Stakeholder Perspective on Sustainability Practices of Star Class Hotels in Dambulla, Sri Lanka

1. Introduction

1.1 Background

In recent years, ‘Sustainability’ is a growing concern in the world which consists of meeting the needs of the present without compromising the needs of the future while ensuring a balance between social well-being, environmental preservation, and economic growth [39]. As one of the world's largest and most dynamic industries, the hotel industry plays an important role in economic development, job creation, and cultural exchange. However, the expansion of the industry has been accompanied by significant challenges, including environmental degradation, social disruptions, and economic imbalances. As awareness of sustainable development continues to increase, many hotels have begun adopting sustainability practices [34].

When it comes to hotel sustainability practices, these practices span three main dimensions including environmental, social and economic sustainability practices. Hotels have adopted Environmental practices to minimize impact on the environment and to develop sustainability. These practices may include such as conserving biodiversity, promoting local and organic produce, community engagement programs, and providing environmental education for both staff and guests [40]. In hospitality industry, social sustainability practices include such as fair labour practices, promoting employee welfare, preserving the culture, engaging with local community and ensuring that guests receive safe, and culturally respectful experiences [23]. Economic sustainability practices include purchasing goods and services directly from regional suppliers, and providing goods and services to tourists, hiring regional residents and promoting stable employment [33].

In the dynamic world of the hotel industry, sustainability plays a vital role in ensuring the overall quality of life of its stakeholders. Stakeholders may include hotel owners, managers, guests, local communities, employees, and suppliers. Each stakeholder plays a unique role and has specific expectations. These expectations can influence hotel’s decisions.

According to Stakeholder Theory, organizations should consider the expectations of groups that influence or are influenced by hotel operation. Therefore, managers, employees, guests, and local communities were selected as the main stakeholders in this research because they directly influence, experience, and are affected by hotel sustainability practices. Managers are responsible for implementing sustainability policies, employees contribute to operational sustainability activities, guests influence demand for sustainable services, and local communities experience the social, cultural, and environmental impacts of hotel operations.

Dambulla is a place and it has remarkable cultural, historical, and natural significance. As tourism continues to grow in Dambulla, it plays a vital role in the local economy. However, this growth also brings some challenges, including increased pressure on precious natural resources, cultural preservation, and the well-being of local communities.

Although many hotels have adopted sustainability practices through policies and official reports, evaluating sustainability only through hotel policies may not provide a complete understanding of the actual implementation and effectiveness of such practices. A stakeholder perspective is very important because it helps to identify whether sustainability practices genuinely meet stakeholder expectations and experiences within the real operational context of hotels.

Various studies have examined about sustainable practices in the hotel industry worldwide such as Bader's research on sustainable hotel practices and nationality [3], Cavagnaro and Gehrels' work on implementing sustainability in the hospitality industry [7]. These are just a few examples of the extensive research contributing to the advancement of sustainable practices worldwide. Considerable research has been done in Sri Lanka to investigate sustainable practices in the hotel industry. However, limited research has specifically explored sustainability practices of star class hotels in Dambulla from a stakeholder perspective. Therefore, using stakeholder theory, this study aims to identify sustainability practices adopted by star class hotels in Dambulla and evaluate the extent to which these practices align with stakeholder expectations and experiences.

1.2 Research Problem

In today's highly competitive world, sustainability has become a major concern. As mentioned above, there has been a lot of research about hotel sustainable practices in the world and Sri Lanka. These studies show the growing recognition of sustainability as an important feature in different sectors, including the hospitality industry.

Understanding the specific context of Dambulla is crucial to appreciating the variation of sustainability practices in star-class hotels operating within this unique environment. When concern about Dambulla, it is a popular tourist destination. Currently, this area is a busy tourist destination and the tourist influx is spread evenly [1]. However, this influx of tourists also brings challenges related to resource consumption, waste generation, and environmental degradation. According to the findings, 75% of locals thought that tourism development enhanced Dambulla City’s physical appearance. However, 73% felt that tourism did not contribute to the conservation of natural assets and additionally, around 50% believed that tourism had caused damage to the natural environment [8]. According to this study, there is a huge risk and a strong need to protect of this area.

In this context, there has been a lack of focus on how this area should be preserved, what kind of sustainable practices are implemented by hotels, and the perspectives of hotel stakeholders regarding these practices. When considering hotel stakeholders, they know a lot about these practices because stakeholders are the people who are aware of these practices and are directly affected by them.

There have been no studies on how the stakeholders' perspective on hotel sustainability practices and there is a research gap about this. So, this study will look at how the hotel's sustainable practices are implemented and how far the hotel goes to execute them, based on how stakeholders feel.

