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Sustainability certification and the hotel bottom line

CB Ramkumar (1)
sustainability-certification-and-the-hotel-bottom-line

India’s hospitality industry is sleepwalking through a sustainability crisis, overlooking a globally recognised system that could reduce costs, improve visibility and strengthen credibility. CB Ramkumar, Vice Chair, Global Sustainable Tourism Council (GSTC), argues that the commercial gains from sustainability certification far outweigh the investment required.

Guest column by CB Ramkumar

Hotels globally are accelerating the adoption of recognised sustainability standards, but India continues to lag despite clear business advantages. Ramkumar explains why GSTC certification matters, how it differs from other sustainability labels and why responsible practices are directly linked to stronger hotel profitability.

A global standard backed by the UN

Ramkumar underscores that GSTC is the world’s only sustainable tourism standard-setting body founded by the United Nations. Established in 2007 by UNEP, UNWTO, the UN Foundation and the Rainforest Alliance, GSTC was created to provide a universal framework for sustainable tourism.

Unlike labels such as Green Key, Green Globe or EarthCheck, GSTC is not itself a certification body. Instead, it accredits independent certification agencies that must follow stringent assessment protocols.

“Certification is done by certification bodies. Our role is to accredit those in the certification business or destinations according to the GSTC criteria. This ensures credibility and eliminates greenwashing,” Ramkumar says.

Why sustainability certification makes business sense

Ramkumar challenges the perception among Indian hotels that sustainability is an expensive or emotional exercise. He stresses that sustainability delivers measurable financial returns.

“Sustainability makes business sense and the return on investment far outweighs the cost of certification,” he asserts.

Lower operating costs

Hotels implementing GSTC criteria consistently report reductions in operating expenses.

“Even a one per cent reduction in operational costs goes directly to the bottom line,” Ramkumar notes.

Stronger visibility and higher occupancy

Global online travel platforms, including Booking.com, Agoda, MakeMyTrip, TUI, EaseMyTrip, American Express Global Travel and Traveloka are GSTC members. Certified hotels are regularly shared with these platforms.

“Their algorithms prioritise GSTC-certified hotels in search results. This boosts visibility and increases booking potential,” he explains.

Guests value verified sustainability

Travellers increasingly demand independently verified sustainability rather than marketing claims.

“If a consumer sees GSTC certification, they know the hotel has been independently audited. Many are willing to pay more,” Ramkumar notes. Certified hotels also benefit from stronger repeat business and referrals.

Mindset, not cost, holds India back

Despite strong demand and rising room revenues, India has among the lowest numbers of GSTC-certified hotels globally. There are currently only six GSTC-certified hotels in India, compared to more than 2,000 worldwide.

Ramkumar attributes this gap to complacency and reliance on unverified sustainability claims.

“Hotels ask — why bother? We are doing well, we are winning awards, and sustainability feels optional. But awards are not audits. Certification shows courage; it means you are willing to be independently verified,” he says.

In contrast, regions such as Europe and Southeast Asia are witnessing strong voluntary adoption of GSTC standards, even in the absence of government mandates.

Sustainability is a continuous process

GSTC certification must be renewed every two or three years, depending on the size and location of the property.

“Sustainability is a journey, not a checkbox,” Ramkumar emphasises. “As technologies evolve, hotels must continuously improve their practices.”

He adds that GSTC certification does not operate on tiered levels. “There are no bronze, silver or gold categories. Hotels must meet all 42 criteria, which is what gives the certification its value,” he says.

(The views expressed in this article are those of the author and do not necessarily reflect the views or editorial stance of the publication.)

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