Phuket hotels go green in hunt for gold

Bangkok Post

20-07-2025

Thai tourism is embracing sustainability as a core selling point for travellers, as the industry seeks to ensure its survival in a marketplace where such practices have become the "new normal".
As more visitors opt for hotels and tourism operators equipped with sustainable standards, the key to success is seen as deriving from fact-based practices, governing policies and, more importantly, partnerships between operators and financial institutions which support business transformation.
Phuket has become a role model where hoteliers are working closely with Siam Commercial Bank (SCB) to define a new chapter of sustainable tourism on the island.
SUSTAINABLE FINANCE
"At present, the tourism sector is the main engine that keeps the Thai economy hopeful," said SCB chief executive Kris Chantanotoke.
Last year, the tourism sector generated over 2.6 trillion baht, roughly 14% of GDP.
Phuket is among the country's leading tourism destinations, welcoming over 2.4 million foreign tourists during the first five months of this year, representing an 8% increase year-on-year, against a contraction nationwide.
Scheduled to host the Global Sustainable Tourism Council 2026 conference next year, SCB has labelled Phuket as a pilot sustainable destination.
This aligns with the government's plans to issue a new climate change bill, and the goal of the Department of Climate Change and Environment and its stakeholders that are aiming to certify 600 hotels in Phuket as Green Hotel Plus by next year.
"No matter what happens, SCB will never leave Phuket," said Mr Kris, adding that SCB issues the most loans in the province.
In the hospitality and service sectors, SCB holds the largest loan portfolio of 135 billion baht among all Thai banks. In Phuket, SCB's hotel loan portfolio is worth roughly 20 billion baht.
Mr Kris said the bank helps clients tailor their sustainable strategies based on their needs, in order to "get the first button right."
For instance, for clients who are starting to adopt sustainable practice, it could offer different consultations and products to help them become "less brown", or more environmentally friendly businesses, compared to operators who have been doing it for 10 years.
Some may demand funds to improve their service to become more environmentally friendly, such as solar panel investment.
"SCB is committed to supporting operators via loans with special interest rates," said Mr Kris.
The bank offers financial products linked to clear and measurable targets, including sustainability-linked loans, green loans, and green bonds.
These solutions support hoteliers' efforts to secure green building certifications, such as LEED, EDGE, WELL and TREES, as well as operational certifications, including Green Hotel Plus, EarthCheck, and Green Globe.
Nationwide, SCB has issued sustainable loans and bonds totalling 180 billion baht since 2023, of which 80 billion baht went to the hospitality sector.
Mr Kris said the growth was faster than the target of 150-billion-baht during its three-year plan between 2023-2025.
BEYOND HOSPITALITY
SCB's long-standing partners, Kata Group Resorts and Jee Teng Hospitality – leading hoteliers in Phuket – succeeded in implementing sustainable standards across their operations.
"Sustainability is not a choice, but a matter of survival for tourism businesses," said Pramookpisitt Achariyachai, chairman of Kata Group Resorts Thailand and Beyond Hotels & Resorts.
Kata Group operates nine hotels in four provinces in the South -- Phuket, Phangnga, Krabi, and Koh Samui, with over 2,200 rooms.
Operating under the philosophy of "Beyond a good place is a better planet," the group achieved 57 sustainable-related awards, including the prestigious Travelife Gold across its six hotels.
Mr Pramookpisitt said tourists are prioritising a sustainable vacation, particularly the European market, as witnessed from the past decade.
He said travel agents are also selective as they only look for accommodation with certification and standards.
Beyond Kata was the group's first property on the Kata beachfront with 275 rooms, and has been open for over 35 years.
Upon arrival, guests can immediately notice the resort's open-air lobby and atrium design with a high ceiling, enabling the space to keep cool through natural ventilation.
This allows the hotel to save electricity costs of over 145,000 baht per month, or 60 million baht over 30 years, he said.
The resort adopts energy and water reduction, using solar panels, 100% LED lighting, auto-sensor balcony doors, and automation timer systems, as well as recycling water for gardens.
Its waste management mechanisms include using in-house recycling stations, food composter machines, and reducing single-use plastics.
Fruit waste is used to make bathroom amenities such as shampoo and lotion, while surplus food from buffet lines is given away to those in need via the Scholars of Sustenance foundation.
The resort also highlighted sustainability across its procurement system, including employing local residents as 20% of staff. It also hires local contractors and sources products from local suppliers.
