Are You “Reef-Aware”?
The 21st century has brought dramatic changes to the travel industry. Likewise, travel consumers have changed significantly. Meanwhile marine environments—especially coral reefs—have declined to unprecedented levels. Under these challenging conditions, successful dive/marine tourism operators must respond with innovative business strategies and creative programs that capture the competing interests of today’s dive traveler.
Few would deny that coral reefs are the basis for the vast majority of marine tourism—especially dive tourism. So, OEI believes the first step to success for a 21st century dive operation is becoming more reef-aware. But by “reef-aware” we mean more than caring about coral reefs and educating your clients accordingly. To us, reef-aware is a bottom-up process of managing your business in a way that recognizes the health of the environment is inextricably tied to the health of your business. There are several steps to accomplishing this restructuring, and we can help you navigate that path. But the end goal is providing a customer experience that’s more than just safe and fun. Today’s diver—whether Millennial or Boomer—wants more; they seek experiences that are truly authentic, informative, engaging and even inspiring.
OEI’s wide range of innovative programs and services can educate you in this cutting-edge science. Moreover, we not only teach you what to teach, but how to inspire your clients in ways that virtually guarantee return business. But to be successful you must first truly know what your business is really all about and how circumstances are changing.
Some Facts About Tourism in the 21st Century
Tourism today, by any measure, is Big Business. In terms of both direct and indirect impacts, tourism is a major contributor to the global economy. It accounts for more than nine percent of global GDP (WTTC 2012). It is one of the largest sources of international trade in services. Specifically, the tourism industry has a value of US$ one trillion a year and accounts for 30 percent of the world’s exports of commercial services or six percent of total exports. This makes international tourism the fourth largest industry in global exports, after fuels, chemicals and automotive products. Travel and tourism also employed (directly and indirectly) nearly 277 million people in 2014, which is equivalent to 1 in 11 jobs on the planet.
By 2025, the number of employed is projected to rise to 356 million and the contribution to the global economy is forecast to reach US$ 11 trillion. According to the United Nations World Tourism Organization, in 2012, for the first time in history, the number of international tourist arrivals reached over one billion. This was a sharp rise in international tourists from 25 million in 1950, 277 million in 1980, and 528 million in 1995. This trend is expected to continue, and international tourists are predicted to reach 1.8 billion by 2030.
Global tourism, in general, is growing at a rate of from 7 to ten percent annually. However, all sectors aren’t growing equally. For example, ecotourism and other forms of nature-based tourism are growing three times faster than the tourism industry as a whole.
Nature-based tourism—which encompasses dive tourism—is among the sectors expected to grow most quickly over the next two decades. For example, in Florida alone, 70 percent of visitors now say they plan to participate in a nature-based activity, up from 48 percent in 1998. (Visit Florida, 2005).
A New Kind of Tourism
Traditionally, the reason for most tourism has been to rest and relax. In the marine sector, this emphasis on leisure is referred to as “sun, sea and sand” tourism. This describes the bulk of marine tourists, and probably always will. But over the past few decades there have been some significant changes. Increasingly, tourists want more from their holiday than a suntan and souvenirs. These more intrepid travelers want a closer and more experiential encounter with the destination they visit. They want more than lying on the beach during the day and partying at night. For many, the primary motivation for selecting a destination is not the quality of its beaches, golf courses or night life, but its relatively undisturbed wildlife and culture. Clearly, as the quality of the underwater environment has always been the primary selection criteria for divers, we have long been in the vanguard of this group that’s now been dubbed the “experiential nature-based traveler.” To this type of traveler, a walled, all-inclusive resort with the nightly buffet and stage show is anathema.
As explained in the previous section, this new “experiential” segment of tourism has been estimated to be growing three times faster than tourism in general; and it has hardly gone unnoticed by many of the larger sectors of the travel industry. It has already led to massive changes in the products travelers now want, and what destinations are now offering.
