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Tourism and Competitiveness

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The tourism sector provides opportunities for developing countries to create productive and inclusive jobs, grow innovative firms, finance the conservation of natural and cultural assets, and increase economic empowerment, especially for women, who comprise the majority of the tourism sector’s workforce. Before the COVID-19 pandemic, tourism was the world’s largest service sector—providing one in ten jobs worldwide,  almost seven percent of all international trade and  25 percent of the world’s service exports —a critical foreign exchange generator.  In 2019 the sector was valued at more than US$9 trillion and accounted for 10.4 percent of global GDP.

Tourism offers opportunities for economic diversification and market-creation. When effectively managed, its deep local value chains can expand demand for existing and new products and services that directly and positively impact the poor and rural/isolated communities. The sector can also be a force for biodiversity conservation, heritage protection, and climate-friendly livelihoods, making up a key pillar of the blue/green economy. This potential is also associated with social and environmental risks, which need to be managed and mitigated to maximize the sector’s net-positive benefits.

The impact of the COVID-19 pandemic has been devastating for tourism service providers, with a loss of 20 percent of all tourism jobs (62 million), and US$1.3 trillion in export revenue, leading to a reduction of 50 percent of its  contribution to GDP  in 2020 alone. The collapse of demand has severely impacted the livelihoods of tourism-dependent communities, small businesses and women-run enterprises. It has also reduced government tax revenues and constrained the availability of resources for destination management and site conservation.

Naturalist local guide with group of tourist in Cuyabeno Wildlife Reserve Ecuador. Photo: Ammit Jack/Shutterstock

Tourism and Competitiveness Strategic Pillars

Our solutions are integrated across the following areas:

• Competitive and Productive Tourism Markets. We work with government and private sector stakeholders to foster competitive tourism markets that create productive jobs, improve visitor expenditure and impact, and are supportive of high-growth, innovative firms. To do so we offer guidance on firm and destination level recovery, policy and regulatory reforms, demand diversification, investment promotion and market access. 
• Blue, Green and Resilient Tourism Economies. We support economic diversification to sustain natural capital and tourism assets, prepare for external and climate-related shocks, and be sustainably managed through strong policy, coordination, and governance improvements. To do so we offer support to align the tourism enabling and policy environment towards sustainability, while improving tourism destination and site planning, development, and management. We work with governments to enhance the sector’s resilience and to foster the development of innovative sustainable financing instruments.
• Inclusive Value Chains. We work with client governments and intermediaries to support Small and Medium sized Enterprises (SMEs), and strengthen value chains that provide equitable livelihoods for communities, women, youth, minorities, and local businesses. 

The successful design and implementation of reforms in the tourism space requires the combined effort of diverse line ministries and agencies, and an understanding of the impact of digital technologies in the industry. Accordingly, our teams support cross-cutting issues of tourism governance and coordination, digital innovation and the use and application of data throughout the three focus areas of work.

Tourism and Competitiveness Theory of Change 

Examples of our projects:

• In Indonesia , a US$955m loan is supporting the Government’s Integrated Infrastructure Development for National Tourism Strategic Areas Project. This project is designed to improve the quality of, and access to, tourism-relevant basic infrastructure and services, strengthen local economy linkages to tourism, and attract private investment in selected tourism destinations. In its initial phases, the project has supported detailed market and demand analyses needed to justify significant public investment, mobilized integrated tourism destination masterplans for each new destination and established essential coordination mechanisms at the national level and at all seventeen of the Project’s participating districts and cities.
• In Madagascar , a series of projects totaling US$450m in lending and IFC Technical Assistance have contributed to the sustainable growth of the tourism sector by enhancing access to enabling infrastructure and services in target regions. Activities under the project focused on providing support to SMEs, capacity building to institutions, and promoting investment and enabling environment reforms. They resulted in the creation of more than 10,000 jobs and the registration of more than 30,000 businesses. As a result of COVID-19, the project provided emergency support both to government institutions (i.e., Ministry of Tourism) and other organizations such as the National Tourism Promotion Board to plan, strategize and implement initiatives to address effects of the pandemic and support the sector’s gradual relaunch, as well as to directly support tourism companies and workers groups most affected by the crisis. 
• In Sierra Leone , an Economic Diversification Project has a strong focus on sustainable tourism development.  The project is contributing significantly to the COVID-19 recovery, with its focus on the creation of six new tourism destinations, attracting new private investment, and building the capacity of government ministries to successfully manage and market their tourism assets.  This project aims to contribute to the development of more circular economy tourism business models, and support the growth of women- run tourism businesses.  
• Through the Rebuilding Tourism Competitiveness: Tourism Response, Recovery and Resilience to the COVID-19 Crisis initiative and the Tourism for Development Learning Series , we held webinars, published insights and guidance notes as well as formed new partnerships with Organization of Eastern Caribbean States, United Nations Environment Program, United Nations World Tourism Organization, and World Travel and Tourism Council to exchange knowledge on managing tourism throughout the pandemic, planning for recovery and building back better. The initiative’s key Policy Note has been downloaded more than 20,000 times and has been used to inform recovery initiatives in over 30 countries across 6 regions.
• The Global Aviation Dashboard  is a platform that visualizes real-time changes in global flight movements, allowing users to generate 2D & 3D visualizations, charts, graphs, and tables; and ranking animations for: flight volume, seat volume, and available seat kilometers.  Data is available for domestic, intra-regional, and inter-regional routes across all regions, countries, airports, and airlines on a daily, weekly, or monthly basis from January 2020 until today. The dashboard has been used to track the status and recovery of global travel and inform policy and operational actions.

Traditional Samburu women in Kenya. Photo: hecke61/Shutterstock.

Featured Data

We-Fi WeTour Women in Tourism Enterprise Surveys (2019)

• Sierra Leone  |  Ghana

Featured Reports 

• Destination Management Handbook: A Guide to the Planning and Implementation of Destination Management  (2023)
• Blue Tourism in Islands and Small Tourism-Dependent Coastal States : Tools and Recovery Strategies (2022)
• Resilient Tourism: Competitiveness in the Face of Disasters  (2020)
• Tourism and the Sharing Economy: Policy and Potential of Sustainable Peer-to-Peer Accommodation  (2018)
• Supporting Sustainable Livelihoods through Wildlife Tourism  (2018)
• The Voice of Travelers: Leveraging User-Generated Content for Tourism Development  (2018)
• Women and Tourism: Designing for Inclusion  (2017)
• Twenty Reasons Sustainable Tourism Counts for Development  (2017)
• An introduction to tourism concessioning:14 characteristics of successful programs.  The World Bank, 2016)
• Getting financed: 9 tips for community joint ventures in tourism . World Wildlife Fund (WWF) and World Bank, (2015)
• Global investment promotion best practices: Winning tourism investment” Investment Climate  (2013)

