Tourism is essential to the livelihood of destinations worldwide. Before the COVID-19 pandemic, the World Travel and Tourism Council (WTTC) reported that travel and tourism contributed 10.4 per cent, or $10 trillion, of global gross domestic product (GDP) in 2019 and that between 2014 and 2019, one in five new jobs created globally came from the travel and tourism sector.
As the sector continues to recover from the pandemic, travel and tourism contributed 7.6 per cent to global GDP in 2022, an increase of 22 per cent from 2021. Industry experts forecast this will continue to rise, reestablishing the sector as a critical economic driver and vehicle for national development, particularly in developing countries.
However, if not managed responsibly, tourism can have unintended consequences on a destination’s local communities, natural environment, and ecosystem.
The call for responsible tourism and sustainability is even more urgent in the face of climate change, as tourism contributes approximately 8 per cent of global greenhouse gas emissions (GHG) — a figure that is anticipated to double by 2050, along with water and energy consumption.
Overuse or mismanagement of shared resources can also result in the degradation of natural habitats and negatively impact the health of local wildlife. Meanwhile, tourism leakage — or when tourism revenue leaves the local community to a foreign or corporate entity — is also a major challenge, as it can lead to vast socioeconomic inequalities within a destination, particularly in developing countries.
As destinations around the globe consider how to embrace tourism’s positive benefits while minimizing the potential negative consequences, new solutions are emerging. According to the United Nations Environmental Programme, a key solution to reduce the negative environmental, economic, and social impacts of tourism is to “think local” by implementing sustainable sourcing and procurement procedures in the tourism supply chain — a practice that’s increasingly referred to as “local sourcing.”
Today, there is a growing call for destination leaders, including DMOs and DMCs, tourism business owners, and governments, to take action, assess their supply chains, and identify opportunities to integrate more locally sourced tourism strategies.
Local sourcing will play an important role in promoting sustain- able tourism development and significantly contributing to the socioeconomic vitality of a destination. Tourism businesses that purchase supplies locally create income opportunities for small-scale entrepreneurs and communities, thus stimulating the local economy. In addition to reducing tourism leakage, this promotes economic diversification and helps to reduce poverty and unemployment, particularly in developing coun- tries. Sourcing locally also fosters cultural preservation and community engagement by showcasing and incorporating local traditions, crafts, and cuisines.
Yet the path to determining a local sourcing strategy can seem daunting and complex to a destination just starting to explore a more sustainable tourism strategy. How can they develop a plan that considers the unique aspects of their geographic location, natural resources, and the needs of their local communities? And most importantly, how can they quantifiably measure the success of their efforts?
In this report, Skift and the Sustainable Tourism Global Center (STGC), initiated by the Ministry of Tourism of Saudi Arabia, offer guidance on how destination leaders can create a new path to sustainably, benefit from tourism, centred on sourcing locally — one that purposefully integrates the social-cultural, environmental, and economic implications of sustainable supply chains in ways that improve the health of the destinations where they occur. The report also highlights best practices from successful destinations around the world, inspiring destination leaders to reimagine what their local sourcing should look like and how they can optimize their economic return on investment while still protecting natural and cultural heritage.
Tourism is essential to the livelihood of destinations worldwide. Before the COVID-19 pandemic, the World Travel and Tourism Council (WTTC) reported that travel and tourism contributed 10.4 per cent, or $10 trillion, of global gross domestic product (GDP) in 2019 and that between 2014 and 2019, one in five new jobs created globally came from the travel and tourism sector.
As the sector continues to recover from the pandemic, travel and tourism contributed 7.6 per cent to global GDP in 2022, an increase of 22 per cent from 2021. Industry experts forecast this will continue to rise, reestablishing the sector as a critical economic driver and vehicle for national development, particularly in developing countries.
However, if not managed responsibly, tourism can have unintended consequences on a destination’s local communities, natural environment, and ecosystem.
The call for responsible tourism and sustainability is even more urgent in the face of climate change, as tourism contributes approximately 8 per cent of global greenhouse gas emissions (GHG) — a figure that is anticipated to double by 2050, along with water and energy consumption.
Overuse or mismanagement of shared resources can also result in the degradation of natural habitats and negatively impact the health of local wildlife. Meanwhile, tourism leakage — or when tourism revenue leaves the local community to a foreign or corporate entity — is also a major challenge, as it can lead to vast socioeconomic inequalities within a destination, particularly in developing countries.
As destinations around the globe consider how to embrace tourism’s positive benefits while minimizing the potential negative consequences, new solutions are emerging. According to the United Nations Environmental Programme, a key solution to reduce the negative environmental, economic, and social impacts of tourism is to “think local” by implementing sustainable sourcing and procurement procedures in the tourism supply chain — a practice that’s increasingly referred to as “local sourcing.”
Today, there is a growing call for destination leaders, including DMOs and DMCs, tourism business owners, and governments, to take action, assess their supply chains, and identify opportunities to integrate more locally sourced tourism strategies.
Local sourcing will play an important role in promoting sustain- able tourism development and significantly contributing to the socioeconomic vitality of a destination. Tourism businesses that purchase supplies locally create income opportunities for small-scale entrepreneurs and communities, thus stimulating the local economy. In addition to reducing tourism leakage, this promotes economic diversification and helps to reduce poverty and unemployment, particularly in developing coun- tries. Sourcing locally also fosters cultural preservation and community engagement by showcasing and incorporating local traditions, crafts, and cuisines.
Yet the path to determining a local sourcing strategy can seem daunting and complex to a destination just starting to explore a more sustainable tourism strategy. How can they develop a plan that considers the unique aspects of their geographic location, natural resources, and the needs of their local communities? And most importantly, how can they quantifiably measure the success of their efforts?
In this report, Skift and the Sustainable Tourism Global Center (STGC), initiated by the Ministry of Tourism of Saudi Arabia, offer guidance on how destination leaders can create a new path to sustainably, benefit from tourism, centred on sourcing locally — one that purposefully integrates the social-cultural, environmental, and economic implications of sustainable supply chains in ways that improve the health of the destinations where they occur. The report also highlights best practices from successful destinations around the world, inspiring destination leaders to reimagine what their local sourcing should look like and how they can optimize their economic return on investment while still protecting natural and cultural heritage.
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