Circular Economy and Its Influence on Customer Satisfaction Among Star-Rated Hotels in Kenya: Water Management Perspective

Abstract

Most economies in the world depend on the tourism industry as a significant contributor to their foreign exchange. Notwithstanding its positive contributions, the tourism industry has inherent challenges that cannot be ignored. Climate change and resource depletion are some of the challenges. It is estimated that tourism and hospitality contribute 8% of the GHG emissions globally. These challenges require the adoption of business models that support long-term sustainability. This research sought to assess the relationship between the adoption level of water management strategies and their influence on customer satisfaction among star-rated hotels in Kenya.  The study targeted the 48-star-rated hotels. A sample size of 367 was obtained from a population of 8731 hotel customers from 48 star-rated hotels in the Coast Region of Kenya using Israel’s formulae of 1992. The study used a mixed-method research design. Stratified sampling was used to select the 2-to-5 star-rated hotels. Disproportionate sampling was employed to apportion questionnaires to hotels, while simple random sampling was employed to select customers. Data was collected through questionnaires, interview schedules, and an observation checklist. The data from questionnaires were coded into Statistical Package for Social Sciences (SPSS v.29). A multiple regression analysis established statistically predictive estimates of water management on customer satisfaction (B=1.154, t=8.308, p=.000<.05). This implies that water management initiatives positively impact customer satisfaction. The study recommends that, hotels should communicate their water management initiatives to the guests. The knowledge gained may make them appreciate, the initiatives better, hence enhancing their satisfaction.