Tag: travel

How Green Finance Can Address the Increasing Demand for Sustainable Tourism

Written by Yaseen Eiweida on . Posted in Blog.

The world of travel and tourism has helped strengthen both rural and urban communities while also economically empowering local businesses. However, in recent years, there has been a noticeable shift in demand within the tourism industry. We are now seeing an increasing preference for more sustainable tourism options, and green finance is proving to be a viable solution. This trend reflects a desire for tourism practices that not only promote sustainability but can also drive the market for sustainable travel forward in the long term.

In 2024, there are many opportunities in the post-pandemic era of tourism to capitalize on. Climate change remains one of the greatest challenges facing our environment, as well as the tourism industry. Both well-established destinations and up-and-coming ones are having to adapt to climate change. It is important that we design and implement certain measures to mitigate the harmful effects of climate change felt by communities trying to promote new tourism opportunities. A crucial step towards this goal is financing the development of these necessary strategies. Green finance offers the necessary funding and incentives for developing sustainable tourism initiatives. It addresses the growing demand for eco-friendly travel options and ensures the preservation of natural and cultural resources.

The Rise of Sustainable Tourism

What is sustainable tourism? Sustainable tourism recognizes the future impacts of tourism initiatives while considering the environmental, social, governance (ESG), and economic consequences. It takes into account the needs and wishes of travelers while placing equal importance on the environment and host communities. 

Sustainable Eco Lodge
Sustainable Retreat: Nature Resort in Sapa, Vietnam

With the continuous predicament of climate change, travelers from all over the world have started to take into consideration the sustainability commitments and records of destinations and providers. In fact, many travelers are even ready to pay a premium for more sustainability in their itinerary. Environmentalists and activists aren’t the only ones driving the growing demand for sustainable tourism. Many people are simply seeking to make more responsible travel choices and contribute to a better future. Looking at the numbers, the size of the global sustainable tourism market is currently valued at $2.61 billion in 2024 and is projected to soar to $8.73 billion by 2031. This not only represents an opportunity for tourism providers to accommodate more travelers, but it is also an opportunity for investors. When comparing the demand for more sustainable tourism versus the supply of options, the numbers are shocking but represent an opportunity for growth. Globally, the sustainable tourism industry is estimated to make up just 2–5% of the travel and tourism industry. Yet, around 80% of travelers said that sustainable tourism was important, and they would want to adopt more sustainable travel practices. 

What do Responsible Tourists Want? 

In order to understand how the world should finance and invest in sustainable and responsible tourism, it is important to understand the requests of travelers. In the context of the demands of many global travelers, they wish to see more sustainability in six key areas. Expedia Group’s sustainable travel study from 2023 indicates that travelers are willing to pay more for:

  1. Transportation
  2. Food
  3. Activities & Experiences
  4. Lodging & Accommodation
  5. Purchases or Gifts 
  6. Engaging with Local Cultures  

Even though tourists aiming to travel more responsibly might not fully grasp all the nuances involved, the crucial point is that there is a clear demand for this type of travel. People want to lower their carbon emissions when they travel, choose food from sustainable sources and producers, support regional communities, purchase gifts, and engage with local artisans and craftsmen, amongst other sustainable practices. Growing the socioeconomic status of local tourism providers has always been important to the world of international development, as highlighted by many of the United Nations’ Sustainable Development Goals (SDGs). Therefore, now that there exists a market with a genuine demand for more sustainable travel options, and travelers who are even willing to pay more for these options, the time has come to address these demands and fill gaps within the industry. 

Intangible Cultural Heritage
Thailand’s Intangible Cultural Heritage Provided by Local Artisans and Craftsmen

Recognizing the Importance of Green Finance

In recent years, there have been many green finance success stories that highlight the potential and success of sustainable investing. Globally, the transition to decarbonize the economy requires massive investments. Through green finance, investors in both the public and private sectors can direct their investments towards acts to lower emissions and mitigate climate change. The concept of green finance should not be confused with a risky investment for the sole purpose of helping the environment. Investors involved in green finance are actively reducing their risk. Today, investing in carbon-intensive initiatives has more risks than ever due to the transition to more responsible business practices. Aside from the risks, green financing can also support job growth in new industries and create more business opportunities that do not harm the environment in the way traditional tourism does. Those who embark on these opportunities can help private and public organizations satisfy their climate goals.  

Sustainable Tourism Eco Lodge
Undisturbed Accommodation: Thai Eco Lodge using vernacular architecture and a circular water system

Understanding Green Financing  

Green financing refers to the economic activity aimed at maximizing environmental benefits and/or reducing risks associated with climate change. For example, a company that secures a loan to upgrade its portfolio of houses with more energy-efficient systems, such as solar panels, contributes to green finance. In turn, those living in the house also are lowering energy consumption and utility expenses. This reinforces the idea that green finance is a win-win for everyone. In the long term, the goal of green finance is to establish a flow of financial resources toward investments that contribute to a more sustainable and resilient economy. In the tourism industry, this includes addressing climate change and other environmental challenges.

Green Finance Diagram

Promoting Sustainable Business Practices in Tourism

Contributing to sustainable development requires a change in the way businesses think. Businesses not only need to address the environment when making decisions, but they need to instigate changes in their consumer’s behaviors. If tourists wish to travel more sustainably, there needs to be sufficient opportunities for them to do so. In order to accomplish this, there are several different financial instruments and initiatives in green finance:

  • Green Bonds: a debt security issued to finance projects that positively address environmental change.  
  • Green Loans: loans granted to projects or businesses that contribute to environmental sustainability (green loans typically come with favorable terms and conditions).
  • Green Equities: when shares of equities/stocks are re-invested in companies that promote positive environmental results.
  • Crowdfunding: obtaining funding from a large pool of interested backers to make an impact through sustainable initiatives.
  • Public-private partnerships (PPPs): collaboration between governments, financial institutions, and private companies to fund and implement sustainable projects.

