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The tourism industry's path to success lies in ethical labor practices

Addressing poor working conditions and human rights violations in the tourism sector isn't just ethical—it also makes good business sense, according to researchers at the University of Surrey.

Commissioned by the International Transport Workers' Federation (ITF) and IUF, the report examines the S in ESG (environmental, social, and governance) trends, risks, and opportunities in the travel and tourism industry, which employs 290 million people worldwide. Despite this reach, workers in the sector, especially the sector's most vulnerable workers—women, migrants and those in undeclared roles—are at high risk of exploitation.

Dr. Anke Winchenbach, lead author from Surrey Business School, University of Surrey, said, "Sadly, the travel and tourism sector continues to be plagued by poor pay, unsafe working conditions, and, in some cases, modern slavery. Enforcement is often weak or absent, even where laws exist to protect workers.

"With ESG reporting increasingly becoming mandatory, businesses and governments who ignore social risks will not only face legal compliance issues but also lose out on attracting talent and business and investment opportunities in the future.

"With customers becoming more socially conscious, it is both a moral obligation and a smart business move for the sector to tackle these deep-rooted issues before it's too late."

The report offers seven recommendations to help businesses, governments, investors, and unions create a more sustainable future for the industry:

• Set up partnerships that include different groups and have clear rules, laws, and ways to ensure they're followed.
• Improve access to unions and trusted experts in labor and human rights.
• Carry out assessments to identify the most important labor and human rights issues.
• Create policies with clear goals to improve working conditions.
• Use reliable measurements, involve employees in gathering data, and be open about the results.
• Consider both the direct impacts and those in the supply chain.
• Share progress openly to build trust and accountability.

The report is based on a comprehensive literature review and 29 in-depth interviews with industry leaders, global trade unions, and financial experts. The research team also analyzed four key frameworks—European Sustainability Reporting Standards (ESRS), UN Tourism's Statistical Framework, the Global Sustainable Tourism Council Criteria, and the World Benchmarking Alliance, to identify the most pressing risks and opportunities for improving labor and human rights in travel and tourism.