in Canada's manufacturing sector. These projects are expected to enhance the competitiveness of Canadian manufacturing through the commercialization of Canadian AI innovations, while increasing manufacturing capacity in the country.

The new National Quantum Strategy (NQS), in turn, will continue to ensure Canada's leadership in quantum technology. Under the NQS, the Department, in collaboration with key partners including the regional development agencies, will continue to support the development of Canada's quantum research and the commercialization of quantum-ready technologies through the Quantum Industry Canada program.

The Department's Universal Broadband Fund (UBF) will continue to support the expansion of broadband, connecting underserved rural, remote, and Indigenous communities with access to high-speed Internet. The Government of Canada, in partnership with other orders of government and private sector stakeholders, has leveraged UBF to secure high-speed internet access for 93.5 percent of Canadian households and is on track to exceed its goal of connecting 98 percent of Canadian households by 2026 and 100 percent by 2030.

Supporting fundamental research continues to be a priority for ISED. The Department is working to promote a strong, vibrant science and research community across Canada, anchored by a diverse pool of world-class researchers. Through the Biomanufacturing and Life Sciences Strategy, ISED is looking to grow a strong, competitive domestic life sciences sector, with cutting-edge biomanufacturing capabilities, which will create good jobs for Canadians and ensure Canada is prepared for future pandemics and health emergencies. Specifically, the Department is investing $225 million in AbCellera—the Canadian biotech company that helped develop the first antibody therapy treatment for COVID-19—to fund research and clinical trials projects, and to build a new manufacturing plant that will produce anti-body therapies for clinical trials.

In addition, scientific excellence will be supported through the Strategic Science Fund. Contribution agreements are being finalized with a diverse portfolio of organizations selected for funding by an independent expert panel. The funding will support of the organizations in advancing program objectives to support research, talent, knowledge mobilization and science culture. To help post-secondary institutions maintain and enhance security posture and support them in identifying, assessing, and mitigating risks to research security, ISED will continue to fund the Cybersecurity Initiatives Program.

In 2024–25, ISED will continue to support small and medium-sized enterprises (SMEs) —the backbone of the Canadian economy. In addition to the Department's ongoing support for women-owned and Black-owned businesses—through their respective entrepreneurship strategies, ISED will continue to eliminate barriers to access for under-represented entrepreneurs by providing support through the 2SLGBTQI+ Entrepreneurship Program. The program will deliver critical business advice, create resources, provide mentorship, and will collect the data needed to better understand the needs of 2SLGBTQI+ entrepreneurs and the challenges they face. Additionally, the Canada Digital Adoption Program will continue to support SMEs to modernize their operations and adopt e-commerce technologies, bolstering their growth and competitiveness.

Finally, ISED will support tourism in Canada by delivering on the Federal Tourism Growth Strategy, which includes targeted actions to help the Tourism sector recover from the pandemic and grow the Indigenous tourism industry. Specifically, the Department will strengthen economic reconciliation through the $20 million Indigenous Tourism Fund, which will support the scale-up of signature Indigenous tourism experiences and help build the capacity of micro and/or small Indigenous tourism businesses.

Funding from Budget 2023 will support additional tourism programming including $50 million to Destination Canada to attract major international conventions, conferences, and events to Canada; and $108 million to the Regional Development Agencies to support communities, small businesses, and non-profit organizations in developing local projects and events. With the goal of positioning Canada as a premier outdoor, nature-based destination, ISED will also leverage the country's natural landscape and network of trails in developing a new Trails Tourism Strategy.

We invite you to read this report to learn more about how ISED, along with its portfolio partners, is working with Canadians of all backgrounds and in all regions—urban and rural—to position Canada as a leader in the global economy.

The Honourable François-Philippe Champagne Minister of Innovation, Science and Industry

The Honourable Mary Ng Minister of Export Promotion, International Trade and Economic Development

The Honourable Soraya Martinez Ferrada Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

The Honourable Gudie Hutchings Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency

The Honourable Rechie Valdez Minister of Small Business

Plans to deliver on core responsibilities and internal services

Core responsibilities and internal services, description, quality of life impacts, results and targets, plans to achieve results, snapshot of planned resources in 2024-25, related government priorities, program inventory.

Provide support to help grow small, medium and large Canadian businesses into globally competitive, high-impact firms; ensure a fair and competitive marketplace; promote the conditions that support competitive prices and product choices, including in the telecommunications sector; simplify government programming, promote efforts to reduce red tape for businesses, putting in place the right conditions for market-driven innovation and promoting growth and an economy that works for everyone; reduce barriers to the movement of goods, services, capital and labour; grow Canada's tourism sector.

The Companies, Investment and Growth core responsibility is most closely related to the "Prosperity" domain of Canada's Quality of Life Framework, but it also touches on the "Good Governance" and "Environment" domains.

The "firm growth", "gross-domestic product per capita", and "investment in in-house research and development" indicators under the "Prosperity" domain are directly related to this core responsibility, for which the key outcome is to provide support to small, medium and large Canadian businesses to innovate and grow. To assess this outcome, ISED tracks the revenue growth rate and value of business expenditures on research and development (BERD) of the firms it supports.

Additionally, the "Good Governance" domain measures Canadians' confidence in institutions. Several entities under ISED's Companies, Investment and Growth core responsibility, including Measurement Canada, the Office of the Superintendent of Bankruptcy, Corporations Canada, the Competition Bureau and the Canadian Intellectual Property Office, focus on fostering conditions for market-driven innovation and creating a fair and competitive marketplace for businesses, investors and consumers.

Under the "Environment" domain, the "greenhouse gas emissions" indicator relates to the following departmental results indicator: "annual incremental reductions in GHG emissions attributable to ISED-supported technologies".

The following tables show, for each departmental result related to Companies, Investment and Growth, the indicators, the results from the three most recently reported fiscal years, the targets and target dates approved for 2024–25.

Table 1: Indicators, results, and targets for departmental result: Canada has a clean and sustainable economy.

Table 2: indicators, results and targets for departmental result: canadian businesses and industries are innovative and growing., table 3: indicators, results and targets for departmental result: businesses, investors and consumers are confident in the canadian marketplace, including the digital economy..

The financial, human resources and performance information for ISED's program inventory is available on GC InfoBase Footnote i .

Departmental Result: Canadian businesses and industries are innovative and growing

Innovation and adaptation on the part of Canadian enterprises—from start-up to scale-up—are vital to success in job creation, economic productivity, and trade. To spur creativity in support of Canada's economic recovery, growth, and competitiveness, ISED will continue to work closely with entrepreneurs, businesses and industry sectors to build on areas of traditional Canadian advantage while also capitalizing on emerging opportunities. Innovation and adaptation on the part of Canadian enterprises—from start-up to scale-up—are vital to success in job creation, economic productivity, and trade. To spur creativity in support of Canada's economic recovery, growth, and competitiveness, ISED will continue to work closely with entrepreneurs, businesses and industry sectors to build on areas of traditional Canadian advantage while also capitalizing on emerging opportunities.

Growing Canada's innovation ecosystems

Innovation Canada Footnote ii offers programs and services to help Canadian businesses innovate and grow by accessing client-centered, simplified support to advance research and the development and commercialization of innovative technologies and products. Flagship programs like the Strategic Innovation Fund (SIF), the Global Innovation Clusters (GICs) and Innovative Solutions Canada are instrumental in fostering industrial innovation and growth while advancing other governmental priorities like reducing greenhouse gas emissions (GHG). With renewed funding of $750 million from Budget 2022, the five GIC's will continue their efforts to advance Canada's innovation ecosystems, promote investments in innovation and commercialization, expand their national and global presence, deepen their collaborations, and support the growth and scale-up of Canadian small and medium-sized enterprises (SMEs). In 2024–25, the GIC program will increase industry co-investments by raising the industry match ratio to $1.50 for every dollar committed by non-GIC partners by 2028. In addition, the program is expected to establish new collaborations involving funding partnerships for the Pan-Canadian Artificial Intelligence Strategy (PCAIS) and Canada's National Quantum Strategy. For instance, as part of the PCAIS, the Advanced Manufacturing Cluster Footnote iii launched the AI for Manufacturing funding challenge, calling on companies to submit project proposals focused on commercializing AI or machine learning solutions in manufacturing. As a result, NGen, the organization leading the Advanced Manufacturing Cluster, will provide $19 million in funding for 12 AI projects in Canada's manufacturing sector. These projects are expected to enhance the competitiveness of Canadian manufacturing through the commercialization of Canadian AI innovations while building manufacturing capacity in the country.

In 2024–25, SIF will continue to support industrial transformation and growth, building on its $17 billion in research and development (R&D) investments to ensure the long-term sustainability of Canadian businesses in key industrial sectors including automotive, critical minerals and batteries, life sciences, semiconductors, aerospace, natural resources, and agri-food.

Through the Net Zero Accelerator Initiative, SIF will support Canada's goal of becoming a leader in clean technologies and help advance Canada's commitment to achieving net-zero emissions by 2050. For instance, SIF will advance the development of the battery innovation ecosystem by providing funding for the construction of E-One Moli's new $1 billion battery manufacturing and R&D facility in British Columbia, to support the production of lithium-ion batteries for industrial and consumer applications. SIF will also invest in electric vehicle (EV) battery manufacturing projects such as those by Volkswagen PowerCo, NextStar Energy and Northvolt Batteries North America, which will help reduce GHG emissions, decarbonize the transportation sector and strengthen Canada's domestic manufacturing capacity. ISED's partnership with Northvolt, in particular, will support the construction of its new EV battery manufacturing facility in Quebec—a $7 billion dollar investment—that will produce some of the greenest batteries in the world given its low carbon footprint. These investments in clean technology solutions demonstrate ISED's ongoing work toward meeting Canada's ambitious emissions reductions targets and securing Canada's battery supply chain. Supported by these investments, Canada ranked first in Bloomberg NEF's 2023 Global Lithium-Ion Battery Supply Chain Ranking.

Under Canada's Critical Minerals Strategy, in 2024–25, SIF will use targeted funds to accelerate investments in critical mineral projects, specifically prioritizing advanced manufacturing, processing, and recycling applications. To meet the rising demand for critical minerals and related manufactured products, ISED's investments will increase the supply of responsibly sourced critical minerals, while promoting innovation and sustainable practices across domestic and global critical minerals value chains. Since Canada is a leading global producer of many minerals, including nickel, potash, aluminum and uranium, investments in critical minerals have the potential to spur economic growth and manufacturing capabilities both domestically and internationally. Through ISED's expected $551.3 million contribution to Umicore, a circular materials technology company, the federal government, in partnership with the Government of Ontario, will support Umicore's decision to build a new manufacturing facility in Loyalist Township, Ontario, to produce essential EV battery components using critical minerals such as nickel, lithium, and cobalt. This facility, the first of its kind in North America, will strengthen Canada's domestic EV and battery supply chain.

