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Events and Tourism Review Vol. 1 No. 1 (December 2018), 28-34, DOI: 10.18060/22826 
Copyright © 2018 Nripendra Singh and Godwin-Charles Ogbeide. 

This work is licensed under a Creative Commons Attribuion 4.0 International License. 

 

Events and Tourism Review 
 
Volume 1 

 
No. 1 

 
 
Cost Benefit Analysis of Hotel Recycling Practices in India 
 
Nripendra Singh                     
Clarion University Of Pennsylvania   
 
Godwin-Charles Ogbeide 
Indiana University-Purdue university Indianapolis (IUPUI) 
                                                              

 

 
  
 
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Recommended Citation 
Singh, N., & Ogbeide, G-C. (2018). Cost Benefit Analysis of Hotel Recycling Practices in 
India. Events and Tourism Review, 1(1), 28-34. 
 

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Singh, N., & Ogbeide, G-C. (2018) / Events and Tourism Review, 1(1), 28-34.       29 
 

 
Events and Tourism Review Vol. 1 No. 1 (December 2018), 28-34, DOI: 10.18060/22826 

Copyright © 2018 Nripendra Singh and Godwin-Charles Ogbeide 
This work is licensed under a Creative Commons Attribution 4.0 International License. 

 

 
Abstract 
 

Waste management practices like recycling are not only beneficial to the environment 
but can provide economic benefits and enhance the image of the Hoteliers. There is a need for 
more studies on the economic benefits of recycling practices to the hoteliers. This study 
investigated the cost and benefit analysis of solid waste management via recycling in India, by 
exploring eight highly rated hotels and assessing the average recycling benefits attributed to 
these hotels in India. The result indicated that by practicing recycling, the hospitality industry 
would protect the environment while generating economic benefits from waste management.  
 
Keywords: Recycling, Hotel Waste, Waste-Audit, Cost Benefit Analysis, Waste Management 

 
Introduction 

The economic importance of the hospitality and tourism industry cannot be 
overemphasized. According to World Travel & Tourism Council (2018), in 2017, the travel and 
tourism industry was the fastest growing economic sector worldwide. Its direct, indirect and 
induced impact accounted for: (1) US$8.3 trillion contribution to the world’s GDP (10.4%), (2) 
US$882 billion investment (4.5% of total investment) globally, and (3) 313 million jobs, 1 in 10 
jobs worldwide. While the economic importance of the industry cannot be overemphasized, its 
adverse effect on the environment because of the enormous waste attributed to this industry, 
cannot be undermined. According to Central Pollution Control Board (CPCB) of India, waste 
generation varies from 2.2 lbs to 13.22 lbs per hotel room (CPCB, Annual report, 2007). The 
hospitality industry is critically noted as the contributor of as much as 45% of all municipal solid 
waste from this industry (Bacot, McCoy, & Plagman-Galvan, 2002). Hence, the purpose of this 
case study is to investigate the cost benefit analysis of solid waste reduction via recycling in 
India. 
 
Literature Review 

According to Kirk (1995) three strategies that hotels can use to reduce the amount of 
waste on the environment need to focus on the following: (1) purchasing policies that include 
sensible packaging of the product, (2) waste management, which includes the minimization of 
operation’s waste, reuse, and recycle of solid waste, and (3) waste disposal principles based on 
sound disposal method and partnership with disposal companies. One of the challenges of waste 
management is the lack of separation of waste at the source by the hotel industry. The operations 
of hotel industries include lodging, restaurant, bars, etc. Having several operations that consume 
food, water, energy, paper, and other resources adds pollutants like solid and wet waste to the 
environment (Kirk, 1995). Taleb (2005) developed a beneficial model of waste recycling 
programs for some hotels in Egypt to support them in waste reduction. Similarly, in the spirit 
hotel waste reduction, some countries employed the principle of “pay as you throw” (Fullerton & 
Kinnaman, 1996). In fact, some local governments in the U.S. have passed legislation to impose 
commercial recycling by substantial businesses (Apotheker, 1995; Oskamp et al., 1991). 

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Singh, N., & Ogbeide, G-C. (2018) / Events and Tourism Review, 1(1), 28-34.       30 
 

 
Events and Tourism Review Vol. 1 No. 1 (December 2018), 28-34, DOI: 10.18060/22826 

Copyright © 2018 Nripendra Singh and Godwin-Charles Ogbeide 
This work is licensed under a Creative Commons Attribution 4.0 International License. 

 

Recycling here refers to setting aside waste material such as aluminum cans, glass and plastic 
bottles, and paper to be recycled. In hospitality context, this action reduces the amount of waste, 
which goes to landfills, minimizes hauling cost, adds to profitability, and green image (Baker, 
Davis, & Weaver, 2013; Singla, 2013; Singh & Lavina, 2015; Singh, Sundari, & Nath, 2015; 
Singh, Cranage, & Lee, 2014). Thus, recycling helps in reducing the overall waste that goes in 
the landfill, also referred as waste reduction.   

