TRƯỜNG ĐẠI HỌC KHOA HỌC XÃ HỘI VÀ NHÂN VĂN KHOA DU LỊCH HỌC IMPLICATION OF CIRCULAR ECONOMY IN THE TOURISM INDUSTRY Họ và tên Nguyễn Ngọc Thiện Lớp K65 Quản trị Khách sạn Mã sinh viên 20031551 Giáo vi.
INTRODUCTION
Reason for writing
Tourists often display irresponsibility, leaving large, damaging footprints that reflect ignorance and disregard for the environment Tourism has been criticized as an ugly, corrosive industry, described by DeLillo as an "army of fools" indulging in mindless activities that harm natural sites Growing up, I didn't realize the importance of environmental preservation; my cherished memories of Cửa Lò's beautiful beaches have been marred by recent pollution, with trash scattered along the shore and the sea turned dirty and unrecognizable The irresponsible disposal of waste by vendors and restaurants exacerbates the problem, with garbage washed into the sea during tides Witnessing the degradation of my beloved beach motivated me to explore how a circular economy can transform tourism into a more sustainable and efficient industry, emphasizing the role of individuals in protecting and preserving natural resources for future generations.
Humanity is living beyond Earth's sustainable resource capacity, with extensive use of finite resources and increasing greenhouse gas emissions driving global warming (PACE 2021, 12) If current linear consumption patterns persist, by 2050, we will require three planets to support our lifestyle (United Nations 2021) Despite this urgency, countries worldwide continue to sign agreements aimed at addressing environmental challenges.
Despite numerous climate agreements, global greenhouse gas emissions continue to rise, causing the Earth’s temperature to increase at an alarming rate (Council on Foreign Relations, 2021) It’s evident that national climate commitments have never been enough to keep global warming below the 2-degree Celsius target, and with each year of slow progress, the challenge becomes more critical In 2018, global carbon emissions reached record highs, and although the COVID-19 pandemic-induced lockdowns temporarily reduced emissions, we remain far from achieving meaningful progress (PACE, 2020) Our current efforts to combat the climate crisis are insufficient to meet the urgent need for change.
"More than 91 percent of what we take from the earth is wasted" (Circle Economy
It has become evident that the traditional linear economic model is unsustainable in the long term Transitioning to a circular economy is essential for the future of our planet To maintain a livable and thriving world, we must double global circularity, increasing it from 8.6% to a higher, more sustainable level Embracing circular practices will help reduce waste, conserve resources, and promote environmental sustainability for future generations.
According to the Circularity Gap Report 2021, only 17 percent of materials are recycled globally, highlighting the urgent need for improved resource efficiency This underscores the importance of adopting sustainable practices to preserve our planet I am committed to educating myself and others on how changing our mindset and behaviors can significantly enhance planetary health By promoting circular economy principles, we can work towards reducing waste, conserving natural resources, and fostering a more sustainable future for all.
Objectives and mission of the study
This study aims to explore the potential of the tourism sector to adopt a circular economy, emphasizing sustainable practices to rebuild and restore damaged environments It investigates how circular economy principles can be integrated into tourism to promote resource efficiency and environmental resilience The research seeks to answer key questions about transforming tourism into a more sustainable and circular industry, highlighting strategies for reducing waste and supporting eco-friendly growth Ultimately, the study emphasizes the importance of leveraging the circular economy to create a more sustainable future for the tourism industry and the environment.
Q2: How can the tourism sector transition towards a circular economy?
Q3: What are the main factors driving circularity in the tourism sector?
Q4: What are the main obstacles in achieving circularity in the tourism sector?
Q5: How can we implement circular tourism into Vietnam?
Subject and range of the study
Subject: Circular economy, sustainable tourism, circular tourism, Vietnam tourism
Location Range: The University of Social Science and Humanities, internet, books
Time range: from November to December of 2022
Research methods
Data collection: Most of the information in this study was based on documents and books found on the internet that have been thoroughly select and research on
Self-based: Lacks of research have been conducted in Vietnam, so a lot of information was by myself translating added by personal opinion
SWOT: A SWOT analysis about Vietnam tourism was created to help evaluate and develop this study.
The study contribution
Provide an extend knowledge on this newly created subject, help educate myself and other Give an inside view on how CE can be implemented in Vietnam tourism.
Structure of the study
This study has been illustrated into 5 chapters
- Chapter 1: Introduction – Presents the motivation, methodology, background of the research and its purpose.
LITERATURE REVIEW
Tourism and sustainability
Tourism involves traveling to a destination away from your hometown for leisure or business purposes According to the World Tourism Organization (WTO), tourism is defined as staying outside your usual environment for up to one year for leisure or 24 hours or less for business activities This travel often enables individuals to explore new locations, experience different cultures, and enjoy recreational activities beyond their regular surroundings.
- According to UNWTO (2021), sustainable tourism development is defined as
Sustainable tourism involves considering its current and future economic, social, and environmental impacts to benefit visitors, the tourism industry, local communities, and the environment Achieving sustainable tourism requires balancing environmental, economic, and sociocultural dimensions to ensure long-term positive outcomes for all stakeholders.
- According to UNEP and WTO (2005), a sustainable tourism should have the following objectives:
Ensuring the long-term economic viability and competitiveness of tourism destinations and enterprises is essential This involves understanding market dynamics, consistently delivering visitor satisfaction, maintaining favorable trading conditions, projecting an attractive destination image, and providing comprehensive business support to sustain growth and success.
Maximizing local prosperity through tourism involves supporting local businesses and promoting local employment and supplies Encouraging clusters and networking among businesses can enhance the economic impact of tourism Increasing visitor spending by lengthening stays and promoting local products further boosts the host destination’s economic growth and sustainability.