As a results, there is a significant gap in the current understanding of sustainability practices within the hotel industry especially when considering stakeholders. The lack of a comprehensive investigation into how hotels address sustainability from the perspective of their stakeholders raises a critical research question: What are the sustainability practices adopted by hotels, and how do these align with the expectations and concerns of their diverse stakeholders? Identifying this gap is important for not only advancing scholarly knowledge but also providing practical insights that can inform the development and implementation of more effective and inclusive sustainability strategies within the hospitality sector.

1.3 Research Questions

1.3.1 Primary Question

How do stakeholders perceive sustainability practices in star-class hotels in Dambulla, Sri Lanka?

1.3.2 Secondary Questions

What are the key environmental, social, and economic sustainability practices currently adopted by star-class hotels in Dambulla, Sri Lanka, as perceived by the stakeholders of the hotels?

What are the specific sustainability practices to be improved as expected by stakeholders from star-class hotels in Dambulla, Sri Lanka?

1.4 Research Objectives

1.4.1 Primary Objective

To identify stakeholders, perceive sustainability practices in star-class hotels in Dambulla, Sri Lanka

1.4.2 Secondary Objectives

To identify the key environmental, social, and economic sustainability practices currently adopted by star-class hotels in Dambulla, Sri Lanka, as perceived by the stakeholders of the hotels.

To identify the specific sustainability practices to be improved as expected by stakeholders from star-class hotels in Dambulla, Sri Lanka.

1.5 Significance of the Research

This research explores stakeholder perspectives on sustainability practices adopted by star-class hotels in Dambulla, and emphasizes their significance for tourism development. It highlights the importance of sustainability in preserving Dambulla’s cultural heritage while supporting the well-being of locals. Also, it provides insights into tourism practices that promote economic growth while reducing environmental and social impacts. By identifying how hotels implement sustainability practices, it encourages responsible resource use and conservation of environment. This research provides guidance for hoteliers, policymakers, and local stakeholders to strengthen sustainable tourism development and attract environmentally conscious tourists, while also providing a foundation for future research in sustainable hospitality.

2.0 Literature Review

2.1 Sustainability

Sustainability can assist a wide range of sectors, including hospitality, in minimizing environmental damages, which includes not only minimizing energy, water, and waste production but also focusing on social and economic responsibility [14].

In general, sustainability includes the aspects of economic, social, and environmental sustainability, though these aspects have been handled separately to serve various purposes. Social sustainability refers to recognizing the needs of populations and social progress, economic sustainability refers to steady job levels and economic growth, and environmental sustainability refers to the wise use of natural resources and effective environmental preservation [27].

As the costs for energy, water, and other resources continue to grow, hotels are becoming more and more concerned about acting in an affordable, environmentally friendly, and socially responsible manner [7].

However, existing literature indicates that sustainability is not interpreted uniformly among stakeholder groups. Managers prioritize operational efficiency and cost reduction, guests emphasize visible environmental practices and service quality, while local communities focus on environmental protection and socio-cultural preservation. Employees contribute through operational implementation and behavioural engagement. These differences demonstrate that sustainability is a negotiated, stakeholder-dependent concept rather than a standardized operational model [41].

2.2 Environmentally Sustainable Practices

The definition of Environmentally Sustainable Practices in the hotel industry varies and is related to various approaches. Green practices were defined by [28] as "a value-added business strategy that benefits a hospitality operation that engages in environmental protection initiatives."

The three primary categories of environmentally friendly practices are energy management activities, waste management, and water conservation and also green practices are carried out in each area of service operation [42].

Energy conservation is one of the most important primary categories of environmentally friendly practices [43]. It includes energy efficiency through renewable energy (solar, wind), energy-efficient appliances, digital thermostats, Energy Star products, motion sensors, reflective windows, LED lighting, and maximizing natural daylight use rather than artificial lighting [5].

Water conservation is another aspect and it includes Installing water-efficient devices and appliances, implementing towel/bed linen reuse programs, fixing leaks in toilets and baths on a regularly, watering grass and plants early in the morning and late at night to limit evaporation, recycling grey water for grass irrigation, and monitoring water consumption are all water conservation measures adopted by the hotel sector [19].

Third category is waste management. It includes separating hotel wastes by using clearly labelled containers and bins for collecting recyclables, purchasing products containing recycled content, collecting organic kitchen wastes separately for soil composting, purchasing food items and cleaning chemicals in bulk, adopting a donation program (donating food leftovers and linens to charity), and grinding the waste [19], [31]. According to [2], the 5Rs (Refuse, Reduce, Reuse, Recycle, and Restore) are the foundation of an eco-friendly integrated approach to managing hotel garbage.

