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Jaypee Business School, A Constituent of JIIT University, A-10, Sector-62, Noida 201307, India
School of Hospitality Management, The Pennsylvania State University, United States
a r t i c l e
i n f o
Keywords:
Recycling
Hotel waste
Salvage value
GHG emission
Environment benets
a b s t r a c t
Today is the Green Economy era and green strategies, like recycling can provide a great benet to hotel
industry. However, there is a lack of research to support these nancial benets. Therefore, this study
investigates the role of recycling to enhance hotel businesses by contributing to its bottom line. The study
uses a waste-audit technique on ve hotel properties and conducts costbenet analysis based on the
waste-audit results. Furthermore, the study estimates potential environmental impacts from recycling
in terms of greenhouse gas (GHG) reduction. Findings suggest that hotels should practice recycling more
rigorously not only to help the environment, but also to realize some potential monetary benets. Additionally, participation of the hotel guests in this process is also recommended to make it more affordable
and lucrative for the industry.
2014 Elsevier Ltd. All rights reserved.
1. Introduction
Most human activities create waste, and the way this waste is
handled, stored, collected and disposed of can pose risks to the environment and to public health (Zhu et al., 2008). With the increase
of business activities as well as rapid urbanization, the generation of waste has also increased. Improper management of this
waste has led to various hazards not only for human beings but
also for the whole ecosystem. Recycling has been at the forefront
of successfully managing the problem related to waste. It is one of
the processes that is used in Integrated Solid Waste Management
(ISWM) along with reduce and reuse (Memon, 2010). Much of the
progress in the concept of recycling happened in the 1990s and
this is called the decade of recycling in America. The remarkable
increase in the recycling rate rose from 9% in 1989 to 28% in 1996
indicating robust popular support and suggests that this form of
civic environmentalism has entered the mainstream of behavioral
norms in America (Goldstein, 1997).
Total municipal solid waste (MSW) generation in 2010 was
250 million tons in the United States. Organic materials continue to
be the largest component of MSW. Paper and paperboard account
for 29% and yard trimmings and food scraps account for another
27%. While plastics comprise 12%; metals make up 9%; and rubber, leather, and textiles account for 8%. Whereas wood follows at
Corresponding author.
E-mail addresses: nripendra.singh@jiit.ac.in (N. Singh), dac2@psu.edu
(D. Cranage), leeseoki@psu.edu (S. Lee).
1
Tel.: +91 120 2400973 975.
http://dx.doi.org/10.1016/j.ijhm.2014.07.006
0278-4319/ 2014 Elsevier Ltd. All rights reserved.
14
in a waste management program provided direct economic benets to the hotels (through waste minimization), indirect benets
such as a better corporate image, and avoided costs (liability) (Tang,
2004; Vahatiitto, 2010). Studies have shown that tourists (hotel
guests/clients) are willing to pay more for environmental friendly
products and services such as hotel accommodation (Kang et al.,
2012; Masau and Prideaux, 2003). Many hotels are practicing environmentally friendly policies and recycling to manage waste, which
is benetting them by an increase in prot and getting positive customer response and improved corporate brand image (IHRA, 1995).
This line of research can be supported by the instrumental stakeholder theory, suggesting that rms implement socially responsible
activities to eventually enhance their performance and value
(Donaldson and Preston, 1995; Freeman, 1984). In other words,
rms perceive their participation in socially responsible activities, including environemtnally friendly activities, instrumental to
improve their performance. According to the instrumental stakeholder theory, not only shareholders, but also other stakeholders
such as employees and customers inuence rms strategies and
performances, and thus, rms should strive to satisfy all stakeholders in a balanced manner to maximize their value. For example,
rms may improve their employees organizational commitment
by implementing environmentally friendly practices in their businesses, thus enhance retention rate which will consequently help
rms to increase their performance. Several hotel studies were
empirically conducted based on this theory in the context of corporate social responsibility which is a broach concept including
environmental issues, and generally supported the theory (for
example, Inoue and Lee, 2011; Kang et al., 2010; Lee and Park, 2009).
