Circular economy in the tourism sector: the current situation in Gran Canaria and Madeira

Abstract

This study aims to determine the rate of adoption of circular economy in a number of fields related initiatives in Gran Canaria and Madeira. The topic of climate change and the need to transform the paradigm of environmental sustainability in practical steps through the concept of circular economy are the order of the day. That said, the evidence available suggests that the concept of circular economy is complex, and difficult to operationalize. Not surprisingly, the rate of adoption is quite low. The results of this study, based on 90 observations, are based on multivariate statistics and LASSO-Poisson regression. The findings of this study shows that the rate of adoption depends mainly on the hotel’s managers attitudes expressed on their degree of commitment to Circular Economy agenda. The results point to positive spillover effects, as the degree of adoption of each field is dependent on the values ascribed to the other fields under consideration. The control variables under analysis are mainly irrelevant. Significant differences are computed for Gran Canaria and Madeira, in line with the predominant type of tourism products.