CHAPTER 2

SUSTAINABLE DEVELOPMENT and the

HOSPITALITY INDUSTRY
CHAPTER OBJECTIVES:

The objectives for this chapter are:

 To review the emerging challenges for the planet;

 To develop a rationale for sustainability in hospitality;
 To define “sustainable development”;
 To explore the development of sustainability from a historical perspective;
 To summarize the most important international agreement on sustainable development;
 To define “sustainable hospitality”;
 To analyze the critiques of hospitality;
 To explain the three dimensions of sustainable hospitality;
 To illustrate sustainable hospitality using best practices;
 To review important initiatives supporting sustainable hospitality; and
 To discuss two philosophical approaches to the planet’s challenges.

EMERGING CHALLENGES FOR THE PLANET

Human activities have influenced the Earth’s ecosystem for many thousands of years.
Many of the negatives consequences of human actions can be notices nowadays. Because it is
one of the largest industries in the word, the hospitality sectors is hungry for resources, thus is it
contributor to many issues and at the same time direct affected by changes in the environment.
Whether operating a ski resort in the Alps or coastal retreat, whether a restaurant sourcing its
foods locally or organically, the effects of climate change are felt first-hand. This chapter
explains why hospitality operations needs to manage their environmental and social impacts
and what exactly in involved in running a profitable business in line with the principles of
environmental stewardship and to the benefits of society. In short, the chapter seeks to explore,
discuss and define concept of sustainable hospitality management.

PROBLEM DEFINITION

The boom in tourism and hospitality has given rise to millions of new jobs and increased
economic prosperity in countries around the world. In Philippines: “Philippine tourism is now
a PHP2.2-trillion national industry that generates 12.7 percent of the country's GDP and
employs about 5.4 million people in passenger transport, accommodations, and food and
beverages, among others.”- as of 2019, Bernadette Romulo-Puyat, Department of
Tourism Secretary. As the world’s largest service industry, tourism and hospitality contributes
an estimated 9% to worldwide gross domestic product (GDP) taking into considerations the
direct, indirect and induced impacts and support 284 million jobs around the world, an
estimated 1 to 11 jobs (UNWTO, 2015a; WTTC, 2015). With a continuous growth of
international tourism arrivals well past the one billions mark in 2015 and estimated to reach 1.8
billion by 2030 combined with the total contributions estimated at trillion, the industry is a
significant motor for economic development around the globe (UNWTO, 2015a, WTTC, 2015).
Consequently, there is growing potential for enterprise development and employment creation,
which in turn, stimulates further investment and support development of local services. The
industry also earns substantial foreign exchange and makes a larger contribution to the balance
of payments. And while the economic impacts are significant, the industry has substantial
positive and negative impacts on society and the environment as well and is therefore faced
with a range of increasingly pressing challenges.

COMPLEXITY OF HOSPITALITY INDUSTRY

The industry is complex, consisting of five major segments: food, lodging, travel,
tourism and recreation. Part of the complexity is the comingling of segments, such as a
hotel that houses a restaurant, theater and gift shop. ALL segments of the hospitality
industry must work together to successfully meet customer needs.

1. Food & Beverage segment consists of businesses that prepare food for
customers. It is also known as the foodservice industry. Many food and beverage
businesses are located in another business, ex. movie theaters, airports, malls.
These businesses vary from large to small, casual to fancy/formal.
2. Lodging segment a/k/a Accommodations provide a place to sleep or stay
overnight or longer. These businesses vary by level of service: budget (casual) to
expensive resort, price, location and type. Bed and Breakfasts are located in private
homes and are a part of the Lodging segment; campgrounds and hostels are as
well.
3. Travel segment is the industry that moves people from one place to another. Travel
can be for business or pleasure. Business travel is responsible for 23% of all travel
in the US. Modes of transportation include: automobiles, buses, trains, ships and
airplanes. Businesses in this segment include: car rentals, taxi services, ferry
services, bus services, train services, cruise lines, airlines.
4. Tourism segment consists of businesses that organize and promote travel and
vacations. Businesses in the tourism industry include: travel agencies, tour
operators, cruise companies, meeting & convention planners, and convention and
visitors bureaus. A vacation might involve several different hospitality businesses. A
Travel Package is a trip that includes several segments of the hospitality industry,
such as transportation, lodging, meals, and entertainment. One fee is charged for
the package that covers all of the arrangements. Professional Travel Planners work
for Tour Companies to sell packages to consumers.
5. Recreation segment includes businesses that provide activities for people to rest,
relax and enjoy. The goal of recreation is to refresh a person’s body and mind.
Types of recreation businesses are:

entertainment – provide shows for you to watch; movies, live theater, concerts
 attractions – places of special interest to visit; festivals, state fairs, museums,
zoos

spectator sports – sports that you watch others play; MLB, NBA, NFL, MLS

participatory sports – sports that you take part in; golf, tennis

THE RATIONALE FOR SUSTAINABILITY IN HOSPITALITY

To the uninformed onlooker, environment protection seems much more necessary in industries
where the pollution is actually visible. However, while the process that are necessary in the
assembly of service products may be intangible, tangible and 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, foods and clean water are
essential for hospitality and culinary operations of all sizes and shapes).

IMPACT OF HOSPITALITY

The three key areas of environmental impact are energy, water, and waste.
 In destinations that do not have the necessary infrastructure and systems to
manage these impacts, severe degradation of the environment can occur.
 Making a contribution to solving these problems is often referred to as
greening.
 Becoming more sustainable or environmentally responsible are also often
used to describe achievements in this field.