Among the various barriers to recycling (e.g., time, cost, and space), the shortage of a 
“doorstep” collection service was noted as the leading challenge (Maclaren & Yu, 1997; Horobin 
& Long, 1996). Hence, waste materials seem difficult to separate because its time consuming 
and costly, as well as lack of space for different bins. However, findings indicated that improving 
hotel waste management would reduce operational cost, reduce energy consumption and help 
advance the company’s corporate image towards attainment of a competitive advantage 
(Mensah, 2006). 

Hotel waste includes glass, aluminium, steel, plastics, food and cardboard (Axler, 1973; 
Kirk, 1995; Taleb, 2005). A substantial hotel can produce up to eight tons of waste daily, and 
about 60 percent of this is recyclable, an obvious indication of the importance of recycling 
(Ogbeide, 2012; Potts, Christenbury, & Wolak, 2002; Snarr & Pezza, 2000). The amount of 
recyclable waste differs from one hotel to another. The difference is based on the kind of hotel, 
purchase practice, occupancy rate, size and number of conferences, lounge/bar business, and 
activities of guests and employees. Nonetheless, findings indicated that best practices in waste 
reduction and recycling could curtail waste to 50 g of unsorted hotel waste per guest night 
(Bohdanowicz, 2005). Bearing the above in mind, the importance of hotel recycling program 
cannot be undermined. Most importantly, how could hoteliers be  motivated to incorporate best 
practices in recycling into their operations? The study aims to use the cost benefit analysis from 
recycling the hotel waste material to encourage more hoteliers to adopt recycling practice.   
 
Methodology 

Primary data from waste audits of eight highly rated hotels in the Delhi national capital 
region (NCR) of India and secondary data from a literature review provided a foundation for this 
case study. According to Evergreen Environmental (n.d.), a waste audit is a process that can be 
utilized to establish the quantity and kinds of waste produced by an organization. Evidence from 
such audits can be used to identify how to reduce the amount of waste an organization generates. 
The eight selected hotels for the waste audit include, Jaypee Siddharth Hotel, Park Plaza, Hilton 
Hotel, La-Shangri-la Hotel, Jaypee Greens Golf & Spa Resort, Country INN, Lemon Tree Hotel, 
and Jaypee Vasant Continental. These hotels were selected because of their brand and consent to 
participate in waste audit.  

The waste audit instrument was based on a structured format, which was validated by 
experts in the field before its utilization for this study. The instrument consisted of 10 different 
waste materials generated in hotels. The data generated from the audit was subjected to a cost 
benefit analysis. The analysis focused on the difference between the total cost of recycling and 
the benefit of recycling (Net benefit = Benefit – Cost). The information about the cost of 
recycling was based on a direct interview of the Indian Pollution Control Association (IPCA) and 
triangulated with two additional interviews from Indian non-governmental organizations 
(Chintan and Vatavaran)  and facts from the literature review (Nilofour, Swamy, & Devi, 2013). 

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Singh, N., & Ogbeide, G-C. (2018) / Events and Tourism Review, 1(1), 28-34.       31 
 

 
Events and Tourism Review Vol. 1 No. 1 (December 2018), 28-34, DOI: 10.18060/22826 

Copyright © 2018 Nripendra Singh and Godwin-Charles Ogbeide 
This work is licensed under a Creative Commons Attribution 4.0 International License. 

 

In a study conducted by New Delhi Municipal Cooperation (NDMC) and Central Pollution 
Control Board (CPCB) in India on waste separation, it was discovered that a single labor could 
be used to separate 100 kg of waste per day (Devi, Arza, Swamy, & Krishna, 2014). The 
economic benefits of recycling were based on the revenue made from selling recyclable items to 
scrap dealers. 
 
Result and Discussion 

Once the entire waste audit process was completed for the selected hotels, the average of 
each waste material produced from the hotels was determined. Table 1 displays the average of 
each waste material generated from 10 different hotel wastes.   
Cost and Benefit: The hotels’ first-year cost of employing green practices in their facilities 
included the cost of added labor for waste separation (i.e., one labor per 100 kg of waste 
separation), cost of bins and miscellaneous cost. The second year’s cost of recycling included the 
labor cost for waste separation and miscellaneous cost, but excluded the cost of bins because it 
would be a onetime expense. 
 
Table 1. Average Quantity of Each Waste Material Generated From all Eight Hotels 

Material 
Average waste/day 

(LB) 
Average waste/Yr 

(LB) 
Plastic Pet Bottle 18.79 6,856.62 
Other/Mixed Plastic 24.56 8,963.49 
Tetra Pak (Laminated Paper) 12.36 4,510.85 
Aluminum 10.46 3,819.27 
Glass 360.95 131,748.21 
Newspaper 152.25 55,572.62 
Mixed Office Paper 17.69 6,458.13 
Cardboard 363.83 132,796.13 
Food/Wet Waste 1,664.88 607,681.29 
Trash (Laminated Plastic) 5.38 1,963.74 
Total 2,631.15 960,370.33 

 
The third year’s cost of recycling included 50% of the labor cost for waste separation and 
miscellaneous cost. The 50% of labor cost was based on experience and specialization in the 
labor required for waste separation. The cost of the fourth year of recycling was the same as the 
cost of the third year. There was no recycling cost associated with recycling from the fifth year 
onwards.  