Supporting the industrial transformation of key sectors

Since March 2020, more than $2.1 billion has been invested in rebuilding Canada's vaccines, therapeutics and biomanufacturing capacity. In alignment with the Biomanufacturing and Life Sciences Strategy, ISED will support a $61 million project by Edesa Biotech—a biopharmaceutical R&D company focused on developing and commercializing novel clinical-stage drugs for autoimmune and inflammatory diseases, such as acute respiratory distress syndrome (ARDS). ISED is also investing through SIF to support a $119.3 million project by Pharmascience Inc. to expand its facility in Candiac, Quebec, by 2,500 square metres, increasing its capacity to produce sterile injectables. Both projects will be instrumental in increasing innovation in the life sciences sector, contributing to Canada's talent pipeline by creating new jobs, and developing world-class expertise and infrastructure to build a competitive biomanufacturing and life sciences industry.

Budget 2022 announced $30 million over four years to expand the CAN Health Network across Canada. By connecting health organizations with Canadian companies from coast-to-coast-to-coast, the Government of Canada's investment in expanding the CAN Health Network will support innovation in the health technology sector, grow businesses, create good well-paying jobs and generate prosperity for Canadians.

SIF will continue to provide targeted support to the aerospace industry—one of the most innovative and export-driven sectors in Canada, contributing close to $27 billion and more than 210,000 jobs to the economy. The SIF investment of $350 million to support the new Initiative for Sustainable Aviation Technology— a pan-Canadian, industry-led aerospace network focused on funding collaborative R&D projects with companies of all sizes across the Canadian supply chain—will help accelerate the green industrial transformation of the aerospace industry, generate high-value jobs, strengthen the sector's supply chains, and position Canada as a global leader in sustainable aviation.

Through the National Shipbuilding Strategy Value Proposition (NSS VP), the department will help ensure the long-term sustainability of the Canadian marine industry by requiring that shipyards with large vessel contracts support investments in three key areas—human resources development, technology investment and industrial development—that are equal to 0.5% of the value of the contracts they receive. For 2024–25, Irving Shipbuilding Inc. and Seaspan's Vancouver Shipyards have forecasted more than $41 million in combined NSS VP investments in Canada's marine industry.

Helping businesses navigate government support

Connecting businesses with government programs and supports at the federal and the provincial, and territorial level to facilitate growth and innovation remains a key priority for ISED. In 2024–25, ISED will liaise with government partners to optimize service provided through the Business Benefits Finder, a platform that uses a client-centred approach to streamline the process of connecting businesses with the services and programs they need to bolster their performance. ISED's Accelerated Growth Service, which helps entrepreneurs and businesses innovate and scale up through its advisory and growth services, will complement the Business Benefits Finder by assisting existing, innovative businesses in accessing government programs and services.

Similarly, the Global Hypergrowth Project (GHP) will support businesses in scaling-up and growing by convening various federal, provincial, and broader ecosystem partners to identify programming gaps and opportunities for Canadian companies. Announced in July 2023, the GHP will help businesses develop into anchor firms, which are responsible for creating business clusters and incubating other businesses, by assisting them in navigating complex regulatory regimes, expanding to new markets, and acquiring the right talent. To achieve these goals, eight Canadian businesses have been selected to receive tailored support through the project, including Clarius Mobile Health Corp. With help from the GHP, Clarius will be able to propel its growth and make its innovative portable hand-held ultrasound imaging device available to more clinicians around the world.

In 2024–25, ISED's national BizPaL office will continue supporting cross-jurisdictional partnerships focused on helping Canadian businesses find and access business licences and reducing the burden of duplication for businesses to meet regulatory, permitting and licensing requirements. The program will help users navigate Canada's regulatory landscape via an interactive artificial intelligence interface, improving access to timely, complete information and analytics through an Open Service Platform and the Service for Regulators project.

Increasing access to capital for Canadian businesses

ISED, through the Canada Small Business Financing Program (CSBFP), will continue increasing the availability of financing for Canadian small businesses looking to start up, expand, modernize, and innovate. In 2024–25, the CSBFP will gather information to support and inform a statutory comprehensive review report assessing the extent to which the program has met its goals over the last five years, including examining the provisions and operations of the Canada Small Business Financing Act . The report will propose recommendations to ensure that the CSBFP continues to adapt to meet the current economic conditions and future needs of small businesses.

As announced in Budget 2021, ISED's Venture Capital Catalyst Initiative (VCCI), managed by the Business Development Bank of Canada, will support innovation and job creation in Canada by increasing the availability of private sector capital for Canadian entrepreneurs with high-growth potential, particularly for those in the life sciences sector and those belonging to under-represented groups. VCCI will accomplish this through three streams: $350 million for funds-of-funds, a $50 million for supporting VC investments in life science technologies, and a $50 million for an inclusive growth stream dedicated to increase access to VC programs for underrepresented groups. In 2024–25, funding recipients for the second intake of the inclusive growth stream and will invest up to $25 million in five Canadian VC funds through this stream. Through VCCI's inclusive growth stream, ISED aims to advance diversity, equity, and inclusion in the Canadian VC ecosystem by providing additional capital to invest in innovative under-represented entrepreneurs.

Supporting a modern telecommunications network

As the demand for spectrum and telecommunications services continues to grow, ISED will continue to advance Canada's position as a global centre for innovation and world-class wireless infrastructure. In 2024–25, the department will launch a new Non-Competitive Local Licensing framework, offering 80 MHz of mid-band spectrum, which will provide users— including wireless Internet service providers, vertical industries, and Indigenous communities—with localized access to shared 5G spectrum.

With a commitment to fostering greater universal connectivity, ISED will implement a new Access Licensing Framework in 2024–25 to facilitate greater access to unused licence spectrum in rural and remote areas, including supporting the expansion of broadband services. Under this framework, ISED will also consult on and implement an Indigenous Priority Window, which will allow Indigenous-led businesses and Indigenous service providers access to spectrum that strengthens their Internet connectivity, improves access to emergency response services, and establishes reliable cell service.

Reinvigorating tourism in Canada

Building on the progress made last year, ISED will continue to implement new strategies to advance the long-term growth of the tourism sector. In 2024–25, under the Federal Tourism Growth Strategy (FTGS), the department will coordinate and promote measures to support the growth of Canada's tourism industry, particularly positioning Indigenous communities as attractive tourist destinations, by continuing to implement the $108 million Tourism Growth Program, through the regional development agencies, to deliver key tourism projects.

As part of the FTGS, ISED will collaborate with its federal, provincial, and territorial partners, industry stakeholders and Indigenous people to ensure that the needs of tourism businesses are being served. The FTGS is based on five strategic priorities: investing in tourism assets, embracing recreation and the great outdoors, partnering to grow Indigenous tourism, attracting more international events, and improving coordination through a Ministerial Tourism Growth Council. ISED will also provide $50 million to Destination Canada, with the expectation of hosting more business events in Canada and invest in maintaining Canada's network of trails and outdoor spaces through the Trails Tourism Strategy.

Indigenous tourism is a key segment of the industry that differentiates Canada as a premier tourist destination. ISED's continued support of this segment through the $20 million Indigenous Tourism Fund (ITF), announced in Budget 2022, will help rejuvenate the Indigenous tourism industry and ensure long-term, sustainable growth for Indigenous businesses and communities. As a component of the ITF, the department is collaborating with the Indigenous Tourism Association of Canada to roll out the first $10 million of the Micro and Small Business Stream, which will provide financial assistance, specifically non-repayable contributions of up to $25,000, to support export-ready micro and small Indigenous tourism businesses.

Developing talent for the digital economy

As Canada's key industrial sectors continue to evolve and digitize, ISED remains committed to equipping youth, students, graduates, and mid-career workers with industry-relevant experience to enhance their professional experience and preparedness.

In 2024–25, ISED will continue to administer programs aimed at increasing digital skills and employment experience among Canadian youth, including the Digital Skills for Youth (DS4Y) program, the Computers for Schools Internship program (CFSI), and the Business + Higher Education Roundtable (BHER). Through DS4Y, which connects post-secondary graduates with internships in small businesses and not-for-profit organizations, nine not-for-profit organizations have been selected to provide 179 internships that will equip youth with the skills and experience needed to transition to career-oriented employment. In 2024–25, the CFSI will provide 148 internships to help young people develop digital skills through paid, on-the-job experience refurbishing digital devices, which will increase their employability and marketability to prospective employers. Likewise, the BHER will seek to help emerging talent develop skills that will prepare them for the labour market and support business innovation and growth. It will aim to create over 7,500 work integrated learning opportunities for post-secondary students in 2024–25.

Launched in 2022–23, the Upskilling for Industry Initiative (UII) has committed $125 million in 2024–25 to support employers and SMEs, in better identifying their skills needs and develop new upskilling programming to meet them. Through Palette Skills Inc., the selected lead delivery participant , Footnote iv UII will continue to support demand-driven short-cycle programs to meet the needs of employers in six high-growth sectors: digital technology, cybersecurity, agriculture technology, advanced manufacturing, clean technology and biomanufacturing. ISED expects to connect 15,000 Canadians, including those from under-represented groups, with new work opportunities by March 31, 2025, creating a responsive pipeline of upskilled workers for Canadian industry.

Departmental Result: Businesses, investors, and consumers are confident in the Canadian marketplace, including in the digital economy.

Creating equitable market conditions is critical to Canada's economic growth on the global stage. Through a focus on modernizing key regulatory frameworks and intellectual property products and services, ISED will continue its progress towards leveling the playing field for businesses, investors, and consumers, creating a robust and fair marketplace that balances economic growth with national security considerations.

Modernizing Canada's marketplace regulatory frameworks

In 2024–25, the Competition Bureau will support the government's efforts to modernize and update the Competition Act Footnote v to promote and strengthen competitive markets. The Affordable Housing and Groceries Act received Royal Assent on December 15, 2023. Among other measures to make life more affordable for Canadians, the Act empowers the Bureau to take action against collaborations that stifle competition and consumer choice, in particular situations where large grocers prevent smaller competitors from establishing operations nearby. It also removed the efficiencies defence, which allowed anti-competitive mergers to survive challenges if corporate efficiencies offset the harm to competition, even when Canadian consumers would pay higher prices and have fewer choices. With a modernized Competition Act, the Bureau will be better able to protect and promote competition in Canada leading to lower prices, while stimulating innovation and economic growth. The Bureau will also continue its work with regulators and policymakers to assess the impact of new or existing policies on competition, championing the essential role of competition in the economy. Through the Canadian Digital Regulators Forum, the Bureau will strengthen information sharing and collaboration on digital markets and artificial intelligence (AI) with the Office of the Privacy Commissioner of Canada and the Canadian Radio-television and Telecommunications Commission. To ensure that anti-competitive behaviour is detected and deterred, the Bureau will continue to implement proactive monitoring and enforcement measures in areas such as deceptive marketing practices, cartels, problematic mergers, and digital services.