While each instrument is a great contributor to sustainable development, businesses in tourism need to identify their green goals. The first obvious step would be to assess the potential of the project: What are the potential outcomes or challenges? Businesses should consider the needs and wants of stakeholders. What are the regulators looking for? Investors? Employees? Customers? And so on. While there is a demand for more sustainability in tourism, it is not a one-size-fits-all solution. The following step is to choose which finance option is best suited. Each has different advantages and disadvantages depending on the context, so it is important to choose wisely to attract investment. Although investors want to participate in socially responsible investing, they also will look to minimize risks. 

South Korea: A Model for Integrating Green Finance with Tourism

South Korea, officially the Republic of Korea (ROK), is emerging as a leader on the path towards financing green growth opportunities. To meet the country’s ambitious climate goals, financial institutions have announced a $313 billion green financing plan to be implemented across many sectors of the economy, including travel and tourism. Dating back to 2008, stakeholders in Korea’s tourism sector have been identifying countermeasures against climate change. Several years later in 2016, the heritage sectors of the tourism sector began implementing measures to protect the country’s most vulnerable cultural heritage assets. The national government has also played a key role in addressing climate change in tourism as they have focused efforts towards adaptation and mitigation. For the government, the key to adaptation is minimizing the effects of climate change on tourism and cultural heritage. In contrast, mitigation efforts involve leveraging these sectors as a source of education and knowledge to reduce greenhouse gas emissions. 

South Korea stood as one of the countries that positioned climate change as a national priority and prepared both the legal groundwork and heavy investment to support this priority. The national government has been involved with monitoring and conducting follow-up measures to adaptation policies and investment schemes. They also spearhead the campaigns to raise awareness of the need to deal with climate change responsibly and immediately. The government also actively promotes low-carbon tourism services using low-carbon transportation, local food, and locally crafted goods, alongside the green transformation of infrastructure. South Korea stands out as a leader and exemplary model in financing and taking initiative against climate change in the tourism sector.

Investment Opportunities to Support Sustainable Growth in Tourism

Many of the key components of sustainable development and environmental management are being overlooked in tourism. Some of these include energy efficiency, waste management, water management, biodiversity, and cultural heritage. By incorporating these components, tourism operators and investors can contribute to the SDGs and be innovative. The key to unlocking this growth is to encourage responsible investing and introducing new opportunities. When aspects of sustainability such as cultural heritage and biodiversity are being funded, the tourism operators can leverage them to promote their destination.

Sustainable Tourism Infrastructure
Coastal Protection: Mangroves help to bind and build soils, reduce erosion, and act as wave breakers to offer protection from rising sea levels

Solimar’s Investment Promotion strategies have successfully secured more than $8 million in debt and equity commitments for ecolodges within or on the borders of national parks. Further, Solimar’s principals have successfully promoted tourism-related investments totaling more than $350 million. At Solimar, we acknowledge that demand from and within new markets will continue to rise in importance. In response, we are keen to assist these destinations by attracting investments to meet demand and achieve the existing growth potential. Solimar provides the unique prospect of offering end-to-end investment promotion solutions. This includes prospectus development and production, investor recruiting, and sourcing debt and equity financing for a wide range of project types across the globe. 

The Role of the Public Sector

Although private contributions are effective in tourism and economic development, the public sector has a significant role. In tourism projects, there are typically many parties involved with many goals. These may include tour operators, local governments, and destination management organizations (DMOs), all of whom have expected outcomes for projects. Therefore, public-private partnerships are a great strategy to represent the interests of all stakeholders involved and meet expected outcomes. PPPs offer a greater variety of sources of investment, technology, knowledge, and management expertise. The model is a great method to enhance the supply of resources for development and to help steer demand towards sustainable tourism. In addition, PPPs can extend the cost of a project over a longer period, allowing public funds to be allocated to areas where private investment is either unfeasible or unsuitable. However, PPPs should not be viewed as a solution to public-sector budget constraints or funding shortages; instead, they should be utilized as a means to execute projects and services efficiently and cost-effectively.

PPP for Sustainable Development
Public-Private Partnership: Building Spain’s Modern Train Stations

Not only is public sector involvement helpful, it’s vital. Unlike the private sector, governments usually have to cater to the whole population rather than certain stakeholders. They must be impartial and not have hidden agendas to protect. The public sector can also drive change within the private sector. Through incentives and mandates, governments can enhance private sector sustainable tourism efforts. Given the value each sector adds to the industry, partnerships are at the core of sustainable tourism. By spreading out the risk, and reducing the upfront costs imposed on public budgets, it’s vital for governments to consider partnering with private sector stakeholders. 

Public-Private Partnership for Sustainable Tourism

The Path Ahead and Progressive Strategies

With the emergence of a new travel pattern amongst tourists, we must offer new opportunities. We must steer consumers to more sustainable travel and make responsible decisions. Although there is a segment of travelers who desire to experience greener, more sustainable travel, there are also those who are not yet inspired by sustainability but who could be influenced. Celebrating the transition to an eco-friendly brand of travel should become a key component of the journey towards a sustainable future. To promote these changes, it’s key we broaden the dialogue to appeal to different segments of travelers. 

Cities with the potential and resources to spark change should take the lead and set the example. Cities should embrace policies that facilitate the relationship between financial markets and opportunities for green finance. This relationship is key to attracting the assets and capital required to deliver successful sustainable projects for travelers. The diversification of financing opportunities is also an important avenue for growth. No two projects are alike, and no two projects face the same challenges. This means that in order to accomplish goals, there must be ample opportunities to finance these endeavors. 

From an internal perspective, to obtain the means of investment, projects must have significant profit potential. Projects must be highly marketable to entice investors. Business plans and prospectus development strategies must be thorough and feasible. Additionally, effective risk management strategies should be in place to address potential challenges and uncertainties, giving investors confidence in the project’s stability. Highlighting the long-term sustainability potential can also attract socially responsible investors who are seeking opportunities to expand their portfolios. By combining these elements, projects can become more attractive to investors, ensuring a higher likelihood of securing the necessary funding.

Interested in our services for Investment Promotion? Contact us to learn more.

Local artisans Vietnam

Local Artisans and Craftsmanship Revival Through Tourism

Written by Ibrahim Eiweida on . Posted in Blog.

