Sustainable Destination Management
Strategies in the OIC Member Countries
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finance consists of financial instruments, such as green bonds, designated for safeguarding
environmental benefits through addressing areas such as clean energy production, air pollution,
biodiversity loss, resource efficiency, and waste and water management. Green bonds, which
enable green investors to monitor the management of funds and their environmental impact,
have been used successfully in a number of destinations to fund sustainability activities. In
France, green bonds were used by the French National Railway Company in 2017 to fund its
sustainability strategies for reducing carbon dioxide emissions and the consumption of natural
resources. In Mexico, green bonds were also used to finance the construction of the New Mexico
City Airport.140 Islamic green bonds, sukuk, have also been used to finance environmentally-
sustainable infrastructure projects. Malaysia was the first country to develop and introduce
green sukuk in 2016 as a result of the collaboration of the World Bank Group Global Knowledge
and Research Hub, the Central Bank of Malaysia and the Securities Commission.141 In 2018,
Indonesia also launched sovereign green sukuk, which reach $1.25 billion.142
Energy efficiency loan facilities have been the most widespread type of loans in the tourism
sector. In Morocco, the United Nations Environment Programme (UNEP) in coordination with
the state electricity organization of Morocco provided subsidized loans to support the use of
solar water heating in hotels. In the United Kingdom, interest-free loans and 100% capital tax
allowances were made available for the use of energy-efficient equipment through the Low
Carbon Trust. Smart incentives for eco-certification have been used to promote sustainable
tourism and encourage businesses to become certified. In Barbados, eco-certification
expenditures and community tourism programs are compensated at a rate of 150% against tax-
assessable income. Both Italy and Spain provide grants for eco-certification.143
Enterprise challenge funds offer subsidies to private investment projects in developing
countries through the use of competitive calls to achieve the Sustainable Development Goals
(SDGs). In the Solomon Islands, the Wilderness Lodge, an ecotourism provider, managed to
double guest accommodation with the support of the Australian Agency for International
Development’s (AusAID) Enterprise Challenge Fund (ECF) with the aimof protecting the world’s
most intact coral reefs and providing economic opportunities to the local community.144
Crowdfunding, which can be debt- or equity-based, is a $35 billion market used by startups to
obtain capital to start their operations. This can be an important tool for tourism businesses
pursuing sustainability activities. WalQlike, a tourism application for exploring cities, is using
crowdfunding to expand. New crowdfunding platforms are emerging that are dedicated to
tourism such as TravelStarter. Voluntary contributions from tourists have been used as a tool
for ensuring the conservation of tourism attractions in many destinations. In the United
Kingdom, a public-private partnership consisting of 180 tourismbusinesses generates an annual
140 OECD. (2018). OECD Tourism Trends and Policies 2018 . Paris: OECD Publishing.
141 World Bank Group (n.d.). Blog.
142 Bahuet, C. (2018). Indonesia’s green sukuk: A leap towards financing for the sustainable development goals. UNDP
Website.
143 UNWTO. (2018). Tourism and the sustainable development goals – journey to 2030. Retrieved from
144 UNWTO. (2018). Tourism and the sustainable development goals – journey to 2030. Retrieved from