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Build & Evaluate a Sustainable Tourism Business Model

LAB IT - Fondazione Comunitaria Agrigent

Created on April 12, 2026

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GREEN2GROW

Build & Evaluate a Sustainable Tourism Business Model

Let's start!

Sustainable Tourism Business Challenge

Design, measure, and evaluate your business model

You are about to create a tourism business model. Your decisions will determine:
  • sustainability
  • competitiveness
  • long-term success

Start the Challenge

Your Role

You are launching a tourism business in a rural destination. The destination:

  • wants sustainable tourism
  • values local identity
  • seeks long-term resilience
Create a business that is: βœ” Competitive βœ” Sustainable βœ” Measurable

Goal

Continue

Step 1 β€” Choose Your Business Model

+ info

πŸ”΄ OPTION A β€” Economic Underperformance

Diagnosis: Economic Underperformance

This interpretation is not supported by the data, and it reflects a common misunderstanding in tourism analysis. All the indicators suggest that tourism demand is actually growing significantly:

  • visitor numbers are increasing
  • employment is rising
  • activity levels are expanding
The issue is not a lack of economic performance β€” in fact, the system is experiencing strong growth. However, this growth is unbalanced. Tourism problems are often not caused by too little demand, but by poorly managed growth.

+ info

Continue

🟒 OPTION B β€” Environmental Pressure

Diagnosis: Environmental Pressure

This is the most accurate interpretation of the data, but it is important to understand it in depth. Several indicators clearly point toward increasing environmental stress: Energy consumption is rising significantly β†’ higher resource demand Water use is increasing β†’ potential pressure on local resources Emissions are growing β†’ impact on climate and air quality These are classic signals that tourism activity is exceeding or approaching environmental capacity. However, environmental pressure is not an isolated issue β€” it is often the first visible symptom of a broader system imbalance.

+ info

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πŸ”΄ OPTION C β€” Lack of Promotion

Diagnosis: Lack of Promotion

This interpretation is clearly misaligned with the available data. All the indicators show that the destination is already experiencing strong and increasing demand. Visitor numbers are rising rapidly, and pressure on resources and infrastructure is increasing. This means that the destination does not suffer from lack of visibility β€” in fact, it may already be overexposed.

+ info

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πŸ”΄ OPTION D β€” Low Demand

Diagnosis: Low Demand

This is the least accurate interpretation, and it contradicts all available indicators. The data clearly shows:

  • strong growth in visitor numbers
  • increasing resource consumption
  • rising environmental pressure
These are all signs of high and possibly excessive demand, not low demand. Misinterpreting high pressure as low demand can lead to serious strategic errors, such as:
  • investing in promotion
  • expanding capacity unnecessarily
  • ignoring sustainability constraints

Continue

+ info

Step 2 β€” Carrying Capacity Analysis

Continue to stakeholder mapping

Step 2 β€” Carrying Capacity Analysis

Continue to stakeholder mapping

🟑 OPTION β€” PHYSICAL CAPACITY

Physical Capacity

Physical capacity refers to the tangible, measurable limits of infrastructure and space, such as:

  • accommodation availability
  • transport systems
  • access points (roads, parking, ports)
  • maximum number of visitors in a site
In this case, physical capacity is under pressure but not yet the primary constraint. There is no clear evidence that infrastructure has reached its absolute limit β€” for example, there is no indication of complete saturation of accommodation or access systems. However, the rapid growth in visitors suggests that physical capacity may soon become a critical issue if current trends continue.

+ info

Continue

🟒 OPTION β€” ENVIRONMENTAL CAPACITY

Environmental Capacity

Environmental capacity is clearly under significant pressure in this scenario. The indicators provide strong evidence:

  • Energy consumption is increasing β†’ higher environmental footprint
  • Water use is rising β†’ potential resource stress
  • Emissions are growing β†’ impact on climate and air quality
In a coastal destination, this can translate into:
  • degradation of marine ecosystems
  • pressure on freshwater resources
  • pollution and habitat disruption
Environmental capacity is often the first system limit to be exceeded, especially in destinations with fragile ecosystems. What makes it particularly critical is that environmental damage can become cumulative and irreversible if not addressed early.

Continue

🟒 OPTION β€” SOCIAL CAPACITY

Social Capacity

Social capacity refers to the level of tourism that local communities are willing to accept without experiencing negative impacts. In this scenario, social capacity is clearly under pressure, as indicated by:

  • increasing resident complaints
  • growing perception of tourism-related disruption
These pressures may be linked to:
  • overcrowding in public spaces
  • rising cost of living
  • changes in local identity
  • pressure on services and infrastructure
Social capacity is particularly important because it directly affects social stability and governance. When it is exceeded, it can lead to:
  • conflicts between residents and tourists
  • resistance to tourism policies
  • reputational damage

Continue

🟒 OPTION β€” PSYCHOLOGICAL CAPACITY

Psychological Capacity

Psychological capacity refers to how tourism is perceived and experienced, particularly in terms of crowding and quality. It affects both:

  • visitors β†’ experience satisfaction
  • residents β†’ perception of livability
In this scenario, psychological capacity is likely under pressure due to:
  • concentration of visitors in peak periods
  • overcrowding in key areas
  • reduced quality of experience
Even if physical capacity is not fully exceeded, visitors may feel that the destination is overcrowded. This leads to:
  • lower satisfaction
  • negative reviews
  • reduced likelihood of return

Continue

Step 3 β€” Monitoring Strategy

Continue

Monitoring System Built

You now have: βœ” Spatial data βœ” Behavioral data βœ” Real-time insights πŸ‘‰ You can move to action

Choose Strategy

Step 4 Management Decision

Go to strategies

STRATEGY OPTIONS

A β€” Restrictive βœ” Immediate control ⚠ Economic risks ⚠ Community resistance B β€” SMART (BEST) βœ” Balanced approach βœ” Uses data + nudging βœ” Sustainable C β€” Wrong ⚠ Increases pressure ⚠ Ignores limits

Check Strategies!

Continue

🟑 OUTCOME A β€” RESTRICTIVE APPROACH

Continue

🟒 OUTCOME B β€” SMART MANAGEMENT

Continue

πŸ”΄ OUTCOME C β€” MARKET EXPANSION

Continue

Reflect on Your Decisions

Tourism management is about systems, not isolated actions

Questions

  • Did you use data effectively?
  • Did you consider all capacity types?
  • Did you balance impacts?

Continue

Final Takeaways β€” Managing Tourism as a System

Effective destinations develop three core capabilities:

From isolated actions to integrated, data-driven governance

End simulation

If you have questions, please get in touch with us!

https://www.green2growproject.eu/

office@benevent.bg

+123-456-7890

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With Genially templates, you can include visual resources to leave your audience speechless. You can also highlight specific phrases or data that will be burned into the memory of your audience, and even embed external content that surprises: videos, photos, audios... Whatever you want!

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With Genially templates, you can include visual resources to leave your audience speechless. You can also highlight specific phrases or data that will be burned into the memory of your audience, and even embed external content that surprises: videos, photos, audios... Whatever you want!

Write a title here

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With Genially templates, you can include visual resources to leave your audience speechless. You can also highlight specific phrases or data that will be burned into the memory of your audience, and even embed external content that surprises: videos, photos, audios... Whatever you want!

TOOL SELECTION

GIS βœ” Understand spatial flows Surveys βœ” Understand perceptions Tracking apps βœ” Analyze movement patterns Dashboards βœ” Enable real-time decisions