Local Artisans and Craftsmanship Revival Through Tourism

Artisan development and craftsmanship are important tools for local economic development and job creation. Tourism has helped restore and close the disconnect between rural and urban craftsmen and their networks and markets. The increased influx of visitors has provided artisans with a greater market presence and demand for their goods and services, pushing their craft businesses to new heights of success and sustainability.

However, there remains the potential for greater promotion of these economic activities within the tourism sector. As well as the preservation of crafts by bringing in opportunities to local artisans. By working closely with artisans, we can capitalize on and promote their existing traditions and artistic products. Let’s ensure that these valuable cultural assets are preserved and shared with a wider audience. Together, we will explore the dual benefits and synergies that emerge through local artisans and craftsmanship and tourism. Craftsmanship not only invites tourism and destination development through the authenticity and uniqueness of its attractions, but tourism also supports local artisans and cultural entrepreneurs, fostering shared prosperity. Join us in celebrating the resilience of cultural heritage and sustainable tourism. Discover how local artisans create a sense of identity, belonging, and community cohesion.

Preserving Heritage: Traditional Craftsmanship and Architecture in Old Cairo, Egypt

Celebrating Intangible Cultural Heritage

The year 2023 marks a significant milestone in the world of cultural preservation. We celebrate the twentieth anniversary of the Convention for the Safeguarding of the Intangible Cultural Heritage, adopted on October 17, 2003, by the 32nd session of the General Conference of UNESCO. Honoring cultural identities bridges the gap between different social groups. It also leads to upward mobility. This anniversary provides a unique opportunity for all to raise awareness about the diversity and richness of intangible cultural heritage and in fostering international cooperation.

What are Tangible and Intangible Cultural Heritage?

Cultural heritage is a broad term that includes tangible and intangible expressions of human culture:

  • Tangible cultural heritage refers to physical objects and areas with societal significance, such as archaeological sites, museum collections, landmarks, and, for example, the places that are listed on the World Heritage List. These can be preserved and transmitted to future generations through conservation, restoration, and education.
  • Intangible cultural heritage, on the other hand, refers to traditions or living expressions and practices. It includes performing arts, rituals and festivals, traditional knowledge and skills to produce crafts, and languages. Because intangible heritage is constantly recreated, it is transmitted through oral transmission, apprenticeship, and participation.

Shanghai’s Intangible Cultural Heritage: Handcrafting Traditions in China

Artisanal Preservation, Conservation, and Sustainability

As custodians of intangible cultural heritage, there is a need to grow the socioeconomic status of artisans. We need to protect traditions and promote the development of sustainable practices. Artisanal crafts play a significant role in conservation efforts by fostering ecological and cultural preservation. Traditional tribal crafts provide alternative income sources for local communities, reducing their dependency on forest resources for subsistence. This, in turn, helps mitigate the current social-ecological crisis while promoting the renewal of biodiversity and cultures.

Furthermore, maintaining cultural diversity in the face of growing interconnectedness and globalization can help with intercultural dialogue while encouraging inclusive thinking and mutual respect for other ways of life. Local artisans pass down their knowledge, skills, and craftsmanship from one generation to the next. Their work is not only about creating beautiful products. It’s about sustaining the stories, rituals, and practices that define who we are as a society.

Narrative Artistry: Unveiling China’s Vibrant Performance Traditions

Unlocking the Power of the Creative Economy

The creative economy, as a set of art and culture, design, and innovation industries, creates job opportunities and stimulates economic growth. It promotes entrepreneurship in the cultural sector, leading to an overall diversification of national economies. The creative economy contributes contributes just over 6.1% to the global gross domestic product (GDP), averaging between 2% and 7% of national GDPs worldwide.

Creative assets have untapped potential to deliver socially inclusive, competitive, regenerative, and economic benefits for cities and communities. Cultural and creative industries are at the heart of the creative economy and make cities more attractive places for both residents and visitors.

Understanding Cultural and Creative Industries

Cultural and creative industries are economic activities that enable culture and creativity to contribute to and promote rural-urban and socio-economic development. These industries safeguard local ownership and contribute to social cohesion at the grassroots level. They enable creative networks to develop and create opportunities for marginalized communities and individuals who are often economically excluded.

According to estimates from UNESCO, the cultural and creative industries currently provide nearly 30 million jobs worldwide and employ more people aged 15−29 than any other sector. Nearly half of the people working in the cultural and creative industries are women. This opens up new opportunities to address gender inequalities and women-focused investments.

Empowering Artistry: Women Crafting in West Bangalore, India

In 2021, the European Union expanded its Creative Europe programme, which now includes a budget of € 2.44 billion, compared to € 1.47 billion of the previous programme (2014-2020). The objectives of the programme are to enhance European cultural and creative industries, which, as expressed by the European Commission, include:

  • Architecture
  • Libraries and museums
  • Design and artistic crafts
  • Audiovisual, including radio, music, and visual arts
  • Tangible and intangible cultural heritage
  • Festivals and performing arts
  • Literature, books, and publishing

Tokens of Remembrance in Paris, France: Cultural and Creative Industries in Souvenir Craft

The Organisation for Economic Co-operation and Development (OECD) highlights the significant social impacts of cultural and creative sectors and industries, from supporting health and well-being to promoting social inclusion and local social capital. UNESCO and the World Bank have developed a Cities, Culture, and Creativity Framework to support cities in unlocking the power of cultural and creative industries for sustainable urban development, city competitiveness, and social inclusion.

Leveraging Tourism to Support Cultural Products, Values, and Heritage

Cultural and creative industries offer tourists an emotional experience that is different from tangible cultural heritage. Today’s high-value travelers seek authentic cultural experiences. Visitors want to go beyond just visiting landmarks and monuments. They want to experience the social practices that shape cities’ identities and cultures.

Fostering Tourism and Empowering Artisans

Cultural heritage and sustainable tourism preserve and celebrate authentic cultural expressions while fostering inclusive growth and community well-being. When tourism underpins cultural and creative industries, artisans are empowered. Their practices and customs are supported. This fuels economic vitality and establishes a relationship between cultural preservation and sustainable destination development.