Initial attempts to meet the needs of these new travelers led to the development of the booming ecotourism industry. From this evolved the idea that travel should not only serve the tourist but the destination and its inhabitants as well. As ecotourism became more mainstream—and in some cases bastardized—newer, more authentic directions were explored, and the market segmented into many more specialized sectors and activities. Then, with the growing recognition of the declining state of earth’s environment, many in tourism began to realize that making tourism more accountable to both the local environment and residents could no longer be just a specialized endeavor targeted to “tree-huggers.” All forms of tourism should become part of the solution, and not part of the problem. From this movement was born the idea of “responsible tourism”, or what’s become better known as “sustainable tourism”—an off-shoot of the growing concern for sustainable development.
But what exactly does sustainable tourism really mean? While arguments rage among the experts in the field, one of the best functional definitions has been offered by folks who have been involved in modern international tourism since its inception, Caribbean islanders. According to the Organization of Eastern Caribbean States, sustainable tourism is defined as, “The optimal use of natural and cultural resources for national development on an equitable and self-sustaining basis to provide a unique visitor experience and an improved quality of life through partnership among government, the private sector and communities.” Importantly, this definition recognizes that tourism isn’t just an economic activity. As it has both environment and cultural consequences, so too must it consider, and be responsible for, its effects.
In general, sustainable tourism has six underlying goals. These include: minimizing environmental impacts; improving local contribution to sustainable development; protecting the quality of the environment by maintaining biological diversity and ecosystem function; minimizing the use of non-renewable resources; ensuring cultural integrity, local ownership and social cohesion of the community; and ultimately—what we at OEI consider our area of expertise--providing a high-quality experience for tourists.
Sixty percent of all leisure travelers in America alone (105.3 million Americans) have taken a “sustainable” trip in the last three years. They spend significantly more (on average $600 per trip), stay longer (seven days compared to four days), and over three-fifths believe they have a great deal of responsibility for making sure their trips don’t harm a destination’s people, environment, or economy (The Role of Sustainability in Travel & Tourism, 2016)
Today, savvy tourism operators trying to cater to the new more environmentally- and socially-conscious traveler have a daunting task. No longer can they be satisfied by having the nicest hotel and restaurant, or best beach, or even the most exciting tours. Many travelers today—a majority of Europe and a fast-growing number from the US, according to recent surveys—are just as or more concerned with other issues. A plethora of guidelines and best practices and resources have evolved over the past decade or so and some—along with a few of the organizations who have developed them—are contained in the “Resources” section of this website.
While this all sounds good, what evidence exists to support the idea that consumers are actually interested and influenced by this growing emphasis on sustainable travel?
In recent years, increasing attention has been focused on protecting and enhancing environmental and social sustainability within entire tourism destinations, and not simply within individual businesses. Tools for measuring and criteria for certifying “green” destinations are gradually being developed, including by UNWTO, European Union, National Geographic’s Geotourism Program, Ethical Traveler, EarthCheck, Green Globe, and Sustainable Travel International. In November 2013, the Global Sustainable Tourism Council (GSTC) released its Criteria for Destinations (GSTC‐D), which represents a common understanding of the minimum requirements for a sustainable destination. Exactly how have such initiatives been embraced by or influenced the travel industry and travelers?
The Changing Consumer
The bread and butter of marine tourism—and particularly, dive tourism—has been the Baby Boomer, those born between 1945 and 1965. This is reflected in the increasing mean age of divers. Of course, as human beings are mortal, this market will eventually disappear. Many assumed that the following generation–the Gen-Xers—born between 1965 and 1985, would fill the niche. Unfortunately, based on feedback from many dive tourism professionals, this simply hasn’t happened. As a result, recreational diving has been in a flat-to-declining growth mode for the past two decades. In fact, enough time has passed that yet another generation—the Millennials—those born between the mid-1990s and early this century are now coming into adulthood and representing a very significant and potentially important marine tourism consumer.
