Sustainability in the Hospitality Industry: Principles of Sustainable Operations [4 ed.] 2021059979, 2021059980, 9780367532536, 9780367532505, 9781003081128

Table of contents :
Cover
Half Title
Title Page
Copyright Page
Table of Contents
List of illustrations
List of case studies
List of info boxes
Foreword
Preface
Acknowledgements
1 The Rationale for Sustainable Development
2 Sustainable Development and the Hospitality Industry
3 Energy
4 Waste
5 Water
6 Facilities
7 Accessibility
8 Employees
9 Food
10 Food and Beverage Management
11 Certification and Ecolabels
12 Marketing and Consumer Behaviour
13 Environmental Management Systems and Key Performance Indicators
14 ESG, Environmental Accounting and Externalities
15 Investing and Financing
16 Reporting and Communicating
17 Stakeholder Relationships and Partnerships
18 Social Entrepreneurship
19 Challenges of Operating in the Global South
Glossary
Index

Citation preview

SUSTAINABILITY IN THE HOSPITALITY INDUSTRY This foundational textbook investigates the economic, environmental and social sustainability issues facing the hospitality industry today, and explores ideas, solutions and strategies of how to manage operations in a sustainable way. This updated fourth edition features new content including: •

• • • •

Research on nature-based solutions and zero-carbon approaches in facilities, technologies for energy, water and waste management, changes in consumer behaviour, and environmental and social impacts of food production A new chapter on employees, diversity, inclusion and well-being in the industry A new chapter on the challenges of operating in the Global South More than 100 international industry case studies and focused info boxes New practical exercises, discussion questions and research project ideas based on real-life sustainability scenarios

Accessible and comprehensive, this book is essential reading for all students as well as current and future managers in the hospitality industry. Willy Legrand, Professor, Department of Tourism, Hospitality & Event Management, IU International University of Applied Sciences, Bonn, Germany. Joseph S. Chen, Professor, Tourism, Hospitality and Event Management, Department of Health & Wellness Design, School of Public Health, Indiana University, Bloomington, USA. Gabriel C. M. Laeis, Professor, Department of Tourism, Hospitality & Event Management, IU International University of Applied Sciences, Bonn, Germany.

Fourth Edition

SUSTAINABILITY IN THE HOSPITALITY INDUSTRY Principles of Sustainable Operations

WILLY LEGRAND, JOSEPH S. CHEN AND GABRIEL C. M. LAEIS

Cover image: Getty Images Fourth edition published 2023 by Routledge 4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN and by Routledge 605 Third Avenue, New York, NY 10158 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2023 Willy Legrand, Joseph S. Chen and Gabriel C. M. Laeis The right of Willy Legrand, Joseph S. Chen and Gabriel C. M. Laeis to be identified as authors of this work has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. First edition published by Elsevier 2009 Third edition published by Routledge 2016 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Legrand, Willy, author. | Chen, Joseph S., author. | Laeis, Gabriel C. M., author. Title: Sustainability in the hospitality industry: principles of sustainable operations / Willy Legrand, Joseph S. Chen and Gabriel C. M. Laeis. Description: Fourth edition. | Abingdon, Oxon; New York, NY: Routledge, 2022. | Includes bibliographical references and index. | Identifiers: LCCN 2021059979 (print) | LCCN 2021059980 (ebook) | ISBN 9780367532536 (hbk) | ISBN 9780367532505 (pbk) | ISBN 9781003081128 (ebk) Subjects: LCSH: Hospitality industry—Management. | Hospitality industry— Environmental aspects. | Social responsibility of business. | Sustainability. Classification: LCC TX911.3.M27 S87 2022 (print) | LCC TX911.3.M27 (ebook) | DDC 338.4/791068—dc23 LC record available at https://lccn.loc.gov/2021059979 LC ebook record available at https://lccn.loc.gov/2021059980 ISBN: 9780367532536 (hbk) ISBN: 9780367532505 (pbk) ISBN: 9781003081128 (ebk) DOI: 10.4324/9781003081128 Typeset in Stone Serif, Avenir and Rockwell by codeMantra Access the companion website: www.routledge.com/cw/legrand

Contents

List of illustrations List of case studies List of info boxes Foreword Preface Acknowledgements

vi xiii xvi xviii xix xxvi

1 The Rationale for Sustainable Development 2 Sustainable Development and the Hospitality Industry 3 Energy 4 Waste 5 Water 6 Facilities 7 Accessibility 8 Employees 9 Food 10 Food and Beverage Management 11 Certification and Ecolabels 1 2 Marketing and Consumer Behaviour 13 Environmental Management Systems and Key Performance Indicators 1 4 ESG, Environmental Accounting and Externalities 15 Investing and Financing 16 Reporting and Communicating 17 Stakeholder Relationships and Partnerships 18 Social Entrepreneurship 19 Challenges of Operating in the Global South

1 15 63 141 187 219 279 327 383 427 497 541 575 607 637 673 697 725 735

Glossary Index

767 783

v

ILLUSTRATIONS

Figures 2.1 Sustainable hospitality theoretical framework

33

2.2 Framework for a sustainable hospitality industry

37

2.3 The Hotel Resilient multi-hazard standards

50

2.4 The Hotel Resilient COVID-READY standards

52

2.5 Key areas covered by the Hotel Resilient COVID-READY standards

52

4.1 Management resources in a circular thinking in hospitality

161

6.1 A building’s life cycle and related impacts

222

6.2 Butterfly metamorphosis as a guidance to the complete guest experience of the public space

249

6.3 Waste sorting diagram

250

6.4 Waste stream diagram

251

6.5 Waste management diagram

251

7.1 The tourist service chain

292

8.1 Employees and business sustainability: two sides of the same coin

331

8.2 Employees and sustainability at the workplace: leading questions

332

8.3 Diversity, equity and inclusion key questions

337

8.4 Well-being factors

351

8.5 Description of well-being factors

351

9.1 Estimated global marine fish stocks development 1974–2017

393

9.2 World capture and aquaculture production development 1950–2018 398 9.3 Global Living Planet Index: Decline in percentage of 20,811 populations between 1970 and 2016

vi

401

10.1 Food system and sustainability context

430

10.2 Sourcing options for restaurants

439

10.3 The PLEDGETM certification process

468

11.1 The GSTC accreditation and certification structure

507

11.2 Micro-certification in the hospitality industry

522

11.3 Summary of advantages and disadvantages of ecolabels

528

I l l u s t r at i o n s

12.1 Responsible consumption decision process

548

12.2 Responsible marketing and the business environment

558

12.3 The four Ps of responsible marketing

559

12.4 Pressure, drivers and exit strategies

561

12.5 Green branding strategy

566

13.1 Sustainability management plan

576

13.2 Main stages in EMAS

585

13.3 EMS implementation stages in hospitality

589

13.4 Example of sustainability framework, requirements, ratings and scoring

601

13.5 Radar chart on food & beverage outcome

602

14.1 Basic ESG scoring framework

612

15.1 Continuum of sustainability approaches in hospitality

642

15.2 Generic overview of financing and funding options according to flexibility and access

644

15.3 Marginal abatement cost curve

660

15.4 Marginal abatement cost formula

661

15.5 Net present value formula

661

15.6 Marginal abatement cost curve practical example 1

664

15.7 Marginal abatement cost curve practical example 2

664

15.8 Sustainability performance cost-benefit framework

667

16.1 Journey to tomorrow stamps – from top left to bottom right: Hero, communities, people, carbon & energy, waste and water

685

16.2 The wave of change logo

687

17.1 Three levels of actions to carbon neutrality

703

17.2 A company’s environment & interactions

712

19.1 Travel and tourism economic impacts

746

Pictures 2.1 Paresa, a COVID-READY Certified hotel in Phuket, Thailand, demonstrates their enhanced cleaning strategies

53

3.1 My Green Butler provides guests with eco-feedback so they can monitor their consumption in real-time

113

3.2 Solar panels at Soneva Fushi

128

3.3 Ma Cho and her mother-in-law Than Than Win prepare the family dinner using the efficient cook stove in Thit Hla Kyin village in Myanmar’s central Dry Zone

130

vii

I l l u s t r at i o n s

3.4 Soneva planted over half a million trees in northern Thailand

131

4.1 Removable and washable padded layers providing an easy access for vacuuming and steam cleaning

155

4.2 Mangoes transported in cardboard boxes & hay instead of styrofoam 158 4.3 Eliminating plastic containers in the kitchen with reusable options

160

4.4 Eliminating plastic wrappers and biodegradable bags and using large reusable storage boxesPlastic- Free Seafood Packaging: Six Senses Laamu and Biobiene

160

4.5 Tracking food waste via intelligent scale system

163

4.6 The card in the room – Unit cost to print this card is 0.70  TL per room

169

4.7 Soneva Fushi’s restaurant Fresh in the Garden is located at the heart of the resort’s vegetable gardens

178

4.8 The Soneva Glass Studio takes Soneva’s Eco Centro concept to the logical next step – creating not just wealth from waste but also beauty

179

4.9 Maalhos burnsite

179

4.10 Maalhos former burnsite, turned into a recreational park after the island stopped open burning of waste

180

4.11 Soneva Fushi in Baa Atoll UNESCO Biosphere Reserve, Maldives

181

5.1 Threading light with tented structures nestled in the middle of the forest

195

5.2 Water collection project

196

5.3 Virgin rainforest and coral reef surrounding Nikoi Island

200

5.4 The wastewater garden uses plants to remove high levels of phosphates and nitrates present in the waste water

201

5.5 The Antbear Lodge logo, an African ant bear

211

5.6 A Red Bishop on Reed Bed Filter at Antbear Lodge

211

5.7 Soneva Kiri’s Cinema Paradiso reflects on the resort’s rainwater-harvested reservoir

viii

213

5.8 Zero discharge policy at Soneva allows for fabulous snorkelling guided by their marine biologist

214

5.9 Soneva Water set up on Maalhos

214

6.1 Straw bale construction at the Antbear Lodge

234

6.2 Camp Sarika by Amangiri with its extended overhangs providing passive cooling and heating

248

6.3 Treading lightly and integrating nature are essential principles

248

6.4 The eco-lodge property on timber platform without the use of concrete and nails

253

I l l u s t r at i o n s

6.5 Carefully orientated space to reconnect with nature

254

6.6 Palmaïa – The House of AïA at Playa del Carmen looking over the Caribbean Sea

259

6.7 ITC Green Centre, the Hotel Division HQ in NCR Delhi was the largest building to be accredited with the highest LEED (Leadership in Energy and Environmental Design) rating during its inception.

269

7.1 The Snoezelen room at the Allgäu ART Hotel for relaxation

300

7.2 A couple enjoying sunset with glass of wine

303

8.1 Creativity, genuine hospitality, individual experience and a connection with each locality are all part of The House Hotels’ success. A sneak preview from The House Hotel Jeddah City Yard

368

8.2 The Fairmont Hotel Vier Jahreszeiten, a Grand Hotel overlooking the Inner Alster in Hamburg

373

8.3 The five-star iconic boutique hotel Breidenbacher Hof in Düsseldorf 374 8.4 The Brenners Park-Hotel & Spa is a go-to address in BadenBaden near the Black Forest

375

9.1 Faroe Bank cod

396

9.2 Local fishermen teach chefs the art of filleting Faroe Bank cod

396

9.3 Insects feeding on yarrow flowers (Achillea millefolium) 403 9.4 Insect hotel

404

9.5 Green fellow in between crops

408

9.6 The Sant’Egle eco-organic luxury resort

419

9.7 Glamping tents in an olive grove provide stunning views and a connection to nature

420

10.1 Babylonstroren’s garden produce

443

10.2 The gardens at Babylonstroren

444

10.3 Unusual food combinations at Babel restaurant

445

10.4 MICHELIN-awarded chefs and their teams celebrating food waste reduction

453

10.5 The team of JW Marriott Bangkok celebrating becoming ‘pledgers’

453

10.6 Agile Food Waste Solution with Food Intel Tech (FIT)

454

10.7 J’AIME’s kitchen team and food waste monitoring in action

455

10.8 The Winnow system in a kitchen environment

456

10.9 The Winnow system display, showing weight and value of food waste

457

10.10 The map view of the Too Good to Go app

461

ix

I l l u s t r at i o n s

10.11 Too Good To Go provides surprise Magic Bags packed with surplus food to consumers

462

10.12 Wiikwemkoong First Nation’s Annual Cultural Festival

480

10.13 Manitoulin Hotel & Conference Centre

481

10.14 Indigenous Cuisine in Ontario

483

10.15 Blackberries

486

14.1 The Vélo’v in Lyon, a rent-a-bike system with almost 350 stations across the city

616

17.1 The historic sanctuary Machu Picchu, a World Heritage Site by UNESCO and one of the New Seven Wonders of the Modern World

702

17.2 Shinta Mani wild located in the heart of the South Cardamom rainforest

720

17.3 A meticulously designed tent placed along the river

720

19.1 Cooking lessons at a technical college in the South Pacific

742

19.2 Belmond Safaris’ Savute elephant lodge located in the Chobe national park in Northern Botswana

751

19.3 As a result of switching from chemical fogging to trapping Soneva Fushi has seen a dramatically reduced mosquito population and an increase in insect biodiversity

754

19.4 The BG-Mosquitaire CO2 traps hold a sachet that mimics human sweat with the smell of lactic acid as well as an added mixture of sugar, water and yeast as a means to produce carbon dioxide, mimicking exhaled human breath

756

19.5 The Soneva team counts each mosquito caught on a daily basis to keep track of the progress

757

19.6 The atingi eacademy

760

Tables

x

2.1 Book Chapters and SDGs

28

2.2 Areas of Social Sustainability

38

3.1 Energy and SDGs

65

3.2 Factors Influencing Hotel Energy Consumption

69

3.3 Suitability of Energy Production Technologies for Hotels

101

4.1 Waste and SDGs

143

4.2 Non-hazardous and Hazardous Waste Categorisation

148

4.3 Breakdown of Total Cost of Food Waste

150

4.4 Composition of Hotel Waste Stream

151

I l l u s t r at i o n s

4.5 Single-Use Items’ Consumption Before and After the Implementation of the ‘Single-Use Items on Demand’

169

5.1 Water and SDGs

189

5.2 The Water Footprint of Selected Food Items

194

5.3 End Uses of Water in Hotels

197

5.4 Consumption Values per Cycle

208

5.5 Annual Resources Savings Following a Reduction of 325 Machine Cycles

208

5.6 Financial Savings Calculation

209

6.1 Facilities and SDGs

221

6.2 Direct and Indirect Greenhouse Gas Emissions by Economic Sector

224

6.3 Comparison of Type I and Type II Sustainable Buildings

236

6.4 Summary of Main Passive House Categories and Criteria

264

7.1 Accessibility and SDGs

280

7.2 Principles of Universal Design

288

7.3 Key Features of ADA Hotel Room based on 2010 Standards

296

7.4 Restrictions in Hotel Public Areas

308

7.5 Restrictions in Guestrooms

309

7.6 Restrictions in Bathrooms

309

7.7 Hotel Visits: Guestrooms

311

7.8 The 159-point Standard

313

8.1 Employees and SDGs

329

8.2 Human Resources: Focusing on Sustainability Practices

333

8.3 Hilton Hotels & Resorts Comprehensive Sets of Attributes  to DE&I

340

8.4 10 Key Human Rights Issues and Corresponding UDHR Articles

345

8.5 Benefits Associated with Incorporating Human Rights Standards in Business Practices

346

8.6 Main Occupational Health and Safety Risks Associated with Hotels and Restaurants

355

8.7 Main Occupational Health and Safety Risks and Preventive Measures in Hotels and Restaurants

357

8.8 Organisational Value Displayed in the Hospitality Sector

361

9.1 Food and SDGs

386

9.2 Causes of Biodiversity Loss Linked to Agricultural Activities

402

10.1 F&B Management and SDGs

429

10.2 Restaurant Sustainability Indicators

431

10.3 Top Eight Culinary Trends in US Gastronomy

436

10.4 Benefits of Local Food Systems for Suppliers and Consumers

442

xi

I l l u s t r at i o n s

10.5 Comparative Food Loss and Waste

447

10.6 Types of Food Waste Occurring in F&B Outlets

449

10.7 Avoidable Food Waste Losses in the British Food Service Sector

450

11.1 Certification Process and Labels & SDGs 498 11.2 GSTC Criteria & Indicators for Hotels

511

11.3 ISO’s Classification of Labelling Types

515

11.4 Guideline (G) Increasing Percentage of Criteria to Be Met According to Years of Involvement with Green Key

529

11.5 Green Key Criteria

530

12.1 Marketing and SDGs

542

13.1 Environmental Management Systems and Key Performance Indicators and SDGs

577

13.2 The ISO 14000 Family of International Standards

580

13.3 The ISO 14000 Family of International Standards for GHG and Carbon Footprint

582

13.4 Comparing the PDCA Cycle to the ISO 14001:2015 Standard

583

13.5 Examples of Environmental Performance Indicators

595

14.1 ESG, Environmental Accounting and Externalities and SDGs

608

14.2 Critical Material Issues in the Hospitality Sector

610

14.3 Responsible Decision-Making Matrix for City Transportation

617

14.4 Environmental Costs Incurred by Businesses

621

15.1 Investing and Financing and SDGs

639

15.2 Summary Cost of Abatement LED versus PV & Storage System

662

15.3 Summary Cost of Abatement Passive House Hotel Building

665

16.1 Reporting and Communicating and SDGs

674

17.1 Stakeholder Relationships and Partnerships and SDGs

699

17.2 ICC’s Business Charter for Sustainable Development

700

17.3 Corporate Social Responsibility Overall Business Benefits

714

18.1 Social Entrepreneurship and SDGs

727

19.1 Operating Hospitality Businesses in the Global South and SDGs

737

19.2 Reasons for Economic Leakages and Associated Hospitality Examples 747 19.3 Challenges of Off-Grid Properties in the Global South

xii

749

CASE STUDIES

2.1 Blessing or Curse? Tourism and Biodiversity

34

2.2 Hotel Resilient: Proactively Reducing Risk

45

2.3 Hotel Resilient

48

2.4 Hotel Industry’s Response to COVID-19

51

3.1 Energy in a Hotel: A Hygiene Factor

68

3.2 Water–Energy Nexus in Practice

72

3.3 Calculating Degree Days in Practice

75

3.4 Using Degree Days to Create a Baseline

77

3.5 Benchmarking Energy Performance in Practice

78

3.6 Linking Energy to Carbon Emissions

83

3.7 Passive Housing as Energy-Efficiency Strategy for Hotels

92

3.8 Addressing the Carbon Challenge at IHG

104

3.9 Enhancing environmental performance through resource efficiency 124 3.10 Soneva: Decarbonising your Business

125

4.1 Six Senses: Plastic Free

157

4.2 Eliminating Single-use Plastic at the Mandarin Oriental Bangkok

164

4.3 Single-Use Items on Demand: The Effect on Quantity Demanded at the Tasigo Hotel, Eskisehir, Turkey

168

4.4 Food Waste Reduction in Staff Cafeteria at the Athenee Hotel, Bangkok

175

4.5 Soneva: Waste-to-Wealth

176

5.1 Galapagos Safari Camp: Appropriate Luxury and Nature

195

5.2 Nikoi Island and Waste Water Gardens

199

5.3 Laundry Operations and Towels: Stay in Harmony at Tasigo

207

5.4 Reed Bed Filter: Antbear Lodge, Drakensberg Mountains, South Africa

210

5.5 Soneva: Clean Water for All

213

6.1 Straw Bale Construction: Antbear Lodge, Drakensberg Mountains, South Africa

233

6.2 Rating The Environmental Impacts of Manufacturers and Their Products: MindClick

238

xiii

Case Studies

6.3 Biophilia and Biomimicry in Sustainable Hospitality Design

246

6.4 Leaving No Scar on Its Landscape: Kasiiya Papagayo in 253

Costa Rica 6.5 Sensible Sustainable Solutions by BENSLEY

266

6.6 ITC Hotels: Reducing the Carbon Footprint of Hotels

268

7.1 Arrival with Private Bus to Seehotel Rheinsberg, Germany

294

7.2 Making Accessibility Simple: Ilunion Hotel Fuengirola, Spain

298

7.3 Hotel im Schulhaus: Folder with Ideas for Excursions

299

7.4 Leisure Activities at Allgäu ART Hotel, Germany

299

7.5 Services to the Blind and Vision Impaired: The Aura-Hotel Saulgrub, Germany

301

7.6 Wheelchair Accessibility: Hotel Aris, Tolo, Greece

301

7.7 Embrace Hotels: Inclusion as a Guiding Principle

302

7.8 An Investigation into Wheelchair Accessibility and Mobility in Hotels

307

7.9 Scandic’s Accessibility Standard

312

8.1 Generation Z Engaged to Lead the Group’s Sustainability Agenda 367 8.2 Fair Job Hotels: Human Sustainability

370

9.1 Making Informed Sustainable Seafood Choices

394

9.2 Congenial Chefs and Marine Researchers?

395

9.3 Biodiversity and Slow Food’s Ark of Taste

412

9.4 Agritourism the Italian way at Sant’Egle

418

10.1 An Edible Garden in South Africa

443

10.2 LightBlue Environmental Consulting

451

10.3 Food Intel Tech: Food Waste Solutions

454

10.4 WINNOW: Smart Solutions for Cutting Down Food Waste

456

10.5 Too Good To Go: Fighting Food Waste Together

461

10.6 Taking the PLEDGE

xiv

TM

to Reduce Food Waste

463

10.7 Indigenous Food Tourism Standards and Best Practices Checklist

478

11.1 Meliá Hotels International: An EarthCheck Certified Story

512

11.2 Getting a Hotel Certified: Step-by-Step Process

518

11.3 Eliminating Single-Use Plastic Products from Operations: SUP-Free Certification

523

12.1 Consumer Responsibility and Climate Change

543

12.2 Green Consumer Behaviour

546

12.3 Herost: Sustainable and Community-Driven Platform

549

12.4 CleanSkip: Gamification and Incentivisation

554

12.5 The Words, Imagery, and Messaging You Choose Make a Difference: Mindful Storytelling in Hospitality and Tourism

563

12.6 Building Brand Equity through Sustainability

570

Case Studies

13.1 Glamping Advisors: Natura Glamping, Portugal

600

14.1 Life-Cycle Assessment of AccorHotels’ Activities

623

14.2 AccorHotels Socio-Economic Footprint Study

625

14.3 Assessing Sustainability Risk in Hotel Properties and Developments 632 15.1 KfW Offers New Sustainability Financing in Germany

646

15.2 Calculating Payback Period on Photovoltaic Panels

650

15.3 Calculating ROI on Healthy Food Vending Machine

655

15.4 Calculating Internal Rate of Return on Energy-Efficiency Lighting 657 16.1 Intention vs Interpretation: Does Your Story Reflect Your Intentions? 690 17.1 A Carbon Neutral Approach for Tourism Destinations: The Case of Machu Picchu, First Carbon Neutral Wonder of the World

702

17.2 Bensley Collection – Shinta Mani Wild

719

18.1 Six Senses: Environmental Impact Assessment & Social Entrepreneurship 728 19.1 Ensuring That Workers Are Engaged Fairly and Transparently

744

19.2 Sustainability for Off-Grid Properties: Savute Elephant Lodge

751

19.3 Soneva Fushi: Zero Mosquito Project

754

19.4 Atingi – Digital Capacity Building for Hospitality and Tourism

759

xv

INFO BOXES

2.1 Tools and Resources to Enable Every Hotel to Operate Responsibly and Grow Sustainably

40

3.1 Using the Hotel Carbon Measurement Initiative (HCMI) to Monitor, Report and Reduce Carbon Emissions

86

3.2 Incentives for Sustainable Buildings: Hampton Inn & Suites Roseburg, Oregon, USA

102

3.3 Mitigating Energy Usage and Costs with EPA’s ENERGY STAR Portfolio Manager Tool

108

3.4 People Power: How My Green Butler Synchronises Guests and Staff for Sustainable Hospitality Success

112

4.1 Elephant in the Room? Sustainability & Hotel Mattresses

153

4.2 Tackling Waste at Marriott International

163

4.3 Hotel Waste Measurement Methodology

173

5.1 Balearic Islands: Balancing the Social, Environmental and Economic Pillars of Water Scarcity

191

5.2 Using the Hotel Water Measurement Initiative (HWMI) to Combat Water Scarcity

202

6.1 Cutting Edge of Sustainable Hospitality Design: Luxury Frontiers

255

6.2 Decarbonisation through 100% Renewables: Palmaïa – The House of AïA

259

7.1 Breaking Down Barriers: the 1990 Americans with Disabilities Act (ADA)

282

7.2 DIN: The German Institute for Standardization on Accessibility

297

7.3 Information Platform Wheelmap.org

304

7.4 Reisen für Alle [Travel for All]: Database & Certification

305

8.1 Enabling Young and Disadvantaged People to Build a Better Future 8.2 Uniting the Hospitality Industry behind a Set of Principles on Forced Labour

