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Phuket tourism thrives as local foundation launches net-zero initiative. (Photo: Pixabay)
Tourism contributes 8% of global carbon emissions, and Phuket, one of Thailand’s top travel destinations, is taking steps to cut its environmental impact.
The Phuket Sustainable Tourism Development Foundation is leading efforts to make the island’s old town carbon-neutral by 2030. The foundation also plans to introduce green standards for tourism operators, with a goal of helping more than 600 hotels secure green certifications within the next two years.
Local foundation sets Phuket as ESG tourism model
Bhummikitti Ruktaengam, chairman of the Phuket Sustainable Tourism Development Foundation, vowed to make Phuket a model for Thailand's tourism industry. He emphasized the importance of the industry adhering to Environmental, Social, and Governance (ESG) standards. With the global trend towards carbon reduction, local people are increasingly understanding the significance of ESG.
Bhummikitti advocates for waste management, not only to ease the pressure on the landfill near the old town but also through collaboration with the local food rescue foundation, Scholars of Sustenance Foundation (SOS). The goal is to establish a central kitchen to collect leftover food from hotel buffets, promoting a circular economy.
The foundation has also signed an agreement with Thailand’s Ministry of Climate Change and Environment to promote green standards in the tourism industry. The goal is for over 60% of Phuket’s hotels to meet the Global Sustainable Tourism Council (GSTC) green hotel standards within two years. The foundation will also assist in training certification inspectors. Phuket has been selected to host the inaugural GSTC meeting, scheduled for next year.
The Phuket Sustainable Tourism Development Foundation promotes waste management, aiming to reduce the burden on the old town landfill. (Photo: iStock)
High costs slow energy transition for Thai tourism SMEs
Seventy percent of tourism operators in Thailand are small and medium-sized enterprises (SMEs). As the government budget is based on household numbers rather than the number of tourists, sustainability-related projects and infrastructure face financial constraints.
Moreover, the high upfront costs of the energy transition, combined with the difficulty SMEs face in securing loans, concern Bhummikitti, who hopes the foundation can help build sustainable practices within the industry.
Compared to SMEs that still require the foundation’s support, large enterprises are more developed but continue to face challenges. Chompan Kulnides, Chief Sustainability Officer at Minor International, a listed hotel group in Thailand, pointed out that European hotels can purchase renewable energy through various channels, but in Thailand, there is only one option.
Chompan believes that it is difficult for large tourism operators to make significant progress on ESG initiatives in a short period. Meeting customer demands while operating efficiently under ESG guidelines is a challenge, particularly when it comes to collecting data on operations and supply chains. The European Union’s Corporate Sustainability Due Diligence Directive (CS3D) has forced companies to address supply chain performance issues.
By the end of 2024, Minor Group operates hotel businesses in 58 countries, managing 2,699 restaurants across 24 countries. The group has committed to achieving net-zero emissions by 2050, with a target to reduce energy consumption and greenhouse gas emissions by 15% compared to 2019 and to reduce water intensity by 10% compared to 2022.
Source: Bangkok Post, Minor
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