Overview of Tourism Industry Environmental Management Efforts

1. Overview of Tourism Industry Environmental Management Efforts Harvard E -118 December 1, 2011 Accommodations, Tour Operations, Airports, Aviation, Cruise Lines, Destinations

2. EcolodgeCritera - The Nature Conservancy • has minimal impact on the natural and cultural surroundings, • fits into the physical and cultural environments through attention to design and landscaping as well as building materials, • utilizes “green” technologies that provide sustainable means of water acquisition, safe disposal of solid waste and sewage and use of renewable energy sources, • involves local communities in the ecolodge development and seeks to bring about economic and educational benefits to communities, and • integrates environmental and cultural education into the visitor’s experience.

3. Applicability of Ecolodge Development to Mainstream Tourism • Requirements to consider the landscape • To conserve natural resources and deliver natural products • To deliver maximum guest satisfaction via respect for the surroundings • To power and present via alternative and local sources

4. Multidisciplinary Approach • Civil engineering • Development of site according to standards • Environmental engineering • Preserving water quality and ecology • Architecture • Form, function, respect for nature, art • Landscape architecture • Respect and preservation for existing landscape • Understanding the steps to achieve sustainable outcomes • Site Analysis • Infrastructure Requirements • Vehicle and Pedestrian Circulation • Landscape and Gardens • Central Laundry & Kitchen/ Restaurants • Lighting and water features • Water supply and treatment • Waste water treatment and reclamation

5. Moving Mainstream • Recognition of “Non-Financial component of Corporate Success • Management of “externalities” that are less and less external • Waste, Toxicity, Poverty, Food, Water, Energy, Climate Change • Importance of investment community Wyndham’s Seven Mile Beach Hotel in Tasmania

6. Sustainable competitive advantage • Companies with business models that revolve around green practices will have the strongest opportunity of achieving a Sustainable Competitive Advantage Ernst & Young 2008 • Hotel Supply Chain Models • Owned • Managed • Leased • Franchises • Timeshare • Rental Exchange

7. Next Generation SolutionsLowering Impact of Hotel Facilities • Better site planning • Conservation of all natural resources • Re-use of all resources possible • Alternative energy • Internal management green teams • Greening the supply chain approaches Sustainability at Lapa Rios http://www.laparios.com/lapgoal.htm

8. Current Status for Hotel Industry in US • AH&LA Green Resource Center http://www.ahla.com/green.aspx • Level 1 • Best Practice • Ecoeducation • Ecosuppliers • Level 2 • Benchmarking • Tracking energy and water consumption • Utility Rebates • Free EPA programs • Level 3 • Certification & State Programs

9. Tour Operators & Travel Agents • Tour Operators & Agents Bear a Unique Responsibility as they are the primary vendors of product worldwide • They face difficult challenges as they do not own many of the assets they represent or even license or franchise them • Components of Management of Sustainability for Operators & Agents • Marketing, PR, Community Relations, Industry Advocacy • Products & Services • Employee Education • Supply Chain Management • Asset Management – Physical Assets • Benchmarking and Measuring and Reporting

10. Next generation for Tour Operators • Booking tools which integrate “levels of green” into product descriptions • Integration of Carbon Data in tour decision making tool kits • Investing in destinations

11. Building out into the responsible travel marketplace • Working with buyers seeking responsible, sustainable product • Developing responsible travel policy and creating programs that favor responsible suppliers

12. Responsible tourism criteria • Creating a flexible market ready approach • Developing criteria that allow entry of small and microenterprises into the marketplace

13. Tour Operator Sustainability • Bringing together the collective experiences of tour operators • Working through national trade associations • International standard • Training • Supplier Assessment Supply Chain Management

14. Tour operator sustainability • Other impacts of tour components • Method of transport • Type of excursions and activities • Selection of food and beverage

15. Tour Operator Sustainability • Increasing environmental benefits, e.g. • Avoiding sites with excessive pressure • Choosing rail or transport with lower CO2 emissions • Energy planning which seeks to lower total emissions of company transport

16. Tour Operator Sustainability • Tour Operator Engagement with Destinations • Influencing planning and management • Developing investment strategies for local green suppliers • Supporting community based approaches • Training local staff • Developing response to climate change & emergencies • Supporting basic human needs • Investing in environmental sustainability • Supporting local small businesses

17. Airport Green Management Air Quality Improvement Water Quality Control Solid Waste Recycling Noise Mitigation Ecological Protection Energy Efficiency Renewable Energy Green Buildings Carbon Footprint / Climate Action Plan Climate Adaptation