Beijing’s Artistic Heritage: Handcrafts in China

Solimar’s Craft and Tourism Program improves the cohesion between the craft and tourism sectors. It does so by creating stronger linkages between the two along an integrated value chain. At Solimar, we recognize the dual benefits and synergies that exist between craftsmanship and tourism. By increasing access to the tourism market, artisans can grow their revenues and profitability. We thus link tourism demand with craft supply, creating direct linkages between craft and tourism experts and developing integrated marketing and promotion tools to help with destination planning. This, in turn, invites tourists and strengthens the networks and circuits in and around craft workshops. As a feasible strategy for local economic development, it allows the craft producer to build relationships with tourists. It also promotes and sustains traditional craft production practices.

The Importance of Diversification and Innovation in Destination Development

Handcrafts remain an important tool in traditional craftsmanship. Tourists often buy different products to take home as souvenirs or gifts. However, many tourists want to have a varied and rich experience that extends beyond handcrafts and towards gastronomy, performances, local costumes, traditional-style homestays, vernacular architecture, and all other cultural and creative industries that specialize in any particular tourism destination. This fills the hearts and minds of travelers with an emotional experience they will never forget when visiting a new destination. Let alone contributing to a longer stay, which means more spending and a higher rate of tourist satisfaction. Tourists now seek immersive experiences. This includes hands-on crafting, dancing with artisans, and cooking traditional food alongside locals, which promotes slow food and the value of leisurely dining over fast food.

Anhui, China’s Tea Festival: Savoring Tradition and Taste

The Culinary Tapestry of Experience

In the realm of tourism, gastronomy and cuisine hold a key role. The power of local flavors, recipes, and culinary traditions is remarkable. As tourists engage in these adventures, they not only savor the taste of a region but become part of the cultural narrative. Dining becomes an art form, and it is within this artistry that the emotional experience takes root. Travelers are filled with a profound connection to the destination, its people, and its heritage when they share in the preparation and enjoyment of local dishes.

Creative and Innovative Street Food Gastronomy in Hanoi, Vietnam

The journey shifts from being a passive observer to an active participant, shaping a more memorable and profound experience for all. The future of destination development lies in embracing diversity and innovation. Weaving together the threads of tradition and creativity into experiences that captivate and resonate with modern travelers.

The Way Forward and Recommendations

As we conclude our exploration into the revival of local artisans and craftsmanship through tourism, it is evident that the journey is rich with significance, promise, and optimism. Our understanding of the mutual gains and synergies created by the partnership between craftsmanship and tourism has illuminated the path to more inclusive and resilient travel. The importance of intangible cultural heritage cannot be discounted as we shift from a focus on tangible patterns to a profound appreciation for the customs, traditions, and practices that define identities and cultures.

Cities around the world must effectively provide the means and resources to promote the development of creative and cultural industries. The creative economy holds important outcomes in terms of urban regeneration, local economic development, and social inclusion. For tourism and social inclusiveness to be resilient, diversification and innovation in destination development are needed. Celebrating handcrafts, local costumes, performances, and gastronomy have become key components in providing visitors with immersive and emotional experiences.

In the ever-evolving world of travel, it’s not just about seeing new places but about participating in the cultural stories of communities. As tourists seek deeper, more meaningful connections, artisans and local traditions take center stage, crafting unforgettable experiences that contribute to a longer stay and higher rates of satisfaction. The future of tourism and destination development hinges on embracing the diversity, heritage, and innovation that local artisans bring to the table. As we move forward, let us continue to support and celebrate the local artisans who are the guardians of living heritage, ensuring that it thrives for generations to come.

Interested in how we can help you with artisan development and linkages? Contact us to learn more.

Green Investments in Tourism: Unlocking Opportunities and Experiences for Sustainable Growth (World Tourism Day 2023)

Written by Oscar Morrison on . Posted in Blog, Uncategorized.

Green Investments in Tourism: Unlocking Opportunities and Experiences for Sustainable Growth (World Tourism Day 2023)

green and eco-friendly hotel
Green investments in the tourism industry are crucial as we move farther away from the pandemic, as many consumer preferences have shifted to become more eco-friendly.

Environmentally friendly investments have been a hot topic of discussion in recent years, and now they get to live in the limelight thanks to World Tourism Day 2023. This day, on the 27th of September each year, has been created by the UN to highlight the increasing importance tourism brings to economic development worldwide. Many corporations and entities across all industries, from oil to travel, are now forced to consider other sustainable alternatives. These alternatives look different for each company and industry. In the travel industry, green investments look to accomplish six objectives from the hotel’s perspective, according to the UNWTO:

  1. Boost profit margins through utility savings. In some cases, utilities can cost upwards of 20% of a hotel’s operating cost.
  2. Increase revenue by satisfying consumer preferences and reducing reputational risk. Hotels should focus on hiring exceptional staff that leave a lasting impression on the guest.
  3. Future-proof investment strategies. Will investments made today still be considered acceptable in future revaluations?
  4. Safeguard against regulatory risk and benefit from incentives.
  5. Increase value and validation through certification. Companies should be flocking to popular sites used by tourists, like Trip Advisor and Expedia, so customers can leave their positive reviews, which will be done with the right level of service.
  6. Ensure a long-term energy supply. Hotels need to ensure that the flow of customers seen now is sustainable in various economic, environmental, and social conditions.
wasteful, unresourceful resort
All-inclusive resorts are the go-to for many tourists around the world, but hotels attract business by providing an abundance of food and material objects, not sustainable experiences. Learn how Solimar International is tackling this in our current project, Visit Tunisia                                                       

For people working in influential roles within the tourism industry, there is no better time than now to start adopting sustainable investments and initiatives. As we have transitioned into a post-pandemic world, travelers have been exploring more sustainable vacation options than they had before the pandemic. A 2022 Booking.com survey claimed 61% of respondents revealed that they wanted to reconsider how they traveled and were trying to be more conscious of their environmental impact due to travel. This is a massive potential market for emerging destinations around and over-visited cities alike. Tourists want to feel more connected to the places they visit and immerse themselves in local and sustainable experiences like they have never seen before. 

