Subsidizing energy use in hotels and other hospitality facilities with a view to making tourism less expensive: A policy approach

In the context of making tourism affordable, this paper critically considers energy subsidization in hotels, as per a proposition under consideration. The primary purpose of this review is to scrutinize such policy approaches from theoretical, environmental, and practical perspectives. Through a qualitative critical review methodology, the paper synthesizes empirical literature, government policy briefs, and international development agency reports. The results indicate that energy subsidy operators may reduce costs of operation and transport these savings into less expensive services for tourists; where these incentives are poorly structured, paradoxically, they undermine environmental integrity and market efficiency. The review draws from institutional theory to explain how government incentives can encourage organizations toward certain behaviors; sustainable development theory explores the environmental implications; and policy diffusion theory sheds light on the diffusion of these subsidies across one jurisdiction to another. The analysis canvases a wide spectrum of subsidies, ranging from incentives on renewable energy to those that support smart technology deployment, and evaluates them from an environmental benefit-versus-risk perspective. In particular, the review highlights that, although on paper most subsidies seem to have an environmentally beneficial agenda, they are usually elusive or grossly misused for greenwashing or corporate capture by giant hotel chains. The paper's contribution is threefold: Theoretically, it integrates institutional and sustainability perspectives into the context of hospitality energy governance. On the policy front, it fills the gap with a matrix of practical reform options that link cost savings with climate responsibility. On the practical front, it offers a performance-based roadmap for policymakers and hospitality managers to align financial support. Ultimately, the paper calls for a recalibration of subsidy options to shield equity, transparency, the ecosystem, and financial sustainability in the long run.