+ Employment quality - increasing the number of local jobs created by tourism and improving the quality (wage, service, availability without discrimination), ensuring and enforcing labor regulations, encouraging training programs, etc
+ Social equity - ensuring widespread and fair distribution of economic and social benefits from tourism throughout the recipient community by developing opportunities for disadvantaged people, supporting social programs, etc
+ Visitor fulfillment - providing safe, satisfactory and fulfilling experience to all visitors without discrimination, monitoring and addressing their satisfaction and quality of experience
Local control is essential for sustainable tourism development, as it involves engaging and empowering local communities in planning and decision-making processes Strengthening the capabilities of local governing bodies ensures that tourism management aligns with community needs and values Raising public awareness promotes responsible tourism practices, while respecting the beliefs and traditions of indigenous tribes fosters cultural preservation and inclusivity Together, these efforts create a more balanced and community-centered approach to tourism that benefits both visitors and local residents.
+ Community wellbeing - maintaining and strengthening the quality of life in communities by reducing congestion, managing demand, careful planning of tourism infrastructures,
5 promoting mutual use of facilities and services by residents and tourists, influencing the behavior of tourists towards local communities, etc
+ Cultural richness - respecting and enhancing the historic heritage, authentic culture, traditions and distinctiveness of host communities by developing interpretative programs, capacity building, informing tourists about local culture, etc
+ Physical integrity - maintaining and enhancing the quality of landscapes, avoiding or minimizing the physical and visual degradation of the environment by visitor management, development of codes and conduct, etc
+ Biological diversity - supporting the conservation of natural areas, habitats and wildlife and minimizing damage, promoting ecotourism, raising visitor awareness, etc
Resource efficiency in tourism focuses on minimizing the use of scarce and non-renewable resources during the development and operation of facilities and services It emphasizes reducing water consumption and promoting sustainable practices such as reduce, reuse, and recycle Implementing these strategies helps preserve the environment while enhancing the long-term sustainability of the tourism industry.
Promoting environmental purity is essential for sustainable tourism, focusing on minimizing pollution of air, water, and land caused by tourism activities This includes encouraging the use of sustainable transport options, reducing the use of harmful chemicals, and influencing the development of eco-friendly tourism facilities Effective management of energy use and emissions is crucial, ensuring that tourism enterprises implement practices that lower carbon footprints and promote overall environmental conservation By adopting these measures, tourism can contribute to a healthier planet while supporting economic growth.
Before the COVID-19 pandemic, tourism was responsible for approximately 8% of global greenhouse gas emissions, with travel and tourism accounting for nearly one-tenth of total emissions The industry's growth was driven by falling air travel prices and an expanding middle class, leading to a 3-5% annual increase in tourists (Carbon Brief, 2018) Notably, the carbon footprint per dollar spent on tourism is around 1kg, which is higher compared to manufacturing (0.8kg) and construction (0.7kg) industries (Sorin & Stefan).
Figure 1 Share of Co2 emission from tourism (UNWTO & UNEP 2008, 34)
- UNWTO and UNEP published their report related to climate change and tourism in
Since 2008, significant research has been conducted on tourism industry carbon emissions, which can be categorized into two main types: direct energy consumption and emissions from the consumption of products within tourism-related industries (UNWTO) Understanding these two sources is essential for developing effective strategies to reduce the industry's overall carbon footprint and promote sustainable tourism practices.
- Food waste is an enormous problem Each year, a third of all food produced is lost or wasted This equals 1.3 billion tons
Food waste accounts for approximately 8% of global carbon emissions, highlighting the environmental impact of resource-intensive food production, transportation, and processing When food is wasted, all the water, energy, and resources used in its creation are also squandered, contributing unnecessary emissions and environmental degradation Additionally, disposing of unused food strains landfills and harms ecosystems, emphasizing the importance of reducing food waste to mitigate climate change and protect our environment.
The rising influx of tourists significantly increases solid waste generation, placing considerable pressure on local waste management systems Effective waste management is projected to become one of the major challenges in achieving sustainable development worldwide Hotels and restaurants play a crucial role in this issue, as their operations contribute substantially to waste production, highlighting the need for sustainable waste practices in the hospitality industry.
7 provide a significant amount of biomass waste, and as a result, more than 70 % of all waste is biomass (Nedyalkova 2019, 6.)
Research on food waste has been ongoing for over 40 years, yet academic focus on tourism-related food waste remains limited While media frequently discuss food waste issues to raise consumer awareness, most scholarly work predominantly addresses food waste within environmental management and sustainability, with little emphasis on the hospitality sector This gap suggests that the academic community may be unaware of the scale and severe negative impacts of food waste in hospitality, highlighting the need for further research in this area (FAO, 2019; Filmonau & Coteau, 2018).
All-inclusive hotels prioritize food service as a core aspect of their offerings, providing guests with all-you-can-eat buffets featuring a wide variety of menu options and comprehensive room services The quality and abundance of breakfast buffets significantly influence guests' perception of the hotel, highlighting the importance of food presentation and quantity (IDB 2020, 22) Despite their prominence, there is a substantial gap in understanding and accurately measuring food waste within the tourism industry, underscoring the need for improved waste management strategies.
Overproduction in the hotel industry is a common issue, driven by unpredictable demand and the desire to create a sense of abundance for customers A study of 450 hotel companies across 25 countries revealed that 8-20% of total food costs stem from overproduction, cooking errors, damaged products, and plate leftovers Food waste can sometimes equal or exceed a business's net profits, highlighting the importance for hospitality providers to implement strategies that minimize waste and improve operational efficiency.
Despite widespread acknowledgment of food waste issues in the hospitality industry, there is a significant lack of data on the true scale of the problem Food waste is particularly prevalent in developed countries, yet the European Union currently lacks standardized measurement protocols to accurately assess it (Filmonau & Coteau, 2018, p 236)
- Hotels and resorts are prone to direct water use Water is used for showers, toilets, the kitchens, laundry, swimming pools, cooling, and irrigation The average water
Circular economy (CE)
The concept of the Circular Economy has gained significant attention in recent years, yet it is not a new idea Its origins have been widely debated, with no single date or author credited, as numerous thinkers have contributed to its development Multiple schools of thought have analyzed, refined, and expanded on the principles of the Circular Economy, shaping its current understanding and application.
