Community-based tourism (CBT) is a responsible and innovative approach in which travelers directly interact with local communities. Forecasts indicate that the global market for this industry will grow from $575.9 billion in 2022 to $2.13 trillion by 2032.
Recent research shows that the tendency of people in Europe and other parts of the world is increasingly shifting towards sustainable tourism.

A Unique Cultural Experience
A successful form of tourism, in which tourists and local population interact with each other, is “community-based tourism”. This mainly takes place in small villages in rural areas, where tourists stay for a day or several days and experience the life of the local residents. Accommodations for tourists are built in the local style, resembling the houses or huts of local residents as much as possible. Tourists engage in local activities such as preparing food, hiking or fishing. And if there are special occasions, such as a wedding, tourists are also allowed to attend. Because tourists are very close to the local life of the population in this way, there is respect and awe for this way of life.
Approximately 60% of Millennials (1981 -1996) prioritize an authentic cultural experience as the most essential aspect of their travel. The rise of heritage tourism for this age group is further fueled by a desire to reconnect with cultural roots.

How community-based tourism supports local economies?
By keeping tourism revenues within the community, local people have a stake in the tourism process. This leads to economic empowerment and improved living standards.
Tourists pay for their trip directly to the local population, who can use this money for social projects, such as a water pump, a hospital or a school. For example, tourism can contribute to poverty reduction.
“ CBT provides a solution by creating jobs and income opportunities within local communities. Through homestays, tours, and craft workshops, residents can earn a living while showcasing their culture. This not only reduces poverty but also builds economic resilience and lessens dependence on unstable industries” says Anar Orozobaeva, Civil Society and Rural sustainable development expert.
What CBT aims for?
CBT aims to encourage locals to participate, develop themselves, and preserve their local cultures and resources according to the following 10 principles:
- The locals are the owner of their own resources
- Participation of the locals in planning and managing their own resources
- Take pride in their accomplishments
- Aim for a better quality of life
- Promote environmental sustainability
- Preserve local identities and cultures
- Create learning experiences in multicultural environment
- Understand and respect different cultures and human dignity
- Fair trade for the locals
- Fair income distribution to the locals (DASTA, 2020)
Benefits and challenges of CBT for communities
Community-based tourism is not without its challenges, although it offers various benefits to communities. here is some Benefits and Challenges according to Acorn Tourism Consulting
Benefits:
- Fosters pride and helps to preserve local culture and traditions for future generations
- Economic benefits are paid directly to the community
- Diversifies economic activities and creates economic stability
- Generates local employment
- Develops skills of local people through training
- Empowers local communities and helps to develop independence and resilience
- Encourages the participation of women and young people
- Encourages communities to form joint ventures with other organisations, networks and/or communities
- Adds value to tourism businesses through the development of authentic, unique experiences
- Enables visitors to experience the diversity and customs of local cultures
- Helps create strong connections and interactions between visitors and the community
- Stimulates increased awareness of other cultures and traditions
- Diversifies tourism to other, rural or less-visited areas, helping to make tourism more sustainable in the longer term
Chalenges:
- Establishing a suitable legal entity and governance structure built on community agreement
- Rivalries within the community because of traditional hierarchies and leadership issues or disagreement about who provides experiences
- Resentment if some community members feel they are not benefiting as much financially as others
- Lack of local skills and expertise can lead to poor development of the product, so the CBT experience does not meet visitors’ expectations
- Quality of services such as accommodation or food does not meet international tourism standards
- Language barriers can make an experience less rewarding for visitors
- Neglect of other daily tasks in favour of providing CBT can lead to breakdown of a community’s normal routines and social ties
- If CBT is not managed well, a situation of ‘overtourism’ (too many tourists) or ‘voyeurism’ (visitor misbehaviour) could arise, causing the CBT programme to fail

Which European countries offer the most opportunities?
The European countries that offer the most opportunities for CBT in developing destinations are Germany, the UK, France, the Netherlands and Spain. From 2019, nationals from these countries took the most outbound trips, and the chart below shows that, as tourism recovers, they will remain the major source markets.
In addition, Sweden offers good opportunities as an emerging source market of travellers keen to try new experiences that are immersive. Swedish travellers are willing to travel and like new, diverse destinations that offer good value for money.