It was, however, also found in some studies that small hotels and
restaurants tend to place environmental concerns as the second priority (rst being revenue generation) in their businesses (Goodall,
1995). As hotels are one of the major sources of solid waste generation, for reducing the volume of this waste, Kirk (1995) focused
on purchasing policies (develop partnership, products with sensible packing), waste management (minimize waste in the operation,
15
3. Methodology
A waste-audit was conducted at ve hotels in University Park,
Center County, Pennsylvania, to nd out the contents of the trash
in their dumpsters and their recycling status. The ve hotels were
selected based on their consent/approval to participate in the
waste-audit in the study area. This paper refers the ve hotels as
Hotels AE for anonymity. Three of the ve (Hotels AC) operate
with food and beverage (F&B) services while the other two (Hotels
16
Table 1
Hotels with F&B services.
Hotel names
Plastic bottle
Other plastic
Terracycle
Aluminium
Glass
Newspaper
Mixed ofce
Cardboard
Compost
Trash
Total
Hotel A
Hotel B
Hotel C
Price
AVE
Waste
AVE
Waste
AVE
Waste
61
16.33
15.00
48.33
27.00
31.67
55.00
0.00
259.33
75.67
589.33
10%
3%
3%
8%
5%
5%
9%
0%
44%
13%
100%
21.96
5.88
5.40
17.40
9.72
11.40
19.80
0
93.36
27.24
212.16
57.5
10.67
22.50
16.83
39.67
30.67
32.00
7.00
286.67
65.33
568.83
10%
2%
4%
3%
7%
5%
6%
1%
50%
11%
100%
20.70
3.84
8.10
6.06
14.28
11.04
11.52
2.52
103.20
23.52
204.78
61.33
4.00
20.00
21.33
40.00
68.67
20.67
24.67
306.67
104.67
672.00
9%
1%
3%
3%
6%
10%
3%
4%
46%
16%
100%
22.08
1.44
7.20
7.68
14.40
24.72
7.44
8.88
110.40
37.68
241.92
Hotel A
Hotel B
Hotel C
Salvage income
$350
200
10
1300
5
35
40
100
Income
$7686
1176
54
22,620
49
399
792
0
$32,776
$7245
768
81
7878
71
386
460
252
$17,141
$7728
288
72
9984
72
865
298
888
$20,195
Notes: AVE represents average pounds per day; waste represents total waste in tons per year; price represents price per tons.
2
According to EPA, WARM calculates and totals GHG emissions of baseline
and alternative waste management practicessource reduction, recycling, combustion, composting, and landlling. The model calculates emissions in metric tons
of carbon equivalent (MTCE), metric tons of carbon dioxide equivalent (MTCO2E),
and energy units (million BTU) across a wide range of material types commonly
found in municipal solid waste (MSW). Relevant Information is available at:
http://epa.gov/epawaste/conserve/tools/warm/index.html.
4. Results
4.1. Waste audits
Table 1 shows waste information of three sampled hotels with
F&B services (Hotels AC). The data collected from Hotels AC
shows that out of total trash thrown in the dumpster for which
the hotels would be charged a hauling fee of $70 per ton, only 13%,
11%, and 16%, respectively are true trash, which should go to the
landll, the rest, 87%, 89%, and 84%, respectively, were recyclable. As
hauling charges are measured by weight and not by time, average
waste per day is multiplied by 360 for a year (assuming that average
working days in a hotel are 360 days) and converted into tons. Thus,
212.16, 204.78, and 241.92 tons of waste would be generated from
these three hotels in a year for which $14,851 (212.16 tons $70),
$14,335 (= 204.78 tons $70), and $16,934 (= 241.92 tons $70),
respectively, come as hauling charges. But as the true trash is only
13%, 11%, and 16%, Hotels AC need to pay only $1931, $1577, and
$2709 where three hotels can save $12,920, $12,758, and $14,225,
respectively, per year. The remaining waste (i.e., 87%, 87%, and 84%)
is recyclable, which could be segregated and sold as salvage value.