A prime example of work being done in already popular tourist destinations is in the Caribbean. According to the UN, a clean and effective transition to a more sustainable future would increase jobs by 10.5% by 2030. A crucial part of creating and improving more sustainable experiences is ensuring local community members are involved in the decision-making process and providing insight. This is another main topic of World Tourism Day this year. When entities, be they from the public or private sector, choose to invest in local communities, it becomes a virtuous cycle between the locals and the visitors. One of Solimar International’s projects in the Caribbean did just that. The climate-smart islands project ran from November 2017 to December 2018 and focused on islands of three Caribbean nations: Trinidad & Tobago, the Bahamas, and Belize. One of the main activities was to involve locals and their knowledge about how climate mitigation and adaptation efforts could be achieved in practice.

Bay in Tobago
A bay on the island of Tobago, a perfect opportunity to invest in sustainable tourism by promoting homestays and hostels in place of large resorts

World Tourism Day 2023

World Tourism Day 2023 presented by the UNWTO (United Nations World Tourism Organization) is highlighting green investments in tourism this year. They have decided to center this day in accordance with the UN’s sustainable development goals (SDG’s) with an emphasis on female leadership and entrepreneurship. They are also focusing on a variety of issues, including “how to promote ease of doing business, how to better develop investment policies and how to embrace new innovative financial mechanisms and solutions to address emerging and complex challenges,” and “how to close the financing gender gap and accelerate access to capital in both domestic and international markets for women entrepreneurs.” Promoting and uplifting female voices in the tourism industry is crucial. According to the UNWTO, women constitute 54% of workers and employees compared to just 39% in the global workforce. When we take action and strongly consider women’s voices and input, everyone benefits. The world has seen tremendous economic development and poverty reduction under female entrepreneurship, demonstrating why global leadership needs to continue uplifting them.

sustainable global development and investment
The UN’s 17 Sustainable Development Goals (SDGs), designed to be achieved by 2030, cover many direct and adjacent aspects of economic well-being in relation to sustainability, from reduced institutional inefficiencies to care for life all around the planet.

World Tourism Day exists for many reasons, a couple of which, according to National Today, are to ensure that travel is accessible to everyone, especially those with disabilities and people from low-income backgrounds. Promoting world travel is incredibly important for many reasons, mainly because it provides many opportunities for sustainable economic development if done correctly. Hotels are currently responsible for 1% of global emissions (and rising) and are prominent energy and water consumers. 

The Role of Community-Based Tourism

Community-based tourism is one of the best ways to go about green investments in the industry–perhaps the best. This model of tourism allows visitors to truly immerse themselves in new cultures. Knowledgeable community members serving as guides are key in this process. Kyrgyzstan has one of the world’s most robust and developed community-based tourism schemes. Many of the excursions are designed to show nomadic Kyrgyz life all over the country.

green homestay in Kyrgyzstan
A jailoo on lake Son-Kul, where nomadic Kyrgyz people take their livestock in the summer to escape the heat of the valleys. Read more about tourism in Kyrgyzstan

Much of the cost of these excursions goes directly into the pockets of the guides and community, promising the customer that their money is being put to good use. With significant and continued investments from the public and private sectors, community-based tourism will have tremendous effects. 

Overall, the path to investing green in tourism may seem straightforward, but it is easier said than done. In reality, everyone needs to be hands-on and involved constantly because that is the nature of these investments. They will require much more work than simply putting money into a lavish beach resort, but the return on green investments will create a lasting legacy for the people, the planet, and the visitors to a destination. World Tourism Day serves to raise awareness of the importance of tourism around the globe. It is a reminder that while it is easier said than done to put sustainability over short or medium-run profits, green investments, if done well, will prevail. 

Interested in learning more about Solimar’s green initiatives? Read more about us here!

Sustainable travel, how to be a sustainable traveler in 2023

What Does it mean to be a Sustainable Traveler in 2023?

Written by Ellison Fellers on . Posted in Blog, Uncategorised.

The term sustainable travel comes with many interpretations. It can encompass anything from staying in eco-friendly accommodations to taking one less flight.  But, navigating what this means as a traveler can be complicated. In the simplest terms, sustainable travel refers to efforts to engage in environmentally friendly behaviors that limit tourism’s negative impacts on natural environments and local communities. Sustainable travel should be seen as a tool to help conserve natural resources, preserve and uplift cultures and protect the longevity of destinations for future generations. In this blog post, we will touch on some of the challenges the tourism industry faces and provide some thoughtful tips on being a more sustainable traveler in 2023.  

The problems with travel as we know it 

Pre-pandemic, travel was at an all-time high. But this boom did not come without negative implications. Destinations became burdened by overtourism, with some cities experiencing gentrification due to skyrocketing costs of living, increased congestion, pollution and strains on limited resources. Overtourism has also been an issue for destinations without the necessary tourism infrastructure needed to support an influx in arrivals, leading to detrimental environmental impacts on natural ecosystems. All of which ultimately impact a traveler’s experience as well as locals who call the destination home year-round.

In addition to overtourism and degradation of ecosystems, the way we get around results in a serious amount of CO2 emissions, further exasperating the climate crisis. The days of jet setting around the globe, hopping from one country to the next have led to increased emissions, with UNWTO reporting that flights have produced 915 million tonnes of CO2 in 2019 alone. With the interconnectedness of today’s world, low cost carriers and the ease of booking travel, it’s never been easier to get around. But the ease of travel has implications for the environment and society at large.

Overtourism in Italy

Tourism is one of the planet’s largest industries and one of the most significant exports and drivers of economic growth. Tourism accounts for 10% of all economic activity and supports 1 in 10 jobs. It is often the primary source of foreign exchange earnings in developing economies and the most viable option for sustainable economic development. This is true of no other industry. But this doesn’t necessarily mean that the destinations we know and love are benefiting from our visit. 

