Sustainable Destination Management
Strategies in the OIC Member Countries
42
are typically well positioned to overcome investment barriers in certain locations, international
institutions are better able to reduce investment risks by linking projects in several countries.135
Figure 10: Sustainable Tourism Funding Sources
Source: DinarStandard analysis
In most cases, governments support sustainable tourism indirectly by encouraging private
sector financing and investment in sustainability through subsidies, green loans and insurance
for green assets. Public institutions can play an important role in linking tourism projects with
green and other financing instruments such as group lending by microfinance institutions.
However, governments also promote sustainable tourism directly through financing or co-
financing sustainable tourism projects. Government funding is typically focused on preserving
destination competitiveness, promoting social inclusion, and reducing investment in polluting
technologies. In the UK, the government invests in tourism clean tech ventures that provide
services while reducing negative environmental impacts. In Spain, a EUR 60 million grant
initiative was spearheaded by the Ministry of Energy to increase digitalization and energy
efficiency in local tourism destinations. The grant offered financing up to 60-80% per project for
up to EUR 6 million per project with the remaining 20-40% to be financed by the companies
applying for the grants. In Turkey, the Turkish Development and Investment Bank (TSKB) offers
both financing and consultancy services for green investment in the tourism sector, providing
funding in areas such as energy, water, and waste management as well as social impact
management.136
In many instances, governments use the revenue generated from tourism to fund sustainability
activities. In Kenya, the Kenya Wildlife Service, which manages a number of national parks, uses
revenue generated from visitors to the park to finance its biodiversity and conservation
activities. An example of this is the Lake Nakuru where concession fees from the lease of two
lodges and entrance fees from visitors provide financing for conservation activities. The park is
visited by 245,000 visitors a year of which 149,500 are international tourists and 95,500 are
local visitors. International tourists pay $80 for entrance while local visitors are charged $11.137
135 OECD. (2018). OECD Tourism Trends and Policies 2018 . Paris: OECD Publishing.
136 OECD. (2018). OECD Tourism Trends and Policies 2018 . Paris: OECD Publishing.
137 UNWTO. (2012). Destination wetlands supporting sustainable tourism. Retrieved from