For years, sustainability discussions in tourism largely revolved around big hotel chains, airlines, and multinational travel companies. That is changing quickly. Small tour operators, transport providers, and regional travel businesses are now finding themselves under pressure to share emissions data, sustainability commitments, and ESG disclosures as global buyers tighten reporting requirements. At PATA Annual Summit 2026, industry leaders warned that tourism businesses that fail to understand ESG could soon risk losing contracts, partnerships, and future growth opportunities.
Tourism businesses may soon realise that selling destinations alone will no longer be enough to remain competitive. Sustainability disclosures, emissions reporting, and ESG compliance are rapidly becoming part of everyday business in travel, and the pressure is no longer limited to multinational hotel chains or large tourism corporations. It is now reaching smaller operators, local suppliers, and SMEs that form the backbone of the travel industry across Asia-Pacific.
This shift became increasingly visible at the Pacific Asia Travel Association (PATA) Annual Summit 2026, where industry leaders warned that tourism companies failing to upskill could risk losing relevance with global partners, corporate buyers, and even travellers themselves. The association launched new micro-credential programmes focused on ESG training and future-ready tourism skills, highlighting how urgently the industry is trying to close knowledge gaps around sustainability and reporting requirements.
Natasha Montesalvo, Principal Consultant – Destinations, Strategy & Insights, EarthCheck, said tourism businesses are entering a phase where ESG responsibilities are no longer optional. “Large organisations are now being required to report on Scope 3 emissions, which means they are going back to suppliers asking for data, commitments, and evidence. A lot of SMEs are simply not prepared for those conversations yet,” she said.
“Sometimes operators are getting requests with technical reporting requirements and almost no guidance. Businesses either provide inconsistent information or avoid the conversation altogether. Most of the time they simply don’t have the systems, confidence, or understanding to respond properly. That is where ESG starts becoming friction in partnerships and procurement,” she explained.
According to Montesalvo, one of the biggest issues is that sustainability frameworks were designed for corporations with dedicated teams and resources, while tourism still depends heavily on small businesses managing day-to-day operations. “Most ESG frameworks aren’t designed with SMEs in mind. They are resource intensive and assume businesses already have internal expertise. We wanted to take ESG out of the abstract and make it practical for tourism businesses. The focus is on helping operators understand what ESG actually means and how to respond to partner requirements around emissions and disclosures,” she said.
She also highlighted how ESG is increasingly becoming tied directly to business continuity and future contracts. “Businesses may start losing opportunities simply because they do not understand the language being used or do not know how to respond when information is requested. The entire intent is to make sure tourism businesses have the skills and confidence in place, so that they are ready for those conversations,” she added.
The discussion also linked sustainability closely with long-term resilience. Montesalvo noted that tourism businesses that managed recent disruptions better, from the pandemic and labour shortages to fuel hikes and climate-related challenges, were often the ones with stronger systems already in place. “Businesses that handled disruption well were not simply lucky. They understood their risks, had stronger systems and the ability to adapt quickly. Sustainability and resilience have always gone hand in hand. ESG is not just about reporting numbers. It’s about understanding business risks, protecting operations, and ensuring businesses remain viable in the long run,” she noted.
Citing Booking.com’s latest sustainability findings, Montesalvo said 85 per cent of travellers are actively looking for sustainable options, yet many still struggle to find reliable information from businesses. “There are businesses doing incredible work but staying silent because they are afraid of being accused of greenwashing. The challenge now is not just doing the work, but learning how to communicate it clearly and honestly,” she said.
Perhaps the strongest takeaway from the discussion was that ESG is no longer a future conversation for tourism businesses. “I think the biggest myth is that ESG is just a buzzword and it’s going to disappear. It’s not. ESG is already legislated in many countries, and the expectations will only continue growing across supply chains,” Montesalvo concluded.
Janice Alyosius is a travel and MICE journalist focusing on business travel, destination marketing, aviation and industry policy. She leads editorial content at MICEtalk and also writes for TravTalk, covering global trends, trade developments and key industry conversations. With regular reporting from tourism forums, conventions and on-ground industry events, her work blends news-led analysis with strong industry voices, offering clear context and relevance for travel trade professionals and decision-makers.