Mapping circular economy pathways in Italian hospitality SMEs

The circular economy (CE) promises more than tidier bins and lower bills; at its best, it rewires how value is created and kept in play. In tourism and hospitality, however, the story often stops at quick wins. This study is part of a competitive financed project and looks inside Italian hospitality SMEs to see how CE is actually understood and practiced on the ground, and what helps or hinder firms move beyond entry-level actions. We used an exploratory survey of Italian hospitality SMEs to capture three things: how managers interpret CE, which practices they have in place (from efficiency to reuse/repair, redesign, and collaborative models), and which enablers matter across financial, technological, governance, and relations criteria. We report associations rather than claims of causality and keep the focus on patterns decision-makers can use. A consistent picture emerges. Many managers describe CE in practical terms, as a way to cut resource use, control costs, and meet compliance requirements. That view shapes their actions. Efficiency measures such as saving energy and water or reducing food waste are common and often serve as first steps. Mid-tier practices also appear, including product-service arrangements, donations, and reuse schemes, but their adoption is uneven. More systemic or collaborative approaches are uncommon. Examples such as waste valorization with external partners, shared mobility for guests and staff, supplier take-back, or local symbiosis are typically ad hoc rather than strategic. Engagement with CE exists, yet it remains fragmented. Many initiatives are described as isolated efforts rather than parts of a clear plan. The same pattern is visible in the enabling factors. Financial resources and technology tend to open the first doors. Funding, fiscal incentives, and equipment upgrades support efficiency and product redesign, which are visible and easy to finance. Progress toward higher value-retention strategies like repair, reuse, and regeneration relies on softer capacities. Staff competence, leadership commitment, effective governance, and coordination across firms are crucial. Waste-management infrastructure and stakeholder collaboration can help, but without internal capability and direction they do not move firms beyond incremental change. These findings add a practical dimension to debates on circular economy (CE) adoption in tourism and SMEs. While scholars have called for a shift from waste management toward system redesign (Ghisellini, Cialani, & Ulgiati, 2016), evidence from tourism shows fragmented adoption, often limited to small-scale environmental actions rather than integrated models (Rodríguez et al., 2020). SMEs remain constrained by finance, regulation, and limited expertise, and are still underrepresented in CE and ESG research (Corsini et al., 2022; Khosravi, Cassano, & Gennari, 2025; Khosravi et al., 2024). Our results address this gap by showing where hospitality SMEs sit along the CE continuum and which factors drive their progress. The implications are both practical and policy-relevant. Financial incentives are most effective when paired with capacity-building that strengthens repair, reuse, and redesign skills. At the destination level, collaborative platforms can link firms across the value chain through take-back systems, valorization markets, and shared mobility services, while circular procurement can create steady demand. Moreover, linking incentives to simple CE roadmaps can also guide firms from isolated pilots toward coordinated circular strategies. Ultimately, financial resources and technology can trigger the transition, but lasting progress relies on strong capabilities, effective collaboration, and sound governance.