Just why should the dive tourism industry begin focusing on Millennials? Here are some facts: Today, millennials make up 27 percent of the U.S. population and 25 percent of the labor force. By 2020, they’ll be nearly half the workforce; and by 2030, they’re predicted to outspend baby boomers. And they’re taking that spending power and putting it behind one of their passions—travel. More importantly for the dive tourism industry, millennial travelers aren’t doing the typical sun-and-sand vacations or visiting well-touristed cities. Instead, they’re adventurous, seeking experiences and looking for more remote destinations. Here are some other travel-related statistics regarding this group:
Despite the fact that Millennials are coming of age in one of the most difficult economic climates in the past 100 years, a recent Nielsen global online study found that they continue to be most willing to pay extra for sustainable offerings—almost three out of four respondents in the latest findings, up from approximately half in 2014. (By the way, the rise in the percentage of respondents aged 15 - 20, also known as Generation Z, who are willing to pay more for products and services that come from companies who are committed to positive social and environmental impact was also strong—up from 55 percent in 2014 to 72 percent in 2015.) As explained by Grace Farraj, Senior Vice President for Public Development & Sustainability at Nielsen, “Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too.”
Successful tourism operators are those who are constantly assessing their clients. The most savvy are those who seek out and find what might be termed “premium customers.” These are individuals who are willing to pay more for products and services if certain demands and features can be met. Consistently in these “willingness to pay” surveys respondents emphasize the following: product sustainability; companies that are environmentally friendly; companies known for commitment to social value; products made from fresh, natural and/or organic ingredients. In fact, with these more select consumers, statements about price-driving product attributes like sales and coupons don’t even make the top five factors among those willing to pay more. For those willing to spend more, the findings show that personal values are more important than personal benefits, such as cost or convenience.
Here’s some other data from the recent Nielsen’s Global Corporate Sustainability Report.
Millennials also different from Boomers in other ways. A 2016 University of Texas poll reports about sixty-percent of millennials want to reduce the use of coal, twice the percentage of over-65 Americans. Notably, half of millennials support a carbon tax, which again is twice the percentage of senior citizens. And according to a Pew poll, 56% percent of millennials, but only 37% percent of seniors, regard climate change as a high policy priority.
Even among Republicans, there is a gap between millennials and seniors on environmental issues. According to another Pew survey, more millennials say the federal government isn’t doing enough to protect animals and their habitats (60% of millennials vs. 34% of older Republicans), water quality of lakes, rivers and streams (59% vs. 43%) and air quality (49% vs. 29%). Millennials are also less likely to support expansion of fossil fuels – for instance, only 44% of millennials support expanded offshore drilling versus 75% of the Boomer generation. Another survey showed that most young conservatives think human activities are the primary cause of climate change, and a majority also supported the Paris Agreement (pre-Trump).
The conclusion is clear: The travel industry isn’t your daddy’s business anymore.
So, what have we’ve learned so far? First, that travel and travelers have changed dramatically over the last decade. Second, an increasing number of travelers—especially Millennials— want to bring home more than a sun tan and some souvenirs, and instead want to experience the environment and culture of the destination they visit. The challenge is that many within the dive travel industry aren’t equipped to adequately respond, mainly because they lack a professional staff who can do more for clients than keep them safe and entertained. All the market research in the world is worthless unless those in the trenches dealing with clients on a day-to-day basis have the necessary understanding, skills and attitudes to turn opportunity into reality. In other words, to “turn green into green.” So, as business mogul Richard Branson put it, “Put your employees first, and your customers second.” Why, you ask? Click here and find out.
Acknowledgements & Endnotes
OEI wishes to recognize and thank Dr. Martha Honey and The Center for Responsible Tourism (CREST) for much of the research cited in this document. More information about CREST can be found at: www.responsibletravel.org
1 Blue&Green Tomorrow. (Jan 2014). Sustainable Tourism 2014. 3rd edition. <http://blueandgreentomorrow.com/wp‐content/ uploads/2014/01/01.2014‐sustainable‐tourism‐guide‐10MB‐sgl‐ pgs.pdf>.
2 K.S. Bricker. Trends and Issues for Ecotourism and Sustainable Tourism. <https://sustainabledevelopment.un.org/content/ documents/4099Presentation%200.1%20Kelly%20Bricker%20‐% 20full%20presentation.pdf>.