Beyond these operational classifications, environmental sustainability in hospitality should be understood through a thematic synthesis lens, where implementation is shaped by conflicting stakeholder expectations identified in previous global studies. While hotel management primarily prioritizes cost reduction and operational efficiency when adopting environmental technologies, guests often evaluate sustainability through visible green practices without necessarily accepting higher service costs. In contrast, local communities tend to emphasize long-term environmental protection and reduced ecological disruption, whereas employees are primarily concerned with workload implications and operational feasibility. These differing expectations often create tensions between cost, service quality, and environmental responsibility, influencing the extent to which environmental practices are implemented in hotels [41].

2.3 Socio Cultural Sustainable Practices

Socio-cultural sustainability in hospitality is widely recognized as a multidimensional construct involving community engagement, cultural heritage preservation, and ethical tourism development, extending beyond internal hotel operations [33]. However, recent empirical studies show that its implementation is shaped by competing stakeholder expectations, leading to inconsistent interpretations of what “sustainable hospitality” actually means in practice.

For instance, [33] emphasize that sustainability in hotels integrates environmental, economic, and social dimensions, but note that social outcomes are often treated as secondary to operational performance goals. In contrast, stakeholder-focused research by [41] demonstrates that employees and guests interpret sustainability differently even within the same hotel context, where guests prioritize visible practices (e.g., recycling, eco-labels), while employees emphasize operational and service-based sustainability mechanisms such as resource efficiency and internal systems.

This creates a clear theoretical contradiction between perception-based sustainability and operational sustainability. While guests associate socio-cultural sustainability with outward cultural visibility and service experience, employees focus on internal feasibility and workflow integration. Similarly, [44] argues that CSR initiatives in hospitality are often constrained by financial and operational pressures, meaning management tends to prioritize cost efficiency over deeper community-based engagement. This directly contrasts with community expectations, which emphasize equitable benefit-sharing, cultural preservation, and long-term local empowerment.

A further contradiction is evident when comparing stakeholder perceptions across studies: [41] find that both customers and staff show environmental awareness but differ significantly in priority ranking of sustainability attributes, whereas [33] suggest that sustainability practices are more strongly linked to organizational performance outcomes than to stakeholder alignment. This indicates a gap between performance-driven sustainability models and stakeholder-driven sustainability expectations.

Therefore, socio-cultural sustainability in hospitality is not a unified practice but a contested space of negotiation among stakeholders, where: hotels prioritize brand value and operational efficiency, employees prioritize feasibility and service delivery, guests prioritize visible authenticity and experience, communities prioritize cultural protection and equitable benefit distribution.

2.4 Economical Sustainable Practices

Economic sustainability is a component of corporate sustainability. When consider economic sustainability practices, these are a group of actions that assist the long-term economic development of the area (e.g., determining the hotel's economic contribution to the growth of the destination; employing locals; paying staff above the industry standard; etc.) [33].

According to [45], economic sustainability for hotels refers to continuing to operate profitably while ensuring that both present and future visitors and other stakeholders can take advantage of the hospitality services and tourism experiences [45].

An increase in economic activity has drawn attention to the economic aspect of sustainability. Since the consumption of goods and services has increased societal happiness, well-being, and social welfare for a higher quality of life, this dimension has received the greatest attention. The basic corporate goal of maximizing profits for owners and shareholders has been achieved as a result of investing money in infrastructure, manufacturing, plant, and machinery [27].

2.5 Stakeholder Theory for Sustainability

The stakeholder theory studies the relationship between a company and its stakeholders [17]. This stakeholder theory is a key approach, if not the most frequently used approach in sustainability management research to better understand business environmental and social, as well as economic behaviour [46]. And it is a theory of organizational management and business ethics that addresses morals and values in organizational management in order to preserve societal norms and standards by introducing ethical considerations based on stakeholder obligations and interests [17].

Stakeholder theory has been used by various authors to conceptualize sustainability. Simply put, stakeholder theory is based on the belief that companies should be sensitive to the interests of a broader range of stakeholders, including suppliers, customers, and society at large, and that by doing so, they will be more successful in the long run [47]. Stakeholder concepts are highly relevant and useful to thinking about sustainability [48].

2.6 Hospitality Stakeholders

The operations of modern firms and enterprises have a greater impact on their stakeholders than ever before. As a result, many scholars are studying the relationship between organizations and its impacts on stakeholders [49]. Stakeholders are groups or individuals who have a material impact on or are impacted by a company's actions [17]. Companies strategically consider the interests and requirements of individuals and groups who may be affected by or have an impact on their actions. Internal and external stakeholders have been identified as stakeholders or as primary and secondary stakeholders [11]. Along with governmental and educational institutions, visitors, suppliers, local industry bodies, professional associations, the community at large, special interest groups, analysts, and the media are likely to be regarded as external stakeholders. Internal stakeholders in global chains include employees, stakeholders, and other corporate participants [50].

