Positive Economic Impacts

From a development perspective, a tourism business’s success will be reflected in its total direct, indirect, and induced economic impacts. Such effects generate employment and business opportunities while improving the bottom line, furthering economic development, and contributing to a region’s overall appeal.

Since sustainable tourism focuses on generating positive impacts, let’s take a close look at benefits for business.

Improved profitability and competitive advantage

Corporate responsibility has become a competitive advantage. Sustainability can and should be seen as an integral part of any business in good times and bad. Industry leaders now put more effort into and apply more resources toward “green” initiatives during trying economic times which enable them to cut costs as well as increase competitive advantage.

Increased market strength and customer loyalty

Research shows that when consumers perceive quality and convenience as equal, they select eco-friendly products and services when available — and some even pay 5-10% more. Thirty percent of adult Americans or 58.5 million people make purchases based on personal, social, and environmental values (Natural Marketing Institute, 2008).

Attraction of talent and enhanced employee loyalty

Sustainability is a key value of today’s new workforce. A company committed to this value holds a market advantage in recruiting talent. Both graduates and industry professionals increasingly look for green jobs. A poll on green employment in the Wall Street Journal found that 80% of young professionals are interested in a job that positively affects the environment, and 92% would be more inclined to work for an environmentally friendly company (Mattioli, 2007). To facilitate this, they need to understand their employer objectives and have a stake in setting them.