3 ABTA News, (Nov 21, 2013). “ABTA reveals new research on responsible travel.” <http://abta.com/news‐and‐views/press‐zone/ abta‐reveals‐new‐research‐on‐sustainable‐holidays>.
4 Statista. Statistics and Facts on Green Tourism. <http:// www.statista.com/topics/1916/green‐tourism/>.
6 Travel Guard. (April 2013). “Ecotourism Travel Trends.” Travel Guard Update. <https:// www.travelguard.com/newsroom/tgupdate‐ april2013‐Ecotourism‐Travel‐Trends/>.
7 “Survey: 62 percent of travelers go green; hotels could do
more.” (May 8, 2013). Planyourmeedings.com. press release on TripAdvisory.com survey. <http:// planyourmeetings.com/2013/05/08/survey‐62‐percent‐of‐travelers‐ go‐green‐hotels‐ could‐do‐more/>.
8 Survival of the Fittest: Sustainable Tourism Means Business. (July 2012). Forum for the Future and The Travel Foundation. Bristol, UK. pp. 9‐16. <www.thetravelfoundation.org.uk/images/media/ Whitepaper_Survival_of_the_Fittest_2012.pdf>.
9 National Travel & Tourism Strategy. (2012). Task Force on Travel & Competitiveness. Department of Commerce and Department of Interior: Washington, DC. p. 8. <http://travel.trade.gov/pdf/national‐ travel‐and‐tourism‐strategy.pdf>.
10 National Travel & Tourism Strategy. (2012). Task Force on Travel & Competitiveness. Department of Commerce and Department of Interior: Washington, DC. p. 8. <http://travel.trade.gov/pdf/national‐ travel‐and‐tourism‐strategy.pdf>.
11 Vikas Vij. (Aug 9, 2013). “New Survey: Business Travelers Favor Green Hotels.”; Justmeans.com. <http://www.justmeans.com/blogs/ new‐survey‐business‐travelers‐favor‐green‐hotels>.
12 “What is the Size of the Volunteer Market?” (2013). VolunTourismViews. Reflections on Worldwide Voluntourism. <http:// volunteertourismviews.wordpress.com/2013/03/25/what‐is‐the‐size‐ of‐the‐voluntourism‐market>.
13 AIG. (April 2013). “Ecotourism Travel Trends”. <https:// www.travelguard.com/newsroom/tgupdate‐april2013‐Ecotourism‐ Travel‐Trends/>.
14 “Green Exchange Commentary: LOHAS Defined.” (2012). Green Exchange. <http://www.greenexchange.com/Read/ Green+Exchange+Commentary+‐+LOHAS+defined>.
15 Lindsey Hoshaw. (April 28, 2010). “The World’s Best Green Vacations.” Forbes. <http://www.forbes.com/2010/04/28/sustainable‐ adventure‐travel‐technology‐ecotech‐ecotourism.html >.
16 Survival of the Fittest: Sustainable Tourism Means Business. (July 2012). Forum for the Future and The Travel Foundation: Bristol, UK. pp. 7,8, <http://www.thetravelfoundation.org.uk/images/media/ Whitepaper_Survival_of_the_Fittest_2012.pdf>.
17 Survival of the Fittest: Sustainable Tourism Means Business. (July 2012). Forum for the Future and The Travel Foundation: Bristol, UK. pp. 7,8. <http://www.thetravelfoundation.org.uk/images/media/ Whitepaper_Survival_of_the_Fittest_2012.pdf>.
18 Handbook on Tourism Product Development. (2011). UNWTO and European Travel Commission: Madrid, Spain. December 16, p. 11. <http://pub.unwto.org/WebRoot/Store/Shops/Infoshop/4E6D76/ AAE5/BB27/BFFC/ COA8/0164/205F/110907_product_development_excerpt.pdf>.
The 21st century has brought dramatic changes to the travel industry. Likewise, travel consumers have changed significantly. Meanwhile marine environments—especially coral reefs—have declined to unprecedented levels. Under these challenging conditions, successful dive/marine tourism operators must respond with innovative business strategies and creative programs that capture the competing interests of today’s dive traveler.
