Stewardship in the Stewardship in the Hospitality IndustryHospitality Industry

Worldwide, Buildings Account for…

17% fresh water withdrawals

25% wood harvest

33% CO2 emissions

40% material and energy use

– 45% in ChinaSource: US Green Building Council

Perceived Advantages of Building Green

8-9% decrease in operating costs

7.5% increase in building values

6.6% improvement in ROI

3.5% increase in occupancy

3% rent increase *Source: US Green Building Council

Increased productivity_5

The Next Generation’s Perspective will Increase Green

Building

89% choose brands aligned with social cause

74% listen to brands aligned with social cause

69% shop for brands aligned with social cause

66% recommend brands aligned with social cause*Source – US Green Building Council

ATTITUDEATTITUDE BELIEFBELIEF BEHAVIORBEHAVIOR

MO

TIV

ATIO

N

By applying a psychological group dynamic process at cluster level

By applying a psychological group dynamic process at cluster level

The Methodology for Change Management

Emiliano DuchPresident, CompetitivenessEDuch@Competitiveness.comDEVELOPMENT AS CHANGE MANAGEMENT: CATALYZING BEHAVIOR CHANGE AND UPGRADING AMONG FIRMSMarch 29, 2007

Motivation to change is modulated throughout the process

Motivation to change is modulated throughout the process

The Methodology for Change Management

MO

TIV

ATIO

N

Skepticism

Indiff

erence

Awar

enes

s

Expec

tatio

n

Nervousn

ess

Motiv

ation to

partic

ipate

Disco

ncer

t

Conve

ntio

nal

wisdo

m h

urt

Motivatio

n

to ch

ange

Leadership

accepta

nce

Work

Cooperate

ATTITUDEATTITUDE BELIEFBELIEF BEHAVIOURBEHAVIOUR

Recommendation

MO

TIV

AT

ION

Skepticism

Indifference

Awareness

Expectation

Nervousness

Motivatio

n to

participate

Disconcert

Conventional

wisdom hurt

Motivatio

n to

changeLeadership

acceptanceWork

Cooperate

Informatio

n

interviews

Challenges

presentation

Benchmarking trips

Strategy sharin

g

workgroups

Convincing interv

iews

Vision of the fu

ture

presentatio

n

Motivatio

n inte

rviews

Lines o

f actio

n work

groups

Lines o

f actio

n pre

sentatio

n

Change toolsChange tools Task

forc

es

Case

studie

s

Refer

ence

trip

The Methodology for Change Management

Going GreenMinimum standards toward a sustainable hotel+Source: IBLF

Why Bother?

Upside Benefits– Higher Revenues– Lower Costs– Enhance Intangible Value– Preferential interest rates (?)

Manage Downside Risks– Supply Chain Management– Reduce Operational Risk

“License to Operate”

What does it mean to be a sustainable hotel?

+Source: IBLF

While the term 'green' in business originally related to environmental issues, it has evolved to embrace all aspects of sustainability and corporate social responsibility

(CSR). To be properly 'green', a company now needs to

incorporate sustainable thinking in its decision-making at all levels

throughout the organization.

In the past, corporate philanthropy, or 'giving back' to the community, used to be the way a company looked to enhance its reputation externally. Today, even the most basic level of acceptable business practice requires a more sophisticated approach. Companies are judged on their accountability, transparency, business ethics, socio-economic awareness and resource-efficiency as well as their financial results. Businesses today are under external scrutiny as

never before. Shareholders, investors, employees, customers, environmental and ethical groups - and the general public - expect companies to be exemplary across the 'triple bottom line' of economic, social and environmental management. If they are not, pressure groups and the media are willing and able to expose their weaknesses. As our understanding and knowledge grows about issues such as global warming, climate change, human rights injustices and the causes of poverty, the world looks as much to the business community as to governments to provide solutions.

These practical steps are intended to guide hotel managers toward a more sustainable operation.

Policy and framework

Staff training and awareness

Environmental management

Purchasing

People and communities

Destination protection

Policy and Framework

Designate or appoint a senior member of staff responsible for environmental management. They should have the awareness, knowledge and skills to implement best practices to regional and international standards.