2.7 Specific Sustainability Practices

Many hotels to increasingly implement environmentally friendly practices that are more such as Utilization of Solar Panels, installing energy-efficient appliances and implementing renewable energy, the use of plastic should be completely avoided. The utilization of information and communication technologies stands as a practice capable of significantly mitigating energy demands. By implementing these technologies, a substantial reduction in energy consumption becomes achievable, reflecting a proactive approach to resource conservation and sustainability [1].

3.0 Research Methodology

3.1 Research Philosophy

The main focus of this research is to identify stakeholder perspective on sustainability practices of star class hotels in Dambulla, Sri Lanka. To achieve the research objectives, this research developed based on Interpretivism philosophy.

3.2 Research Approach

This research study used qualitative research method to identify the stakeholder perspective on sustainability practices of star class hotels in Dambulla, Sri Lanka. This study is based on inductive approach.

3.3 Methodological Approach

To identify stakeholder’s perspective of sustainable practices, this research requested wide-ranging information and experiences from stakeholders in the hotel sector. Furthermore, anyhow the difficulty of quantifying, it is necessary to obtain well defined responses from stakeholders. As a result, qualitative research was the most appropriate strategy for this study.

3.4 Population

The population of this study consist of a diverse group of stakeholders associated with the star-class hotels in Dambulla. This included hotel managers, employees, guests, and the local community members who interact with or are affected by these hotels.

3.5 Sample

In qualitative research, the sample size cannot always be determined precisely before data collection because participant selection continues until data saturation is achieved. Therefore, this study employed purposive sampling to obtain rich and relevant information from key stakeholders. A total of nine (9) participants were interviewed, representing different stakeholder perspectives, experiences, and factors related to the study context.

The sample size was considered sufficient because data saturation was achieved after the ninth interview. Data saturation occurs when no new themes, ideas, or insights emerge from additional interviews. During the later stages of data collection, participants provided repetitive responses and similar viewpoints regarding stakeholder experiences and sustainable practices, indicating that further interviews were unlikely to generate substantially new information. Therefore, the nine interviews provided adequate depth and comprehensive understanding necessary for the study.

3.6 Sampling Technique

For this study, the participants have selected using purposive sampling. The purposive sampling method involved purposefully selecting stakeholders directly engaged with sustainability within these hotels, such as managers, employees, local community, and guests.

3.7 Data Collection

The data collection method chosen for this qualitative research involved conducting interviews with stakeholders. For this study, the researcher used semi - structured interviews and telephone calls.

3.8 Data Analysis Technique

Content analysis used to analyse data to achieve the objectives of this study.

3.9 Reliability and Validity

To ensure the trustworthiness and credibility of the findings, several strategies were applied throughout the research process. Member checking was conducted by clarifying participants’ responses during the interviews to ensure accurate interpretation of their views. In addition, peer debriefing was carried out through discussions with academic supervisors to minimize researcher bias and improve analytical accuracy. Furthermore, an audit trail was maintained by keeping records of interview transcripts, coding procedures, and data analysis decisions to enhance the dependability and transparency of the study.

4.0 Data Analysis & Discussion

4.1 Sample and Data Collection

A qualitative approach is used in this study by the researcher. Thus, the data was collected via the interviews from the respondents. The research population of this study is stakeholders of hotels in Dambulla and the sample included stakeholder’s hotel managers, employees, guests, and the local community members. The data was collected from them using face-to-face interviews and telephone interviews. 09 interviews were conducted to collect data from the respondents and those interviews were recorded. The data was analysed by using the contend analysis.

4.2 Demographic Information Profile of the Respondents

4.2 Coding Summary

The coding is the process of labelling and organizing qualitative data to identify different themes and the relationship between them. When coding respondent’s feedback, labels were assigned to words or phrases that present important themes in each response. The audio recorded interview material was manually transcribed by the researcher. First, audio recordings were transcribed, then the transcription was coded, the coded data was then categorized, and key words were then chosen based on the transcription. According to the researcher’s data collection, a detailed analysis was not necessary; instead, a content analysis method is utilized to analysis the data.

5.0 Analysis and Discussion

5.1 Sustainability Practices

5.1.1 Environmental Sustainability Practices

5.1.1 a) Waste Management

Waste management is the systematic handling of garbage and discarded materials. It involves collecting, sorting, recycling, and disposing of waste to minimize environmental impact and promote sustainability. According to [19] The hotel sector is a big contributor to greenhouse gas emissions because it generates a large amount of wet waste (e.g., garden waste, food waste, and cooking oil waste) and dry waste (e.g., cardboard, plastics, cans/metal, linen, paper, and other junk) that is disposed of in landfills. As a result, hotel operators began implementing the following practices to reduce hotel waste: separating hotel wastes by using clearly labelled containers and coloured bins for collecting recyclables, purchasing products containing recycled content, collecting organic kitchen wastes separately for soil composting, purchasing food items and cleaning chemicals in bulk, adopting a donation program (donating food leftovers and linens to charity), and grinding the waste.

