Sustainable luxury tourism: at what cost?

Sustainable luxury tourism: at what cost?

KSA

Offering the promise of extravagance with a conscience, sustainable luxury tourism has become an industry buzz-phrase in recent years, ideally suited to today’s experience-focused, environmentally aware travelers. However, delivering it is far from challenge free. Glenn Mandziuk, CEO of World Sustainable Hospitality Alliance, looks at what’s needed to ensure this growing segment brings benefits all round.

In recent years, the global tourism industry has witnessed a growing trend; sustainable luxury tourism. Once viewed as contradictory terms, sustainability and luxury have converged in a way that promises extravagance with a conscience. Tourists today are not only seeking luxurious experiences, but also demanding that these experiences align with their values of environmental stewardship and social responsibility. However, as this trend grows, it raises important questions about the true costs and benefits of sustainable luxury tourism.

All about giving back

At the World Sustainable Hospitality Alliance, (the Alliance), we bring together engaged hospitality companies and the wider hospitality value chain, along with strategic partners, to address key challenges affecting the planet, people and places around the world. One of these challenges is ensuring that luxury hospitality is truly sustainable. Through our strategic initiatives and global networks, we develop practical programs and resources to create a prosperous and responsible hospitality sector that gives back to the destination more than it takes. Our members represent over 55,000 hotels spanning 300 brands – totaling over 7 million rooms. Our network, of over 50 members, also includes other parts of the hospitality value chain, including owners, investors, suppliers and other partners.

Luxury redefined

The concept of luxury has evolved significantly over the past few decades. Traditional luxury was often characterized by excess, exclusivity and a detachment from the everyday. Today, luxury is increasingly defined by experiences that are authentic, meaningful and aligned with a higher purpose. This shift is partly driven by a new generation of tourists – millennials and Gen Z – who prioritize experiences over material goods and are acutely aware of the environmental and social impact of their choices.

Sustainable luxury tourism aims to marry high-end travel with sustainability principles. This involves offering exclusive experiences that minimize environmental impact, support local communities and preserve cultural heritage. From eco-friendly resorts in remote destinations to wildlife conservation safaris and farm-to-table dining, the offerings in this sector are diverse and appealing. Yet, as this niche market grows, it’s worth examining whether it is as sustainable as it claims to be.

Environmental balancing acts

One of the central pillars of sustainable luxury tourism is reducing the environmental footprint of travel. High-end hotels, resorts and tour operators often emphasize their use of renewable energy, waste reduction strategies and conservation efforts. For example, many luxury hotels now boast LEED certification, indicating that their buildings meet certain environmental standards. Others might highlight their commitment to reducing plastic use or sourcing food locally.

However, the question arises: is this enough? Critics argue that many sustainable luxury offerings amount to little more than greenwashing – a superficial commitment to sustainability that is more about marketing than meaningful impact. For instance, a resort might promote its solar panels and organic toiletries while ignoring the carbon emissions associated with the private jets and long-haul flights that bring guests to remote locations.

In addition to this, the construction and maintenance of luxury resorts in fragile ecosystems can cause significant environmental damage. Deforestation, habitat destruction and the strain on local water resources are just a few examples. Even the presence of tourists in large numbers can disrupt local wildlife and ecosystems, regardless of how ‘sustainable’ the resort claims to be.

Another key aspect of sustainable luxury tourism is its promise to benefit local communities. This can take many forms, such as employing local staff, sourcing materials and food from local producers, and investing in community development projects. The idea is that tourism should not only avoid harm but actively contribute to the well-being of the people who live in the destinations being visited, known as ‘Net Positive.’

Respecting communities and cultures

In practice, however, the impact on local communities can be mixed. While some luxury tourism projects provide jobs and economic opportunities, others may exacerbate inequality and lead to cultural commodification. For example, local workers might be employed in menial, low-paying jobs, while the bulk of the profits from tourism flow to international corporations. Additionally, the influx of wealthy tourists can drive up the cost of living in local communities, making it harder for residents to afford basic necessities.

Cultural exploitation is another concern. In some cases, the demand for ‘authentic’ experiences can lead to the commercialization of cultural practices and traditions. What was once a meaningful ritual or tradition might be turned into a spectacle for tourists, stripping it of its original significance and reducing it to a mere commodity. In recent weeks tens of thousands of protesters have taken to the streets in Spain’s most popular destinations again, calling for curbs on mass tourism and a rethink of a business model that they say has pushed up housing prices and driven local people out of cities. Undoubtedly, we will see more protests, globally.

While luxury tourism can generate significant revenue, it does so by catering to a privileged few. The high price tag of these experiences often means that the benefits of sustainable tourism are not widely distributed. Instead, they are concentrated among the wealthy, both in terms of the tourists who can afford such experiences and the developers and investors who profit from them. Furthermore, the focus on luxury can sometimes undermine broader sustainability goals. For example, the emphasis on exclusivity and personalized service might lead to higher resource consumption per guest, which could offset the environmental benefits of sustainable practices. Similarly, the pursuit of ever-more unique and remote destinations can encourage the development of tourism infrastructure in pristine areas, with potentially harmful consequences.

Transparency: a must

Despite these challenges, there is no denying that sustainable luxury tourism has the potential to drive positive change. When done right, it can lead to significant environmental conservation efforts, support local economies and offer tourists meaningful, transformative experiences.

Transparency is crucial. Hotels and resorts must be honest about their sustainability claims, providing clear and verifiable information about their environmental and social impacts. Certifications and independent audits can help ensure accountability, but they must be credible. The hospitality industry must work closely with local communities, governments and environmental organizations to ensure that tourism development aligns with broader sustainability goals. This includes respecting local cultures and traditions, providing employees with fair wages and working conditions, and investing in long-term community development.

Eyeing ‘Net Positive Hospitality’

Collaboration is a key tactic at the Alliance to accelerate the pathway to ‘Net Positive Hospitality.’ Hospitality companies are increasingly reporting on environmental, social and governance (ESG) criteria, providing transparency on their sustainability efforts and impact. Harmonization of metrics across environmental and social impacts to have industry standards, including measurement methodologies, is vital. The management and curation of data and the drive to simplify and coordinate reporting methodologies, in line with regulatory and stakeholder expectations, will ensure that all hotels are working to one standard. The ambition is to arrive at a set of standards that are relevant, relatable, consistent and comparable across the whole industry.

Sustainable luxury tourism represents a promising but complex set of planning and execution. While it offers the potential for positive change, it also carries risks
of environmental degradation, social inequity and cultural exploitation. To ensure that this trend delivers on its promise,
all stakeholders, from developers and operators to tourists and local communities, must work together to prioritize genuine sustainability over superficial greenwashing. Only then can sustainable luxury tourism be truly sustainable, offering not just luxury for the few, but benefits for all.

Glenn Mandziuk

Glenn Mandziuk,
CEO
World Sustainable Hospitality Alliance
sustainablehospitalityalliance.org 

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