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The travel and tourism sector is intrinsically tied to the impact of humans—on each other and the planet.
The industry has many environmental challenges to address, from the depletion of natural resources to travel-related pollution and the degradation of physical environments. There are also negative social impacts of travel and tourism, such as overdevelopment, dilution of local cultures, displacement of local communities, overtourism, and ongoing cultural clashes. Many tourist hotspots have become playgrounds for those from more developed countries.
Companies in the sector must mitigate the negative impacts of travel and tourism, especially as ESG concerns receive more attention from younger consumers, governments, regulators, and investors. There are a host of ways for travel and tourism companies to address the challenge of ESG, including reducing their carbon footprint, curbing water consumption, minimising energy usage, managing waste generation, and educating tourists about responsible behaviour.
Failure to act will lead to reputational damage for travel and tourism companies, as well as potential regulatory penalties and ultimately impacts on their profits.
IoT and ESG in travel and tourism
GlobalData’s strategic intelligence report on the Internet of Things (IoT) predicts that the total global IoT market will reach $1.8trn in revenue by 2028. The ability of IoT to control and monitor the environment can assist in addressing ESG challenges. For example, smart lighting and thermostat technology can be used to monitor and adjust the environment of lodgings and touristic attractions as needed, improving energy efficiency and combatting climate change.
Under the umbrella of IoT, smart city technology can also track and adjust the environment across tourist destinations, for example in the form of smart buildings that integrate energy-efficient technology throughout cities.
IoT can further alleviate the burden of overtourism. For example, where daily caps on tourist arrivals are hard to keep and monitor manually, IoT systems can re-route travelers’ foot flows and manage crowds. This also has positive social benefits by appeasing residents of places subject to overcrowding.
The industrial internet
The Industrial Internet is another segment of IoT that can work beyond traditional heavy industries to preserve heritage sites and physical environments, for example by using asset tracking and digital twin technology.
The former can continuously track and monitor the state of a tourist site from conditions, such as temperature, to real-time footfall and more. The latter can go further by creating digital representations of physical assets, attraction sites, or systems to track real-time conditions and use data analytics, including AI, to recommend the best ways to manage tourist hotspots.