Tracking tourism’s impact beyond GDP

A set of 37 indicators designed to help manage the environmental and social impacts of tourism are outlined in a new report from the OECD.

The indicators will guide Malta towards more sustainable practices in tourism, a key contributor to Malta’s economy. Tourism is estimated to have accounted for 10.2% of Malta’s GDP in 2023.

The report refers to the growing strain on local communities and the environment as visitor numbers have reached the three million mark.

The report, compiled by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE), was prepared in response to a request from Malta for technical support in creating a system of indicators to assess and monitor tourism sustainability.

Waste, energy, and water

Waste generation is a central focus. As tourism grows, so does the amount of waste produced, which is typically higher than that of the local population. The report proposes tracking the volume of municipal waste generated by tourists, helping to monitor the pressure on waste management systems. Plans for more accurate data collection are also outlined.

Energy consumption is another key concern, particularly given Malta’s reliance on imported electricity. The report suggested that monitoring electricity usage in hotels to gauge the tourism sector’s energy footprint, providing policymakers with insight into the industry’s electricity consumption.

Water use is similarly significant, as Malta faces water scarcity and relies heavily on energy-intensive reverse osmosis. The proposed indicator will monitor water consumption in hotels and restaurants, shedding light on tourism’s role in the island’s water stress.

To assess the impact of long-distance flights on carbon emissions, the report proposed an additional indicator that will measure the proportion of overnight stays by international tourists who arrive from destinations more than 2,000 kilometres away.

While limited transport options exist for tourists travelling to Malta, the report noted that Malta has the ability to target specific markets. Moreover, another indicator will regularly measure the carbon emissions of airlines.

Community and resident well-being

Beyond environmental concerns, tourism also affects local communities. The OECD report stressed the importance of monitoring how tourism is perceived by residents and how it impacts their quality of life.

One indicator will track local residents’ perceptions of tourism, helping policymakers adjust strategies to better align tourism with local needs. By regularly assessing community views, Malta can address concerns and ensure tourism benefits the local population rather than creating tension.

Another indicator, called tourism intensity, measures how much tourism affects the local population by comparing the number of tourists to the number of residents. This helps identify areas where tourism may be overburdening infrastructure and services, guiding management efforts to avoid overcrowding and ensure a balanced experience for both residents and visitors.

The report also recommended data collection on the proportion of local food served in restaurants and the percentage of restaurants offering local cuisine. Other indicators include monitoring working conditions in the tourism sector, such as employee salaries and retention rates in tourism establishments.

The implementation of these indicators will occur gradually. Some can be introduced immediately using existing data, while others may require further refinement or the collection of new data.

By tracking key areas such as waste, energy, water, and community well-being, Malta can adapt as necessary to mitigate the negative effects of over-tourism. The responsibility for overseeing the implementation and monitoring of these indicators will rest with the Malta Tourism Observatory, a body established in 2022 to oversee the implementation of the Malta Tourism Strategy 2021-2030.