To build community engagement, the hotel regularly hosts activities, such as beach cleaning, vegetarian festivals, and 60-minute lighting switch-off, fostering a collaborative relationship.
According to Sajal Gaur, sustainability director at Kata Group, these energy, water and waste management solutions help the Beyond Kata hotel save over 1.1 million baht per month, compared to an average 600,000-baht monthly spend on facilities and staff training.
DRIVEN BY GLOBAL CHAINS
The 600-room Four Points by Sheraton Phuket Patong Beach Resort was opened during the pandemic.
Owned by Jee Teng Hospitality, executive director Saharat Jivavisitnont leads the management with a passion for sustainable tourism.
This property has been awarded three leaves, accredited by the Green Leaf Foundation. Last year, its occupancy rate was over 90%, with a gross operating profit margin of more than 50%.
Mr Saharat said its successful performance has proven that practising sustainability can go hand-in-hand with ensuring elegant and high-quality services for guests.
The hotel buys locally produced ingredients in Phuket, such as goat meat, seafood and cage-free eggs, helping to enrich the local economy, as well as growing its own vegetables in its garden.
Its leftover food is distributed to the local communities, while surplus pineapple and fishbones are made into the hotel's signature "Pinefin Bliss" drink.
The hotel provides regular sustainability training to its staff throughout the year, in order to ensure they realise how their work is meaningful and benefits the society, environment, and themselves.
Under a management contract with Marriott, the global chain also provides hotel owners with the Marriott Environmental Sustainability Hub, a platform that helps plan their operations.
During the first half of this year, the property reduced carbon emissions by 6.72% year-on-year, and reduced energy consumption by 6.82% year-on-year, saving over 2.1 million baht.
Mr Saharat said a branded property allows easier implementation of sustainability under the brand's standard operating procedure, which is the same standard in Marriott properties worldwide, compared to independent hotels.
Jee Teng is currently developing another hotel, the 600-room Sheraton Phuket Nai Harn Beach Resort & Spa, slated for 2028, under a 5-billion-baht investment.
"This property has got the EDGE certification, meaning the sustainability aspects have been embedded since the design and construction process, such as building material selection," said Mr Saharat.
A premium hotel with EDGE certification could cost more than 15-20% higher in investment, compared to uncertified hotels with the same service class, he said. This new hotel has been selected as a pilot project under the SCB sustainability programme.
IMPROVING PHUKET
As a vice-president of the Thai Hotels Association's southern chapter, Mr Saharat said that the association also provides training and seminars on sustainable operations to members, as well as small unlicensed hotels in Phuket, since only a few of them have received green certification.
"More tourism operators are willing to transform their business to be sustainable," he said.
"Sustainability does not necessarily require a huge budget, but can start with appropriate funding. The difference in investment between a hostel and a five-star hotel, or between 200-room and 600-room hotels, can be different due to revenue."
Mr Pramookpisitt added that even though the private sector in Phuket is strong in driving tourism and sustainable practices, the province still requires support from the public sector in improving large-scale infrastructure.
This includes accelerating road projects, or new waste management and water facilities.
"The next chapter for Phuket undeniably requires close collaboration and planning between public and private sectors as there's a national agenda to make the province the regional tourism leader," said Mr Kris.
He said the ongoing challenge is that the province's annual budget is still allocated based on permanent residents, but not including tourists and workers.
Puhket requires a budget restructuring, aligned with the island's infrastructure, tourism plan, and capacity to prevent over-tourism.
Mr Kris said that most green loans today are still concentrated in medium-sized and large operators, with little exposure to small businesses.
During the past two years, SCB has consistently invested in education programmes for small and medium-sized operators.
The bank communicates to them that these green practices are opportunities to help manage expenses and assist their employees and communities.
In the long-run, SCB aims to achieve net-zero greenhouse gas emissions from internal operations by 2030, and net-zero emissions across all of its loan and investment portfolio by 2050.
Its parent company, SCBX Group, is recognised as the first and only financial group in Thailand that sets its net-zero target via the Science Based Targets initiative.
"In terms of sustainable loans in Thailand, there are still a few banks, including SCB, which are fully invested in this segment. I believe that this agenda will become even more important for all players in the future," Mr Kris concluded.
An EV car charger at Four Points by Sheraton Phuket Patong Beach Resort.