Circular economy represents a transformative industrial model that emphasizes sustainable resource management and waste reduction Originating from environmental economics, it seeks to integrate scientific principles into sustainable development practices By adopting this approach, industries can enhance efficiency, minimize environmental impact, and promote long-term economic resilience through innovative reuse and recycling strategies.
The origin of the CE (Circular Economy) term dates back to the 1920s, emerging from various perspectives and schools of thought Leontief introduced foundational ideas in his research *The Economy as a Circular Flow*, while Von Bertalanffy made a significant breakthrough in 1937 with his development of *The General System Theory* Additionally, Lyle advanced the concept by promoting recovery and systems regeneration of materials and energy through regenerative design, laying the groundwork for modern Circular Economy principles.
The European Union Parliament defines the Circular Economy (CE) as a sustainable production and consumption model that emphasizes reusing, repairing, refurbishing, and recycling existing materials and products to keep resources within the economy This approach transforms waste into a valuable resource, thereby significantly reducing overall waste generation Unlike the traditional linear economic model, which follows a 'take-make-consume-throw away' pattern, the circular model aims to promote resource efficiency and minimize environmental impact.
An analysis of 114 definitions of Circular Economy (CE) by Julian Kirchherr and colleagues reveals that the concept is primarily understood as encompassing reduce, reuse, and recycling strategies (Kirchherr, Reike, and Hekkert, 2017) They define the Circular Economy as a framework focused on minimizing waste through resource-efficient practices that promote product longevity, material recovery, and sustainable consumption.
A Circular Economy (CE) is an economic system that shifts from traditional 'end-of-life' models to strategies focused on reducing, reusing, recycling, and recovering materials throughout production, distribution, and consumption It operates across multiple levels—from micro (products, companies, consumers) to meso (eco-industrial parks) and macro (cities, regions, nations)—with the goal of achieving sustainable development This approach aims to enhance environmental quality, promote economic prosperity, and ensure social equity, benefiting both current and future generations (Kirchherr, Reike, and Hekkert, 2017, pp 224-225).
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- According to Ellen MacArthur Foundation (2021) the CE is based on three core principles and are all driven by design:
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The circular economy (CE) concept has evolved beyond the traditional 3Rs model—reduce, reuse, and recycle—to encompass 12 key principles These include reducing resource consumption, reusing materials, recycling and reclaiming, repairing, refurbishing and reconditioning, repurposing, redesigning products, remanufacturing, investing in research and technological innovation, reskilling the workforce, managing reverse supply chains, and promoting a re-industrial green revolution (Charter, 2019, p 66) This expanded framework emphasizes a comprehensive approach to sustainable resource management and technological advancement.
2.2.3 Flow of material in CE
Figure 3 The CE diagram (UNIDO 2018, 3)
Figure 3 presents a circular economic diagram illustrating the principles of material circularity in the Circular Economy (CE) It emphasizes that raw materials for new products are sourced from recycled and remanufactured old materials, promoting durability, reusability, and recyclability The model maximizes resource utilization by ensuring materials are remanufactured, recycled, and reintegrated as new raw materials, fostering a closed-loop system This comprehensive process is achieved through cleaner production practices, as highlighted by UNIDO (2018), supporting sustainable resource management and environmental preservation.
Figure 4 The butterfly diagram (Ellen MacArthur Foundation 2013, 24)
The widely recognized butterfly diagram, as shown in Figure 4, provides a comprehensive overview of the Circular Economy's (CE) workflow, distinguishing between technical and biological cycles Biological cycles involve returning food or natural materials like cotton and wood back into the system through processes such as composting and anaerobic digestion, promoting sustainable material flow Conversely, technical cycles focus on reusing, repairing, remanufacturing, and recycling products and components to minimize waste and maximize resource efficiency This holistic visualization enhances our understanding of how circular practices integrate into real-world systems.
2.4 Similarities and difference between sustainability and CE
Sustainability and Circular Economy (CE) both emphasize the importance of intra- and intergenerational commitments driven by environmental degradation They highlight the need for private and public deliberation on multiple pathways for sustainable development With a shared global perspective, both concepts address planetary-scale issues and promote innovative solutions to ensure long-term environmental health and economic resilience.
This article explores 12 interdisciplinary approaches that prioritize innovation and design as key drivers It emphasizes the importance of stakeholder cooperation and diversification to maximize value creation, applying these principles to both innovation and design strategies (Geissdoerfer & Savaget; Bocken & Hultink, 2016, pp 762-763).
CE implementation
Adopting Circular Economy (CE) is essential for reaching climate targets and fostering zero-carbon prosperity Transitioning to a CE shifts us from a traditional linear economic model focused on resource extraction and waste, towards sustainable practices that minimize emissions and promote resource efficiency Moving beyond fossil-based, unsustainable economic patterns is crucial for building a resilient, environmentally responsible future, as emphasized by the Ellen MacArthur Foundation (2019).
A growing number of scientists, environmentalists, politicians, and experts from various fields emphasize the urgent need to transition to environmentally friendly economic models They highlight that current waste generation systems contribute significantly to environmental degradation, necessitating a global shift to sustainable practices Addressing these issues is crucial not only for ecological preservation but also for resolving broader economic and societal challenges worldwide.
Circular business models are characterized by their focus on cycling, extending, intensifying, and dematerializing material and energy loops to promote sustainability According to Geissdoerfer, Pieroni, Pigosso, and Soufani (2019), these models aim to reduce resource inputs and minimize waste and emission leakage within organizational systems, reflecting diverse interpretations of what constitutes a circular approach.
The Circular Economy (CE) demands a fundamental rethinking of business and investment strategies, shifting from traditional revenue-focused models to approaches emphasizing added value and reduced consumption (Charter, 2019) Transitioning from a linear to a circular economic system is challenging due to companies’ deep-rooted habits, necessitating the development of business models grounded in circular thinking (Accenture, 2014) Although this transformation presents difficulties, businesses that successfully adapt to the CE model are poised to outperform competitors and generate greater market value, contributing positively to the overall economy (SITRA, 2019).