Tourism leakage occurs when the revenue generated by tourism is lost to outside economies. What this means is that the money you spend in a destination rarely stays there to benefit the local economy. In developing countries, this is a major issue as the very economic activities aimed at catalyzing growth actually do very little. According to estimates by the United Nations Environmental Programme (UNEP), for every $100USD spent on a holiday, only around $5USD stays in a developing country’s economy. This equates to an average leakage of 95% and is a global issue that many key stakeholders are working to improve to secure an equitable future for local community members. For example, in the emerging destination of the Republic of Congo, Solimar International is working on developing projects where tourism dollars directly contribute to conservation efforts and to promote the country as an international ecotourism destination.

Our top sustainable travel tips for 2023

Visiting destinations close to home or halfway around the globe offer travelers the ability to engage with different environments, cultures, and ways of living. These experiences enrich our lives and ultimately shape how we perceive the world – not to mention the impact they have on our personal growth and development. But travel is a two-way street, and the importance of how local community members and destinations are impacted by individual travel behavior should not be undermined. We can all agree that travel gives us so much, but it’s time to begin reflecting on how we can give back to the people and places we visit.

Ditch short inter-destination flights and opt for a local transport option

It’s not all doom and gloom – travelers around the globe are becoming increasingly conscious about their choices when embarking on trips near and far. According to the Sustainable Travel Report published by Booking.com, a staggering 87% of respondents said they wanted to travel more sustainably. But what does that actually mean, and how do those intentions translate to more sustainable travel practices? While there is no single answer, there are many considerations that sustainable travelers of 2023 can consider before departing for their next trip. Below you will find our top considerations to making more well-informed choices during the planning process and while at your destination. 

1. Seek out information from a Destination Management Organization (DMO)

Today’s travel space is flooded with information that can be useful in planning your next dream getaway. From blog posts to Youtube videos, booking engines like Trip Advisor to the influence of social media, the sheer quantity of resources can be super helpful – but also incredibly overwhelming. With algorithms and optimization, the smaller tourism players can be difficult to find from a quick Google search, which leaves travelers in a difficult place during the planning process. But there are ways you as a traveler can seek out those local, equitable and authentic experiences. 

One such way is by looking for a Destination Management Organization (DMO) in the destination you plan to visit. DMOs are the backbone of tourist destinations as they exist exclusively to promote the area, attract visitors and develop a regional economy. Seeking experiences through a DMO can be helpful in guiding travelers toward lodging providers, attractions, restaurants, and retailers that represent the long-term goals of a destination. In short, DMOs can assist you in finding authentic interactions while supporting sustainable tourism initiatives that make the overall experience more enjoyable for you and local community members. 

2. Visit emerging destinations

Another consideration you should be mindful of is choosing where to go. As mentioned above, there are many popular destinations that receive far too many tourists, leading to the various negative impacts of over-tourism. When you’re brainstorming destinations for your next getaway, you should challenge yourself to visit more off-the-beaten-path cities, countries, and regions, also referred to as emerging destinations. Emerging destinations are places with significant potential, where policymakers and local stakeholders alike need to make significant efforts to turn available resources and attractions into appealing tourism products. 

While emerging destinations may not be on the top of your Instagram feed, they can provide incredible experiences for travelers through unfiltered and raw experiences, pristine environments and, the potential to be the only person at a key attraction. Some examples of emerging destinations are Georgia, The Cook Islands, and the Northern Territory of Australia. 

3. Stop in a second city

If visiting an emerging destination is a little too raw for you and your next adventure, a stop in a “second city” is a good alternative. A second city can be any lesser-known destination that may not be the most popular choice for foreign visitors, but still offers the cuisine, culture and attractions of a country. Venturing to a second city will allow you to escape the overcrowded tourist areas all the while providing you with a more immersive look at local life. Instead of checking out Berlin, Canggu, or Phuket – consider Hamberg, Amed, or Ko Chang. 

Wandering the road less traveled and avoiding mega hotspots allows ecosystems to regenerate and will give you a few extra benefits, some that may even be good for your wallet. In general, you can expect your money to go further in lesser sought-after destinations as heavily touristed areas usually charge a premium for food, lodging and even that coffee you get every morning. In addition to many other benefits, going to second cities helps contribute to the local community and economy that otherwise mainly caters to locals. 

4. Choose the right season to travel

When you travel matters and has an impact on the way you experience a destination. Getting your timing right can mean many things like catching that local festival, experiencing the Northern lights or wildlife migration, or avoiding the rainy season in a tropical destination. While all these factors will contribute to and influence your overall decisions, avoiding destinations during peak season will help you be a more sustainable traveler. Have you always dreamed of visiting the canals of Venice or the sparkle of the Eiffel Tower in the evening? We’re not recommending that you throw those aspirations out the window, just that you’re more thoughtful when choosing when to visit. Traveling to those usually packed destinations during shoulder seasons can help minimize your impact on an otherwise overtouristed destination. A shoulder season is the period between high season and off season. Some destinations may be entirely closed during off-season, while others may experience crowds year round. There are some significant benefits to venturing to a destination during a shoulder season for example lower prices, better accommodation options and less crowds. This type of travel is also more considerate to local populations, giving the over-touristed destination a much needed break and spreading out income generation throughout the year. 

5. Do your homework

But really, we mean it. Travelers have the responsibility of making themselves aware of social and environmental challenges destinations may be facing before embarking on their trip. Understanding some of the key issues helps you be more mindful of the way you interact while visiting. This doesn’t mean you need to spend hours researching before you go, but rather that you inform yourself of anything you should be aware of  in order to “do no harm” in-country. For example, tourism often puts additional pressure on natural resources through over-consumption, and this can be especially harmful in places where resources are already scarce. In developing countries where locals may live without the everyday amenities we are accustomed to back home, this can be especially harmful. 

