TMG – The sustainable tourism market is forecasted to reach US$11.4 trillion globally by 2032, with a compound annual growth rate of 14% from 2023 to 2032, according to the latest report published by Allied Market Research in September 2024.
Valued at USD$3.3 trillion in 2022, the sustainable tourism market is on the rise, as demand and the number of eco-friendly tourist destinations continue to increase. This market will play an important role in shaping the future of the global tourism industry.
In Vietnam, tourism businesses are increasingly moving towards being more sustainable, contributing to building a green economy and achieving the goal of sustainable economic development.
Green, sustainable tourism trends
Sustainable tourism has emerged as a major trend in the tourism industry in recent years, especially with increasing concerns about environmental issues and the need for responsible travel. Tourists are now looking for destinations, accommodations and tour operators that are environmentally friendly and who prioritize sustainability. This is a popular trend globally and is gradually gaining the attention of Vietnamese tourists.
According to the 2023 APAC Travel Confidence Index study by Booking.com, 80% of travelers from Vietnam are very concerned about sustainability when making travel choices and appreciate “the importance of making sustainable travel decisions”.
Significantly, 73% of Vietnamese tourists are willing to pay more to stay at more sustainable accommodations. This is the highest percentage among the 11 countries and territories surveyed in the Asia-Pacific region.
The above data clearly shows the benefits of businesses implementing more sustainable products and services. At the same time, it reflects pressure from the market, requiring businesses to rethink, redesign and rebuild products and business strategies.
Speaking to Lao Dong newspaper, Ms. Mallory Ewer-Speck, Thien Minh Group’s sustainability manager, said that green and sustainable tourism in Vietnam is not simply a “trend” but will continue to develop and become the “standard” that’s widely accepted by tourists.
“Sustainability will continue to be a top priority, especially when we all directly experience the consequences of climate change,” said Ms. Ewer-Speck. “One of the most obvious problems that tourists can see is plastic pollution. We need to address this problem, otherwise tourists may choose other greener, cleaner, more pristine destinations instead or come to Vietnam and not return.”
Sustainability in strategy
Since the United Nations adopted the Sustainable Development Goals (SDGs) in 2015, many countries, including Vietnam, have begun to transition to a circular economy model.
The signing of EVFTA in 2019, along with environmental commitments in response to climate change and transitioning to a low-emission economy, has defined an important goal for Vietnam: Transforming from a “brown economy” – a traditional economy that consumes natural resources and emits a large volume of emissions – to a “green economy” that is environmentally friendly and conserves natural resources.
Keywords like “green growth” and “circular economy” can be found in the National Green Growth Strategy for 2021-2030, with a vision to 2050 according to Decision No. 1658/QD-TTg in 2021; The “Developing a circular economy in Vietnam” project approved by the Prime Minister in 2022; and the National Action Plan on green growth for 2021-2030.
There are two specific goals related to tourism in the Action Plan to implement the National Strategy on green growth. The first is to improve institutions and policies for managing the development of tourism with the aim of green and sustainable growth.
The second is to prioritize the development of tourism segments towards green growth (ecotourism, community tourism, agricultural and rural tourism, island resort tourism associated with the development of the blue economy, adventure sports tourism ensuring green standards and criteria…) and developing green tourism products.
The fact is green transformation requires time and a specific roadmap as this process involves many different entities, departments, people, etc.
According to the Vietnam National Authority of Tourism, the process of implementing a development model towards green growth to enable green transformation requires the participation of many parties.
In particular, management agencies need to create and refine policies and mechanisms for tourism development and the development of related fields in accordance with the policies and regulations of the State and the Government. Specialized management agencies are tasked with researching and advising the People’s Committee at higher levels to issue policies, mechanisms, plans, etc., and organizing the development and guiding the implementation of such.
The Tourism Development Management Board or Cooperative should develop regulations for managing local tourism activities, organize the implementation of tourism activities, support the supervision of production and business activities, and gather information, feedback, and community recommendations to collate and report to management agencies for resolution and handling.
Households or individuals in the local community that are involved in tourism services need to participate in creating suitable services and products that meet the needs of tourists.
Local communities that are not directly involved in providing tourism services can still participate in activities aimed at protecting the environment and preserving the culture of the local community to improve living conditions.
On-site businesses in the area should develop green tourism products that meet the “demands” of the market. Entities must aim to use environmentally-friendly technology, participate in creating and strictly implementing benefit sharing mechanisms to ensure the rights of participating parties, support environmental protection activities, protect resources as well as contribute to improving policies and adjusting plans as needed.
From the business perspective, Mr. Phung Quang Thang, Permanent Vice President of the Vietnam Tourism Association, noted that the key factors to creating green tourism products include: environmental protection, promoting local cultural values, supporting the community and applying green technology. In order for businesses to create green tourism products the right way, local authorities play a very important role in the implementation process.
“Any area that is new to tourism development needs to orientate towards green tourism from the beginning,” said Mr. Thang. “When those involved in tourism consult policies and guidelines, things will happen easily and more effectively. Those with experience need to find various ways to spread green transformation throughout the tourism sector.”
To help travel businesses provide green tourism products, the Association has established the Vietnam Green Tourism Association to attract members who are actively involved in green transformation. From there, it’s a matter of finding a way to involve more businesses and to spread the message.
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Established in 1994, TMG has grown from a company with just three employees to an enterprise with more than 2,500 employees worldwide. Thien Minh is now Asia’s leading package travel provider, founded on the mission of always putting our clients front and center. With four business pillars: Destination Management, Hospitality, Online, Aviation – TMG is the ideal host for distinctive journeys featuring truly memorable travel experiences.