To protect the integrity of the Canadian insolvency system, ISED's Office of the Superintendent of Bankruptcy (OSB) will continue to modernize its directives, regulations, and IT systems in 2024–25 to reduce unnecessary burden on those it regulates and support confidence in the Canadian marketplace. Through its newly launched Debtor Compliance Management System, the OSB will leverage AI capabilities to detect and address debtor non-compliance.

In 2024–25, Measurement Canada, which has the legislative mandate to approve and oversee all measuring devices used in Canadian financial transactions, will prioritize modernizing and renewing legislation governing trade measurement, especially the approval and inspection of electric vehicle charging devices.

Through legislative amendments to the Investment Canada Act , ISED will continue to strengthen Canada's reputation as the world's top destination to invest . The amendments propose new regulatory measures for foreign investments that aim to improve compliance and information sharing with international counterparts concerning foreign investment reviews and national security assessments. Additionally, the amendments will grant the Minister of Innovation, Science and Industry the authority to impose interim conditions during a national security review of investments and accept binding undertakings from investors to mitigate any national security risks. These measures will not only foster a stronger investment climate but also grant ISED greater authority in reviewing any national security threats from foreign investments. Through timely processing of foreign investment reviews under the Act, ISED will assess foreign investments in Canada for likely net economic benefits and potential national security injury as well.

Promoting compliance among federally incorporated businesses

In 2024–25, ISED will notify corporations of the new reporting requirements under the Canada Business Corporations Act (CBCA), whereby federally incorporated businesses must proactively submit information on their beneficial owners or individuals with significant control of their business. The publicly accessible beneficial ownership registry, governed under the CBCA, will provide information about the ownership and control of Canadian corporations governed under the CBCA to help reduce the misuse of these corporations and strengthen the detection of tax evasion and fraudulent activities through improved transparency of beneficial ownership.

Promoting and protecting consumer interests

As consumer spending patterns and trends change because of inflation and rising food prices, ISED will continue to ensure that the voice of the consumer is represented through the Contributions Program for Non-Profit Consumer and Voluntary Organizations. In 2024–25, the department will provide $1.7 million to consumer advocacy organizations in Canada to conduct research projects, addressing issues such as digital consumer protection, systemic barriers to vulnerable consumers, affordability, and sustainable consumption. The program will also receive a $3.3 million budget increase to strengthen support for consumer advocacy, with a particular focus on areas where consumers have expressed great concern, including retail practices and rising grocery prices.

Advancing inclusive economic growth through intellectual property

In 2024–25, ISED will work toward making Canada's intellectual property (IP) system more inclusive, with a particular focus on the intersection of IP and the protection of Indigenous knowledge and cultural expressions.

IP protections, services and resources remain widely underutilized by Indigenous businesses and entrepreneurs in Canada as they face barriers to accessing Canada's IP system. As a result, the Canadian marketplace has been flooded with fraudulent imported Indigenous arts and goods, posing a threat to the economic viability of Indigenous communities. To address these barriers and support the protection of Indigenous IP, ISED will provide $150,000 in grants to Indigenous organizations through Indigenous Intellectual Property Program (IIPP) grants. The program will fund both small scale Indigenous-led projects, up to $15,000, and larger, more complex projects up to $50,000. The IIPP grants will also fund representatives from Indigenous organizations, up to $5,000, for their participation in World Intellectual Property Organization events and negotiations related to intellectual property, Indigenous knowledge, and Indigenous cultural expressions policy.

Through the IP Clinics Program—a grant program designed to foster the development of future IP experts by increasing university students' exposure to IP issues—ISED will provide $400,000 to eligible projects with a commitment to improving the understanding of IP and increasing access to IP services, including for women and Indigenous-led businesses. In support of the Government of Canada's Intellectual Property Strategy, the program will continue to deliver low cost or free IP services and resources to promote inclusive access.

In an effort to provide quality, timely IP services and resources to innovators, as well as safeguard IP rights, the Canadian Intellectual Property Office (CIPO), an agency under ISED, will continue optimizing turnaround times and enhancing client services through new technologies. Specifically, CIPO will continue implementing its Trademark Recovery Plan to reduce application backlogs by increasing examination capacity to restore turnaround times to internationally comparable standards by 2026.

As part of the National IP Strategy, CIPO will continue to advance IP awareness among Canadian entrepreneurs and innovators through the IP Awareness and Education Program. In 2024–25, CIPO will offer a number of training opportunities and information resources on IP, developed in partnership with Indigenous organizations, government departments, businesses, academia, and regional offices. For instance, through the IP Village—a collaboration between Canada's leading IP organizations—ISED will deliver a range of targeted educational resources and tools to support SMEs and women, Indigenous and Black entrepreneurs in managing and levering IP assets as part of their business and growth strategies.

Departmental Result: Canada has a clean and sustainable economy.

As Canada transitions to a cleaner, more sustainable economy, ISED remains committed to supporting the development of a globally competitive clean technology sector that addresses environmental challenges and provides high quality jobs for Canadians. Through the provision of key supports to researchers and businesses to develop and adopt clean technologies and products, ISED will contribute to Canada's annual incremental reductions in GHG emissions and the number of clean technology projects underway, helping Canada progress towards its net-zero emissions goal by 2050.

Helping to grow the clean technology sector

In 2024–25, ISED will support project proponents that have the potential to transition the Canadian economy toward a net-zero future and seek to deploy clean technology in economic sectors and technology areas such as carbon capture and storage, agriculture, electricity, and clean fuels, including hydrogen. The department will continue offering services and resources to Canadian companies to facilitate the development and financing of transformative projects in Canada's industrial sectors, while helping Canada achieve its 2030 and 2050 emissions reduction targets and its transition toward a competitive, low-carbon economy. These activities include acting as a central point of contact in the government for project proponents; coordinating and identifying funding opportunities, in partnership with key federal departments and their funding programs; and working with companies to position high-potential project concepts for success.

Leveraging improved data on clean technologies

As the federal focal point for clean technology, ISED's Clean Growth Hub—an inter-departmental initiative co-led by ISED and Natural Resources Canada and in partnership with 16 other departments and agencies—will continue to ensure that clean technology stakeholders are better equipped to make decisions related to clean technology innovation and deployment.

In 2024–25, the Hub will address emerging needs of clean technology stakeholders, including: leveraging government procurement to support clean technology development, facilitating stronger collaborations between clean technology innovators and adopters; strengthening awareness of unique regional clean technology needs, and leveraging new digital resources to improve client experience. It will also play an important role as a focal point in facilitating connections, coordinating leading clean tech companies across Canada, and providing assistance to new or existing clients, ranging from young clean tech innovators with high potential for disruption to large firms in high-emitting industries. Through the implementation of its strategy and action plan to advance reconciliation, equity, diversity and inclusion, which seek to better understand and address the needs of under-represented groups in the clean tech sector, the Hub will proactively leverage existing government efforts to increase inclusion and provide targeted support to these groups.

In parallel, ISED, in collaboration with Statistics Canada and Natural Resources Canada, will publish macroeconomic, industry and administrative data related to Canada's cleantech sector to help support private and public sector decision making. The Clean Growth Hub, which is the only source of authoritative data on Canada's clean tech sector, will conduct an analysis of economic trends and policy impacts on the sector. The Hub will further publish data measuring the contribution of Canada's cleantech sector to the Canadian economy— including data on employment and disaggregated data on the basis of labour force characteristics— and measure various economic, social, environmental and governance indicators. With the aid of the administrative data pillar of the Clean Tech Data Strategy, the Hub will work with federal programs in improving the consistency of data collection on federal cleantech investments and will lead an annual data collection exercise on these investments, which will allow for deeper analysis and understanding of federal programs that support clean technology.

Canada, like many other countries, is dependent on global markets for its supply of critical minerals and lithium batteries. This reliance on external supply chains, combined with a lack of global market share in this industry, creates a risk that Canada will not be able to successfully transition to a low-carbon economy. Additionally, as the battery market is already very competitive, there is a risk that firms receiving funding will not be able to compete in the global market. To mitigate these risks, Canada will continue to strengthen its domestic supply chain through the Government of Canada's recently announced special agreements with industry partners—NextStar Energy, Volkswagen PowerCo, and Northvolt Batteries North America— to anchor the production of lithium batteries in Canada, helping to develop more resilient supply chains. These three major investments will help solidify Canada's position in the global supply chain and attract the business of automotive manufacturers and critical minerals suppliers, thereby creating a sustainable domestic ecosystem.

Additionally, in light of increasing interest rates and inflation combined with budgetary constraints , there is a risk that some programs, such as the Strategic Innovation Fund, the Global Innovation Clusters and the Accelerated Growth Service may be unable to deliver the planned level of activities and projects in 2024–25. In response, ISED has implemented several measures to minimize disruptions to funding and planned activities. For example, ISED is developing strategies to manage potential project cancellations or delays, including project pipelines that can be leveraged to reinvest this funding. The department is also conducting forecasting exercises with funding recipients to ensure that their spending is on track and that potential lapses are identified and addressed as early as possible. Furthermore, ISED will implement quarterly results monitoring and reporting, through committee reviews, and improve strategies for recipient selection to ensure that the expected results of projects are met.

Snapshot of planned resources in 2024–25

Planned spending: $4,279,156,052
Planned full-time resources: 4,352

In 2024–25, ISED will continue to ensure that its programs, policies, and initiatives are responsive, inclusive, and reflective of the diverse experiences and realities of Canadians in order to address inequities and barriers. For example, several Innovation Canada programs now require recipient organizations to develop inclusion, diversity, equity and accessibility strategies outlining how they will ensure fair and equitable access for applicants and highlighting targeted initiatives to address barriers and gaps for under-represented groups. In addition, the ElevateIP program will establish partnerships with organizations representing equity-deserving groups to develop more inclusive programming.