Identify a person from each department who will be part of the hotel's environmental working group or 'green team'.

Institute ways to measure your progress - for example through indicators such as water use in litres or cubic metres per guest per night, energy use in kWh per guest night and waste in kg per guest night.

Draw up responsible business policy to which the entire operation can commit.

You will need commitment from everyone, from the top down.

Launch a responsible business programme to staff and solicit feedback.

Maintain staff awareness of the programme through regular meetings, posters and information on notice-boards etc.

Encourage motivation through competitions, suggestion boxes and reward staff for successes each month

Include a module on your responsible business policy and programme in all staff induction and refresher training.

Communicate results to staff as you progress the programme.

Staff Training and AwarenessYou will need commitment from everyone,

from the top down.

Assess your current environmental impacts and determine potential primary, secondary and tertiary impacts and their significance. List possible mitigation and management alternatives and describe which ones will be used.

(Much of the information on your resource use, waste and use of chemicals can be found in utility and purchasing bills.)

Install meters for each department and for specific items of equipment that are high energy and water users.

Measure and monitor your progress on a regular basis. This can be daily, weekly or monthly, depending on usage and your department

Set measurable short and long term targets for improvement and take corrective action when they are not met.

Work with other hotels and local businesses to improve environmental standards in the local area or destination.

Inform guests, vendors, and local stakeholders about your environmental policy, programmes and successes.

Environmental ManagementAim for the highest environmental standards in terms of biodiversity protection, hygiene, safety, indoor air

quality and overall environmental management.

Identify the key areas of energy use and the fuel

ENERGY

Install meters in each department and fit sub-meters for high energy-consuming items. Designate members of staff who will be responsible for collecting energy dataIdentify simple changes in routine that can be made to save energy (such as turning off lights and running equipment such as dishwashers and washing machines at full loads).Check and maintain all equipment regularly to ensure it is functioning efficiently. Identify and implement low-cost measures such as using energy efficient light bulbs and motion detectors and improving insulation, etc. Use bicycles and environmentally preferable vehicles around the resort (e.g. electric from renewable sources, hybrid or biofuels) and encourage guests to use greener vehicles.Calculate your energy usage and assess it against available industry benchmarks (e.g. benchmarkhotel) in terms of kWh per guest night or CO2 generated. Monitor your performance continuously and set realistic reduction targets based on your results

WATER USEIdentify the key areas of water use and how reductions can be achieved Implement immediate water savings through changes in routine (e.g. reducing washing/ rinsing cycles in laundry). Check regularly for leaks from cisterns, taps and pipes and that plugs in basins fit properly.Install sensors, low-flow and other water-saving fittings in kitchens, guest bathrooms and public washrooms. Use opportunities to divert and capture rainwater for reuse. Minimize water use by recycling grey water for gardening, washing floors, flushing toilets, etc. Assess your water use against industry benchmarks (such as benchmarkhotel) if available.Monitor results continuously, report on progress and take corrective action as necessary.

WASTE

Identify the different waste streams you create (e.g. glass, paper, plastic, aluminum and other metals, cooking oils, cardboard and organic waste), which departments are responsible for what, and how the waste is currently dealt with.

Calculate the amount in weight for each waste stream and identify measures to reduce, reuse and/or recycle each one.

Draw up a waste management plan with specific reduction, reuse and recycling targets to be met by a specific time. waste reduction measures.

Ensure that effluent from wastewater treatment system complies with all relevant local, regional and international water quality standards.

Monitor results continuously, report on progress and take corrective action as necessary.

Source products which are the most sustainable in their manufacture, use and disposal.Review all the products and services you purchase and identify where more sustainable alternatives are available Examine how your suppliers select their suppliers so that you can help develop a fully sustainable supply chain.Integrate sustainable criteria into your purchasing policy and procedures.Encourage local businesses to cut down on transport energy by sourcing locally.Buy as much seasonal and local produce as possible Buy products in bulk and reduce packaging where possible.Challenge suppliers and other business partners to improve their practices.Give preference to 'fair trade' products (such as coffee and tea) or eco-labeled goods where possible Never purchase or sell items made from protected wildlife or illegally-traded species and inform your guests if there are any such items that may be offered for sale outside the hotel Recognise suppliers' efforts through special events, promotion and longer-term contracts

PurchasingWork with your suppliers over time to green your supply chain.