Country-Specific

• COVID-19 and Tourism in South Asia: Opportunities for Sustainable Regional Outcomes  (2020)
• Demand Analysis for Tourism in African Local Communities  (2018)
• Tourism in Africa: Harnessing Tourism for Growth and Improved Livelihoods . Africa Development Forum (2014)

COVID-19 Response

• Expecting the Unexpected : Tools and Policy Considerations to Support the Recovery and Resilience of the Tourism Sector (2022)
• Rebuilding Tourism Competitiveness. Tourism response, recovery and resilience to the COVID-19 crisis  (2020)
• COVID-19 and Tourism in South Asia Opportunities for Sustainable Regional Outcomes  (2020)  
• WBG support for tourism clients and destinations during the COVID-19 crisis  (2020)
• Tourism for Development: Tourism Diagnostic Toolkit  (2019)
• Tourism Theory of Change  (2018)

Country   -Specific

• COVID Impact Mitigation Survey Results  (South Africa) (2020)
• COVID Preparedness for Reopening Survey Results  (South Africa) (2020)
• COVID Study  (Fiji) (2020) with   IFC

Featured Blogs

• Fiona Stewart, Samantha Power & Shaun Mann ,  Harnessing the power of capital markets to conserve and restore global biodiversity through “Natural Asset Companies”   | October 12 th  2021
• Mari Elka Pangestu ,  Tourism in the post-COVID world: Three steps to build better forward  | April 30 th  2021
• Hartwig Schafer ,  Regional collaboration can help South Asian nations rebuild and strengthen tourism industry  | July 23 rd  2020
• Caroline Freund ,  We can’t travel, but we can take measures to preserve jobs in the tourism industry  | March 20 th  2020

Featured Webinars

• Destination Management for Resilient Growth . This webinar looks at emerging destinations at the local level to examine the opportunities, examples, and best tools available. Destination Management Handbook
• Launch of the Future of Pacific Tourism. This webinar goes through the results of the new Future of Pacific Tourism report. It was launched by FCI Regional and Global Managers with Discussants from the Asian Development Bank and Intrepid Group.
• Circular Economy and Tourism . This webinar discusses how new and circular business models are needed to change the way tourism operates and enable businesses and destinations to be sustainable.
• Closing the Gap: Gender in Projects and Analytics .  The purpose of this webinar is to raise awareness on integrating gender considerations into projects and provide guidelines for future project design in various sectoral areas.
• WTO Tourism Resilience: Building forward Better. High-level panelists from Sri Lanka, Costa Rica, Jordan and Kenya discuss how donors, governments and the private sector can work together most effectively to rebuild the tourism industry and improve its resilience for the future.
• Tourism Watch
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Launch of Blue Tourism Resource Portal

UN Tourism | Bringing the world closer

Global and regional tourism performance

• international tourist arrivals and receipts and export revenues
• international tourism expenditure and departures
• Seasonality
• Tourism Flows
• Accommodation
• Tourism GDP and Employment
• Domestic Tourism

The UNWTO Tourism Data Dashboard – provides statistics and insights on key indicators for inbound and outbound tourism at the global, regional and national levels. Data covers tourist arrivals, tourism receipts, tourism share of exports and contribution to GDP, source markets, seasonality, domestic tourism and data on accommodation and employment.

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Travel and Tourism

Travel and tourism satellite account for 2017-2021.

The travel and tourism industry—as measured by the real output of goods and services sold directly to visitors—increased 64.4 percent in 2021 after decreasing 50.7 percent in 2020, according to the most recent statistics from BEA’s Travel and Tourism Satellite Account.

Data & Articles

• U.S. Travel and Tourism Satellite Account for 2017–2021 By Sarah Osborne - Survey of Current Business February 2023
• "U.S. Travel and Tourism Satellite Account for 2015–2019" By Sarah Osborne - Survey of Current Business December 2020
• "U.S. Travel and Tourism Satellite Account for 2015-2017" By Sarah Osborne and Seth Markowitz - Survey of Current Business June 2018
• Tourism Satellite Accounts 1998-2019
• Tourism Satellite Accounts Data Sheets A complete set of detailed annual statistics for 2017-2021 is coming soon -->
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Previously Published Estimates

• Data Archive This page provides access to an archive of estimates previously published by the Bureau of Economic Analysis. Please note that this archive is provided for research only. The estimates contained in this archive include revisions to prior estimates and may not reflect the most recent revision for a particular period.
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What is Travel and Tourism?

Measures how much tourists spend and the prices they pay for lodging, airfare, souvenirs, and other travel-related items. These statistics also provide a snapshot of employment in the travel and tourism industries.

What’s a Satellite Account?

• TTSA Sarah Osborne (301) 278-9459
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• Tourism receipts and spending

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Tourism receipts and spending are made up of travel credits and debits. In the context of the balance of payments of a country, the term “travel” refers only to the value of spending of individuals while on visits outside their country of residence. This indicator is measured in US dollars.

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Tourism receipts and spending Source: Receipts and expenditure

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California Office of Tourism

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Calculate Assessment

How to calculate your assessment.

The tourism assessment fee is based on California gross receipts from the most current available year-end revenue data. The reporting period should match the period used to report revenue for annual tax purposes. The Tourism Assessment Program monitors the year-end dates reported to verify that a company is reporting consistently. The formula for filing your assessment is:

(Total Gross Receipts X Percentage of Tourism X Assessment Rate) See below for help with Percentage of Tourism and Assessment Rate

Click here to file your assessment online now.

Total Gross Receipts

California Gross Receipts as defined in the Tourism Marketing Act: (l) “California Gross Receipts” means gross receipts minus returns and allowances from sales in California. Examples of California Gross Receipts are the amount shown on line 1c of Schedule F, Form 100 of the California Franchise Tax Board, 1996 revision date, line 3 on Schedule C, Form 1040 of the Internal Revenue Service, 1996 revision date, or for multi-state operations, column (b) on line 3, “total sales” of schedule R-1 of the California Franchise Tax Board, 1996 revision date.

About The Assessment Rates

Effective July 1, 2015 , assessment rates are as follows:

• For Accommodations, $1,950 per $1 million of travel and tourism revenue or 0.00195
• For Restaurants & Retail, $975 per $1 million of travel and tourism revenue or 0.000975.
• For Attractions & Recreation, $975 per $1 million of travel and tourism revenue or 0.000975.
• For Transportation & Travel Services, $975 per $1 million of travel and tourism revenue or 0.000975.
• For Passenger Car Rental, 3.5% of monthly revenue.

These assessment rates apply to assessments that are delinquent as of July 1, 2015.

Percentage Of Tourism

The percentage of revenue derived from travel and tourism is determined by each business location. Tourism percentage should reflect the amount of revenue that meets the travel and tourism revenue definition.

