World Tourism Day this year highlights tourism’s potential as an agent of positive change. Each year, the United Nations World Tourism Organization (UNWTO) announces a theme aligned with global priorities. For 2025, the chosen theme is both timely and relevant: Tourism and Sustainable Transformation.
Tourism Beyond Economics
Beyond economic benefits, tourism also positively impacts sustainable development goals, including social progress, education, social upliftment, women’s empowerment, and the creation of new employment opportunities. It also asserts a destination’s soft power and builds a positive international image of a country. At the same time, the exclusion of local communities remains the biggest concern for tourism planners and governments. Instances of over-tourism and burdened infrastructure are also critical issues to address, particularly in the present times, when a sudden surge of tourism is observed in certain places. Unplanned tourist-centric infrastructure development has already had a negative impact on many destinations worldwide, including our ecologically fragile states of Uttarakhand and Himachal Pradesh. The recent landslides, flash floods, and inconsistent weather are all impacts of unmindful and uncontrolled development with disregard for local environments and limits of carrying capacities.
Recognising Tourism as a Specialised Domain
The time has arrived for tourism planning and governance to be recognised as a specialised domain. Despite tourism’s known potential, it is unable to achieve its full potential, particularly due to the inadequate attention given to tourism in India and the lack of sufficient skill development and empowerment opportunities for youth and local communities. It is of utmost importance that we focus on vocational training and high-quality tourism education to align with new-age technology driven by AI and the evolving requirements of modern travellers who seek immersive experiences and story-based tours. A transformation of tourism that is sustainable in letter and spirit is the need of the day and cannot be ignored any longer.
Driving Growth Through MSMEs and Sustainability
Tourism is one industry that is primarily composed of MSMEs, and there is already a strong emphasis on MSMEs in India, with the Indian economy being driven by them. Similarly, tourism also involves micro-enterprises that significantly contribute to the country’s economy, enabling job-seekers to become job-providers and encouraging entrepreneurship in various forms. Tourism thus has the potential to contribute significantly to the Indian economy’s target of USD 5 trillion; however, it is also imperative that this goal be achieved while prioritising sustainable practices over economic targets alone.
Sustainable Investment and Future Directions
UNWTO reports that sustainable investments are a powerful lever for transformation. Between 2019 and 2024, the sector attracted over 2,300 greenfield FDI projects, representing USD 126 billion in investment. Investments in tourism must be directly proportional to sustained climate action, quantifiable benefits for local communities, and social benefits that uplift the marginalised and neglected. Ideally, investment in tourism should now focus on sustainability and offsetting carbon footprints through tourism projects. Key drivers of sustainability in the second quarter of this century include climate responsibility, biodiversity conservation, the development of sustainable infrastructure, conservation of natural resources, and a commitment to leave a better world for future generations over the next three quarters of this century.
Turning Point
The year 2025 is crucial as it marks the end of the first quarter of the 21st century, which has prioritised development more than any period before, and therefore has had the greatest potential to inflict harm on the environment. However, over the next quarter of this century, from 2025 to 2050, we can offset carbon footprints and continue development in a more sustainable and responsible manner than ever before.
Tourism has consistently demonstrated its ability to change lives and create positive impacts for a sustainable future. Therefore, it is essential that we realise its full potential and chart not just a transformation, but a sustainable and responsible transformation.
About the Author: Prateek Hira is the President and CEO of Tornos and heads multiple tour companies in India and internationally. He chairs tourism associations and FICCI’s Tourism Committee in Uttar Pradesh. An accomplished tourism researcher and educator, Prateek sits on the boards of various universities and teaches tourism management at institutions across India and the world.
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