18. SFO Summary of Planned/ Ongoing GHG Emission Offset/Mitigation Measures

19. Air Transportation • Large agenda to reduce waste, energy, fuel, and carbon dioxide • Travel & Tourism causes 5% of all carbon emissions worldwide • 2% of this attributable to aviation • Growth to 15-20% of carbon emissions from aviation by 2050– see next slide • Fuel savings • Optimizing aircraft • Weight • Design • Fuels • Trim • Flight planning systems allowing airlines to operate efficiently • Emissions management systems for tracking, reporting, forecasting

20. Aviation’s contribution to CO2 emissions

21. Next generation approaches to Air Transport Management • Air passenger taxes in Europe • Carbon trading in Europe from 2012 forward • EU scheme to be implemented which would have global implications • Mandatory reductions in emissions in Europe • Can purchase European Aviation Allowances • Or Certified Emissions Reductions (CERs) through UN approved Clean Development Mechanisms (CDMs)

22. Next generation approaches • The Boeing 787 aircraft – targeted for delivery in early 2011 just experienced delays due to a fire during testing • Lower NoX • GEnX engines • Smooth wing technology, and state of the art raked tip • Composite Materials – lighter weight aircraft • Direct service – fewer take offs and landings • Thomson Airways, world’s largest charter airline, will become the Euro launch customer for the B787 with 12 deliveries • Thomson Airways is owned by TUI Travel

23. Cruise Ship Management 2009 IMO Emission Control Area (ECA) Covering North America will require Reduced sulfur and NoX and particulates • Energy and Air Emissions • Royal Caribbean • Reducing Fuel consumption by 2.5% • Reducing Green house gas footprint by 33% by 2015 • Testing scrubbers but all ships still use high sulfur fuels • Water & Waste Water • Royal Caribbean • Oily bilge water protection system fleet wide • 15 parts per million permitted, discharge allowed 12 miles out • CLIA members working towards 2ppm • Defining SoX Emission Control Areas (SECAs) • Mediterranean Sea may be designated by EU

24. Cruise Ship Management • Waste & Chemical Management • Royal Caribbean • Recycling 30% of all waste in U.S. ports • Realized 44% reduction in hazardous waste in 2008, 25% reduction in 2009 • CLIA Policy for Members • Zero trash discharge at sea • Food pulped and discharged “well away from shore” • On shore facilities for recycling remain limited in destinations

25. Cruise Destination Management • Supporting concept of Destination Stewardship, new standards being released by GSTC • Work closely with constituents in ports • Using funds from corporate foundations to support local conservation efforts • Achilles heal of industry • Economy of scale so great, industry capable of heavy pressure on local governments and business • Local governments and businesses largely “tow the line” • Cruise industry can easily move to other sites and often do so if not accommodated

26. Next generation Cruise Management • Improved emissions via new scrubbers • Reduced waste • More investment in local recycling facilities would be recommended • Improved management of waste water • More research on impacts of food waste thrown off board • Increasing success with energy efficiency • Management of ships in ports, e.g. engines • Need for real investment in local destinations that is substantial • Creation of destination stewardship fund and/or destination stewardship outside monitoring bodies to advise and rate cruise lines, that are independent of cruise profit driven approaches

27. Destinations • Destination stewardship is the frontier of sustainable tourism • There are metrics in the form of indicators which are rarely applied and difficult to coordinate

28. Destinations Next Steps • Creation of urban planning systems for tourism • Creation of rural planning systems for tourism • Implementation of knowledge transfer of best land-use planning systems • Prevention of incremental loss of destination authenticity • Problem of lack of understanding of how destinations actually develop • Need for knowledge transfer before too many entrenched interests prevent enlightened policies

29. Destination Next Steps • Development of Knowledge Management Systems & Tools for Evaluation of Destination Status • Enable Governments to make more informed decisions • Enable more informed dialog among stakeholders with government Ambergris Caye, Belize 20 years ago had 3-4 hotels

30. Destination next steps:Integrated Tracking of Key Topics • Topic Areas • Air Quality • Land Use • Biodiversity • Land Coverage • Crime & Safety • Local Economy • Demographics • Municipal Solid Waste • Education • Real Estate Development • Electricity • Sewage • Fishing • Town Council • Health • Water • Hotel Industry • Water-Based Tourism • Road Infrastructure

31. Next steps destinations • Economic Capacity to Reinvest in Cultural and Environmental Capital • Political capacity to respond to local destination stewardship goals

32. Review and Benchmarking • Stakeholder systems are known to work best for destination management • Limits of Acceptable Change • Mapping • Benchmarking will be critical