Following ISED's commitment to producing more inclusive outcomes for women and under-represented groups, gender and diversity plans are now mandated for all recipients of Strategic Innovation Fund support. The program requires recipient organizations to develop a comprehensive gender and diversity plan at the start of their projects in an effort to ensure that they are actively cultivating environments that are more equitable, inclusive and accessible. Similarly, under the Industrial and Technological Benefits Policy, firms bidding on applicable defence procurements are required to describe their approach to increasing gender equity and diversity in their corporate structure and broader supply chains in Canada. A key component of developing an effective GBA Plus framework is identifying how initiatives can be tailored to meet the diverse needs of the people most impacted. Programs such as the Global Innovation Clusters will be implementing a series of measures creating opportunities specifically for Indigenous peoples, for example—to provide meaningful work experience for people from equity-deserving groups. The clusters are also offering workshops and formal training in response to the industry's need for members to develop their talent, gain knowledge or learn new skills. Under each Cluster, the program also promotes the 50 – 30 Challenge that strives for gender parity (50% women and/or non-binary people) and significant representation (30%) of members of under-represented groups, on its board of directors.

ISED will continue applying a GBA Plus lens to its intellectual property programming as well. The IP Clinics and Patent Collective programs specifically support recipients from traditionally under-represented groups, such as women and Indigenous entrepreneurs, in need of network development and funding support for IP advice. CIPO, in general, will continue its collaboration with the international IP community to develop a stronger understanding of GBA Plus and address the existing gender gaps in the innovation ecosystem.

In 2024–25, the department will conduct various educational and awareness raising activities aimed at encouraging greater participation of equity deserving groups. For example, ExploreIP will be targeting underrepresented groups, including Indigenous, Black, women, 2SLGBTQI+, disabled and other diverse entrepreneurs, to increase program awareness and will highlight the importance of inclusion, diversity, equity, and accessibility among staff as they pertain to their duties. Corporations Canada at ISED will continue its broad and inclusive digital awareness campaign on how to effectively access information and resources, ensuring program requirements are accessible, reliable and not impeded by technological barriers.

ISED is committed to advancing Canada's efforts toward developing the United Nations 2030 Agenda for Sustainable Development and the UN's Sustainable Development Goals (SDGs). While ISED is a strong proponent for all 17 SDGs, its policies, programs, and initiatives mostly advance actions on SDG 9—Industry, Innovation and Infrastructure to "build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation." The department's key programs, such as the Strategic Innovation Fund, Canada's five Global Innovation Clusters and Innovative Solutions Canada will support work in: research and development, technology adoption, investments in science and research, efforts to attract anchor firms through foreign investment and measures to create innovative ecosystems. ISED will also contribute to this SDG through Canada's Intellectual Property Strategy, as Canadian innovators and businesses will continue to protect and leverage their IP. In terms of promoting green infrastructure as part of the SDG, SIF's Net-Zero Accelerator initiative, Sustainable Development Technology Canada (SDTC) and ISC will be supporting clean technology innovation and Canada's clean growth policies.

ISED is also a key contributor to the following SDGs: SDG 7—Affordable and Clean Energy, SDG 8 —Decent Work and Economic Growth, SDG 12—Responsible Consumption and Production; and SDG 13 —Climate Action. Since the department is a strong advocate for Canada's climate commitments, the SIF's NZA and SDTC provide targeted investments in projects advancing SDG 7 and SDG 13— such as ones focused on developing clean technologies, batteries, critical minerals and electric vehicles— and support for initiatives promoting globally competitive clean technology solutions that will help Canada achieve its net-zero target by 2050. In addition to these flagship ISED programs, the Business Benefits Finder, the Accelerated Growth Service, and the Upskilling for Industry Initiative will be advancing SDG 8 as well. These programs will encourage inclusive and sustainable economic growth by connecting Canadians with relevant government programs, and funding employer driven-approaches to redeploying workers in high-growth sectors.

More information on ISED's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in ISED's Departmental Sustainable Development Strategy . Footnote vi

Companies, Investment and Growth is supported by the following programs in the program inventory:

Business Innovation
Spectrum and Telecommunications
Digital Service
Economic Outcomes from Procurement
Support for Small Business
Talent Development
Intellectual Property
Competition Law Enforcement and Promotion
Marketplace Protection and Promotion
Clean Technology and Clean Growth

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase . Footnote vii

Science, Research, Technology and Commercialization

Support and enable business-led investment and strategic collaborations for leading- edge technology development and commercialization; maintain and strengthen Canada's research excellence, including support for fundamental science, experimentation, and exploration to address global challenges.

The Science, Technology, Research and Commercialization core responsibility aligns with the "Prosperity" domain of the Quality of Life Framework. The program within this core responsibility focuses on maintaining and strengthening Canada's research excellence, including support for fundamental science, experimentation, and exploration to address global challenges.

Under the "Prosperity" domain, the "investment in in-house research and development" indicator aligns with ISED's departmental results indicator, "percentage of Canada's higher education research and development funded by business." Both indicators recognize the importance of investments in research and development to support innovation and the commercialization of new products, services, and technologies. ISED also tracks Canada's rank among OECD nations on the average relative citation (ARC) score of science and research publications. Key initiatives under this core responsibility focus on the transfer of knowledge within the Canadian research ecosystem.

The following tables show, for each departmental result related to Science, Technology, Research and Commercialization, the indicators, the results from the three most recently reported fiscal years, the targets and target dates approved for 2024–25.

Table 4: Indicators, results, and targets for departmental result: Canadian science, technology and innovation (ST&I) research contributes to knowledge transfer.

The financial, human resources and performance information for Innovation, Science and Economic Development Canada's program inventory is available on GC InfoBase . Footnote viii

Departmental Result: Canadian science, technology and innovation (ST&I) research contributes to knowledge transfer.

ISED aims to foster an innovative economy, improve the health and well-being of Canadians, and optimize federal investment in ST&I. To achieve these goals, in 2024–25 ISED will continue working with various third-party organizations (TPOs) to advance federal research priorities and fill ecosystem gaps—primarily through the newly established Strategic Science Fund (SSF). The Department will continue to promote collaboration between domestic and international research organizations, support the development of pan-Canadian science and research-related strategies, and provide the Prime Minister and Cabinet with advice related to key scientific issues through the Office of the Chief Science Advisor. ISED will also provide policy advice on cyber security and research security considerations for international research and development (R&D) investments in academia through the implementation of the Government of Canada's Digital Research Infrastructure Strategy.

Supporting coordinated federal investments

The government allocates funding to TPOs that play an important role in the Canadian science and research ecosystem by seizing unique opportunities, filling gaps in federal programming in areas of priority to the government, providing services nationally, or deriving advantages from ST&I activities being delivered at arms-length from the federal government. TPOs are independent, not-for-profit organizations that have highly diverse mandates and areas of expertise and cover a wide spectrum of ST&I activities.

In response to the need for greater transparency and accountability related to funding decisions, Budget 2019 established the SSF, administered jointly by ISED and Health Canada. This new competitive approach to investing in TPOs affirms the importance of a credible, principles-based merit-review process informed by the advice of independent external experts chosen based on high ethical standards, expertise, and diversity of perspectives. This approach was recommended by an independent advisory panel and external monitoring of this approach will ensure that it is fair and appropriately targeted.This marks a foundational change in how funding is provided to organizations in the science and research ecosystem. Through this coordinated approach, ISED and Health Canada are better equipped to make funding decisions and assess where there may be gaps in the ecosystem.

The SSF will act as a key funding vehicle for the science and research community and will ensure clear alignment with program objectives and expected outcomes. Activities funded under the SSF are expected to enhance internationally competitive, leading-edge research in areas critical to the health, and the economic and social well-being of Canadians; to develop, attract and retain world-class research and innovation talent in scientific areas that are aligned with Canada's priorities; to accelerate the exchange of research results and the translation of this knowledge into action in Canada and abroad; and to strengthen evidence-based decision making, innovation skills development and science culture.

Following a competitive process, 24 successful applicants have been selected Footnote ix to receive funding through the SSF in 2024-25, pending the finalization of contribution agreements. This first year of a five-year cycle of funding under the SSF will allow the government to provide direct financial support for organizations to advance both fundamental and applied research. ISED, in partnership with Health Canada, will work closely with SSF recipient organizations in 2024–25 to ensure their activities are aligned and positioned to meet expected program outcomes.

Accelerating the adoption and commercialization of artificial intelligence

In 2024-25, the Department will continue to support research and development in key emerging sectors such as artificial intelligence (AI) through the ongoing implementation of the Pan-Canadian Artificial Intelligence Strategy (PCAIS).

The PCAIS aims to drive the adoption of AI across Canada's economy and society. Through the three pillars—commercialization, standards, and talent and research, the PCAIS seeks to connect Canada's world-class talent and research capacity with federal programs that facilitate commercialization and technology adoption in order to ensure that Canadian ideas and knowledge are mobilized and commercialized domestically.

In support of the commercialization and talent and research pillars of the PCAIS, the $60 million fund for the national AI institutes —Amii in Edmonton, Mila in Montréal, and the Vector Institute in Toronto— aims to help translate research in AI into commercial applications and increase the capacity of Canadian businesses to adopt these new technologies. These three not-for-profit corporations are each receiving funding of up to $20 million over five years to support the advancement of AI research, training, and innovation. For example, Amii will advance leading-edge research in AI by funding academic research and encouraging industry leaders to invest in Alberta's world-leading talent and expertise. In 2024‒25, contributions to these institute will support capacity-building among business, health, and not-for-profit partners.

In 2024‒25, ISED will continue to monitor and support the ongoing implementation of the Digital Research Infrastructure (DRI) Strategy, to ensure Canadian researchers have the tools they need to conduct leading-edge research. Under the strategy, ISED is providing funding to the Digital Research Alliance of Canada (DRAC) for the planning, procurement, installation, operation and allocation of computing infrastructure to increase computing capacity for AI researchers. In 2024‒25, DRAC will continue to coordinate and deliver national services in advanced research computing, research data management and research software, while also promoting innovation and expanding the network of support and resources that are available to academic and research communities.

CANARIE, the Canadian Network for the Advancement of Research, Industry and Education (CANARIE) will advance the DRI Strategy by funding initiatives such as the expansion and maintenance of the National Research and Education Network (NREN)—which connects more than 750 Canadian universities, colleges, cégeps, research hospitals, government research labs, school boards, business incubators and accelerators. Specifically, through the Digital Accelerator for Innovation and Research (DAIR) program, CANARIE will continue to accelerate innovation and the commercialization of products and services by providing Canadian start-ups with free cloud resources and access to expertise in next generation technologies.

