Importance of circularity in tourism

The Travel & Tourism sector stands at a crossroads, faced with the challenge of balancing its immense economic contribution with its environmental impact. As one of the largest global industries, its growth has often come at a cost: resource depletion, waste accumulation, and pressure on ecosystems. In 2019, the sector contributed 10.3% of global GDP, underscoring its economic importance and its environmental footprint.

A circular economy addresses these issues by rethinking how materials and resources are utilised. Instead of discarding products at the end of their lifecycle, circular systems repurpose them, thus reducing waste and fostering economic resilience. By doing so, the industry can enhance sustainable tourism practices, aligning itself with global efforts to meet the Paris Agreement targets.

Pillars of circularity

Circular economy principles emphasise waste minimisation at the design stage. For example, hospitality giants such as Marriott and Iberostar have eliminated single-use plastics and introduced reusable or biodegradable alternatives. These efforts align with the Global Tourism Plastics Initiative, which seeks to eradicate plastic waste from tourism supply chains. Such measures demonstrate how designing out waste can be both environmentally and economically advantageous.

Efforts to repurpose waste into valuable products are also gaining traction. Hotels like QO Amsterdam have incorporated recycled materials into their infrastructure, showcasing innovative approaches to sustainable construction. Similarly, Alaska Airlines has encouraged passengers to bring reusable water bottles, reducing reliance on single-use plastics. These practices highlight how resource circularity can minimise tourism's environmental impact.

Moreover, collaboration is key. Platforms like Airbnb exemplify the sharing economy, enabling resource optimisation through collaborative consumption. By utilising existing assets rather than creating new ones, these models reduce resource strain and foster community engagement—key tenets of the circular economy.

Economic and environmental impacts

Transitioning to a circular model is more than just an environmental imperative. It is also an economic opportunity. Research indicates that adopting circular business practices could unlock USD 4.5 trillion in lost economic growth by 2030. For the travel economy, this transition offers a dual benefit: enhancing sustainability while driving growth.

• Job creation: Circular tourism fosters job creation in areas like waste management, eco-friendly construction, and renewable energy. Regions embracing circular principles, such as the Venlo area in the Netherlands, have successfully integrated tourism with local industries to create attractive, sustainable environments.
• Resilience against climate change: By adopting circular principles, the travel economy can mitigate risks associated with climate-driven disruptions. For instance, reducing reliance on non-renewable resources makes destinations more resilient to supply chain volatility, ensuring sustainable economic performance.
• Regenerating natural systems: Efforts such as beach clean-ups and sustainable agricultural practices in tourist destinations exemplify how the industry can actively support environmental regeneration.

While the benefits of circularity are clear, implementation remains complex. Barriers include a lack of infrastructure as recycling and waste management facilities are often inadequate in high-tourism areas. Moreover, encouraging travellers to adopt circular practices requires education and incentives. Investments in sustainable infrastructure can also deter small businesses as they are costly to begin with.

Despite these challenges, opportunities abound. Technologies such as Quick Response (QR) codes can enhance traceability in supply chains, promoting transparency and accountability. Additionally, collaboration across sectors—between governments, businesses, and consumers—can accelerate the adoption of circular practices.

The path ahead

For the travel economy to thrive in a circular framework, stakeholders must commit to systemic changes. Key actions include:  

• Integrating circularity into strategy: Companies should embed circular principles into their operations, from waste elimination to product lifecycle management.
• Collaborative partnerships: Governments and private entities must work together to provide infrastructure and incentives for circular practices.
• Educating consumers: Tourists play a crucial role as co-creators of sustainable travel experiences. Raising awareness about circular practices can drive behavioural changes.

The transition to a circular economy offers the Travel & Tourism sector an unparalleled opportunity to lead in sustainability. As sustainable tourism practices gain momentum, embracing circularity is a necessity for the future of travel. Adopting a circular mindset will enable the travel economy to create shared value for businesses, communities, and the planet, ensuring a legacy of responsible tourism for generations to come.