As per the approved rates of different waste material from the Centre County Authority, this hotel could earn additional revenue of
$32,776, $17,141, and $20,195, respectively, per year by selling the
recyclable material coming out of its waste stream (Table 1).
Similarly, data from the other two hotels (Hotels D and E), which
does not provide F&B services, shows that out of total trash only 12%
trash is the true trash and 88% of the trash is recyclable for the both
hotels (Table 2). Thus, out of the average amount paid as hauling
charges, which comes to $7914.20 per year for Hotel D and $6711.60
for Hotel E, only 12% needs to be paid and, the rest of $6964.49 for
Hotel D and $5906.21 for Hotel E can be saved along with the saving
of environmental pollution. In addition, the recyclable material has
a salvage value of $18,984.60 for Hotel D and $29,806.80 for Hotel
E per year, as per the approved rate.
An aggregate of the entire country would give a better picture
of the benets of managing the waste in the hotel industry. But due
to the large variation in the size of operations of the hotels, it may
not be valid to extrapolate this data at a country level. Therefore, it
is being done at the county level, which has hotels of fairly similar
size of operations. To nd the industry aggregate in the county and
the estimation of savings from hauling the true trash, the average
for hotels with and without F&B services is calculated separately
from the waste-audit in Tables 3a, 3b and 4a, 4b, respectively.
The data collected from the three hotels with F&B services is
used for calculating the average for Center County, and then multiplied by 50, which is the total number of such hotels in Center
County (refer Table 3a). The results show that 219.62 tons is the
17
Table 2
Hotels without F&B services.
Hotel names
Plastic bottle
Other plastic
Terracycle
Aluminium
Glass
Newspaper
Mixed ofce
Cardboard
Compost
Trash
Total
Hotel D
Hotel E
Price
AVE
Waste
AVE
Waste
52
17.00
18.33
21.67
46.80
9.00
20.07
14.33
78.40
36.47
314.07
17%
5%
6%
7%
15%
3%
6%
5%
25%
12%
100%
18.72
6.12
6.60
7.80
16.85
3.24
7.22
5.16
28.22
13.13
113.06
47
18.67
12.00
45.67
36.33
11.00
9.00
22.00
32.33
32.33
266.33
18%
7%
5%
17%
14%
4%
3%
8%
12%
12%
100%
16.92
6.72
4.32
16.44
13.08
3.96
3.24
7.92
11.64
11.64
95.88
Hotel D
Hotel E
Salvage income
$350
200
10
1300
5
35
40
100
Income
$6552
1224
66
10,140
84
113
289
516
$18,984
$5922
1344
43
21,372
65
139
130
792
$29,807
Notes: AVE represents average pounds per day; Waste represents total waste in tons per year; Price represents price per tons.
Table 3a
Average of hotels with F&B services.
Material
Hotel A
Hotel B
Hotel C
Avg/day
Avg/year (lbs)
Avg/year (tons)
Plastic bottle
Other plastic
Terracycle
Aluminium
Glass
Newspaper
Mixed ofce
Cardboard
Compost
Trash
Total
61.00
16.33
15.00
48.33
27.00
31.67
55.00
0.00
259.33
75.67
589.33
57.50
10.67
22.50
16.83
39.67
30.67
32.00
7.00
286.67
65.33
568.83
61.33
4.00
20.00
21.33
40.00
68.67
20.67
24.67
306.67
104.67
672.00
59.94
10.33
19.17
28.83
35.56
43.67
35.89
10.56
284.22
81.89
610.06
21,580.00
3720.00
6900.00
10,380.00
12,800.00
15,720.00
12,920.00
3800.00
102,320.00
29,480.00
219,620.00
21.58
3.72
6.90
10.38
12.80
15.72
12.92
3.80
102.32
29.48
219.62
Percent
10%
2%
3%
5%
6%
7%
6%
2%
47%
13%
100%
$350
200
10
1300
5
35
40
100
Total income
$7553.00
744.00
69.00
13,494.00
64.00
550.20
516.80
380.00
$23,371.00
Table 3b
Estimation of savings from hauling true trash.
