This study investigates the transition barriers to the Circular Economy (CE) for travel agencies in Egypt. Drawing on a comprehensive literature review, the study develops a conceptual framework encompassing external and internal barriers to CE implementation. The research employs a quantitative approach with structured questionnaires distributed among managerial-level employees in Egyptian Travel Agencies. The study utilized Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4 for analysis.
The study reveals that a significant majority (91.69%) of Egyptian travel agencies do not currently implement CE practices, with a prevalent representation of small and medium-sized enterprises. The analysis confirms that external and internal barriers significantly impact CE implementation. Notably, organization size moderates the relationship between external barriers and CE transition, while it shows no significant moderation for internal barriers.
This study pioneers a tested model for measuring CE barriers in the tourism industry of developing countries, offering original insights crucial for academia, practitioners, and policymakers. With a unique focus on Egypt, an underexplored region, it contributes to micro-level CE literature and sets the stage for similar studies. The introduction of the moderating effect of organizational size underscores the nuanced impact of organizational characteristics on overcoming challenges during the CE transition.