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Regenerative Tourism

Regenerative Tourism
Building Sustainable and Luxury Experiences Driven by Technology

As the tourism industry returns to normal, travelers are redefining how their vacations align with their values. Sustainability is not only becoming a key selling point for consumers in booking flights, hotels and experiences, but also a growing area of research and development for travel technology.

The result of this shift is a new movement called “regenerative tourism,” or tourism that leaves a place better than it was found. While sustainable travel aims to maintain the environment and mitigate negative impact, regenerative tourism goes further by proactively reversing environmental damage through anything from volunteering projects to Internet of Things (IoT) sensors.

Travelers became more aware of the scope of travel’s climate repercussions after worldwide pandemic shutdowns. Amidst the devastating effects of COVID-19 on the tourism industry, research revealed a positive environmental impact from the absence of air travel. Lockdowns led to a 14.7% decrease in greenhouse gas (GHG) emissions from the U.S. transportation sector—and a significant decrease in air pollution as a result.

More than 80% of luxury travelers said that the pandemic has made them want to travel more responsibly, and 75% are willing to pay more to do so. Concerns about overtourism are prompting travelers to rethink certain destinations (e.g., avoiding the resurgence of "The Venice Syndrome”) or consider the impact of their vacation on the surrounding community, including residents and the physical environment.

Within the broader population, one-fourth of Gen Zers and almost one-third of Millennials strongly agree that sustainability plays an important role in decisions about where and how they travel, according to Publicis Sapient research.

Not only are most travelers interested in regenerative tourism, but criticizing residents in popular travel locations see it as a positive development, too. According to a recent survey, 96% of Kauai residents are in favor of regenerative travel and say that the effort makes tourism, or rather tourists, more appealing.

But when it comes to sustainable and regenerative travel, what efforts truly move the needle in the eyes of the consumer and on a broader environmental scale? There are a few factors: workforce education, accurate emissions tracking and smart technology management systems.

What is the current state of regenerative tourism?

While sustainability has been a secondary goal for years, regenerative tourism elevates this movement to the core of all travel experiences—integrated into planning and operations.

“It forces tourism companies and destinations to push the envelope, historically, we’ve said we’re reducing x amount of plastic in our facilities, or only washing our linens every other day, and now, the industry as a whole is moving beyond that.”

Sanjana Gandhi , Senior Partner for Travel & Hospitality at Publicis Sapient

While most major airlines and hotel chains have all committed to sustainability, regenerative tourism has remained on the outskirts of the luxury travel sector, with the Red Sea Project leading the movement. John Pagano, Group CEO at The Red Sea Development Company, describes sustainability as “not making a mess of the place” and “standing still,” while regeneration is “trying to make things better.”

The Red Sea Project

One of the biggest goals of the Red Sea Project, a tourism destination under construction in Saudi Arabia, is to increase biodiversity in the area by 30%. The company aims to do this through reconstructing and rejuvenating natural habitats, like coral reefs and mangroves, with innovative technology like 3D printing.

Another major goal of the project is to engage the local community in development. The company has hired 30 local residents to be “sustainability stewards” who are helping to lead environmental efforts and serve as ambassadors to the project.

The future resort destination is a monumental effort, projected to draw one million visitors per year over its span of 50 islands, creating 35,000 jobs and contributing almost $4 billion per year to the country’s GDP.

Marriott International has also joined the initiative, partnering with The Red Sea Development Company on two regenerative resorts in the region.

Until recently, the Red Sea Project was the only well-known example of industrial regenerative tourism. However, new efforts in the space are taking shape within government-sponsored organizations, as well as specific hotel destinations.

Government-sponsored regenerative tourism

A tour company in the U.S. state of Oregon has created a regenerative kayaking experience, which involves removing invasive plants as part of river restoration efforts, along with dinner and wine. The experience is sponsored by the state’s travel commission and a local watershed council.

Canada’s senior vice president of destination development also recently announced a nationwide strategy for regenerative tourism with six outcomes: tourism businesses that are deeply embedded in the communities they are in; good, inclusive tourism jobs that people want; tourism activities that help local cultures thrive and that contribute to ecological abundance and rebalancing of the carbon cycle; and indigenous tourism that’s managed by indigenous people.

New Zealand is already doing the same, specifically in the Bay of Plenty area. Motivated by pre-pandemic overtourism and a government-led net-zero carbon target, different organizations have created online learning programs to educate tourism leaders on best practices. One program, called “Back to Life,” educates participants on how to embody regenerative tourism and support indigenous communities through the travel business.

Some companies that aren’t supported by government initiatives are putting the cost on consumers. In Hawaii, the Mauna Kea resort has added a charitable fee to its room cost, which will be used to support a conservation fund improving water quality and restoring reefs. Marriott also launched a “Good Travel” initiative in 2021, which allowed guests at several Asia hotels to add cultural education or volunteering to their vacation package.

How should travel brands adopt regenerative tourism?

The wider travel industry hasn’t yet adopted regenerative tourism as a part of destination planning and operations.

As major travel brands begin to embrace regenerative tourism, there is one area that’s incredibly undervalued: the tourism workforce.

