Rebranding Bali’s Hospitality Industry Through Green Marketing: Can Brand Awareness Strengthen Brand Image?

Abstract

Bali’s hospitality industry is facing increasing tension between rapid tourism growth and mounting environmental pressure, which may weaken the destination’s sustainable positioning. In this context, green marketing plays an important strategic role by integrating environmental considerations into product, price, place, and promotion. When sustainability signals are visible, credible, and consistent, green marketing can support hospitality rebranding while reducing the risk of greenwashing perceptions. This study examines the effect of green marketing on brand awareness and brand image, and tests the mediating role of brand awareness through the lens of Signaling Theory, where green marketing functions as the signal, brand awareness reflects signal reception, and brand image represents the cognitive outcome. A quantitative survey was conducted with 144 guests who had stayed between February 2025 and January 2026 at Ini Vie Hospitality villas or resorts in Bali holding Eco Climate Badge Gold or Silver certification from Eco Tourism Bali. The data were analyzed using PLS-SEM. The findings reveal that green marketing has a positive and significant effect on brand awareness (β = 0.764, p < 0.001) and brand image (β = 0.520, p < 0.001), while brand awareness also positively influences brand image (β = 0.411, p < 0.001). In addition, brand awareness significantly mediates the relationship between green marketing and brand image. These findings show that credible and verifiable sustainability signals can strengthen brand image through stronger brand awareness, while also offering practical guidance for hospitality managers in aligning environmental practices with consistent communication across guest touchpoints.