Few would deny that coral reefs are the basis for the vast majority of marine tourism—especially dive tourism. So, OEI believes the first step to success for a 21st century dive operation is becoming more reef-aware. But by “reef-aware” we mean more than caring about coral reefs and educating your clients accordingly. To us, reef-aware is a bottom-up process of managing your business in a way that recognizes the health of the environment is inextricably tied to the health of your business. There are several steps to accomplishing this restructuring, and we can help you navigate that path. But the end goal is providing a customer experience that’s more than just safe and fun. Today’s diver—whether Millennial or Boomer—wants more; they seek experiences that are truly authentic, informative, engaging and even inspiring.
OEI’s wide range of innovative programs and services can educate you in this cutting-edge science. Moreover, we not only teach you what to teach, but how to inspire your clients in ways that virtually guarantee return business. But to be successful you must first truly know what your business is really all about and how circumstances are changing.
Some Facts About Tourism in the 21st Century
Tourism today, by any measure, is Big Business. In terms of both direct and indirect impacts, tourism is a major contributor to the global economy. It accounts for more than nine percent of global GDP (WTTC 2012). It is one of the largest sources of international trade in services. Specifically, the tourism industry has a value of US$ one trillion a year and accounts for 30 percent of the world’s exports of commercial services or six percent of total exports. This makes international tourism the fourth largest industry in global exports, after fuels, chemicals and automotive products. Travel and tourism also employed (directly and indirectly) nearly 277 million people in 2014, which is equivalent to 1 in 11 jobs on the planet.
By 2025, the number of employed is projected to rise to 356 million and the contribution to the global economy is forecast to reach US$ 11 trillion. According to the United Nations World Tourism Organization, in 2012, for the first time in history, the number of international tourist arrivals reached over one billion. This was a sharp rise in international tourists from 25 million in 1950, 277 million in 1980, and 528 million in 1995. This trend is expected to continue, and international tourists are predicted to reach 1.8 billion by 2030.
Global tourism, in general, is growing at a rate of from 7 to ten percent annually. However, all sectors aren’t growing equally. For example, ecotourism and other forms of nature-based tourism are growing three times faster than the tourism industry as a whole.
Nature-based tourism—which encompasses dive tourism—is among the sectors expected to grow most quickly over the next two decades. For example, in Florida alone, 70 percent of visitors now say they plan to participate in a nature-based activity, up from 48 percent in 1998. (Visit Florida, 2005).
A New Kind of Tourism
Traditionally, the reason for most tourism has been to rest and relax. In the marine sector, this emphasis on leisure is referred to as “sun, sea and sand” tourism. This describes the bulk of marine tourists, and probably always will. But over the past few decades there have been some significant changes. Increasingly, tourists want more from their holiday than a suntan and souvenirs. These more intrepid travelers want a closer and more experiential encounter with the destination they visit. They want more than lying on the beach during the day and partying at night. For many, the primary motivation for selecting a destination is not the quality of its beaches, golf courses or night life, but its relatively undisturbed wildlife and culture. Clearly, as the quality of the underwater environment has always been the primary selection criteria for divers, we have long been in the vanguard of this group that’s now been dubbed the “experiential nature-based traveler.” To this type of traveler, a walled, all-inclusive resort with the nightly buffet and stage show is anathema.
As explained in the previous section, this new “experiential” segment of tourism has been estimated to be growing three times faster than tourism in general; and it has hardly gone unnoticed by many of the larger sectors of the travel industry. It has already led to massive changes in the products travelers now want, and what destinations are now offering.
Initial attempts to meet the needs of these new travelers led to the development of the booming ecotourism industry. From this evolved the idea that travel should not only serve the tourist but the destination and its inhabitants as well. As ecotourism became more mainstream—and in some cases bastardized—newer, more authentic directions were explored, and the market segmented into many more specialized sectors and activities. Then, with the growing recognition of the declining state of earth’s environment, many in tourism began to realize that making tourism more accountable to both the local environment and residents could no longer be just a specialized endeavor targeted to “tree-huggers.” All forms of tourism should become part of the solution, and not part of the problem. From this movement was born the idea of “responsible tourism”, or what’s become better known as “sustainable tourism”—an off-shoot of the growing concern for sustainable development.