“The hotel implements a garbage separation system, actively sorting dry waste for sale of recyclables, while directing wet waste to feed pigs, ensuring an effective and sustainable waste management process. Compost systems are in place, allowing the hotel to produce compost from organic waste” (RS 01)

“Hotels have implemented a comprehensive waste management system that includes proper garbage disposal, reuse and recycling programs for paper, plastic, glass, and other recyclable materials.” (RS 02)

“One environmental sustainability practices are garbage separation and all the staff members being educated on proper waste disposal methods. The hotels engage in composting by collecting leaves and other organic materials, which are then utilized in the hotel's gardens” (RS 03)

“The adoption of garbage separation systems furthers their waste reduction efforts, promoting recycling and responsible disposal practices. And also hotels have implemented composting initiatives, effectively managing organic waste to reduce their ecological footprint” (RS 04)

When consider about waste management, most of respondents have stated that currently they are doing garbage separation, composting as waste management. An important characteristic is the emphasis on garbage separation, which demonstrates a methodical approach to dealing with various sorts of waste.

Furthermore, as previously said, the entire waste management system goes beyond garbage separation to include proper disposal, reuse, and recycling programs for a variety of materials such as paper, plastic, and glass. This multimodal strategy demonstrates the hotels' commitment to reducing their environmental effect and encouraging proper waste management practices.

The adoption of composting practices is another positive aspect, showcasing a commitment to managing organic waste effectively. Compost production, the hotels not only minimize their ecological footprint but also create a valuable resource for enhancing their on-site gardens.

5.1.1 b) Energy Conservation

Energy conservation is purposeful reduction in energy use, optimizing efficiency to minimize consumption and environmental impact, fostering sustainable practices for the future. According to [25] these measures include implementing renewable energy programs such as solar, installing energy-efficient appliances and equipment, controlling guestroom energy consumption, installing reflective glass or triple-glazed windows, using energy-efficient light bulbs (LED), and relying on daylight rather than artificial lighting.

“Incorporating solar panels to collect renewable energy, lowering reliance on traditional power sources, and reducing hotel operations' ecological imprint. Implementing a switch-off policy to ensure staff members are well-educated” (RS 01)

“Panels, and have standard "switch off" policy for lights and electronics when rooms are unoccupied” (RS 02)

“Most of the hotels have embraced sustainable energy solutions, including large glass windows, solar panels, and Availability of electric buggy carts for transportation to effectively minimizing electricity consumption” (RS 03)

“The incorporation of integrated solar panels allows hotels to harness renewable energy sources, promoting sustainability” (RS 08)

Hotels promote sustainability by adapting solar panels, energy-efficient equipment, switch-off policies, natural lighting, and electric buggy transport, reducing electricity consumption and promoting renewable energy use in hotel operations.

5.1.1 c) Water Conservation

Water conservation refers to the careful and responsible management of water resources to ensure their sustainable use and preservation. When consider about previous studies, have mentioned some water conservation practices. Installing water-efficient devices and appliances (e.g., using low-flow toilets and showerheads and installing infrared-activated faucets), implementing towel/bed linen reuse programs, fixing leaks in toilets and baths on a regularly, recycling grey water (water from washing vegetables and fruits), and monitoring water consumption are all water conservation measures adopted by the hotel sector [19], [36]. The following are some of the respondents’ statements.

“Implementing a wastewater and sewage recycling system to repurpose water for the hotel's garden and vehicle washing, contributing to water conservation efforts. Other thing is introducing "tent cards" in hotel rooms to inform guests about the environmental impact of daily linen changes, Hotels have used wood-fired boilers instead of diesel, reducing reliance on traditional fuels and providing hot water sustainably and actively participating in cleaning programs and plantation initiatives near reservoirs” (RS 01)

“Hotels are recycling their water Collaborative cleaning programs are organized and Information boards have been strategically placed to raise awareness” (RS 03)

“To ensure water conservation, hotels have installed water purification systems. Regular cleaning programs are organized to maintain cleanliness” (RS 05)

“Water conservation is a priority for many hotels, implementing practices like low-flow fixtures and water purification system. Concurrently, actively promoting reuse of linen and towels” (RS 06)

Most of the respondents have emphasized a strong commitment towards sustainable water conservation. Most of the hotels have taken significant steps to repurpose water through the implementation of wastewater and sewage recycling systems, directing treated water to the hotel's garden and for vehicle washing. This approach not only contributes to water conservation but also demonstrates a commitment to utilizing resources efficiently. Moreover, the introduction of "tent cards" in hotel rooms serves as an effective means to communicate the environmental impact of daily linen changes to guests. The cards encourage guests to actively participate in water conservation by opting for linen reuse. Concurrently, the adoption of wood-fired boilers, as opposed to diesel, showcases a proactive approach to reducing reliance on traditional fuels, aligning with sustainability goals. In addition, Hotels adopt comprehensive water conservation through recycling, purification, cleaning programs, reservoir plantations, awareness initiatives, and operational measures promoting sustainable water management.