Accenture (2014, 12) analyzed more than 120 companies' case studies that applied innovative ways to generate productivity improvements and summarised five underlying business models in figure 4
Figure 5 Circular economy business models (Source:Accenture (2014, 2019)) 2.3.2 Climate crisis and material shortage
- A CE gives us an opportunity for a systematic response by reducing the emission and increasing the resilience to the effect of climate crisis (Ellen Macarthur Foundation
In 2019, sustainable practices played a crucial role in reversing biodiversity loss by minimizing land use for resource production, utilizing renewable energy sources, reducing greenhouse gas emissions, cutting down pollution, and promoting waste redesign for reuse (Ellen MacArthur Foundation, 2021).
A transition to renewable energy sources can cut greenhouse gas emissions by 55% However, the remaining 45% of emissions are more challenging to reduce because they originate from land and building management, manufacturing goods, food packaging, and daily consumables To meet climate targets, a fundamental transformation in how products are produced is essential Without this change, achieving desired climate goals will remain out of reach.
In the fast-paced consumer goods industry, approximately 80% of the $3.2 trillion worth of materials produced annually are not recovered, highlighting a significant opportunity for resource efficiency The Circular Economy (CE) perspective considers resources as valuable assets to be reused rather than as single-use materials that flow through the economic cycle once Embracing a circular economy model could generate economic benefits of up to $5 trillion, emphasizing its potential to transform resource management and drive sustainable growth.
The Circular Economy (CE) is projected to generate $15 in economic benefits per dollar invested by 2030, as estimated by the World Economic Forum (WEF 2020) It offers significant economic opportunities through material savings, supply risk mitigation, innovation, job creation, improved productivity, and enhanced long-term resilience (WEF 2014) The European Union highlighted that closed-loop activities such as repair, reuse, and recycling contributed €147 billion in added value in 2016 and supported the creation of four million jobs within the CE sector (CIRTOINNO 2019).
2.3.4 Drivers and barriers of CE
- The enablers of CE can be categorized into the following types:
Cultural enablers—including strong leadership, sustainability and environmental drivers, demand stimulation, value chain engagement, long-term relationships, partnerships, and systems thinking—play a vital role in fostering sustainable practices Complementing these, regulatory enablers such as policy support, public procurement initiatives, regulatory reforms, fiscal incentives, and producer responsibility mechanisms are essential for creating a conducive environment for sustainable growth Together, these enablers drive innovation, ensure systemic adoption of sustainable practices, and support the development of resilient, eco-friendly value chains.
+ Financial enablers such as whole life costing
Sectoral enablers play a crucial role in advancing circular economy (CE) practices within the built environment, including clearer vision, robust evidence bases, and effective collaboration, design tools, and strategies Key components also encompass research and development (R&D), fostering innovation, establishing standards and assurance schemes, and developing reverse logistics infrastructure, all of which are essential for facilitating sustainable and efficient resource management in the industry.
- Besides, a survey in UK construction industry by Adams et al (2017) found out that the most important enablers for implementing CE in buildings and construction are: + design tools and guidance
+ measuring the value of material/product
+ financial incentives to use secondary materials
+ assurance schemes for reused/secondary materials
+ development of enabling technologies to recover materials
+ development of higher value secondary materials, viable take-back schemes and clear business case (Adams et al 2017)
- As mentioned in the above section, a CE has many benefits, but at the same time, practical implementation can have numerous barriers
A circular economy relies on collaboration between industries and actors to reduce waste and develop innovative business and production models This approach demands increased communication beyond traditional business practices and often requires specialized expertise, which may currently be lacking in the tourism sector As Mireille Jakobsen, sustainability manager of the BC Hotel Group, emphasizes, effective cooperation is essential to transitioning to a sustainable, circular economy.
Mireille Jakobsen emphasizes that while we are committed to transitioning towards a circular economy and have been making efforts for many years, successful implementation requires collaboration with partners Developing a circular economy model necessitates strong partnerships to effectively support the sustainability journey.
Implementing a circular economy requires collaboration and strong partnerships, as it is challenging for even sustainability-focused companies to succeed alone Regardless of the specific approach to the circular economy, finding the right partners and working together is essential for achieving meaningful and lasting sustainability goals.
- The barriers of CE can be categorized into four types:
+ Cultural barriers such as lack of interest, knowledge/skills and engagement throughout the value chain, lack of collaboration between businesses, lack of collaboration between business functions
+ Regulatory barriers such as lack of consistent regulatory framework, obstructing laws and regulations, lack of incentives
+ Financial barriers such as high upfront investment costs, low virgin material prices, poor business case and unconvincing case studies, limited funding
Sectoral barriers to advancing circular economy initiatives include limited bandwidth and a lack of a clear industry-wide vision, which hinder progress Additionally, complex and confusing incentives, long product lifecycles, and technical challenges related to material recovery pose significant obstacles The absence of standardization, underutilization or underdevelopment of circular economy-focused design and collaboration tools, and inadequate information and metrics further impede effective implementation of sustainable practices (Hart et al., 2019).
CE IMPLEMENTATION IN TOURISM
Tourism and CE
Tourism accommodations significantly impact biodiversity and local communities by consuming large quantities of non-renewable resources (Girard and Nocca, 2017) To address this issue, it is crucial to shift towards sustainable consumption patterns within the industry and adopt Circular Economy (CE) principles Girard and Nocca (2017) define circular tourism as a model that creates a virtuous cycle, producing goods and services without wasting the planet’s limited resources such as raw materials, water, and energy.
Figure 6 Circular tourism (Circular city funding guide 2021)
- Figure 6 above shows a basic model to help tourism by thinking circularity The entire tourism process can be circular from the pre-travel phase through the stay and afterward
The tourism industry plays a vital role in transforming the current linear economic model by leveraging its substantial multiplier effect, which significantly impacts the overall economy Additionally, tourism has the potential to promote circularity within its value chain, fostering sustainable economic practices Further insights into the tourism value chain will be explored in the upcoming sections.
