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Sustainability and Tourism

A New Approach for TourismDavid Owens, Head of Communications, Arup Europe

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Arup

Montage – Arup Tall Buildings

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More than 1000 hotels globally

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Hotels Design ServicesHotels Design Services

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Emergence of “Green Investment”

Global Market for green goods and services €3.5 billion

US green product introductions 2.8% (1988), 10.7% (1997) estimated 25% in 2009

Socially Responsible Investment (SRI) portfolios estimated to account for approximately 20% of professionally managed funds

How are consumers articulating green preferences and what are the implications for the Tourism Industry?

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... Doesn’t mean hotels like this!

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... Doesn’t mean hotels like this!

Maintain natural appearance Environmental and sustainable approach

Protect the coastline from erosion

Sustainable Transport Reduce Impact on Existing Infrastructure

Create first class destination

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Emergence of the Green Tourist

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Light Green:Characteristics:Business & leisure travellers seeking to minimise the environmental impact of travel - without losing the pleasure and comfort of travel

Requirements:Exceptional experience using the best practice in sustainable operations and management

Example:Royal Caribbean offers luxury on a ship which houses working laboratories that study water pollution & climate change

What is a green tourist?

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Dark Green:Characteristics:Eco Travellers/ “Voluntourists” interested in responsible travel to natural areas which conserves the environment and improves the well-being of local people

Requirements:Ecotourism is as much about experiencing the destination as the way that it is delivered & packaged

Examples:Luxury eco-tents on safari in Kenya, 5 day bike trek in the Himalaya’s

What is a green tourist?

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CMI Green Travel Survey 2009: Defining Green travel

How do they define green travel?

Eco-friendly hotel Uses mass transit and/or renewable

electric vehicles Sources from local businesses Company donates to green

environmental causes Carbon neutral offsets built into pricing

Top 5 responses:

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Hotel Environmental Initiatives

What hotel environmental initiatives are important to them?

Recycling Energy efficiency Water efficiency Non-toxic cleaning chemicals Eco friendly soaps, shampoos, conditioners

Top 5 responses:

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Contributions to the environment

What are the most important contributions to the environment?

Supports local communities and economies

Educates traveller or on environmental diversity

Promotes a culture that values the environment

Creates advocates for endangered locations, species and cultures

Highlights the importance of natural parks and inhabitants

Top 5 responses:

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Contributions to the environment

Motivators for hotel selection

Top 5 responses: Price or special offers Location Quality Online review of property Brand or hotel’s reputation

8. The hotel’s environmental program

10. Sustainable dining options

12. Green certification

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A Paradigm Shift

Green consumers are increasingly seeking out greener forms of tourism They have clear ideas of what they would expect to see in a green hotel Although they have some views on what constitutes sustainable tourism they are

yet to grasp all the facets that would constitute this and there is a role for the mass tourist industry to shape this experience

There is confusion in the market about how to evaluate green claims and certification levels – this needs to be addressed to help consumers make more informed choices going forward

There is no clear green brand leader in this area providing a real opportunity for a destination and hotel brand to win market share and gain early competitive advantage

Price and location still remain a bigger driver for green consumers than green credentials

There is not much price elasticity with findings showing that the majority of people would only accept a price increase of 5% for green

With 64% of US consumers now saying they would buy green products this could equate to a sizeable target market for green tourism in the future

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Why is Mass Tourism Important to MNE Sustainability?

Skills training for locals

New infrastructure Protection of the natural

environment

Innovation Improved bottom line Supply chain benefits

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Final Remarks

Russian tourism offer cannot be re-built around green tourism alone

Next generation mass tourism and eco-tourism can be mutually

supportive

Mass tourism critical to delivering economic and social benefits

Need to foresee a time when all tourists are green

Plan and invest in sustainable infrastructure

Target both light and dark green consumers

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Contact Information

David Owens: ARUP Russia:david.owens@arup.com

Arup Russia36 Krasnoproletarskaya Street, 4th floor

Moscow, RussiaTel: (+7 495) 9-337-557Fax: (+7 495) 9-337-577

www.arup.com