Enhancing Canada's research ecosystem and leading-edge technology development in quantum science

In 2024–25 the National Quantum Strategy (NQS) Secretariat will continue to oversee the coordination and integration of quantum R&D in Canada, guiding investments through the strategy's three pillars: quantum research, talent and commercialization. To do so, the secretariat will continue to work with key partners such as the Quantum Advisory Council, the Natural Sciences and Engineering Research Council of Canada, the National Research Council of Canada, Mitacs, Canada's Global Innovation Clusters, Innovative Solutions Canada (ISC), and ISED's Regional Development Agencies to look for solutions in several quantum technology areas such as computing, software, communications and sensors.

Additionally, under the NQS, ISED will provide another year of funding to Quantum Industry Canada, a consortium of Canadian quantum technology industries, which will increase internal capacity and improve the effectiveness of knowledge transfer between key groups to support the development, scaling and commercialization of innovations.

In 2024–25, work will continue developing of the Pan-Canadian Genomics Strategy in partnership with the NRC, taking into consideration the 'What We Heard' report published in the spring of 2022, which underscored Canada's potential in genomics with existing strengths in genomics research.

Canada has a small number of lab-to-market programs that aim to increase commercialization awareness and skills among early researchers and students. Budget 2022 provided funding for a national lab-to-market platform for students and researchers at post-secondary institutions to explore the commercial potential of their work, with the aim of filling gaps in funding to support post-secondary institutions in creating or expanding lab-to-market programming. In 2024-25, ISED will work with program delivery partners to launch the new national lab-to-market platform whereby successful post-secondary institution applicants will receive funding to develop shared training curriculum, leverage respective areas of sectoral or technology specialization, and engage in cross-promotion and networking as they build and expand their lab-to-market program offerings. A new annual survey, to be launched in fall 2024, will assess how knowledge created at Canada's universities, colleges and research institutes generates commercial outcomes, as well as broader social and economic benefits for Canadians.

Strengthening international scientific collaboration

In 2024–25, in collaboration with Global Affairs Canada, ISED will be joining Horizon Europe, the world's largest collaborative science, research and innovation program. As a result, Canadian researchers and innovators will be able to access a broader range of research opportunities in areas such as health; culture, creativity and inclusive society; civil security for society; digital, industry and space; climate, energy and mobility; and, food, bioeconomy, natural resources, agriculture & environment. The benefits of association to Horizon Europe include the ability to lead projects, receive direct funding and collaborate with European partners and other associated countries in various research and innovation areas.

Investing in Cybersecurity

In 2024–25, the Cyber Security Innovation Network (CSIN) program will seek to enhance R&D, increase commercialization, and further support the development of skilled cyber security talent across Canada. ISED's role is to implement, oversee and monitor the CSIN program, as well as provide funding for the selected successful projects. The CSIN program will help foster a strong national cyber security ecosystem and position Canada as a global leader in cyber security.

As the program's lead, the National Cybersecurity Consortium (NCC) launched an initial call for proposals in April 2023, which led to a partnership between telecommunications company Ericsson, and researchers from Concordia University, the University of Waterloo, and the University of Manitoba for a project to investigate the security of 5G networks. The project will receive $1 million in funding from the NCC over three years and aims to design and implement technologies that can prevent, predict, detect, and mitigate cyber threats in 5G networks using machine learning and AI. In 2024–25, a second national call for proposals will be launched to continue to support the growth of a comprehensive and collaborative Canadian cyber security innovation ecosystem through academia-industry collaboration.

Due to the sensitive nature of cyber security R&D and the innovation activities undertaken by the NCC in leading the CSIN, the network may be targeted for its data and intellectual property. While Canada maintains an open and collaborative research environment, it has increasingly been the target of foreign interference activities that, pose a threat to Canada's research ecosystem, and to as national security.

To mitigate the risk of targeted espionage, in collaboration with national security and intelligence organizations and Canada's granting agencies, ISED will continue with the phased implementation of the National Security Guidelines for Research Partnerships in 2024–25. These guidelines are used to assess whether aspects of a research project pose unacceptable risks to national security and if these risks cannot be mitigated, the project will not be funded. The guidelines already apply to the Alliance Grant program and the Canada Biomedical Research Fund.

Planned spending: $969,539,190
Planned full-time resources: 114

Barriers to access and to participation in science, technology, engineering, and math (STEM) for women and other equity-deserving groups have led to an under-representation in these fields. ISED and its partner organizations work toward reducing and eliminating barriers to participation in several ways, with the goal of creating a diverse talent pool and inclusive industries.

One way to address this issue is by applying a GBA Plus lens when selecting funding recipients and embedding GBA plus requirements into funding agreements. For example, in 2024–25, the NCC will implement an Equity, Diversity, and Inclusion (EDI) Framework with GBA Plus considerations. The framework will outline actions the NCC will adopt to identify and remove barriers regarding the participation of individuals from underrepresented groups in network governance, operations, and activities. This includes developing EDI objectives, actions, data collection methods, and performance metrics to measure progress.

Similarly, contribution agreements with science research organizations require that recipients provide details of their planned activities to advance EDI on an annual basis, including updates on progress in their annual report. These activities can include setting representation or diversity-related targets for the governance and administration of scientific review committees; collecting self-identification data for EDI performance tracking; working towards a better understanding of program impacts on underrepresented groups; and embedding EDI values in hiring and training processes. At the initial phase of selecting funding recipients and negotiating agreements, GBA Plus is also applied.

GBA Plus also means ensuring inclusive outcomes for all Canadians through inclusive program design and implementation. For example, the NQS's broad community-based approach encourages youth from under-represented groups, such as girls, Indigenous youth, disabled youth, at-risk youth, and youth living in rural or remote locations, to develop life-long learning habits and curiosity toward STEM fields such as quantum science and technologies. Additionally, by expanding NREN into Nunavut through an agreement with Nunavut Arctic College, CANARIE will continue to reduce the digital divide for rural and northern communities.

Lastly, Genome Canada maintains a strong commitment to action on inclusion, diversity, equity and accessibility (IDEA) by embedding policies and practices enterprise-wide across its programs. It will continue collaborating with all equity-deserving groups for input on investment prioritization and delivery of challenge-driven initiatives. Specifically, Genome Canada has engaged with a wide range of Indigenous leaders across sectors and supports Indigenous-led programs, such as Silent Genomes and the Summer internship for Indigenous Peoples in Canada (SING Canada). They are working with Indigenous partners to co-develop an Indigenous truth, reconciliation and engagement strategy to elevate Indigenous genomics leadership in Canada. Through continued partnerships in activities such as the Black Excellence in Science, Technology, Engineering, Mathematics and Medicine/Health (BE-STEMM) event, Genome Canada provides research and career opportunities to Black Canadian scholars, with a focus on removing barriers and boosting retention.

For details on ISED's contributions to various UN Sustainable Development Goals please see the United Nations 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals section under the People, Skills and Communities, and Companies, Investments and Growth core responsibilities.

Additionally, more information on ISED's contributions to Canada's Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in ISED's Departmental Sustainable Development Strategy . Footnote v

Science, Technology, Research and Commercialization is supported by the following program in the program inventory:

Science and Research

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase . Footnote x

Support the creation, transfer and diffusion of knowledge to ensure that Canadians, including under-represented individuals, are equipped with the skills and tools to participate in an innovative, high-growth economy; advance a culture of innovation where Canadians are driven to address local, regional, national and/or global challenges; benefit from growth of the middle class across communities; have increased access to affordable broadband and mobile Internet, including in rural and remote regions; and are protected and informed consumers.

The People, Skills and Communities core responsibility aligns with the "Prosperity" domain of Canada's Quality of Life Framework, with its focus on improving participation in the Canadian economy for various segments of the population, particularly the emphasis on broadband access. For example, one of the indicators in the "Prosperity" domain is "access to high-speed Internet," measured by the proportion of households that have access to high-speed Internet services, which is also one of ISED's Departmental results indicators.

This core responsibility also aligns with the inclusion lens of the Quality of Life Framework, as several of ISED's programs focus on reducing barriers and enhancing access to financial and non-financial supports for entrepreneurs from various equity-deserving groups, including women, racialized people, and members of the 2SLGBTQI+ communities.

The following table shows, for each departmental result related to People, Skills and Communities, the indicators, the results from the three most recently reported fiscal years, and the targets and target dates approved for 2024–25.

Table 5: Indicators, results, and targets for departmental result: People and communities from all segments of Canadian society participate in the economy.

The financial, human resources and performance information for ISED's program inventory is available on GC InfoBase . Footnote xi

Departmental Result: : People and communities from all segments of Canadian society participate in the economy.

In 2024–25, ISED will continue to provide people from all regions of the country with the necessary access, tools, and skills to participate in the digital economy. In support of Canada's Connectivity Strategy, ISED will continue to advance connectivity and bring reliable high-speed Internet access to households and businesses across Canada through the $3.225 billion Universal Broadband Fund (UBF). For instance, ISED will continue to roll out UBF projects across Canada to further advance connectivity in rural and remote areas of the country, such as in the example of Saskatchewan, where the UBF brought fibre-optic Internet to the communities of Thode and Shields, allowing nearly 350 households and other local businesses (e.g., those in the tourism industry) to benefit from access to remote schooling, work, healthcare and connecting with loved ones. These efforts will support our goal of 98% of Canadian households having access to high-speed internet by 2026, and 100% by 2030.

To provide high-speed Internet service to the hardest to reach households, the Government of Canada has entered into a $600 million agreement with Telesat to secure capacity on its low Earth orbit (LEO) satellite constellation, Telesat Lightspeed. Through Telesat Lightspeed, Internet service providers (ISPs) will be able to offer services to Canadian households at a reduced rate, bringing Canada closer to meeting its 2030 100% connectivity target. ISED will continue to monitor Telesat's progress towards a 2026 launch and 2027 service date, working with Telesat to connect a total of 40,000 rural , remote and Indigenous households in satellite-dependent communities, including in the Far North.

Through the Connecting Families Initiative (CFI), ISED will continue to promote affordable Internet access for low-income families and seniors who face affordability barriers. In partnership with ISPs, ISED will continue to facilitate access to affordable Internet plans for the hundreds of thousands of households that need it most. Specifically, in 2024–25, ISPs will provide the newest service package of 50/10 Mbps Internet speeds for $20 per month, along with the previous package (10/1 Mbps) at $10 per month.

To enhance awareness and access among those who are eligible , the CFI will be promoted through mailouts to eligible individuals and households, inviting them to register through the program's web portal. Working with the Canada Revenue Agency and Employment and Social Development Canada, ISED will explore additional means beyond mailouts to reach the target population, potentially through emails. A social media campaign, coupled with other social media engagement strategies and webinars with community-based partner organizations, will also help broaden awareness of the CFI. These efforts will serve to provide more information about the program and support organizations in helping those who have language barriers or digital literacy challenges to register and to participate in the CFI.