Elevating the local community through workforce education

Some regeneration initiatives attempt to put the effort or the added cost of sustainability onto the tourist, which is not a bad thing. From optional cultural education activities, to partnerships with nonprofits for volunteer opportunities, to required patron donations to conservation efforts, businesses can facilitate regenerative tourism through their customers. However, local tourism workers can make the most significant impact when it comes to sustainability efforts.

While many hotels rely on imported talent, especially in the MENA region, upskilling local talent in regenerative practices achieves success two-fold. Not only can the hotel workforce serve as ambassadors, educators and spokespeople for sustainable practices, but hotels will also better serve local community members looking for employment.

“Tourism is the number-one employer worldwide, and the number-one revenue generator for many developing countries,” Gandhi said. “The biggest part of sustainability that’s overlooked is community-building. If you educate and upskill the local community to be sustainable and be part of the tourism workforce, that’s a game changer.”

Tourism companies can not only focus on hiring and upskilling local talent, but they can also partner with local small businesses who provide activities, dining, toiletries and more. While sustainability is about sustaining an area, regenerative tourism is about bringing new energy and life. Hotels have an opportunity to not only create new life in an environmental sense, but also in an economic sense.

Measuring and publishing holistic sustainability KPIs

Another area of regenerative tourism where travel brands can make an impact in 2023 is emissions and general sustainability goal tracking. While many hotels are tracking greenhouse gas emissions, improvements and long-term progress aren’t publicized. On top of that, there are many other KPIs that travel companies can measure.

From waste management, to employee well-being, to single-use plastics, there many quantifiable sustainability areas that few airlines or hotels regularly publish progress on. Companies can look at sustainability through a more holistic lens across more categories and track growth more openly.

Similarly, regenerative tourism means adding a positive impact to an environment, not just lessening damage. Most environmental goals focus on carbon neutrality, or net-zero impact, which is just offsetting current and future emissions. Very few hotels have set more ambitious goals of “carbon negativity,” or “climate positivity,” (i.e., the goal of regeneration). In planning future travel experiences, destinations and properties, companies can set the industry standard higher by establishing climate positivity, or regeneration, from the start.

“There’s always this argument: A sustainable building costs about 25% more than a traditional building,” Gandhi said. “But because of the way they operate, they actually make up for that cost with future savings. The same thing is true for talent. The upfront cost of setting up an educational facility and educating people is high, but the cost of consistently importing and replacing talent is consistently higher. The businesses that have adopted regenerative practices will see savings over the years.”

Learn about Publicis Sapient’s carbon management solution.

Implementing smart technology management systems

One of the challenges of tracking sustainability KPIs is the accurate measurement of the data, as well as the storage and analysis of that data. For example, it’s unrealistic to manually track and manage visitor flow; yet, it’s crucial not only to the guest experience but for commitments to annual tourist caps. Setting up cloud-based resort management technology to automatically cap reservations or track visitor flow in high foot traffic areas can help to meet sustainability goals.

When it comes to biodiversity efforts, the Red Sea Project developed a simulation of ocean wildlife, like a digital twin, to evaluate potential impact and damage from construction. This digital map generated a baseline measurement of the environmental conditions and will further measure the effects of the project.

The use of IoT sensors can also be effective in tracking energy output from hotel rooms, or machine efficiency during hotel construction. Another benefit of smart management is the digital guest experience. Travel companies can use their app, website and other technology to give consumers more information about their own carbon footprint, as well as opportunities to feel good about their vacation choice.

Beyond just allowing guests to see their emissions, an app could reward them with points based on decisions they make that lower their environmental impact throughout their stay, like turning off lights or taking an alternate route.

Integrating a digital experience piece also builds loyalty with customers beyond the stay. Rather than just coordinating a turtle rescue activity on the trip, technology can allow guests to “adopt” a local turtle and track its growth and location through the app and a turtle tracker.

It’s about being human-centric and experience-driven and then adding technology, this helps your guest build an emotional connection to your brand and your destination, and may even allow you to put a premium on your pricing.”

Sanjana Gandhi , Senior Partner for Travel & Hospitality at Publicis Sapient

The future of regenerative travel

As the travel industry adapts to a more sustainable society, companies have a unique opportunity in 2023 to stand out to local citizens and vacationers alike by adopting regenerative practices instead of merely sustainable practices. This trend is not only a research-backed selling point for younger consumers, but also the future of modern travel.

In addition to increasing revenue, in the long run, regenerative tourism also ensures that the most popular destinations in the world can continue welcoming tourists for years to come. Travel companies and tourism authorities can shift their top success metric from the number of visitors received to community quality of life instead, which includes resident sentiment and visitor satisfaction. Very few destinations have yet to embrace this change, but in locations like Hawaii, it’s already producing positive results.

“Regenerative tourism is the opportunity to think beyond just sustainability,” Gandhi said. “It is an opportunity to truly create positive impact for all the stakeholders in the tourism ecosystem. We can engage through technology to raise environmental awareness, and not only raise awareness, but encourage people to take care of our planet.”

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