COLLEGE OF BUSINESS AND MANAGEMENT
DEPARTMENT OF HOSPITALITY MANAGEMENT
BAHCELOR OF SCIENCE IN HOSPITALITY MANAGEMENT
TANDAG CAMPUS DARELL NIÑO E. LORONO, CHIA
Instructor I
COLLEGE OF BUSINESS AND MANAGEMENT
DEPARTMENT OF HOSPITALITY MANAGEMENT
BAHCELOR OF SCIENCE IN HOSPITALITY MANAGEMENT
CHAPTER 1
Sustainable Development in the
Hospitality Industry
eHM2: Sustainable Hospitality
Bachelor of Science in Hospitality Management
Study Objectives
• To explain the way the activities of humankind are
affecting the planet;
• To describe the various forms of environmental
degradation;
• To define sustainable development and explain its
history;
• To explain the three pillars of sustainability;
• To give reasons why the hospitality industry needs to
become more sustainable;
• To give example of sustainable practice in the
COLLEGE OF BUSINESS AND MANAGEMENT
DEPARTMENT OF HOSPITALITY MANAGEMENT
BAHCELOR OF SCIENCE IN HOSPITALITY MANAGEMENT
Emerging Challenges on the
Planet
INTRODUCTION
Human activities have influenced the earth's ecosystem for many thousands
of years. Nowadays the negative consequences of human actions can be
noticed everywhere. Being one of the larger industries in the world, the
hospitality industry is an important contributor to these problems. In this
chapter, it is explained why hospitality operations need to manage their
environmental impacts and exactly what is involved in running a profitable
business in line with the principles of environmental stewardship and to the
benefit of society, i.e. sustainable hospitality management.
PROBLEM DEFINITION
Travel and tourism is one of the largest industries of the
world, responsible for US$6.5 trillion in economic activity, 10.3% of global
GDP and 234 million jobs worldwide in 2006, which corresponds to 8.7% of
total employment according to the World Tourism Organization (WTO,
2006). An industry this big and internationally oriented has an inevitable, large
impact on the environment, economies, cultures and societies in general.
According to estimations, an average hotel releases between 160 and 200kg of
CO2 per square meter of room floor area per year and water consumption per
guest per night is between 170 and 440L in the average five-star hotel. On
average, hotels produce 1 kg of waste per guest per night.
IMPACT ON 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 many thousands of years, man's
impact on the environment was negligible; however, at the dawn of the
industrial revolution all this changed. This depletion is accelerated by the
continuous growth of world population and its changing
consumption patterns.
IMPACT ON THE PLANET
Another consequence of human activity is the changing climate.
Climate changes can be observed by measuring the increases in ocean
temperatures and global sea levels that result from the melting of the polar ice
caps. Scientists expect sea levels to have risen between 10 and 90 cm by 2100.
But human activity has caused increases in the concentration of
greenhouse gases, which have led to increases in air temperatures
around the globe.
As our planet's natural sources become more and more depleted, humankind
is urged to become more responsible in their usage of
non-renewable resources and look for other renewable resources
either in the form of energy, water or raw materials.
DEFINING 'SUSTAINABILITY'
The term 'sustainability' is used from the early 1970s when attention
was first drawn to concerns about the environment and
overexploitation. The most generally used definition was christened by the
World Commission on Environment and Development in 1983.
It published a report called Our Common Future in 1987. This report
became better known as the Brundtland Report, after the commission's
chairwoman Gro Harlem Brundtland, former Prime Minister of
Norway. The report defines sustainability as 'development that meets the
needs of the present without compromising the ability of future generations to
meet their own needs'.
OTHER DEFINITIONS OF SUSTAINABILITY
World Business Council on Sustainable Development
We define sustainable developments as forms of progress
that meet the needs of the present without compromising
the ability of future generations to meet their needs. Given
the scale of poverty today, the challenge of meeting
present needs is urgent. Given the damage our past and
present actions may visit upon our descendants, concern
for future needs for environmental, human, social, and
other resources is also compelling.
OTHER DEFINITIONS OF SUSTAINABILITY
World Tourism Organization
Sustainability principles refer to the environmental,
economic and sociocultural aspects of tourism
development, and a suitable balance must be established
between these three dimensions to guarantee its
long-term sustainability.
(©UNWTO, 9284401109)
DEFINING A SUSTAINABLE HOSPITALITY OPERATION
Using the Brundtland definition as a starting point, a sustainable
hospitality operation can be defined as a hospitality operation that
manages its resources in such a way that economic, social
and environmental benefits are maximized in order to meet
the need of the present generation while protecting and
enhancing opportunities for future generations.
DEFINING A SUSTAINABLE HOSPITALITY OPERATION
For greater clarity, this statement requires examination of the following
questions:
• Which resources used by a hotel impact directly on
economic profit, society and the environment?