338 344

8.3 Effective Management of Sustainability Training for Tourism and Hospitality Employees

xvi

363

Info Boxes

9.1 A Vision Statement for Sustainable Food Production

409

9.2 Of Worms, Soil and Carbon

410

9.3 Human Excreta in Agriculture?

415

10.1 Sustainable Restaurant Awards

434

11.1 EarthCheck: The Certification 4-Way Test

502

11.2 Global Sustainable Tourism Council (GSTC): Setting a Global Standard 508 11.3 Green Key Criteria

528

13.1 Hilton: Improving Performance through LightStay

592

13.2 Dynamic Data Management: Con-ServeTM by Considerate Group

596

15.1 Increasing Collaboration across the Hotel Value Chain on Sustainable Buildings

668

16.1 Working with Reliable Data: STR LLC

675

16.2 Journey to Tomorrow: IHG’s 10-Year Action Plan

684

16.3 Iberostar’s Wave of Change

687

17.1 Driving Collaboration for a More Sustainable Future

709

17.2 World of Glamping: Bringing Together Luxury Experiential Lodges and Eco-resorts

710

xvii

Foreword

The hospitality industry reaches into communities across the world and is an especially crucial source of income and opportunities in developing countries. In 2019, the sector generated over 10% of global GDP, and it provided job opportunities to one in ten people. And, prior to the pandemic, its scale was increasing, with one in four new jobs being created by travel and tourism between 2014 and 2019 (WTTC, 2020). With this power to have a lasting positive impact on lives, places and economies, we need to ensure that we are all working towards a sustainable and inclusive future for our planet and its people. Over the past few decades, we have seen the industry make increasingly ambitious commitments as we all strive to contribute towards the targets set by the UN Sustainable Development Goals and the Paris Agreement. While it was one of the hardest hits by the economic impacts of the global pandemic, the industry recognises that it is more important than ever that we are protecting from exploitation those who’ve been left vulnerable, that new opportunities are reaching those who need them the most and that we remain committed towards a sustainable and responsible recovery. There is more that we can all be doing to drive sustainability in the hospitality industry. It’s a topic that’s becoming an increasing focus for corporate customers, leisure travellers, investors and other parts of the value chain. Similarly, it’s an issue that not only needs to be addressed across hotel operations, but into our supply chains, partners and agencies. That’s why it’s important that the industry works together and collaborates with governments and the public and private sectors in order to increase the pace and scale of change. Operating sustainably is a vitally important topic for the next generation of hotel employees, owners and managers, and this book provides a practical introduction to the environmental and social issues facing the industry. With strategies and examples of how these are being tackled that every hotel can learn from, this is essential reading for all students and future leaders so that all hoteliers can play their part in creating a better world. Wolfgang M. Neumann, Chair, Sustainable Hospitality Alliance WTTC (2020), Economic Impact Report, available from: https://wttc.org/Research/Economic-Impact

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Preface

The United Nations World Tourism Organization (UNWTO) reports that the tourism industry plays a major role not only in economic recovery of destinations and creation of employment, but is equally a driver for peace and security, cultural preservation and environmental protection. The tourism and hospitality industries are recognised by the global community as major players in tackling many of the sustainable development challenges listed under the 2030 Agenda for Sustainable Development and the 17 Sustainable Development Goals (SDGs). However, the hospitality industry is at a crossroads in terms of sustainability management. The hospitality sector is required to tackle biodiversity and social challenges, but also to keep the pace set in global commitments such as the Paris Agreement on Climate Change: the hospitality industry needs to decarbonise its operations by 2050. Additionally, while the industry has made some advances over the past few years in terms of reducing single-plastic usage within the operations, for example, the COVID-19 crisis has created additional challenges on that topic where hotels seek to balance health and sanitation requirements with sustainability obligations. Further mitigation of solid waste, including most notably food waste, must be put in place, thus aligning industry goals to the SDGs. Finally, the industry has an obligation towards employees and communities in developing equitable conditions, providing employment and minimising economic leakages to ensure a sustainable infrastructure development of destinations, particularly in the Global South. Education plays a central role in ensuring a decisive transition to sustainable business conditions. As the industry pivots to take on the social, environmental and economic challenges, hospitality education must be at the forefront of a future-proofed industry. Hospitality leaders, managers and management graduates have the opportunity and obligation to make a difference as decisions made today will impact those who take the industry reigns tomorrow. This book is relevant based on three reasons. First, it recognises that the solutions to the great challenges ahead involve an active participation of the private sector. It not only recognises that the hospitality industry plays an important role in local, regional and national economies but also that it is an industry hungry for resources. All stakeholders expect businesses to report on their sustainability performance with investors having an eye on the environmental, social and governance (ESG) performance and ratings. This book reviews best practices in the hospitality sector and proposes innovative solutions pertaining to the environmental, social and economic pillars of sustainability.

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Second, legal implications in the form of stricter emission and pollution controls, carbon taxation systems or stringent building codes in regard to energy efficiency or construction material, impact the life cycle of the hospitality industry. The challenge is therefore either to be a step ahead of legislation by implementing a proactive approach or being a step behind figuring out ways to reactively implement or adjust practices. This book examines the strategies, processes and tools, from implementing environmental management systems to motivating employees or seeking certification to operate more efficiently. Third, by incorporating responsible marketing practices, understanding consumer behaviour and developing a culture of corporate responsibility, hospitality businesses improve their reputation and attract guests, future employees and investors. This book examines the importance of stakeholder relationships in sustainability management, marketing and models of entrepreneurship that are used to drive the sustainability transformation. Ultimately, this book tries to provide an answer to the following question: how do we create a hospitality industry, which is kind to the environment (within the limits imposed by nature and the available resources), healthy to its workers, pleasing to its guests, efficient for the operators and profitable to its owners? Sustainability in the Hospitality Industry: Principles of Sustainable Operations seeks to provide answers to questions, attempts to resolve challenges and gives guidance. Finally, it provides a new intellectual framework designed to stimulate discussion on conducting business which future generations can benefit from.

Organisation of the Book 1 The Rationale for Sustainable Development The book starts with a review of the ongoing global challenges for the planet and its inhabitants. Chapter 1 looks at the concept and roots of climate change. It develops further by addressing the linkages between the economy, the carrying capacity of the planet and the management of natural resources. The chapter closes by clarifying the links between the global issues and the relationship between economy, people and the environment.

2 Sustainable Development and the Hospitality Industry Chapter 2 introduces the general concept of sustainability and sustainable development. Definitions of ‘sustainable development’ and ‘sustainable hospitality’ are discussed. The chapter explores the development of ‘sustainabilitythinking’ from a historical perspective and explores the dimensions of a

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‘sustainable hospitality’ using best practices examples. The chapter concludes with a discussion on approaches to managing the challenges faced by the hospitality industry and managing sustainability.

3 Energy Chapter 3 reviews the importance of energy for the hospitality industry. The chapter provides an analysis of a typical hotel’s energy usage and carbon footprint, and describes the water-energy nexus. The concepts of renewable and non-renewable energy sources are explained, followed by a detailed analysis of the possibilities and application of the different forms of energy used in hotels: solar, wind, geothermal, wave, hydro and biomass. The chapter also discusses the use of energy-efficient technologies in hotels, the process of decarbonisation and carbon offsetting as well as the activities involved in installing an energy management programme.

4 Waste Chapter 4 starts by defining and describing the various forms of waste and explaining the impacts of waste on the environment and communities. It follows with a discussion on waste management strategy, including waste avoidance, waste reduction, waste recycling and waste disposal methods in the hospitality industry. It concludes by discussing the importance of a ‘circular approach’ in waste management.

5 Water Chapter 5 focuses on the issues surrounding water usage, water quality, water availability and water conservation. The chapter explores the linkages between water, the ecosystems and sustainable development. The water footprint in food is also discussed. Techniques for water conservation and use of water-­ efficient technologies as well as the implementation of a water management strategy are discussed.

6 Facilities Chapter 6 begins by explaining the impacts buildings and hotels have on the natural and societal environments. The chapter continues by underlining the principles of sustainable hospitality design. The chapter explores buildings in the context of climate change, construction waste, resource usage and pollution, defining concepts such as embodied carbon and operational carbon. Nature-based solutions for hospitality facilities are presented. The leading

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certification standards for buildings are reviewed, and the chapter ends with a discussion on the value of sustainability in luxury hospitality facilities.

7 Accessibility Chapter 7 begins with a discussion on the importance of managing accessibility in the hospitality industry. It provides a definition of ‘accessibility’ and explores guidelines, conventions and regulations pertaining to accessibility. The chapter reviews the principles of Universal Design. It illustrates the challenges in managing accessibility in hospitality using the Tourist Service Chain model and identifies opportunities and best practices in the hospitality industry.

8 Employees Chapter 8 starts off by exploring the links between sustainability and employees in the context of human resources (HR) management. The chapter continues by identifying and discussing the barriers and benefits linked to employee engagement in sustainability and describes methods to foster that engagement. The importance of diversity, equity and inclusion as well as human rights issues associated with hospitality is conferred. Reviewing the common codes of conduct and ethics frameworks, the chapter concludes on issues pertaining to employee well-being, health and safety as well as employee motivation, commitment and satisfaction in driving sustainability in hospitality organisations.

9 Food Chapter 9 begins by exploring the links between F&B operations, agriculture, fisheries and sustainability. It continues by discussing the implications of meat and seafood production from a social and environmental perspective. Conventional agriculture is presented, and principles of organic agriculture are reviewed. The chapter also provides a description of various forms of sustainable agriculture, reviews organic labelling schemes and concludes with an analysis of fair and ethical trade systems.

10 Food and Beverage Management Chapter 10 continues from Chapter 9 by defining sustainable food & beverage management. In doing so, the chapter reviews the importance of food trends to sustainable food & beverage operations. Responsible procurement principles are reviewed while also exploring the paradigm of local and seasonal food sourcing. The topic of food waste, including food waste reduction tactics, is covered in great length. The chapter concludes with a discussion on work

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environment-related sustainability issues from a social perspective as well as the impact of organisational models on social sustainability.

11 Certification and Ecolabels Chapter 11 defines ‘certification’ and evaluates the various certification schemes available to hospitality managers. The chapter reviews the three ISO labelling types and discusses those in relation to the hospitality industry. The chapter presents the differences and similarities between process-based and p ­ erformance-based certification. The chapter discusses the role of accreditation and introduces the Global Sustainable Tourism Council along with the main criteria. Micro-­certification is discussed, and a step-by-step hotel certification process is described. It continues with a discussion of the various types of environmental awards used in hospitality. It discusses the challenges and opportunities in certification and ecolabelling and concludes by introducing the Green Key criteria.

12 Marketing and Consumer Behaviour Chapter 12 examines the changes in consumer behaviour in relation to sustainable development. The chapter examines the importance for hospitality businesses to identify the motives of responsible guests and the factors influencing a responsible consumption decision process. The chapter also discusses the techniques used by hospitality operations to involve consumers in sustainable management practices. The chapter also defines the concept of ‘sustainable marketing’. The chapter examines responsible marketing as part of a company’s ethical and sustainable strategy.

13 Environmental Management Systems and Key Performance Indicators Chapter 13 starts by defining ‘environmental management system’ (EMS) and provides examples such as ISO and EMAS. The chapter discusses the benefits and the implementation stages of an EMS. Environmental performance indicators (EPIs) and sustainability performance indicators (SustPIs) are defined, and auditing, including online self-auditing platforms, is discussed.

14 ESG, Environmental Accounting and Externalities Chapter 14 introduces Environmental, Social and Governance concepts ­indictors and ratings. It continues by defining the concept of ‘externalities’ and explores the role of externalities in decision-making. The chapter identifies

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and assesses the positive and negative externalities of hospitality operations, and introduces the concept of environmental accounting. It also discusses the concept of life-cycle assessment and explores the possibilities in accounting for environmental externalities in the hospitality industry.

15 Investing and Financing Chapter 15 explores the barriers and motivators to investing in sustainable hospitality. Consequently, the financing schemes available to the development of sustainable hospitality are explored. The chapter identifies grants, loans and other funding opportunities available to hospitality businesses in regard to environmental impact mitigation. Environmental, social and governance (ESG) issues such as indicators and ratings are reviewed. The various methods used by hospitality businesses to make informed decisions on sustainability investment (payback period, return on investment and internal rate of return) are discussed, and the ‘sustainability performance framework’ is presented.

16 Reporting and Communicating Chapter 16 explores the methods used to communicate sustainability performance. To do so, it defines and introduces the purpose of reporting sustainability and discusses the value of benchmarking sustainability performance as well as triple-bottom line reporting. The chapter distinguishes between the many established reporting initiatives (EMAS, GRI, ISO and AA1000) and explores the applicability of established reporting initiatives to the hospitality industry. Finally, the chapter presents the four Cs of sustainable reporting and provides industry recommendations on how to handle the use of claims in communicating sustainability.

17 Stakeholder Relationships and Partnerships Chapter 17 identifies the underlying principles of sustainable business management and discusses the concept of corporate social responsibility (CSR). It explores the relationship between shareholders’ value and stakeholders’ interests. The factors differentiating CSR from corporate philanthropy are presented, and the benefits and critiques of CSR are discussed.

18 Social Entrepreneurship Chapter 18 identifies and describes alternative forms of corporate governance including creating shared value (CSV) and social entrepreneurship, and discusses the relevance of each strategy in the hospitality industry.

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19 Challenges of Operating in the Global South Chapter 19 draws on various topics discussed in previous chapters and relates them to key challenges of managing hotels in the Global South. The chapter continues by discussing the connection between poverty, training and the mobility of workforces. The challenge of economic leakages to the sustainable development of destinations is discussed. A case study providing insights into operating hotels off grid is presented, alongside the managerial implications of being unable to draw on a local infrastructure. The chapter concludes by exploring the common mistakes in resource management of hospitality operations in the Global South.

Glossary At the back of the book, there is a full glossary of terms used. These terms are shown in bold on their first occurrence in the chapters.

Companion Website Resources A companion website accompanies this book at www.routledge.com/cw/­legrand and includes additional resources for both students and lecturers.

Student Resources • •

A test bank of questions for each chapter for students to test and deepen their understanding. Links to relevant videos and websites to provide further insight into the industry.

Lecturer Resources • •

PowerPoint slides of all the tables, line figures and photographs from each chapter. Additional case studies to provide further examples of theory in practice within the hospitality industry.

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We gratefully acknowledge the contribution of Philip Sloan to previous editions of this book. We ought first to thank our families and friends for their support, who relentlessly encouraged our endeavour and shared our effort in assisting the book project. We are thankful to Susanne Eichholz-Legrand and Veronika Seibt for the numerous hours of proofreading. A special thank you to Maja Dimnik, CEO & Founder of the WORLD OF GLAMPING for researching and creating contacts to many of the entrepreneurs resulting in case studies within this new edition. The support of Jose M. Tena Coronado and Victoria Szczecko in researching and writing this book is also gratefully acknowledged. We are grateful to our affiliations, the IU International University of Applied Sciences, Germany, and the Department of Health & Wellness Design, School of Public Health at Indiana University, which have supported our research efforts concerning sustainable hospitality management, while being intellectually in debt to those colleagues leading us to a new scholarly horizon. We are grateful to the small- and medium-sized hospitality operations as well as the large international hospitality players, the many consulting entrepreneurs and other supporting organisations which constantly strive to improve business in a sustainable manner and have provided this book with so much valuable material. Finally, we would pass on our sincere thanks to all the students around the globe who have over the years provided valuable support in terms of research, ideas and discussion on the theme of sustainability in the hospitality industry. Stay curious!

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for Sustainable Development

CHAPTER OBJECTIVES The objectives for this chapter are: • To explore the ongoing challenges for the planet and its inhabitants • To describe the cause and effects of climate change • To identify the reasons for the over-exploitation of finite resources • To recognise the significance of fresh water depletion • To discuss the consequences of over-population

DOI: 10.4324/9781003081128-1

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• To establish the linkages between the economy and carrying capacity • To interpret the limits of the current economic system • To describe the challenges linked to globalisation • To explore the concept of sustainable economics

Ongoing Challenges for the Planet Humankind consumes what nature has to offer and in return creates waste and depletes the Earth’s natural reserves. All our actions have an impact on the Earth’s ecosystems that are only able to renew themselves at low levels of consumption. For thousands of years, humankind’s impact on the environment was negligible. Enter: industrialisation of manufacturing and agriculture, burning of fossil fuels on a large scale and a general increase in living standards since the 1950s. The global community entered the time of the ‘Great Acceleration’ in which resource consumption, greenhouse gas (GHG) emissions and global warming accelerated as never seen before (Steffen et al., 2015). We now consume more of the Earth’s resources than the planet can regenerate; the planet is in a state of ‘ecological overshoot’. In 2021, the Earth Overshoot Day was on July 29th. On that day, humanity had exhausted nature’s budget for the entire year and operated beyond the natural carrying capacity of the Earth (Global Footprint Network, 2021). Our current consumption levels are far too high and action needs to be taken as the planet’s non-renewable resources are being depleted, creating a climate crisis in the process. This depletion is accelerated by the continuous growth of the world population and its changing consumption patterns.

Climate Change Mounting scientific evidence proves that the changing climate we experience today is a consequence of human activity during the past 150 years. The recent Climate Change 2021 report of the Intergovernmental Panel on Climate Change (IPCC, 2021) stated that ‘it is unequivocal that human influence has warmed the  atmosphere, ocean and land. Widespread and rapid changes in the atmosphere, ocean, cryosphere and biosphere have occurred’ (p. 5). Within the troposphere (the lower part of the atmosphere about 10–15 km deep) it is perfectly normal to find GHGs. When sunlight reaches the Earth, some of it is converted to heat. GHGs absorb some of the heat and trap it near the Earth’s surface, so that the Earth is warmed up. The most important greenhouse gases are carbon dioxide (CO2), chlorofluorocarbons (CFCs), nitrogen oxides (N2O)

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and methane (CH4). This process is commonly known as the greenhouse effect. Life, as we know it, exists only because of this natural greenhouse effect which regulates the Earth’s temperature. Without these gases, the surface temperature on Earth would be approximately 30°C lower. However, there is an increase in the concentration of these gases which have exceeded the amount sequestered in the biomass, the oceans and other sinks. This has led to increases in air temperatures around the globe since 1880, when modern record-keeping began (NASA, 2011) and is known as global warming. The American National Oceanic and Atmospheric Administration announced that the 2020 Earth surface temperature was the second-hottest ever recorded, just 0.02°C cooler than the all-time record of 1.0°C above the twentieth-century average in 2016. Overall, ten of the warmest years on Earth ever recorded occurred since 2005 (NOAA, 2021). The consequences of this development are clear and present by now. In 2020 alone, a record number of 103 storms occurred (NOAA, 2021), wildfires in the ‘U.S., Australia, the Arctic and Brazil made it the fifth most expensive year for wildfire losses on record’ (Masters, 2021, para. 1), the Amazonian rainforest saw the greatest deforestation rate this decade and turned from an important carbon sink to being a net CO2 emitter, due to deforestation and land-use change (Gatti et al., 2021). The IPCC has long warned ‘taken as a whole, the range of published evidence indicates that the net damage costs of climate change are likely to be significant and to increase over time’ (IPCC, 2007). Consequences of climate change are multiple and beyond the scope of this chapter. However, key consequences from climate disruptions are already affecting the tourism and hospitality industry. These include but are not limited to (1) a surge in extreme weather patterns; (2) added pressure on natural ecosystems and their role as buffers; (3) disruption in water supply and water quality; (4) unstable food supply; and (5) increase in infrastructure damage from sea level rise or extreme heat (National Climate Assessment, 2014). Scientists have so far measured a global mean sea level (GMSL) rise of about 19 cm from 1900 to 2019, accelerating over time. Depending on the future GHG emission scenarios, the GMSL will continue to rise to 0.61–1.10 metre (high emissions), or 0.29–0.59 metre (low emissions) by 2100. In the event of faster melting of the polar ice sheets, GMSL could even rise to 2.4 metre in 2100 and 15 metre in 2300 (European Environment Agency, 2021; IPCC, 2021). Even sea level rise projections under low emission scenarios are extremely serious for all nations, especially coastal communities and low-lying island states (e.g., Pacific islands such as the Marshall Islands and Kiribati). About 190 million currently live on land that will likely be affected by the low emission case sea level increase by 2100; the high-emission scenario will affect up to 630 million people. The civil implications are tremendous. Imagine twice the population of the US displaced from their homes, because of flooding. The Global South will likely be hit the hardest, because of its densely populated, low-lying coastal areas (Kulp & Strauss, 2019). Moreover, they lack resources to respond to this form of environmental degradation. Sea level rising is certainly a challenge for the coastline towns and cities in the Netherlands as

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well, but finance for adaptation measures and emergency response programmes is available. Bangladesh, similar to the Netherlands, faces major challenges with sea water levels but lacks the means for adaptation.

Loss of Biodiversity Some scientists call our current level of biodiversity loss the ‘6th mass extinction’ or ‘biological annihilation’ (Ceballos, Ehrlich, & Dirzo, 2017). There is little doubt that the rapid decline in our biological diversity and ecosystems is caused by just 0.01% of all lifeform biomass: humans (Bar-On, Phillips, & Milos, 2018). Professor Rahbek from the University of Copenhagen (2012) emphasises how menacing this development is: ‘The biodiversity crisis, the rapid loss of species and the rapid degradation of ecosystems, is probably a greater threat than global climate change to the stability and prosperous future of humankind on Earth’. Biodiversity is so crucial for the survival and well-being of humans and the planet, because of the ecosystem services it provides: the many benefits from ecosystems such as pollination and the provision of food; the assimilation of waste and GHGs; the provisioning of rain, groundwater and oxygen; or the positive impact of staying in nature to the human spirit. All this must be protected, valued and restored. The global natural capital and the contribution to human well-being and economic prosperity is valued anywhere between US$125 trillion/year to US$145 trillion/year (Constanza et al., 2014). Additionally, recent forms of zoonosis, such as the COVID-19 pandemic, have been attributed to the loss of biodiversity and increased human–animal interactions, making future zoonotic disease outbreaks very likely (Keesing & Ostfeld, 2021). From a pure economic prosperity standpoint, destroying biodiversity is similar to ‘sawing off the branch we’re sitting on’. The biodiversity crisis is attributed to a number of factors, predominantly climate change and land-use change (Guo, Lenoir, & Bonebrake, 2018; IPCC, 2019). In Europe, this translates into 25% of European animal species facing the risk of extinction with only 17% of assessed habitats having a favourable conservation status (European Commission, 2011). Most of Europe’s ecosystems are assessed to be degraded (European Commission, 2011). The same can be said about many regions around the globe. WWF’s Living Planet Report shows that between 1970 and 2016 the populations of mammals, birds, amphibians, reptiles and fish decreased by about 68% worldwide (Almond, Grooten, & Petersen, 2020). Extinction rates are 100 to 1,000 times higher than baseline rates and many ecosystems have degraded beyond repair; meanwhile humankind still pays out subsidies to industries damaging nature in the range of US$4 to 6 trillion a year. In sum, ‘we are destroying biodiversity, the very characteristic that until recently enabled the natural world to flourish so abundantly. If we continue this damage, whole ecosystems will collapse. That is now a real risk’, notes Dasgupta (2021, p. 1) in his recent comprehensive analysis of the Earth’s biodiversity.

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Over-Exploitation of Finite Resources Materials removed from the Earth are needed to provide humans with food, clothing, energy, medical equipment, transportation, IT infrastructure and housing in the process of continuous, and expected, upgrades in standards of living. Some of the materials needed are renewable resources, such as agricultural and forestry products, while others are non-renewable and thus finite. Depletion of natural resources has dire consequences in any case, because it threatens the functioning of ecosystem services and thus the livelihoods and well-being of people on Earth. From an economic standpoint, Lampert (2019) points out that over-exploitation of natural resources inevitably leads to a decline in economic growth. Especially problematic is our reliance on energy from non-renewable sources, mainly oil, natural gas, coal and radioactive elements, such as uranium. Since 1971, the world’s total energy supply increased 2.6 times. In 2019, oil, coal and natural gas, the so-called fossil fuels, made up about 80% of our global energy production (IEA, 2021). Renewable energy sources, such as wind and solar power are increasing, but the IEA warns that their growth does not make up for the global increase in energy demand from a growing population and increasing industrialisation in the planet. Even though the COVID-19 pandemic has dealt a blow to the world’s hunger for energy because of reduced economic activity and thus reduced GHG emissions slightly, ‘as things stand, the world is not set for a decisive downward turn in emissions’ overall (IEA, 2020, p. 21). Other resources see a similar fate, with overconsumption mainly driven by affluent consumers of the Global North. Global material resource use is expected to reach nearly 90 billion tonnes in 2017 and may more than double from 2015 to 2050, with high-income countries currently consuming 10 times more per person than low-income countries and the planetary boundaries being pushed beyond their limits. (IRP, 2017, p. 6) Sand is one of those resources that are not ‘finite’, strictly speaking, but are running out quickly, because the rate at which it is exploited far exceeds its natural production. You could say, it is ‘quasi-finite’ in the light of current over-exploitation. Therefore, ‘sand scarcity’ is an emerging issue, due to buildings and transport infrastructure being built at an increasing pace around the globe. The situation is aggravated by sand extraction not being regulated (Bendixen et al., 2019; Torres et al., 2017). Phosphate is another resource that does not receive a lot of media attention, but its scarcity will likely cause significant challenges for global food supply in future. Plants need a variety of macro- and micro-nutrients, but phosphate is key for healthy plant growth. It is found only in certain areas of the world, mostly within rocks, and cannot be produced by plants themselves. Phosphate rock is considered a non-renewable resource likely to deplete in 30–80 years at current rates of consumption (Cordell, Drangert, & White, 2009). It would be fair to say that a

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depletion of natural phosphate resources might put the industrial agricultural food production at significant risk. Water is also a finite resource essential to life and, therefore, deserves special attention.

