Tourism goes green in Thailand

More and more tour operators and global companies are turning to eco-friendly and sustainable green tourism in Thailand.

Tourism is not only an important driver of the Thai economy, but also a means of transforming the country into a sustainable destination.

According to Sustainable Travel International, tourism is responsible for approximately 8% of total carbon emissions worldwide.

As Thailand aims to be carbon neutral by 2050, local tourism operators and global companies are taking steps to improve their practices.

The Four Pillars of Phuket

Organic waste disposal unit as part of the Phuket Old Town Carbon Neutrality Project by 2030.

Phuket- based Sustainable Tourism Development Foundation , said:

“Adopting ESG (environmental, social and governance) measures in the tourism industry is no more difficult than in other sectors.

Phuket residents are now more aware of this issue as tourism grows on the island.

He added that Thai tourism should use the ESG model to move the industry forward.

As Phuket plans to establish itself as a tourism case study for the nation, the foundation is promoting four pillars of sustainability, Mr. Bhummikitti said.

The foundation advocates for waste management by local operators in Phuket Old Town to reduce pressure on landfills, particularly organic waste.

The Department of Scientific Services is also helping to develop a garbage-collecting robot for use in the area, particularly for coconut waste left by tourists.

The foundation aims to make the old town carbon neutral by 2030, while Phuket has been chosen to host the first Global Sustainable Tourism Council (GSTC) conference in Thailand next year.

The foundation also signed a memorandum of understanding with the Department of Climate Change and Environment to promote green standards among tourism operators.

The group wants more than 600 hotels, or about 60% of Phuket's licensed hotels, to be registered as Green Hotel Plus, a certification recognized by the GSTC, within two years, and to train people to audit tourism operators in the province.

The foundation also promotes the Green Fins standard among diving companies for sustainable practices.

Mr. Bhummikitti said the foundation wanted to promote social issues, especially education.

More than 14,000 students have dropped out of school in Phuket, creating a ticking time bomb for the island's economy, he said.

The foundation aims to find a way to work with schools to prevent these problems, Bhummikitti said.

To promote a circular economy, the group is working with the Scholars of Sustenance Foundation to establish a central kitchen, which collects surplus food from Phuket operators, such as hotel buffets, to sell at an affordable price.

Businesses are following the green movement

Divers participate in the Minor Hotel's coral adoption program.

Chompan Kulnides, head of sustainability at SET-listed Minor International, said the company needed to adapt quickly to align with global sustainability trends.

As of the end of 2024, Minor operated 562 hotels and service suites in 58 countries, as well as 2,699 restaurants in 24 countries.

“Investors are not only looking for good returns, but also for companies’ contributions to stakeholders through ESG policies,” said Ms. Chompan.

On the global stage, governments and policymakers attend climate summits every year to address climate change, which affects the operations of private companies, she said.

In Europe, in particular, where Minor has a strong presence in the hospitality sector, requirements are stricter and more detailed than in Thailand, particularly with regard to carbon emissions, human rights and waste sorting.

Ms. Chompan said European hotels can purchase clean energy from several different sources, unlike in Thailand where there is only one choice, or none at all.

The EU also issued a directive on corporate sustainability due diligence, which requires companies to apply environmental and human rights standards in their operations and supply chains.

This requires companies to consider their performance throughout the hotel supply chain, including food sourcing and laundry services, she said.

See: Thailand tourism threatened by EU environmental ultimatum

Similarly, on the consumer side, corporate clients are demanding that hotels have sustainability policies and data, such as tracking and offsetting carbon emissions at events, Chompan said.

Many tourists prefer to stay at hotels that have policies or activities that contribute to the environment or neighboring communities, she said.

Small vs. Large Businesses

Swimming pool of a minor hotel in Bangkok

“We are not concerned about large corporations, which have the capital, knowledge and talent to implement sustainable practices,” Bhummikitti said.

"We are more concerned about small operators, which is why the foundation plays a role in their training."

More than 70% of businesses in Thailand's tourism sector are classified as small and medium-sized enterprises (SMEs).

He said some initiatives can be implemented immediately at low cost, such as waste sorting in households and hostels.

However, larger efforts, such as using solar cells, can require a significant budget and do not promise immediate profits, Bhummikitti said.

At the same time, green loans offered by banks and financial institutions do not take small businesses into account, he said.

The annual budget allocated to Phuket is insufficient for sustainable projects and infrastructure development, as it was calculated based on the number of households and does not include the number of tourists.

Ms. Chompan said that SMEs with fewer properties may be able to move faster with ESG practices due to their small size, while it is more difficult for larger companies to keep track of all the details.

Another challenge for the tourism and hospitality sector is meeting high customer expectations while operating effectively according to ESG standards, she said.

Collecting data about its operations and supply chain can be demanding, so Minor plans to improve the accuracy of this process by making it more systematic, Chompan said.

At the national level, the government must strike a balance between the economic growth generated by tourism and its impact on society so that Thailand does not face the same problems of overtourism as some European cities, she added.

Minor's sustainable initiatives are supported by its Board of Directors and Executive Committee, and integrated into its three-year business plan.

The company also gives autonomy to its on-site partners, such as general managers or hotel owners, to implement their own plans in line with broader sustainability goals.

Minor's current goal is to train and support 3 million people by 2030.

Last year, 57% of students enrolled in its youth development program, called Minor Corporate University, returned to work for the company after graduation.

On the environmental front, the company has set itself the goal of reducing its energy consumption and greenhouse gas emissions by 15%, and reducing its water consumption by 10% by 2019 and 2022, respectively, which are the reference years for which the data is most accurate.

Minor is among the stocks selected for the Stock Exchange of Thailand's sustainable investment lists.

The company also achieved an AA rating in MSCI's ESG ratings and was recognized as "excellent" in corporate governance among Thai listed companies by the Thai Association of Directors.

See also:

Thai island wins award for sustainable tourism

Walking tourism in Thailand boosts local culture and sustainable development

Thailand to promote sustainable aviation fuels

7 Incredible Sustainable Travel Ideas in Thailand

White Lotus Effect in Thailand: Koh Samui hotel rates rise by 50%

Thailand: 100,000 workers trained in English and hospitality to boost tourism

Thailand's luxury hotel growth surpasses London and Singapore

Thailand: Smog threatens tourism, hoteliers sound the alarm

Source: Bangkok Post