But what exactly does sustainable tourism really mean? While arguments rage among the experts in the field, one of the best functional definitions has been offered by folks who have been involved in modern international tourism since its inception, Caribbean islanders. According to the Organization of Eastern Caribbean States, sustainable tourism is defined as, “The optimal use of natural and cultural resources for national development on an equitable and self-sustaining basis to provide a unique visitor experience and an improved quality of life through partnership among government, the private sector and communities.” Importantly, this definition recognizes that tourism isn’t just an economic activity. As it has both environment and cultural consequences, so too must it consider, and be responsible for, its effects.
In general, sustainable tourism has six underlying goals. These include: minimizing environmental impacts; improving local contribution to sustainable development; protecting the quality of the environment by maintaining biological diversity and ecosystem function; minimizing the use of non-renewable resources; ensuring cultural integrity, local ownership and social cohesion of the community; and ultimately—what we at OEI consider our area of expertise--providing a high-quality experience for tourists.
Sixty percent of all leisure travelers in America alone (105.3 million Americans) have taken a “sustainable” trip in the last three years. They spend significantly more (on average $600 per trip), stay longer (seven days compared to four days), and over three-fifths believe they have a great deal of responsibility for making sure their trips don’t harm a destination’s people, environment, or economy (The Role of Sustainability in Travel & Tourism, 2016)
Today, savvy tourism operators trying to cater to the new more environmentally- and socially-conscious traveler have a daunting task. No longer can they be satisfied by having the nicest hotel and restaurant, or best beach, or even the most exciting tours. Many travelers today—a majority of Europe and a fast-growing number from the US, according to recent surveys—are just as or more concerned with other issues. A plethora of guidelines and best practices and resources have evolved over the past decade or so and some—along with a few of the organizations who have developed them—are contained in the “Resources” section of this website.
While this all sounds good, what evidence exists to support the idea that consumers are actually interested and influenced by this growing emphasis on sustainable travel?
- Some 43% of respondents said the ethical or environmental footprint of their vacation was a primary concern in 2014, while an additional 10% said it was a partial concern, according to Blue & Green Tomorrow’s Sustainable Tourism 2014 .1
- 66% of consumers around the world said they prefer to buy products and services from companies that have implemented programs to give back to society, according to a 2012 Nielsen Wire Survey. Of this, 46% were willing to pay extra for CSRs.2
- One in five consumers (21%) said they were prepared to pay more for a holiday with a company that has a better environmental and social record; this has increased from 14% in 2012 and 17% in 2010. There is also growing support for holidays to have an environmental and social rating, similar to star ratings for hotels, with over one‐third (36%) of consumers in favor of this, up from 25% in 2012 and 29% in 2010.3
- 96% of respondents stated that they expected that aircraft would need to be more environmentally sustainable in 2050, according to a May 2012 Statista survey. The company’s research shows that 86% of global travelers felt that aircraft innovations that enabled less fuel consumption and fewer carbon emissions were most appealing.4
- A 2013 Travel Guard survey of travel agents concluded, “‘green travel is here to stay.” The survey found “24% of those who responded noted that interest in ‘green’ travel is currently the highest it's ever been in the last 10 years, and 51% reported that interest has remained constant throughout this time period.”6
- A 2013 TripAdvisor.com survey of 1,300 U.S. travelers shows that nearly two‐thirds “often” or “always” consider the environment when choosing hotels, transportation and meals.7
- “Today’s consumers expect travel companies to build sustainability into their product offer. A majority of 70% believe companies should be committed to preserving the natural environment; 55% favor fair working conditions; 75% want a more responsible holiday and 66% would like easier ways to identify a ‘greener’ holiday. To match these expectations, 84% of those working in marketing and public relations management see ‘green’ credentials becoming increasingly important as environmental issues move to the forefront of customers’ minds,” states a 2012 report by The Travel Foundation and Forum for the Future.8