Fresh Water Depletion In 2002, the United Nations asked 1,500 experts to study the social effects of water scarcity in developing countries. One year later, teams of executives from the world’s largest water, oil and chemical companies tried to forecast the effect of future water scarcity on their industries and national economies. Both groups reported back with alarming unanimity and predicted supply, health and economic crises coming sooner rather than later if there is no radical change in the way water is used (World Water, 2003). According to the UN’s World Water Development report (2021b), fresh water is in fact scarce, and becoming scarcer. Over 2 billion people already live in areas subject to water stress. Some 3.4 billion people, 45% of the global population, lack access to safely managed sanitation facilities. According to independent assessments, the world will face a global water deficit of 40% by 2030. This situation will be worsened by global challenges such as COVID-19 and climate change. (p. vi) Reasons for water shortages are many. Societies around the globe have taken control of a majority of all accessible water runoffs such as rivers and lakes and thus, with changes in global climate patterns, fresh water for all is a challenge (leading to crises and conflict in many water-scarce regions). Water resources are also affected by pollution, for example the various waste streams from industrial runoffs (mining accidents) to agricultural fertilisers or human waste (primitive sewage treatment – or lack thereof – from some paradise-like island hotels and resorts). Finally, extreme weather patterns as discussed earlier in the chapter may lead to more dire consequences for the quantity and quality of water available as drought, floods or mudslides affect water resources. However, the major water deficits are caused by over-pumping of the water aquifers and wasteful irrigation techniques. Lester Brown, president of the Earth Policy Institute, talks about nations reaching ‘peak water’ from over-pumping which directly affects food supply (Earth Policy Institute, 2013). Many have discussed the concept of ‘peak oil’, the point in time when the maximum oil extraction is reached, after which extraction starts to decline. Brown argues that humans can grow food without oil, but not without water. In 2021, agriculture used 69% of global fresh water resources (UN, 2021b, p. 4). As water becomes scarcer, some countries may have to give up growing certain crops and rearing animals. One kilogramme of beef needs about 15,000 litres of water, one

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kilogramme of rice requires 3,500 litres and 1 cup of coffee about 140 litres (UN WATER, 2014). When the water needed to grow crops has to be pumped from hundreds of metres below ground, the true cost of food on restaurant plates and buffets becomes clearer. Rather than digging deeper and moving water further, the future will be about recycling water. Waste water can be collected from kitchens, gardens and bathrooms, treated and reused. The technology is proven, and it is being used from golf courses in southern Spain to desert farms in Jordan and breweries in Ghana. Singapore, a city right on the equator but with water shortage is treating its waste water in one of its four NEWater factories. Sufficient potable water is an essential driver to quality of life and a key component of the tourism offer, from luxurious swimming pools to lush, green hotel gardens. Most coastal cities around the world and even London may soon build a plant. In most cases, however, desalination is currently the most expensive and least sensible option. The downsides of desalination are the enormous amounts of power needed and the vast quantities of salt that are extracted and must be disposed of. In the next decade, however, the cost is expected to fall as the technology improves, and desalination plants will increasingly be linked to waste heat from factories or solar power stations.

Over-population In 2019, about 7.7 billion people inhabited this planet. According to the latest prediction by the United Nations, the Earth will be home to roughly 9.7 billion people in 2050 and 11 billion by the end of the century (UN, 2021a). Demographers also project that life expectancy will keep rising while birth rates drift steadily downward. It appears difficult to square this projected growth in the population with the ecological limits that we appear to be meeting and perhaps surpassing. This would be the Malthusian catastrophe. There is little scientific dispute that the world is heading towards a warmer and harsher climate, less dependable water and energy supplies, less intact ecosystems with fewer species, more acidic oceans and less naturally productive soils. Climate change, water aquifer depletion and natural resource depletion all provide daunting challenges to the present and future population. On the other hand, many argue that technological innovations and change in behaviour are the best tools to face the challenges depicted here. And so, it is certainly possible that ingenuity, resilience and effective governance will manage the stresses humanity faces in the decades ahead and will nevertheless keep life expectancy growing. Slashing per capita energy and resource consumption would certainly help. A sustainable population size will be easier to maintain, if societies also assure women more education, autonomy and decision-making in family planning (Hawken, 2018). This may be the century where innovation, education, prudent management and strong political leadership have never appeared so important.

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Considerations: The Economy Present and Future Economy and Carrying Capacity The economy, the human population and the Earth’s ecosystems are all inextricably linked. What affects one affects another. The change in state of each one of these components affects the state of the other components. The present economic model creates momentum for the processes it creates and drives growth. However, the economy is constrained by a wider ecosystem carrying capacity. Carrying capacity is not simply caused by the finite limits of natural resources. It is also the ability of a species to access its essential resources. As those resources become constricted, the social functioning of a species is affected. In the case of mankind, economic patterns, governments and infrastructures are required to change.

Limits to an Economic System The current economic system has been described as ‘a financially profitable, nonsustainable aberration in human development’ (Hawken et al., 1999, p. 5), but no one can deny that it has been prodigiously productive. Nearly everyone alive in Western Europe today has a higher real income than they would have had if capitalism had never existed. Defenders of capitalism argue that it offers everyone the benefits that were enjoyed only by the bourgeoisie, the settled middle class, 150 years ago. The bourgeoisie owned capital and had a reasonable level of security and freedom. Indeed, in the nineteenth century, the majority of people had very little. They lived by selling their labour, more often than not on a daily basis, and when the mill or the farm had less work, they faced hard times. The following scenario, seen from the perspective of a classical economist, may give food for thought: As capitalism develops, an increasing number of people will be able to benefit from it. Fulfilling careers will no longer be the prerogative of a few. People will no longer struggle from month to month to get by on a meagre wage without security. Protected by a cushion of economies, a house they own and a decent pension, they will be able to plan their lives without fear. With the growth of democracy and the spread of wealth, no-one needs to be shut out from the aspirations for a better life. Everybody can be middle-class. In fact, in many countries over the past 20 or 30 years, the opposite has been happening. Few people have job security, life-long careers are distant memories and the trades and many professions of the past have largely gone. While previous generations could comfort themselves with significant savings and property ownership, credit has now become so tight and employment so irregular that house purchasing is a distant dream for many. A dwindling minority

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can count on a pension on which they can comfortably live but many see their working lives extending into what was until recently considered to be the golden years. The future is insecure; the art of living from day to day is becoming a necessity for many. For the more fortunate individuals, who do have work, disposable incomes are far higher than in the past and the remnants of the post-war welfare state still provide care, infrastructure and medical treatment, albeit often limited. The current neoliberal economic model, build on the promise of universal human development and better quality of life, has not worked for everyone. Its foundations of a globalised economy have recently been shaken by the outbreak of the zoonotic COVID-19 virus and the ensuing pandemic. Humanity woke up to the fact that the world as we know it rests on an enormous and extremely fragile network … that has been building for centuries but that in the past two decades has grown through seamless connection to modern technology. Our way of life has shifted — from individuals to markets, from localized to globalized. So far, this interconnectivity has largely been a strength, creating a network so big that each of its smaller nodes can be imperfect or fail while the others persist. But much like a virus exploits a small vulnerability, creating a chain of reactions that allow it to weaken its host, a true global pandemic could work its way through the interconnected ecosystems that support our present way of life. (Warzel, 2020, p. 12) And COVID-19 did, making its way into every national economy, as governments struggled to balance personal freedom of citizens, carrying capacity of health systems and economic interests through a series of lockdown measures. The pandemic was ongoing in the time of writing this book (Summer 2021) and had left a significant mark on the global economy. Stock indices, employment rates and country GDPs plummeted in early 2020. International tourism came to what felt like a first-time-in-history stand still (Jones et al., 2021). In the course of 2021 most economic indicators had recovered, even though unemployment remained a serious issue and international tourism had by no means bounced back to pre-pandemic levels. The pandemic’s future development is unpredictable and future mutations might well mean further economic and social challenges. Already, the COVID-19 outbreak is a powerful reminder of two things: A hyper-globalised and interconnected world exacerbates the outbreak of pandemics and its ability to survive is only as strong as its weakest health system. Secondly, the world economy is neither particularly resilient, nor inclusive. The pandemic has wreaked havoc in much of the Global South and caused global hunger levels to increase once again. For this situation to change longterm, we must reconsider the value we place on biodiversity and more localised economic systems. A new style of sustainable economics is needed.

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Towards Sustainable Economics Some environmentalists and economists argue in favour of a sustainable economy which implies including all resources that contribute to sustainable human activity. In the current market economy allocation system, most non-marketed natural and social capital assets and services, that are critical contributors to human well-being and that of the planet, are excluded. In sustainable economics, contributions of natural and social capital are included and approximate to real economic efficiency. In a sustainable economy, the use of renewables is maximised, such as from wind, water, the sun or other renewable resources for power production. It means that society would desire a more constant Gross National Product (GNP), with some sectors growing and others declining at an equal and opposite rate. Those sectors of the economy that increased the sustainability of the environment, such as renewable energy or the production of long-lasting goods, would be encouraged to grow. Where new technologies make progress possible without decreasing sustainability, growth would be stimulated. Likewise, growth would be encouraged in service industries where a high proportion of human capital is involved. Rather than consuming natural resources and depleting biodiversity, the sustainable economy seeks to re-use resources, as exemplified by the circular economy, leaving natural resources as a back-up supply. Biological capital is viewed as being of equal importance to financial capital. In order to stimulate the sustainable economy, incentive systems would be used to reward those who minimise the toll they exert on the environment, and produce environmentally friendly items for human use. Such a system is already in place at community level. The levels of consumerism that exist today in many developed areas around the globe are simply not sustainable. The concept of luxury needs to be redefined, not in terms of the number of cars parked in the driveway or by the size of one’s house, but in the levels of well-being and happiness.

Exercises 1. GROUP DISCUSSION & DEBATE Today’s situation: Spaceship or Lifeboat? Read the article entitled ‘The Economics of the Coming Spaceship Earth’ by Kenneth E. Boulding (1966) (link to article in the reference list). Then read the article titled ‘Lifeboat Ethics: The Case against Helping the Poor’, by Garrett Hardin (1974) (link to article in the reference list). • Which analogy, Hardin’s lifeboat or Boulding’s spaceship, more accurately describes the current condition of human civilisation on Planet Earth? • Provide some argumentation and be ready to discuss in class.

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2. SMALL GROUP RESEARCH & PRESENTATIONS OR WRITTEN ASSIGNMENT Global Challenges and the Hospitality Industry: Burying its head in the sand or facing its responsibilities? Rationale for Research: • The human community faces an array of choices about the quality of our lives and the state of the global environment. Each of those choices will help to determine what kind of world our children and grandchildren will live in. One possibility is that at long last we will pave a path towards environmental stewardship and sustainable development. But it is also quite possible that we will travel a less enlightened course, running down the earth’s natural capital and severely limiting the choices our descendants will face. Source: (Global Environment Facility, 2002, p. viii.) • Based on your own readings of supporting material from the Internet, academic/scientific journals, reports from the United Nations or other relevant sources, in small groups research and present one of the following 13 global challenges we, our planet and coming generations are facing. • Each group prepares a max. five pages report and a max. 20 min. presentation. • The written research should look at the topic from two angles: (1) descriptive and (2) analytical: 1. In the descriptive section, provide an overview of the global challenge. The goal here is to outline the main issues and summarise the challenge in a generally understandable way. 2. In the analysis section, you should question why this topic is of importance, trying to answer the following questions: Should the hospitality (and tourism) industry be concerned with this topic? Does the hospitality (and tourism) industry hold some responsibility in contributing to the chosen challenge? Does the hospitality (and tourism) industry hold some responsibility in finding and applying solutions to mitigate the challenge? The topics to choose from are: 1. Climate change 2. Water 3. Energy 4. Forests 5. Biodiversity 6. Food & Nutrition 7. Air pollution 8. Waste 9. Chemicals

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10. Population growth 11. Poverty and inequality 12. Health and disease 13. Climate refugees

References Almond, R. E. A., Grooten, M., & Petersen, T. (eds) (2020). Living planet report 2020: Bending the curve of biodiversity loss. WWF. https://www.wwf.de/living-planet-report Bar-On, Y. M., Phillips, R., & Milo, R. (2018). The biomass distribution on earth. PNAS, 115(25), 6506–6511. https://doi.org/10.1073/pnas.1711842115 Bendixen, M., Best, J., Hackney, C., & Iversen, L. L. (2019). Time is running out for sand. Nature, 571, 29–31. https://doi.org/10.1038/d41586-019-02042-4 Boulding, K. E. (1966). The economics of the coming spaceship earth. In: H. Jarrett (ed.) Environmental quality in a growing economy (pp. 3–14). Resources for the Future/Johns Hopkins University Press, Baltimore, MD. http://arachnid.biosci. utexas.edu/courses/THOC/Readings/Boulding_SpaceshipEarth.pdf Cordell, D., Drangert, J., & White, S. (2009). The story of phosphorus: Global food security and food for thought. Global Environmental Change, 19(2), 292–305. Ceballos, G., Ehrlich, P. R., & Dirzo, R. (2017). Biological annihilation via the ongoing sixth mass extinction signaled by vertebrate population losses and declines. PNAS, 114(30). https://doi.org/10.1073/pnas.1704949114 Constanza, R., de Groot, R., Sutton, P., van der Ploeg, S., Anderson, S. J., Kubiszewski, I., Farber, S., & Turner, R. K. (2014). Changes in the global value of ecosystem service. Global Environmental Change, 26, 152–158. Dasgupta, P. (2021). The economics of biodiversity: The Dasgupta review (Abridged Version). HM Treasury. https://assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/957292/Dasgupta_Review_-_Abridged_ Version.pdf Earth Policy Institute (2013). Lester Brown give a seminar on peak water. www.earthpolicy.org/press_room/C69/lester_brown_gives_seminar_on_peak_water European Commission (2011). The EU biodiversity strategy to 2020. http://ec.europa.eu/ environment/nature/info/pubs/docs/brochures/2020%20Biod%20brochure% 20final%20lowres.pdf European Environment Agency. (2021). Indicator assessment: Global and European sea level rise. https://www.eea.europa.eu/data-and-maps/indicators/sea-level-rise-7/ assessment Gatti, L. V., Basso, L. S., Miller, J. B., Gloor, M., Domingues, L. G., Cassol, H. L., … & Neves, R. A. (2021). Amazonia as a carbon source linked to deforestation and climate change. Nature, 595(7867), 388–393. https://doi.org/10.1038/s41586021-03629-6 Global Footprint Network. (2021). Earth overshoot day. https://www.footprintnetwork. org/our-work/earth-overshoot-day/ Guo, F., Lenoir, J., & Bonebrake, T. C. (2018). Land-use change interacts with climate to determine elevational species redistribution. Nature Communications, 9, 1315. https://doi.org/10.1038/s41467-018-03786-9

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Hardin, G. (1974). Lifeboat ethics: The case against helping the poor. Psychology Today, 8, 38–43. www.garretthardinsociety.org/articles/art_lifeboat_ethics_case_ against_helping_poor.html Hawken, P. (ed.) (2018). Drawdown: The most comprehensive plan ever proposed to reverse global warming. Penguin Books. Hawken, P., Lovins, A., & Lovins, H. (1999). Natural capitalism: Creating the next industrial revolution. Boston: Little, Brown and Company. IEA. (2020). World energy outlook 2020: Executive summary. https://iea.blob.core. windows.net/assets/80d64d90-dc17-4a52-b41f-b14c9be1b995/WEO2020_ES.PDF Intergovernmental Panel on Climate Change (IPCC). (2007). IPCC fourth assessment report: Climate change 2007. Intergovernmental Panel on Climate Change. www. ipcc.ch/publications_and_data/ar4/wg2/en/spmsspm-c-15-magnitudes-of.html. International Energy Agency (IEA). (2021). World energy balance: Overview. https:// www.iea.org/reports/world-energy-balances-overview International Resource Panel (IRP). (2017). Assessing global resource use: A systems approach to resource efficiency. United Nations Environment Programme. https:// www.resourcepanel.org/reports/assessing-global-resource-use IPCC. (2019). Climate change and land: An IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems. https://www.ipcc.ch/site/assets/uploads/ sites/4/2021/02/210202-IPCCJ7230-SRCCL-Complete-BOOK-HRES.pdf IPCC. (2021). Climate change 2021: The physical science basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [V. Masson-Delmotte, P. Zhai, A. Pirani, S. L. Connors, C. Péan, S. Berger, N. Caud, Y. Chen, L. Goldfarb, M. I. Gomis, M. Huang, K. Leitzell, E. Lonnoy, J. B. R. Matthews, T. K. Maycock, T. Waterfield, O. Yelekçi, R. Yu & B. Zhou (eds)]. Cambridge University Press. Jones, L., Palumbo, D., & Brown, D. (2021, January 24). Coronavirus: How the pandemic has changed the world economy. BBC News. https://www.bbc.com/news/ business-51706225 Keesing, F., & Ostfeld, R. S. (2021). Impacts of biodiversity and biodiversity loss on zoonotic diseases. Proceedings of the National Academy of Sciences, 118(17). https://doi.org/10.1073/pnas.2023540118 Kulp, S. A., & Strauss, B. H. (2019). New elevation data triple estimates of global vulnerability to sea-level rise and coastal flooding. Nature Communications, 10, 4844. https://doi.org/10.1038/s41467-019-12808-z Lampert, A. (2019). Over-exploitation of natural resources is followed by inevitable declines in economic growth and discount rate. Nature Communication, 10(1419). https://doi.org/10.1038/s41467-019-09246-2 Masters, J. (2021, January 4). Reviewing the horrid global 2020 wildfire season. Yale Climate Connections. https://yaleclimateconnections.org/2021/01/reviewing-thehorrid-global-2020-wildfire-season/ NASA (2011). Global climate change: Vital signs of the planet. National Aeronautics and Space Administration http://climate.nasa.gov/news/?FuseAction=ShowNews& NewsID=467. National Climate Assessment (2014). Climate change impacts in the United States. U.S. Global Change Research Program. http://nca2014.globalchange.gov/.

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National Oceanic and Atmospheric Administration (NOAA). (2021). 2020 was earth’s 2nd-hottest year, just behind 2016. https://www.noaa.gov/news/2020-was-earth-s2nd-hottest-year-just-behind-2016 Steffen, W., Broadgate, W., Deutsch, L., Gaffney, O., & Ludwig, C. (2015). The trajectory of the Anthropocene: The great acceleration, The Anthropocene Review, 2(1), 81–98. https://doi.org/10.1177/2053019614564785 Torres, A., Brandt, J., Lear, K., & Liu, J. (2017). A looming tragedy of the sand commons. Science, 357(6355), 970–971. https://doi.org/10.1126/science.aao0503 UN. (2021a). Global issues: Population. https://www.un.org/en/global-issues/population UN. (2021b). World water development report 2021. https://www.unwater.org/ publications/un-world-water-development-report-2021/ UN WATER (2014). Water for food. The United Nations Inter-Agency Mechanism on All Freshwater Related Issues, including Sanitation. www.unwater.org/topics/ water-and-food/en/. University of Copenhagen. (2012, January 20). Biodiversity crisis is worse than climate change, experts say. ScienceDaily. www.sciencedaily.com/releases/2012/01/ 120120010357.htm Warzel, C. (2020, March 5). The coronavirus will test our new way of life. New York Times, Global Edition. https://www.nytimes.com/2020/03/02/opinion/coronaviruseconomy-amazon-uber.html World Water (2003). Water for people water for life. World Water Assessment Programme. The World Water Development Report. http://unesdoc.unesco.org/ images/0012/001295/129556e.pdf.

Additional Resources For an excellent overview of the Great Acceleration with individual graphs on various indicators, visit: www.anthropocene.info Personal footprint calculator: www.footprintcalculator.org

Additional Material Go to www.routledge.com/cw/legrand to find PowerPoint slides of all the figures and tables from the book, additional case studies, a test bank of questions and extra links to useful videos.

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Development and the Hospitality Industry

CHAPTER OBJECTIVES The objectives for this chapter are: • To explore the ongoing challenges for the planet and its inhabitants • To describe the cause and effects of climate change • To identify the reasons for the over-exploitation of finite resources • To recognise the significance of fresh water depletion DOI: 10.4324/9781003081128-2

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• To discuss the consequences of over-population • To establish the linkages between the economy and carrying capacity • To interpret the limits of the current economic system • To describe the challenges linked to globalisation • To explore the concept of sustainable economics • To illustrate sustainable hospitality using best practices • To review important initiatives supporting sustainable hospitality • To discuss two philosophical approaches to the planet’s challenges

Emerging Challenges for the Planet Human activities have influenced the Earth’s ecosystem for thousands of years. By now, the negative consequences of human actions are unmistakable. Because it is one of the larger industries in the world, the hospitality sector is hungry for resources, thus it is a contributor to many issues and at the same time also directly affected by changes in the environment. Whether operating a ski resort in the Alps or a coastal retreat, whether a restaurant sourcing its food locally or organically, the effects of climate change are felt first-hand. This chapter explains why hospitality operations need to manage their environmental and social impacts and what exactly is involved in running a profitable business in line with the principles of environmental stewardship and to the benefit of society. In short, the chapter seeks to explore, discuss and define the concept of sustainable hospitality management.

Problem Definition The pre-COVID-19 boom in tourism and hospitality has given rise to record numbers of international travellers, millions of new jobs and economic opportunities in countries around the world. In 2019, as the world’s largest service industry, tourism and hospitality contributed an estimated 10.4% to global Gross Domestic Product (GDP) taking into consideration the direct, indirect and induced impacts and supported 334 million jobs, an estimated 1 out of 10 jobs (WTTC, 2021). With continuous growth since the Global Economic Crisis in 2008/2009, the industry recorded 1.46 billion international tourist arrivals and US$1.7 trillion in export earnings, making it the third largest export earner after fuels and chemicals, in 2019. The following year was unprecedented in the history of tourism. The COVID-19 pandemic and the associated travel

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restrictions saw international tourist arrivals drop by 74% to 381 million. The industry’s gross domestic product (GDP) contribution was cut in half to 5.5% and 62 million jobs were lost in 2020. Despite ongoing vaccination and easing travel restrictions, tourist arrivals remained 85% below 2019 figures in January to May 2021 (UNWTO, 2021a & b). The recovery of travel and tourism is slow and will perhaps take years, if it ever recovers fully. Given the magnitude of the crisis, forecasting tourism demand remains a formidable challenge (Zhang et al., 2021). It would be surprising, however, to suddenly see the eagerness to travel and explore vanish from the human spirit. While the industry is struggling to survive, it is now time to sit back and ponder: Do we want to ‘bounce back’ to how things used to be pre-COVID-19, or do we not rather want to ‘bounce forward’ to a better, more sustainable and resilient form of tourism and hospitality? While the economic impacts were significant, the industry had and still has substantial negative impacts on society and the environment and is therefore faced with a range of increasingly pressing challenges.

