Thai hotels must step up sustainability efforts to comply with new European Union (EU) regulations by 2026, according to a report by the Economic and Business Research Centre of Siam Commercial Bank (SCB EIC).
The new rules, including the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), will require companies operating in the EU and those in their supply chains, including Thai hotels, to disclose environmental and social impact reports.
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This shift is expected to significantly impact the Thai hospitality sector, which relies heavily on European tourists.
EU regulations drive sustainability mandate
SCB EIC highlights that over 20,000 Thai hotels list their rooms on Booking.com and Agoda, both owned by the Netherlands-based Booking Holdings. These platforms must comply with CSRD and CSDDD, which means that hotels selling rooms through them must also meet international sustainability standards.
Recognised certifications include Green Key, Green Globe, Travelife, EarthCheck, and the Thai Green Hotel Plus standard, which aligns with the Global Sustainable Tourism Council (GSTC) criteria.
European tour operators selling Thai travel packages will also be subject to these requirements.
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By GlobalDataGrowing consumer demand for sustainable stays
A recent survey by the Tourism Authority of Thailand (TAT) found that 56% of international visitors book hotels through online travel agencies (OTAs), while 35% of European tourists use tour operators.
With Thailand receiving over 35 million international visitors annually—20% of whom are from Europe—the new EU regulations will have widespread implications for the country’s hospitality industry.
Despite this, Thai hotels are still at an early stage in their sustainability journey, with greenhouse gas emissions from Thai hotels averaging 43.4 kgCO2e per occupied room, higher than key destinations such as Japan, Singapore, Italy, and France.
Overcoming barriers to sustainability
SCB EIC notes that only around 100 hotels in Thailand currently hold international sustainability certifications, representing less than 1% of the sector. The majority of these are chain hotels in Bangkok and Phuket.
Challenges include a lack of awareness of long-term benefits, financial and human resource constraints, and the recent recovery from the COVID-19 pandemic.
To transition successfully, SCB EIC recommends a “3T” approach: setting clear sustainability targets, fostering teamwork among staff and suppliers, and implementing gradual transformations, such as energy-efficient upgrades.
Government support essential for industry shift
Experts argue that Thai government support is crucial to accelerating the transition.
Recommended measures include introducing stricter sustainability mandates, creating a green finance fund with low-interest loans for sustainable upgrades, and offering tax incentives for energy-efficient investments and staff training.
By adopting these strategies, Thailand’s hospitality industry can meet evolving global standards and maintain its competitiveness in the international tourism market.