The above cost estimate was based on the discussion with the senior operations managers 
at the surveyed hotels. Based on the discussion with these experts it was intuitively decided that 
the extra cost of hiring eight labors for separating waste would be saved because separation 
would become a habit or a way of work. Thus, the waste would be pre-sorted from room and 
kitchen areas, which would not need extra labor for sorting. It is essential to note here that the 
extra cost of labor was added only for the purpose of sorting the commingled waste, especially 
from the rooms and kitchen area. There might be a need for sorting the waste coming from 

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Singh, N., & Ogbeide, G-C. (2018) / Events and Tourism Review, 1(1), 28-34.       32 
 

 
Events and Tourism Review Vol. 1 No. 1 (December 2018), 28-34, DOI: 10.18060/22826 

Copyright © 2018 Nripendra Singh and Godwin-Charles Ogbeide 
This work is licensed under a Creative Commons Attribution 4.0 International License. 

 

events and gatherings such as conferences etc., but it would be negligible due to the experience 
and specialization in the labor required for waste separation.            

The benefit of recycling was based on the income from revenue made from selling 
recyclable items (salvage) to scrap dealers. The average revenue was estimated to be the same 
for each year. The net benefit was based on the difference between the total cost of recycling and 
the benefit of recycling (see Table 2). 
 
Table 2. Cost Benefit Analysis of Hotel Waste Management in India 
 

  Year 1 ($) Year 2 ($)  Year 3 ($) 
 

Year 4 ($) Year 5 ($) 
Labor cost 9291.41 9291.41 4645.71 4645.71 0.00 
Bins cost 593.90 0.00 0.00 0.00 0.00 
Miscellaneous cost 1244.38 1244.38 1244.38 1244.38 0.00 
Total Cost $11,129.69 $10,535.79 $5,890.09 $5,890.09 0.00 
        
Benefit (Average 
Income from 
salvage)      $11,397.64   $11,397.64   $11,397.64   $11,397.64   $11,397.64  
        
Net Benefit  $267.95   $861.85   $5,507.56   $5,507.56   $11,397.64  

 
Conclusion and Implications  

The cost and benefit analysis of hotels recycling practices in India indicates that some 
hotels can actually save some money if waste management practices are adopted. These findings 
are in line with the recent studies such as Singh et al. (2015), which suggest that recycling 
practices can increase profitability of hotels in the long run. However, is the finding enough to 
motivate other hoteliers to adopt waste reduction (recycling) practices in their facilities?  

The stimulus for all hotels to adopt waste reduction practices would be a great 
implication of this case study. However, it is evident that many hoteliers are well aware of the 
documentation in the literature about the image, environmental and economic benefits of waste 
reduction in the world. Upon all the implications, many hotels are still not motivated to adopt 
waste management practices. Hence, a combination of all the benefits of waste reduction and 
some agreeable regulations might be a solution toward encouraging the hoteliers to practice 
recycling.  

This recommendation is in support of the work of Hasek (1991), that increased 
government regulations and legislation would encourage some hotels to adopt the practice of 
hotel waste management using recycling. Regardless of the motivation approach, hotel recycling 
practices should be customized to suit each hotel’s waste management needs. Legislating or 
regulating hotel waste reduction practices could be both important and very complex. It is even 
going to be more challenging in most capitalistic societies. Hence, such proposal and the 
enforcement of the proposal would require the cooperation of the hotel industry movers and 
shakers, coupled with great emphasis on the image, environmental and economic benefits of 
adopting hotel waste reduction practices.  

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Singh, N., & Ogbeide, G-C. (2018) / Events and Tourism Review, 1(1), 28-34.       33 
 

 
Events and Tourism Review Vol. 1 No. 1 (December 2018), 28-34, DOI: 10.18060/22826 

Copyright © 2018 Nripendra Singh and Godwin-Charles Ogbeide 
This work is licensed under a Creative Commons Attribution 4.0 International License. 

 

Some of the limitations of this study include the fact that the cost benefit analysis was 
based on the economic condition in India. The differences between the cost benefit analyses 
from other parts of the world will be grounded on the amount and cost of labor required for 
recycling, other miscellaneous costs as well as the economic value of hotel waste in those 
regions. In addition, the cost benefit analysis was based on eight highly ranked hotels in India. 
Thus, the findings might not be applicable to economy hotels in India or other parts of the world. 
Hence, future studies should aim to explore different types of hotels in different parts of the 
world in order to show a comprehensive benefit of hotel recycling practices. 
 
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Singh, N., & Ogbeide, G-C. (2018) / Events and Tourism Review, 1(1), 28-34.       34 
 

 
Events and Tourism Review Vol. 1 No. 1 (December 2018), 28-34, DOI: 10.18060/22826 

Copyright © 2018 Nripendra Singh and Godwin-Charles Ogbeide 
This work is licensed under a Creative Commons Attribution 4.0 International License. 

 

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