Complexity of Hospitality When describing a phenomenon such as the hospitality industry, it is difficult to define not only its size and activities but also its role in society. The diversity of its products and services, from luxury hotels, to cruise ships, casinos, catering firms and even hot dog stands outside sports stadiums, defies the conventional definition of an industry as being a set of firms offering the same products. Naturally, the provision of hotels falls within the general context of hospitality, an aspect of human activity which has important social dimensions as well as meets the physiological needs of shelter and comfort. From an international perspective the notion of a hotel is understood as a culturally bound phenomenon that represents a certain set of assumptions. Managing a hotel in the twenty-­ first century is a challenging task. Welcoming and taking care of guests from different backgrounds and offering food and shelter are always constant but the demands made on hoteliers have drastically changed. The modern day hotelier requires an in-depth knowledge in not only the traditional fields of operations, finance, marketing, customer relationships, branding, media and communication but also in stakeholder relationships and increasingly over the past decade: environmental management, ethics and social responsibility. Many hotels now consist of multiple units including restaurants, bars, clubs, entertainment facilities, spas and recreation facilities operating 24/7/365 and consequently have a relatively high environmental impact and may cause a strained relationship with people both locally and internationally in the global market place. The expansion of the hotel industry is dramatic with dozens of new properties opening weekly, even defying the odds of the COVID-19 pandemic. This expansion is a response to increases in prosperity and the desire to travel as stated above driving further real estate investments. The result is direct pressure on non-renewable

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resources both in the ‘design and construction phase’ and the ‘operation and occupation phase’ of hotel properties. This is where innovative and sustainable buildings and management systems are needed to relieve the unrelenting pressure on the natural environment that is reaching the limits of its carrying capacity in many destinations. Many of these destinations have already felt the direct effect of climate change, biodiversity loss and shortage of resources.

The Rationale for Sustainability in Hospitality To the uninformed onlooker, environmental protection seems much more necessary in industries where the pollution is actually visible. However, while the processes that are necessary in the assembly of service products may be intangible, perishable and consumed as they occur, they often involve the support of a wide spectrum of physical components and reliance on natural resources (sufficient and reliable supply of energy, food and clean water are essential for hospitality and culinary operations of all sizes and shapes).

Hospitality Impacts The hospitality industry impacts, positively or negatively, communities in which it operates in the form of employment, working conditions and the use of a supply chain (see the following section Beyond the Environment: Ethics of Conducting Business). On the environmental pillar, the hospitality sector has shown to have a series of negative impacts. Air and water pollution, solid and water waste as well as GHGs are some of the environmental outputs from the hospitality and tourism industries. Hotels, for example, are among the highest energy users per square metre of all commercial buildings (Dibene-Arriola et al., 2021). Energy consumption varies between 60 and 700 kilowatt-hours per square metre (kWh/m2) of floor space, depending on the geographical location, type of facilities and amenities provided (Dibene-Arriola et al., 2021; ENERGY STAR, 2015; Hotel Energy Solutions, 2011; Ricaurte & Rehmaashini, 2020; Xuchao et al., 2010). Linked to energy consumption are carbon emissions. Findings from studies vary quite significantly from 11 to 29 kgCO2e per occupied room (Diaz-Perez et al., 2019). Results from the Cornell Hotel Sustainability Benchmarking Index 2020 show a mean of roughly 19 kgCO2e per Occupied Room for US-based hotels across all hotel categories and geographies (CHSB, 2020) (see also Chapter 3, Energy). The emissions stemming from a guest’s diet are not included in the above-­ mentioned figures. However, it is estimated that a non-vegetarian diet results in 8 kg CO2 equivalent per person per day without including the emissions for food preparation (Kim & Neff, 2009).

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Water consumption in hotels averages 350 litres per guest night (Gössling, 2015). The latest Cornell Hotel Sustainability Benchmark reports an average of 473 litres per occupied room in the United States across all hotel categories and a similar consumption for hotels located along the Mediterranean coast but up to 770 litres per occupied room in Dubai, or 1,813 litres per m2 of floor space (CHSB, 2020). Energy and water usage in extreme natural environments may show higher rates of consumption (see also Chapter 5, Water). On average, hotel guests generate 1 kg of waste per guest per night in the form of paper, plastics and cardboard (ITP, 2014), twice as much as local residents (IFC, 2007). Food waste is also a critical issue facing the hospitality industry. Of all the food waste in the European Union, 12% stems from food service businesses (FUSIONS, 2016). Restaurants in the United States are responsible for about 21% of all food wasted (ReFED, 2018) (see also Chapter 10, Food and beverage management). And while hotel guests may generate solid waste, a significant amount of energy used by hotel operations is wasted, leaving ample room for intelligent measures of energy efficiency and conservation (see also Chapter 4, Waste). The creation of waste (any type of waste; food waste, water waste, time waste, energy waste, etc.) is a sign of inefficiencies. Any management school, consultant and manager would agree that inefficiencies lead to underperformance – an undesirable position in the highly competitive hotel market.

Gaining and Maintaining a Competitive Advantage Gaining a competitive advantage in the hospitality industry can be difficult. The hospitality sector is highly heterogeneous with a myriad of actors, from small independent entrepreneurs to global player, which results in a fierce competition. In such situations, hospitality companies closely observe each business move made by competitors and industry leaders. Successful strategies are immediately copied. However, a competitive advantage cannot be gained by one single improvement only; rather it requires a company to constantly question its tactics and strategic position. Gaining and maintaining a competitive advantage, either through differentiation or cost advantage (Porter, 2004), has shown to be a motivating factor for many hospitality companies embarking on sustainable business initiatives. Whether inspired by potential cost savings, the improvement of corporate image, the possible increase in market share or simply to ‘do good while doing business’, hospitality companies must join the unprecedented mobilisation across the globe. This includes all sections of civil society, local, regional and national governments as well as businesses of all sizes and all sectors in mitigating negative environmental impacts, increasing the pace towards decarbonisation and facing the many societal challenges ahead (see also Chapter 17, Stakeholder relationships and partnerships).

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Momentum from International Agreement The international Paris Agreement on climate change was adopted by 195 countries and the European Union in December 2015 (during the 21st Conference of the Parties – COP21) and is the result of six years of work since the 2009 conference in Copenhagen (and 20 years since the first conference (COP1) held in Berlin in 1995). The agreement provides a global framework towards ‘holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C’ (United Nations, 2015a). On the biodiversity front, the Strategic Plan for Biodiversity 2011–2020, known as the Aichi Targets, provided a ‘framework for action by all countries and stakeholders to save biodiversity and enhance its benefits for people’(CBD, 2010, para. 1). Unfortunately, a decade later no progress has been achieved on many of the targets (CBD, 2020). Not only is the lack of progress on biodiversity “threatening the achievement of the Sustainable Development Goals and undermining efforts to address climate change” (CBD, 2020, p.8) but at the same time ‘biodiversity is declining at an unprecedented rate, and the pressures driving this decline are intensifying’ (CBD, 2020, p.8). The hopes are for the global community to achieve a ‘Paris-like agreement’ on biodiversity at the United Nations Biodiversity Conference (COP 15) taking place in Montréal, Canada, in 2022 (UNEP, 2021). Over the last few years, hotel companies have made a determined effort to deal with the impact their business activities have on the environment, particularly by measuring and reducing their carbon (e.g., the Hotel Carbon Measurement Initiative – see Info Box on HCMI in Chapter 3, Energy, or the Hotel Water Measurement Initiative – see Info Box on HWMI in Chapter 5, Water and the case for sustainable buildings – see Info Box on Hotel Value Chain and Sustainable Buildings in Chapter 15, Investing and Financing). Beside the known fact that a clean environment is a key factor to attract tourists, both major international hospitality companies and small hotel or restaurant businesses recognise the tangible benefits in being proactive in mitigating environmental impacts including real efficiency gains and an improved corporate reputation. And while the international agreement largely deals with climate change mitigation and adaption, another closely linked challenge for companies is how to manage the ethical operation of their business.

Beyond the Environment: Ethics of Conducting Business Ethical issues arise in four main areas: (1) the supply chain; (2) the local community (or ‘host community’ at the tourism destination); (3) the workplace, and (4) the customers. There may be concerns about exploitative labour practices in

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the supply chain or exploitation of migrant workers in hotels and restaurants. Local people may often rightly perceive that they have little or no share in the economic benefits of tourism (partly due to the leakage effect whereby the revenues generated are lost to other countries – a topic discussed in Chapter 19, Challenges of operating in the Global South) while bearing a disproportionate burden from environmental degradation. There are mounting issues related to the way goods needed for hotel operations are being produced, in terms of working conditions and quality concerns, from furniture to food provision. The development of destinations which previously relied on agriculture and extractive industries creates demand for often low-paid hotel operatives and destroys traditional employment opportunities such as fishing and farming. The local cost of living increases, many of the original population are obliged to leave. The World Tourism Organisation (UNWTO) devised a Global Code of Ethics for tourism, designed to minimise the negative effects of tourism activity on destinations and local communities, via the adoption of a comprehensive set of principles guiding stakeholders in tourism (UNWTO, 2001) (see also ­Chapter 8, Employees). These include governments, non-governmental organisations, the industry and the individual travellers. Although it is not a legally binding document, Article 10 of the Code provides for a voluntary implementation mechanism to which stakeholders may refer concerning the application and interpretation of the document. A number of hotel and tourism companies are signatories of the Global Code of Ethics, including the online travel platform TripAdvisor in 2017, hotel companies such as RIU Hotels & Resorts, and individual hotel properties under Marriott, Meliá Hotel International, Mövenpick and IHG as well as tour operators Der Touristik and TUI as well as numerous regional and national hotel associations and small- and medium-sized hotel and/or tour operators (Signatories, 2021).

Proactive Approach Encouragingly, there is evidence that the hotel industry is assuming a proactive, collective approach to human rights and business ethics, incorporating human rights risk-mapping, employee training on responsible business and sustainable local benefits. Major hotel companies have taken significant steps in the past decade to integrate policies on human rights into their stated policies on business conduct and ethics. Decarbonisation targets are being set across many large hotel chains and biodiversity protection is a core component of sustainability programmes. Sustainable business strategy makes good business sense as it potentially enhances a company’s profits, management effectiveness and public image. Most importantly however, it is a matter of managing risks (see Case Study). The likely winners in a fast-changing hospitality industry are companies that take a triple bottom-line approach.

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Defining Sustainability and Sustainable Development: A Historical Perspective The Greeks, the Romans and von Carlowitz The Greek and Roman philosophers already reflected on the diverse and sometimes complex relationships between humans, and in particular human activities, and ecosystems in which those activities take place. Plato (400 BC) examined issues related to the size of population versus the availability of fertile land and natural resources. Aristotle discussed nature’s role and purpose. The Roman army commander, natural philosopher and author, Gaius Plinius Secundus, known as Pliny the Elder (first century AD), pointed out the improper use of raw material and the disappearance of forests with the known consequences of deforestation such as soil erosion, floods and a decrease in soil fertility in his publication, Naturalis Historia (Natural History). But it was not until the turn of the eighteenth century that such philosophical discussions moved into the spheres of agriculture, management and business. In a book published in 1713, entitled Sylvicultura Oeconomica, German tax accountant and mining administrator, Hans Carl von Carlowitz laid the grounds of the modern interpretation of sustainable development (Grober, 2010). He argued against short-term financial gains in managing primary resources in general and wood in particular. Located in Freiberg, Saxony, von Carlowitz further reasoned that along with the careful harvesting of wood, a plan for reforestation must be devised. Von Carlowitz was an advocate of improved thermal insulation in construction and the use of energy-efficient furnaces and ovens. Sylvicultura Oeconomica is considered one of the first scientific publications on forestry. Von Carlowitz coined the word ‘sustainability’.

From Freiberg to Brundtland Commission The nineteenth-century German sustainable forestry science gained international acclaim. However, the concept of sustainability and sustainable development was to be tested by rapid economic growth in the second half of the twentieth century. This growth was based heavily on the depletion of natural resources. Sustainable development, a concept that gradually came about over centuries, gained momentum in the 1950s and 1960s. In 1951, the IUCN (the International Union for Conservation of Nature) published the first report on the state of the environment in the world (IUCN, 1951), a pioneering report in its quest for reconciliation between the economy and ecology. In 1966, economist Barbara Mary Ward published Spaceship Earth (Ward, 1966) and economist Kenneth Ewart Boulding wrote an essay entitled ‘The Economics of the Coming Spaceship Earth’ (Boulding, 1966). The basic premise of both publications rests on the realisation that Planet Earth is ‘a single spaceship, without unlimited reservoirs of anything, either for extraction or for pollution, and in which, therefore, man must find his place

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in a cyclical ecological system’ (Boulding, 1966). Rather than an analogy to a ‘spaceship’, American ecologist and philosopher Garrett Hardin used the concept of a ‘lifeboat’ to discuss the access to resources situation (Garret argued that a spaceship requires a captain. Since the Earth has no captain, the spaceship analogy is flawed). Hardin argues that: Metaphorically each rich nation can be seen as a lifeboat full of comparatively rich people. In the ocean outside each lifeboat swim the poor of the world, who would like to get in, or at least to share some of the wealth. What should the lifeboat passengers do? (Hardin, 1974) In the article The Tragedy of the Commons published in 1968, Hardin argued that when resources are available to all (the Commons, e.g., the, oceans, rivers, forest) with no one taking responsibility, the consequence is a depletion of that resource. In other words, the free access and unrestricted demand for a finite resource leads to over-exploitation and depletion (Hardin, 1968). The concept is best described as The Tragedy of the Fishers. Fishermen are motivated and dependent on the resource (the fish) for their own personal benefits independent of others. Using ‘conscience’ to regulate the Commons is not effective (some fisherman may be more altruistic than others who may be more selfish). When uncontrolled, fishing before or during breeding could cause grave repercussions on future fish stocks with negative consequences to the fishermen. Hardin concluded: To consider the Commons as being ‘free’ is part of the problem – the Commons require management (Hardin, 1968). The Tragedy of the Commons has great implications today where population growth and limited resources are two key issues of strategic importance. The international think tank, the Club of Rome, was founded in the late 1960s and commissioned the report entitled The Limits to Growth, which landed on bookshelves in 1972. The basic thesis was the linkage drawn between rapid population growth and the finite supply of primary resources (Meadows et al., 1972). In the same year, the United Nations organised the Stockholm United Nations Conference on the Human Environment, which investigated the linkages between the environment and development. The United Nations Environment Programme (UNEP) was born out of the 1972 Stockholm Conference. However, the modern version of the definition of sustainable development is best summarised in one simple sentence created by the World Commission on Environment and Development in 1983 and published in the final report entitled Our Common Future, better known as the Brundtland Report, in 1987: Sustainable development is defined there as: development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (WCED, 1987, IV Conclusion)

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From Brundtland Report to Rio Building upon this definition, but changing its focus from humankind’s responsibility towards future generations to the current balance of the Earth’s ecological systems, is the definition of sustainable development in the 1991 publication Caring for the Earth: A Strategy for Sustainable Living by the United Nations Environment Programme (UNEP), the International Union for the Conservation of Nature (IUCN) and the World Wide Fund for Nature (WWF). Sustainable development is defined there as: improving the quality of human life while living within the carrying capacity of supporting ecosystems (IUCN, 1991, p. 10) The addition of economic and socio-cultural aspects to the notion of sustainability came about from the Earth Summit in June 1992, from the United Nations Conference on Environment and Development (UNCED) in Agenda 21. Furthermore, this conference focused attention on the role of education, more specifically education that encourages values and attitudes of respect for the environment. Under Agenda 21, to engage in sustainable development requires adopting, changing or improving behaviours guided by a set of 27 principles (UNEP, n.d.). Those can be summarised with the following five principles: 1. The principle of precaution: to prevent any risks occurring that are deemed possible. 2. The principle of responsibility: to adopt social and environmental responsibility for all activities and decisions. 3. The principle of transparency: to make all relevant information available to stakeholders. 4. The principle of social and technological innovation: to move forward social and technological innovation in a way that benefits humankind and the planet. 5. The principle of involved citizenship: to contribute to local, national and global tasks.

From Rio to Kyoto The subject of climate change was projected to the forefront of sustainable development in 1997 in Kyoto, Japan. An agreement was reached, known as the Kyoto Protocol, by 38 industrialised countries to reduce their combined GHG emissions by 5.2% on average by 2012 compared to 1990 levels (UNFCCC, 1998). The agreement entered into force in 2005 and ended in 2012. The same year, at the end of round one of the Kyoto Protocol, the Doha Amendments to the Kyoto Protocol was adopted (UNFCCC, 2012). The Doha Amendments establishes a second round of commitments for the period 2013–2020 including renewed pledges for reduction of greenhouse gases by 2020 from the 37 industrialised countries

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and the European Union (UNFCCC, 2012) – Canada, originally a signatory of the Kyoto Protocol withdrew from the agreement in 2011. The same year as the Kyoto Protocol in 1997, author and entrepreneur John Elkington published Cannibals with Forks: The Triple Bottom Line of 21st Century Business in which he described the triple bottom line, or TBL (Elkington, 2005). Elkington had already started to use the term TBL back in 1994 in an article published in the California Management Review on ‘win–win–win’ business strategies (Elkington, 1994). Elkington argues that measuring success means capturing, analysing and reporting ecological and social performance in addition to the financial performance of an organisation. Nowadays, most Corporate Social Responsibility (CSR) reports from large companies are built around those three components although the metrics and m ­ easurements used and reported on those pillars are still in need of standardisation. However, in 2018, Elkington published a vivid critique on the ways and methods TBL has been implemented in businesses over the past quarter century. He writes, ‘while there have been successes, our climate, water resources, oceans, forests, soils and biodiversity are all increasingly threatened’ (Elkington, 2018, para. 5).

Post-Kyoto and COP21 Many conferences followed on all topics within the field of sustainable development and climate change in particular. In 2000, world leaders gathered and adopted the eight Millennium Development Goals (MDGs). The goals, to be achieved by 2015 and particularly aimed at challenges of the Global South, included eradicating extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDS, and developing a global partnership for development. The World Summit on Sustainable Development (WSSD) or Earth Summit +10 took place in Johannesburg, South Africa, in 2002, ten years after the Rio Summit. The Johannesburg Summit broadened the definition of sustainable development even further, by including the notions of human dignity, social justice and the fight against poverty (United Nations, 2002). Additionally, to reinforce the focus on sustainability and education following a proposal from the Johannesburg Summit in 2002, the United Nations General Assembly proclaimed the period 2005–2014 to be the ‘Decade of education for sustainable development’. Gatherings of environmental specialists, government representatives and non-­governmental organisations (NGOs) discussing climate change matters corroborated the media and general public interest. In 2009, the United Nations Climate Change Conference was held in Copenhagen, Denmark. The summit was a missed opportunity for world leaders to agree on a framework for the mitigation of climate change beyond 2012. Following six years of yearly meetings and negotiation, the 21st Conference of the Parties (COP21) opened in Paris in late 2015.

Paris Agreement The gathering of nations in December 2015 in Paris had the principal goal to agree on a global legally binding plan to avoid the worst impacts of climate change such

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as severe droughts, flood, storms, etc. The governing body of the United Nations Framework Convention on Climate Change is known as COP. It is made up of all countries which should work towards this agreement. Ahead of COP21, countries were asked to provide their Intended Nationally Determined Contribution (INDCs). The INDCs are a set of pledges that countries responsible for over 80% of the global GHG emissions have made towards emission reduction. These 155 countries, including the largest emitters such as China, the United States, Europe and India, have each prepared their INDCs and thus sent the message of willingness to combat climate change. After two weeks of intense negotiations, the Paris Agreement was adopted by 195 countries and the European Union. The agreement provides a global framework towards ‘holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C’ (UNFCCC, 2015). The Paris Agreement also covers many interrelated issues: (1) the financing of adaptation (e.g., aiding communities/societies to deal with impacts of climate change); (2) minimising loss and damage (e.g., creation of early warning systems and emergency preparedness); (3) peaking and reducing emissions; and (4) installing a continuous improvement system (e.g., setting new targets, reporting on performance, etc.) (UNFCCC, 2015). An important aspect is the financing of climate actions to reduce emissions and build resilience to impacts in developing countries, or rather the Global South – those mostly affected by climate change. The fully industrialised nations of the Global North expressed a firm intention to maintain their existing US$100 billion budget planning per year from 2020 until 2025, when a new collective goal will be set. The large development banks, including the World Bank, the Inter-American Development Bank (IDB), the African Development Bank (AfDB) and the Asian Development Bank (ADB) have embraced the deal and pledged to greatly increase lending for low-carbon projects and activities aimed at cleaning pollution over the next 20 years (IISD, 2015). Tropical countries should also benefit financially from protecting their forests, payments for reducing emissions from deforestation and degradation and incentives to replant. There is momentum in solar, wind and other renewable technologies research and investments and less financial incentives for further fossil fuel developments. Although the Paris Agreement is, overall, legally binding, much of the detail is not. Countries cannot be forced to do more than originally expressed, nor are there any punishments foreseen if targets are not achieved. However, a non-binding agreement does not mean it is meaningless. Similar to most international agreements, the Paris Agreement relies on countries’ desire to have good and productive relationships with one another and thus there is a considerable amount of pressure for active participation. There is also some doubt that countries have pledged enough cuts, beyond the expressed INDCs, to avoid an increase in temperature past the 2 degrees Celsius as written in the agreement. The Paris Agreement has loopholes and deficiencies, mostly due to compromises during political negotiations, but it is a step forward. For example, The International Renewable Energy Agency (IRENA) reported that following the agreement, wind and solar power can be scaled

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up by countries to represent 36% of the global energy mix by 2030 (IRENA, 2016). This increase would represent half the GHG emission reduction required to stabilise the warming at 2 degrees Celsius and energy efficiency measures  would provide the other half needed (IRENA, 2016) (see Chapter 3, Energy).

Sustainable Development Goals (SDGs) The Agenda 2030 for Sustainable Development, including the Sustainable Development Goals (SDGs), is supposed to guide global sustainable development until 2030. The 17 goals comprise a set of 169 targets and 231 unique indicators, covering topics ranging from ending poverty, achieving food security, ensuring healthy lives, accessing quality education, providing water and energy access, reducing inequalities, conserving natural environments and promoting employment and decent work for all. In contrast to the MDGs, the SDGs are global in nature and not just directed towards the Global South. The complete list of topics, targets and indicators can be accessed from the Sustainable Development Knowledge Platform (https://sdgs.un.org/goals). At the time of writing this book (Summer 2021), six years had passed since the inception of Agenda 2030 and the SDGs had become a blueprint for much of the global development work and discourse. The latest UN SDG Progress Report (2021) notes, however, that realisation of the SDGs remains a distant hope. Had the paradigm shift envisioned by the 2030 Agenda for Sustainable Development been fully embraced over the past six years, the world would have been better prepared to face this crisis – with stronger health systems, expanded social protection coverage, the resilience that comes from more equal societies, and a healthier natural environment. Regrettably, the SDGs were already off track even before COVID‑19 emerged. Progress had been made in poverty reduction, maternal and child health, access to electricity, and gender equality, but not enough to achieve the Goals by 2030. In other vital areas, including reducing inequality, lowering carbon emissions and tackling hunger, progress had either stalled or reversed. (p. 2) In order to make the remaining years until 2030 count, keep global climate warming and biodiversity loss at an absolute minimum and achieve other important SDGs, we need an unprecedented and globally concerted effort. This book supports the Agenda 2030 by pointing out how each of the topics covered in ­Chapters 3–19 relate to the SDGs and help to realise them. At the beginning of each chapter, you will find a table elaborating on the most pertinent SDGs from our perspective. These are examples and not set in stone. The SDGs are highly interconnected and it is likely that from a holistic perspective, the sustainable water or energy management can in some way help to achieve SDGs not highlighted in the chapters, for example. Table 2.1 shows which of the SDGs apply to each chapter.

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8. Employees

7. Accessibility

6. Facilities

5. Water

4. Waste

3. Energy

industry1

and the hospitality

2. Sustainable development

1. The rationale for

SDG/Chapter

sustainable development1

Table 2.1 Book Chapters and SDGs

1. No poverty 2. Zero hunger 3. Good health and well-being 4. Quality education 5. Gender equality 6. Clean water and sanitation 7. Affordable and clean energy 8. Decent work and economic growth 9. Industry, innovation and infrastructure 10. Reduced inequalities 11. Sustainable cities and communities 12. Responsible production and consumption 13. Climate action 14. Life below water 15. Life on land 16. Peace, justice and strong institutions 17. Partnerships for the goals

1: The first two chapters are not connected to individual SDGs, because they are introductory in nature. Note: The content of this publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States. (For more information, please visit https://www.un.org/sustainabledevelopment/)

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in the Global South

19. Challenges of operating

18. Social entrepre­neurship

and partner­ships

17. Stake­holder relation­ships

communi­cating

16. Reporting and

15. Investing and financing

externalities

accounting and

14. ESG, environmental

performance indicators

and sustainability key

management systems

13. Environmental

behaviour

12. Marketing and consumer

labels

11. Certifica­tion process and

10. F&B manage­ment

9. Food

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We do acknowledge, of course, that there is considerable debate about the value of the SDGs in terms of sustainable development. Fundamentally, researchers have argued that the Agenda 2030 is in fact not a game changer, but establishes an understanding of sustainable development based on the common understanding of economic growth as key to human development. This is at odds with the safeguarding ecological integrity of our planet and creates trade-offs amongst the SDGs (Eisenmenger et al., 2020). Furthermore, the indicators used to measure the realisation of each SDG might be reductionist in nature and unable to successfully guide progress (Ordaz, 2019). However, the SDGs yet remain strategically relevant for working towards a more sustainable practice of tourism and hospitality. What ‘sustainability’ in fact means and how differently it can be defined and used is discussed in the following section.