“Travel and Tourism Revenue” means California Gross Receipts derived from expenditures to and/or within California by people who (1) travel at least fifty (50) miles from home, one way, for purposes other than commuting to work or school; or (2) have an overnight accommodation as part of the travel, regardless of the distance or purpose traveled. “Home” as used in this definition means the place where the person has resided for the most recent 31 consecutive days.

Any revenue earned by an accommodation in conjunction with an overnight stay or by a traveler more than 50 miles from home is assessable. Revenue earned from guests staying 31 continuous nights or longer is not subject to the assessment.

Revenue derived from any individual or group of persons who travel 50 miles or more to a business location is considered travel and tourism revenue for a business within the attractions and recreation, transportation and travel services, or restaurant and retail industry categories. The business location and proximity to major freeways, attractions, outlet/premium shopping malls, lodging, or destination locations and venues should be considered when determining the percentage of revenue earned from travel and tourism. In addition, the business’ credit card data, market research, consumer surveys or analysis can provide contextual information to assist in determining percentage of tourism.

Each business can use any method to determine the percentage of revenue from tourism but may be required by the Office of Tourism to provide the documentation of the findings if the percentages are inconsistent with numbers reported in the given area.

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Example sentences tourism revenue

Tourism revenue , a vital source of income, has plunged by 2.4 billion.

The government aspires to triple tourism revenue to £5.2 billion by 2025.

The rule was designed to stop locals being influenced by the more permissive side of tourism, but the side effect was that island communities were denied access to tourism revenue .

In return for tourism revenue , the government will commit to preserve its forests, a natural vault for billions of tons of carbon that would otherwise be released into the atmosphere.

This year, tourism revenue may fall by nearly 30 per cent from last year, according to the local government tourist office.

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Definition of 'tourism' tourism

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Travel & Tourism - Worldwide

• The Travel & Tourism market is projected to experience a significant increase in revenue in the coming years worldwide.
• By 2024, revenue is estimated to reach US$927.30bn and is projected to grow annually at a rate of 3.47%, resulting in a market volume of US$1,063.00bn by 2028.
• The largest market within Travel & Tourism is the Hotels market, which is projected to reach a market volume of US$446.50bn in 2024.
• Looking ahead, the number of users in the Hotels market is expected to increase to 1,397.00m users by 2028.
• In 2024, the user penetration rate was 25.9%, and it is expected to reach 28.1% by 2028.
• The average revenue per user (ARPU) is projected to reach US$0.46k.
• Online sales are expected to account for 76% of total revenue in the Travel & Tourism market by 2028.
• It is worth noting that United States is expected to generate the most revenue in this market, reaching US$199bn in 2024.
• Following the profound ramifications of the COVID-19 pandemic, the travel and tourism sector demonstrates robust indications of resurgence.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

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Travel & Tourism

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• Analyst Opinion

The Travel & Tourism market has been experiencing significant growth worldwide, driven by various factors such as increasing disposable income, ease of travel, and desire for unique experiences. Customer preferences: Travelers are increasingly seeking authentic and unique experiences, moving away from traditional tourist attractions to more off-the-beaten-path destinations. This shift in preferences has led to the rise of experiential travel, where immersive cultural experiences and interactions with locals are highly valued. Trends in the market: In the United States, there has been a noticeable trend towards sustainable and eco-friendly travel practices. Travelers are becoming more conscious of their environmental impact and are actively seeking out destinations and accommodations that prioritize sustainability. This has led to the growth of eco-tourism initiatives and the popularity of destinations known for their conservation efforts. Local special circumstances: In Europe, the rise of budget airlines and the Schengen Area agreement have made travel within the region more affordable and convenient. This has resulted in a significant increase in intra-European tourism, with travelers exploring multiple countries in a single trip. The diverse cultural offerings and close proximity of European countries make it an attractive destination for those seeking a mix of history, art, and culinary experiences. Underlying macroeconomic factors: The Asia-Pacific region has seen a surge in outbound tourism, driven by a growing middle class with higher disposable incomes. Countries like China and India have witnessed a significant increase in international travel, with travelers from these markets exploring destinations beyond their borders. This rise in outbound tourism has also led to an influx of international visitors to Asia-Pacific countries, boosting the tourism industry in the region.

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How Much Revenue Is Generated From Ecotourism Annually In The United States?

Published: November 14, 2023

Modified: December 28, 2023

by Sondra Rath

• Travel Destinations
• United States

Introduction

Welcome to the world of ecotourism, where travel meets sustainability. In recent years, the concept of ecotourism has gained significant attention as a way to experience the beauty of nature while minimizing negative impacts on the environment. Ecotourism goes beyond traditional tourism by incorporating principles of conservation, community empowerment, and environmental education.

In the United States, ecotourism has emerged as a popular and impactful sector of the tourism industry. With its diverse natural landscapes, ranging from lush national parks to coastal wonders, the country offers abundant opportunities for travelers to engage in eco-friendly activities and support sustainable initiatives.

But what exactly is ecotourism, and how does it contribute to the economy? In this article, we will delve into the definition of ecotourism, explore its significance for the environment, and analyze the economic impacts it generates in the United States. We will also discuss the factors that influence revenue generation in ecotourism, the methods used to estimate this revenue, and the annual revenue figures associated with this sector. Furthermore, we will compare the revenue from ecotourism to other tourism sectors, explore successful case studies, and address the challenges and future outlook for ecotourism revenue in the United States.

By understanding the financial value of ecotourism, we can appreciate the need for continued support and development of sustainable travel practices. So, let’s embark on this journey of exploration and discover the fascinating world of revenue generation from ecotourism in the United States.

Definition of Ecotourism

Ecotourism is a form of tourism that emphasizes responsible travel to natural areas, with a focus on conserving the environment, preserving local cultures, and benefiting local communities. It seeks to minimize the negative impacts of tourism while promoting sustainable practices and providing opportunities for education and personal enrichment.

Unlike conventional tourism, which often leads to environmental degradation and cultural exploitation, ecotourism aims to foster a deeper connection between tourists and the natural world. It encourages visitors to appreciate and respect the delicate balance of ecosystems, fostering a sense of stewardship and promoting conservation efforts.

The principles of ecotourism encompass several key components:

• Environmental Conservation: Ecotourism prioritizes the protection and preservation of natural resources and ecosystems. It promotes environmentally-friendly practices such as waste reduction, energy conservation, and the use of sustainable transportation.
• Cultural Preservation: Ecotourism respects and celebrates the culture, traditions, and heritage of local communities. It encourages tourists to interact with local residents, learn about their way of life, and support local economies through responsible purchasing.
• Economic Benefits: Ecotourism aims to generate economic opportunities and benefits for local communities. It promotes community involvement and empowerment, ensuring that tourism revenue flows back into the region and contributes to sustainable development.
• Educational Component: Ecotourism provides educational experiences that raise awareness about environmental issues and inspire visitors to make more sustainable choices in their own lives. This may include guided nature walks, wildlife conservation programs, or cultural workshops.

