The Circular Economy and Natural Capital in the Tourism and Hospitality Industry

Abstract

There is growing interest in the role that the circular economy and natural capital might play in the transition to a more sustainable tourism and hospitality industry. While both concepts have attracted attention in the academic, professional and policy literature, few leading tourism and hospitality companies have publicly embraced the two concepts to inform their sustainability programmes. This paper is a narrative review that reports and reflects upon the existing literature, and offers two illustrative case examples of how hotel companies are publicly addressing these concepts. The paper concludes that the circular economy and the protection and enhancement of natural capital offer linked environmental and business benefits for the tourism and hospitality industry, but that, for a number of reasons, there is limited evidence that the two concepts have informed sustainability programmes within the sector. Further research could usefully build upon this study to examine, amongst other aspects, stakeholder involvement in pressuring companies to pursue circular economy and natural capital objectives, the role of digital technologies in supporting this transition, and the wider supply chain implications of such initiatives