As a different way of thinking, the CE model tries to create a harmonious system between the environment and the economy [
3], mainly by recycling and reuse [
4]. The transition to the CE involves preventing the loss of valuable materials, job creation, economic growth, and incentivizing eco-designs [
5]. The CE is complemented by eco-innovation [
6,
7] and intends to fulfill four basic economic functions (resources, production, consumption, and recycling) [
8] by covering three fundamental issues. i.e., reduction of carbon emission levels, treatment for waste recovery, and protection of water resources, which are also issues faced by the tourism sector to be more competitive and sustainable [
9].
The challenge is how to integrate all these aspects into a new paradigm, especially if tourism is considered to be a valuable sector worldwide; tourism contributes 5% of the world GDP and 6% of world service exports, generating 235 million jobs, which is one in every 12 jobs in the world [
10]. The question that arises is whether it is possible to change the current paradigm to create a win-win situation for all involved. Geng and Doberstein [
11] and Park et al. [
12] stated that the CE is based on a philosophy that allows the coexistence of healthy economies and environment. However, scientific progress in CE is incipient and the existing research is mainly theoretical [
8,
13,
14] or based on the development of theoretical models [
15] applied to the food system. Therefore, we do not yet know which implanted business models are more adapted to the CE, and applications to the tourism sector have been limited [
16].
The data demonstrate the impact of tourism on the environment and on the well-being of cities, therefore, transitioning the tourism sector toward a CE is of importance [
17]. Therefore, generating CE practices in the sector can be a determinant for the achievement of sustainable development, but the transition to a CE requires conscious cooperation within the tourist destination among public administration, residents, and the tourism sector [
18]. Hence, the introduction of CE in tourist destinations does not depend on universal recipes for companies, but on the experience, ideas, and initiatives of diverse stakeholders such as business owners, managers, skilled staff, networks of suppliers, and customers [
19].
In this context, tourist destinations in the world, such as Puerto Vallarta, have tried to be competitive and achieve sustainability through some strategies that have focused mainly on reducing environmental impacts [
20]. Due to the prevailing mainstream tourism model of “sun and beach” in the area and to a more environmental sensitive market, Puerto Vallarta is concerned about preserving its territory and local culture, opting for better practices in their companies, however, we wanted to determine if they could be considered close to a CE.
The aim of this work was to explore the tourism sector axis at a local scale in Puerto Vallarta, the companies´ knowledge about the CE concept, whether or not they call it by this name, and their actual involvement in its practices, to determine their willingness to design a transition to a CE.
Literature Review on Circular Economy (CE) and Tourism
Although interest is growing in the CE concept, its application to the tourism sector has been limited [
16], which is also true for the academic field. Jones and Wynn [
21] reviewed the academic literature on CE, natural capital, and resilience applied to tourism and hospitality, and examined how several companies and organizations in this sector have used these concepts in their commercial operations and development plans. They found that related concepts guided strategies that were built based on challenges and opportunities for sustainability and development planning. However, the management strategies did not reflect the current theoretical depth. The implementation of information systems was proposed to support these concepts in the management of sustainability.
Vargas-Sánchez [
22] recognized that the economy was in a process of transition toward the circular model and noted the lack of a common understanding of this concept, with a limited scope in its use. In addition, few well-documented initiatives on CE existed in the tourism industry. Relevant factors that influenced the transition to CE were considered from an organizational perspective and a strategic management approach was used combined with a neo-institutional theoretical lens, to identify four scenarios after selecting several relevant internal and external dimensions to help understand the form of the expected transition of tourism to a CE. Tour operators could position themselves within this framework to analyze their conditions to address this change [
22].
Life cycle analysis in complex business models has been proposed to identify the possible negative environmental effects of commercial initiatives at the system level [
23]. However, continuous monitoring is necessary to maintain the competitiveness of the destination [
24], where sustainability strategies seem to be successful.
The differences between sustainability and CE have been examined. Geissdoerfer et al. [
25] reviewed the literature, searching for their relationship and differences, and found that the CE was frequently viewed as a condition to achieve sustainability and could not be implemented in isolation. They investigated how a better understanding of both concepts and practices could influence the performance of business, supply chains, and companies in different economy sectors. The CE was also linked to the United Nations Sustainable Development Goals, particularly non-poverty, sustainable cities and communities, responsible consumption and production, and the promotion of inclusive and sustainable industrialization and innovation, which implied the necessity to ensure environmental quality, economic prosperity, and social equity, to which the tourism sector could contribute actively, to the benefit of current and future generations [
18].
The CE aim, interrelated with sustainability, is to ensure that the value of products, materials, and resources are maintained in the economy as long as possible and that waste generation is minimized. The CE model is nonlinear, based on the principle of closing the life cycle of products, services, waste, materials, energy, and water, on the basis of three principles, i.e., preserve and improve natural capital, optimize the use of resources, and promote the effectiveness of the system.
When measuring sustainable tourism competitiveness, most of the models consider three basic aspects, i.e., economic, social, and environmental, but with greater emphasis on the social and environmental aspects (
Table 1).
An analysis of the existing models on sustainability that are based mainly on indicators showed that this new reality in the destinations must be captured using new methods of research and measurement. These new formulas of sustainable development and new technologies in the companies of the sector should be applied to promote the use of renewable energies, reduce consumption, and reuse the components [
37].
Implementing CE practices in the sector can be a determinant for the realization of sustainable development. Although CE is becoming a main concept in sustainability-related topics and the current discussion is promising, companies still perceive it as something unnecessary, too innovative, and too expensive. Miret [
6] derived some questions to address the situation and how companies perceive CE. They concluded that the common perception in companies was linked to the CE efforts that placed too much focus on meeting new and higher environmental protection standards, and thus weakened profit maximization, especially for small companies.
The transition toward the circular model is a multilevel process, although the main change really occurs at the micro level, where a single actor (company or institution for example) interacts with a wide network of external actors. To promote a transition in a tourism destination, a three-axis model has been proposed. i.e., public administration, resident population, and the tourism sector, which necessitates changes in the various stakeholders and their interactions [
7].
Another challenge to the shift toward a more CE, for small- and medium-sized enterprises (SMEs) such as hotels, is the financial barrier. Due to the lack of capital to invest in new technologies, for example, to reduce negative impacts on the environment [
19], strategies for these companies must be improved to minimize these barriers.
Related to the complete business cycle, collective action is required on the part of all major stakeholders. Thus, the stakeholder perspective is critical for providing the required framework for a transition toward the CE paradigm because this group can affect the achievement of the company goals due the financial or human capital investments and the real interest [
38].
The perception of stakeholders as key informants about their companies’ performance related to CE has not been evaluated in the academic literature, which is the main contribution of this research. The few existing CE studies on tourism research have focused on how companies apply general CE production principles or, recently, how tourists’ practices can support the development of a CE in tourism [
9].
This research is explanatory in nature, using a quantitative approach through a sequential exploratory design. The data were collected through a survey that was designed to obtain the opinion of the companies’ stakeholders through a questionnaire in which attitudes and motives were measured using a Likert scale. This research was developed under different ethical principles; the principle of autonomy was respected as respondents were aware that participation in the study was voluntary.