Ultimately, ecotourism seeks to strike a harmonious balance between tourism and the environment, offering travelers the chance to explore and appreciate natural wonders while contributing to their long-term preservation and benefiting local communities.

Overview of Ecotourism in the United States

The United States is blessed with an abundance of natural wonders, making it an excellent destination for ecotourism. From breathtaking national parks like Yellowstone and Yosemite to stunning coastlines like the Florida Keys and the Pacific Northwest, the country offers diverse landscapes that attract nature enthusiasts from around the world.

One of the key drivers of ecotourism in the United States is its vast network of protected areas. The National Park Service manages over 60 national parks, along with numerous national monuments, historic sites, and recreational areas. These protected areas provide opportunities for visitors to immerse themselves in nature, engage in outdoor activities, and learn about the importance of conservation.

In addition to national parks, the United States is home to countless state parks, wildlife refuges, and private reserves that promote ecotourism. These areas showcase the country’s rich biodiversity, offering opportunities for birdwatching, hiking, kayaking, and wildlife spotting. Whether it’s exploring the Everglades in Florida, witnessing the grandeur of the Grand Canyon, or embarking on a whale-watching cruise in Alaska, there is no shortage of ecotourism experiences to be had in the United States.

Furthermore, the country’s commitment to sustainability is reflected in the numerous eco-lodges, tour operators, and educational organizations that cater to eco-conscious travelers. These entities prioritize environmentally-friendly practices, offer nature-based activities, and provide opportunities for visitors to actively contribute to environmental conservation efforts.

While ecotourism is popular among domestic and international travelers alike, it is important to note that not all nature-based tourism in the United States adheres to sustainable principles. It is crucial for tourists to do their research, choose reputable operators, and look for certifications such as the Sustainable Travel International’s Sustainable Tourism Eco-certification Program or the Global Sustainable Tourism Council’s certification schemes. These certifications ensure that the tourism activities they partake in align with sustainable practices.

Overall, ecotourism in the United States offers visitors a unique opportunity to explore and appreciate the country’s natural wonders while contributing to their preservation. By choosing to engage in eco-friendly travel experiences, individuals can leave a positive impact on the environment and support the sustainable development of local communities.

Importance of Ecotourism for the Environment

Ecotourism plays a critical role in promoting environmental conservation and fostering a more sustainable future. By highlighting the value of natural resources and ecosystems, it cultivates a sense of appreciation and responsibility towards the environment. Here are some key ways in which ecotourism benefits the environment:

• Conservation of Biodiversity: Ecotourism helps protect and preserve vulnerable ecosystems and biodiversity hotspots by creating economic incentives for their conservation. Income generated from ecotourism activities can be used to fund habitat restoration, wildlife protection efforts, and anti-poaching initiatives.
• Reduced Environmental Impact: Ecotourism encourages travelers to adopt sustainable practices, such as using renewable energy, minimizing waste, and practicing responsible wildlife viewing. By raising awareness and providing education, it helps visitors make informed choices that minimize their ecological footprint.
• Habitat Restoration and Preservation: Ecotourism often involves participation in conservation projects, such as tree planting, habitat restoration, and invasive species removal. These activities contribute to the recovery and preservation of degraded ecosystems, promoting the overall health and resilience of natural habitats.
• Alternative to Resource Extraction: In regions where natural resources are vulnerable to exploitation, ecotourism provides an alternative source of income. By creating jobs and revenue streams tied to the preservation of nature, it reduces the pressure on resource extraction and encourages sustainable economic development.
• Raising Environmental Awareness: Ecotourism facilitates direct interaction with the natural environment, allowing travelers to witness the beauty and fragility of ecosystems firsthand. This experiential learning can inspire individuals to become advocates for conservation and drive behavior change in their communities.

Moreover, the implementation of sustainable tourism practices can have ripple effects beyond ecotourism itself. By encouraging the adoption of sustainable infrastructure, waste management systems, and transportation options, ecotourism can contribute to the overall sustainability of a destination’s tourism industry.

It is important, however, to strike a balance between promoting ecotourism and preserving the integrity of fragile ecosystems. Proper management and regulation are crucial to ensure that visitation levels, infrastructure development, and human activities are kept within sustainable limits.

By supporting ecotourism, individuals can contribute to the long-term health and preservation of the environment, protecting natural wonders for future generations to enjoy.

Economic Impacts of Ecotourism in the United States

Ecotourism not only benefits the environment but also has significant economic impacts, contributing to the growth of local economies and job creation. The United States, with its diverse natural landscapes and rich biodiversity, has witnessed a surge in ecotourism activities, resulting in substantial economic benefits. Here are some key economic impacts of ecotourism in the country:

• Job Creation: Ecotourism creates employment opportunities in various sectors, including hospitality, guiding services, transportation, and local handcraft production. This is particularly significant in rural and natural areas, where traditional industries may be declining. By providing sustainable livelihoods, ecotourism helps support local communities and reduce income inequality.
• Revenue Generation: The revenue generated from ecotourism activities contributes to the local, regional, and national economies. Direct spending by ecotourists includes accommodation, meals, transportation, and entrance fees, which infuse money into local businesses. Indirectly, ecotourism stimulates sectors such as agriculture, retail, and infrastructure development, generating additional economic activity.
• Sustainable Development: Ecotourism promotes a more sustainable form of economic growth, going beyond short-term gains to focus on long-term benefits. By supporting ecologically sensitive practices, ecotourism ensures the preservation of natural resources and cultural heritage. This sustainable approach to development can enhance the resilience and competitiveness of local economies in the face of global challenges.
• Multiplier Effect: Ecotourism often leads to a multiplier effect, whereby the money spent by tourists circulates within the local economy, creating a cascading impact. For example, a tourist may spend money on a guided hike, which supports the income of the guide, who, in turn, spends money at local restaurants or shops, benefiting other businesses.
• Business Diversification: Ecotourism encourages the development of small and medium-sized enterprises (SMEs) that offer unique and sustainable products or services. This diversification of business activities reduces dependence on a single industry and enhances the overall economic resilience of a region.

Furthermore, ecotourism can help alleviate seasonality issues in the tourism industry by attracting visitors during off-peak seasons. This helps distribute tourism income more evenly throughout the year and reduces the burden on popular destinations during peak travel periods.

It is important to highlight that the economic benefits of ecotourism are contingent on responsible and sustainable practices. Proper planning, management, and collaboration with local communities are essential to ensure that economic gains are balanced with environmental and social considerations.

Ultimately, ecotourism provides an opportunity for communities to capitalize on their natural and cultural assets, stimulating economic growth while preserving the very resources that serve as the foundation for such tourism activities.

