Small Business in Tourism: What and How? - WHAT IS CIRCULAR TOURISM

Characteristics of Small Tourism Businesses (STB)

STB are typically independently owned and operated, with a smaller scale compared to large hotel chains or tourism conglomerates. They include various categories such as bed-and-breakfasts, boutique hotels, local restaurants, guided tours, and small-scale entertainment providers. These businesses are known for their flexibility, local flavor, and close connections to their communities.

Despite their smaller size, STB can have a significant impact on the local economy and the overall tourism experience. They contribute to local employment, support local suppliers, and often provide a more authentic experience for tourists. Because of their close ties to the community, they are uniquely positioned to implement sustainable practices and contribute to a circular economy.

Strategic Planning for Small Tourism Businesses

Strategic planning is crucial for the success of STB. It involves identifying the business's mission, vision, and goals, and then devising a roadmap to achieve them. This process includes analyzing market trends, customer preferences, and competitive landscapes to develop effective business models and marketing strategies.

One popular tool for strategic planning in tourism is the Business Model Canvas, which helps businesses identify key elements such as customer segments, value propositions, and revenue streams. By using this tool, STB can focus on sustainability and circularity, ensuring that their operations align with environmental and social responsibility.

Sustainability and Innovation in Small Tourism Businesses

To thrive in the evolving tourism landscape, small businesses must embrace innovation and sustainability, acting within the ReSolve framework (further explained in Module 2) and applying its circular principles to the different business categories. This requires the development of circular skills viewed in depth across Module 6, and the adoption circular practices, such as reducing waste, sourcing local and renewable resources, and engaging with the community. By doing so, small businesses can attract eco-conscious tourists and contribute to a more sustainable tourism industry.

An excellent example of a circular tourism business is the Dragonfly Gardens in Brasov, Romania, which has created an eco-friendly glamping experience with minimal environmental impact. The business utilizes recycled materials, self-sufficient energy sources, and a bio garden for food production. This demonstrates how innovation and sustainability can lead to success in the tourism industry.

Small businesses in tourism are independently owned and operated, offering unique, personalized services that differentiate them from larger tourism enterprises. You will know all about service definition, conceptualisation, structuring, production and management process in the dedicated Module 3. These businesses can be in various forms, such as bed-and-breakfasts, boutique hotels, local restaurants, guided tours, or small-scale entertainment providers. They are known for their flexibility, local flavor, and community engagement.

Strategic planning is critical for these businesses to thrive. The Business Model Canvas is a widely used tool to help small businesses plan their operations. This canvas breaks down the business into key elements like customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. By understanding these elements, small businesses can develop strategies that focus on sustainability and circularity.

Adopting a circular approach to tourism involves reducing waste, reusing materials, sourcing locally, and minimizing environmental impact. Small businesses are often in a unique position to implement these practices due to their size and close ties to the local community. Sustainable practices can enhance the business's appeal to eco-conscious tourists and support the broader goal of a circular tourism industry.

Practical Application
Practical application of circular principles in STB involves adopting strategies that reduce waste, conserve resources, and engage with the local community. Here are some examples:
● Waste Reduction: Implementing recycling programs, composting food waste, and reducing single-use plastics in operations.

● Sustainable Sourcing: Purchasing from local and sustainable suppliers, supporting local farmers, and utilizing renewable energy sources.
● Community Engagement: Collaborating with other local businesses, participating in community events, and promoting local culture and heritage.
● Marketing and Branding: Emphasizing sustainability and circular practices in marketing materials to attract eco-conscious tourists.

Case Studies

Case studies offer practical examples of how STB can successfully implement circular principles. One notable case study that can be found in our Projects Database is the Dragonfly Gardens in Brasov, Romania. This eco-friendly glamping site showcases how circular practices can create a unique and sustainable tourism experience in both their project n.1 and 2. This can be found also in the form of Digital Story.

Exercise: Multiple choice

Characteristics of Small Businesses in Tourism

Which of the following is a common characteristic of small businesses in tourism?

✓ A. They are independently owned and operated.

✓ B. They are large enterprises with multiple locations.

✓ C. They focus on providing personalized services.

✓ D. Both A and C

Exercise: Multiple choice

Key Processes in Small Business Tourism

What is a fundamental aspect of strategic planning for small businesses in tourism?

✓ A. Identifying customer segments and creating a unique value proposition

✓ B. Conducting large-scale marketing campaigns

✓ C. Focusing on the lowest cost possible, regardless of sustainability

✓ D. Relying on mass production for efficiency

Exercise: Multiple choice

Circular Practices in Small Businesses

How can small businesses in tourism apply circular economy principles?

✓ A. By minimizing waste and promoting recycling

✓ B. By sourcing locally and supporting community-based practices

✓ C. By offering sustainable services and reducing energy consumption

✓ D. All of the above

1. Ellen MacArthur Foundation - "Circular Economy in Detail"

● Description: Extensive resources and detailed explanations about the circular economy.

● Link: Ellen MacArthur Foundation Circular Economy

2. Digital Story: https://youtu.be/K5ESEVJ_fq0?si=SvNh3NLhFYiHEvdw

3. C-Tour Database: https://c-tour.eu/en/learning-platform/1/All

1. Geissdoerfer, Martin, et al. - "The Circular Economy – A new sustainability paradigm?"

● Description: A journal article discussing the implications and definition of the circular economy.

● Link: Journal of Cleaner Production

2. Lacy, Peter, and Rutqvist, Jakob - "Waste to Wealth: The Circular Economy Advantage"

● Description: A book that explores how businesses can implement circular economy models to turn waste into a driver of profit and sustainability.

● Link: Waste to Wealth

3. McKinsey & Company - "Towards the Circular Economy: Economic and business rationale for an accelerated transition"

●Description: A report by the Ellen MacArthur Foundation and McKinsey exploring the economic rationale for transitioning to a circular economy.

● Link: McKinsey & Company Report

4. Bocken, Nancy M.P., et al. - "A Literature and Practice Review to Develop Sustainable Business Model Archetypes"

● Description: This article categorises different types of sustainable business models, which are useful for understanding various circular practices.

● Link: Journal of Cleaner Production

5. Journal of Sustainable Tourism

●Description: A peer-reviewed journal that covers a wide range of topics related to sustainable practices within the tourism industry.

● Link: Journal of Sustainable Tourism

6. Tukker, Arnold - "Product Services for a Resource-efficient and Circular Economy – A Review"

● Description: A review of product service systems in the context of a circular economy.

● Link: Journal of Cleaner Production