5.2 Socio-Cultural Sustainability Practices

5.2.1 Community Engagement

Community engagement is a collaborative process in which individuals or organizations interact with members of a community in order to create relationships, address concerns, and collaborate for mutual benefit and shared goals. These practices include, among other things, working with the community, respect for culture and preservation of heritage, choosing socially responsible suppliers, and encouraging customer involvement in charitable causes [33]. The following are some of the respondents’ statements.

“Hotels are engaged in CSR projects, demonstrating a commitment to giving back to the local community and supporting initiatives that address societal needs, Hotels have done women empowerment. And also have obtained wood, other essential items such as rice, coconuts, banana leaves, lotus leaves, fruits, vegetables, and meat locally from locals” (RS 01)

“Hotels often collaborate with local communities to understand their needs and concerns and do CSR projects, depending on the goods, have selected suppliers from the region and if the locals organize any event in the region, hotels sponsor for that” (RS 02)

“Hotels collaborate with local communities on projects that contribute to their well-being. This can include sponsoring local events, support schools, and participating in community development programs” (RS 09)

Based on the respondents' statements, hotels actively engage in community development through CSR initiatives, including women empowerment, local sourcing of goods, event sponsorship, and supporting schools, demonstrating social responsibility, promoting gender inclusivity, and contributing to the region’s economic, social, and educational well-being.

5.3 Employee Welfare

Employee welfare encompasses benefits, services, and working conditions provided by employers to enhance the well-being and satisfaction of their workforce, promoting a positive work environment. The following are some of the respondents’ statements.

“If considering staff welfare, hotels think about it more. They are investing in employee training and development programs, providing accommodation, meals, and uniforms, creating a positive working environment, and grievances handling” (RS 02)

“Provide staff welfare including staff uniform, accommodation, meals, and check staff health. Furthermore, training programs are organized to enhance the skills and knowledge of the staff, contributing to their professional growth and job satisfaction” (RS 03)

“One of another social sustainable practices are providing welfare facilities” (RS 04)

The comments emphasize, hotels give prioritize for employee well-being through providing training and development, and providing accommodation, meals, and uniforms, fostering skills, satisfaction, and a supportive work environment. Emphasizing grievance handling and health checks highlights commitment to employee welfare, dedication to staff well-being and supporting broader social sustainability goals.

5.4 Cultural Preservation

Cultural preservation involves purposeful actions to safeguard and maintain a community's heritage. According to López-Gamero et al., (2023), one of socio-cultural sustainability practices is respect for culture and preservation of heritage.

“Cultural heritage is a major priority, with hotels actively promoting and preserving the rich cultural heritage of the region. Guests are educated on the necessity of preserving cultural assets for future generations, encouraging a sense of responsibility and awareness” (RS 03)

“Hotels have engaged with cleaning programs near to the cultural sites and also organizing cultural events, workshops, and performances that highlight local traditions, arts, and crafts, giving visitors an immersive experience” (RS 06)

“Recognizing the cultural significance of the area, particularly with its historical sites such as Kaludiya Pokuna, the hotels organize cleaning programs to maintain the cleanliness and integrity of these cultural sites” (RS 08)

Based on the responses, hotels' defined commitment to cultural preservation practices in the region demonstrates a careful approach to protecting and promoting cultural heritage. Hotels contribute to cultural sustainability by encouraging heritage awareness, organizing cultural events, and supporting regional artists. Educational initiatives and programs for site-cleaning, protect historical places while improving visitor experiences. These practices strengthen community participation, preserve traditions, and encourage responsible tourism, highlighting the role of hotels in sustaining the cultural identity of the destination.

5.5 Economic Sustainability Practices

5.5.1 Local Economic Contribution

When considering local economic contribution, it means the direct and indirect effects of economic activities within a specific geographic area or community. Hotels contribute by generating income through tourism, providing employment opportunities, and supporting local businesses, thus playing an important role in the economic and sustainability of the community. Some of the respondents mentioned how hotel contribute to local economic. The following are some of the respondents’ statements about that.

