The Gen XY Lifestyle
Balancing Luxury and Sustainability: How Asia’s Hospitality Sector is Redefining Tourism
Asia’s hospitality sector is striking a balance between luxury and sustainability, evolving from a niche trend into a mainstream movement that is reshaping how travellers, businesses, and destinations approach tourism.
Professor Lisa Wan, Associate Professor at the School of Hotel and Tourism Management at The Chinese University of Hong Kong (CUHK) Business School, shared these insights at Economist Impact’s Sustainability Week Asia in Bangkok earlier in March.
Post-pandemic travel surges have amplified the need for sustainable tourism. According to Professor Wan, many popular destinations struggled with overtourism, increased waste, and pressure on local resources. She emphasised that ensuring tourism remains sustainable is key to preserving both the environment and the communities that host visitors.
The Psychology Behind Tourist Behaviour
One of Professor Wan’s key research areas explores the concept of psychological distance in travel settings. Her findings reveal that tourists often behave less responsibly when away from home, as they perceive destinations as external to their personal environment.
This detachment, she explains, reduces travellers’ sense of accountability for their actions. However, meaningful local interactions—such as engaging with residents or immersing in cultural experiences—can help bridge this gap, fostering a stronger connection to the destination and encouraging more sustainable behaviour.
Professor Wan highlighted initiatives such as Hong Kong’s cultural tourism programmes and Japan’s Satoyama village experiences, where visitors participate in traditional rural lifestyles. Studies show that tourists involved in such immersive experiences are more likely to adopt environmentally friendly habits, such as reducing waste and respecting natural surroundings.
Luxury and Sustainability: A New Perspective
Contrary to the assumption that sustainability undermines luxury, Professor Wan’s research suggests it enhances high-end hospitality experiences. The notion of luxury is shifting away from excess toward a model that prioritises quality, craftsmanship, and longevity.
She cites Six Senses Resort as an example of an ultra-luxury destination that integrates sustainability effortlessly—using locally sourced materials while maintaining impeccable aesthetics. Guests enjoy organic farm-to-table dining and nature-focused excursions powered by renewable energy, redefining premium travel experiences.
Interestingly, her research also indicates that high-status travellers are increasingly choosing eco-friendly hotels to align with their public image, creating a strong market incentive for sustainable practices.
Cultural Preferences in Eco-Messaging
Hotels hoping to attract environmentally conscious guests must tailor their sustainability messaging to different demographics. Professor Wan’s research suggests that Asian and younger travellers prioritise tangible eco-practices, such as reducing waste and sourcing local ingredients, while Western and older travellers respond more positively to formal sustainability certifications.
In the Greater Bay Area, CUHK Business School has developed the Hotel Sustainability Index to benchmark environmental performance across the hospitality sector, driving industry-wide improvements in greener operations.
Sustainable Tourism as an Economic Opportunity
For countries like Thailand and other Southeast Asian destinations reliant on tourism, the shift toward sustainability need not come at the cost of economic success. Professor Wan advocates for a balanced approach that harmonises environmental conservation, social responsibility, and economic viability.
By embracing responsible travel practices, the hospitality sector can protect natural resources while ensuring long-term benefits for both visitors and local communities.
The future of tourism, she concluded, lies in creating experiences that are sustainable, meaningful, and rewarding for all.
Photo by Florian Wehde on Unsplash
