NZ Tourism's Green Shift: Challenges and Opportunities for Businesses
NZ Tourism Green Shift: Challenges for Businesses

Growing Demand for Sustainable Travel

When choosing a holiday destination, more travelers are considering their environmental footprint. A recent survey found nearly three-quarters of travelers consider sustainable travel important, while a UK survey reported 71% feel the same, with almost half saying climate change influences their choices. For eco-conscious tourists, sustainability certifications simplify booking activities and accommodation they feel good about. However, behind the scenes, things are far from straightforward.

Vague Definitions and Confusion

Vague definitions leave businesses to figure out what sustainable tourism actually means. Abstract concepts like “net zero” and “regenerative tourism” often add to the confusion. Then comes the challenge of putting these into practice. Firms must decide how to choose sustainability initiatives, what they involve, and how to maintain their credentials. To build a clearer picture, researchers visited tourism firms across New Zealand to learn how the country’s second-largest export sector can become more sustainable. With the industry aiming to double the value of tourism exports within a decade—while balancing environmental, economic, and social impacts—this green goal is becoming increasingly important.

Costly, Complex, but Worthwhile

Among individual companies, going greener is more of an ongoing journey than a simple destination. For many, taking the first step is difficult enough. Several managers explained they felt overwhelmed and couldn’t figure out where to start, often because they weren’t sure where they were heading. One manager summed up this uncertainty when describing a local council’s goal of becoming carbon-zero by 2030: “Does that mean the electricity? Does it mean the transport? Tell us what the hell that means.”

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Other firms told us that sustainability initiatives that initially seemed simple proved to be anything but. Recycling, for instance, was widely regarded as an easy place to start. But firms found it surprisingly difficult to manage because of seasonal fluctuations in waste and inconsistent sorting by customers. Some eventually hit roadblocks, forcing them to rethink both the sustainability initiatives they pursue and how they enacted them. Such stories highlight that, while worthwhile, becoming more sustainable can be time-consuming and costly. As one operator put it: “You can’t be green if you’re in the red.”

But those early setbacks were rarely the end of the story. For many firms, they became the foundation for broader and more ambitious sustainability efforts. Sustainability initiatives tended to build on one another. Rather than ticking off a checklist, firms often found one change naturally led to the next. Firms’ composting practices illustrated this. Food scraps became compost, which was then used to restore native vegetation around properties. As wildlife returned, some firms introduced predator control and biodiversity monitoring to protect it. This pattern was common across the businesses studied. As firms gained confidence and experience, their ambitions often expanded.

A Moving Target

No two firms studied defined sustainability in exactly the same way or pursued the same mix of initiatives. And despite making significant progress, many still questioned whether their businesses could truly be considered “sustainable”. Some firms were frustrated by what they saw as constantly changing expectations—be that trying to become “carbon neutral”, “net zero”, or “nature positive”. Others viewed this as an ongoing journey, arguing firms could always be more sustainable. Indeed, one of the biggest takeaways from the research is that sustainable tourism is never really “finished”. As firms gain experience, one initiative often leads naturally to the next, creating an ongoing cycle of learning and improvement.

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Practical Steps and Collaboration

Firms can build momentum by starting with what they can control. Tracking energy use, water consumption, and waste can help identify practical first steps. Initiatives that require little effort from customers can also deliver early wins, giving firms the confidence to tackle more difficult sustainability challenges. Firms can also make their progress more durable. Embedding sustainability into standard operating procedures, job descriptions, and staff responsibilities can help ensure good practices continue, even as employees and leaders change. Industry organisations can also play an important role by creating neutral spaces where firms can share knowledge and learn from one another. Helping businesses avoid common mistakes can reduce the time and cost involved in experimenting with new sustainability initiatives. Ultimately, sustainable tourism is unlikely to be achieved by individual businesses acting alone. Progress will depend on continued collaboration between tourism operators, industry bodies, communities, and visitors themselves.