- “A significant number of international travelers seek out nature‐ and culture‐based experiences, such as visiting historic sites (40% of overseas travelers), cultural sites (23%) and national parks (20%),” according to the U.S. government’s 2012 National Travel & Tourism Strategy.9
- The 2012 National Travel & Tourism Strategy found similar trends among Americans traveling abroad: “Nature‐based, culture‐based, heritage and outdoor adventure travel represent a significant segment of the outbound tourism market as well.”10
- 47% of business travelers prefer staying in a green‐certified hotels, according to Timetric’s Global Business Traveler Survey 2013.11
- In 2012, 35% of adults said they would like to try a holiday involving a voluntourism component and 6% said they had already done so.12
- A 2013 Travel Guard survey found that 38% of travel agents reported that the ecotourism activity most popular with their clients is visiting historical sites, followed by animal‐related activities such as wildlife safaris and bird watching (22%).13
- U.S. consumers who are focused on health and fitness, the environment, personal development, sustainable living and social justice (known as conscientious consumers), number 41 million people, or 19% of U.S. adults, according to a 2012 study by the non‐profit organization LOHAS (Lifestyles of Health and Sustainability). Conscientious travelers are part of this “LOHAS pool.”14
In recent years, increasing attention has been focused on protecting and enhancing environmental and social sustainability within entire tourism destinations, and not simply within individual businesses. Tools for measuring and criteria for certifying “green” destinations are gradually being developed, including by UNWTO, European Union, National Geographic’s Geotourism Program, Ethical Traveler, EarthCheck, Green Globe, and Sustainable Travel International. In November 2013, the Global Sustainable Tourism Council (GSTC) released its Criteria for Destinations (GSTC‐D), which represents a common understanding of the minimum requirements for a sustainable destination. Exactly how have such initiatives been embraced by or influenced the travel industry and travelers?
- Ecotourism has made its mark worldwide as a popular way to see the sights without leaving a trace. Such tourism could grow to 25% of the global travel market within six years and account for US$ 470 billion per year in revenues, according to The International Ecotourism Society (TIES).15
- “Destinations are threatened by climate change impacts, extreme weather, water scarcity, unprecedented rates of biodiversity loss, disease and growing poverty and inequality... Sustainable tourism addresses the challenges head on, by protecting destinations at the same time as enhancing brand value, increasing profits, saving costs, and improving competitive positioning, both for attracting and retaining customers and recruiting the best talent,” according to the 2012 study by The Travel Foundation and Forum for the Future.16
- This 2012 study states further that regarding “the overall issue of who is responsible for protecting the destination as a tourism product, a more holistic approach is now emerging – the idea of destination partnerships. Rather than any one party being responsible for protecting a destination, this is a multi‐stakeholder approach whereby all parties interested in a destination as a resource look at how they can work together to achieve a common goal of sustainability.”17
- “The buildup of consumers’ socio‐environmental awareness of tourism development,” states the UNWTO, “is leading to increased scrutiny on the part of the public in destination decision‐making and a growing requirement for new tourism developments to be sustainable.”18
The Changing Consumer
The bread and butter of marine tourism—and particularly, dive tourism—has been the Baby Boomer, those born between 1945 and 1965. This is reflected in the increasing mean age of divers. Of course, as human beings are mortal, this market will eventually disappear. Many assumed that the following generation–the Gen-Xers—born between 1965 and 1985, would fill the niche. Unfortunately, based on feedback from many dive tourism professionals, this simply hasn’t happened. As a result, recreational diving has been in a flat-to-declining growth mode for the past two decades. In fact, enough time has passed that yet another generation—the Millennials—those born between the mid-1990s and early this century are now coming into adulthood and representing a very significant and potentially important marine tourism consumer.