Be fair, honest, open and transparent in all your dealings with customers, employees and suppliers and respect their human rights at all times.Integrate sustainable criteria into your purchasing policy and procedures.Be sensitive to the needs of those you employ and in the surrounding community such as respecting their local culture heritage and traditions.Identify ways in which the local community can benefit from the presence of your establishment. Develop and support tourism-related businesses in partnership with the local community Use locally provided services where possible Train local workers and in order to phase them into management positions over time. Employ local people where possible Support local community development projects with money, time and under-utilized resources Provide ways for guests to volunteer for local conservation or community development projects

People and CommunityLook at the world outside your hotel and how you can

take a more responsible, leadership role.

Support conservation and cultural heritage preservation projects

Use native plant species for landscaping and natural insect control measures

'Showcase' the local culture and heritage by using local produce, art and handicrafts

Contribute to habitat restoration efforts when possible

Utilize guidelines and training programs to improve behaviors and increase awareness with regard to recreational activities

Require the use of guides in sensitive areas.

Provide guests with lists of products and souvenirs to avoid.

Work with local people when developing cultural attractions

Educate guests and local people about different cultures and acceptable behaviours.

Design an interpretive guest education program with clear messages relating to local environmental and cultural issues.

Respect locally determined limits on scale and activities in tourist interaction with local people

Choose transport, such as buses and trains to decrease energy consumption and emissions.

Provide 'no vehicle' zones.

Consider using non-motorized vehicles and electric motors to decrease pollution and noise.

Train staff in the proper maintenance of vehicles and boats and mandate maximum speeds.

Destination and ProtectionMaintain a 'sense of place' that supports the geographical character of a place—its environment, culture, heritage, aesthetics, and the well-being

of its citizens.

Why Bother?

Upside Benefits– Higher Revenues– Lower Costs– Preferential interest rates (?)– Enhance Intangible Value

Manage Downside Risks– Supply Chain Management– Reduce Operational Risk

“License to Operate”

Competitiveness StrategyImprove tourism

experience

Increase number of

quality activities

Protect environment that tourism depends on

Reinforce linkages with local producers

Increase number of

tourist arrivals

•Support for local tour operators

•Increase professionalism in service sub-industries

•Improve sanitation

•Improve lodging options

•Site development

•Promotion

•Information collection and dissemination

•Improve access & response to end market demands

•National Monument status for Alley of Baobabs

•Support for Cellule Technique Baobab’s efforts

•Strengthen linkages to agricultural inputs

•Strengthen handicrafts production and promotion

•Strengthen linkages to seafood vendors

•Improve marketing

•Strengthening regional tourism office

•Improve access by air

Ob

ject

ives

:S

trat

egie

s:

•Increased competitiveness of tourism sector

•Decreased poverty through pro-poor economic growth

•Increased financing of biodiversity conservation through tourism activitiesImp

act:

Andasibe RegionT

ou

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Pro

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& S

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Pro

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Inb

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Micro TOs/TAsMid-range to Low-end

n=34

Small TOs/TAsMid-range

n=19

Small TOs/TAsHigh-end

n=8

High-end75% French

10% British and American10% German

5% Malagasy and othern=20,570

Mid-range75% French

10% North American10% British

5% Malagasy and othern=12,000

Low-endResearchers, students,

budget travelersn=10,000

RestaurantsInformal, low- end

n=5

Home-stay roomsn=2

Taxi Broussen=18

Independent Busn=1

Handicraft Shopsn=4

Hotels/ RestaurantsOne Star or Less

n=5

Hotels/ RestaurantsTwo Stars

n=2

Local Guidesn=100

National Car RentalsNational Guides

Park Vohimana(MATE)

Maromizaha(NAT)

National Park Mantadia(ANGAP)

National Park Andasibe(ANGAP)

Orchid Park

Forest Station MITSINJO(MITSINJO)

Private Zoo&

Horseback Riding(Vakona)

Handicraftsn=15 + p/t guides

Hotel/RestaurantHigh-end

n=1

Travel Agent/ Tour Operatorn=

Travel Agent/ Tour Operatorn=

Not enough high-end/ higher-end lodging options to meet the

demand, land tenure issues

Guides are occupying the empty niche of local excursion assembler.