Factors Influencing Revenue Generation in Ecotourism

Several factors influence the revenue generation in ecotourism, determining the financial success and sustainability of this sector. Understanding these factors is crucial for destination managers, tour operators, and policymakers to develop effective strategies for maximizing revenue potential. Here are some key factors influencing revenue generation in ecotourism:

• Natural and Cultural Attractions: The presence of unique and captivating natural and cultural attractions is a fundamental factor in attracting ecotourists. Whether it’s a pristine national park, a rare wildlife species, or an indigenous cultural heritage, these attractions serve as a magnet for visitors and contribute to the revenue generated from ecotourism activities.
• Accessibility and Infrastructure: The accessibility of an ecotourism destination plays a pivotal role in revenue generation. Good transportation links, including airports, roads, and public transportation, contribute to increased visitation. Additionally, the availability of well-developed eco-friendly accommodation, visitor centers, and interpretive facilities enhances the overall visitor experience and encourages longer stays.
• Marketing and Promotion: Effective marketing and promotion campaigns are essential in attracting potential ecotourists. A targeted and well-executed marketing strategy that showcases the unique selling points of an ecotourism destination can lead to increased awareness and visitor interest, ultimately driving revenue generation. This may involve partnerships with travel agencies, participation in trade shows, and the utilization of digital marketing tools and platforms.
• Tourism Infrastructure and Services: The availability and quality of infrastructure and services in an ecotourism destination significantly impact the revenue potential. Well-maintained trails, visitor centers, restroom facilities, and transportation options are vital for visitor satisfaction and repeat visitation. Additionally, a range of services such as guided tours, interpretation programs, and local handicraft markets can enhance the visitor experience and generate additional revenue streams.
• Seasonality and Demand: The seasonality of visitation and demand patterns influence revenue generation in ecotourism. By understanding peak and off-peak periods, destination managers can develop strategies to distribute visitation more evenly throughout the year and minimize revenue fluctuations. This may involve developing special events, offering discounted packages during low seasons, or promoting alternative activities for visitors during less crowded periods.
• Sustainable Pricing and Financial Policies: Pricing strategies that balance affordability with the need to generate revenue are crucial. The pricing of accommodation, park entrance fees, and activities should reflect the value of the experience while remaining competitive. Furthermore, financial policies that ensure a fair distribution of revenue among stakeholders, including local communities and conservation initiatives, contribute to the overall sustainability of ecotourism.

It is important to note that these factors interact with each other and vary from one destination to another. Local context, community involvement, and stakeholder collaboration are also critical in shaping revenue generation. Sustainable management practices that prioritize long-term economic viability, environmental protection, and social benefits are key to ensuring that revenue generation in ecotourism is both impactful and responsible.

Methods Used to Estimate Revenue from Ecotourism

Estimating the revenue generated from ecotourism is a complex task that requires the use of various methods and data sources. Accurate estimation allows destination managers, policymakers, and researchers to understand the economic significance of ecotourism and make informed decisions regarding resource allocation and sustainable development. Here are some common methods used to estimate revenue from ecotourism:

• Surveys and Visitor Expenditure Studies: Surveys and visitor expenditure studies involve collecting data directly from tourists through questionnaires, interviews, or online surveys. These studies capture information on visitor spending patterns, including accommodation, meals, transportation, activities, and souvenirs. By extrapolating the data from a sample of visitors, researchers can estimate the average expenditure per visitor and calculate the total revenue generated from ecotourism activities.
• Analysis of Tourism Satellite Accounts: Tourism Satellite Accounts (TSAs) are comprehensive frameworks that provide a detailed analysis of the economic contribution of tourism, including ecotourism. TSAs utilize multiple data sources, such as government reports, industry surveys, and national accounts, to estimate various economic indicators, including revenue, GDP contribution, and employment. By disaggregating the data specifically for ecotourism, analysts can estimate the revenue generated by this specific sector.
• Financial Records and Business Surveys: Financial records and business surveys involve collecting data directly from ecotourism businesses, such as hotels, tour operators, and transportation services. These businesses are often required to report their financial information for tax purposes or to fulfill licensing requirements. Analyzing this data provides insights into the revenue generated by these businesses within the ecotourism sector.
• Collaboration with Local Communities and Stakeholders: Engaging with local communities and stakeholders is crucial for gathering data on revenue generation in ecotourism. This can involve working closely with community members to understand their involvement in ecotourism activities, such as homestays, cultural performances, and handicraft production. By collecting information on their income and the percentage derived from ecotourism, researchers can estimate the overall revenue generated by local communities.
• Integration of Secondary Data Sources: Secondary data sources, such as government reports, tourism statistics, and academic research, can provide valuable information to estimate revenue from ecotourism. These sources may include data on visitor arrivals, length of stay, average spending per visitor, and industry trends. By combining and analyzing this data, researchers can estimate the overall revenue generated by ecotourism activities.

It is important to note that these methods have their limitations and rely on assumptions and data accuracy. Estimating revenue from ecotourism should be seen as an ongoing process that requires regular data collection and analysis to account for changes in tourism trends, economic factors, and visitor behavior.

Combining multiple methods, leveraging local expertise, and utilizing a participatory approach can improve the accuracy and reliability of revenue estimation in ecotourism, ultimately supporting the effective planning, management, and promotion of sustainable tourism practices.

Findings: Annual Revenue Generated from Ecotourism in the United States

The annual revenue generated from ecotourism in the United States is substantial, reflecting the popularity and economic significance of this sector. While precise figures can vary depending on the data sources and methodologies used, numerous studies and reports provide insights into the scale of revenue generated by ecotourism. Here are some key findings regarding the annual revenue generated from ecotourism in the United States:

• According to the U.S. Travel Association, in 2019, domestic and international travelers spent an estimated $59 billion on nature-based tourism activities in the United States. This includes ecotourism activities such as wildlife viewing, hiking, and visits to national parks.
• A study conducted by the Outdoor Industry Association found that outdoor recreation, which includes ecotourism activities, contributed $778 billion to the U.S. economy in 2019. This includes spending on gear, equipment, travel, and related services.
• The National Park Service reported in its 2019 National Park Visitor Spending Effects report that visitors to national parks alone spent approximately $21 billion in nearby communities, supporting over 340,500 jobs. While not all national park visitors engage in ecotourism activities exclusively, a significant portion of this spending can be attributed to ecotourism.
• According to a report by the Bureau of Economic Analysis, travel and tourism accounted for 2.8% of the U.S. GDP in 2019, totaling $580.7 billion. While this figure encompasses all forms of tourism, ranging from business travel to leisure trips, a significant portion can be attributed to ecotourism activities.
• Various state-level studies have also provided insights into the revenue generated from ecotourism. For example, a study conducted in California estimated that nature-related tourism, including ecotourism, contributed $19.2 billion to the state’s economy in 2018.