• How can the principles of sustainability be incorporated
into a hospitality management system?
• What does it mean for a hotel to meet the needs of the
present generation while protecting and enhancing
opportunities for future generations?
Sustainable hospitality operations or 'green hotels' aim at reducing their impact
CRITICS OF SUSTAINABILITY
Although interest and support for sustainable development is growing
continuously, critics of the movement and skeptics exist as well. Since
numerous definitions of the term 'sustainability' have been created and
received media coverage it 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 criticized as well. Sustainability is not a quick
panacea for all the ills of the world, although for some it has been thought to
be a quick fix.
IMPEDIMENTS TO THE PROGRESS OF ENVIRONMENTAL SUSTAINABILITY
The progress of investments in sustainable hospitality operations is often
impeded by misconceptions about what is the bottom line. Many managers
and owners of hotels only consider the initial investment costs that are indeed
higher when compared to unsustainable solutions. However, the running costs
are generally much lower than in those properties that have inefficient
equipment. 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.
WHY SHOULD HOTELS BECOME MORE SUSTAINABLE?
Pollution, waste, greenhouse gases and environmental hazards do not
necessarily spring to mind when considering the hospitality and tourism
industries. Environmental degradation is more readily associated with
industries like manufacturing, energy production, steel industry, oil production
or the chemical industry. Hotels need to reduce their impact on the
environment as they count amongst the greatest polluters and resource
consumers within the service industries.
SUSTAINABLE DEVELOPMENT IN THE TOURISM AND HOSPITALITY INDUSTRY
The hospitality industry set about incorporating the philosophy of
sustainability in the early 1990s. With the publishing of Agenda 21 for the
travel and tourism industry, individual businesses and the hospitality industry
were encouraged to adopt codes of conduct, promoting
sustainable travel and tourism best practices for the first time.
Gradually voluntary guidelines and examples of best practices were
established in the industry followed by the introduction of eco-labels and
certification procedures.
SUSTAINABLE DEVELOPMENT IN THE TOURISM AND HOSPITALITY INDUSTRY
Around 80% of European hoteliers are involved in some kind of activity
oriented toward the environment; areas most concerned are:
• Energy saving measures
• Water saving measures
• Green purchasing
• Waste minimization practices
Hospitality management associations are paying increased attention to
providing the industry with best practice examples and guidelines. An example
is the International Tourism Partnership which has produced a set of
sustainable hotel sitting, design and construction principles.
FIGURE 1.1
THEORETICAL FRAMEWORK FOR SUSTAINABILITY IN HOSPITALITY INDUSTRY
ENVIRONMENTAL DIMENSION
The environmental dimension focuses on an organization's impact
on flora and fauna that make up the ecosystems in addition to the air we
breathe, the water we drink and the land we enjoy. It involves looking at a
company's environmental footprint in regard to all its operations, facilities and
finished products. Thus, all waste and emission elimination must be examined
in detail.
Hospitality operations can impact on the environment during
building construction, manufacture and use of fixtures and
fittings, cultivation of food, as well as when using energy and
water or producing waste. This examination of environmental impacts
before and during hospitality operations is known as an environmental life
ECONOMIC DIMENSION
All private sector organizations have the main aim of making a profit.
They have other aims as well, but if their main aim is not fulfilled, they will
sooner or later stop operating. Profit maximization, whether stated as the
primary objective or not, is essential for all commercial organizations; without
profit they simply go out of business.
A hospitality company committed to a sustainable business policy
supports and participates in the development of the local
economy and will aim to generate economic benefits for local
people through increased local employment opportunities,
business linkages and other income generating opportunities.
SOCIAL DIMENSION
The social dimension deals with the impact an organization has on the
society within which it operates. The main consideration of the social
dimension is how the hospitality operation can positively contribute to the
lives of local people in the present and in the future.
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 in regard to sourcing
products and food items require consideration. Local food and beverage
sourcing should be considered.
SUSTAINABLE COMPETITIVE ADVANTAGE IN THE HOSPITALITY INDUSTRY
A strong motivation for hospitality companies embarking on sustainable
business initiatives is the competitive advantage that can be achieved.
Although competitive advantages are seen to be necessary, it must be stated
that in fast changing macro-economic environment conditions, competitive
advantages do not last very long.
Competitive advantage cannot be gained by only one single
improvement; it requires a company to constantly question its
strategic position. Thus, competitive advantage through sustainability
can only be achieved by constant screening of competitors and constant
innovation.
COMPETITIVE ADVANTAGE AND TECHNOLOGY
Over the last decades, the number of technological patents has vastly
increased, and technology has become a dynamic energizer of many
businesses. Better technology often leads to greater efficiency and shorter
product life cycles. Technological innovation is one of the most powerful
sources of competitive advantage; and applying superior technology has
helped many firms to achieve a better competitive position within the
hospitality industry.
THANK YOU