Other Definitions of Sustainability There is a proliferation of definitions on ‘sustainable development’ and ‘sustainability’ which may show the importance or relative attention the topic is receiving. Most definitions refer back to the original version from the Brundtland Report as described earlier in this chapter. Two notable and industry-­ related contributions come from the World Business Council on Sustainable Development (WBCSD) and the World Tourism Organisation (UNWTO).

World Business Council on Sustainable Development (WBCSD) The WBCSD is a coalition of 200 global businesses with a common approach to sustainable development. According to the WBSCD, sustainable development is defined as: forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs. (WBCSD, 2016)

World Tourism Organisation (UNWTO) The World Tourism Organisation (UNWTO) is an agency of the United Nations dedicated to the promotion of tourism. It is particularly dedicated to the implementation of the Global Code of Ethics for tourism. The organisation is also committed to promoting tourism as an instrument to achieving the SDGs. Both the Global Code of Ethics and the SDGs were discussed earlier in this chapter. The UNWTO adapted the Brundtland definition of sustainable

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development to tourism and thus, according to the UNWTO, sustainable tourism is: Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities. (UNWTO, 2005, p. 12)

Defining Sustainable Hospitality Using the Brundtland Report’s definition as a starting point, and the UNWTO’s definition of sustainable tourism, sustainable hospitality can be defined as: hospitality operations managing resources considering the economic, social and environmental costs and benefits in order to meet the need of present generations while protecting and enhancing opportunities for future generations. This definition requires an examination of the following questions: • • •

Which resources used by a hotel impact directly and indirectly on economic profit, society and the environment? How can the principles of sustainability be incorporated into hospitality decision-making? What does it mean for a hotel to meet the needs of the present generation while protecting and enhancing opportunities for future generations?

Consideration of these questions is provided throughout this book.

Critique of Sustainability Although interest and support for sustainable development matters is growing continuously, critics and sceptics exist. Since numerous definitions of the term ‘sustainability’ have been created and received media coverage, the concept is often claimed to be difficult to understand. For some, the concept is vague and fuzzy and the limited availability of sustainable models is often criticised as well. Additionally, words such as ‘sustainable’, ‘green’ or ‘eco-friendly’ are used loosely throughout many industries and product labelling leaving many sceptic on the true meaning of those terms. In the food and beverage industry, the use of vague terms is infectious – all-natural, earth-friendly, natural local, regional, good-for-you and dozens more without regulations in their usage

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(see Chapter 11, Certification and ecolabels). Finally, it is also important to recognise that sustainability is not a panacea for all the ills of the world, though some consider it a quick-fix solution.

Overcoming Obstacles Many hoteliers are stuck in a typical causality dilemma. The aphorism ‘it takes money to save money’ is often referred to when dealing with sustainability initiatives. For example, a hotel must invest in proper insulation in order to reap the benefits of energy efficiency. Thus, investing in sustainable hospitality operations is often impeded by misconceptions about what the bottom line is. Many managers and owners of hotels only consider the initial investment costs in decision-making. However, the running costs of sustainable operations are generally much lower than those properties that have inefficient equipment or facilities. The longer-term return of such investments is most often positive purely in financial terms, even without considering the triple bottom line of environment, society and economics (see Chapter 15, Investing and financing). Another obstacle lies in the internal communication and control within hotel chains. Several hotel corporations, but also small- and medium-sized hotels, already have environmental management systems in place (see Chapter 13, Environmental management systems and key performance indicators). But for larger hotel chains, an important factor determining the effectiveness of these programmes is the transfer of corporate environmental policies into operations at the individual hotels. Many hotels have had (or still have) problems in articulating in-house actions from the corporate environmental management system. Often a manager of a hotel has the freedom to determine the strategies and procedures fitting to the operations and facilities. Therefore, the environmental and social performance is heavily dependent on the management’s attitude towards specific sustainability subjects. Another obstacle is the relationships that exist between owners and operators or between franchisors and franchisees. The hospitality industry in that respect is quite unique with multiple arrangements possible. It is not uncommon to find ‘asset light’ operations via management contracts in the hotel industry. Many sustainability features especially in terms of energy efficiency, involve structural changes of a building or large capital investment which are often undertaken by the owners of the land and building. The direct benefits (e.g., energy savings) are flowing to the pockets of the hotel operator. This creates a conundrum, where decisions on sustainability may be stalled or delayed. Furthermore, different levels of involvement in franchise agreements exist, all with different levels of imposed procedures. Less demanding franchise formulas give the manager more freedom to design his/her own strategies with regard to sustainability. Those are considerations potentially slowing down the transition towards a ‘sustainability hospitality industry’.

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Sustainable Hospitality Performance

Environmental Dimension

Economic Dimension

Social Dimension

Direct & indirect environmental impacts

Plan for internal & external economic

Programme development for social well-being of all

Figure 2.1 Sustainable hospitality theoretical framework

Three Dimensions of Sustainable Hospitality Taking the definition of sustainable hospitality, the entire value chain and life cycle of an operation has to be taken into consideration when identifying critical aspects impacting on sustainability performance. From construction to furnishing; from food and beverage sourcing to production and waste management; from management to day-to-day operations, all management and operational decisions must be made in harmony with the environment, society and operational profitability. Figure 2.1 presents a holistic perspective of the theoretical framework for sustainability in hospitality.

The Environmental Dimension The environmental dimension focuses on an organisation’s impacts on the climate and biodiversity and resulting ecosystem services. Additionally, air, water, land use and waste enter the environmental impact equation. The overall aim is to minimise or eliminate all practices that might adversely affect the enjoyment of the planet’s resources by present and future generations. Avoiding short- and long-term environmental damage and maintaining and promoting natural diversity are the main objectives of this dimension. In heavily degraded environments, sustaining the current conditions is not an option. In this case, a regenerative hospitality is required (see Chapter 18, Social entrepreneurship). Case Study 5.1 explores the complex relationship between tourism and ­biodiversity – an industry that is dependent on biodiversity but also a threat to it via its activities (see Case Study 5.1, Blessing or curse? Tourism and biodiversity).

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Hospitality operations can impact the environment all along the life cycle of their operations. This includes: the planning, building and construction of the facilities; the manufacturing use of fixtures and fittings; the cultivation, production and shipping of food; the sourcing, transport and burning of fossil fuels for facility-operating purposes as well as for services offered; the water use and depletion; the various wastes produced from operation and disposal of buildings at the end of the life cycle; and the transport of employees and guests to and from the facilities (see also Chapter 6, Facilities). Thus, the examination of environmental impacts before and during hospitality operations is known as Life Cycle Assessment (LCA).

CASE STUDY 2.1 BLESSING OR CURSE? TOURISM AND BIODIVERSITY by Dr. Frauke Fischer, Founder Agentur Auf!

Introduction The relationship between tourism and biodiversity is complex. Tourism is dependent on biodiversity and at the same time threatens it. However, done right it can be one of its biggest guardians…. Here is the story: Nature soothes our souls so it is almost inevitable for a perfect holiday experience. But it’s not only the sight of beautiful landscapes with rich flora and fauna that we count on while travelling, it’s also a bunch of other ecosystem services nature offers us, like production of food, clean water and air, the protection from floods or extreme heat and other things we need to feel comfortable. Unfortunately way too often by travelling we threaten exactly these services we are so much longing for by destroying biodiversity. To get to our destination we need roads, airports and harbours. To stay there we need hotels, resorts, and camping sites. All this infrastructure covers ground. Covered ground that cuts through habitats and leaves no room for animals to live, plants to grow, water to drain away and fill freshwater reserves. And once we unpack our suitcases, we want water activities, promenades and anchorages in coral reefs and mangroves that would otherwise have protected us from floods and storms. And we produce an awful lot of waste, often in regions without functioning waste management systems let alone recycling infrastructure so ending up in (official and unofficial) landfills or the oceans. And just by bathing our sun-protected bodies in the sea we leave an estimated 14,000 tons of sunscreen lotion covering coral reefs worldwide every year. And not curious enough, when rolling up our beach mats, we unintentionally lift up and carry away so much sand that it affects the beaches ecosystem. (On some Sardinian beaches the use of bath mats is already prohibited.) And we haven’t even talked about the climate footprint of travelling.

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That sounds devastating – but it doesn’t have to be. Tourism is an essential industry in many societies and more and more governments, hospitality companies and individual hotel owners understand, that their future prosperity relies on the surrounding nature and its functioning ecosystems. Recent studies show that the collapse of tourism in many protected areas worldwide has resulted in a dramatic increase in illegal activities such as poaching and logging. So the key is not to prevent people from spending holidays in nice areas but to take the value of ecosystem services into account and design tourism in a way that protects biodiversity and finds sustainable uses of ecosystems.

Pathway to Heaven The good news is, whatever steps are taken towards a more sustainable tourism, it will always lead to a more pleasant experience of hospitality – more green, more quiet, more beautiful – and moreover, it generally benefits the local community in economic terms. Here are some points of action:

Planning Phase When looking for the right building site for a new project, it is important to conduct a proper environmental impact assessment (EIA) in order to understand potential harm on biodiversity and ecosystem services connected with building and running a hotel or resort. On the other hand, the EIA might throw a light on potential benefits from existing ecosystem services worth to preserve for the operation of a hotel or resort (e.g., forests cleaning air and water, cooling effects of vegetation, protection of infrastructure from natural disasters or extreme weather, regulation of waterflows, etc.) They might save money later on.

Building Phase A good architect will help you to reduce impacts on the environment and might for example include the natural surroundings, standing trees, shrubs, etc. in the planning, making use of natural air conditioning and ventilation. The use of long-lasting, locally produced renewable or recycled building material not only saves resources and money while strengthening local economy, it also leads to a modern, high-quality design highly appreciated by customers. Where negative impacts are inevitable they could (and should) be compensated for. A  variety of compensating schemes already exists – biodiversity experts could help to find the right one.

Operational Phase While operating a hotel or resort establishing procurement regulations (for food, furniture, consumables…) that assure the exclusion of products that have negative environmental impacts in all stages of the product life should be installed. Whenever possible food should be from regional sources, seasonal, and either organic-certified or from known sources that support biodiversity. Other products should be of high quality (extending time in use), recyclable or circular.

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Those areas of a premise that are not built on give the opportunity to support biodiversity onsite. Even small entities can be transformed into little insect habitats. Insects need food plants and nesting sites. A variety of indigenous plants improve the habitat for a variety of different species that can help regulate the natural food chain and even prevent the over-population of some of them (mosquitos or rats, etc.). Bird feeders do not only help birds through harsh times (such as winter in temperate regions) but might also give guests the opportunity to observe wildlife. Training of staff is an important part to make any biodiversity friendly business work. Staff in charge of procurement, facility management, cleaning, guest-care, and cooking need to be trained to understand and support your biodiversity strategy. For example, a chef who is aware of over-fishing, deforestation for soy and palm oil production, and climate change effects of food waste will deal differently with food, put other dishes on the menu, and hence help to protect biodiversity and safe you money (due to less waste). Locals offering guided tours into nature and natural sights are the best ambassadors for the idea of appreciating and enjoying nature’s wealth. Involving them and their knowledge as much as possible in planning and operation should be a matter of course. Where tourism and hospitality are managed consciously it can not only prevent major harm to biodiversity, it can also be an important guardian. The profits tourism generates make ‘nature conservation’ an economically reasonable strategy and stabilise local community. There is no need to hunt down rhinos when tourists pay to see the living ones. And strolling (sustainably) through national parks tourists fulfil the job of rangers. All this makes the harmonisation of biodiversity and tourism not only an obligation but a very promising business case for our future passion for travel.

The Economic Dimension The aim of private sector organisations is to make a profit. Alternatives to the traditional ‘solely-for-economic-profit’ system exist in hospitality (see Chapter 18, Social entrepreneurship), however, profit maximisation is at the core of many hotel and restaurant groups. Without profits, these companies risk being ‘out of business’, hence bankruptcy. However, it has become obvious that many practices contributing to mitigating environmental impacts can also provide significant short- and long-term business benefits. This is the promise of a ‘win–win’ scenario. Achieving costs savings from installing energy- and water-efficient technologies combined with the use of energy-efficient equipment while ensuring proper employee training on correct energy practices increases internal profitability. A hospitality company committed to a sustainable business policy supports and participates in the development of the local economy. In other words, it  will aim to generate economic benefits for local people through increased local employment and sourcing, investment in training and education, linking with other businesses to market the destination and any other income-generating opportunities.

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The Social Dimension The social dimension deals with the impact an organisation has on the society in which it operates. The main consideration of the social dimension, as shown in Figure 2.2, is how the hospitality operation can positively contribute to the lives of local people now and in the future. A company committed to sustainability therefore has to deal with numerous issues categorised into (1) the individual sphere, (2) social life and (3) social infrastructure as shown in Table 2.2, Areas of Social Sustainability. A hospitality operation needs to be able to assess the social impact of its activities in order to enhance the well-being of individuals and communities. Issues such as fair trade and fair prices with regard to sourcing products and

WHO

Hospitality businesses

Local Governments & Regulators

Educational institutes

Nongovernmental Organizations

Other citizen groups

SUSTAINABLE HOSPITALITY COMMITMENT PARTNERSHIPS

WHAT

To be developed between all stakeholders with the following goals: • Resolve conflicts • Harmonise plans • Actions for improvement • Share experience • Share expertise • Monitoring activities

INDUSTRY RESPONSIBILITY Must be fostered in order to integrate sustainable thinking and commitment into boardrooms to: • Re-shape core business philosophy • Enlarge the sphere of influence • Embrace sustainable practices • Educate the team • Review communication • Take advantage of initiatives

SUSTAINABLE HOSPITALITY PROGRAMMES

HOW

ENVIRONMENTAL PROGRAMMEMES regarding:

SOCIAL PROGRAMMEMES concerning:

ECONOMIC PROGRAMMEMES covering:

Energy; water; electricity; emissions; waste; air quality; food; packaging; purchasing; recycling/reuse; transportation; landscaping; construction; maintenance; and product safety.

Fair trade; local economic development; working conditions; health and nutrition; diversity; public education; human rights; fair competition; anticorruption; safety; and social philanthropy.

Accountability; transparency; corporate governance; internalisation of external costs; shareholder value; tax incentives; economic performance; and financial objectives.

Figure 2.2 Framework for a sustainable hospitality industry

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Table 2.2 Areas of Social Sustainability Individual Sphere

Social Life

Social Infrastructure

Human rights

Social justice

Public health

Labour rights

Community integration

Workplace safety

Equal opportunities

Social diversity

Community involvement

Skills & education

Cultural diversity

Local integration

Training

Stakeholder communication

Fair sourcing

Working conditions

Local identity

Infrastructure development

food items require consideration. Additionally, careful attention must be given to food safety issues and human health considerations as far as the food and beverages offered are concerned (see also Chapter 8, Employees).

Sustainable Hospitality Framework In order to turn the three above-mentioned dimensions, environmental, economic and social, into practices, a broad commitment of multiple stakeholders must take place to ensure a common and holistic approach to sustainability (see Figure 2.3, Framework for a sustainable hospitality). Sustainable hospitality does not translate into ‘one company doing its very best in a given market’, but rather, the development of partnerships is essential, where responsibility is established and practices are implemented in collaboration with other stakeholders. Those stakeholders are other businesses involved in delivering the tourism experience, the local government, educational establishments, non-­government bodies and citizens’ groups. Partnerships are developed between stakeholders to facilitate conflict resolution, to harmonise plans and to bring about action for environmental improvement. Industry networks within and between the broader service sectors of tourism (including transport, tour operators, hospitality, travel agents and the leisure sectors) are critical, as they provide for the sharing of experience and expertise and the establishment of mutual beneficial sustainable projects. Realistic indicators for environmental improvement and sustainable development need to be established, on which overall progress can be monitored and assessed (see Chapter 13, Environmental management systems and sustainability performance indicators). The savings in costs and revenues earned through sustainable management systems should be injected back into continued environmental improvement. Additionally, environmental training and information dissemination are especially important for small and medium-sized enterprises (SMEs). Finally, the complete communication strategy must be revised to reflect sustainable initiatives and programmes undertaken by the business. Initiatives

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may range from voluntary self-regulation schemes such as environmental certification schemes and ecolabels (see Chapter 11, Certification and ecolabels), to tax rebates on environmental investments and low-interest financing schemes for clean and r­ esource-efficient technology (see Chapter 15, Investing and financing). Following the development of partnerships coupled with industry responsibility, sustainable hospitality programmes can be established encompassing the three pillars of environmental, social and economic programmes. Each programme should cover a wide range of initiatives to be undertaken by hotel managers and owners. This includes concrete planning calculations and reductions of emissions created by a hotel to tactics in getting the most from and giving the most to local communities. Leading hospitality companies understand that sustainable business models have far-reaching implications and are not merely incremental improvements of today’s business operations.

Seven Principles to Integrate Sustainability in Practices The hospitality industry must take environmental and societal responsibility and integrate sustainable management into its daily operations and business practices. Taking responsibility requires business leaders and managers to reconsider seven traditional principles including: 1. 2. 3. 4. 5. 6. 7.

the company’s positioning within a market; the image perceived by consumers, suppliers and other stakeholders; the legitimacy of the environmental positioning of the company; the acceptability of sustainable products and services for its customers; the suitability of its suppliers to engage in a sustainable supply chain; the readiness of intermediaries to support sustainable initiatives; the consumer expectations and perceptions of benefits that sustainable products and services will offer.

Sustainability Initiatives in the Hospitality Industry With the publishing of Agenda 21 for the Travel and Tourism Industry in 1997, individual businesses and the hospitality industry were encouraged to adopt codes of conduct promoting sustainable travel and tourism best practice (UNWTO, 2015). Agenda 21 for the Travel and Tourism is not a ‘how-to’ guide answering all of the industry’s challenges, but rather a comprehensive

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document promoting best practices for sustainable travel and tourism. Gradually, voluntary guidelines and examples of best practices were established in the industry, followed by the introduction of ecolabels and certification procedures (see Chapter 11, Certification and ecolabels). An increasing number of hotels and restaurants have since embarked on a wide range of measures designed to reduce their impact on the environment. Hospitality industry associations and non-governmental organisations are paying increased attention to providing the industry with best practice examples and guidelines. The Sustainable Hospitality Alliance (formerly the International Tourism Partnership (ITP)) is behind multiple hotel industry initiatives with the goal of driving responsible management including the Hotel Carbon Measurement Initiative (HCMI) (see Info Box on HCMI in Chapter 3, Energy), the Hotel Water Measurement Initiative (HWMI) (see Info Box on HWMI in Chapter 5, Water) and the case for sustainable buildings (see Info Box on Hotel Value Chain and Sustainable Buildings in Chapter 15, Investing and financing). The Sustainable Hospitality Alliance also produced various resources including hands-on manuals such as the Environmental Management for Hotels manual and the Sustainable Hotel Siting, Design and Construction manual (SHA, 2021). Material and guidelines pertaining to ethical recruitment, training, youth employment and other labour issues is also available (see Info Box on Youth Employment as well as Info Box on Forced Labour in Chapter 8, Employees). Sustainability in the hospitality industry rests on a wider collaboration of stakeholders which is discussed by the Sustainable Hospitality Alliance (see Info Box on Collaboration in Chapter  17, Stakeholder relationships and partnerships). Info Box 2.1 provides an overview of tools and resources provided by the Sustainable Hospitality Alliance (see Info Box 2.1, Tools and Resources to Enable Every Hotel to Operate Responsibly and Grow Sustainably).

INFO BOX 2.1 TOOLS AND RESOURCES TO ENABLE EVERY HOTEL TO OPERATE RESPONSIBLY AND GROW SUSTAINABLY The Sustainable Hospitality Alliance offers a range of free practical tools, resources and programmes to support hotels to have a lasting positive impact on the planet and its people. This includes training and resources to mitigate human rights risks, tools to enable hotels to manage their carbon emissions, and resources to help hotels to implement effective water stewardship strategies. Their site also includes practical blogs, tips and case studies on a range of social and environmental issues. Access: https://sustainablehospitalityalliance.org/resources/

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Another example is The International Hotel & Restaurant Association’s (IH&RA) Sustainable Hospitality 2020 which is a system (IH&RA Evolution) and platform offered to hoteliers wanting to measure resource use, waste reduction and client reporting (IH&RA, n.d.). The Green Restaurant Association (GRA) an American non-profit, consultative and educational organisation with the mission to encourage ‘restaurants to green their operations using transparent, science-based certification standards’ (GRA, 2021a, para. 1), also conducts research in various environmental areas. The GRA has produced several environmental guidelines for restaurants and promotes examples of best practice in order to facilitate achieving environmental sustainability. Additionally, the GRA provides restaurants with certification possibilities via the use of seven environmental categories from water efficiency to waste reduction and sustainable food sourcing (GRA, 2021b). Similarly, the Sustainable Restaurant Association (SRA) aims to ‘To accelerate change towards an environmentally restorative and socially progressive UK hospitality sector’ (SRA, 2021, para 1.) and offers members a wealth of information, guidelines, tips and practices as well as a sustainability rating. The rating is ‘key tool for assessing how successfully a business is addressing the ten key areas of the sustainability framework and for tracking their progress and that of the industry’ (SRA, 2021). In the meantime, there are numerous initiatives across the globe, which demonstrate that the hospitality industry sustainable awareness is growing and being taken seriously as a business strategy.

Dealing with Challenges: Two Philosophical Approaches As written earlier in the chapter, a strong motivation for hospitality companies embarking on sustainable business initiatives is the competitive advantage that can be achieved. Although competitive advantage is seen to be necessary, it must be stated that in fast-changing market conditions, competitive advantages do not last very long. Thus, competitive advantage through sustainability can only be achieved by constant screening of competitors and constant innovation. However, beyond competitive advantage, the business world is expected to stand up to the grand challenges ahead as presented earlier in this chapter as well as in Chapter 1. In an article published in the Harvard Business Review, authors Martin and Kemper (2012) argued that: Businesses clearly have a major role to play in any strategy for saving the planet. They are the engines of the developed economies that devour a disproportionate share of the world’s non-renewable resources and produce a disproportionate share of its emissions. They also generate innovations

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that reduce resource use and lessen pollution. As both a cause of and a solution to environmental degradation, they are inevitably at the center of sustainability debates. (p. 4) Two philosophies stand out among the different theories on how to solve the challenges: the Malthusian and the Solovian approaches (Martin & ­Kemper, 2012).

The Malthusian Approach to Sustainable Hospitality The Malthusian approach is based on the work of Thomas Malthus, a nineteenthcentury English scholar and economist. Malthus considered that the combination of exponential population growth and finite natural resources, food production in particular, is creating a condition known as the Malthusian catastrophe. This is the point where there is simply not enough food to go around with multiple consequences including wide-scale famines (Malthus, 1798). The Malthusian approach thus prescribes a strategy to save the planet and its inhabitants based on restraints and constraints. Thus, similar to responsible citizens who reduce, reuse, and recycle, a ‘good corporation should reduce, slow down and conserve’ (Martin & Kemper, 2012, p. 5). Thus, a change in behaviour is deemed a necessity to face the grand challenges where businesses ‘self-impose limits to growth’ (Martin & Kemper, 2012, p. 5) and civil societies turn to governments to facilitate or enforce the behavioural transition towards restraint.

A Malthusian Hospitality The hospitality industry has implemented the Malthusian approach to a certain extent already. The basic 3Rs of waste management (Reduce, Reuse, Recycle) implemented throughout many hospitality operations is an example. When a hotel replaces old carpets with carpets made from 100% recycled materials, uses better food rotation systems thus reducing the amount purchased in the first place, and has an extensive paper, plastic and glass recycling strategy in place, that hotel acts in the Malthusian realm. Many eco-lodges have implemented extensive environmental systems which look at a drastic reduction of waste produced so as to minimise the amount of waste management in the first place. Restaurants are also contemplating going ‘zero-waste’ in their operations. Combined with a pre-industrial food system, where food is sourced from ‘clean’ farming, some restaurants combine outstanding menu items with sound sustainable management such as onsite food digester for food waste treatment closing the loop with the compost produced to grow yet more food. The use of technology, such as the onsite food digester, is where the Solovian approach to dealing with the grand challenges starts.

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The Solovian Approach to Sustainable Hospitality American economist Robert Solow developed an economic theory where productivity is influenced by continuously improving technological innovations. Thus, the Solovian approach is based on the use of technological innovations to face the grand challenges. In the past few decades, the number of technological patents has vastly increased and technology has become a dynamic energiser of many businesses. Better technology often leads to greater efficiency. Businesses are forced to carefully assess which technologies to put into practice. Particularly since many technologies usually require large capital investment – especially in terms of hospitality facilities, infrastructure such as new heating, ventilation and air conditioning systems, for example. Restaurants treating food waste using anaerobic food digesters to produce methane and compost, is a method of waste management using technology, as favoured by the Solovian approach. The same can be said for much of current energy management practices in the hospitality industry where great hopes are put in technology to mitigate the impacts of energy usage.

