Circular Economy in Sri Lankan Hospitality Sector: Advancing Sustainable Tourism through Waste Reduction and Resource Optimization

Abstract

Tourism is a key driver of Sri Lanka’s economy, generating employment, foreign exchange, and regional development. However, the hospitality sector faces escalating environmental challenges, including excessive food and plastic waste, high energy and water consumption, and rising carbon emissions. These pressures, if unaddressed, threaten ecological integrity and the long-term competitiveness of the industry. This study examines the application of circular economy (CE) principles within Sri Lankan hospitality to minimise waste, optimise resource use, and promote sustainable tourism development. The research objectives were to: (1) quantify waste generation and resource consumption in hotels, (2) assess tourist awareness and behaviours regarding sustainability, (3) identify barriers and enablers for CE adoption, and (4) propose a CE framework tailored to Sri Lanka’s hospitality sector. A mixed-methods approach was employed, including surveys of 100 tourists, semi-structured interviews with 20 hotel managers across Colombo, Galle, Kandy, Negombo, and Sigiriya, and on-site observations. Quantitative data were analysed using descriptive statistics, t-tests, correlations, and regression, while qualitative data were thematically coded. Findings indicate that food waste comprised 55% of total hotel waste, with international tourists generating higher per capita waste than domestic visitors. Average energy and water consumption per guest-night were 34 kWh and 270 litres, though eco-certified hotels consistently showed lower usage. Tourist awareness of CE practices was low (38%), but 62% expressed willingness to pay a premium for eco-certified accommodations. Managerial insights identified barriers, including high initial investment, insufficient infrastructure, and limited staff knowledge. Nevertheless, CE strategies emphasising reduction, reuse, recycling, and recovery supported by policy interventions, industry training programs, and active tourist participation can significantly improve environmental and economic performance. Projections suggest potential reductions of 30-50% in waste and 20-40% in energy and water use. The study highlights the importance of integrating policy measures, such as incentives for eco-certification, regulatory guidelines for sustainable operations, and resource-efficient infrastructure standards, to enable a circular hospitality model. Adopting CE practices positions Sri Lanka to strengthen sustainable tourism competitiveness, conserve natural resources, and enhance its international reputation as a responsible travel destination.