Refers to an economic model in which resources, materials, and products are kept in use for as long as possible through strategies such as reuse, repair, refurbishment, sharing, and recycling, thereby minimizing waste and reducing pressure on natural systems. Within tourism, this approach reshapes how destinations, hotels, tour operators, and transport providers design and manage their operations—shifting from a “take–make–dispose” mentality toward closed-loop systems that prioritize durability, efficiency, and regenerative practices. It is closely linked to sustainability and resource efficiency, but goes further by reimagining value chains so that every output, from food scraps to building materials, can become an input for another process.
In the travel and hospitality sector, adopting such circular principles can mean using renewable or recycled materials in hotel construction, implementing refillable amenities to reduce single-use plastics, designing modular interiors that can be repaired or upgraded instead of replaced, or partnering with local suppliers to create short, transparent, and low-waste supply chains. Destinations may apply this model to manage visitor flows, infrastructure, and community services—encouraging low-impact mobility, promoting local repair and craft industries, and ensuring that tourism-related revenue and resources circulate within the local economy rather than leaking out.
For tourism businesses, the relevance lies both in environmental stewardship and long-term competitiveness. By reducing energy and water consumption, minimizing waste disposal costs, and extending the life of assets and materials, operators can strengthen resilience in the face of rising resource prices and stricter regulations. At the same time, travelers—particularly younger and more conscientious segments—are increasingly seeking accommodations, experiences, and transport options that embody responsible, closed-loop practices. Storytelling around these initiatives, from zero-waste breakfast buffets to upcycled interior design, has become an integral part of brand positioning and guest experience.
Example: “The eco-lodge has embraced a circular economy model, transforming kitchen waste into compost for its organic garden and sourcing furnishings made from reclaimed wood by local artisans.”
Synonyms: closed-loop economy, regenerative economy, zero-waste model, circular tourism model, resource-efficient system.