A Solovian Hospitality In order to increase the pace towards decarbonisation, net zero carbon buildings or zero-carbon-ready buildings are developed or retrofitted accordingly (see Chapter 6, Facilities). Solar water heating and photovoltaic systems are key components to renewable energy production as well as waste heat recovery from individual air conditioners and cooling and freezing facilities. In terms of energy efficiency, the high thermal building insulation combined with triple glazed windows, represent key features of energy-efficient design. To achieve the state of zero carbon, innovative measures are often necessary, including a reliance on technologies and thus a Solovian approach.

Combining Malthusian and Solovian Approaches According to Martin and Kemper, ‘Malthusian restraint can buy time for Solovian innovation’ (p. 10). Many of the technologies implemented in the hospitality industry today, such as energy-saving or renewable energy production equipment, need to be produced, manufactured and shipped using a vast amount of natural resources in the process, often including fossil-based energy. Thus, the introduction of new technologies deemed to mitigate the greenhouse gases emitted, produces a great amount of those gases in the fabrication and implementation of those technologies (see embodied and operational carbon in Chapter 6, Facilities). The consequence is a delayed effect on mitigating greenhouse gases and climate change mitigation. The changes in behaviour, however, have a direct if not instant impact on emissions. Hotel employees turning off lights and shutting down computers in back offices when they are

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not used, translates into direct energy savings. The same can be said for hotel guests taking a 7-minute shower rather than a 12-minute shower. The 5-minute difference may translate into 50 litres of water saved depending on the shower head type. Multiplied by double occupancy and in a one thousand-room hotel, this change in behaviour has direct impact on water usage mitigation strategy. Combining both approaches is a matter of resource management as well as risk management.

Resiliency and Sustainability The hospitality sector is a global industry. Businesses are located and operating around the clock, around the world. Facing global challenges as discussed in this chapter, the hospitality industry is subject to greater climate and transition risks. There are two significant types of climate change risks that could impact financial stability of hospitality businesses: 1. Physical risks A hotel’s physical infrastructure (e.g., buildings, water, power, sanitation) may be at risk from a variety of natural and man-made hazards placing staff and guests at risk. Physical risks are also associated with the value of physical assets that is affected by climate change. Owning and operating a hotel at sea level includes a physical risk due to more frequent extreme weather events and sea water level increase. This is also impacting the hotel’s profitability and ability to continue operations. 2. Transition risks In the race towards decarbonisation with stricter regulations planned or already implemented, adjustments such as major retrofitting are required now or in the years to come towards a low-carbon economy. Major retrofitting represent higher costs potentially threatening the financial stability of some hospitality business this representing transition risks. Sustainability plays a central role in risk management and more precisely in resiliency (see also Chapter 14, ESG, risks and externalities). For example, hotels restoring not only seagrasses, mangroves but also coral reefs for the enjoyment of guests who come for snorkelling also create natural barriers, as coral reefs provide a buffer from waves, storms, and floods and thus protect hotels located along the coast. Case Study 5.2 discusses how to proactively reduce risk, providing a complete overview of the concept of resiliency in the hospitality and tourism sectors. It introduces the work accomplished in that field by the German Committee for Disaster Reduction (DKKV) and presents the Hotel Resilient Certifications and the Hotel Resilient Multi-Hazard Standards (see Case Study 5.2, Hotel Resilient: Proactively Reducing Risk).

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CASE STUDY 2.2 HOTEL RESILIENT: PROACTIVELY REDUCING RISK Resilience in Tourism

The Problem Natural and man-made disasters, including the impacts of global pandemics, climatic disasters, terrorism and war, have the potential to severely affect tourism. Disasters from major events like earthquakes and tropical cyclones, to smaller and more localised events such as landslides and fires, put tourism destinations and hotels at risk in every part of the world. As the late Bill Faulkner (1945–2002) said: ‘Tourism destinations in every corner of the globe face the virtual certainty of experiencing a disaster of one form or another at some point in their history’ (Faulkner, 2001). Hotels are particularly vulnerable to natural disasters due to their tendency to be in hazard-prone destinations (Faulkner, 2001; Mahon et al., 2013). In addition, the tourism industry is particularly vulnerable to climate change, due to dependency of destinations on climate and environmental conditions (Agnew & Viner, 2001; Hein et al, 2009). Compounding the issue, changing climatic conditions will also lead to more severe and frequent extreme weather events, and bring about other changes including warmer temperatures, sea-level rise, ocean acidification, and bleaching of coral reefs which means even greater impacts on the tourism industry. Despite the vulnerability of the tourism industry to disasters, few tourism businesses have adequate disaster management plans in place to cope with the risks (Faulkner, 2001). The result is that hotels typically react to disasters after the fact rather than proactively implement measures to reduce their disaster risk (Drabek, 1995; Faulkner, 2001; Ritchie, 2008). Crisis prevention has clearly been a low priority for many hotels and tourism businesses (Hystad & Keller, 2008; Ritchie & Jiang, 2019). Attitudes and subjective norms have played a major factor in hotel owners’ perception and response to risk (Wang & Ritchie, 2012; ­Williams & Baláz, 2013). A lack of responsibility has been found to inhibit hotel owners’ engagement in disaster planning and response (Hystad & Keller, 2008). Small hotels have also been found to lack the capacity to properly analyse risk and develop disaster plans (Cioccio & Michael, 2007; Cushnahan, 2004; Wang & Ritchie, 2012). Hotel management staff often believe that they are too busy with daily operations to begin addressing long-term risk (Cioccio & Michael, 2007). Without hotels significantly moving beyond ‘business as usual’ in managing their disaster risks, they cannot play an optimal role in contributing to the resilience and sustainability in their community. Acknowledging the economic importance of the tourism industry and the apparent risk the industry faces to disasters and climate change impacts, the Sendai Framework for Disaster Risk Reduction (UNDRR, 2015) stressed the need ‘To promote and integrate disaster risk management approaches throughout the tourism industry’.

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Importance of Hotels to Local Communities Though hotels have been reluctant to invest their time, effort and resources into comprehensive disaster planning, there is growing evidence that doing so will not only increase the safety, reputation and profit of hotels, it can also strengthen community resilience (Brown et al, 2017). Just as hotels and resorts can be the focal point for economic and social activity in communities, they can also play a vital role when disaster strikes by providing security, refuge and a range of services (Becken & Khazai, 2017). Hotels typically possess resources that are critical to disaster preparedness and response, such as power generators, water tanks, food and cooking supplies, bedding material, medical supplies, transportation and communication equipment. Resilient hotels and resorts can act like mini Emergency Operations Centres in times of crisis, providing critical information and resources to both guests and nearby communities. Moreover, much of the infrastructure to run disaster response operations is onsite, supported by a robust supply chain network. Strengthening the disaster preparedness of hotels and increasing their capacity to contribute to disaster response efforts benefits guests, staff and disaster-affected communities and helps tourism destinations as a whole withstand and recover from disasters. Hotels in disaster-prone areas can be transformed from vulnerable and isolated businesses to resilient sanctuaries for their local communities, or ‘islands of resilience’ as characterised by Becken and Khazai (2017). Indeed, many cases have been observed of hotels supporting local communities in times of disaster. Following Hurricane Dorian in 2019, hotels in the Bahamas and Florida provided free accommodation to families and aid workers, proving critical to the relief effort (WPTV, 2019). Similarly, hotels provided assistance during Hurricane Harvey in 2017 (Orlov, 2017). In response to the COVID-19 pandemic, hotels helped their host communities and local governments in many ways. Hotels around the world worked with governments and community organisations to provide shelter to medical staff, the homeless, disadvantaged groups, vulnerable families and individuals requiring quarantine, with many doing so free of charge (Brandler, 2020; McGrath, 2020). In addition, hotels were transformed into makeshift care facilities for COVID-19 patients (Johanson, 2020).

Resilience Defined Resilience is the ability of individuals, households, communities, cities, institutions, systems and societies to prevent, resist, absorb, adapt, respond and recover positively, efficiently and effectively when faced with a wide range of risks, while maintaining an acceptable level of functioning without compromising long-term prospects for sustainable development, peace and security, human rights and well-being for all (UNDP, 2020). Initially, resilience was used to describe the ability of ecosystems to cope with and withstand external stress, e.g., the temperature rise a coral reef can withstand without dying off. Inherently, this refers to the ability to recover and to ‘bounce back’ after disturbances. This understanding of resilience, termed ‘engineering resilience’ (Holling, 1973; Hollnagel et al., 2006), thus referred to stability, resistance and rigidness. Ecological resilience on the other hand is based on the understanding that recovery does not necessarily mean returning to the initial conditions but to new quasi-stable system states (‘bouncing-forward’)

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(Hollnagel et  al., 2006; Hollnagel, 2013). This concept of resilience was later extended to social-ecological systems, providing a conceptual framework of nested systems interacting with each other across scales (panarchy) (Holling & Gunderson, 2002). A strong focus is put on the transformations and interactions of systems across the various scales, which grow, mature, collapse and renew. Thus, resilience is rather understood as a process of transformation and adaptation, also facilitated by learning and remembering from past transformations. Today, resilience has become the guiding principle and explicit goal of multiple international frameworks, e.g., the Sustainable Development Goals (United Nations, 2015a), the Paris Climate Agreement on Climate Change (United Nations, 2015b), the Sendai Framework for Disaster Risk Reduction 2015–2030 (UNDRR, 2015), and the New Urban Agenda (UN Habitat, 2016). Although the definitions differ slightly, they all essentially share the understanding that resilience encompasses a set of capacities (UNDP, 2020), i.e., the capacity of a system to (i) absorb, (ii) adapt, (iii) anticipate, (iv) prevent and (v) transform in response to risks and crises.

Resilience in Tourism Brown et al. (2017, p. 365) define resilience in the hospitality sector as ‘a dynamic condition describing the capacity of a hotel, together with its stakeholders (staff, guests, the local community), to assess, innovate, adapt, and overcome possible disruptions that are triggered by disaster’. Resilience is therefore a state of continuously expanding one’s knowledge of potential risk and improving capacity to withstand and overcome foreseen and unexpected threats. Viewing disaster and climate risks to hotels and destinations from a systems perspective, one can strengthen resilience by improving system design. Tourism is a complex adaptive system (Becken, 2013; Cochrane, 2010). A tourist destination evolves in a non-linear fashion (Butler, 1980) and small inputs, such as a new attraction, transportation route or conservation policy can have widespread and lasting impacts on the destination. Added to this are the various disruptions to the tourism system associated with natural and man-made disasters, including climate change impacts. It is therefore no surprise that sustainable tourism and tourism risk researchers are highlighting the complex nature of tourism crises and disasters (Becken, 2013; Ritchie & Wang, 2019). There are two main approaches to design a system, business or hotel to be resilient. One can focus on strength and resistance to impacts. In this approach, establishing strong buildings, efficient systems, qualified personnel, and redundant resources can help to prevent or reduce disaster impacts. Another approach is to design the system, business or hotel to be adaptive to change. In this approach, monitoring and evaluation of disaster risk is needed to inform change in the system, as is flexibility in disaster planning, response and recovery strategies. Becken (2013) argues that improving adaptive capacity is key to resilience building. Hotels and destinations will need to adapt to each specific disaster in a different way (Faulkner, 2001; Hystad & Keller, 2008). Naturally, a combined approach is recommended to improve a hotel’s ability to withstand known hazards and adapt to dynamic and unpredictable crises.

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Resilient Tourism Project by DKKV The German Committee for Disaster Reduction (DKKV) represents the largest platform for disaster risk reduction in Germany and has been promoting prevention and resilience building in science, practice and politics for 30 years. DKKV acts as an umbrella organisation for German institutions and experts in the field of disaster risk reduction and functions as an intermediary to national and international networks and initiatives. DKKV is active in three fields: (1) networking and fostering exchange between experts from science, practice, administration, and politics; (2) consulting to provide best practices and actionable advice to stakeholders; and (3) knowledge transfer addressing civil society and the public to promote prevention measures. To this end, DKKV draws on the wide-ranging expertise of its members ranging from institutions from administration, science, and practical disaster prevention. DKKV is well connected to national and international networks and maintains connections to institutions and experts across Germany, Europe, and the world (www.dkkv.org).

Project Description Given the importance of tourism as a tool for sustainable development, DKKV was charged to implement a project on resilient tourism by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ). DKKV teamed up with Hotel Resilient to promote resilience in the tourism sector with a strong focus on the hotel industry. A series of workshops with experts from science and practice was carried out to raise awareness and pilot activities were carried out in the Maldives, Sri Lanka and Palestine. Future projects plan to further promote resilience building and to develop an integrative concept of resilience for entire destinations, combining both aspects of sustainable development as well as disaster risk reduction.

CASE STUDY 2.3 HOTEL RESILIENT Hotel Resilient Certifications UG, emerged from the Hotel Resilient Initiative under the Global Initiative for Disaster Risk Management implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) in partnership with the United Nations Office for Disaster Risk Reduction (UNDRR) and the Pacific Asia Travel Association (PATA). This initiative was a response to the findings of the Global Assessment Report (GAR) 2013, which stated that many hotels and resorts lack the know-how, resources and systems to reduce their risks and prepare for disasters (United Nations, 2013). The GAR report also found a lack of consistency in how the hospitality sector manages crises – and highlighted the need for internationally supported, industry recognised standards on crisis resilience that considers all hazards from a risk-based perspective. That precisely

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became the mission of Hotel Resilient Certifications UG, founded in Germany in 2020 as a scientific benchmarking and certification body for crisis risk management and climate change adaptation of hotels and resorts. The goal of Hotel Resilient is to enable all hotels to thrive in the face of natural disasters and climate change. By doing so, Hotel Resilient enhances guest safety and business continuity, and contributes to the resilience of local communities, destinations and national economies that rely on tourism.

The Approach Hotel Resilient provides hotels with risk analytics and performance metrics for multiple hazards and future climate scenarios through the Hotel Resilient platform. The assessment methodology prompts users to enter key information on: structural and non-structural components of the building; safety systems infrastructure, evacuation and warnings; and management processes for disaster preparedness, response, communication and business continuity. Engineering models are used to establish a detailed a risk profile which accounts for each hazard. The result is a performance-based resilience rating. Audits are then linked to the Hotel Resilient Standards to outline and prioritise mitigation and adaptation strategies. The standards follow an integrative disaster resilience framework addressing resilience in hotels from all hazards, including pandemics and impacts of climate change, and contain over 250 elements. This framework is designed to measure a hotel’s current state of resilience, highlight areas to improve and detail the actions required to do so. Hotel Resilient also helps hotels build resilience capacity through practical implementation guidelines, training courses and software platform. Finally, Hotel Resilient builds the recognition of resilient hotels through Hotel Resilient Certification.

Hotel Resilient Multi-Hazard Standards The Hotel Resilient Standards are broken down as follows: Hazards & Site: The hazards that could potentially impact the hotel need to be assessed as well as the various factors present at the site. Site conditions will influence the vulnerability of the hotel to hazards, and in some cases may amplify hazard impacts. Structure: The design and condition of the building structure are critical factors in the building’s ability to withstand the physical stress caused by hazards, such as seismic loads, wind loads and direct impact from water or debris. Building Components: Non-structural elements of the building can cause much damage and result in casualties in the event of a disaster. The vulnerability of Building Components to hazard impacts is key to understanding the level of risk. Infrastructure & Supplies: Infrastructure can be vital to the hotel and needs to be protected to keep critical functions operating. In order to respond and cope with disasters and their impact, emergency equipment and supplies are required on hotel premises. Evacuation & Rescue: The evacuation and rescue systems include those physical routes and signage that allow guests and staff to get away from harm’s way to safe areas efficiently, as well as rescue of injured or trapped individuals.

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Figure 2.3 The Hotel Resilient multi-hazard standards

Warning Systems: The effectiveness of the warning system relies on a variety of factors, including the hotel’s ability to monitor hazard threats and disseminate warning to guests and staff. Warning systems may include audible or visual alerts and public address systems. Crisis Communication: During and after disaster events, communication may be required with emergency services for life-safety reasons, such as evacuation, search and rescue, medical assistance, or provision of basic human needs like food, water and shelter. Preparedness & Management: Even if a hotel or resort building is well designed and constructed and has adequate safety systems installed, unless there are effective preparedness and disaster management protocols in place, there is a high risk that the building and systems could be compromised by a hazard event. Business Continuity: The Business Continuity Plan documents how the organisation will respond and restore normal business operations after a disaster. It includes a Business Impact Analysis of how the hotel’s or resort’s operations might be disrupted by different disaster scenarios.

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CASE STUDY 2.4 HOTEL INDUSTRY’S RESPONSE TO COVID-19 Hotel Response With the COVID-19 pandemic resulting in global travel restrictions and shutdowns across the industry, from airlines to hotels and restaurants, the vulnerability of the tourism industry and its importance to disaster recovery has been thrust into the spotlight. As travel returns, tourists are being extra cautious, with 70% of travellers now booking only after confirming which health and hygiene policies are in place, according to a Booking.com (2020) survey of 20,000 travellers. In choosing accommodations, hotels with a comprehensive COVID-19 safety strategy are in high demand. To improve safety and guest confidence, many hotels quickly established a disaster management plan under the stress and uncertainty of an evolving pandemic. Hotels had to identify potential transmission pathways and business risks to make adjustments to their amenities and services. Quickly becoming the norm were procedures to ensure physical distancing, enhanced cleaning and safe hygiene. Less standardised but just as important were policies and procedures for screening guests and staff, handling symptomatic cases, self-isolating, reporting infections, supporting contact tracing and communicating COVID-19 information to stakeholders. The process of developing and implementing COVID-19 safety measures has had the added benefit of improving hoteliers’ perception of risk and understanding of the importance of implementing disaster management plans and further measures to increase resilience.

COVID-READY Standards Hotel Resilient’s risk specialists have been intensely involved from the beginning of the COVID-19 crisis, reviewing international guidelines, industry best practices and the latest scientific research related to the pandemic, resulting in the establishment of the Hotel Resilient COVID-READY standards (Figure 2.4). The COVID-READY standards are comprehensive, with over 60 elements to address all areas relevant to a hotel’s COVID-19 prevention and response strategy (Figure 2.5). The COVID-READY standards outline the steps that hotels and resorts should take to strengthen COVID-19 prevention and response strategies and earn the trust of safety minded travellers. The COVID-READY standards are supported through a user friendly self-audit software, a comprehensive e-Learning package and linked to flexible certification options to meet the needs of hotels and resorts everywhere. To encourage uptake and support the industry, Hotel Resilient has made access to the standards, audit system and e-learning free for all hotels during the pandemic.

Experience with COVID-READY Hotels As part of the COVID-READY Certification process, Hotel Resilient reviewed a variety of documentation from hotels to prove their readiness to re-open and welcome new guests,

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Figure 2.4 The Hotel Resilient COVID-READY standards

Figure 2.5 Key areas covered by the Hotel Resilient COVID-READY standards

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Picture 2.1 Paresa, a COVID-READY Certified hotel in Phuket, Thailand, demonstrates their enhanced cleaning strategies Photo Credit: Paresa Resort Phuket

including COVID-19 Response Plans, detailed Standard Operating Procedures (SOPs), photographic evidence and video walkthroughs of hotel properties. The evidence illustrates that hotels who choose certification are taking the risk of COVID-19 very seriously. Hotels are implementing extensive safety measures covering all aspects of their operations (Picture 2.1). Hotels are also going to great lengths to showcase their safety measures, through signage and information packets for guests to online information and safety promotional videos. Effectively communicating safety measures has been found critical to ensure compliance and to give guests peace of mind at time of booking that the hotel meets high standards for COVID safety. As the manager from Best Western Plus The Beachfront (Phuket) said, they wanted an international COVID safety certification for ‘Showing confidence to our customers and our team members that the hotel is a safe place to work and stay’.

Beyond COVID The impacts of COVID-19 underline the importance of the tourism industry to not only national economies but to the hundreds of millions of tourism jobs, including the SMEs, vulnerable populations and low-wage workers that have been hardest hit. While this proves that disruptions to the tourism industry can have devastating and far-reaching impacts, it reminds us of the potential benefits of improving the resilience of the tourism industry. The COVID-19 pandemic has shown that hotels were able to make functional and operational shifts that accelerated the recovery of their destinations. Further positive impacts could be realised if hotels extended their adaptation strategy to build greater disaster and climate resilience. At the time of writing (2nd quarter of 2021), the focus of the sector remains on crisis management and restarting business activities, i.e., bouncing-back to initial conditions. However, a ­resilience-building perspective, which addresses long-term risks such as natural hazards, climate change and biodiversity loss, is recommended to help destinations and hotels to re-emerge from the

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pandemic stronger than before, i.e., to bounce forward. Tourism beyond COVID therefore represents an opportunity to build back better, supported by the newfound global understanding that the tourism industry must become more resilient to external impacts.

Contacts Dr. Trevor Girard Director of Standards and Accreditation, Hotel Resilient Certifications UG, [email protected] Dr. Bijan Khazai Chief Executive Officer, Hotel Resilient Certifications UG, [email protected] Dr. Benni Thiebes Managing Director, German Committee for Disaster Reduction/Deutsches Komitee Katastrophenvorsorge (DKKV), [email protected]

Case Study References Agnew, M. D., & Viner, D. (2001). Potential impacts of climate change on international tourism. Tourism and Hospitality Research, 3(1), 37–60. Becken, S. (2013). Developing a framework for assessing resilience of tourism sub-systems to climatic factors. Annals of Tourism Research, 43, 506–528. Becken, S., & Hughey, K. F. (2013). Linking tourism into emergency management structures to enhance disaster risk reduction. Tourism Management, 36, 77–85. Becken, S., & Khazai, B. (2017). Resilience, tourism and disasters. Tourism and Resilience. R. W. Butler (ed.). Boston, MA: CAB International, 96–102. Booking.com. (2020). Smarter, Kinder, Safer: Booking.com Reveals Nine Predictions For The Future of Travel, https://globalnews.booking.com/smarter-kinder-safer-bookingcomreveals-nine-predictions-for-the-future-of-travel/ [Accessed: 26 April 2021] Brandler, H. (2020). Hotels and apartments open to medical staff. Business Traveller. https:// www.businesstraveller.com/features/hotels-and-apartments-open-to-medical-staff/ Brown, N. A., Rovins, J. E., Feldmann-Jensen, S., Orchiston, C., & Johnston, D. (2017). Exploring disaster resilience within the hotel sector: A systematic review of literature. International Journal of Disaster Risk Reduction, 22, 362–370. Butler, R.W. (1980). The concept of a tourist area cycle of evolution: Implications for management of resources. In: The Tourism Area Life Cycle, Vol. 1 (pp. 3–12). Channel View Publications. Cioccio, L., & Michael, E. J. (2007). Hazard or disaster: Tourism management for the inevitable in Northeast Victoria. Tourism Management, 28(1), 1–11. Cochrane, J. (2010). The sphere of tourism resilience. Tourism Recreation Research, 35(2), 173–185. Cushnahan, G. (2004). Crisis management in small-scale tourism. Journal of Travel & Tourism Marketing, 15(4), 323–338. Díaz Pérez, F.J., Díaz Martín, R., Pérez Trujillo, F.J., Díaz, M., & Mouhaffel, A.G. (2019). Consumption and Emissions Analysis in Domestic Hot Water Hotels. Case Study: Canary Islands. Sustainability, 11, 599. https://doi.org/10.3390/su11030599