Weight per hotel (in
tons)
Current cost of hauling by hotels @ $70 per ton
Cost of hauling true trash @ 13%
Savings from NOT hauling recyclables @ 87%
Income from salvage @ 40%
219.62
29.48
190.14
87.84
10,981
1474
9507
4392
$768,670
99,927.10
668,742.90
1,168,550
Table 4a
Average of hotels without F&B services.
Material
Hotel D
Hotel E
Avg/day
Avg/year (lbs)
Avg/year (tons)
Percent
Plastic bottle
Other plastic
Terracycle
Aluminium
Glass
Newspaper
Mixed ofce
Cardboard
Compost
Trash
Total
52.00
17.00
18.33
21.67
46.80
9.00
20.07
14.33
78.40
36.47
314.07
47.00
18.67
12.00
45.67
36.33
11.00
9.00
22.00
32.33
32.33
266.33
49.50
17.83
15.17
33.67
41.57
10.00
14.53
18.17
55.37
34.40
290.20
17,820.00
6420.00
5460.00
12,120.00
14,964.00
3600.00
5232.00
6540.00
19,932.00
12,384.00
104,472.00
17.82
6.42
5.46
12.12
14.96
3.60
5.23
6.54
19.93
12.38
104.47
17%
6%
5%
12%
14%
3%
5%
6%
19%
12%
100%
$350
200
10
1300
5
35
40
100
TOTAL INCOME
$6237.00
1284.00
54.60
15,756.00
74.82
126.00
209.28
654.00
$24,395.70
average waste per hotel, and 10,981 tons is the total waste from 50
hotels in one year. Out of the total waste, the true trash is approximately 13%, which is 29.48 tons per hotel, and recyclable material
is 87%, which is 190.14 tons per hotel per year on an average.
Cost estimation for the same is shown in Table 3b, which shows
a net saving of $13,374.86 for each hotel, and $ 668,742.90 for all
50 hotels in Center County with food and beverage. It also shows
the savings of 190.14 tons of trash from dumping in the landll
Table 4b
Estimation of savings from hauling true trash.
104.47
12.53
91.93
72.08
7312.90
877.50
6435.30
24,395.70
5223.50
627
4596.50
3604
365,645
43,875
321,765
1,219,785
18
Table 5
Costbenet analysis.
Category
6 persons
$10
2
43,200
1998.54
30,000
23,371
15,373.4
51,827.54
21,827.54
227.54
227.54
21,372.46
20% of food waste (also sold)
Reduced GHG in the environment
Positive customer view
Satised staff
2 persons
$10
2
14,400
877.5
10,000
24,395.7
7312.9
881.8
9118.2
16,318.2
16,318.2
23,518.2
20% of food waste (also sold)
Reduced GHG in the environment
Positive customer view
Satised staff
Average cost of cleaning staff in hotels range from $710 per hour.
Time to sort the waste is estimated based on the time taken to do
it during our waste-audit of the ve hotels.
Cost of bins is estimated based on the available range from
$5 (recycling waste basket-14 quart) to $25 (waste basket
with hanging waste basket-28 quart) to $90 (16 gallons, Dualcompartment touchless recycle bin/trash can).
Reduction of labor cost by 50% from 3rd year due to experiential
learning, habit-development, training of the cleaning staff, and
no additional requirement from 5th year.
Compost selling price (for customers) varies from $5 to $20 per
40 pounds, but has not been shown in this calculation (due to
non-availability of the production cost), which will surely add to
hotels revenue. Also, food waste is reduced to 20% of its volume
when converted to compost.
Table 5 clearly depicts how a hotel, after incurring additional
expenses of $43,200.00 on labor and $30,000.00 on extra bins,
can generate considerable prots of approximately $21,372.46
within a ve-year period. There will be additional benets from
selling compost, savings from not having to buy fertilizer for garden/horticulture and landscaping, customer loyalty and a premium
on being eco-friendly in the form of staff satisfaction. One of the
most important additional benets will be for the environment,
which is reduction in greenhouse gas (GHG) emission from landlls.
