Adopting Circular Economy Principles in Hospitality: A Case Study of Peshawar, Pakistan

Abstract

Tourism and hospitality are significant economic drivers but also contributors to environmental degradation. The circular economy (CE) offers a sustainable alternative to the sector’s prevailing linear “take-make-dispose” model by promoting resource efficiency and waste reduction. This study explores the adoption of CE principles in the hospitality industry of Peshawar, Pakistan, an emerging tourism market. We conducted qualitative interviews with managers of ten hotels and guesthouses to understand their awareness of CE, the initiatives they have implemented, and the benefits and challenges of CE adoption. The findings reveal that while participants recognize sustainability’s importance and have implemented select CE practices (particularly the “3Rs” of reduce, reuse, recycle), their understanding of CE is largely limited to these basic principles. Key initiatives identified include energy conservation (solar panel use), refurbishing with reclaimed materials, remanufacturing furniture, and repurposing waste items. Respondents reported benefits such as cost savings and reduced pollution, but also noted obstacles including limited knowledge, financial constraints, and lack of institutional support for implementing broader CE strategies. This paper discusses the implications of these findings in the context of extant literature and offers recommendations to strengthen circular practices in hospitality. It contributes to the nascent research on CE in tourism by providing insights from a developing country context. The study highlights the potential for circular practices to enhance sustainability in hospitality, while underscoring the need for greater awareness, supportive policies, and innovation to overcome current challenges.