Just why should the dive tourism industry begin focusing on Millennials? Here are some facts: Today, millennials make up 27 percent of the U.S. population and 25 percent of the labor force. By 2020, they’ll be nearly half the workforce; and by 2030, they’re predicted to outspend baby boomers. And they’re taking that spending power and putting it behind one of their passions—travel. More importantly for the dive tourism industry, millennial travelers aren’t doing the typical sun-and-sand vacations or visiting well-touristed cities. Instead, they’re adventurous, seeking experiences and looking for more remote destinations. Here are some other travel-related statistics regarding this group:
- More than 70% of Millennials took at least one leisure trip in 2013
- Many take four or five trips a year
- 66% of Millennials consider travel a very important part of their life
- 71% of Millennials took short getaways of three nights or less, but were also twice as likely as older travelers to take trips of 14 or more days
Despite the fact that Millennials are coming of age in one of the most difficult economic climates in the past 100 years, a recent Nielsen global online study found that they continue to be most willing to pay extra for sustainable offerings—almost three out of four respondents in the latest findings, up from approximately half in 2014. (By the way, the rise in the percentage of respondents aged 15 - 20, also known as Generation Z, who are willing to pay more for products and services that come from companies who are committed to positive social and environmental impact was also strong—up from 55 percent in 2014 to 72 percent in 2015.) As explained by Grace Farraj, Senior Vice President for Public Development & Sustainability at Nielsen, “Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty among the power-spending Millennials of tomorrow, too.”
Successful tourism operators are those who are constantly assessing their clients. The most savvy are those who seek out and find what might be termed “premium customers.” These are individuals who are willing to pay more for products and services if certain demands and features can be met. Consistently in these “willingness to pay” surveys respondents emphasize the following: product sustainability; companies that are environmentally friendly; companies known for commitment to social value; products made from fresh, natural and/or organic ingredients. In fact, with these more select consumers, statements about price-driving product attributes like sales and coupons don’t even make the top five factors among those willing to pay more. For those willing to spend more, the findings show that personal values are more important than personal benefits, such as cost or convenience.
Here’s some other data from the recent Nielsen’s Global Corporate Sustainability Report.
- 66% of global respondents say they’re willing to pay more for products and services that come from companies that are committed to positive social and environmental impact, up from 55% in 2014, and 50% in 2013.
- The percentage of measured sales that come from brands using both product claims and integrated sustainability marketing promotions is much higher in developed markets than in developing countries.
Millennials also different from Boomers in other ways. A 2016 University of Texas poll reports about sixty-percent of millennials want to reduce the use of coal, twice the percentage of over-65 Americans. Notably, half of millennials support a carbon tax, which again is twice the percentage of senior citizens. And according to a Pew poll, 56% percent of millennials, but only 37% percent of seniors, regard climate change as a high policy priority.
Even among Republicans, there is a gap between millennials and seniors on environmental issues. According to another Pew survey, more millennials say the federal government isn’t doing enough to protect animals and their habitats (60% of millennials vs. 34% of older Republicans), water quality of lakes, rivers and streams (59% vs. 43%) and air quality (49% vs. 29%). Millennials are also less likely to support expansion of fossil fuels – for instance, only 44% of millennials support expanded offshore drilling versus 75% of the Boomer generation. Another survey showed that most young conservatives think human activities are the primary cause of climate change, and a majority also supported the Paris Agreement (pre-Trump).
The conclusion is clear: The travel industry isn’t your daddy’s business anymore.
So, what have we’ve learned so far? First, that travel and travelers have changed dramatically over the last decade. Second, an increasing number of travelers—especially Millennials— want to bring home more than a sun tan and some souvenirs, and instead want to experience the environment and culture of the destination they visit. The challenge is that many within the dive travel industry aren’t equipped to adequately respond, mainly because they lack a professional staff who can do more for clients than keep them safe and entertained. All the market research in the world is worthless unless those in the trenches dealing with clients on a day-to-day basis have the necessary understanding, skills and attitudes to turn opportunity into reality. In other words, to “turn green into green.” So, as business mogul Richard Branson put it, “Put your employees first, and your customers second.” Why, you ask? Click here and find out.
Acknowledgements & Endnotes
OEI wishes to recognize and thank Dr. Martha Honey and The Center for Responsible Tourism (CREST) for much of the research cited in this document. More information about CREST can be found at: www.responsibletravel.org
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