It is important to note that these figures represent annual revenue estimates based on available data. The true revenue generated from ecotourism in the United States may be even higher, considering the additional spending on accommodations, food and beverage, transportation, and other related services.

However, it is crucial to recognize that the COVID-19 pandemic has had a significant impact on the travel and tourism industry, including ecotourism. The revenue generated in 2020 and subsequent years may be affected by travel restrictions, reduced visitor numbers, and changes in consumer behavior.

Nonetheless, these findings highlight the substantial economic contribution that ecotourism makes to the United States, supporting local businesses, creating jobs, and promoting sustainable development. The revenue generated from ecotourism underscores the importance of preserving and protecting the natural and cultural heritage that attracts visitors in the first place.

Comparison of Revenue from Ecotourism to Other Tourism Sectors

Ecotourism is a distinct sector within the broader tourism industry, and comparing its revenue to other tourism sectors provides insights into its economic significance. While revenue figures may vary by region and data source, conducting such a comparison can help understand the relative contribution of ecotourism to overall tourism revenue. Here is a comparison of revenue from ecotourism to other tourism sectors:

• Mass Tourism: Mass tourism refers to the large-scale, mainstream tourism that encompasses popular destinations and attractions. It typically involves package vacations, all-inclusive resorts, and high-volume tourist activities. While mass tourism generates substantial revenue due to its sheer volume, the revenue per visitor is often lower compared to ecotourism. Ecotourism tends to attract fewer visitors but generates higher revenue per visitor due to the premium nature of the experience and the focus on sustainable practices.
• Adventure Tourism: Adventure tourism is a dynamic and growing sector that includes activities such as hiking, mountaineering, and adventure sports. While adventure tourism and ecotourism can overlap in certain aspects, such as nature-based activities and sustainable practices, revenue figures can differ. Adventure tourism generally involves a range of activities, some of which may have lower costs compared to ecotourism. However, ecotourism’s emphasis on conservation, cultural immersion, and unique experiences often allows for higher pricing and revenue generation.
• Cultural Tourism: Cultural tourism focuses on experiencing the cultural heritage, traditions, and artistic expressions of a destination. It can include visits to museums, historical sites, and participation in cultural events. Comparing revenue from cultural tourism to ecotourism depends on the popularity and uniqueness of cultural offerings. In destinations with significant cultural attractions, revenue from cultural tourism may be higher. However, in regions with exceptional natural landscapes and biodiversity, ecotourism revenue can surpass that of cultural tourism.
• Medical Tourism: Medical tourism involves individuals traveling to foreign countries to receive medical treatment or undergo medical procedures. While medical tourism can generate substantial revenue due to the high costs associated with healthcare services, it differs significantly from ecotourism in terms of focus and target audience. The revenue generated from medical tourism tends to be separate from ecotourism revenue but can contribute to the overall tourism sector.

It is important to note that these comparisons are general and can vary depending on the specific destination, market conditions, and the offerings within each tourism sector. Furthermore, tourism sectors are not mutually exclusive, and destinations often leverage multiple sectors to diversify their tourism offerings and increase overall revenue.

Despite the variance in revenue figures, it is important to recognize that ecotourism’s value extends beyond financial gains. Its focus on sustainability, environmental conservation, and community empowerment makes it a valuable and responsible form of tourism that contributes to the long-term well-being of destinations and their inhabitants.

Case Studies: Successful Ecotourism Revenue Generation

Several case studies around the world exemplify successful ecotourism revenue generation, showcasing how destinations have capitalized on their natural and cultural assets to create sustainable economic opportunities. Let’s explore a few notable examples:

• Costa Rica: Costa Rica is often hailed as a global leader in ecotourism due to its commitment to sustainability and the preservation of its natural treasures. The country’s focus on protecting its biodiversity and promoting responsible tourism has resulted in significant revenue generation. In 2019, ecotourism in Costa Rica contributed approximately $2.2 billion to its economy. This success can be attributed to the establishment of protected areas, the integration of local communities in tourism initiatives, and the promotion of eco-friendly practices.
• Galápagos Islands, Ecuador: The Galápagos Islands are renowned for their unique biodiversity and ecological significance. Ecuador has implemented strict conservation measures to protect the islands and has successfully developed a thriving ecotourism industry. The revenue generated from ecotourism in the Galápagos Islands helps fund conservation efforts and supports local communities. Entry fees, tours to observe wildlife, and sustainable accommodations all contribute to the revenue generated, estimated to be around $150 million annually.
• Kangaroo Island, Australia: Kangaroo Island in South Australia has become a prime example of how ecotourism can be a catalyst for economic recovery after natural disasters. Following devastating bushfires in 2020, the island embarked on a sustainable tourism strategy to attract visitors and support its local economy. The island’s unique wildlife, pristine landscapes, and commitment to conservation have drawn tourists eager to experience its recovery and contribute to its restoration. The revenue generated from ecotourism has played a crucial role in rebuilding the local community and protecting the island’s natural resources.
• Maasai Mara, Kenya: The Maasai Mara National Reserve in Kenya is renowned for its incredible wildlife migration and rich cultural heritage. The Maasai community, in partnership with tour operators and conservation organizations, has successfully integrated ecotourism into their traditional way of life. The revenue generated from ecotourism activities, including wildlife safaris, cultural experiences, and community-based initiatives, has empowered the Maasai people to improve their standard of living and protect their ancestral lands.
• Vancouver Island, Canada: Vancouver Island off the coast of British Columbia in Canada is a prime example of how ecotourism contributes to the local economy. The island offers diverse ecosystems, including ancient rainforests, pristine beaches, and abundant wildlife. Activities such as bear watching, whale watching, and eco-friendly accommodations attract visitors who contribute to the local economy. Ecotourism revenue on Vancouver Island is estimated to be in the hundreds of millions of dollars annually, supporting local businesses, conservation efforts, and community development.

These case studies illustrate the potential of ecotourism to generate substantial revenue while preserving natural and cultural heritage, providing economic opportunities for local communities, and supporting conservation efforts. The success of these destinations lies in their commitment to sustainable practices, community involvement, and the delivery of exceptional visitor experiences.

By learning from these success stories, other destinations can adapt and implement similar strategies to harness the economic potential of ecotourism while safeguarding their invaluable natural resources.