In addition to improving Internet access, ISED, through the Digital Literacy Exchange Program (DLEP), will continue to support not-for-profit organizations in developing and delivering digital literacy skills training for those who face barriers to participating in the digital economy. The program's second phase, DLEP 2.0, aims to provide digital literacy training to 100,000 individuals, including persons with disabilities, Indigenous people, individuals who do not speak English or French at home, seniors, individuals who have not completed high school, individuals with low-income, residents in rural and remote areas, newcomers to Canada, and individuals from official language minority communities.

Through these collective efforts and their focus on tackling systemic barriers to economic participation, the Department will help foster an increasingly accessible, and inclusive digital economy by providing everyone in Canada with the access, tools, skills, and affordable services they need.

Diversifying Canada's entrepreneurial ecosystem

As Canada's entrepreneurial landscape continues to evolve, various groups, including women, Indigenous people, and other racialized minorities, remain under-represented in the entrepreneurial ecosystem. In 2024–25, ISED's programs will continue to dismantle the barriers faced by these groups by providing access to financing, business tools and support services so that all equity-deserving groups have equal access to the resources needed to start and grow their businesses. By investing in diverse entrepreneurs, ISED will unlock new and existing potential in the business community, making Canada's entrepreneurial ecosystem more accessible by providing opportunities and support for individuals from equity-deserving groups to start, scale, grow, and maintain their businesses.

Through the Women Entrepreneurship Strategy (WES), the Black Entrepreneurship Program, and the newly established 2SLGBTQI+ Entrepreneurship Program, ISED will continue to facilitate access to financing, networks, mentorship, and business supports, such as financial planning services and training, for under-represented entrepreneurs across Canada.

In 2024-25, the WES Ecosystem Fund will continue to strengthen capacity within the entrepreneurship ecosystem and offer business supports to diverse women entrepreneurs, as well as those in rural and remote areas. An investment of $65 million will fund 24 projects led by not-for-profit organizations to offer supports such as training, mentorship and financial literacy. Furthermore, the WES Ecosystem Fund will continue to strive to serve at least 12,000 women entrepreneurs across Canada annually. The WES Ecosystem Fund will support the École des entrepreneurs du Québec FAIR.E project, which will deliver three transformational learning programs—free-of-charge—to help women entrepreneurs launch, boost and grow their businesses. The project will serve up to 1,800 women in six provinces: Quebec, Ontario, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland and Labrador. Finally, financing and access to capital will be offered to women entrepreneurs through the $55 million Women Entrepreneurship Loan Fund, which provides individual loans of up to $50,000.

To bolster the representation of under-represented groups in Canada's entrepreneurial ecosystem, the $160 million Black Entrepreneurship Loan Fund (BELF)—made up of $30 million from the Government of Canada and $130 million from the Business Development Bank of Canada (BDC)—will continue to provide individual loans of up to $250,000 for Black business owners and entrepreneurs. The BELF administrator, the Federation of African Canadian Economics (FACE), in partnership with BDC, has approved over 500 applications, representing more than $46 million in loans. In 2024-25, the Black Entrepreneurship Ecosystem Fund will continue to support 43 not-for-profit organizations across the country, in providing training, mentorship, networking and financial literacy services to Black entrepreneurs and business owners. Entrepreneurs who identify as 2SLGBTQI+ (Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, or other sexually or gender diverse people) make sizable contributions to the Canadian economy, yet they continue to face systemic barriers to starting and growing their businesses. Through the 2SLGBTQI+ Business Scale-Up program, totalling $13.5 million in funding, and in partnership with Canada's 2SLGBTQI+ Chamber of Commerce (CGLCC), ISED will help 2SLGBTQI+ entrepreneurs across Canada grow their businesses by implementing a national mentorship program, improving access to corporate procurement opportunities, and helping 2SLGBTQI+ entrepreneurs and businesses become export ready. The Business Scale-Up program plans to support 250 small and medium-sized enterprises (SMEs) by March 31, 2025, including 55 SMEs owned and managed by 2SLGBTQI+ individuals who also identify as members of another equity-deserving group.

Within the venture capital (VC) ecosystem, women entrepreneurs continue to face systemic barriers to accessing venture capital funding. To address these barriers and build a more inclusive risk and venture capital environment for women in Canada, the Venture Capital Catalyst Initiative (VCCI) will continue to increase women entrepreneurs' access to VC funding, contribute to increasing the representation of women in the VC industry, and help ensure that the VC industry is sensitive to gender and potential unconscious bias. VCCI's projects seek to facilitate capacity building and skills development opportunities as they relate to training and education, mentorship and coaching, and advisory services.

Additionally, the Small Business and Entrepreneurship Development Program (SBEDP) General Fund received $101.4 million, as announced in Budget 2021, to support national/pan-Canadian not-for-profit organizations into assisting SMEs across Canada, including those led or owned by members of equity-deserving groups, to develop and grow. The SBEDP General Fund has been used to support several entrepreneurship initiatives, including the $25 million 2SLGBTQI+ Entrepreneurship Program and the renewal of the Trade Accelerator Program

The Department will also continue to build knowledge and collect data on under-represented entrepreneurs to create a more inclusive and supportive business environment through the Women Entrepreneurship Knowledge Hub (WEKH), the Black Entrepreneurship Knowledge Hub (BEKH), and the 2SLGBTQI+ Knowledge Hub, which conduct research on the state of the entrepreneurial ecosystem for each group. To provide evidence-based research to inform the design and delivery of targeted supports for women entrepreneurs, the WEKH, led by Toronto Metropolitan University, will continue to publish the State of Women's Entrepreneurship annual report, as well as reports and articles on women entrepreneurs across a variety of sectors, such as cleantech, agriculture, arts and culture, and procurement. To further dismantle the barriers experienced by women entrepreneurs, the WEKH will continue to add more women entrepreneurs to its See It. Be It. database of over 1,800 diverse Canadian women entrepreneurs.

The BEHK, administered by Carleton University's Sprott School of Business and the Dream Legacy Foundation, will continue to work with community partners to advance research on the state of Black entrepreneurship in Canada and help identify barriers to success, as well as opportunities for growth, for Black entrepreneurs. To support this work, the BEKH will conduct a range of research activities. BEKH will also continue to convene Black Entrepreneurship Program stakeholders, building on the successes and lessons learned from its annual symposiums in 2022 and 2023. Similarly, the 2SLGBTQI+ Knowledge Hub will conduct research and collect data to create a clearer picture of the entrepreneurship landscape for the 2SLGBTQI+ community and the challenges 2SLGBTQI+ entrepreneurs face.

In 2024–25, ISED will continue to challenge Canadian organizations to increase the representation and inclusion of diverse groups in senior leadership positions through the 50 – 30 Challenge, which aims to achieve gender parity (50% women and/or non-binary people) and significant representation (30%) of members of other equity-deserving groups on Canadian boards and/or in senior management. The five Ecosystem Partners — Colleges and Institutes Canada, UN Global Compact Network Canada, the Ted Rogers School of Management's Diversity Institute, the Women's Economic Council and Egale Canada— will continue to support challenge participants by delivering tools, services and resources to help them meet the 50 – 30 Challenge objectives.

Bolstering the digital presence of Canadian businesses

ISED is committed to helping Canadian businesses, especially SMEs and businesses owned by under-represented entrepreneurs, take advantage of digital technologies. Through the Canada Digital Adoption Program (CDAP), ISED will provide funding opportunities and expert advice to help SMEs digitalize their operations. In 2024–25, the Department will continue to help SMEs establish a digital presence and to provide job opportunities to youth—by hiring and training them as e-commerce advisors—through CDAP.

Through its Grow Your Business Online component, CDAP will continue to provide eligible businesses with micro-grants of up to $2,400 for costs associated with the adoption of digital technologies and with assistance and e-commerce advisory services. By focusing on awareness-building activities and user-centric enhancements, CDAP will continue to increase its uptake to maximize the value and impact of the program for participating businesses.

Through CDAP's Boost Your Business Technology component, additional incentives will be offered in the form of interest-free loans through BDC and individual wage subsidies of up to $7,300 for youth employment placements, to support SMEs in implementing their digital adoption plans to improve their productivity and competitiveness.

ISED, through the Trade Accelerator Program (TAP), will continue to help SMEs take advantage of international market opportunities by increasing their exporting capabilities. TAP is delivered by six regional chambers of commerce across Canada and will support these organizations in guiding participating SMEs to achieve an increase in the value of their exports over the course of their participation in the program through access to networks, training and advice from Canada's top export advisors.

Due to ongoing procurement and supply chain challenges, labour shortages, and inflation, combined with unexpected events such as extreme weather and wildfires, there is a risk of delays and cost overruns for some projects under the UBF and Telesat's LEO satellite constellation. ISED will continue to monitor the progress of these projects and to work closely with funding recipients to mitigate risks on a case-by-case basis to ensure that the programs remain on track to meet the government's connectivity targets.

Given the systemic barriers that people from under-represented groups continue to face in accessing financial and non-financial support services, there is a risk of insufficient program uptake or use by eligible recipients. In addition, there is a risk that ISED's programs may not sufficiently address the needs of their target populations because of the changing economic climate, the evolving needs of SMEs and entrepreneurs, and the limited availability of data on the specific entrepreneurship barriers that some equity-deserving groups face. To mitigate these risks, ISED will undertake targeted outreach and engagement activities to ensure that programs reach their audience and that eligible individuals benefit from key services. ISED will also continue to leverage research and data from the various knowledge hubs and work closely with community-based organizations to co-develop services and supports, such as training, to ensure that programming is relevant, useful and culturally appropriate for the target audience.

Planned spending: $703,840,962
Planned full-time resources: 178

ISED will continue to foster an inclusive and representative modern digital economy by focusing on closing gaps in connectivity and Internet access for Canadian households, improving digital literacy skills, and providing financial and business supports to under-represented entrepreneurs.

Certain groups may face barriers to accessing DLEP and CFI services—for instance, those with limited access to technology due to financial constraints, lack of access to the Internet to register for the program, language barriers, lack of transportation or lack of awareness of the program. To address these limitations, the programs will continue to target low-income families, seniors, and official language minority communities. DLEP will continue to offer services free of charge, support multilingual training and translation, offer training in various facilities, and provide transportation to individuals in need. In partnership with the YWCA, the CFI will continue to offer services in multiple languages and to train staff in non-profit organizations that support low-income families and seniors on how to assist eligible participants with program registration.

