Ticino instead of Tuscany, Graubünden instead of the Balearic Islands - many people want to fly less and vacation in Switzerland instead. The trend towards more sustainable tourism has far-reaching consequences for politics and the economy.
For many people in Switzerland, vacations in their own country are the most popular choice. At least that's what an analysis of 2.6 million search queries published in 2023 on the e-domizil.ch and hometogo.ch portals suggests. According to the study, Graubünden and Ticino are the most popular vacation destinations, ahead of Tuscany, Sardinia and the Balearic Islands. On the one hand, inflation has made vacations more expensive; on the other hand, there is an increased awareness of environmental protection and nature at vacation destinations among the population. «The shift towards more sustainable tourism has the potential to influence various markets at a political, economic and sectoral level. Investors can therefore benefit from the trend in many different ways», explains Hans Selleslagh, Switzerland Spokesman at Freedom24. He estimates the market size of ecotourism at 172.4 billion US dollars with considerable growth potential - particularly through the expansion of sustainable travel infrastructures and services. Freedom24 is an international online broker that operates the Freedom24 investment platform.
There is a gap between intention and actual behavior
However, despite the growing demand for sustainable travel, there is still a gap between consumers' intentions and their actual behavior. This gap offers opportunities for economic growth through the development of environmentally conscious travel infrastructure and services. «In the tourism sector, which accounts for around 11% of global emissions, the pressure to reduce environmental impact is great. Many companies, including airlines, are increasingly focusing on sustainability as a key business objective», says Selleslagh.
In order to do justice to sustainable tourism, travel companies must invest in green technologies, promote carbon offset programs and work closely with interest groups, he propagates. However, according to the expert, the transition to sustainable tourism requires a coordinated commitment from politics, business and consumers.
Which sectors benefit most from sustainable travel
In Switzerland, a wide variety of sectors are benefiting from the current development. For example, rail travel, where Switzerland has been a role model within Europe for years in terms of network density and frequency of connections. «The increased demand for rail services will probably stimulate investment in rail infrastructure and technology», says Selleslagh. Selleslagh is also convinced that camping and outdoor vacations will continue to grow in popularity, as will environmentally friendly hotels and organic farms. This local tourism benefits from authentic experiences with the support of businesses, restaurants or tour operators from the region.
The increasing acceptance of electric vehicles in the private sector, but also among bus companies such as Flixbus, requires an expanded charging infrastructure, Selleslagh points out: «Investors may be interested in companies that are involved in the provision of e-charging stations and related services and are well positioned to benefit from the increasing demand.» This includes charging network operators, energy companies and companies offering innovative solutions for home and public charging.
Tax incentives favor sustainable companies
«Politicians sometimes take drastic measures to reduce emissions. For example, France has banned short-haul flights when train travel is an alternative, and the Netherlands has limited the number of take-offs and landings at Amsterdam's Schiphol Airport», Selleslagh explains. As governments increasingly prioritize action on climate change, investors should consider strategies that prepare them for changes in this area, he advises: «Environmental, social and governance (ESG) factors are increasingly becoming an important part of investment decisions. Against this backdrop, companies in the travel and tourism sector that demonstrate strong environmental responsibility, social commitment and effective management practices can also be prioritized.» Investors should also keep an eye on the introduction of environmental tax incentives. Companies that invest in renewable energies, energy-efficient technologies and sustainable transport infrastructure could benefit from favorable tax conditions and thus become more attractive.
Transformation of aviation offers potential
Although many people intend to fly less and travel more sustainably, the number of passengers at European airports is currently rising again. The aviation industry therefore faces the challenge of meeting the growing demand for air travel while reducing carbon emissions. According to the expert, one of the most promising areas for reducing flight emissions is the introduction of sustainable aviation fuel (SAF), which is derived from renewable sources such as plants or animal materials. «SAF has the potential to significantly reduce greenhouse gas emissions compared to conventional kerosene. However, despite its potential, SAF production is currently limited in scope and faces challenges in meeting the aviation industry's demand», says Selleslagh.
Investors may be interested in exploring opportunities with companies involved in SAF production, research and development, as well as those investing in infrastructure to support SAF deployment. On the other hand, the aviation sector is actively exploring technological advances to improve fuel efficiency and reduce emissions. This includes the development of more fuel-efficient aircraft, improved engine designs and even research into electric or hydrogen-powered aircraft.
Transition could offer significant opportunities for investors
Although these technologies are still at an early stage of development, Selleslagh says they offer significant potential for reducing carbon emissions in aviation. In summary, he says that while greener travel may mean fewer flights, this does not equate to the end of air travel: «The focus is instead on making the necessary flights as environmentally friendly as possible, and this transition could offer significant opportunities for investors.»
