The tourism sector has long been hailed as a catalyst for economic growth, environmental stewardship and cultural exchange. Yet too often, the economic benefits of tourism bypass the very communities that host it.
While climate change, overtourism and resource strain remain pressing challenges, the future of tourism must be defined not just by sustainability but by inclusivity that puts local communities at its centre.
In many destinations, artisans, local guides, farmers, transport providers and other community owned enterprises remain on the margins of the tourism value chain.
Despite thriving local cultures, unique products and rich heritage, they often struggle to compete. Large intermediaries dominate the tourism ecosystem influencing how travellers discover, book and engage with destinations.
As a result, local businesses are left with little bargaining power or visibility, and this imbalance entrenches dependency within the tourism sector instead of delivering empowerment.
When local communities actively participate in tourism, the benefits go far beyond income. Community-led initiatives ensure that tourism development is grounded in local values, knowledge and aspirations. This fosters deeper cultural exchange, encourages environmental sustainability and builds local pride.
It also improves the visitor experience, offering travellers more meaningful and authentic encounters. By embedding tourism within the community’s social and economic fabric, destinations become more adaptable, resilient, and likely to generate lasting value that remains in local hands.
Addressing the structural imbalances in the sector requires a fundamental shift toward tourism models that place communities at the centre of decision-making and value creation for benefits to flow back to the people who sustain the destinations.
Governments have a central role in shaping an inclusive tourism economy. Beyond regulation, they can act as enablers expanding market access for local enterprises through national platforms, certification schemes, and inclusion in global booking systems. Incentives and procurement policies can encourage hotels and operators to source locally, keeping more of the tourism spend in communities.
To reduce economic leakage, governments should also support the growth of locally owned businesses across related sectors including agriculture, manufacturing and services that can supply goods and inputs to the tourism industry. Targeted grants, low-interest loans and de-risking mechanisms can help small-scale actors access capital for their tourism enterprises.
Equally important is public investment in local talent for employment in the hospitality and tourism sectors in tourism related and digital skills as over-reliance on imported labour undermines community ownership and trust.
At the same time, stronger land rights and heritage protections can safeguard communities from displacement and cultural erosion.
At the 2024 World Travel Market in London, global tourism leaders highlighted how AI and digital platforms are transforming the sector, not just for revenue generation but as a driver of equity, empowerment, and cultural preservation.
These tools are helping shift communities from the periphery to the centre of tourism experiences. Technology enabled solutions are bridging the gap between travellers and local providers by reducing marketing costs, eliminating intermediaries and enabling direct, authentic connections.
Smart recommendation engines match tourists with community-led experiences with blockchain systems enabling fair, direct payments.
Real-time translation tools also break down language barriers, enabling more direct and meaningful communication between travellers and local hosts.
With the right support, even the most remote communities can use these tools to reach global markets and showcase their unique offerings.
Digital access alone is not enough, as many communities still face barriers from lack of power, poor connectivity and limited digital literacy to lack of finance.
To ensure no one is left behind, governments and development actors must invest in infrastructure, skills development and inclusive financing. They must also ensure that digital tools including AI are locally relevant, support meaningful community participation and help, deliver tangible benefits across the tourism value chain.
Beyond community participation, technology has the potential to drive sustainability in the tourism. The sector is resource-intensive, contributing significantly to energy use, emissions and waste and travellers are demanding more responsible options.
Technology enabled solutions including AI-enabled solutions like smart energy systems to food waste reduction can help tourism businesses meet these demands, lower costs and enhance efficiency.
At the Tony Blair Institute we are working alongside governments like the Government of Zanzibar to reimagine tourism, as a strategic sector and driver of inclusive growth that is community led, tech enabled and environmentally sustainable.
Countries that can combine smart policy reform with private sector collaboration and a strong focus on local participation are best placed to build tourism sectors that are competitive, resilient and genuinely transformative.
The future of tourism must be smart, sustainable, inclusive; rooted in the people who give the places meaning, so they can share in its future.
The writers are the Senior Advisor (Global Lead), Industry & Commerce and Tourism Expert respectively at the Tony Blair Institute for Global Change
