Mr. Rifai

Eco-Friendly Practices

Hotel Energy Solutions: How Greening Your Hotel Draws Attention

By Taleb Rifai, Secretary General, World Tourism Organization (UNWTO)

That a global shift to a resource efficient economy is urgently needed is no longer news. Greenhouse gases have reached record levels, natural capital is running dangerously low and the world faces of multitude of environmental challenges. The international community, led by the United Nations, is responding to these threats, backing an alternative growth path in which increased wealth does not lead to growing environmental risks: a Green Economy.

In a world moving towards a new model of economic growth, green awareness and green management within businesses is no longer an option, but a condition for their very survival and future success. The hotel sector is well aware of this reality.

Hotels are one of tourism’s largest drivers of employment and economic revenue. Hundreds of millions of people are employed in the industry around the world, in a wide range of positions and levels, contributing significantly to local economic growth and development. Nevertheless, the hotel sector is not just jobs-intensive, but energy-intensive. International tourism is responsible for 5% of global CO2 emissions, of which hotels and other accommodation units account for one fifth.

Hotel Energy Solutions

In response to the challenge of climate change, an innovative project, Hotel Energy Solutions (HES), is providing an online mitigation toolkit to help hotels reduce their carbon footprint while increasing business profits.

The UNWTO-initiated project, co-funded by the European Agency for Competitiveness and Innovation and implemented in partnership with UNEP, the International Hotel & Restaurant Association (IH&RA), the European Renewable Energy Council (EREC) and the French Environment and Energy Management Agency (ADEME), aims to increase energy efficiency in European small and medium hotels by 20% and their use of renewable energies by 10%, demonstrating that economic growth and sustainability can, and should, go hand in hand. Its principal asset is an easy-to-use software – the Hotel Energy Solutions E-toolkit – which allows hoteliers to assess current energy use and decide on the most advantageous technology investment solutions.

The E-toolkit consists of a questionnaire which gathers precise data on the hotel’s energy consumption. Based on this questionnaire, the E-toolkit provides the hoteliers with a report showing how much energy is being used per square meter, per year, per night and per room, and how it compares with other properties of the same type, and most importantly the scope of possible savings. It further recommends appropriate energy saving technologies and actions, and sets out what kind of savings on operating expenses hotels can expect from green investments with the Return on Investments Calculator (ROI). The toolkit is adaptable to all hotel types, from rural bed and breakfasts to chain establishments.

Testing of the E-toolkit finalized this August in a number of pilot destinations around Europe: Haute-Savoie, France, Palma de Mallorca, Spain, Bonn, Germany, and Strandja, Bulgaria. Feedback received from hoteliers was extremely positive. Indeed, in Haute-Savoie, the Regional Bank has committed to use the tool as a decision making instrument for allocating loans for investing in technologies recommended by HES.

The E-toolkit was launched in August and will now be made available free charge to all accommodation units registered with the project. While designed for European Union Member States in line with EU Energy Policies, the project is expected to be rolled-out globally over the coming years.

A Green Opportunity for Hotels

Steps towards more environmentally-friendly business strategies, such as those suggested by Hotel Energy Solutions, are not only the right moves ethically, they also make clear business sense. Companies are increasingly aware that green initiatives give them a competitive edge; build trust and brand loyalty; help them to retain customers, as well as recruit, keep and motivate employees; and result in reduced overall expenditure.

The recent United Nations Green Economy Report – a study on how to spur a green transformation while ensuring continued economic growth – clearly demonstrates that tourist choices are increasingly influenced by sustainability concerns.

The tourism chapter of the report, produced by UNWTO in partnership with UNEP (United Nations Environment Programme), shows that more than a third of travellers favour environmentally-friendly tourism and are willing to pay for related experiences. The report states that “ecotourism, nature, heritage, cultural, and ‘soft adventure’ tourism are taking the lead and are predicted to grow rapidly over the next two decades”. It estimates that “global spending on ecotourism is increasing about six times the industry-wide rate of growth”.

Numerous surveys indicate these changes in consumer demand. In 2007, for example, TripAdvisor research found that 38 per cent of travellers surveyed said that environmentally-friendly tourism was a consideration when travelling, 38 per cent had stayed at an environmentally-friendly hotel and 9 per cent specifically sought such hotels, while 34 per cent were willing to pay more to stay in environmentally-friendly hotels. A 2005 study by the Center on Ecotourism and Sustainable Development (CEDS) and the International Ecotourism Society (TIES) found that a majority of international tourists are interested in staying in hotels that are committed to protecting the local environment, and increasingly view local environmental and social stewardship as a responsibility of the businesses they support.

Hotels are increasingly aware of this shift in consumer demand and more and more, are investing in business models which preserve the environment, respect local communities and contribute to socio-economic development.

In 2010, UNWTO undertook a study of Corporate Social Responsibility practices among 20 of the leading international tourism companies, including major hotel chains. The study showed that companies are particularly committed to projects related to the conservation of wildlife and ecosystems; the use of new technologies related to energy, water and recycling; education; and the development of local supply chains. Sol Melía, for example, has been named the world’s first ‘Biosphere Hotel Company’, meeting strict environmental, social and cultural requirements. Its hotels use eco-efficient lighting, water and energy savings systems and the company has even reached an agreement with the World Wildlife Fund to protect land acquired in Brazil.

The survey also served to highlight the challenges facing small and medium sized hotels, which may be more challenged to integrate CSR in their strategies and operations. Nevertheless, the impact of CSR in smaller companies can actually be even greater, since they are often closer to the communities they serve.

Energy efficiency is one of the most cost effective ways for hotels to reduce their carbon emissions, position themselves at the forefront of Corporate Social Responsibility practices, meet changing consumer expectations and guarantee their place at the heart of the Green Economy. Hotel Energy Solutions is Europe’s largest hotel energy initiative and offers an innovative means to help hotels reduce their operational costs, increase competitiveness and sustainability and assist in mitigating the sector’s CO2 emissions.

Relevant links

Hotel Energy Solutions: http://www.hotelenergysolutions.net/
Green Economy Report: http://www.unep.org/greeneconomy/

Taleb Rifai’s background combines solid political experience and technical knowledge in the field of tourism, as well as experience in the work and functioning of International Organizations. His background also provides him with extensive economic, business and academic experience. He was elected as Secretary-General of the World Tourism Organization (UNWTO) at the General Assembly, Astana, Kazakhstan, in October 2009 and begun his four-year term on 1 January 2010. He assumed the functions of Secretary-General ad interim of the World Tourism Organization from 1 March 2009 and served as Deputy Secretary-General from February 2006 to February 2009. Mr. Rifai can be contacted at 34-91-5679-324 or trafai@unwto.org Extended Bio...

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