“Hotels contribute to the local economy by providing job opportunities to 55% of their workforce locally, establishing partnerships with local suppliers” (RS 01)

“Getting goods and services from local suppliers, and providing employment opportunities for local residents is economic practices in hotels” (RS 04)

“Over 50% of job opportunities are provided to locals, promoting employment and economic growth within the community. They actively source goods from local suppliers, supporting and promoting the economic activities of nearby businesses” (RS 05)

The Respondents highlight; the hotel play an important role in supporting local economy by job opportunities for locals and partnerships with local suppliers. By offering significant job opportunities to local residents and supporting nearby businesses, hotels encourage community engagement and economic resilience. These sustainable practices highlight social responsibility while promoting inclusive growth, sustainable development, and overall prosperity within the local community.

5.6 Cost Reduction

Cost reduction is a strategic measures and practices implemented to minimize expenses while maintaining or improving the quality of services, ultimately enhancing operational efficiency and profitability. Hotels achieve cost reduction by prioritizing energy efficiency, waste management, water conservation, local sourcing, bulk purchasing, labour optimization, and technology adoption. These strategic practices not only enhance operational efficiency but also effectively control expenses, contributing to overall financial sustainability and improved profitability.

“Economic sustainability practices are implementing energy-efficient technologies and practices, such as LED lighting, sourcing products and services locally, implementing water-saving measures, adopting water reuse and recycling systems, implementing waste reduction and recycling programs” (RS 04)

“Hotels adopt eco-friendly measures such as the reuse of unused guests' amenities, linen, and the implementation of an electronic key card system. Additionally, the use of reusable amenity bottles further emphasizes their commitment to economic sustainability practices” (RS 05)

“Implementing eco-friendly practices like repurposing unused guest amenities and linens and prioritizing local sourcing some of economic sustainable practices in hotels” (RS 06)

When considering respondents’ statements, stated hotels' commitment to economic sustainability through various environmentally responsible practices. Such as adoption of energy-efficient technologies, water conservation systems, and waste reduction programs minimizes environmental impact while improving operational efficiency. Supporting local suppliers further strengthens regional businesses and reduces transportation effects. These practices highlight how hotels balance environmental responsibility with economic sustainability and long-term operational resilience.

6.0 Specific Sustainability Improvements

6.1 Environmental Practices Enhancement

6.1.1 Specific Green Initiatives

Most respondents emphasized the importance of expanding environmentally sustainable practices in hotels within the Dambulla region. Respondents particularly highlighted the use of solar energy, smart technologies, eco-friendly alternatives to plastic, and recycling initiatives as key environmental enhancement strategies. For instance, RS 02 explained that due to Dambulla’s predominantly dry climate, hotels can maximize the use of solar energy for most months of the year. Similarly, RS 03 suggested expanding solar panel systems and implementing smart key-card technologies to reduce unnecessary electricity consumption. RS 04 and RS 06 further emphasized the importance of eliminating single-use plastics and adopting environmentally friendly alternatives.

These findings strongly align with previous literature on sustainable hospitality practices. Studies such as [25] identified renewable energy usage and waste reduction as essential environmental sustainability strategies within the hotel industry. The current findings suggest that hotels in Dambulla are increasingly recognizing the importance of renewable energy adoption, particularly solar energy, due to the region’s favourable climatic conditions. Compared with international sustainable hospitality trends discussed by [25], Dambulla hotels appear to be progressing toward environmentally responsible operations, although the implementation level still varies among establishments.

Furthermore, the emphasis on eliminating single-use plastics and promoting recycling practices supports findings from more recent sustainability studies, which argue that environmentally conscious tourists increasingly expect hotels to adopt visible eco-friendly practices. The implementation of smart technologies, such as automated lighting systems, also reflects global trends in energy-efficient hotel management.

However, a divergence can also be observed between sustainability intentions and actual implementation. While hotel representatives emphasized their commitment to environmental sustainability, some respondents indirectly suggested that certain practices are still at a developmental stage rather than being fully operational across all hotels. This indicates that although awareness regarding environmental sustainability is increasing, practical and financial limitations may hinder full-scale implementation. Therefore, the findings demonstrate that Dambulla hotels are moving toward international sustainability standards but still require stronger institutional commitment and consistent operational execution.

7.0 Socio Cultural Practices Enhancement

7.1 Community Engagement Enhancements

Community engagement enhancement initiatives focus on strengthening relationships, collaboration, and active participation between hotels and the local community. Many respondents highlighted the importance of increasing local involvement, preserving cultural heritage, and creating employment opportunities as part of socio-cultural sustainability practices. For example, RS 03 explained that hotels can reduce labour migration by providing skill development programs and employment opportunities for local residents. Similarly, RS 05 emphasized that hotels can preserve Dambulla’s cultural identity by organizing cultural events, exhibitions, and workshops while collaborating with local artists and artisans. RS 06 further highlighted the importance of increasing community participation in decision-making processes related to sustainability initiatives.