Programs committed to closing the connectivity gap such as the UBF, will continue to work towards providing households in rural and remote and Indigenous communities with access to high-speed Internet. The UBF will continue to target under-served communities, including Indigenous communities.in order to bridge the digital divide by bringing reliable Internet access to these regions and groups.

Barriers to accessing financial and non-financial support services are further amplified for entrepreneurs with multiple intersecting identities (i.e., those who identify as belonging to more than one under-represented group). With a reduced awareness of these programs or a lack of knowledge in navigating government resources, these entrepreneurs may not benefit from federal supports. Entrepreneurs from equity-deserving groups and/or those in rural, remote, and northern communities may also face additional barriers to growth due to small local markets, remoteness, and infrastructure challenges. Furthermore, individuals who do not wish to identify as a member of an equity-deserving group may not benefit from ISED's programs and services.

To dismantle these barriers, ISED will ensure that the self-identification process in applications is secure and confidential and will enhance its outreach and communication activities —through platforms like the Business Benefits Finder, for example—to build awareness of all entrepreneurship programs. Furthermore, disaggregated data collected on diverse groups will be used to fuel research on Canada's entrepreneurial ecosystem and to improve programming for under-represented groups. The Department will also encourage recipient organizations to refer clients and to share information with eligible applicants to bolster the reach of their programs. In addition, ISED will continue to assess recipient organizations' projects to ensure that those benefitting individuals with intersecting identities and living in rural and remote communities are prioritized.

ISED is a strong supporter of Canada's efforts to develop and implement the United Nations 2030 Agenda for Sustainable Development and Sustainable Development Goals (SDGs). While ISED supports multiple SDGs, its programs and initiatives under the People, Skills, and Communities core responsibility primarily advance action on SDG 9—Industry, Innovation and Infrastructure to "build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation." ISED's programs and initiatives in support of this SDG include Canada's Connectivity Strategy, the Universal Broadband Fund, Connect to Innovate), and the Canada Digital Adoption Program.

ISED's People, Skills, and Communities programs also advance other SDGs, such as:

ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all; and
promoting inclusive and sustainable economic growth, full and productive employment, and decent work for all.

More information on ISED's contributions to Canada's Federal Implementation Plan for the 2030 Agenda and the Federal Sustainable Development Strategy can be found in ISED's Departmental Sustainable Development Strategy . Footnote v

People, Skills, and Communities is supported by the following programs in the program inventory:

Support for Under-represented Entrepreneurs
Bridging Digital Divides

Supporting information on planned expenditures, human resources, and results related to ISED's program inventory is available on GC InfoBase . Footnote xii

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

management and oversight services
communications services
legal services
human resources management services
financial management services
information management services
information technology services
real property management services
materiel management services
acquisition management services

Our Workplace

In 2024–25, ISED will continue to ensure that its workspace, tools, and technology are accessible, and that they continue to evolve to meet changing needs of employees in the hybrid work environment. The Department will continue to modernize the built environment to meet GC Workplace standards, and to remove barriers identified in ISED's 2023-2025 Accessibility Plan. In 2024‒25, employees will see the creation of a variety of accessible spaces within the workplace including community boardrooms, multi-faith prayer rooms and reflection rooms. ISED will also continue to increase the number of all-access and gender-neutral washrooms that are available to employees. Finally, ISED will continue to equip its boardrooms with hybrid meeting technology and will continue to ensure Wi-Fi access in regional offices.

In many cases, the delivery of projects in the built environment are dependent on external partners such as building management companies, Public Services and Procurement Canada, Shared Services Canada, among others. As such, there is a risk that projects could be delayed if project stakeholders are unable to align with ISED's timelines. To mitigate this risk, ISED will continue to monitor its progress and reprioritize investments as required to responsibly manage its funds and continue to deliver on its requirements.

ISED's Future of Work Office (FOWO) has been critical to the Department's successful transition to the hybrid work environment. FOWO will continue to ensure that all employees have signed telework agreements and will monitor ISED's compliance with the Direction on Prescribed Presence in the Workplace to meet the reporting requirements set out by Treasury Board of Canada Secretariat (TBS).

Our Workforce

ISED is committed to being a leader in anti-racism, diversity, equity, inclusion and accessibility, and fostering organizational well-being. ISED's 2023-2025 Employment Diversity and Inclusion (EDI) strategy emphasizes equity by providing fair opportunities and access, while also highlighting accountability and reporting mechanisms to ensure effective behaviors and tangible results across the organization. As an integral part of the strategy, ISED is piloting a new corporate onboarding program designed to develop a greater sense of belonging within the organization. This program will offer new employees personalized resources, tailored onboarding as well as the opportunity to engage in specialized networking events with ISED's various employee networks.

Through the 2023-2025 Accessibility Plan, ISED is working to identify, remove and prevent barriers not only in the built environment, but also in the areas of culture, employment, accessibility, and communication, with the aim to combat ableist attitudes, enhance inclusive hiring practices, and improve accessibility. To improve the accommodations process, ISED will empower managers to autonomously handle accommodation issues, when possible, provide support when needed and continue to foster awareness, and encourage the pursuit of innovative, inclusive solutions. ISED will continue to implement its 2023-2026 Official Languages (OL) Strategy, incorporating OL policy into departmental strategies, promoting collective leadership, and integrating planned OL improvements to foster linguistic duality within ISED.

In 2024‒25, ISED will implement its updated 2023-2026 Mental Health Strategy which aims to improve psychological health and safety in the workplace; prioritize employee well-being, leading to a healthier and more productive workforce. The strategy also seeks to integrate diversity, equity, and inclusion principles, emphasizing their critical role in creating a supportive work environment where every individual is acknowledged, respected, and valued.

To further support employee mental health and well-being, the Canadian Innovation Centre for Mental Health in the Workplace will continue to offer mental health workshops to ensure managers and employees are aware of the tools and services available to support mental health in the workplace, including but not limited to the Employee Assistance Program (EAP).

In addition to EAP, ISED also offers Ombuds Services and Information Conflict Management Services (ICMS). This year, ISED will work to ensure that its services are accessible and inclusive, and that members of underrepresented groups feel safe and secure in accessing them. Specifically, the Office of the Ombud will reach out to all internal EDI networks to answer questions, address concerns, identify any potential barriers to access, and establish ways to overcome them. The goal of this work is to ensure that employees can discuss any issue—including racism, inclusion, equity, discrimination, or accessibility—in complete confidence and without fear of reprisal.

This year, ISED will undertake a three-year review of the Harassment and Violence prevention program, with a focus on preventative measures and program improvements and to assess program effectiveness. At the same time, the Department will continue to offer employee support regarding harassment, violence, and discrimination issues, including sessions on addressing microaggression while preserving positive working relationships. Additionally, ISED will facilitate safe space discussions with executives, so that they are equipped to facilitate conversations on EDI, harassment, and discrimination with their own teams.

Over the past two years, ISED has implemented phases I and II of its Financial Management Modernization Initiative, to improve financial stewardship and optimize financial management practices as well as to improve access to timely and effective financial management information to support decision making and risk management. To date, ISED has also reinforced accountabilities within the Department and centralized key functions to ensure better alignment under the Chief Financial Officer model. In 2024‒25, ISED will focus on optimizing the model to ensure maximum benefit for the organization. This will be especially important as the Department moves to a risk-based approach to better manage the variety and scope of its Grants and Contributions programs.

ISED will also transition to multi-year budget planning to ensure the Department is well positioned to achieve the Government of Canada saving targets announced in Budget 2023. ISED's finance and human resources teams will work together closely to maximize savings from attrition and realign resources to ensure ongoing program delivery.

To support the advancement of departmental and government priorities across Canada, ISED's regional offices will continue to serve as ISED's ambassadors across the country, providing substantial support to the Department's five ministers by organizing and executing ministerial visits. Regional offices will also continue to gather critical regional intelligence, facilitate relations with ISED's key regional partners, and conduct policy analysis to support the delivery of ISED's programs and services across the country.

In 2024‒25, ISED will continue to modernize and improve its Information Management and Information Technology (IM/IT) infrastructure, tools and services to improve users' digital experience, while maintaining a secure technical environment. In alignment with ISED's recently developed Service & Digital Strategy and Service Improvement Road Map, the Department will continue to monitor service criteria such as online end-to-end access, real-time performance measures, accessibility, service improvement based on client feedback and performance against service standards.

ISED will continue monitoring its cloud-based landscape to ensure that all internal and external services, databases and platforms remain available to users and function without interruption. To enhance its security posture, ISED will continue to advance its detection and response capability, ensuring that the organization is able to respond to cyber threats, and minimize any related impacts.

There is a strong demand within the organization to build a data pipeline and create tools for ISED's programs to enable evidence-based program delivery. Building on the successful development of Power BI dashboards for CDAP, ISED will continue to develop data visualization tools that put real-time program information in the hands of ISED's decision makers. To further support the management and utilization of organizational data, ISED will continue to implement data standards and data integrity measures to ensure the reliability of its data, improve digital information management practices, and manage information sprawl across the organization.

Planned spending: $182,467,251
Planned full-time resources: 1,651

Planning for contracts awarded to Indigenous businesses

To achieve and exceed the 5% Indigenous procurement targets and meet our economic reconciliation obligations, ISED continues to take the following actions:

Communicate ISED's Indigenous Procurement Policy and related processes to advocate and encourage procurement with Indigenous businesses;
Impose mandatory training for Procurement Functional Specialists, Acquisition Cardholders, and staff with low-dollar procurement delegations;
Conduct ISED's Annual Procurement Planning exercise to enable early client engagement with key department officials to maximize opportunity with Indigenous businesses;
Publish Requests for Information to determine if Indigenous capacity exists, as needed;
Apply Procurement Strategy for Indigenous Business (PSIB) and include evaluation criteria in solicitation documents to maximize opportunity for Indigenous businesses to the greatest extent possible;
Award sole source contracts under $40K to Indigenous businesses where capacity and market presence exists and above $40K direction to Indigenous businesses is encouraged.
Unbundle larger contracts when Indigenous capacity exists;
Attend Indigenous job expos to better understand the market and help Indigenous businesses navigate procurement within the federal government; and
Utilize corporate controls and reporting to monitor compliance and achieve the targets.

ISED's targets were determined by analyzing past contracting data. Using this information, procurement opportunities were identified, and ambitious targets were established.

ISED reviews purchasing activity and compares it with the Indigenous Business Directory (IBD). Where no capacity exists, ISED established exempted commodities, for Deputy Minister (DM) approval. ISED annually reviews the Indigenous Business Directory IBD to determine if updates to the exemptions apply.

The potential challenges in meeting the minimum 5% target for ISED's commonly purchased commodities include lack of competitive pricing, limited capacity and gaps in expertise.