3.1.1 Necessity of CE in tourism
- There have been attempts to transform tourism into more sustainable development at all levels for more than two decades, but most of them have not succeeded (UNECE
2021, 7) Tourism sector is operating on a linear take-make-dispose model, relying on
According to UNIDO (2018), tourism generates large quantities of resources while producing significant greenhouse gases and waste UNWTO (2017) emphasizes that implementing circular economy approaches—such as promoting renewable resources, extending product life cycles, encouraging shared consumption, and developing interconnected value chains—can play a crucial role in enhancing resource management systems These strategies are vital not only for the sustainability of the tourism sector but also for the broader sustainable development of destinations.
Applying Circular Economy (CE) principles enables hospitality and tourism companies to accelerate business growth while fostering sustainable practices for all stakeholders (Rheede, 2012) Implementing CE strategies helps the industry achieve meaningful sustainability goals and enhances profitability across sectors like hotels, food and beverage, and leisure CE models facilitate the close monitoring of material flows—including construction, energy, food, and water—reducing natural resource consumption, minimizing waste, and lowering CO2 emissions, thereby promoting environmental sustainability (Floriodo, Jacob & Payers, 2019).
- As one of the biggest growing economies, tourism has a huge potential to transform itself into a circular business model Application of CE in the tourism sector through the
Implementing Circular Economy (CE) processes in the tourism sector can significantly reduce economic leakages along the tourism value chain, leading to increased sustainability By integrating CE principles, the industry can minimize climate change impacts and waste generation, promoting environmentally responsible practices This approach offers an opportunity to foster innovation and establish sustainable businesses that add green jobs, thereby enhancing local economic development (Kurtagic, 2021, p 17)
Integrating the Circular Economy (CE) in tourism offers significant opportunities for achieving sustainability goals and improving profitability Although the manufacturing industry has been a pioneer in CE due to its high material resource flow, the tourism sector has yet to fully embrace CE initiatives Incorporating CE principles is crucial for the tourism industry to explore sustainable growth pathways and ensure long-term environmental and economic viability.
Sustainability transitions are complex, long-term processes that transform traditional socio-technical systems toward more sustainable consumption and production practices (Falcone, 2019) Recently, the concept of “transformative tourism” has gained popularity among tourism scholars as a vital approach for sustainable development (Ateljevic, 2020) Experts emphasize that creating a sustainable future requires rethinking the values, behaviors, and lifestyles of individuals, businesses, and governments However, despite the ongoing economic debates around sustainability, the tourism industry has yet to fully engage in these crucial discussions, highlighting a significant gap in its participation toward sustainable transformation (Shelodon).
2021, 2.) The tourism sector has been criticized for not addressing the environmental problem sufficiently (Floriodo, & al 2019, 1)
Circular economy principles initially focused on industrial activities but have increasingly expanded into the service sector, including tourism This shift promotes sustainable development through innovative products, responsible consumption of tourism services, and new business models Embracing circular economy strategies in tourism can help reduce environmental impacts and foster sustainable growth within the industry (Vargas-Sanchez, 2018).
To promote sustainability in the tourism industry, the core principles of the Circular Economy (CE) can be adapted from manufacturing to tourism by implementing business models rooted in sustainability This approach encourages eco-friendly practices and resource efficiency within the tourism sector, supporting long-term environmental and economic benefits (Girad & Nocca, 2017, p 69).
The tourism industry is constantly evolving, requiring adaptive and sustainable practices to address its diverse variables Sustainable tourism principles encompass innovative models for water, food, and energy production and consumption, promoting efficiency and resource conservation Implementing the Circular Economy (CE) model helps minimize waste and encourages reuse, reducing environmental impact Conservation of biodiversity and the environment is achieved through the use of biodegradable products and eco-friendly practices Preserving cultural heritage enhances cultural value and authenticity in tourism experiences Additionally, greening the industry ensures that tourism benefits low-income communities, fostering inclusive economic growth These strategies collectively contribute to a more sustainable and resilient tourism sector (Pan, Gao, Kim, Shah, Pei & Chiang, 2018).
A three-axis model for a circular destination was developed and implemented in the Balearic Islands (Florido, Jacob, and Payeras, 2019), focusing on key aspects such as public administration and destination management organizations (DMOs).
Effective transition in the tourism sector requires collaboration among multiple stakeholders, as it cannot be achieved by a single actor The primary goal is to maximize value within the tourism industry, ensuring sustainable growth that benefits both the sector and the resident population Each sector or axis plays a crucial role in this process, contributing to a cohesive strategy for development This collective effort enhances the overall tourism experience while promoting responsible and sustainable practices.
Figure 7 Roles of the three axis
Tourism serves as a dynamic laboratory where government, destination sites, hotels, tourists, and local communities can collaboratively implement circular strategies to promote sustainability (Florido, Jacob, and Payeras, 2019) An International Conference on Green and Accessible Tourism (Wolde, 2016) emphasized the importance of adopting innovative strategies to advance circular tourism, highlighting the potential for fostering environmentally responsible travel practices that benefit all stakeholders.