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Drabek, T. E. (1995). Disaster planning and response by tourist business executives. Cornell Hotel and Restaurant Administration Quarterly, 36(3), 86–96. Faulkner, B. (2001). Towards a framework for tourism disaster management. Tourism Management, 22(2), 135–147. Gössling, S., Scott, D., & Hall, C. M. (2020). Pandemics, tourism and global change: A rapid assessment of COVID-19. Journal of Sustainable Tourism, 29(1), 1–20. Hall, C. M., Scott, D., & Gössling, S. (2020). Pandemics, transformations and tourism: Be careful what you wish for. Tourism Geographies, 22(3), 577–598. Hein, L., Metzger, M. J., & Moreno, A. (2009). Potential impacts of climate change on tourism; a case study for Spain. Current Opinion in Environmental Sustainability, 1(2), 170–178. Holling, C. S. (1973). Resilience and stability of ecological systems. Annual Review of Ecology, Evolution, and Systematics, 4(1), 1–23. Holling, C. S., & Gunderson, L. H. (2002). Panarchy: Understanding transformations in human and natural systems. Washington, DC: Island Press. Hollnagel, E. (2013). Resilience engineering in practice: A guidebook. Ashgate Publishing, Ltd. Hollnagel, E., Woods, D. D., & Leveson, N. (2006). Resilience engineering: Concepts and precepts. Ashgate Publishing, Ltd. Hystad, P. W., & Keller, P. C. (2008). Towards a destination tourism disaster management framework: Long-term lessons from a forest fire disaster. Tourism Management, 29(1), 151–162. Ivkov, M., Blešić, I., Janićević, S., Kovačić, S., Miljković, Ð., Lukić, T., & Sakulski, D. (2019). Natural disasters vs hotel industry resilience: An exploratory study among hotel managers from Europe. Open Geosciences, 11(1), 378–390. Johanson, M., (2020). Today’s hotel is tomorrow’s coronavirus hospital. https://edition.cnn. com/travel/article/hotels-turned-hospitals-coronavirus/index.html Mahon, R., Becken, S., & Rennie, H. (2013). Evaluating the business case for investment in the resilience of the tourism sector of small island developing states. Lincoln University. McGrath (2020). Hotels around the world offer free lodging to protect medical. Architectural Digest, 26 March 2020. Orlov, A. (2017). How hotels play an integral role in natural disaster relief. https://www.mic. com/articles/184102/how-hotels-play-an-integral-role-in-natural-disaster-relief Ritchie, B. (2008). Tourism disaster planning and management: From response and recovery to reduction and readiness. Current Issues in Tourism, 11(4), 315–348. Ritchie, B. W., & Jiang, Y. (2019). A review of research on tourism risk, crisis and disaster management: Launching the annals of tourism research curated collection on tourism risk, crisis and disaster management. Annals of Tourism Research, 79, 102812. Sudmeier-Rieux, K. I. (2014). Resilience–an emerging paradigm of danger or of hope? Disaster Prevention and Management, 23(1), 67–80. UN Habitat (2016). New Urban Agenda. https://unhabitat.org/sites/default/files/2019/05/ nua-english.pdf UNDP (2020). UN Common Guidance on Helping Build Resilient Societies. https://www. sparkblue.org/system/files/2020-10/UN%20Resilience%20Guidance_Final_6%20Oct_ no%20foreword.pdf

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UNDRR (2015). Sendai Framework for Disaster Risk Reduction 2015–2030. 37 p. https://www. preventionweb.net/files/43291_sendaiframeworkfordrren.pdf United Nations (2013). Global Assessment Report on Disaster Risk Reduction. https://www. preventionweb.net/english/hyogo/gar/2013/en/gar-pdf/GAR2013_EN.pdf [Accessed: 26 April 2021] United Nations (2015a).The 2030Agenda for Sustainable Development.Springer Publishing Company,NewYork.https://sustainabledevelopment.un.org/content/documents/21252030% 20Agenda%20for%20Sustainable%20Development%20web.pdf [Accessed: 2 February 2021] United Nations (2015b). Paris Agreement. https://unfccc.int/sites/default/files/english_ paris_agreement.pdf [Accessed: 2 February 2021] Wang, J., & Ritchie, B. W. (2012). Understanding accommodation managers’ crisis planning intention: An application of the theory of planned behaviour. Tourism Management, 33(5), 1057–1067. Williams, A. M., & Baláž, V. (2013). Tourism, risk tolerance and competences: Travel organization and tourism hazards. Tourism Management, 35, 209–221. WPTV (2019). Dorian is strongest hurricane in modern records for NW Bahamas (wptv.com), https://www.wptv.com/weather/hurricane/dorian-is-strongest-hurricane-in-modernrecords-for-nw-bahamas [Accessed: 20 April 2021]

Exercises 1. SMALL ROUP WRITTEN ASSIGNMENT & PRESENTATION The Basics of Sustainable Development • In your own words, define or describe the concept of ‘Sustainability’? Carry out Internet research on definitions of ‘Sustainability’ or ‘Sustainable Development’? What do all definitions have in common? What are the differences? Which one do you prefer and why? • In a few sentences, describe the ‘Agenda 21’. Does Agenda 21 play a role in the way the hospitality and/or tourism industry is being managed and developed? • In a few sentences, describe the ‘Paris Agreement’. What are the challenges and opportunities linked to the Paris Agreement? In which way does the Paris Agreement influence the way the hospitality industry will operate in the future? • Complete an Internet search on the Sustainable Development Goals (SDGs). Which of the goals are directly related to the hospitality industry? In which way? What can or should the industry do to help? • Complete an Internet search and define ‘Precautionary Principle’. Then answer the following: Should those who wish to introduce a new chemical, a new industrial process, a land-use change, etc, have to demonstrate that their change will not harm the environment before proceeding?

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The owners of a hotel decide to expand their facilities to include a full spa. In order to complete the construction of the new facility, a small stream will have to be re-directed. Should the owners have to demonstrate that the plans will not harm the environment before proceeding? • Many countries and states have introduced some kind of carbon pricing method. Complete an Internet research on the subject of ‘Carbon Markets’, ‘Carbon Tax’, ‘Carbon Cap & Trade System’ or ‘Carbon Offsetting’. What are your thoughts on those? Is it the case that once a ‘price tag’ is attached to something, say ‘nature’, only then do humans start taking care of that something? In which way would a carbon tax influence the way hospitality companies conduct their operations? 2. INDIVIDUAL RESEARCH OR GROUP RESEARCH Climate Change and Low-Lying Islands Many countries with sizable populations living in coastal areas, as well as some small countries with their entire land area near or at sea level, are acutely concerned about the impact of sea-level rise associated with human alteration of the atmosphere. The Maldives, being a popular tourist destination, is one such country. Research the position of the government of the Maldives on sea-level rise and write a paragraph summarising it. Many low-lying islands have formed an Alliance of Small Island States (AOSIS). Alternatively, you may research the position of the AOSIS on climate change. Responsibilities towards Others What responsibilities do countries that produce the majority of GHGs have to mitigate the impact on countries like the Maldives or a small island state? 3. INDIVIDUAL WRITTEN ASSIGNMENT Local, Regional, National and Tourism Challenges Local Challenges Choose the current neighbourhood you live in and discuss whether you see any challenges you would associate with sustainable development (e.g., environmental, economic or societal pillar), for example: ‘you may not have access to public transport nor are there safe bike paths thus a reliance on individual cars for city transportation is mandatory’ Once you have identified the challenges, what solutions would you propose or opportunities do you see? Regional Challenges Choose either the region you currently live in or the region where you come from and discuss whether you see any challenges which you would associate with sustainable development and describe them. Once you have identified the challenges, what solutions would you propose or opportunities do you see? National Challenges Choose either the country you currently live in or another country of your choice and discuss whether you see any challenges which you would

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associate with sustainable development and describe them. Once you have identified the challenges, what solutions would you propose or opportunities do you see? Tourist Destination Challenges Choose a tourist destination of your choice and discuss whether you see any challenges which you would associate with sustainable development and describe them. Once you have identified the challenges, what solutions would you propose or what opportunities do you see? 4. GROUP DISCUSSION OR WRITTEN ASSIGNMENT Hospitality and Sustainability Challenges • What is the biggest environmental and societal issue facing the hospitality industry in your region/country? • How does it affect the hospitality business? • To what extent does hospitality contribute to this issue? • Develop a feature article for a local newspaper responding to these questions. 5. WRITTEN ASSIGNMENT Hospitality, Sustainability and Resiliency Read Case Study 5.2, Hotel Resilient: Proactively Reducing Risk, and provide answers to the following questions in a short essay with supporting evidence from industry examples. • What are the key components of resiliency? • In which way is sustainability associated with resiliency? • What are example of hazards in the hospitality sector? • In which way is risk management linked to resiliency?

References Boulding, K. E. (1966). The economics of the coming spaceship earth. In: H. Jarrett (ed.) Environmental quality in a growing economy (pp. 3–14). Baltimore, MD: ­Resources for the Future/Johns Hopkins University Press. http://arachnid.­biosci. utexas.edu/courses/THOC/Readings/Boulding_SpaceshipEarth.pdf CBD (2010). Strategic plan for biodiversity 2011–2020 and the Aichi targets. Secretariat of the Convention on Biological Diversity & UNEP. https://www.cbd.int/doc/ strategic-plan/2011-2020/Aichi-Targets-EN.pdf CBD (2020). Global biodiversity outlook 5. Secretariat of the Convention on Biological Diversity & UNEP. https://www.cbd.int/gbo5 CHSB (2020). CHSB2020 index tool. Cornell Hotel Sustainability Benchmarking. https://hdl.handle.net/1813/74089 Dibene-Arriola, L. M., Carrillo-González, F. M., Quijas, S., & Rodríguez-Uribe, M. C. (2021). Energy efficiency indicators for hotel buildings. Sustainability, 13, 1754. https://doi.org/10.3390/su13041754 Eisenmenger, N., Pichler, M., Nora, K., Dominik, N., Plank, B., Ekaterina, S., … Gingrich, S. (2020). The Sustainable Development Goals prioritize economic growth over sustainable resource use: A critical reflection on the SDGs from

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a socio-ecological perspective. Sustainability Science, 15(4), 1101–1110. https:// doi.org/10.1007/s11625-020-00813-x Elkington, J. (1994). Towards the sustainable corporation: Win-win-win business strategies for sustainable development. California Management Review, 36(2), 90–100. https://doi.org/10.2307/41165746 Elkington, J. (2005). Cannibals with forks: The triple bottom line of 21st century business. Capstone Publishing. Elkington, J. (2018). 25 years ago I coined the phrase “Triple Bottom Line.” Here’s why it’s time to rethink it. Harvard Business Review, June 25. https://hbr.org/ 2018/06/25-years-ago-i-coined-the-phrase-triple-bottom-line-heres-why-imgiving-up-on-it ENERGY STAR (2015). Energy use in hotels. ENERGY STAR Portfolio Manager Data Trends. https://www.energystar.gov/sites/default/files/tools/DataTrends_All_20150129_ 508.compressed.pdf. FUSIONS. (2016). Estimates of European food waste levels. https://www.eu-fusions. org/phocadownload/Publications/Estimates%20of%20European%20food% 20waste%20levels.pdf Gossling, S. (2015). New performance indicators for water management in tourism. Tourism Management, 46, 233–244. https://doi.org/10.1016/j.tourman.2014.06.018 GRA (2021a). About us. Green Restaurant Association. https://www.dinegreen.com/ about-us.asp. GRA (2021b). Green restaurant certification standards. Green Restaurant Association. https://www.dinegreen.com/certification-standards Grober, U. (2010). Die Entdeckung der Nachhaltigkeit, Munich: Antje Kunstmann. Hardin, G. (1968). The tragedy of the commons. Science, 162(3859), 1243–1248. Hardin, G. (1974). Lifeboat ethics: The case against helping the poor. Psychology Today, September 1974. http://www.garretthardinsociety.org/articles/art_lifeboat_ ethics_case_against_helping_poor.html. Hotel Energy Solutions (2011). Analysis on energy use by European hotels: Online survey and desk research. UNWTO eLibrary. https://www.e-unwto.org/doi/book/10.18111/ 9789284414970 IFC (2007). Environmental, health, and safety guidelines for tourism and hospitality development. Washington, DC: International Finance Corporation. http://www.ifc.org/ wps/wcm/connect/e9f48800488559c0840cd66a6515bb18/Final+-+Tourism+ and+Hospitality+Development.pdf?MOD=AJPERES. IH&RA (n.d.). IHRA 2020. International Hotel & Restaurant Association. http:// ih-ra.com/ihra-2020/. IISD (2015). IGOs, Development banks and UN agencies react to Paris agreement. International Institute for Sustainable Development. http://climate-l.iisd.org/news/ igos-development-banks-and-un-agencies-react-to-paris-agreement/. IRENA (2016). Renewable energy benefits: Measuring the economics. International Renewable Energy Agency. http://www.irena.org/DocumentDownloads/Publications/ IRENA_Measuring-the-Economics_2016.pdf. ITP (2014). Environmental management for hotels: Chapter 4 Waste. Sustainable Hospitality Alliance (then International Tourism Partnership). https://sustainablehospitalityalliance.org/resource/environmental-management-for-hotels/ IUCN (1951, 2011). First report on the condition of the environment. International Union for Conservation of Nature, Gland: IUCN. http://www.iucn.org/.

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IUCN (1991). Caring for the earth: A strategy for sustainable living. World Conservation Union – United Nations Environmental Programme – World Wide Fund for Nature. https://portals.iucn.org/library/efiles/edocs/CFE-003.pdf. Kim, B., & Neff, R. (2009). Measurement and communication of greenhouse gas emissions from U.S. food consumption via carbon calculators. Ecological Economics, doi:10.1016/j.ecolecon.2009.08.017. Malthus, T. (1798). An essay on the principle of population. J. Johnson. http://www. gutenberg.org/files/4239/4239-h/4239-h.htm. Martin, R., & Kemper, A. (2012). Saving the planet: A tale of two strategies. Harvard Business Review, 90, 48–56. Meadows, D. H., Meadows, D. L., Randers, J., & Behrens, W. (1972). The limits to growth. Signet Books. Ordaz, E. (2019). The SDGs indicators: A challenging task for the international statistical community. Global Policy, 10, 141–143. https://doi.org/10.1111/1758-5899.12631 Porter, M. (2004). Competitive advantage: Creating and sustaining superior performance. Free Press. ReFED. (2018). Foodservice food waste action guide. https://refed.com/downloads/ Foodservice_Guide_Web.pdf Ricaurte, E., & Rehmaashini, R. (2020). Hotel Sustainability Benchmarking Index 2020: Carbon, energy, and water. Cornell Hospitality Report, 20(1). https://hdl. handle.net/1813/74089 SHA (2021). Sustainable siting, construction and design. sustainable hospitality alliance. https://sustainablehospitalityalliance.org/resource/sustainable-sitingconstruction-and-design/ Signatories. (2021). Private sector signatories of the commitment. UNWTO. https://www. unwto.org/private-sector-signatories-of-the-commitment?query=&page=17 SRA (2021). Our work. Sustainable Restaurant Association. https://thesra.org/our-work/ UNEP. (n.d.). Rio Declaration on environment and development. United Nations Environment Programme. http://www.unep.org/documents.multilingual/default. asp?documentid=78&articleid=1163 UNFCCC. (1998). Kyoto Protocol to the United Nations framework convention on climate change. United Nations Framework Convention on Climate Change. http://unfccc. int/resource/docs/convkp/kpeng.pdf. UNFCCC. (2012). Doha amendment to the Kyoto Protocol. United Nations Framework Convention on Climate Change. http://unfccc.int/files/kyoto_protocol/ application/pdf/kp_doha_amendment_english.pdf. UNFCCC. (2015). Adoption of the Paris Agreement, FCCC/CP/2105/L.9/Rev.1. 12 December 2015. United Nations, Framework Convention on Climate Change. http://unfccc.int/resource/docs/2015/cop21/eng/l09r01.pdf. United Nations (UN). (2002). Johannesburg declaration on sustainable development, World Summit on Sustainable Development. http://www.un-documents.net/ jburgdec.htm. UN. (2015a). Adoption of the Paris agreement. Framework Convention on Climate Change, FCCC/CP/2105/L.9/Rev.1. http://unfccc.int/resource/docs/2015/cop21/ eng/l09r01.pdf. UN. (2015b). Resolution adopted by the general assembly on 25 September 2015. http:// www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E.

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UN. (2021). The sustainable development goals report 2021. https://unstats.un.org/ sdgs/report/2021/The-Sustainable-Development-Goals-Report-2021.pdf UNEP. (2021). UN biodiversity conference (COP 15). UNEP & CDP. https://www.unep. org/events/conference/un-biodiversity-conference-cop-15 UNWTO. (2001). Global code of ethics for tourism. World Tourism Organization. http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/docpdf/gcetbrochureglobalcodeen.pdf. UNWTO. (2005). Making tourism more sustainable - A guide for policy makers. World Tourism Organization - UNEP. http://www.unep.fr/shared/publications/pdf/ DTIx0592xPA-TourismPolicyEN.pdf. UNWTO. (2015). Agenda 21 for the travel and tourism industry. World Tourism Organization. http://www.e-unwto.org/doi/book/10.18111/9789284403714. UNWTO. (2021a). International tourism highlights, 2020 Edition. https://doi.org/ 10.18111/9789284422456. UNWTO. (2021b). World tourism barometer, July 2021. https://webunwto.s3.eu-west-1. amazonaws.com/s3fs-public/2021-07/UNWTO_Barom21_04_July_excerpt.pdf? VBGz_hsTz2fvBSOn3i1w7kv0qhI2rTgY= Ward, B. W. (1966). Spaceship earth. New York, NY: Columbia University Press. WBCSD (2016). WBCSD FAQ. World Business Council for Sustainable Development. http://www.wbcsd.org/newsroom/faq.aspx#f2. WCED. (1987). Report of the world commission on environment and development: Our common future. http://www.un-documents.net/our-common-future.pdf. WTTC. (2021). Economic impact of travel & tourism 2021: Global economic impact and trends 2021. World Travel and Tourism Council. https://wttc.org/Portals/0/ Documents/Reports/2021/Global%20Economic%20Impact%20and%20Trends% 202021.pdf?ver=2021-07-01-114957-177 Xuchao, W., Priyadarsini, R., & Eang, L. (2010). Benchmarking energy use and greenhouse gas emissions in Singapore’s hotel industry. Energy Policy, 38(8), 4520–4527. https://doi.org/10.1016/j.enpol.2010.04.006. Zhang, H., Song, H., Wen, L., & Liu, C. (2021). Forecasting tourism recovery amid COVID-19. Annals of Tourism Research, 87, 103149. https://doi.org/10.1016/j. annals.2021.103149

Additional Resources Sustainable Hospitality Alliance. Resources. https://sustainablehospitalityalliance. org/resources/

Additional Material Go to www.routledge.com/cw/legrand to find PowerPoint slides of all the figures and tables from the book, additional case studies, a test bank of questions and extra links to useful videos.

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3 Energy CHAPTER OBJECTIVES The objectives for this chapter are: • To review the importance of energy for the hospitality industry • To analyse hotel energy usage and carbon footprint • To explain the concept of water–energy nexus and applicability in hospitality • To describe the various energy sources available • To differentiate between renewable and non-renewable energy sources • To describe passive solar design and active solar systems • To describe the first-, second-, and third-generation solar cell systems (photovoltaic)

DOI: 10.4324/9781003081128-3

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• To explain other renewable sources such as concentrated solar power, wind, hydro, ocean and geothermal energy as well as biomass • To discuss the concepts of carbon offsetting, decarbonisation and carbon-neutrality • To describe the process involved in an energy management programme • To discuss examples of energy-efficient technologies in hospitality

Introduction: The Importance of Energy in the Building Sector According to the United Nations Environment Programme (UNEP), tourism consists of three sectors: transport, accommodation and services (UNEP, 2011). The same UN agency estimated tourism emissions to be responsible for 5% of the world’s carbon dioxide (CO2) gas emissions (UNEP, 2008). However, a more recent study published in Nature Climate Change, presents a slightly different outcome: the three sectors of global tourism together account for 8% of global CO2 emissions, with a rising tendency (Lenzen et al., 2018). And while the COVID-19 pandemic has put a dent in terms of international tourism arrivals in the year 2020 – with a near-total halt for a few months due to unprecedented measures, including travel restrictions, border closures and lockdowns that were put in place by national governments to mitigate the spread of the corona virus – the result globally has been a significant drop in international tourist arrivals (UNWTO, 2021). Globally, CO2 emissions have dropped in 2020 but emissions globally bounced back in 2021 (IEA, 2021a). Within the tourism umbrella, the hotel sector represents 21% of tourism’s emissions (UNEP, 2011) or approximately 2% of global GHG emissions (ARUP, 2021). The construction and operation of buildings, hotels and all other buildings across the planet translates into 38% of global energy related emissions (UNEP, 2020). Project Drawdown estimated that the enjoyment of nice heated rooms in the winter or cooled offices in the summer represents, globally, a yearly usage of 13,000 terawatt-hours of energy from the 24,000 terawatt (24 billion kilowatt-hours) of electricity produced globally (Hawken, 2017), and is estimated to increase to more than 18,000 terawatt-hours by 2050 (Project Drawdown, 2021). This partly due to the fact that the global building stock will largely increase over the next four decades with an expected two-thirds of the global population living in cities by 2060. (UN, 2018). And while newly constructed buildings are, generally speaking, more energy efficient, it is estimated that 80% of buildings

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in 2050 are already constructed today (UKGBC, 2021). The hospitality building stock is equally expanding, adding thousands of new hotels every year and millions of rooms. Investments in the hotel industry in particular have been high over the past two decades in an attempt to meet the demand but also to secure money in real estate projects. The existing supply is estimated to be at 660,000 hotels (IbisWorld, 2021), but the hotel development pipeline – those new projects, which are being planned or constructed – remains strong. Data from Lodging Econometrics (LE) shows that the global hotel construction pipeline stood at 14,000 new hotel projects for a total of over 2 million rooms at the end of 2020 (Lodging Econometrics, 2021). More than 6,500 hotels accounting for 1.1 million rooms were being constructed by the end of 2020, with another 3,900 hotel projects for 2021 (Lodging Econometrics, 2021). Within the accommodation sector, one can probably add a few more million properties, including small bed & breakfast homes, eco-lodges, tree house hotels, vacation rentals and tented camps, for example. Since this sector is a predominant user, manager and/or owner of buildings, the hospitality industry plays an important role in mitigating global use of energy and emissions, whether of its existing building stock or new properties (Table 3.1).

Table 3.1 Energy and SDGs SDG7: Ensure access to affordable, reliable, sustainable and modern energy for all. The hospitality industry is linked to SDG7 in many ways. The hospitality sector is energy intensive and by supporting the investment in renewable energy sources combined with energyefficiency initiatives, it can mitigate its impacts, reduce emissions, and contribute to a global decarbonisation. Additionally, one-third of the world population use dangerous and inefficient cooking equipment (UN, 2019). Here too the hospitality sector can become active by promoting and supporting the use of efficient cook stoves. Hotels have a particular role to play in supporting the development of infrastructure in the Global South. SDG13: Climate action. The hospitality sector contributes to and is affected by climate change. Through resource-efficiency measures, the implementation of nature-based solutions within the facilities and the preservation of natural areas, the industry can tackle climate emergency. Beyond its own business boundaries, the hospitality sector must play an active role in creating partnerships with organisations providing education and awareness-raising in regard to climate action. Overall, however, the main challenge in contributing to SDG13 is for the hospitality sector to achieve decarbonisation amidst a growing industry. This is the main topic of this chapter. Note: The content of this publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States. (For more information, please visit https://www.un.org/sustainabledevelopment/.)

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This energy chapter touches particularly on the United Nations’ Sustainable Development Goals (SDG) 7 and SDG 13 relevant to clean energy and climate action. One of the greatest challenges for the hospitality industry is to find ways and implement solutions to decouple its growth from its emissions and overall environmental footprint. The combination of energy-efficiency measures and implementation of renewable energy are by and large regarded as a way forward in achieving the decarbonisation targets.