They wield an unusual amount of power, yet are not providing

professional, quality services in either guiding or excursion arranging

Few locally sourced inputs limits the local benefits derived from tourism

Several unmet opportunities to increase local benefits derived from tourism while providing

tourists more diversified experiences (no nighttime entertainment, cultural attractions, limited shopping

opportunities, few historical attractions)& natural resources are not well utilized-- not enough

diversity in the utilization, and areas are not well exploited (in terms of value derived from natural attractions that could fund economic or social

development and better environmental protection)

Menabe RegionN

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Low-end TouristsResearchers, Backpackers,

France, Reunion, Madagascarn≈ 7,000

Mid-range TouristsFrance, Japan, Reunion, USA, Canada,

UK, Europe (other), Madagascarn≈ 15,000

High-end TouristsFrance, USA, UK, Europe

(other)n≈ 2,000

Tour Operators/ Travel Agenciesn=

Micro TOs/ T.A.: Mid-range to Low-end market

n=34

Small TOs/ T.A.: Mid-rangen= 19

Small TOs/ T.A.: High-endn= 8

Hotel/ Restaurant2 Ravinala

n=14

Hotel/ Restaurant1 Star/ 3 Ravinala

n=18

Taxi Brousse

Air Madagascar

Private AircraftsNational Car

RentalsNational Guides

Eco-lodges2 Stars

n=5

Hotels/ Restaurants2 Stars

n=3

Bungalows in Forest1 Ravinala

n=1

Regional Taxi Brousse

Regional Car RentalsInformal

n=42

Regional Car RentalsFormal

n=5

Local Guidesn= 22

Handicraft ShopMarofandillia

n=1

Handicraft ShopMorandava

n=4

Tsingy de Bemaraha

NP(ANGAP)

Alley of the Baobabs

Andranomena RS

(ANGAP)

Kirindy ForestTS

(CFPF)Mangroves Beaches Lac Bedo

Private Park(De Heaulme)

Parc du Menabe--

Private Zoo, Parc

Autruche, Ago-

ecotourism(private)

Cultural Attractions: Tombs,

Markets, etc.

Waterfalls, springs

and other water

attractions

Protected Area- Category 5

Mareyeuses

FishermenAgricultural Products Animal Products

Handicrafts

Tour Operators/ Travel Agenciesn=

Tour Operators/ Travel Agenciesn=

Animal Products Agricultural Products

Only one airline servicing the destination constrains growth, access to

the region, competitive pricing

No local excursion assembler limits options for tourists, increases costs for TOs, and hinders marketing of MSEs

No local products and services catering to high-end market—high-end tourists fly in/ fly out and do not

stay in region—large leakage

Over-utilization of marquee natural resource attraction and no means to extract

local benefits

Lack of local input provisioning reduces local benefits derived from tourism industry

and limits economic opportunities

Several missed opportunities to derive more benefit from tourism by offering more

entertainment, cultural, historical, or shopping opportunities for tourists to spend more money locally. The lack of infrastructure in community managed protected areas hinders the ability of

communities to derive benefits from tourism

What does the future hold?

Expedia and Orbitz provide “green /

sustainability” indicators for clients

Preferential listings for “green” hotels

International Tour Operators requiring

benchmarks in contracting

Major Hotel Groups announce integrated

sustainability programs for entire project cycle

National Green Hospitality Brand (Starwood?)

LEED Standards for Hotels

Municipalities and Countries REQUIRE

Sustainability standards for businesses to

operate

“Hotel of the Future”