Water scarcity is one such example. Swimming pools, golf courses, perfectly kept gardens and a shower in the morning, in the afternoon after a few hours spent by the sea, and a quick rinse before going to bed – you get the point. While there’s nothing necessarily wrong with these activities (and personal hygiene routines), it ultimately depends on where you are staying. In arid environments, dryer regions, or destinations with less infrastructure in place, engaging in the overconsumption of scarce resources ultimately leaves residents high and dry. The same goes for energy usage. In places with frequent power cuts, you as a traveler have the responsibility to lessen your footprint. Whether it be resource scarcity with water, power, and land, or the pollution created by solid waste, and sewage, the golden rule is to act more in line with locals. It’s a privilege we are able to jetset around the globe! 

The same is true for social challenges. A big part of travel is learning how to be more sensitive to other people’s cultures. But know that these norms may not be the same as back home. Showing respect to elders, understanding how you should dress when visiting sacred places, and avoiding public displays of affection are some minor examples. But being a well prepared traveler requires you to also have a basic understanding of a destination’s political climate, laws and regulations and religious practices. Each and every destination is unique and comes with it’s own nuances and ways of life – that’s what makes travel so special, right? As you move through the world, embrace differences with an open mind, rethink the stereotypes and biases you may have had before your arrival and always respect social norms even if you don’t agree with them. 

6. Actively participate and reflect during your travels 

This one may seem obvious, but you’d be surprised with the number of travelers that bop from one destination to the next with few interactions with local people and places. In today’s globalized world, it’s easy to find the creature comforts of life back home – but is that what travel is really about? Get out of your comfort zone, venture off the main tourist streets, and push yourself to immerse in local experiences. The benefits of active engagement while you travel are two-fold. As a traveler, you’ll receive a multitude of benefits that span far beyond the end of your trip. You’ll have the ability to create more personal connections with the places you visit, which translates into a deeper reflection of the overall experience. Reminisce on your last trip, did you have a meaningful conversation with a local? Did you gain insight into daily life or see firsthand how the souvenirs you eagerly purchased for friends back home were made? Making intentional time for reflection during your travels may provide you with opportunities to gain that valuable insight and reconsider the preconceived narratives you may have had before embarking on your trip. You’ll also gain a deeper appreciation of the destination by having more participatory experiences, and locals will be greater for your eagerness to learn!

Be a more mindful traveler and lessen your environmental and social impact

You can do many things as a traveler to be more mindful when you go abroad. From packing a reusable water bottle, to staying local, the options to lessen your impact on the environment and the communities you visit are endless. As we explore the world, it’s our responsibility to lessen the burden we leave!

To be the first to hear about our future tips on being a more sustainable traveler, follow Solimar’s blog for future updates!

What is a Destination Development Plan and why is it needed?

Written by Anaïs Prado Cornaro on . Posted in Blog, Uncategorized.

Tourism is truly a booming industry and affects many people around the world. Some destinations have flourished, but many have had to endure the negative aspects of tourism. Taking into account all of the global issues we face nowadays, such as climate change and pandemics, it is now more crucial than ever to assure a destination is thoroughly planned and effectively managed. In this blog we cover the question of what a destination development plan is, what process it undergoes and why every destination needs one.

What is Destination Development?

The development of a destination is the process of evolving the location’s supply side of tourism in order to meet the area’s tourism demands. This can be achieved by adding supporting infrastructure, including accommodations, transport, technological advancements, but also intangible aspects like workforce development. Destination development will automatically occur when the demand for a destination increases; so it is vital to ensure it is a strategically executed process.

Why is it important to plan a destination’s development? 

Planning a destination’s development is a crucial process, which provides tourism organizations with the needed tools to achieve a common goal. In any destination the necessary steps must be taken early on in the process to prevent unhealthy growth. 

How do destinations change over time?

Destinations can evolve quite drastically over time, especially emerging destinations. Emerging destinations typically have more local participation. As they become more developed, they get an influx of foreign investors and business owners who can change the feel of a destination.

What are the social impacts of tourism?

It is more or less inevitable for a destination with an attractive tourist offer to become popular. Take for example an emerging destination. With an increase in visitors, more and more outside business interests will see it as an opportunity. Once international interest for the area starts to increase, new challenges and barriers emerge for service providers as they don’t have the training and knowledge to capture markets coming from outside the country.

Without a destination development plan that considers growth, as well as the needs of tourists and service providers, destinations are going to miss that market entirely. This can lead to another investor from the outside with the necessary expertise taking advantage of the growing market.

This in return will entirely change the visitor experience. The destination will lose its authenticity: its uniqueness and with that its ability to compete and differentiate itself from other destinations. 

How can tourism planning help the environment and its protection?

Generally global tourism isn’t known for being environmentally friendly. Increased demand leads to an increase in travel, as well as the destruction of nature to acquire greater space and resources. Even further, this is all done for the few “good” months of the year, in which tourism is optimal.  

However, by introducing a tourism strategy, it is then possible to minimize these effects and maximize the environment’s protection. 

By including a careful assessment of the region’s environmental problems as well as possible threats it could face with an increase in tourism into the destination analysis, one can set a clear goal. One can include these critical environmental aspects into the objectives and incentivize the creation of policies that can protect the destination’s environment. 

In addition, tourism generates two key resources that can be harnessed to protect the environment. 

  • Increased financial income: Earmark a portion of the profits and direct them towards local environmental conservation activities.
  • People’s engagement: Reach agreements with local beneficiaries to make an individual commitment to support the project outcome. 
Set the roots for sustainable destination development
Set the roots and groundwork for sustainable and maintainable growth early on.

What is a Destination Development Plan?

Destination Development Plans (DDPs), also known as Destination Development Strategies or Destination Management Plans, are all closely related tourism plans.

Tourism plans are holistic strategies, dedicated to a defined tourist area, which based upon intricate destination research and a market analysis, form destination specific objectives and correlating approaches. The strategy is designed to create a guiding plan to develop and manage a destination to its specific needs and reach a common goal.

The strategy should always have an outcome in mind to maximize local economic profit and set the groundwork for sustainable and maintainable growth.

Solimar International refers to the term Destination Development Plan, as for most of their sites, development is a major part of the objective. 

What does a Destination Development Plan generally include?

Destination Development Plans can generally be split into two halves. 