It is clearly evident from Tables 3a and 3b, that hotels with
F&B services, which are paying $15,373.40 currently, will be
required to pay $51,827.54 in the rst year of implementation
of solid waste management program. The additional cost of bins
($30,000.00), extra labor ($43,200.00) and hauling charges/refuse
fee for the true trash ($1998.54), along with the revenue from
Table 6
Salvage value (revenue) from recycling in center county in 10 years.
Total value from hotels
with F&B
Waste material
Plastic bottle
Other plastic
Terracycle
Aluminium
Glass
Newspaper
Mixed ofce
Cardboard
350
200
10
1300
5
35
40
100
1079
186
345
519
640
786
646
190
377,650
37,200
3450
674,700
3200
27,510
25,840
19,000
891
321
273
606
748
180
262
327
4391
1,168,550
3608
Total
Total (1 year)
311,850
64,200
2730
787,800
3741
6300
10,464
32,700
689,500
101,400
6180
1,462,500
6941
33,810
36,304
51,700
6,895,000
1,014,000
61,800
14,625,000
69,410
338,100
363,040
517,000
1,219,785
2,388,335
23,883,350
Total
10,790
1860
3450
5190
6400
7860
6460
1900
51,160
14,740
8910
3210
2730
6060
7482
1800
2616
3270
9966
6192
19,700
5070
6180
11,250
13,882
9660
9076
5170
61,126
20,932
109,810
52,236
162,046
19
landll or is being recycled, combusted or composted, and calculates the amount of GHG emissions thus produced. This needs
to be compared to the alternate scenario. The alternate scenario
includes the reduced amount of waste, which will go to landll, as a result of waste management program. Thus, it shows
the change in GHG emissions as a result of new program. In
this case, it comes to 164,063 MTCO2 E in the alternate scenario.
The total change in GHG emissions as calculated by the WARM
model comes to 362,985 MTCO2 E. This shows how much reduction in GHG emissions can be achieved by waste management
programs.
This GHG emission in metric tons of carbon dioxide equivalent (MTCO2 E) from the model is then used as input in the EPAs
greenhouse gas equivalencies calculator to convert it into different equivalencies like passenger car, gasoline, electricity etc. to
make it possible for the lay person to understand the consequences
of GHG emission and its reduction (greenhouse gas equivalencies
calculator).
The result generated by EPAs greenhouse gas equivalencies calculator for the GHG savings from all the hotels in Center County in
ten years, is shown below:
Emits 362,985 MTCO2 E in ten years equivalent to:
Annual greenhouse gas emissions from 75,622 passenger vehicles.
CO2 emissions from 40,693,386 gallons of gasoline consumed.
CO2 emissions from the electricity use of 54,339 homes for one
year.
CO2 emissions from the energy use of 18,682 homes for one year.
Carbon sequestered by 9,307,308 tree seedlings grown for 10
years.
Carbon sequestered annually by 297,529 acres of pine or r
forests.
Carbon sequestered annually by 2803 acres of forest preserved
from deforestation.
CO2 emissions from 15,124,375 propane cylinders used for home
barbeques.
Alternately, if we look at the GHG savings from an average hotel
in Center County in one year, listed below:
Emits 459 MTCO2 E in a year equivalent to:
20
straws and lids, milk cartons, chocolate and candy wrappers, juice cartons, small plastic bags, gift wrappers, clothes especially socks, soaps,
etc. are found in bulk which is yet to be segregated from the waste
streams. These materials are a main cause of concern to the waste
industry, as they get mixed with other waste especially wet waste
and forcing it to convert the majority of it to trash, which can only
go to landlls. If these waste items can be sorted out and made
good through recycling techniques, it will help the industry and
the environment in a big way.
Organic waste or the food waste from hotels can be very useful
when mixed with the green waste or horticulture waste to produce
good quality compost and soil conditioner. This organic or natural
compost is very useful for the long-term sustainability of the soil
and produces healthy fruits and vegetables on a continuous basis.