+ Design for circularity (for example, constructing infrastructures or business processes in such a way to facilitate circular flow of resources)
+ Use sharing platforms (for example, online networking sites or software, rental platforms) + Regulate the CE (for example, sharing platforms)
+ Circular procurement: use and buy products, materials and services that are sustainable and/or cradle-to-cradle, recycled, renewable, recyclable, biodegradable
+ Circular construction including building passport for new hotels and parks
+ Use performance-based contracting (for example, pay-per-wash in laundry services)
•Designing incentives to promote the implementation of CE measures in the tourism sector i.e tax deductions for investment in CE measures/technologies
•Designing laws and regulations to reduce the obstacles to the application of
CE measures in tourism businesses
•Involving the tour operators in the design of a program of awareness and changes in tourist habits
Role of public administration or DMOs
•Designing a branding strategy that enhances the social and environmental benefits of circular practices in the hotel establishment
•Raising awareness, training, involving hotel human resources in the design of a circular strategy for hotel business
•Involving the resident population in the change towards a CE of the tourist destination
•Promoting social awareness about social and environmental benefits
•Designing a system of incentives/penalties to increase awareness and change in the consumption habits of the resident population towards a CE model
+ Maximize digital services, maintenance, repair, refurbishment, and waste reduction, separation and management
+ Circular sourcing (for example, using organic cleaning products)
+ Take into account what happens after use (accountable to bring it back to the supplier or dispose in responsible way)
+ Work together with your suppliers and clients
+ Produce on demand (for example, making food only after getting orders will reduce food waste in comparison to making lot of food at once in anticipation)
+ Renewable energy and energy conservation means boundary condition for circularity (example, solar panels)
+ Mainly aimed at reducing carbon emissions
+ Lower impact of traveling: public transportation, carbon compensation, bicycle tours, alternative routes
+ Lower impacts during stay: buy local, organic, use small groups
+ Aim for quality (for example, using low-quality materials will result in frequent repair and maintenance causing more disturbance, loss of time and money)
+ Increase awareness of tourists i.e to respect the local heritages and to adopt circular practices during their stay
+ Promote eco-friendly tourism i.e reducing the environmental impacts due to tourism activities
- Similarly, there are some strategies suggested by Florido, Jacob, and Payeras (2019), which are as follows:
+ Improving the development of tourism infrastructures and quality of services as a tourist destination
+ Reducing the seasonality of tourist services
+ Diversifying tourism activity (cultural tourism, business tourism, health tourism, ecological tourism) with a circularity approach
Strengthening collaboration within the hotel industry via local organizations and networks is essential for promoting Circular Economy (CE) solutions Establishing a stable institutional and governance framework enhances innovation efforts focused on sustainability and environmental challenges These coordinated efforts drive sustainable growth in the hotel sector while supporting effective environmental management and eco-friendly practices.
Figure 8 Tourism value chain – Source: (Manniche et al 2017)
Figure 8 illustrates a typical tourism supply chain, beginning with pre-travel activities such as booking flights or destination accommodations directly or through travel agencies Travelers then arrive at their destination using various transportation modes like cars, taxis, ferries, airplanes, biking, or walking Accommodation providers, including hotels, apartments, campsites, and Airbnb hosts, offer lodging options, often complemented by dining services, or nearby restaurants and food outlets Once settled, tourists explore the local community, enjoying attractions and regional specialties, completing the tourism experience.
Circular tourism in Vietnam
3.2.1 The current situation in Vietnam
Tourism significantly contributes to Vietnam’s GDP, with the sector heavily supported by domestic travel Boasting over 1.2 million square kilometers of sea surface and 2,770 stunning islands, Vietnam offers some of the most beautiful beaches from north to south, providing a major natural advantage for tourism growth Vietnamese beaches attract around 70% of outbound tourists and 50% of inbound tourists, generating over 70% of the country's total tourism income However, this impressive growth also presents substantial environmental challenges, as noted by the Tourism Development Research Institute of Vietnam.
Vietnam is currently facing severe environmental challenges, including deforestation, soil erosion, and over-exploitation of coastal resources, which threaten ecosystems, biodiversity, and genetic diversity According to international experts, these issues, combined with climate change and rising sea levels, pose significant obstacles to the country's rapid and sustainable development Vietnam is also identified as one of the five countries most affected by climate change, highlighting the urgent need for effective environmental protection and climate resilience strategies.
Viet Nam produced over 1.8 million tons of untreated plastic waste in 2018, accounting for nearly 6% of the world's plastic waste according to the FAO The country ranks fourth globally for plastic waste dumped into the sea, highlighting significant environmental challenges Additionally, Viet Nam's environmental sustainability is undervalued in the World Economic Forum's tourism competitiveness rankings, where it currently holds the 129th position out of 136 countries.
At the 2019 "Tourism without Plastic Waste" conference organized by the Quang Nam Tourism Association, startling figures revealed that Quang Nam generates an average of 660 tons of waste daily, with 92 tons from Hoi An alone, of which plastic waste accounts for 18% to 20% A WWF report highlighted that Phu Quoc, Kien Giang Province, produces about 155 tons of waste daily, but only 91 tons are collected, with just 10.8 tons of plastic waste recovered each day—representing only 33.6% of the total plastic waste generated As green tourism gains popularity, there is a growing need for sustainable waste management and eco-friendly practices among tourists and local communities.
28 concerned with environmentally friendly factors As such, the overload of plastic waste in many areas and tourist destinations will surely cause these destinations to "lose points"
Recently, many reputable tourism businesses are taking proactive steps to reduce plastic waste and promote environmental sustainability They are replacing small plastic water bottles with large refillable bottles, and hotels and meeting rooms now use reusable cups and glass bottles Eco-friendly alternatives like rice, bamboo, and stainless steel straws are replacing single-use plastic straws Additionally, some travel companies organize tours focused on collecting rubbish from rivers and forests These initiatives demonstrate a growing awareness within the tourism industry about the importance of environmental protection and responsible tourism practices.
Relying solely on the efforts of leading enterprises is insufficient to significantly reduce plastic waste from tourism activities A comprehensive and targeted strategy involving the government, businesses, and the public is essential for meaningful progress Some countries require tourism businesses and organizations to develop action plans prioritizing sustainability and environmental protection Vietnam's tourism authorities should adopt international best practices by implementing certification schemes for sustainable tourism, green tourism, and energy-saving standards Such certifications can enhance management efficiency, reduce tourism's environmental impact, bolster the reputation of tourism providers, and attract more environmentally conscious visitors.
3.2.2 Vietnam aims to circular tourism
- Tourism has so far brought great benefits to the economy, but it has also contributed to environmental degradation, especially biodiversity deterioration Thus, the concept of
Sustainable development in tourism emphasizes meeting the present needs without compromising future generations' ability to do the same This approach is embodied in the concept of "Circular tourism," also known as ecological, environmental, nature, green, sustainable, or responsible tourism Incorporating sustainable practices into tourism ensures environmental preservation, promotes responsible travel behaviors, and supports long-term ecological balance By prioritizing eco-friendly and responsible tourism efforts, destinations can achieve economic growth while conserving natural resources for future travelers.