In 2024–25, ISED plans to establish a means to report acquisition card purchases with Indigenous businesses with the goal of increasing ISED's procurement results.

Planned spending and human resources

This section provides an overview of ISED's planned spending and human resources for the next three fiscal years and compares planned spending for 2024–25 with actual spending from previous years.

Table 6: Actual spending summary for core responsibilities and internal services ($ dollars)

The following table shows information on spending for each of ISED's core responsibilities and for its internal services for the previous three fiscal years. Amounts for the current fiscal year are forecasted based on spending to date.

Table 6 Notes

The variance primarily reflects actual spending under the Universal Broadband Fund, which was lower in 2022–23 as a result of the proposal assessment process and contribution agreement negotiations.

Also reflected is the funding profile for the Canada Digital Adoption Program: Stream 1.

Return to table 6 note 1 referrer

The increase reflects the actual spending related to the implementation of the Strategic Science Fund and the National Quantum Strategy.

Return to table 6 note 2 referrer

The increase in actual spending primarily reflects the funding profiles of the Strategic Innovation Fund, the Canada Digital Adoption Program: Stream 2 and the Canada Foundation for Sustainable Development Technology.

Return to table 6 note 3 referrer

The variance in actual spending primarily reflects spending to support various departmental initiatives such as Diversity & Inclusion, Workload Migration and Future of Work.

Return to table 6 note 4 referrer

Table 7: Budgetary planning summary for core responsibilities and internal services (dollars)

The following table shows information on spending for each of ISED's core responsibilities and for its internal services for the upcoming three fiscal years.

Table 7 Notes

The variance in planned spending reflects a fluctuation in the approved funding profile of the Universal Broadband Fund, offset by the end of funding for several programs such as the Canada Digital Adoption Program: Stream 1, the Small Business and Entrepreneurship Development Program and the Women's Entrepreneurship Program.

Return to table 7 note 1 referrer

The variance in planned spending primarily reflects a decrease in the approved funding profile of the Digital Research Infrastructure Strategy. Also reflected is the winding down of several programs such as Genome Canada, adMare Bioinnovations, Stem Cell Network.

Return to table 7 note 2 referrer

Planned spending primarily reflects new funding announced in Budget 2023 for the Strategic Innovation Fund to support battery manufacturing in Canada. Also reflected is the end of temporary funding for several programs such as the Canada Digital Adoption Program: Stream 2, Upskilling for Industry Initiative, New Generation Wireless Technology Initiative, Zero Emissions Vehicles and Fuels Regulatory.

Return to table 7 note 3 referrer

The budget reduction related to the Refocusing Government Spending is reflected among all core responsibilities, to reach $191.6 million by 2026–27.

Return to table 7 note 4 referrer

Table 8: 2024–25 budgetary gross and net planned spending summary (dollars)

The following table reconciles gross planned spending with net planned spending for 2024–25.

ISED's 2024-25 Budgetary Planned Gross Spending is $6.5 billion, which includes $374.4 million in vote netted revenues, accounting for total planned net spending of $6.1 billion.

The ISED vote netted revenue authorities are those referred to in paragraph 29.1(2)(a) of the Financial Administration Act (i.e. revenue received by the department in a fiscal year through the conduct of its operations, which the department is authorized to expend in order to offset expenditures incurred in that fiscal year) from the following sources:

the provision of internal support services under section 29.2 of that Act, and the provision of internal support services to the Canadian Intellectual Property Office;
activities and operations related to communications research at the Communication Research Centre;
services and insolvency processes under the Bankruptcy and Insolvency Act at the Office of the Superintendent of Bankruptcy;
activities and operations carried out by Corporations Canada under the Canada Business Corporations Act, the Boards of Trade Act, the Canada Cooperatives Act and the Canada Not-for-profit Corporations Act; and
services and regulatory processes for mergers and merger-related matters, including pre-merger notifications, advance ruling certificates and written opinions, under the Competition Act at the Competition Bureau.

The following graph presents planned spending (voted and statutory expenditures) over time.

Departmental spending 2021–22 to 2026–27. Text version below:

The variance in future years is primarily related to the fluctuations in the cashflow profiles of transfer payment programs.

Estimates by vote

Information on ISED's organizational appropriations is available in the 2024–25 Main Estimates . Footnote xiii

The future-oriented condensed statement of operations provides an overview of ISED's operations for 2023–24 to 2024–25.

The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.

A more detailed future-oriented statement of operations and associated notes, including a reconciliation of the net cost of operations with the requested authorities, are available at ISED's website . Footnote xiv

Table 9: Future-oriented condensed statement of operations for the year ending March 31, 2025 (dollars)

The expected variance in total expenses year-over-year is mainly attributable to increases in transfer payments, particularly in the Strategic Innovation Fund, the Canada Foundation for Innovation, the Digital Research Infrastructure Strategy and the Universal Broadband Fund. Given the complexity of some of ISED's programming, and the requirement to align the funding profile with the recipients forecasted spending, further changes to the 2024–25 planned results could occur during the fiscal year.

Total revenues (net of those earned on behalf of government) are projected to increase year-over-year, mainly as the Canadian Intellectual Property Office (CIPO)'s revolving fund expects to collect higher revenues due to fee increases and increased examination capacity.

Table 10: Actual human resources for core responsibilities and internal services

The following table shows a summary of human resources, in full-time equivalents (FTEs), for ISED's core responsibilities and for its internal services for the previous three fiscal years. Human resources for the current fiscal year are forecasted based on year to date.

Table 10 Notes

The increase in actual and forecast FTEs is due to new temporary employees in support of the implementation of the Canada Digital Adoption Program: Stream 1 and the Universal Broadband Fund.

Return to table 10 note 1 referrer

The increase in actual and forecast FTEs is due to the implementation of the Strategic Science Fund Program and the launch of the National Quantum Strategy.

Return to table 10 note 2 referrer

Table 11: Human resources planning summary for core responsibilities and internal services

The following table shows information on human resources, in full-time equivalents (FTEs), for each of ISED's core responsibilities and for its internal services planned for 2024–25 and future years.

Table 11 Notes

The decrease is due to the winding down of funding for the Canada Digital Adoption Program: Stream 1 and the Universal Broadband Fund.

Return to table 11 note 1 referrer

The decrease is due to the winding down of funding for the Canada Digital Adoption Program: Stream 2 and the funding for the Budget 2021 measures entitled Charging and Fueling Zero Emission Vehicles; and Supporting the Production and Use of Clean Fuels.

Return to table 11 note 2 referrer

FTE totals may not add due to rounding.

Return to table 11 note 3 referrer

The reduction in Full Time Equivalent related to the Refocusing Government Spending, which will be achieved by not backfilling certain positions as they vacate through attrition, is reflected among all core responsibilities, to reach 94 FTE by 2026–27.

Return to table 11 note 4 referrer

Return to table 11 note 5 referrer

Appropriate minister(s):

Minister of innovation, science and industry.

The Honourable François-Philippe Champagne, P.C., M.P.

Minister of Export Promotion, International Trade and Economic Development

The Honourable Mary Ng, P.C., M.P.

Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

The Honourable Soraya Martinez Ferrada, P.C., M.P.

Opportunities Agency

Minister of small business.

The Honourable Rechie Valdez, P.C., M.P.

Deputy ministers:

Simon Kennedy

Francis Bilodeau

Ministerial portfolio:

Innovation, Science and Economic Development Footnote xv

Enabling instrument(s):

Innovation, Science and Economic Development Canada's founding legislation is the Department of Industry Act , S.C. 1995, c.1. Footnote xvi

Year of incorporation / commencement:

Mailing address:.

Corporate Management Sector Innovation, Science and Economic Development Canada 235 Queen Street 2nd Floor, East Tower Ottawa, ON K1A 0H5

613-954-5031

1-866-694-8389

613-954-2340

ic.info–info.ic@ised–isde.gc.ca

Website(s):

https://ised-isde.canada.ca/site/ised/en

The following supplementary information tables are available on ISED's website:

Details on transfer payment programs
Gender-based analysis plus
Horizontal initiatives
Up front multiyear funding

Information on ISED's departmental sustainable development strategy can be found on ISED's website . Footnote x

ISED's Departmental Plan does not include information on tax expenditures.

Tax expenditures are the responsibility of the Minister of Finance. The Department of Finance Canada publishes cost estimates and projections for government‑wide tax expenditures each year in the Report on Federal Tax Expenditures . Footnote xvii

This report provides detailed information on tax expenditures, including objectives, historical background and references to related federal spending programs, as well as evaluations, research papers and gender-based analysis plus.

For the purpose of the 2024–25 Departmental Plan, government-wide priorities are the high-level themes outlining the government's agenda in the 2021 Speech from the Throne: building a healthier today and tomorrow; growing a more resilient economy; bolder climate action; fighter harder for safer communities; standing up for diversity and inclusion; moving faster on the path to reconciliation and fighting for a secure, just, and equitable world.

An initiative in which two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.

For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

Individual or groups of services, activities or combinations thereof that are managed together within a department and that focus on a specific set of outputs, outcomes or service levels.

An inventory of a department's programs that describes how resources are organized to carry out the department's core responsibilities and achieve its planned results.

An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead, they are within the area of the organization's influence.

Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

Expenditures that Parliament approves annually through an Appropriation Act. The vote wording becomes the governing conditions under which these expenditures may be made.

COMMENTS

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Article contents

Introduction

Alternative Tourism and Sustainable Development

Community-Based Tourism

Pro-Poor Tourism

Slow Tourism

Impacts of Tourism Development

Economic Impacts of Tourism

Environmental Impacts of Tourism

Social Impacts of Tourism

Sustainability of Tourism

Further Reading

14 important environmental impacts of tourism + explanations + examples

Why the environment is so important to tourism

Negative environmental impacts of tourism

Depletion of natural resources

Physical impacts of tourism development

Physical impacts from tourist activities

The carbon footprint of global tourism

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Impact of tourism development upon environmental sustainability: a suggested framework for sustainable ecotourism

Syed Naseeb Shah

Muhammad Sheeraz

Muhammad Asadullah

Sourath Mahar

Asia Umar Khan

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Introduction

Literature review

Environment and sustainability of ecosystem

Government support and policy interventions

Theoretical support and hypothesis development

Methodology

Analysis and results

Suggested model for ecotourism framework

Conclusion, implications, and limitations of the study

Practical implications

Study limitation

Author contribution

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Sustainable tourism

Description

UNWTO Annual Report 2015

UNWTO Annual Report 2016

Emerging Issues for Small Island Developing States

Transforming our World: The 2030 Agenda for Sustainable Development