Most of the time this waste goes to the landll because it gets mixed
with non-compostable waste material like plastic and aluminum
foil etc. It is also observed that hotels do not segregate them at
the source. A common reason may exist from lack of commitment
due to being unaware about the benets to the business and environment, and a proper facility to process it. A probable solution is
to create a regional infrastructure, which can handle this type of
waste. It was observed that tons of dry leaves during the fall season can be turned to rich organic compost, if a mechanism can be
created to bring the abundant food waste (wet waste) from the
hotels and restaurants and processed properly. This is being done
successfully at the Penn State University using food waste from the
dormitories and kitchens and mixed with the horticulture waste
from gardens and farms.
Lack of stringent laws and enforcement is another reason for
an insufcient practice of recycling, especially in the commercial
sector like hotels and restaurants. It was observed that in hotels
and restaurants with small operations it is more common not to
practice recycling. This is true as they do not see the benet of
doing it. Therefore, creating stringent laws and enforcing them is a
must to increase recycling to the grass-root level. But doing it will
become more useful, if the segregation is done for the small and tiny
waste material, especially from the wet waste/organic waste/food
waste. For this to be implemented, reporting the benets to these
businesses is extremely important, along with providing support
of proper infrastructure.
It is estimated from this study that an average hotel can earn
around $23,371.0024,395.70 per year and can reduce GHG emissions equivalent to 90 passenger vehicles annually by proper
recycling of their waste. These ndings should encourage hotels
to consider implementing recycling at their facilities. Another reason why these hotels have not actively engaged in recycling is
that they feel that customers may not cooperate in segregating
the waste at the source (guest rooms). They do not feel comfortable asking guests to participate in recycling. They presume that
since guests pay hotels for their stay, if they are asked to segregate their waste into separate bins in the room, guests might feel
offended. These perceptions may be without base because, according to hotel managers of the studied ve hotels, many guests tend
to be sensitive toward the issue of recycling and do not hesitate
in helping. It has been also found that hotel guests feel good by
associating themselves with some noble cause like climate change
and waste management (Masau and Prideaux, 2003). According to
a new survey, most people are aware and concerned about damage to the environment and want to do something about it. They
strongly believe that mankind is abusing the planet and that interference with nature may produce disastrous consequences. There
is widespread optimism that it is not too late to do something about
climate change and that it is possible to overcome the worlds environmental problems (Paul, 2007). Thus, it is highly recommended
that hotels should use small size bins in the guest rooms and similar big size bins at common areas in the hotel for giving them an
theories of consumption may be carefully taught with consideration of environmental issues. This may slowly but surely
bring in the desirable change in the society toward waste
management.
Last, this study makes its contributions to the existing literature
by providing ndings that support the instrumental stakeholder
theory. The environmental management strategy or green strategy
encompasses waste management and recycling, and according to
Donaldson and Preston (1995) and Freeman (1984), such strategy
as a part of a broader concept of corporate social responsibility (CSR) acts for rms as an instrument that eventually leads to
enhanced rm performance. Findings of the current study are also
consistent with the enlightened stakeholder theory proposed by
Jensen (2001); a rm cannot ignore its diverse stakeholders various interests if the rm wants to maximize its performance in a
long-run.
6. Conclusion
Based on the ndings of the current study, although the hotel
industry does a certain level of recycling, there is potential for
considerable improvement. Findings show that 87% and 88% of
total waste are either recyclable or compostable for the sampled
hotels with and without F&B services, respectively. Hotels may not
perceive the potential savings from recycling as substantial considering the necessary efforts to do it. However, this study argues
that such perception may not be correct based on the costbenet
analysis suggesting that hotels cannot only make environmentally friendly contributions, but also make prots out of a proper
recycling practice in a long-term. It has been also shown that
recycling saves GHG emission to a large extent. Hotels need to be
made aware of such potential monetary and non-monetary benets and should be encouraged to develop an appropriate recycling
system. Particular attention may need to be given to the areas of
recycling small and light materials (like plastic forks and spoons,
and straws) mixed with wet waste, and organic and food waste.
Hotels may further improve their waste management system by
having a stringent policy for recycling in place and enforcing it.
Finally, waste management and recycling is a concern for all. Therefore, society as a whole should be sensitized to do their part for the
good of the environment.
21
Avg
Percent
Total
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