Most respondents viewed hotels not only as accommodation providers but also as organizations capable of contributing to the social and cultural development of the local community. Training programs and employment opportunities were identified as ways to strengthen the local economy and reduce overseas migration. In addition, cultural events and collaborations with local artists were considered effective methods for preserving and promoting the unique cultural heritage of Dambulla.

These findings are consistent with previous literature on socio-cultural sustainability in hospitality. [33] explain that socio-cultural sustainability extends beyond environmental management and includes community engagement, cultural preservation, and ethical tourism development. The findings of this study similarly demonstrate the importance of integrating local communities into hotel sustainability practices through employment generation, cultural promotion, and participatory decision-making.

The findings also reflect stakeholder differences discussed in earlier studies. [41] state that hotels often focus on operational performance and business sustainability, whereas local communities prioritize cultural preservation and equitable benefit-sharing. This difference is evident in the present study, as respondents emphasized the need for stronger community participation, suggesting that current involvement may still be limited. Therefore, although hotels in Dambulla show growing awareness of socio-cultural sustainability, the implementation of these practices remains at a developing stage and requires stronger collaboration with local communities to achieve long-term sustainability goals.

8.0 Economic Practices Enhancement

8.1 Support for Local Businesses

Support for local businesses involves intentionally choosing and promoting goods or services from nearby establishments to enhance the local economy and community well-being. The following are some of the respondents’ statements about that.

“Hotels should increase their support for local businesses” (RS 09)

The responses highlight a promising economic enhancement strategy in hotel region, addressing challenges faced by skilled artisans in marketing handmade products. Proposing platforms within hotels for showcasing and selling local handicrafts establishes a mutually beneficial relationship between the hospitality industry and local entrepreneurship. This aligns with the trend of sustainable tourism, offering exposure to artisans and enhancing authentic travel experiences. Incorporating training programs tackles both craft skills and business acumen, providing a research opportunity to assess the impact on local livelihoods, economic resilience, and community socio-cultural dynamics. Exploring scalability offers insights into replicable models for sustainable economic development through hotel-local business partnerships.

9.0 Conclusion

In conclusion, the research on stakeholder perspectives regarding sustainability practices of star-class hotels in Dambulla demonstrates that hotels are increasingly committed to environmental, social, and economic sustainability practices. Sustainable initiatives such as waste management, energy conservation, water conservation, cultural preservation, and support for local suppliers and employment opportunities are actively implemented within the selected hotels. These practices contribute positively to environmental protection, community development, and the long-term sustainability of tourism in the region. However, stakeholders also emphasized several areas requiring further improvement, including the increased use of solar energy, adoption of smart technologies, improvement of environmentally friendly waste management systems, and stronger support for regional entrepreneurship.

From a theoretical perspective, this study contributes to Stakeholder Theory by highlighting that stakeholder expectations toward sustainability are diverse and influenced by the heritage tourism context of Dambulla. Managers, employees, local communities, and suppliers demonstrated different sustainability priorities and expectations. The findings particularly emphasize the importance of cultural preservation and local economic participation as significant stakeholder concerns within a heritage destination. Therefore, the study extends Stakeholder Theory by showing the importance of destination-specific stakeholder engagement in sustainable hospitality management.

In terms of practical and policy implications, the findings suggest that hotels should move beyond general sustainability activities and adopt more collaborative frameworks. For example, hotels can establish “Hotel–Community Artisan Cooperatives” to support local craftsmen, cultural performers, and small-scale entrepreneurs while promoting authentic tourism experiences. Furthermore, hotel management and policymakers should encourage renewable energy investments, introduce smart resource management technologies, and strengthen environmentally responsible waste management practices through public–private partnerships and training programs.

Despite its contributions, the study has limitations due to its small qualitative sample size and focus on selected star-class hotels in Dambulla, limiting wider generalization. Future studies should therefore conduct quantitative or mixed-method research with larger samples across multiple destinations and apply longitudinal approaches to examine changes in stakeholder perspectives and sustainability practices over time.

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Article History

Submitted: 2026-04-22
Reviewed: 2026-05-14
Accepted: 2026-05-22

Author Profile

P.M.T.D. Wikumsara is a Lecturer at Sabaragamuwa University of Sri Lanka. Her academic and research interests are focused on Tourism and Hospitality Management, with particular emphasis on sustainable tourism and sustainability practices within the hospitality industry. Her research primarily explores environmental, socio-cultural, and economic sustainability in Sri Lanka’s hospitality sector. She is dedicated to advancing academic research and contributing to the sustainable development of the tourism and hotel industry through evidence-based and stakeholder-oriented studies.

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