Challenges and Future Outlook for Ecotourism Revenue in the United States

While ecotourism in the United States has experienced significant growth and revenue generation, it is not without its challenges. Understanding these challenges and addressing them is crucial for the sustained success and future outlook of ecotourism revenue. Here are some key challenges and future considerations for ecotourism revenue in the United States:

• Sustainability: Ensuring the long-term sustainability of ecotourism practices is essential. Climate change, habitat destruction, and overtourism pose significant threats to the environment and local communities. The future of ecotourism revenue relies on responsible stewardship of natural resources, fostering sustainable tourism practices, and embracing innovative solutions that minimize negative impacts on ecosystems.
• Infrastructure and Funding: Adequate infrastructure, including transportation networks, visitor facilities, and conservation efforts, is essential for ecotourism revenue generation. Investment in infrastructure development and maintenance is necessary to enhance the visitor experience and support sustainable growth. Additionally, securing funding for conservation initiatives, community development, and marketing efforts is critical to ensure the viability and competitiveness of ecotourism destinations.
• Community Engagement: Engaging and empowering local communities in the planning, management, and benefits of ecotourism is key to its success. Ensuring that local communities have a stake in ecotourism revenue allows for more equitable distribution and strengthens the social and economic fabric of the destination. Building strong partnerships between local communities, businesses, and government entities fosters collaboration and enables shared responsibility for the sustainable development of ecotourism.
• Educational Initiatives: Investing in environmental education and visitor interpretation enhances the value of the ecotourism experience. By deepening visitor understanding of the natural and cultural significance of the destination, it fosters a sense of stewardship and encourages more responsible tourism behavior. Educational initiatives that promote sustainability, conservation, and cultural awareness can ultimately influence visitor choices and contribute to the long-term success of ecotourism revenue.
• Competition and Market Differentiation: With the increasing popularity of ecotourism, competition among destinations is growing. To maintain a competitive edge and attract discerning eco-conscious travelers, destinations must differentiate themselves by offering unique and authentic experiences, investing in sustainable infrastructure, and providing high-quality services. Developing niche ecotourism products, such as birdwatching tours, agroecotourism, or cultural immersion programs, can help destinations stand out and drive revenue generation.

The future outlook for ecotourism revenue in the United States remains promising as more travelers seek meaningful and sustainable experiences. By addressing the challenges and embracing responsible tourism practices, the country can continue to benefit from the economic potential of ecotourism while preserving its natural and cultural heritage.

Ultimately, a collaborative approach that involves government entities, local communities, tourism industry stakeholders, and visitors is essential for shaping a resilient and thriving ecotourism sector that generates revenue while safeguarding the environment and supporting the well-being of all involved.

Ecotourism is a powerful force that combines travel and sustainability, offering a unique opportunity to explore and appreciate the natural and cultural wonders of the world while contributing to their long-term preservation. In the United States, ecotourism has emerged as a significant sector within the larger tourism industry, generating substantial revenue and supporting local economies.

Through its emphasis on environmental conservation, cultural preservation, and community empowerment, ecotourism showcases a responsible and sustainable approach to travel. The revenue generated from ecotourism in the United States contributes to job creation, revenue diversification, and the overall health of local economies. Furthermore, it highlights the economic value of protected areas, indigenous cultures, and unique natural landscapes.

While challenges exist, such as ensuring sustainability, developing adequate infrastructure, engaging local communities, and addressing competition, the future outlook for ecotourism revenue in the United States remains promising. By adopting sustainable practices, investing in education and interpretation, and promoting unique experiences, destinations can attract eco-conscious travelers and continue to generate revenue while simultaneously safeguarding their invaluable natural resources.

It is crucial for policymakers, destination managers, and stakeholders to prioritize sustainable development, community involvement, and the preservation of ecosystems and cultural heritage. By doing so, they can ensure the long-term viability and success of the ecotourism sector, enriching the lives of both visitors and local communities.

As travelers, we have the power to support ecotourism by making conscious choices, respecting the environment and local communities, and seeking out authentic and responsible travel experiences. By embracing ecotourism, we can contribute to a more sustainable and inclusive world, where both the beauty of nature and the economic well-being of communities thrive hand in hand.

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More From Forbes

What is sustainable tourism in panama, it depends who you ask.

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Veteran guide Rich Cahill on the Panama Canal. Panamanians have adopted a flexible definition of ... [+] sustainability as they grapple with an influx of tourists.

If you ask Rich Cahill to define sustainable tourism, he'll tell you about the wilderness next to the Panama Canal where you can find ocelots, howler monkeys, and three-toed sloths. It's about explaining to visitors that nature is both fragile and resilient — a contradiction that's on full display in these lush Central American rainforests.

"People think they know sustainability," says Cahill, who runs Ancon Expeditions , a Panamanian tour operator. "But they're not thinking big enough."

Sustainable means something different to David Kianni, general manager of the Sofitel Legend Casco Viejo . To him, it's about being a responsible corporate citizen — no single-use plastics, and having an active conservation initiative — and creating a mentorship program that supports native culture.

Just down a cobblestone street in Old Town Panama City, you'll find yet another definition of sustainability at the just-opened Amarla Casco Viejo , a boutique hotel. For general manager María Antonieta Ramírez, it's about following all the best practices of conservation and promoting artists like Phoebe Montague Warr, whose riveting images of Panama's biodiversity are on display in the guest rooms.

Sustainability in tourism is a broad topic that covers environmental protection, supporting local communities and cultural preservation. But what does sustainability really mean?

I'll be asking that question as I travel through the Caribbean, a part of the world that has aggressively pursued a reputation for sustainability in tourism. But how sustainable is the Caribbean when compared to other places? How can you tell if a destination is really sustainable? And ultimately, is sustainability worth it, not just to the visitor and the business, but also to the affected communities?

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For a benchmark, I decided to start in Panama, perhaps one of the sustainability pioneers. Guides like Cahill were leading tourists through tropical rainforests decades ago, before ecotourism became a household word. Panama also has a colorful history as an adventure destination, featuring dictators, military invasions and plenty of intrigue. Plus, it's an airline hub that connects to many Caribbean islands, as well as other destinations in the Americas and Europe.

What is sustainable tourism?

Experts will tell you that, on its broadest level, sustainable tourism is about reducing the negative environmental, social, and economic consequences of travel. But it's also about helping local communities and preserving natural and cultural resources for people who live in the affected areas.

Sustainability means that you can keep coming back to the place again and again without worrying about it being depleted or destroyed. And here are three main ways a destination can pursue a sustainability goal:

Reducing environmental damage

Sustainable tourism tries to lower carbon emissions, reduce waste and conserve resources. Hotel recycling programs and carbon neutrality commitments by airlines fall under this category.

Helping local communities

Sustainability is also about empowering local communities through small business mentorship programs and sourcing local products. When your boutique hotel offers a locally made drink or soap product, chances are it's part of a sustainability effort.

Preserving culture

The final aspect of sustainable tourism is about helping people maintain local cultures and traditions. This may include promoting a range of tourist-related activities that allows visitors to appreciate the ways of the indigenous society.

These three core sustainability principles sound simple enough. But when it comes down to it, the definition is like sand in your fingers. It's elusive. It sounds promotional, and at times gimmicky. And ultimately, isn't sustainability something airlines, hotels and tour operators should have been doing all along?

