Tourism and development
Tourism offers huge potential for sustainable development. The German travel and tourism sector is a key partner for countries in the Global South seeking to establish sustainable and successful local value chains in the tourism sector. Travel companies also stand to benefit here.
- Accounting for around 10% of global GDP, tourism is one of the largest economic sectors and offers significant potential for growth.
- The Global South presents tourism companies with a broad range of opportunities to diversify their service portfolio and develop sustainable offerings that set them out from their competitors.
- Sustainable tourism infrastructure makes a crucial contribution to the long-term appeal and economic viability of tourism destinations, and to stable local supply chains.
- Tourism businesses benefit from partnerships that train and further educate skilled workers in the target regions.
- By building sustainable tourism offerings in the Global South, the German economy can not only promote development, it can also minimise risks and create resilient business models.
Tourism sector: Seizing opportunities for sustainable growth in the Global South
The tourism industry has been one of the fastest-growing economic sectors for decades. As the number of international travellers continues to rise, so too does its economic importance: in 2023, the tourism sector accounted for around 10% of global economic output. In 2024, the sector even overshot pre-COVID-19 levels. Around one in ten jobs worldwide is directly linked to tourism. More and more people are taking an interest in authentic, eco-friendly and responsible forms of travel. Sustainable tourism is one of the strongest growth trends. Travellers want their visits to have a positive impact – on the environment, on culture and on the local economy. More than half of all Germans have already visited a developing country or emerging country, and many of them now consciously take sustainability and social responsibility into account when deciding where to travel.
The Federal Ministry for Economic Cooperation and Development (BMZ) currently funds more than 50 tourism-related projects. They are usually part of wider programmes aimed at promoting resilience and cross-sectoral development. Cooperation with the private sector is a key success factor here. Companies come up with innovative ideas, contribute expertise and capital, and share responsibility for maintaining social and environmental standards in the destinations. As part of these partnerships and support programmes, travel companies are encouraged to look beyond the boundaries of their business models, help create value locally and promote sustainable regional development.
The Agency for Business and Development (AWE) offers opportunities for tourism businesses and has staff in economically significant regions that are attractive to tourists. Typical starting points for sustainable tourism projects are:
- rural development (e.g. in Albania),
- regional value creation (e.g. in Malawi and Tunisia),
- social inclusion (e.g. in Laos),
- Diversification of income (e.g. in South-East Europe)
- Cultural and environmental protection (e.g. in Tunisia).
AWE’s local contacts connect companies with NGOs and development cooperation stakeholders and help them find suitable partners.
Locations with growth prospects for sustainable tourism include
Southern Africa
Africa is the fastest-growing tourism region in the world. In 2025, the tourism sector here grew by around 10% – driven by safari, business and adventure tourism. Solar lodges, climate-neutral hotels and safari packages that generate local economic value are springing up in countries such as South Africa, Namibia and Kenya, Ethiopia and the Seychelles also saw strong growth as tourist destinations.
Growing revenue is boosting investment in renewable energy, infrastructure development, nature conservation and digitalisation. Partners such as the World Bank and the African Development Bank support programmes that focus on nature-based tourism, community engagement, skills development, climate adaptation and biodiversity conservation.
These trends offer excellent opportunities for tourism providers to enter the market.
South-East Asia
South-East Asia was also one of the world’s fastest-growing tourism regions in 2025. Vietnam in particular – with growth of over 8% – and Indonesia – which has seen its fastest growth in two years – are among the top performers. These destinations are increasingly focusing on climate-friendly infrastructure projects, energy-efficient hotel standards and strategies to reduce plastic and waste in popular coastal regions.
Governments and development banks are also supporting innovation to tackle the effects of climate change and support businesses in their transition to more environmentally friendly business models. Sustainable tourism development programmes have already created 1.2 million jobs in Indonesia alone.
The sector is also continuing to evolve digitally, with data-driven visitor management, AI supported booking systems and smart energy and traffic management solutions opening up new markets.
Through partnerships with development cooperation organisations, companies can develop sustainable solutions and attractive offerings at local level – from climate-friendly hotels and circular economy projects to training initiatives for skilled workers in the tourism sector.
Latin America
Among the most popular tourist destinations in Latin America are countries such as Brazil, Colombia and Mexico. In 2025, Brazil recorded the highest growth in international arrivals worldwide – around 37% more than in the previous year. This growth is the result of targeted government strategies that place greater emphasis on promoting sustainable infrastructure, international connectivity and environmental standards.
Numerous development initiatives are guiding the region along this path and supporting countries in developing national sustainable tourism strategies, with a view to channelling capital specifically into green investment – such as energy-efficient hotels, culture-focused urban regeneration projects and regenerative tourism initiatives in rural areas. Sectors such as renewable energy, biodiversity conservation and upskilling also offer opportunities for forging cooperation arrangements and developing markets.
Eastern Europe
Eastern Europe has been one of Europe’s most dynamic tourism regions for many years now. In 2024, Central and Eastern Europe recorded the highest growth in international tourism of any European region. Countries along the Adriatic and in the Carpathians are seeing particularly strong growth in nature, outdoor and cultural tourism. Rising revenues are also driving investment in sustainable infrastructure such as energy-efficient hotels, waste and wastewater management systems, and the expansion of facilities for hiking, cycling and protected areas. Albania, in particular, has become increasingly popular in recent years, shedding its reputation as a niche destination. In 2024, the country welcomed just under twelve million foreign tourists – an increase of 15% on 2023.
GIZ development initiatives, such as the Green Transition for the Circular Economy programme, support businesses in creating resource-efficient operational processes – for example, through waste reduction, recycling and the sustainable use of energy and materials in tourism businesses. Another practical example is the Peaks of the Balkans long-distance hiking trail, which was developed as a joint initiative by Albania, Montenegro and Kosovo with support from GIZ. This creates a wide range of opportunities for businesses – including nature- and culture-based offerings, sustainable infrastructure and mobility solutions, services relating to regional development and skills training for the workforce.
Support services for businesses
AWE also organises support services for the tourism sector through the Sector Dialogue on Tourism for Sustainable Development, established in 2016.
- Multi-stakeholder partnership: Around 30 companies from the travel industry, tourism associations, non-governmental organisations and universities are involved.
- Working groups and project teams continuously address current issues related to tourism and development.
- AWE organises the sector dialogue in close consultation with BMZ and forges contacts with GIZ tourism projects in the destinations and political stakeholders in Germany.
