How will Hotels Respond to the Looming Water Crisis?

By Deborah Popely Assistant Professor, School of Hospitality Management , Kendall College | April 30, 2017

The World Economic Forum identified water scarcity as among the top five global business risks in the next ten years. Global demand for water is expected to exceed available supply by 2040, driven by population growth, economic development, and over-exploitation of groundwater reservoirs.( 1 ) Water is a critical resource for the tourism industry and water conservation is considered a key management issue for the tourism industry.( 2 ) At present, tourism accounts for less than one percent of total global water consumption; however, at the regional level tourism can place significant stress on water supplies and even compete with local demand, particularly at peak season.( 3 )

Tourism can also place stress on wastewater treatment capacity, potentially affecting local water quality. Water challenges are increasing in tourism destinations in the United States, Australia, Central America, Europe, the Middle East, and China. According to the World Tourism Organization, By 2020, tourism’s contribution to water use is likely to increase with 1 ) increased numbers of tourists, 2 ) higher hotel standards, and 3 ) and increased water-intensity of tourism activities. This could produce economic and social tensions that could sour the relationship between hotels and other community stakeholders in some locations.( 4 ) It is imperative that hotels and other tourism businesses monitor water use and incorporate efficiency and conservation practices to address this crisis.

Water and Hotels

Adequate water supplies are especially important to hotels due to the water-intensity of the services they offer and their customers’ patterns of water use. Guests used water when washing or using the toilet, using spas or swimming pools, or using restaurants and bars. Numerous studies have shown that people use an estimated two to three times the amount of water in hotels as they do at home. It is estimated that hotel guests use between 84 and 2000 liters of water per day and up to 3423 liters per guest room. Researchers have identified five key factors affecting total water use in hotels: 1 ) climate, 2 ) category of hotel ( e.g., star level ), 3 ) number of rooms, 4 ) occupancy levels, and 5 ) visitor services within the hotel.( 5 ) They estimated that the half the water consumed in the hotel was used in public areas ( e.g., reception, restaurant, kitchen, lounges, pools, gyms, etc. )( 6 ) . Nearly one-third of the water consumed in guest rooms was hot water for bathing. The presence of a golf course can increase water consumption by 87%. In addition, water use is linked to increased energy use in hotels, particularly those that depend on desalinated water.( 7 )

Water shortages disproportionately affect hotels because many of the most popular tourism destinations are located in water-stressed coastal regions, on islands, and in arid climates. In these regions, water scarcity can drive up utility costs and create other challenges for hotel managers. Some accommodation providers can spend up to 20% of total utility expenses on water.( 8 ) High water costs are particularly prevalent in water scarce environments such as small islands that may rely on desalinization or water transported by ship. Water costs are likely to rise in the future as destinations invest in water systems to ensure continuity of supply.

Water Conservation Strategies

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Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.