Towards a green economy

force skills, including the greening of the skills base); capacity building; and technology improvements (cleaner production, sustainable management). Investment in sustainable tourism offers a wide range of opportunities, notably in the areas of water, energy, waste and biodiversity, which can generate significant returns.

There is a growing trend within the tourism industry of investment in sustainability. For instance, the Accor hotel chain has been testing environmental technologies such as photovoltaic electricity, grey water re-use and rain- water recovery. Additional capital expenditure in energy efficiency and sustainable construction and renovation projects is estimated at a relatively modest 6 per cent of total construction costs (for a 106-room hotel), with excellent returns (WTTC 2009). Sol Meliá Hotels & Resorts have institutionalised their sustainability programme with independent certification for the company, including hotels and corporate offices on an international level, and a specific budget for the strategic project of sustainable development, financed entirely by company funds (WTTC 2010).

Energy In hotels and other accommodation there is considerable scope for investment in energy- efficient features and services, including refrigeration, television and video systems, air conditioning and heating (particularly reduction or elimination of these systems through improved design), and laundry. Such

investments are driven by increasing energy costs; likely carbon surcharges; increasing expectations of customers (particularly

from Europe and North

America); technological advances with low-carbon technology; and in some cases, government incentives. Many leading airlines are exploring alternative fuel strategies, as well as changes in routing, aircraft and flight practices. The railroad industry, particularly in Europe, is positioning itself as a green and community- linking alternative to air travel. Increased energy efficiency for tourism translates as reduced operational costs, increased customer satisfaction, and higher investment in energy efficiency (through retrofits and improvements).

Evidence suggests that investment in a more efficient use of energy in the sector generates significant returns (Box 2). Hamele and Eckardt (2006) reported the results of environmental initiatives in European hotels, bed & breakfast and camping sites, on energy consumption. On average, energy costs in hotels represented about 6 per cent of their annual turnover, whereas in the best practice es tablishments, this expense factor typically represented 1.5-2.8 per cent. Recent studies have shown that a 6 per cent increase in investment in energy-efficient design & equipment can lower electrical consumption by 10 per cent (Six Senses 2009); low-cost water-efficient design and operation can reduce consumption by 30 per cent (Newsom et al. 2008, Hagler Bailly 1998), and that overall financial cost-recovery of a destination’s

Box 2: Investment in energy efficiency and savings

Six Senses, a luxury hotel group, reports that the return on investment of various energy-savings measures applied in resorts located in Thailand ranges from six months to ten years:

■ The energy monitoring system cost US$ 4,500, enabling the resort to achieve 10 per cent energy savings and to identify areas for further savings;

■ Investment for the mini chiller system was US$ 130,000, which saves US$ 45,000 annually, and thus pays off in 2.8 years;

■ The heat-recovery system cost US$ 9,000, saving US$ 7,500 annually, corresponding to 1.2 years payback time;

■ The laundry hot-water system cost US$ 27,000, saving US$ 17,000 annually (1.6 year payback time);

■ Efficient lighting cost US$ 8,500, resulting in US$

16,000 savings per year, i.e. taking six months to pay back (not considering the longer life-span of the lights);

■ Investment in a water reservoir was US$ 36,000, leading to annual savings of US$ 330,000 (less than a month payback time);

■ Biomass absorption chillers cost US$ 120,000, resulting in US$ 43,000 saving annually, i.e. 2.8 years payback; and

■ Medium voltage (6.6kV) underground electric copper cables cost US$ 300,000. Payback is roughly 10 years from lower energy loss, but other benefits include less radiation, less power fluctuation, reduced fire risk and a prettier resort without old hanging low voltage electrical cables.

Source: Six Senses (2009)

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