The tourism sector has undoubtedly become one of the major drivers of economic development, sustainability and progress globally. This is because its growth rate, connections with other economic sectors and dependence on a relatively pristine natural environment place it in an inimitable position from the point of view of economic sustainability and development. At the same time, tourism has been identified as one of the key sectors that can play a leading role in the global transition towards an inclusive green economy characterized by low carbon emissions. Strategic changes in tourism practices have the potential to produce major benefits that can stimulate change towards better sustainability not only in the tourism industry but also in other sectors. A key change is the adoption of green innovation. The World Tourism Organization believes that “green innovation in tourism can generate important economic, social and environmental benefits” (UNWTO, 2012, p. 1). This paper discusses how the adoption of green innovation in the tourism sector can lead to economic sustainability. This is essentially an extension of the UNWTO quote. Green innovation for economic sustainability In recent years the world has had to endure the effects of climate change. This has been attributed to the release of greenhouse gases such as carbon dioxide into the atmosphere. Many observers agree that the burning of fossil fuels such as coal has been the main source of these gases. However, the release of these gases can be reduced considerably if renewable energy sources are adopted to reduce the dependence on coal for energy production. Energy generated from solar, wind and tidal energy is extremely green. Additionally, they found…half of the document…Sloan Management Review, 50 (4), 87–89. Ottman, J. A. (1998). Green Marketing: Opportunities for Innovation (2nd edition) Lincolnwood: NTC Business Books.Pembroke, K. (1996). The sustainable tourist: a comparative investigation of environmental priorities, awareness, attitudes and opinions, interests and preferences and behavior of British Airways leisure customers. London: British Airways Environmental Branch.Travel Industry Association (2003). Geotourism: the new trend in travel. Washington: Travel Industry Association.UNWTO (2012). Green innovation in tourism can generate important economic, social and environmental benefits. Retrieved October 4, 2012, from http://media.unwto.org/en/press-release/2012-06-20/green-innovation-tourism-can-trigger-major-economic-social-and-environmentaWatkins, E. ( 1994). Do guests want eco-friendly hotels? Accommodation Hospitality, 50(4): 70-2.