The Vietnamese government has yet to establish concrete plans for implementing circular tourism, as it remains a relatively new concept However, over the years, there have been ongoing efforts to promote eco-friendly tourism, with the government gradually integrating circular economy principles into Vietnam's tourism sector These initiatives aim to create more sustainable and environmentally responsible travel experiences across the country.
According to Mr Tran Huu Thuy Giang, Director of the Department of Tourism, developing circular tourism is an inevitable trend driven by its sustainable benefits, such as long-term cost savings and advantages for businesses and society Recent eco-friendly and green tourism models closely resemble circular tourism, providing valuable opportunities for evaluation and seamless transition toward more sustainable tourism practices.
Mr Dinh Manh Thang, Chairman of the Provincial Tourism Association, emphasizes that circular tourism is not only a sustainable development model but also a emerging trend shaped by the pandemic's impacts In the early stages of tourism adaptation, three key trends are emerging: new destinations and experiences, short-term domestic tourism, and green tourism focused on sustainability Studies indicate that tourists are increasingly interested in sustainable tourism and are willing to pay a premium to support the sustainable development of travel destinations.
During his opening speech at ViEF 2018, Mr Tran Trong Kien emphasized the importance of sustainability by expressing hope that future generations will continue to benefit from Vietnam’s rich natural beauty, diverse culture, and valuable resources, highlighting a core goal of preserving these assets for the benefit of grandchildren (K Tran, 2018).
Vietnam is increasingly emphasizing sustainable tourism, defined by the government as “meeting the needs of the present without harming the ability of the future to meet tourism needs” (GOV, 2005), signaling a shift in the country's perspective on industry development The importance of this focus was highlighted during the session titled “The Need for Tourism Industry Restructuring and Development Toward More Sustainability,” attended by over 1,500 delegates, including government officials, CEOs, media, and international guests This two-day event marked a significant step in promoting awareness of the benefits and necessity of sustainable tourism, with the hosting by the Advisory Council to the Prime Minister underscoring sustainability as a rising priority for Vietnam's government.
To achieve a clear and definitive transition to the circular tourism model, new approaches and innovative strategies are essential According to Asso Prof Dr Nguyen Hong Quan, Director of the Institute for Circular Economy Development (ICED), developing circular tourism requires considering the entire lifecycle of tourism-related products and evaluating the long-term effectiveness of circular economy practices rather than engaging in superficial environmentally friendly actions He emphasizes that the key areas for rebuilding include adopting sustainable practices that focus on durability and reuse, implementing comprehensive lifecycle assessments, fostering collaboration among stakeholders, and ensuring policies support circular economy principles in tourism.
To promote sustainable tourism, it is essential to reevaluate the supply chain based on the product life cycle, emphasizing eco-friendly choices Many hotels and travel accommodations have shifted from single-use plastics to paper-based products; however, the environmental benefits depend on the entire production process Eco-friendly products must be assessed not only for their material but also for their manufacturing impact, including greenhouse gas emissions and by-products, to ensure they truly reduce environmental harm compared to traditional plastic alternatives.
The circular economy is essential as a sustainable model for humanity's long-term future, beyond its role in marketing products Recognizing its importance, experts like Mr Quan emphasize that successful implementation of the circular economy will enable continuous progress, ensuring economic growth while minimizing environmental impact Embracing the circular economy transforms it from a mere marketing strategy into a vital framework for sustainable development and resource efficiency.
31 itself The only problem for businesses is finance issue in the beginning but in the long term you will see the benefit”
DISCUSSIONS AND SOLUTIONS
Discussions
SWOT analysis for Vietnam tourism
Vietnam’s strategic geographical position, featuring a long coastline with stunning landscapes, beaches, islands, and archipelagos, significantly boosts its tourism industry (Nguyen and Cheung, 2013; Huong and Lee, 2018; Mai and Smith, 2018; Pham-Do and Pham, 2020) Additionally, its tropical climate offers ideal conditions for year-round tourism, making Vietnam an attractive destination for international visitors The combination of diverse natural scenery and favorable weather conditions positions Vietnam as a premier travel hotspot in Southeast Asia.
+ Has a long history for over 4000 years, with a diversity and abundance in cultural traditions, culinary elite, the religious life of an Eastern nation Vietnam has 54 ethnic
Vietnam is home to 34 diverse communities, each boasting unique traditions, festivals, and cuisines that enrich the country's cultural landscape (Trinh and Ryan, 2015) These ethnic groups contribute distinct cultural identities and culinary flavors, painting a vibrant picture of Vietnam’s rich diversity (Michaud and Turner, 2017).
Vietnam's fast-growing economy has led the government to increase investments in infrastructure, including large-scale resorts and high-end hotel systems Recent years have seen the construction and upgrades of transport, telecommunications, and tourism service infrastructure, ensuring a robust support system for the tourism industry Strategically positioned in the Asia-Pacific region, Vietnam benefits from the region's expanding middle class and leverages its rich natural landscapes and cultural resources to boost tourism demand.
Vietnam boasts a stable political security environment, making it an attractive destination for tourists Its open and dynamic economy, supported by numerous free trade agreements worldwide, has increased Vietnam’s influence on the global economy Favorable economic policies further bolster tourism growth, enabling the industry to develop strongly alongside the country's overall economic progress.
Vietnam's large and youthful population, combined with its dynamic energy and hospitable people, significantly boost the country’s tourism development Rapid economic growth has increased income per capita, enabling more Vietnamese to travel domestically and abroad in the future Additionally, the sizable community of over 5 million overseas Vietnamese residing in many developed countries creates a strong demand for travel to their homeland, further supporting Vietnam's tourism industry.
The tourism industry currently faces a limited diversity of products due to a lack of creativity and innovation among businesses, hindering effective exploitation of the country's available resources Additionally, there is no comprehensive night-time economy strategy to promote evening activities such as local cuisine, entertainment, and cultural experiences, which could enhance tourist engagement Poor service quality further contributes to lower tourist expenditure compared to other Southeast Asian countries Moreover, low foreign tourist loyalty is evident, with a small percentage of visitors returning in recent years, indicating challenges in maintaining repeat tourism.
