Financing the Transition: ESG instruments and the development of Sustainable Tourism in Emerging Markets

The thesis analyzes the market for ESG financial instruments, with a particular focus on green bonds and green sukuk, and the adoption of sustainable tourism practices within a cluster of developing countries. Subsequently, the nexus between green finance instruments and the sustainable development of the tourism industry is studied, with an emphasis on the role of accredited sustainability certifications within the hospitality industry. Then, a more detailed analysis is carried out at country specific level for India, Indonesia, Malaysia, Bangladesh and Thailand, highlighting the financing and regulatory gap that still hinders a more comprehensive adoption of green finance instruments. Finally, the results of the study are discussed and a comparison between the different countries is made. Findings show uneven progress: while innovative tools like green sukuk and sovereign bonds expand financing options, their connection to tourism sustainability remains limited. Stronger regulation, external verification, and broader adoption of certifications emerge as key to aligning financial flows with sustainable tourism goals.