Sustainable Energy SolutionsSustainable Energy Solutionsforfor

Minnesota ResortsMinnesota Resorts

Andrea SchuweilerAndrea SchuweilerGraduate Research Assistant Graduate Research Assistant

University of MinnesotaUniversity of MinnesotaOctober 15, 2008October 15, 2008

Thanks to Carlson Chair of Travel, Tourism & Thanks to Carlson Chair of Travel, Tourism & Hospitality for project supportHospitality for project support

OverviewOverviewIntroductionIntroduction

Purpose & ObjectivesPurpose & Objectives

Background LiteratureBackground Literature

MethodsMethods

ConclusionConclusion

Future ResearchFuture Research

Introduction: Growth of Sustainable Introduction: Growth of Sustainable tourismtourism

World: World: growing 20growing 20--34% per year since the 1990s & 34% per year since the 1990s & sustainable tourism could grow to 25% of the sustainable tourism could grow to 25% of the worldworld’’s travel market by 2012 (TIES, 2006)s travel market by 2012 (TIES, 2006)

U.S.:U.S.:a $77 billion market in US (TIES, 2006)a $77 billion market in US (TIES, 2006)> 75% of US travelers believe it is important that > 75% of US travelers believe it is important that their visit does not damage the environmenttheir visit does not damage the environment> 33% would pay more to protect the environment > 33% would pay more to protect the environment (TIES, 2006)(TIES, 2006)

Introduction: Sustainable Tourism Introduction: Sustainable Tourism in Minnesotain Minnesota

Tourism is a $10.5 billion industry in MN (Explore Tourism is a $10.5 billion industry in MN (Explore Minnesota, 2008)Minnesota, 2008)Opportunities to improve sustainable practices (UMN Opportunities to improve sustainable practices (UMN Tourism Center, Schneider, 2007 & 2008)Tourism Center, Schneider, 2007 & 2008)In 2007, Legislation passed to explore a Travel Green In 2007, Legislation passed to explore a Travel Green Program in MNProgram in MN

Specifically access to sustainable tourism education was Specifically access to sustainable tourism education was recommendedrecommended

Purpose & ObjectivesPurpose & Objectives

The Sustainable Energy Solutions Guide for The Sustainable Energy Solutions Guide for Minnesota Resorts Minnesota Resorts was developed to:was developed to:Educate resort owners about the connection Educate resort owners about the connection between sustainable energy practices & between sustainable energy practices & profitability, &profitability, &Increase awareness of & implementation of Increase awareness of & implementation of energy efficiency, conservation & renewable energy efficiency, conservation & renewable energy practices among resort ownersenergy practices among resort owners

Background LiteratureBackground LiteratureDefining Sustainable Defining Sustainable TourismTourism

Motivations to implement Motivations to implement environmentally sustainable environmentally sustainable practicespractices

Constraints towards Constraints towards implementing sustainable implementing sustainable practicespractices

Background Literature: Defining Background Literature: Defining Sustainable TourismSustainable Tourism

Tourism development that meets the needs of Tourism development that meets the needs of present tourists & host regions while present tourists & host regions while protecting & enhancing opportunities for the protecting & enhancing opportunities for the future (World Tourism Organization, 1999)future (World Tourism Organization, 1999)

Applicable to all forms of tourism in all types Applicable to all forms of tourism in all types of destinations (World Tourism Organization, of destinations (World Tourism Organization, 2004)2004)

Motivations to implementationMotivations to implementationEconomic BenefitsEconomic Benefits

Cost savingsCost savingsCompetitive advantageCompetitive advantage

Consumer DemandConsumer DemandStated Willingness To PayStated Willingness To PayGreater in Domestic touristsGreater in Domestic tourists

Natural Resource PreservationNatural Resource PreservationEnvironmental ethicEnvironmental ethicProduct preservationProduct preservation

Regulations and IncentivesRegulations and IncentivesPrior to regulationPrior to regulationSavings with incentivesSavings with incentives

Business Size AdvantageBusiness Size AdvantageBigger is easierBigger is easier

Constraints to implementationConstraints to implementation

Lack of KnowledgeLack of KnowledgeMN industry 63.5%MN industry 63.5%

Lack of TimeLack of TimeMN industry 77.1%MN industry 77.1%

Initial InvestmentInitial InvestmentMN industry 78.7%MN industry 78.7%

Negative Impacts Negative Impacts Towards TouristsTowards Tourists’’ExperienceExperience

MN industry 20.1%MN industry 20.1%

MethodsMethods

Study SettingStudy Setting

ApproachApproach

Source Book ContentSource Book Content

DistributionDistribution

Methods: SettingMethods: SettingMinnesotaMinnesota 900 Resorts900 Resorts

Vary from luxury Vary from luxury accommodations to accommodations to simple cabinssimple cabinsOften located on lake Often located on lake shore propertyshore propertyOften family operatedOften family operated1.3 million unit nights 1.3 million unit nights soldsold$872.6 million spent by $872.6 million spent by tourists in 2005tourists in 2005--2007200776% of guests from MN76% of guests from MN

Methods: ApproachMethods: Approach

Literature ReviewLiterature Review

Compilation of Book & Compilation of Book & Web ResourcesWeb Resources

Review TeamReview Team

Methods: Content overviewMethods: Content overview

MotivationsMotivationsCost SavingsCost SavingsPayback PeriodsPayback Periods

CFLsCFLsSaves $44.87 or 79% Saves $44.87 or 79% over its lifetimeover its lifetimePayback period of about Payback period of about 4 months4 monthsDisposal Uncertainties Disposal Uncertainties & Mercury& Mercury

Methods: Content overviewMethods: Content overview

ConstraintsConstraints

Educational toolEducational toolDecrease research Decrease research timetimeLow cost Low cost suggestionssuggestions

2 kW 10 kW

Cost per Watt $10 $9

Cost for Installation $20,000 $90,000

Net Cost after MN rebate & federal tax credit $10,760 $46,800

Average Annual Utility Savings $279 $1584

Payback Period 23 years 18 years

Payback Period including property appreciation 17 years 12 years

Approximate Lifetime 20 years 20 years

Solar ElectricitySolar Electricity

Methods: DistributionMethods: DistributionAvailable online at:Available online at:

http://www.tourism.umn.edu/http://www.tourism.umn.edu/

MN Travel Green WebsiteMN Travel Green Website

Community Tourism Community Tourism Development GuideDevelopment Guide

Advertised at ConferencesAdvertised at Conferences

ConclusionConclusion

The source book meets MN resortsThe source book meets MN resorts’’ need for need for increased sustainabilityincreased sustainabilityUses a literature review to find motivations & Uses a literature review to find motivations & constraints.constraints.

Cost savings & payback periodsCost savings & payback periodsEducation, saves time, minimizes investment costsEducation, saves time, minimizes investment costs

Review team directs the source book to MN Review team directs the source book to MN needsneeds

Future opportunitiesFuture opportunities

Motivations & constraintsMotivations & constraintsSpecifically MN Resort OwnersSpecifically MN Resort Owners

MN Resort tourist visitor MN Resort tourist visitor profilesprofiles

Sourcebook effectivenessSourcebook effectiveness

Thank You!Thank You!

Questions?Questions?Andrea Schuweiler

schu1211@umn.edu

(612) 625-0298