  1. Situation Analysis: A detailed evaluation of the destination’s current state. This would include information on existing tourism assets, available tourism services, the industry’s performance and its competitors, as well as involved parties for tourism policy, management, marketing and investment. 
  2. Future Goal: Concluded from the analysis, the future goal is both the desired outcome for the development of the destination as well as the means to get there. It is vital to agree upon a shared vision and form several strategic objectives to focus on.
Chasing a shared destination vision
Make sure you chase a shared and reasonable goal.

How do you make a plan for a Tourism Destination?

The process of making a plan for a tourism destination can differ. This is greatly affected by the type of stakeholders that are involved and especially whether the destination already has a Destination Management Organisation. However they usually all follow similar steps of action.

In the Visit Tunisia Project, where Solimar was contracted to develop a National Tourism Strategy and six regional destination development plans aligning with the national strategy, the process underwent the following steps.

Developing a destination should go step by step
Destination development planning should be a step by step process.

  1. Understand the place and all of its attractions.

    This is especially important for consulting companies like Solimar. Foreign entities cannot just come in and create a plan for a destination; in order to gather on-site knowledge and incorporate different local perspectives in the plan, it is imperative to involve local stakeholders in the process.

  2. Understand the visitor.

    This step will directly influence the path a destination will take. It is important to figure out what kinds of people visit the destination, for how long and when. Once this is understood, it will provide vital information on visitors’ behavior and how to better attract your target audience. This will shape the future of a destination.

  3. Inventory what services are available. 

    It is crucial to understand the destination’s existing human capital, as well as infrastructure (including accommodations, tourist facilities, transportation, signage, retail, hospital facilities, payment options etc.)

  4. Bring it all together with the SWOT Analysis.

    The SWOT Analysis is a final conclusion, drawn from the situation analysis, which displays all of the internal, as well as external positives and negatives to a destination: the strengths, weaknesses, opportunities and threats.

  5. Develop the future vision and its major objectives. 

    With the accumulated in-depth knowledge from the situation analysis, you have the groundwork for what the obtainable future vision will be. The main goal will then be divided into several clear objectives and the needed approaches. Here the destination asks itself, in what direction should this development go? 

  6. Set the plan up for success by ending with an Action Matrix.

    The process of making a DDP already brings its own benefits, however it can easily be abandoned once development begins. Therefore it is indispensable to create a plan of action to accomplish the objectives aimed for. Each strategic initiative should have several actions dedicated to it. For each action it is important to identify the partners responsible for its implementation and create a timeline (near-, mid-, and long-term).

What entities are involved in the process of making a Destination Development Plan?

The question of who is in charge of making a destination development plan, as well as what kinds of entities get involved, mainly comes down to whether the destination already has a DMO which in addition needs sufficient resources and knowledge to complete such a process. In the case where there is not a DMO or they don’t have enough of an experienced workforce, they hire a consultant such as Solimar.

Apart from the DMO or consulting company, there are three separate levels of partners involved in the process of making a destination’s strategy. 

  • Donor: With emerging destinations especially, donors make up the first layer. For example, in the case of the “Visit Tunisia Project,” the donor is USAID. 
  • National level partners: Government institutions or independent organizations given the power by the government to manage the tourism sector or other intersecting sectors. Examples of these include the Ministry of Tourism in Namibia, the Forest Department of Liberia  or the Ministry of Environment in Uganda. 
  • Local industry associations, such as tour guide associations, hotel owner associations or artisanal associations. This third level, especially for emerging destinations without an established tourism organization, creates a deep connection with local stakeholders and lets the local community be represented.

What is the purpose of a Destination Development Plan?

The general purpose of a destination development plan is to guarantee a long-term positive outcome for a destination. It takes into account a destination’s assets as well as opportunities that it’s missing out on. Among the goals of the destination development plan, one is to ensure the destination is competitive and delivers a strong product to satisfy visitors. However more importantly, it creates the framework and guidelines for sustainable development of the destination.

What are the main objectives of tourism planning in a Destination? 

The main objectives for any tourism plan are to:

  • Increase visitor satisfaction
  • Assure a destination’s competitiveness (and foster its uniqueness)
  • Maintain participation and integration of local communities
  • Use of resources and the environment in a sustainable manner
  • Protect cultural heritage 
  • Stimulate Economic growth

In order to achieve these goals, destinations will set up several objectives tailored to its specific needs.

What are the benefits of destination planning?

In addition to making a destination competitive, proper tourism planning will provide perspectives for local communities, ensure the protection of environmental and cultural resources and protect the destination from being overwhelmed by the industry.

So by taking a destination’s assets into account these strategies serve as a guidance tool to tourism organizations. If executed correctly, this creates benefits for more than just economic growth. Planned destinations can:

  • Involve the local community and provide income
  • Minimize environmental impact and drive some of the profits towards its protection
  • Support a destination to stay true to its traditions and uphold its culture
  • Improve understanding of different cultures and relations between guests and hosts
  • Prevent over-tourism
  • Make it more than just another “beach experience”
Destination Development Plans guide the process for the desired direction
Destination development plans help define the desired direction and reach the goal.

What makes Solimar International’s help effective? 

Although each destination is different, the process of making a destination development plan doesn’t change significantly. Not only is the knowledge needed regarding how such plans are structured, but experience and knowledge of the tourism industry is also necessary.

Through Solimar’s vast experience, gained from 200 projects and over 500 destinations, the organization boasts the complete suite of tools needed to help destination’s reach a sustainable goal. This knowledge includes: 

  • Developing a well-defined and well-successful formula for such plans
  • Incentivizing the participation of various stakeholders and create a space for collaboration
  • Having the understanding of the most effective marketing tools that exist 
  • Being well-networked within the private sector of the tourism industry and being well versed in investment promotion
  • Having repeated experience with the later implementation of such plans

If you want to learn more about how tourism can help destination’s develop in the right way, and how our work makes a difference, check out our Virtual Internship Program!

“We rely confidently on Solimar's deep technical experience and professionalism as tourism consultants. You always are exceeding our expectations.”
Leila Calnan, Senior Manager, Tourism Services Cardno Emerging Markets
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