Despite significant investments in infrastructure, current systems still fail to meet the demands of tourism development Overcrowding and overloading at airports and urban areas, coupled with inadequate highway connections between provinces, continue to hinder the region's tourism growth and accessibility.
The Vietnamese tourism sector has experienced a booming trend in recent years, attracting increasing numbers of travelers However, this rapid growth has led to significant challenges, including traffic congestion caused by high passenger volumes and inadequate connecting infrastructure These issues pose potential setbacks to the country's tourism competitiveness, emphasizing the need for strategic improvements to sustain growth and enhance visitor experience.
Environmental pollution poses a significant challenge to Vietnam's tourism industry, impacting food safety and increasing inspection costs to attract visitors Despite the abundant labor force, the sector faces a shortage of professional, high-quality human resources, with many businesses lacking the management skills necessary for competitiveness and integration Additionally, communication skills remain a critical weakness among Vietnamese tourism employees, as there is a shortage of multilingual guides, with current human resources meeting only about 70% of the labor demand.
Vietnam's open economic policies attract increasing international investment and resources, fostering strong economic growth This openness enhances economic exchanges and investment relationships, creating opportunities for expansion across various sectors Additionally, the growing international engagement boosts tourism, inviting more global visitors and promoting sustainable development in Vietnam.
36 international capital sources to develop the tourism business system and accommodation infrastructure
The rapid growth of the Asia-Pacific region offers significant advantages for Vietnam's tourism industry, as Southeast Asia attracts increasing interest from global tourists This rising popularity presents valuable opportunities for Vietnam to leverage its abundant tourism resources and enhance its position as a key destination in the region.
The rising security concerns in key territories and global tourism markets present Vietnam with a strategic opportunity to attract more international tourists by highlighting the stability of its society Additionally, the advancements in information technology and the digital landscape driven by Industry 4.0 offer developing countries like Vietnam a powerful platform to effectively promote their images and tourism services, fueling sustainable tourism growth.
Vietnam's tourism industry is at the early stages of development and currently faces challenges due to limited management skills As the regional competition in the Asia-Pacific intensifies, Vietnam must enhance its competitiveness to keep pace with leading countries in the area Strengthening management capabilities and strategic tourism development are essential for Vietnam to catch up and thrive in the increasingly competitive Asia-Pacific tourism market.
Vietnam faces ongoing environmental challenges, including deforestation, natural disasters, and epidemics that have worsened over the years Rapid urbanization and increased investment in hospitality infrastructure, such as restaurants, hotels, and resorts, have contributed to marine and tourism pollution, emphasizing the need for effective waste treatment systems Additionally, the expansion of urban areas poses significant hurdles to preserving Vietnam’s unique Eastern cultural identity within its tourism industry Climate change further threatens sustainable tourism, especially in lowland regions like the Mekong Delta, where rising sea levels and climate-related risks threaten future development.
Tourism development has the potential to increase income inequality among regions if inclusive economic policies are not implemented Without government intervention, rapid tourism growth may lead to social instability by exacerbating the conflict between wealthy and impoverished communities.
Solutions
Experts emphasize that a comprehensive tourism development plan is essential for ensuring the harmonious and sustainable growth of both sea and land tourism Such a strategy not only supports national defense and security but also highlights the crucial role of tourism in driving economic development Implementing an effective tourism plan is key to balancing environmental, security, and economic benefits for long-term success.
To effectively promote Vietnam's eco-tourism, it is essential to enhance marketing efforts by showcasing the country's rich culture, people, landscapes, and history to both traditional and emerging markets Leveraging websites and international television channels can greatly increase visibility and attract global visitors Additionally, participating in regional conferences and seminars provides valuable platforms to introduce and promote Vietnam's diverse tourism offerings, ensuring a wider reach and sustained interest in eco-tourism destinations.
To distinguish Vietnam's tourism industry on the global stage, it is essential to highlight and promote internationally acclaimed landscapes, showcasing Vietnam's unique natural beauty Establishing representative tourism offices in key potential markets will enhance diplomatic and business relationships, facilitating targeted marketing efforts Additionally, expanding advertising campaigns to reach overseas Vietnamese communities can effectively increase awareness and visitation, positioning Vietnam as a premier travel destination worldwide.
To promote sustainable growth, Vietnam should attract foreign investment by partnering with renowned international tourism investors who have a proven track record of success worldwide This strategy will help develop interconnected tourist destinations across Vietnam and integrate them with global markets, creating a cohesive regional tourism network Emphasizing the development of a value chain model and leveraging Vietnam’s rapid economic growth and rising incomes will attract substantial investment flows into the tourism sector Utilizing foreign capital, management expertise, and international brands will enhance Vietnam's hospitality industry, leading to the emergence of world-class hotels and resorts In the future, these facilities will be capable of hosting prestigious global events such as Miss Universe and international summits, positioning Vietnam as a prominent destination on the world stage.
Enhancing the quality of human resources in tourism businesses is crucial for developing a sustainable, circular tourism industry in Vietnam High-quality tourism personnel significantly improve product and service standards, positioning tourism as a key economic sector To achieve this, systematic development of workforce capacity is essential, involving investments in upgrading vocational training facilities managed by the tourism industry Additionally, implementing targeted training programs for provincial tourism managers ensures they stay aligned with global industry trends, supporting the long-term growth and competitiveness of Vietnam’s tourism sector.
To enhance Vietnam's tourism industry, it is essential to establish comprehensive regional linkages among provinces, fostering the development of diverse and abundant tourist destinations Promoting regional cooperation enables provinces to maximize their unique strengths and resources, creating a more vibrant and interconnected tourism ecosystem across the country.
- Fifth, focus on investment in infrastructure, which harmoniously combines sustainable development goals with services Incorporate infrastructure for industrial development
39 in the overall planning for circular tourism development Promote public-private partnerships to develop the infrastructure of the economy in general and the circular tourism model in particular.