KPIs that drive change – How to measure sustainability in tourism
The long-term preservation of economic, environmental, and social systems is becoming increasingly critical, prompting the development of guidelines for responsible tourism management.
Striving for sustainability in tourism is an admirable goal—but how can we truly determine whether a destination is sustainable, and to what extent? How do we measure the impact of our efforts? Both public policy and private initiatives depend on robust data to understand the scale of the challenges, identify root causes, raise awareness, and ultimately assess the effectiveness of implemented measures.
Evidence-based insights are essential to determine whether tourism is developing sustainably, how far that development has progressed, and whether stronger policy commitments may be required to accelerate sustainability performance.
Sustainability indicators are well-established tools for evaluating and monitoring sustainable development strategies. They provide insights into the impacts of tourism activities and whether these impacts are acceptable. By distilling complex information, such indicators support better decision-making and more effective action. At the same time, they reflect the perspectives, ideas, and values of diverse stakeholder groups.
As an “early warning system,” sustainability metrics enable evidence-based decisions on strategies and interventions. They generate the knowledge needed to take responsibility. Meaningful indicators allow conclusions to be drawn about the state and evolution of relevant economic and socio-ecological systems, with parameters relating to either causes or effects. This information forms a basis for identifying issues within a destination and continuously evaluating them – helping to mitigate future risks for tourism and the wider region.
The challenge, however, lies in selecting the right KPIs – those that are truly measurable and allow for an objective assessment. How can KPIs and effective monitoring be used to support the transition toward genuine sustainability? These questions are at the heart of our “Tourism Impact Alliance” project. In 2023, we convened a multi-month Impact Panel – a think tank that brought together key stakeholders from destinations and certification bodies for in-depth discussions. This process continues within our project team, alongside certifiers and partners in destinations, particularly in Latin America.
Destinations as active shapers of a regenerative economy
The future of our planet no longer depends on businesses and destinations merely “complying” with societal and regulatory sustainability requirements. What is needed is a proactive role in shaping a sustainable and regenerative economy – one that ensures the restoration and regeneration of ecosystems. In a destination context, a regenerative economy also requires social inclusion, the empowerment of women, and the reduction of social inequalities. Destinations have the power to influence consumption patterns and lifestyles. The key question is whether their offerings contribute to achieving the United Nations Sustainable Development Goals and operate within planetary boundaries – or whether the business models of destinations and their service providers continue to follow a linear “take–make–dispose” logic that depletes finite resources and drives pollution.
Destinations and the businesses within them can play a decisive role in advancing a regenerative economy. The choice of KPIs is also a strategic question: should the focus remain on financial indicators and GDP growth, or should intangible benefits and the common good take precedence? A strong focus on KPIs and clearly defined qualitative criteria can have significant impact – if consistently aligned with overarching goals. What is identified as unsustainable in an assessment should no longer continue. A paradigm shift and a change in direction for destinations are entirely possible, and clearly defined baselines and targets, supported by KPIs, are a crucial tool in this process. To this end, we will develop a complementary “maturity assessment” framework.
In search of the most effective impact KPIs: A shared KPI framework for destinations
There is already a long history of proposals, studies, guidelines, and indicator frameworks for tourism. We build on these insights and combine them with our own practical experience. Our goal is to develop a pragmatic proposal—fully aware that identifying a single set of indicators suitable for all contexts is a challenge. We want to avoid burdensome, time-intensive data collection processes that fail to deliver tangible improvements in destinations, as well as the accumulation of unnecessary data. Our focus is on creating a practical, actionable framework that drives real change on the ground, rather than producing purely theoretical concepts. We rely on a collaborative process that harnesses the creativity and collective intelligence of all stakeholders involved.
The role of KPIs
We recognize that measuring sustainability performance is essential for improving management and enabling successful transformation. At the same time, we do not believe in a “magic KPI effect,” where simply introducing indicators automatically leads to meaningful progress. A study by Dr. Gloria Crabolu on destinations applying the European Tourism Indicator System offers a sobering insight: only 8% were able to demonstrate tangible improvements. We need to do better.
Key considerations in the joint development process
Our focus is on developing a concise KPI framework that can be applied across destinations. While not every KPI will be relevant in every context, each destination should select those that best align with its tourism strategy and sustainability objectives.
To ensure comparability between destinations and to drive meaningful improvements, we aim to define a set of 5 to 10 KPIs. These indicators must be relevant, globally applicable, comparable, and easy to measure.
We are fully aware that data collection is often challenging—or, in some cases, not feasible at all. Sustainability indicators frequently suffer from data gaps and limitations in terms of temporal and spatial coverage. It has been shown that infrequently collected, large-scale datasets can hinder the overall evaluation of indicators. Destinations, in particular, struggle to measure complex issues such as environmental impacts or tourism pressure—especially where tourism is dispersed and density varies across regions. This highlights the need for clear data definitions and methodological rigor for each indicator.
Another challenge in defining indicators is securing the motivation and willingness of entities to provide data. Encouraging businesses and destinations to share data is critical. To achieve this, the benefits and purpose of sustainability performance assessment must be communicated clearly and convincingly.
We acknowledge the challenges of data collection. However, this should not be seen as an argument against introducing a KPI framework. We will gather KPIs wherever possible and complement them with a “maturity model.”
We are starting small and keeping it simple—but we are starting. The first version may not be perfect, but it will evolve and improve over time. We see ourselves as a learning system.
Systemic indicators for the holistic nature of destination systems
We have explored in depth how to account for the complex systems within a destination. Even the most carefully designed KPI framework cannot fully capture this complexity. KPIs are inherently linear and one-dimensional. This is why we need an additional tool that integrates qualitative and systemic aspects and reflects real-world impacts. We are currently developing a maturity model inspired by natural systems and cooperative dynamics within ecosystems. More details will be shared in our next newsletter.
Interested in learning more about our shared KPI framework?
Feel free to get in touch. We will be happy to share our current proposal and keep you informed about further developments. We are collecting feedback until mid-November, after which we will publish a KPI framework to be tested in pilot destinations.
We look forward to your input as we work towards solutions with lasting impact.
Contact: Koschwitz@tourcert.org
At a glance
Category
Published on
Reading time
3 Minutes
Share this article:
Tags
KPI for Measuring Sustainability Impact | KPIs für Nachhaltigkeit | KPIs im Tourismus | Nachhaltiger Tourismus | Tourism Impact Alliance | Tourismuskennzahlen | Umweltauswirkungen | Umwelteinfluss | Wirkungsmessung
Do you have any questions?
We’d be happy to discuss our services with you and help you find the solution that best fits your needs. We look forward to hearing from you!
Günter Koschwitz
Partner I Founder