Hotel Energy Usage Hotels are among the highest energy users per square metre of all commercial buildings (Dibene-Arriola et al., 2021) with a range of approximately 60 to 700 kilowatt-hours per square metre (kWh/m2) of floor space, depending on the geographical location and type of property (Dibene-Arriola et al., 2021; ENERGY STAR, 2015; Hotel Energy Solutions, 2011a; Ricaurte & Rehmaashini, 2020; Xuchao et al., 2010). And while advances have been made in energy efficiency in many industrial sectors, in some markets such as the United Kingdom, the hotel industry has failed to decrease its overall energy usage compared to most other sectors of the economy (Ignite Economics, 2020). This situation may be explained in parts due to the unprecedented growth in the hotel building stock (Horwarth, 2019), however, opportunities for energy efficiency in hotels are well published (e.g., ARUP, 2021; Sustainable Hospitality Alliance, 2021a). Linked to energy usage are the carbon emissions from fossil fuel usage at the property (e.g., oil/gas for boilers) and purchased electricity from non-­renewable sources. The 2020 Cornell Hotel Sustainability Benchmarking study reports average carbon dioxide emissions of 84 kilograms of carbon dioxide equivalent (kgCO2e) per square metre of floor area for US-based hotels but with a significant standard deviation (Ricaurte & Rehmaashini, 2020). Carbon footprint in hotels is also often expressed as kgCO2e per occupied room (further explanation of kgCO2e in the section Carbon Footprint within this chapter). Results from studies vary quite significantly from 11 to 29 kgCO2e per occupied room (Diaz-Perez, 2019) and again the variation can be explained by the diversity of geographical location, the final energy mix and type of facilities and amenities provided. Results from the Cornell Hotel Sustainability Benchmarking Index 2020 show a mean of roughly 19kgCO2e per Occupied Room for US-based hotels across all hotel categories and geographies (CHSB, 2020). The mentioned performance data is based on operational energy, that is the energy required for daily operations from heating, cooling, ventilation and air conditioning (HVAC) to lighting needs, for example. Embodied energy, which is the sum of energy that is used and consumed to produce goods or services, such as choice of construction materials or refurbishment needs, is not taken into

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consideration. There is disagreement amongst researchers on the overall share of embodied energy over the total energy consumption throughout a building’s life cycle. Embodied energy estimates vary greatly with data ranging from 10% to over 65% share of total energy consumption of a building being embodied energy (Filimonau, 2011). Considering the ever faster cycles of hotel refurbishment, embodied energy in material and equipment results in a substantial carbon emission share of the overall building life cycle. In a world committed to net zero carbon emissions by 2050 (European Commission, 2019; Sustainable Hospitality Alliance, 2017; WGBC, 2021) the question is what technologies and environmental initiatives should be implemented in the hotel and in which order, so that the most carbon abatement is achieved within a desirable timeframe at the lowest costs? Some hospitality industry leaders understood that it makes business sense to turn operations around and appreciate the economic benefits of sound environmental practice, in particular on the topic of energy management. Hospitality managers may be motivated by one or more of the following reasons: 1. Mitigating energy cost Energy is the second largest spending category for a hotel after labour costs, representing usually anywhere between 5% and 8% of hotel operating costs (Hotelbau, 2015), but can go up to 20% in some cases. 2. Reducing energy wastage A significant amount of the energy used is wasted, leaving ample room for intelligent measures of energy efficiency and conservation. 3. Managing risks Energy from non-renewable sources is directly related to carbon emissions, which in turn exacerbate climate change. Hotels are at risk from a variety of natural and man-made hazards, placing the team and guests at risk. A hotel’s surrounding environment (e.g., sea, forests, natural beauty) can be or is already being affected by fluctuating weather patterns derived from changes in the climate, making the hotel’s destination less desirable for future tourists in the short and long terms. 4. Securing energy sources The energy used by the vast majority of hospitality operations and hotels is predominantly fossil fuel-based whether in form of natural gas, fuel oil or electricity produced from coal-fired power plants. Those are non-­renewable resources, which means that once they are used, they are gone. Additionally, a hotel without energy is like a restaurant without food! (see Case Study 3.1, Energy in a Hotel: A Hygiene Factor).

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CASE STUDY 3.1 ENERGY IN A HOTEL: A HYGIENE FACTOR Imagine the scenario: your guest has just checked in but has to walk up to the fifth floor with luggage as the elevators are not working. The guest enters the room and switches the lights on…but no lighting. The TV is not working and it is hot in the room as the air conditioning is off. Energy is considered a hygiene factor in a hotel: it does not drive satisfaction nor loyalty per se. However, dissatisfaction occurs should there be a lack of energy or energy cuts. Providing sufficient energy is expected and hotels are dependent on energy as it not only impacts guest well-being but also staff who equally require energy to perform daily tasks whether it is housekeeping, vacuuming the guest rooms or the front desk team checking in the guest using a property management system. And since hotels are businesses that operate 24/7 and often 365 days a year, they require sufficient energy round the clock. But what happens if the hotel is located on a remote island where there is no electricity grid? Or the resort is in a country where power cuts are a common occurrence? Take some time to discuss the importance of energy in your daily life and for the hospitality industry. The major energy-consuming activities in a hotel are, in order of importance (based on Hotel Energy Solutions, 2011a): 1. 2. 3. 4. 5. 6.

HVAC (45%) Lighting (18%) Hot water production (14%) Kitchen Operations (13%) Laundry Operations (4%) Others (e.g., office equipment, TVs, etc) (6%)

The conditioning of space (such as HVAC) is the largest single end-user of energy in hotels, accounting for approximately half of the total consumption. Consequently, weather conditions are one of the main factors affecting energy use in hotels. For example, when there is a great difference between the outdoor temperature and a comfortable indoor temperature (extremely hot or extremely cold outdoor temperature), a hotel or restaurant building compensates that difference with HAVC, which in turn greatly influences the quantity of energy consumed.

Factors Influencing Energy Consumption Hotel energy consumption is influenced not only by the weather patterns but also by physical and operational parameters which can be split into four large categories:

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Building Operations Corporate Structure Location

Table 3.2 provides an overview of the factors influencing hotel energy consumption. Those factors would be very similar for restaurants.

Table 3.2 Factors Influencing Hotel Energy Consumption 1. Building Size

The amount of floor space that requires heating, cooling and lighting for example greatly influences the overall energy intensity of a building. The more spacious the building, the greater the energy needs.

Age

There are many opportunities for new buildings to achieve greater energy efficiency through improved insulation techniques, use of energy management systems or implementation of energy-efficient equipment, which may not be possible for older properties.

Shape

A property with many wings and separate buildings (i.e., for restaurants, spa, sport facilities, guest rooms) tends to be more energy intensive compared to a building where all services are offered under one roof only.

Materials

The material used is important in terms of insulation (i.e., carpets keep warm, stones keep cool) and lighting of the building (i.e., lighter versus darker colours, access to natural daylight).

Equipment

The specification and amount of technical and electronic appliances makes a difference in the overall hotel energy consumption (e.g., some technical equipment, such as building management systems, may help maximise building energy efficiency while other equipment, such as guestroom entertainment electronics, results in increased needs of energy).

2. Operations Category

Luxurious hotel properties with extensive supporting facilities (e.g., spa, swimming pools, multiple restaurants, business centre), services and large rooms tend to be more energy intensive compared to hotels with basic facilities (see Facilities/Services).

Energy management

The hotel’s energy management policy, the hotelier’s or management team’s commitment and overall support from all parties (hotel staff, suppliers, guests) are key components to improve energy usage performance.

Occupancy

Occupancy impacts energy consumption as more guests in the building translates into more energy needs. However, some energy requirements are independent of occupancy such as HVAC, which may be centralised or lighting of public spaces and corridors.

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3. Corporate structure Chain affiliation

A hotel belonging to a national or international chain may benefit from headquarter expertise in energy management which may involve staff training, technical advices, and financial support around the topic of energy management. Those services would not be available to an independent hotelier.

Ownership

Many energy-efficient measures and implementation of renewable energy production at a hotel property are matters pertaining to the owner of the building. Should the owner also be the hotel operator, the decision process is simplified and actions to mitigate energy intensity can be quickly implemented. In the case where the owner and the operator are separate entities, decisions in regard to hotel features may be more complicated requiring negotiations on investment and benefits.

Principalagent problem

Hotel general managers (GMs) are often rotating between properties, gathering experience and reputation along the way. This is particularly the case within the hotel chain segment where GMs move from property to property on a two- to three-year basis. Those GMs may have limited interest in implementing extensive energy-efficiency projects, which may show longer payback periods.

4. Location Geo-climatic conditions

Geographical location, climate zones and weather patterns (e.g., humidity level, temperature) impact the use of HVAC to regulate indoor environment.

Policies

Energy policies set by local, regional and national governments where a hotel is located affect the energy prices and influence the type of energy used (i.e., gas, electricity, nuclear, coal, wind, etc.).

Source: Authors based on Hotel Energy Solutions (2011b); López-Bernadé et al. (2021); and Upadhyay et al. (2016)

The growth in global travel has resulted in growth in hotel occupancy and consequently a rise in energy consumption. Research shows, that, even if progress has been made in terms of energy efficiency (i.e., of buildings, equipment, processes), these efficiency gains are not sufficient to compensate for the growth in hotel activity over the past decade (Pablo-Romero et al., 2017). Additionally, the global hospitality industry is increasingly fitted with air-conditioning units to regulate interior temperature and humidity levels. From Singapore’s tropical temperatures with high humidity all year round to Alaska’s Arctic climate and Dubai’s arid summers, buying and installing air conditioners is one of the most common reactions to harsh climatic situations but also a response to changes in the climate, making temperate destinations more likely to experience extreme weather conditions. Air conditioners tend to be energy-hungry appliances whereby ‘a small unit cooling a single room, on average, consumes more power than running four fridges, while a central unit cooling an average house uses more power than 15’ (Buranyi, 2019).

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Many older hotel buildings are fitted with Package Terminal Air-­Conditioning Units (PTAC) commonly mounted in window-walls. These units combine heating and cooling and while they are inexpensive to purchase, easy to replace, and easy to maintain, they tend to be hungrier for energy compared to other systems due to their reliance on electricity (some cooling-only PTAC may operate with natural gas, which is also a non-renewable source of energy). The same applies to electric heating found in guest rooms of smaller properties, which is also inexpensive to install but energy-inefficient. Older European properties on the other hand may be fitted with some form of steam heat system for heating purposes or with a fan-coil heating system. Many do not have a proper air cooling system due to strict regulation in terms of historic buildings, making the use of PTAC impossible. In many cases, air cooling is simply perceived as ‘not being a necessity’. Changes in climate may force managers and owners to revise their stance on air cooling units. Consumer expectation for more comfortable temperatures during the hot summer months is a major driver for this change in attitude towards air conditioning in the hotel industry. Space conditioning (heating, cooling and air conditioning of rooms) is a major component of energy consumption representing almost half of the energy consumed by hotels (Hotel Energy Solutions, 2011a) and when lighting and water heating requirements are added, this totals up to 75%. Lighting fluctuates between 12 and 18% and is perhaps higher depending on the type of establishment (Michael et al., 2017). Hot water demands can account up to 22% of the total energy demand (Diaz Pérez et al., 2019). When tracking energy usage in a hotel, it is thus important to consider water usage as both are interdependent. This is known, in more generic terms, as the water–energy nexus.

Water–Energy Nexus The water–energy nexus is the relationship between the requirements for water to produce energy and the energy requirements to ensure that water is available. In fact, ‘Energy is required to extract, convey, and deliver water of appropriate quality for diverse human uses, and then again to treat waste waters prior to their return to the environment’ (US Department of Energy, 2014a, para 1). For the hospitality sector, energy is also vital to providing fresh water and most importantly, hot water. Energy used to heat up water for guests in their rooms, for the kitchen-, restaurants- and laundry facilities as well as for a pool represents about 22% of the total energy usage for hotels (Diaz Pérez, et al., 2019). Hotel managers can achieve cost reductions by creating water usage efficiencies such as installing low-flow shower heads or tap aerators (see Case Study 3.2, Water–Energy Nexus in Practice). As presented in Case Study 3.2, Water–Energy Nexus in Practice, water consumption induces high energy cost. Consequently, the control of this consumption is essential in order to reduce utility costs. There are multiple solutions to water consumption as presented in Chapter 5, Water.

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CASE STUDY 3.2 WATER–ENERGY NEXUS IN PRACTICE The following exercise is only for representation purposes and does not apply to a particular type of property. You operate a medium sized hotel property in central Europe with 150 bedrooms at a yearly 75% occupancy level. You mostly cater to couples and thus each room has two guests. Your hotel guests take an average of 9-minute shower and the old shower heads have a flow of 15 litres per minute. Water cost in your region are €5 per cubic metre (m3). This includes the freshwater and the costs of wastewater. The hotel can calculate the water expenses following those two simple steps: 1. Amount of water used per month 30 days × 150 rooms × 75% occupancy × 9-minutes shower × 15 litres/min × 2 guests = 911,250 litres of freshwater usage per month 911,250 litres = 911.25m3 of water 2. Water costs per month €5/m3 × 911.25 m3 = €4,556 total water costs for one month But what is the cost of energy related to the water used? The cost of energy is difficult to calculate because it depends on the type of hotel, energy used, types of pumps, water pressure and costs to heat up the water. To keep this exercise simple, only the costs to heat up the water are taken into consideration. In principle, the requirement to provide warm water consists of one-third hot water and two-third cold water. However, a more precise calculation is possible. The following calculations illustrate the water–nexus concept from a costs perspective and are not representative nor based on actual data taken from a hotel’s performance. It also assumes an energy cost of €0.25 per kilowatt-hour (kWh). Continuing from our data calculated above: 3. Total freshwater needs for the month 911.25m3 of freshwater used for the month 4. Kilocalories needed to heat water up In order to heat one litre of water by 1°celsius, 1kcal (kilocalorie) is required, which represents 1,163Wh (watt-hour). 5. Hot water needs for guestrooms Imagine the fresh water is 15°celsius. Water at 40°celsius is desired for hot water needs. The difference is 25°celsius. (Note, while guest may enjoy water at 40°celsius for the bathrooms needs, water in storage must be heated 60°celsius to kill Legionella bacteria (see Chapter 5, Water).)

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6. Calculating energy needs to heat water up The heating energy needed to warm the water is then 1,163Wh × 25°celsius = 29.1kWh for 1m3 7. Monthly water heating costs The total water heating costs per month are (assume all the freshwater would require heating for the purpose of this exercise which may not reflect the actual need for hot water): 911.25m3 × 29.1kWh × €0.25/m3 = €6,629 total hot water costs for one month 8. Energy costs per cubic metre €6,629 total hot water costs/911.25m3 = €7.28 energy costs per m3 of hot water The total cost for 1 m3 of water is thus €12.28 (water costs + energy costs), with energy representing roughly 60% of the total cost.

There are many factors influencing the hotel energy consumption which makes it challenging to provide a general model explaining the energy consumption of a particular hotel that could be universally applicable to all types of hotels. Why do we need to explain energy consumption across different hotels in different locations? In a nutshell, it facilitates the benchmarking of an individual hotel’s performance against other similar hotels. Out of all the factors that influence energy consumption identified in Table 3.2, Factors Influencing Hotel Energy Consumption, only a few factors are generally considered critical in establishing hotel energy benchmark and those are: 1. 2. 3. 4. 5.

Outdoor temperatures (degree days) Guest nights sold (Occupancy) Hotel floor area Hotel standard Presence of a heated swimming pool

Now, (3) hotel floor area, (4) hotel standard and (5) the presence of a swimming pool are fixed attributes – these do not change from one season to the next or from year to year. However, (1) outdoor temperatures do and so does (2) occupancy. So, one important factor in energy consumption changes is the effect of outdoor temperatures.

Degree Days and Energy Consumption The business operations and the outdoor temperature relate directly to energy consumption. If a hotelier wishes to compare a hotel energy performance on a year-on-year basis, then seasonal weather changes must be taken into

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consideration. This is based on the fact that a hotel’s ‘heating and cooling requirements are proportional to the change in the average temperatures during the relevant seasons’ (International Tourism Partnership, 2014, p. 14). The process of compensating for temperature changes can be accomplished by taking into account the number of degree days. A particularity of the sector is that, ‘hotels that have more workers per square foot (related to amenity levels), more commercial refrigeration units per square foot (related to restaurant activity) and/or experience more cooling degree days (CDD1) use more energy, on average’ (ENERGY STAR, 2015). Degree days are an indicator of ‘how far the average temperature departs from a human comfort level, called the base’ (International Tourism Partnership, 2014, p. 14). In most countries the base is set anywhere between 16°C and 20°C. For example, in the United States, the base is 65°Fahrenheit (F) (18.3°C). So, degree days is a measure relative to the amount of heating or cooling necessary at the hotel property relative to a base of 65°F (ENERGY STAR, n.d.). When the temperature is above 65°F, it is assumed that a hotel needs to cool the facilities (see CDD). Conversely, when the temperature is below 65°F, it is assumed that a hotel needs to heat the facilities (Heating Degree Days or see HDD).

CDD (Cooling Degree Days) CDD is the ‘equivalent number of days you would have to cool your building by one degree to accommodate the cooling requirement. For example, if you have a day on which the temperature is 80°F degrees, that day is worth 15 Cooling Degree Days because it is 15 degrees above 65°F. CDD is calculated in this way for each day of the year and summed up to get the total annual CDD’. (ENERGY STAR, n.d.)

HDD (Heating Degree Days) HDD is the ‘equivalent number of days you would have to heat your building by one degree to accommodate the heating requirement. For example, if you have a day on which the temperature is 55°F degrees, that day is worth 10 Heating Degree Days because it is 10 degrees below 65°F. HDD is calculated in this way for each day of the year and summed up to get the total annual HDD’. (ENERGY STAR, n.d.) Degree days are then used to estimate the fuel and power requirements for heating and cooling a building as needed (see Case Study 3.3, Degree Days in Practice).

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CASE STUDY 3.3 CALCULATING DEGREE DAYS IN PRACTICE Your hotel temperature baseline is 18°C. While this may appear to be too cold for some, the equipment and people inside the hotel brings the temperature up to 20 or 21°C, which is then considered to be a comfortable temperature. It is in the middle of fall season and the outside air temperature for November 1st is 17°C. That means that the outside air temperature is one degree below the base temperature of the building (18°C). So you can work out the following formula: 1. degree × 1 day = 1 heating degree day (HDD) on November 1st If, on November 2nd, the outside temperature was 2 degrees below the base temperature (so at 16°C for a base building temperature of 18°C), you would have 2. degrees × 1 day = 2 heating degree day (HDD) on November 2nd On November 3rd, this was a warmer day, and the outside air temperature was 18°C, the same as the base temperature (i.e., 0 degrees below the base temperature). The calculation is then: 0 degrees × 1 day = 0 heating degree day (HDD) on November 3rd On November 4th, it was warmer again: 20°C. Again, the number of degrees below the base temperature 18°C was zero, giving: 0 degrees × 1 day = 0 heating degree day (HDD) on November 4th You might have guessed: when the outside air temperature rises over the base temperature, this results in zero heating degree days. This makes sense, because you would not heat your building during warm days. The same principle exists for Cooling Degree Days (CDD). The calculation is then based on how many days and degrees the temperature surpasses your base and thus you need to cool your building! Let’s continue with our example. On November 5th had a temperature of 16°C from 00:00 to 12:00noon, and 17°C from 12:00noon to 24:00. So for that day we have: (2 degrees × 0.5 day) + (1 degree × 0.5 day) = 1.5 heating degree day (HDD) on ­November 5th And so on. So how many HDD do we have altogether for the period of November 1st to November 5th? One would simply have to add the HDD for the five days: November 1st: 1 HDD November 2nd: 2 HDD November 3rd: 0 HDD November 4th: 0 HDD

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November 5th: 1.5 HDD Total: 4.5 HDD So you would expect the energy consumption for heating on each of those days to vary with the heating degree days. When you compare the heating needs on November 2nd to the heating needs on November 1st, what can you conclude? You would expect the energy consumption for heating the building on each of those days to vary with the heating degree days. So, the heating on November 2nd would use twice as much energy as the heating on November 1st. On November 3rd and November 4th, it is warm enough that the heating system would not be switched one and would therefore result in no energy consumption. Adding together the daily HDD figures results in a total of 4.5 HDD for the five days beginning on November 1st and ending on November 5th. So we’d expect that the heating system would have used 4.5 times more energy in those five days than it used on November 1st alone. When you obtain HDD values for each day in a month, adding them up results in a total HDD for that month. Once you have monthly HDD, you can add all months and obtain the yearly HDD. Source: Based on International Partnership (now Sustainable Hospitality Alliance), 2014

• • • • •

You can use degree days (HDD or CDD) to: detect irregular patterns of consumption due to seasons identify the cause of variation in energy consumption that may be due to outdoor temperature increases or decreases work out energy baseline for your hotel and work with benchmarks to compare the energy performance with other hotels ensure that energy-saving measures are successful by including variation in outside temperature

Degree days calculation is useful when working out a baseline for benchmarking purposes as explained in Case Study 3.4, Using Degree Days to Create a Baseline. Comparing energy performance of a hotel over time and identifying priorities for improvement are integral tasks of energy management, as discussed later in this chapter. With the information gathered in Case Study 3.3, Degree Days in Practice as well as Case Study 3.4, Using Degree Days to Create a Baseline, it is then possible to benchmark a hotel’s performance against others in the industry or with set industry benchmarks for the hotel location (see Case Study 3.5, Benchmarking Energy Performance in Practice). It is important, when benchmarking, to enter the correct climate zone for the hotel location to obtain more realistic outcomes. Benchmarking locally or regionally is therefore recommended. Reaching out to the hotel association is a good option to consider in order to obtain such benchmark data. If such regional data is not available, hotels in the sub-tropics or those located in cold temperate environments should select the climate zone that is the nearest match (i.e., sub-tropical

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CASE STUDY 3.4 USING DEGREE DAYS TO CREATE A BASELINE In Case Study 3.3, Degree Days in Practice, you had calculated 4.5 Heating Degree Days (HDD) from the period of November 1st to November 5th. Once you obtain daily values, you can compute the total degree days for the months and for the year. To facilitate the task, you can also use an online degree days calculator which are based on weather station data and thus automatically compute the degree days for your location. An example of such degree days calculator is from the ENERGY STAR Portfolio Manager: https://portfoliomanager.energystar.gov/pm/degreeDaysCalculator To understand the importance and value of degree days, let’s add one more step with the following hotel example. Pretend you operate a hotel with a total floor space of 20,000 m2 and with a yearly energy consumption for HVAC of 3,000,000 kilo-watt hours (kWh) in a temperate climate. You power your HVAC with natural gas. You calculate your energy performance to be at 150kWh/m2 (which is your yearly energy consumption for HVAC divided by your total floor space in m2). Over the 365 days of the year, you ended up heating your hotel for 125 days. Using a base temperature of 18°C, you calculate a total of 1,200 HDD for the year. So, 1,200 HDD is what you consider your Baseline. Here is a summary of data you have obtained so far: Hotel Floor Space: 20,000m2 Yearly HVAC energy consumption: 3,000,000kWh Energy performance: 150kWh/m2 Total HDD Baseline: 1,200 Total heating days: 125 Hotel base temperature: 18°C This year, you have 100 more HDD compared to last year due to a particularly short but cold winter season. This means that you have a total of 1,300 HDD for this year (baseline of 1,200 HDD + additional 100 HDD). What is the effect on overall energy consumption? Here is the simple calculation to figure out the changes in heating energy consumption due to the additional HDD: HDDs × kWh = 1,300 × 3,000,000 kWh = 3,250,000 kWh HDD baseline 1,200 So your energy consumption for heating has increased by the amount of: 3,250,000 kWh−3,000,000 kWh = 250,000 kWh So that extra energy usage of 250,000 kWh for this year is due simply to cooler temperature and not because you have wasted energy via inefficient energy practices! This data is therefore helpful to adjust your energy benchmark. Increase in consumption = 250,000kWh = 12.5 kWh/m2

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Hotel Area 20,000m2 Therefore, the benchmark should be increased by 12.5 kwh/m2 to reflect the change in HDD. The original energy benchmark was 150kWh/m2. Once the 12.5kWh/m2 is added, you obtain a new benchmark of 162.5kWh/m2. This new benchmark becomes the new baseline to consider in regard to energy consumed in natural gas to power your HVAC. While this example used HDD as a base for calculations (that is, the outside temperature is cold and the building must be heated) the same principle applies with cooling degree days (CDD). Creating a baseline and benchmark are useful to undertake year-on-year comparison, but equally to compare your hotel performance to industry benchmarks. Source: Based on International Partnership (now Sustainable Hospitality Alliance), 2014

CASE STUDY 3.5 BENCHMARKING ENERGY PERFORMANCE IN PRACTICE In order to undertake benchmarking the following data is necessary: • • •

Total floor space in square metres (m2) Yearly HVAC energy consumption Occupancy figures

Continuing with the example discussed in Case Study 3.4, Using Degree Days to Create a Baseline, the following data was obtained: Hotel Area: 20,000m2 Yearly HVAC energy consumption: 3,250,000kWh Energy performance (HVAC): 162.5kWh/m2 For a complete energy picture of your hotel, you would now have to add the data from the electricity purchased to power all hotel equipment and appliances, provide lighting and so on. This is the data you have been tracking via the energy bills for example, or via reading the electricity meters on a regular basis. Development in energy tracking devices and building management systems can help to monitor energy consumption ‘live’. Assume that the yearly electricity consumption adds up to 3,000,000kWh. When adding up the electricity consumption and the natural gas consumption used for the HVAC, the hotel has a total energy consumption of: 3,250,000kWh for HVAC + 3,000,000kWh for other electricity matters = 6,250,000kWh/ m2 of total energy consumption Therefore, the hotel’s total energy performance per square metre of hotel floor space is: 625,000kWh/m2 of total energy consumption/20,000m2 of floor space = 312.5kWh/m2 You are starting to have a clearer picture of your hotel energy performance.

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Here again is the complete data as a summary: Hotel Area: 20,000m2 Total natural gas consumption: 3,250,000kWh Total electricity consumption: 3,000,000kWh Total energy consumption: 6,250,000kWh Energy performance (natural gas): 162.5kWh/m2 Energy performance (electricity): 150kWh/m2 Total Energy performance: 312.5kWh/m2 This data can be used for year-to-year comparison or to monitor the hotel’s performance against industry benchmarks. The following data from the International Tourism Partnership (now Sustainable Hospitality Alliance), shows benchmark value for electricity and other energy consumption in a luxury full-service hotel (year-round operating, with restaurant, laundry and small pool) but in varying climate zones: Energy Consumption (kWh/m2)

Benchmark

Climate zone

Energy type

Excellent

Satisfactory

High

Temperate

Electricity