A cargo ship passes through the Panama Canal near Gatun Lake.

In the Panama Canal, a practical definition of sustainability

The Panama Canal is an unlikely ecotourism destination. Dredging a canal between the Atlantic and Pacific disrupted fragile ecosystems and led to the extinction of several species, notably the golden frog. But the security concerns also preserved fragile rainforest, and after gaining ownership of the canal from the U.S., Panama created Soberania National Park to protect the area surrounding the canal.

Today, the national park is home to some of the most spectacular birdwatching in Central America. You can see everything from crested guans and toucan to heron and antbirds hawks in the forests. These animals have adapted to the canal. It isn't uncommon to see a monkey or jaguar swimming across the canal during a boat tour.

Cahill, an American who grew up in Panama, remembers when the U.S. still administered the canal and the entire area was closed off to most people. Ironically, he says the military bases and travel restrictions saved the area from development and made it one of the leading ecotourism attractions in Latin America.

And then the visitors came.

"Growth is a tough thing without good planning," he says. "It's easy to forget that."

But growth is very much on everyone's mind in Panama. That's because the country has seen an influx in visitors as more cruise ships have come through the Panama Canal. A new cruise terminal has opened just outside Panama City, straining the city's limited tourism infrastructure.

"When you get all these cruise ships coming in, you can see the consequences of poor planning," adds Cahill.

So that's one perspective. Panama wasn't meant to be an ecotourism destination, but it became one despite the serious consequences of a canal being dug through it — maybe even because of it. And now it is struggling with its own success. More people want to see Panama, to transit through the canal, to go birdwatching and to experience the rainforests that maybe would have been decimated if it hadn't been for the canal.

The canal should have destroyed the environment, but the rainforests are resilient and the enormous public works project ended up protecting the environment, in a way. It's a curious contradiction.

The 2023 class of graduates from Copa's Aeronautical Technicians Academy.

Can an airline be sustainable?

Back in Casco Viejo, Panama's old town, there are more people wrestling with the same questions: What, exactly, does it mean to be sustainable?

For example, what if you're an airline? Air carriers are constantly getting themselves into trouble for claiming to be green. In the last six months, several governments have handed out fines to airlines who made bold but ultimately false claims about their carbon offset programs. The smart airlines are keeping a low profile — and making a difference where they can.

Katherine Katsudas, a senior manager at Copa Airlines , is pondering sustainability over lunch at Kaandela, the Amarla Casco Viejo's restaurant. For the Panamanian carrier, sustainability is about giving back to the community by subsidizing its low-key Aeronautical Technicians Academy. The airline quietly opened the training facility in Tocumen, just outside Panama City, a few years ago. It offers young men and women from disadvantaged backgrounds full scholarships to train as aircraft mechanics.

"And they have a guaranteed job waiting for them when they graduate," she says.

The program has benefited everyone by graduating 132 maintenance technicians, she adds. It removed one of the major obstacles to higher learning for the young people enrolled in the program, which is that they can't afford tuition and end up missing classes because of financial or family obligations. The 86 students currently enrolled in the program receive a stipend for living expenses.

It also gives people from an underprivileged community, many of whom live just a stone's throw from the airport, a chance to have a stake in one of Panama's most successful businesses.

Few travelers stop to consider the aircraft mechanic who maintains their plane, or the low-income neighborhood next to the airport when they land in Panama City. But it is all part of an economic ecosystem that must also be sustainable in order for all this to work, according to Katsudas.

Being a good corporate citizen is something Copa was doing long before sustainability was a buzzword. But now that someone has given it a name, the airline has fully embraced it.

María Antonieta Ramírez, general manager of the Amarla Casco Viejo, shows off the photographs of ... [+] Phoebe Montague Warr.

A boutique hotel that supports sustainability

Upstairs in the Amarla's guest rooms, you can see sustainability efforts on display. Each room in this meticulously restored 120-year-old boutique property is completely unique, and that extends to the framed photos on the walls, many of which are for sale. The images depict indigenous people in the Panamanian rainforests. The photos are colorful and visually arresting.

Ramírez, the hotel's general manager, explains that the photographer’s works are intended to support the heritage of different indigenous communities.

"The portrait capture the essence and diversity of its people — breathtaking landscapes, nature, fauna and the enduring spirit of its indigenous communities," she explains.

She says 30% of profits go back to indigenous individuals in the picture, the community where the image was shot, or to their chosen charity.

This type of sustainability is becoming more common in Latin American luxury hotels, where guests are looking for more than a written commitment to sustainability. They want something tangible, and maybe even something they can take home with them to remind them of their adventure.

Gunayala coconut oil retails for $5 a bottle. In the first year of production, the oil produced ... [+] $4,300 in revenue for the indigenous community.

Building sustainability through coconut oil

The Sofitel Legend Casco Viejo has a fascinating backstory. The building was a military club that was almost completely leveled by U.S. forces during the 1989 Panama invasion. According to several people I spoke with, the Americans believed Manuel Noriega was hiding there. He wasn't.

Just before the pandemic, the hotel was rebuilt as a luxury urban resort. Today, visitors can relax at its elegant Mayda bar overlooking the canal and watch the cruise ships float by.

The Sofitel's sustainability program feels like a combination of the approaches taken by Copa and Amarla. It's a mentorship initiative that develops young indigenous entrepreneurs in collaboration with the Forest Stewardship Council Indigenous Foundation , an organization that supports indigenous people worldwide. The Sofitel marketing team is working with the Guna Ogob community to create a sustainable business selling coconut oil.

"We've been guiding the young talent step by step as to how to go from setting up the business to marketing and selling the coconut oil, as well as managing its finances and cash flow," explains Kianni, the hotel's general manager. "Our mentorship Initiative has been developed to help the indigenous community to further develop their business model and gain revenues to be used by the community."

Kianni says Guna Ogob Coconut Oil is about to become an official business, through its mentorship program will be supported by the hotel. But he's gone a step further, and is in contact with Sofitel corporate to use this model for other hotels within the brand, which will support other indigenous communities.

David Kianni, general manager of the Sofitel Legend Casco Viejo, on the hotel's rooftop bar.

Why bother being sustainable?

I asked Kianni why he was spending valuable resources on developing a coconut oil business at a time when the Panamanian lodging industry is still struggling to recover from the aftereffects of the pandemic. He said people expect more than green certifications and recycling programs.

"They want to make a real difference," he told me.

That may be the biggest takeaway from the Panamanian sustainability experience. Whether you're guiding travelers through the locks of the Panama Canal, training underprivileged people to become aircraft mechanics, or selling photos of indigenous people or marketing coconut oil, people are tired of the talk. They want action — not words.

Simply saying that you are sustainable is no longer enough in the travel industry. You have to think big.

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