Impacts, Risks and Opportunities 13


The World Travel & Tourism Council (WTTC) estimated in 2010 that the travel industry generated 258 million jobs and contributed 9% of the global gross domestic product. By 2012, WTTC predicts that the industry will employ 324 million people, bringing 65 million new jobs, which means that 1 in 10 jobs on the planet will be related to travel and tourism. An industry of this size has a considerable impact on social, economic and environmental conditions around the world. A growing national travel and tourism sector contributes to employment, raises national income, and can improve a country’s balance of payments. The sector is thus an important driver of growth and prosperity and, particularly within developing countries, it can play a leading role in poverty reduction.


The hospitality industry also faces a plethora of issues, risks and challenges related to sustainability. These include addressing climate change and resource consumption, minimizing generation of waste, and attracting and retaining high-performing employees. Carlson Hotels, Americas handles risks through the Responsible Business and Safety and Security programs. The industry must also respond to sustainability- related expectations expressed by customers and the local and global communities. Finally, increasingly in today’s business climate, comprehensive management of health and safety, ethics, corporate governance and a socially and environmentally responsible supply chain have become ever more important priorities. We believe that the above non- financial issues ultimately impact profitability.


There are many ways to run a hotel business which impact how a hotel operator can manage risk and take advantage of opportunities related to sustainability. Carlson Hotels, Americas’ business model, which includes owning, managing and franchising hotels, both limits and provides opportunities for actions we can take. By and large, we are able to control the key issues pertaining to sustainability as demonstrated in the paragraphs below.


This section reviews the most material sustainability issues on the basis of risks and opportunities of our business; significance of economics, environmental and social impact; and importance for key stakeholders.


Climate Change. There is no doubt that travel and tourism contribute to climate change. The UN World Tourism Organization estimates that travel and tourism, excluding aviation, was responsible for about 3% of global greenhouse gas emissions in 2010 and that it will grow at 2.5% per year until 2035. However, it is important to acknowledge that although the sector contributes to climate change, it also faces risks due to the climate change. If the industry fails to reduce carbon dioxide emissions, the rate of travel may decrease significantly over time as a result of legislative pressures (for example, carbon taxes) resulting in increased travel costs, or through voluntary actions of customers to limit travel. There are also risks related to more specific impacts of climate change, for example disrupted travel patterns or damage to hotel properties due to severe weather events such as storms and flooding. Some locations may face geographically specific risks that could affect the safe and profitable operation of hotels.


By signing the UN Global Compact, Carlson Hotels, Americas has further committed to promote greater environmental responsibility. Carlson Hotels, Americas continually monitors developments through active participation in environmental and industry forums. Employees are informed and engaged in climate change mitigation efforts through our internal awareness and training programs, Living Responsible Business and Leading Responsible Business.


Resource Consumption. Carlson Hotels, Americas’ consumption of resources, such as energy and water and the disposal of waste, impact the natural environment in terms of resource depletion and the generation of emissions and waste. Naturally, these elements also impact operational costs. We have introduced methods and metrics in 2011 as our environmental management framework. We have selected Energy Star Portfolio Manager as a required tool for all managed hotels. Our goal for 2011 is to reduce energy, water and waste by 5%. By 2015, we want to reduce waste by 20%, energy and water by 15%. Many of the actions we need to implement require investments in the properties. A close dialogue with our property owners regarding Responsible Business and related investments is therefore important for the success of the Responsible Business program. In addition to investments in existing properties, it is important that we minimize the environmental impact from the beginning of new projects by utilizing smart design. To this end, responsible construction and renovation guidelines are included in design standards.


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