Larger companies have been criticized as being the main culprit in releasing
excess greenhouse emissions, climate change, environmental devastation, and unfair
treatment of employees.
 Due to such criticisms and negative publicity, many hotel businesses have
increased the focus on corporate social responsibility.
 In a world looking for new models of economic growth and development,
fighting climate change and adopting sustainable management practices is no longer an
option, but a condition for survival and success.

ENVIRONMENTAL IMPACTS

Positive impact
 It sometimes educates the public about the local environment and the
importance of protecting the environment, e.g. the Great Barrier Reef.
 The tourism and hospitality industries often create employment and business
opportunities in an area, contributing to the local economy.
 Hospitality and tourism buildings and venues are being designed and/or
redesigned so that their impact on the environment is reduced and they merge in with
the local environment better.
  Many enterprises are now employing more sustainable practices in order to
promote a green image that appeals to consumers, e.g. using organic products,
recycling, using less toxic chemicals and using more energy and water efficient fittings.
ENVIRONMENTAL ISSUES

The three key areas of negative environmental impact of hotel industry are energy, water, and
waste.

Energy
- According to Gössling et. al. (2005), "the average energy consumption per bed
per night in hotels might be in the order of 130 Mega joules. Hotels generally use more
energy per visitor than local residents, as they have energy intense facilities, such as
bars, restaurants, and pools, and have more spacious rooms". Studies have determined
that a hotel emits an average 20.6 kg of carbon dioxide per night (Gössling et al., 2005).
Excessive energy use is extremely costly and with minor adjustments, it can lead to
massive cost savings.

Waste
- A study conducted by Bohdanowicz (2005) also identified that hotels are not
only resource intensive and that waste generation is one of the most visible effects on
the environment. One estimate identified "that an average hotel produces in excess of
one kilogram of waste per guest per day". Hotel and restaurant waste contributes to
around 25-30 % of the total waste generated.

Water
- Tourists and residents alike require a clean and dependable supply of water for
survival including drinking, cooking and cleansing. However, water is integral to the
amenities usually expected by tourists, such as swimming pools, landscaped gardens,
and golf courses. Water also supports industries such as agriculture that support the
tourism industry (Pigram, 1995

HOTELS IMPACT ON BIODIVERSITY

A hotel impacts biodiversity at each stage of its life cycle, from planning through
to closure:
1. At the planning stage: Even the most sustainably operated hotel will have major
impacts if it is built in a biodiversity-sensitive area. Choices of construction
materials, source of those materials and the total physical footprint of the hotel
will also influence the magnitude of impact in the operational stage.
2. At the construction stage: Impact is determined by the size and location of the
area cleared for development, the choice of construction methods, the sources
and amount and type of materials, water and energy used to build the hotel, the
location of temporary camps for construction workers, inadequate storage
facilities for construction materials, the amount of construction waste that has to
be disposed of, and other types of damage such as surface soil erosion or
compaction caused by construction activities or disruption of natural water flows
and drainage patterns.
3. In the operational stage: A hotel’s impact comes mainly from the energy, water,
food and other resources that are consumed in running the hotel, by the solid
and liquid wastes it produces, by the way its grounds are managed, and by the
direct impacts of its guests. In addition, regular renovation and replacement of
 furniture, appliances and facilities can cause impacts through purchasing choices
and increased waste generation.
4. At the closure stage: A hotel’s impacts come from the disposal of materials
removed from the hotel to refurbish it, convert it for other uses, or demolish it,
and from the work involved in these activities. There may also be some toxic
materials, which will require careful handling and management.

BEST GREEN PRACTICES

 In addition to the social and environmental advantages to reducing energy consumption,

there are financial and customer service benefits for the hoteliers.
 Increasing awareness about the environmental issues has seen hotel guests becoming
more discerning about the environmental credentials of the hotels.
 Being sustainable can enhance hotel business's reputation and help to attract more
customers.
 The investment community is increasingly regarding excellence in environmental
management and performance as an indication of the quality and aptitude of
management in general.
 Some insurance companies and lenders are beginning to selectively adjust their rates
based on environmental criteria.

HOTEL ENERGY SOLUTIONS PROJECT

 In 2008, UNWTO launched the Hotel Energy project.

 The aim of this project is to provide energy efficiency solutions and increased use of
energy efficiency and renewable energy technologies for the tourism accommodation
sector across 27 European Union Countries.
 This is seen as a significant way to reduce the impact of the sector on climate change by
mitigating emissions. The Hotel Energy Solutions project will do three things:
o Develop a range of tools and materials to assist small and medium enterprises
hotels to plan for and invest in energy efficiency and renewable energy
technologies.
o Test the tools in hotels and use the lessons learned to improve them.
o Tell people about these tools- disseminate and promote the most suitable
practical

 The info graphic shows that hotels contribute 60 million tons of CO2 emissions annually
due to wasteful practices and oblivious guests. Yet, if all the hotels in the US were to go
green, reducing their emissions by just 10%, it would be the same as planting 1.1 million
acres of pine trees.

The hospitality industry is starting to change their practices, led strongly by demand
from consumers. People are asking more about green credentials, what practices are in
place and what hotels are doing to minimize their impact on the environment.
It is clear that an investment in green hotels for sustainable global development
and investing in environmentally-friendly tourism can drive economic growth, lead to
poverty reduction and job creation, while improving resource efficiency and minimizing
environmental degradation.
 The time is right for governments to invest in greenhouse gas mitigation and
climate change adaptation approaches.
The time is right for hotel sector to forge ahead with innovative low carbon
initiatives that would contribute to the economy.