SDGs at risk without fair governance in Industry 4.0 tourism digitalization

The study outlines a dual reality: while digital tourism platforms offer unprecedented efficiency through AI-powered personalization, dynamic pricing, and real-time itinerary management. These capabilities align with Sustainable Development Goals (SDGs) such as SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). On the other hand, these same tools concentrate power in the hands of a few multinational players, leaving small and medium-sized enterprises (SMEs) dependent on dominant online travel agencies (OTAs).


CO-EDP, VisionRICO-EDP, VisionRI | Updated: 16-04-2025 09:49 IST | Created: 16-04-2025 09:49 IST
SDGs at risk without fair governance in Industry 4.0 tourism digitalization
Representative Image. Credit: ChatGPT

Digital tourism platforms can serve as engines of progress or exacerbators of inequality, depending on how they are governed, accessed, and integrated. A new study published in Sustainability, titled "The Role of Digital Tourism Platforms in Advancing Sustainable Development Goals in the Industry 4.0 Era," maps how artificial intelligence (AI), blockchain, virtual reality (VR), and the Internet of Things (IoT) are embedded in tourism platforms to both promote and hinder progress toward global sustainability targets.

The research offers a detailed framework linking digital tourism platforms to 15 specific propositions addressing economic inclusion, ethical governance, ecological impact, and labor transformation within the tourism sector. While platforms like Airbnb, Booking.com, and Expedia have radically altered tourism markets by offering direct access to lodging, experiences, and transportation, the study highlights that their growing dominance introduces both sustainability benefits and socioeconomic risks. As digital infrastructure expands, the question is no longer whether tourism will digitalize, but how equitably and sustainably that transformation will unfold.

How are digital tourism platforms shaping market power, innovation and labor dynamics?

The study outlines a dual reality: while digital tourism platforms offer unprecedented efficiency through AI-powered personalization, dynamic pricing, and real-time itinerary management. These capabilities align with Sustainable Development Goals (SDGs) such as SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). On the other hand, these same tools concentrate power in the hands of a few multinational players, leaving small and medium-sized enterprises (SMEs) dependent on dominant online travel agencies (OTAs).

AI-powered systems enable precision in customer targeting, sustainable itinerary suggestions, and algorithmic pricing models. However, access to these advanced systems is often gated by resource intensity, small operators lack the capital and technical capability to build or purchase similar tools. As a result, digital dependency and economic concentration intensify, especially in developing countries where tourism plays a vital role in local livelihoods. This undermines SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities), particularly when smaller service providers are forced into high-fee partnerships with OTAs that control visibility, rankings, and pricing.

Automation and AI are also transforming labor in tourism and hospitality. Digital check-ins, chatbots, robotic cleaning, and predictive maintenance improve service delivery but displace low-skilled workers in front-facing roles. The study stresses that without structured reskilling programs, these innovations threaten inclusive employment, disproportionately affecting marginalized labor groups and widening the gap between digitally capable firms and those lacking adaptation infrastructure. While automation supports SDG 9 and SDG 12, it jeopardizes SDG 1 and SDG 8 if adopted without a human-centered transition strategy.

The authors propose that AI-driven platforms are not inherently exclusive, but their sustainability benefits hinge on digital equity, ethical implementation, and inclusive governance mechanisms. Without regulatory frameworks to prevent monopolistic behavior and promote accessibility, digital platforms risk entrenching structural inequalities even as they promote ecological gains.

How do immersive technologies and AI drive sustainability and where are the gaps?

A core contribution of the study lies in its nuanced treatment of immersive technologies like VR and AR. These tools enable virtual tourism previews, which can reduce unnecessary travel, alleviate overtourism, and improve destination decision-making - all key to advancing SDG 12 and SDG 13. They also enhance customer engagement by offering rich, data-driven simulations of accommodations, attractions, and cultural sites. In workforce training, VR applications support skill development in service scenarios, safety procedures, and customer engagement, reinforcing SDG 8 and SDG 9.

Yet these benefits remain concentrated in larger, well-capitalized firms. The study finds that SMEs, particularly in developing economies, face steep barriers to entry in adopting immersive tools, from content development costs to hardware acquisition and digital literacy gaps. This technological asymmetry creates a digital divide in both customer engagement and workforce preparedness, again reinforcing inequality across tourism markets.

The authors emphasize that Industry 4.0 innovations such as predictive energy management, blockchain-based transparency tools, and AR-driven sustainability recommendations can greatly enhance eco-conscious tourism behaviors. AI-enabled platforms are already guiding travelers toward low-emission transportation, waste-conscious lodging, and sustainable cultural experiences. But this digital transition is not neutral: without affordable access, interoperable standards, and fair policy support, the diffusion of these tools will remain unequal, leaving resource-poor destinations behind.

In addition, the environmental cost of running advanced AI infrastructure, including data centers and machine learning models, is often excluded from tourism sustainability metrics. As more platforms integrate immersive and AI-driven functionalities, energy consumption will rise unless mitigated by green computing practices and carbon offset protocols. Thus, the digital footprint of sustainability tools themselves must be weighed carefully to avoid paradoxical impacts on SDG 13.

What governance models are needed to protect consumers and ensure sustainable platform growth?

The governance dimension of the study underscores the growing urgency of regulating platform-based tourism ecosystems. As platforms harvest and analyze vast amounts of personal data to tailor experiences and optimize revenue, the risk of data misuse, algorithmic discrimination, and exploitative pricing practices increases. The study links these risks to SDG 16 (Peace, Justice, and Strong Institutions), arguing for a robust regulatory infrastructure that includes data protection standards, ethical AI oversight, and harmonized global digital governance.

A notable finding is the dual-edged role of blockchain technologies. On one hand, decentralized smart contracts and tamper-proof transaction records enhance consumer trust, prevent booking fraud, and facilitate transparent loyalty programs. On the other, the lack of regulatory clarity and interoperability across jurisdictions hampers their mainstream deployment. To harness blockchain's potential for secure, inclusive tourism, the study calls for policy convergence and cross-border digital cooperation.

The researchers also critique greenwashing practices exacerbated by weak verification systems. Sustainability filters and eco-certifications, while popular, are often self-reported and unregulated. The study proposes blockchain-based sustainability tracking and third-party audits as solutions to restore consumer trust and align with SDG 12 and SDG 16.

In financial terms, the researchers recommend targeted subsidies, tax incentives, and public-private investment programs to democratize access to AI, VR, and IoT tools across all tourism stakeholders. Only through structural investment in digital infrastructure and governance can smaller providers, especially in the Global South, benefit from the same opportunities as global platform giants.

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