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Online travel agency Agoda on Monday announced the launch of its Sustainable Tourism Impact Fund at the ASEAN Tourism Forum 2025 in Malaysia.
Developed in collaboration with WWF-Singapore and UnTours Foundation, the initiative aims to provide financial support to small businesses in Southeast Asia to promote sustainable practices.
The fund is part of Agoda’s broader Eco Deals program, which makes donations to WWF conservation projects across Asia. The fourth edition of the program was launched at ATF 2025 on Monday.
This year, the program has expanded to include 10 markets, adding Japan and Korea to its roster. Over 7,000 hotels participated in 2024, a number expected to grow as the program evolves.
Protecting Southeast Asia’s forests and marine biodiversity could generate benefits worth over $2.2 trillion annually while helping mitigate climate change, according to a 2022 study by the Academy of Sciences Malaysia released ahead of COP15.
Since its inception in 2022, Eco Deals has raised $1.4 million. Supported initiatives have included efforts to conserve tiger populations in Malaysia, protect whale sharks in the Philippines, and restore wetlands in Indonesia.
Agoda has set a donation goal of $1.5 million this year.
How Does the Sustainable Tourism Impact Fund Work?
Agoda is designating $100,000 to the tourism fund, with the potential to increase to $150,000 upon reaching the $1.5 million donation target.
The fund offers low-interest loans ranging from $10,000 to $25,000 for eligible businesses. These funds will enable businesses in countries such as Indonesia, Malaysia, the Philippines, Singapore, and Thailand to invest in sustainable solutions.
According to Agoda, as the travel industry faces mounting pressure to embrace sustainable practices the aim is to empower small enterprises to adopt sustainable operations.
“The Sustainable Tourism Impact Fund is designed to empower micro, small, and medium-sized enterprises in the tourism industry to drive innovation and conservation. Our goal is to make sustainable practices accessible and impactful, ensuring tourism thrives without compromising the planet,” Damien Pfirsch, chief commercial officer at Agoda, told Skift.
Businesses can apply online through the fund’s official webpage.
According to Pfirsch, “The fund addresses a gap in resources that often hinders MSMEs from implementing environmentally friendly measures.”
Pfirsch said they’ll use several metrics to measure impact, including:
Social indicators: Number of jobs created, community engagement, and revenue growth.
Environmental indicators: Emissions reduction, water conservation, waste management, and renewable energy adoption
Mentorship and Training for Businesses
In addition to financial support, Agoda also offers training. “In 2022, we became the first global OTA to partner with the Global Sustainability Tourism Council to provide sustainability training to our hotel partners. Last year, with the support of USAID, we expanded this partnership,” Pfirsch said.
It says it has so far trained over 500 hoteliers across 8 countries in Asia in following sustainable practices. This commitment will now extend to businesses participating in the Sustainable Tourism Impact Fund, Pfirsch told Skift.
Explaining the roles of the three organizations, Pfirsch said that while UnTours Foundation will oversee fund management, WWF-Singapore will provide technical expertise to investee businesses in areas such as biodiversity protection and environmental management, while Agoda will offer mentorship from its leadership and technical expertise in areas ranging from marketing to technology. “We will also promote these businesses through the channels available to Agoda, amplifying their visibility and reach.”
Damien Pfirsch, chief commercial officer at Agoda.
What About Greenwashing?
In an era where greenwashing concerns abound, asked to comment on whether such initiatives go beyond marketing efforts, Pfirsch emphasized transparency. “This year, we have further reinforced our commitment by launching a three-year impact report, which details the outcomes of our partnership, providing clear evidence of our progress and accountability.”
Pfirsch also talked about maintaining a regular reporting cycle to receive updates on project progress and strategize for future initiatives. “Our employees across various offices in Asia actively visit and volunteer with WWF, going beyond financial contributions to directly support and witness their conservation efforts on the ground,” he said.
Agoda’s decisions align with the priorities of mindful travelers. A survey conducted by the OTA last year revealed that financial incentives, access to sustainable travel packages, and clearer guidance on eco-friendly practices could motivate travelers to make more sustainable choices.
Agoda CEO Omri Morgenshtern at the Skift India Summit last year in Delhi.
Skift’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift’s editorial team.
