Travel & Tourism forecast to pass $2 trillion GDP in2012Travel & Tourism is set for a milestone year as theindustry’s direct contribution to the global economyis expected to pass $2 trillion in GDP and 100 millionjobs. According to research by the World Travel &Tourism Council (WTTC), the global Travel & Tourismindustry will grow by 2.8% in 2012, marginally fasterthan the global rate of economic growth, predictedto be 2.5%.This rate of growth means that Travel & Tourismindustry is expected to directly contribute $2 trillionto the global economy and sustain some 100.3million jobs. When the wider economic impacts ofthe industry are taken into account, Travel & Tourismis forecast to contribute some $6.5 trillion to theglobal economy and generate 260 million jobs – or 1 David Scowsillin 12 of all jobs on the planet. WTTC President & CEO
2011 closes stronger than expected for business travel with total businesstravel spending up 8.3% for third quarter 2011.2012 will continue to see more measured growth as economic headwindspersist. GBTA forecasts that business travel spend will increase by 4.6%in 2012.
The CMI Green Traveler Study 2010-11 The Green Traveler Study asked over 950 “eco-conscious” travelers • How do they travel, and how much? • What does “sustainable” or “green” travel mean to them? • How environmentally conscious are their purchasing decisions when not traveling? • What drives their interest in green travel options and destinations? • Will they pay a premium for sustainable choices? • Is there a gap between their intentions and their behavior? • What do they expect from green travel brands? • How do they view green branding and messaging? • What gives them trust — or makes them skeptical? • How deep is their commitment to green travel, and how far will they take it?
The CMI Green Traveler Study 2010-11 Key Finding #1: Eco-Travelers Become Greener Travelers were more eco-conscious, shopping locally, recycling more at home and at work, buying recycled products, and avoiding unnecessary purchases. More active steps towards a sustainable lifestyle increased — composting, going vegetarian, bicycling or taking public transportation to work. Overall behavior and spending was 5-17% more environmentally friendly than 2009 respondents. 5% more respondents acted on their environmental concerns while traveling. 85% turned off the lights when they left the room 75% say they had recycled and used their towels and sheets more than once 7.5% increase in “researched and booked greener accommodations” 4% more offset the impact of their travel 5% whose environmental concerns impacted their discretionary travel style 8% increase would most likely go on a greener vacation within the next year.
The CMI Green Traveler Study 2010-11 Key Finding #2: Low Tolerance for High Premiums – The Green Price Point 62% of respondents said that they did not pay extra to stay at a “greener hotel” . And 87.3% of travelers paid between 0 and 5%, which represents more than a 13% increase over 2009. Is green getting cheaper? Are green practices something customers don’t know they’re paying for? Are economic conditions keeping travelers from acting on their green intentions? Green is still not something customers will actually pay extra for today; they won’t pay a “green tax.” One thing is certain — price remains a central concern among travelers. Price was ranked as the #1 criterion for choosing a hotel by more travelers than any other factor, including the hotel’s environmental programs.
The CMI Green Traveler Study 2010-11 Key Finding #2: Low Tolerance for High Premiums – The Green Price Point Insight: Make green concrete. For most people, environmental sustainability is still a relatively abstract concept — especially when compared to practical issues like price and convenience. LEED certification, carbon offsets and sustainable materials do not have the visceral appeal of an ocean view or an Olympic-sized pool. Flipping those product attributes into consumer benefits drive sales and justifying price premiums. Instead of talking about LEED certification mention pure air, natural, non-toxic carpeting and healthy, organic linens are creature comforts that could compel customers to pay a premium for sustainability. That said, numerous case studies across all tourism and hospitality segments show enormous cost-saving benefits to green initiatives, and CMIGreen identified operations as the place to find the ROI in green, not extra charges to consumers.
What)Cer<ﬁca<on)is)right)for)my)hotel?)EcoRooms® & EcoSuites™: (www.ecorooms.com) Certified properties must meeteight strict eco-criteria for membership and certification. The criteria includes: use ofGreen Seal certified cleaning and paper products, towel and linen reuse program,recyclable waste program, energy efficient lighting, high efficiency plumbing, and100% smoke-free properties.Rating: Must meet all eight program requirementsRecognized/Chosen by: American Hotel and Lodging Association (AH&LA) and theAmerican Automobile Association (AAA).EPA’s Energy Star label: (www.energystar.gov) The Environmental ProtectionAgency’s Energy Star program enables buildings to qualify through meeting strictenergy performance standards. Energy Star labeled properties use less energy, havereduced operating expenses, and reduced greenhouse gas emissions. To be certified,the property must attain a minimum score of 75, the top 25%, based on EPA’sNational Energy Performance Rating System. As of November 2010, there are 426Energy Star labeled U.S. hotels. Rating: Must obtain a score of 75 or higher. #
What)Cer<ﬁca<on)is)right)for)my)hotel?)Green Globe Certification: (www.greenglobecertification.com) This is a certification label forsustainability in both management and operations. Certification criteria cover several areas,including sustainable management and social economic, cultural heritage, and environmentalaspects of sustainability. The program’s criteria are also updated annually to ensureinternational compliance.Rating: Must achieve threshold of at least 35% of the total 1,000 pointsGreen Key®: (www.greenkeyglobal.com) The Eco-Rating program is specifically designedfor hotel operations to rank, certify and inspect green initiatives. Based upon acomprehensive environmental self-assessment, hotels are ranked and provided withguidance on how to “unlock” opportunities. The program assesses the five main operationalareas of a property and covers nine sustainable practices. An on-site inspection may beconducted to confirm green hotel rating.Rating: One to Five Green KeysRecognized/Chosen by: Carlson Hotels, Hyatt Hotels, Motel 6,MGM Resorts International,Sofitel, Fairmont Hotels & Resorts and Accor in the U.S/North America region.
What)Cer<ﬁca<on)is)right)for)my)hotel?)Green Seal certification: (www.greenseal.org) This tiered certification is presented to thoselodging properties that achieve various levels of compliance with GS-33, Green SealEnvironmental Leadership Standard for Lodging Properties. Properties must demonstratescience-based evaluation of sustainable practices in following areas: waste minimization,energy efficiency, conservation and management, management of fresh water resources,wastewater management, hazardous substances, and environmentally conscious purchasing.Rating: Bronze, Silver or Gold LevelsRecognized/Chosen by: The city of Los Angeles through its Green Business Initiative, as wellas Chicago through its Green Hotels Initiative.USGBC LEED® certification: (www.usbgc.org/leed) The Leadership in Energy andEnvironmental Design (LEED) Green Building Rating System™ is the nationally acceptedbenchmark for the design, construction, and operation of high performance green buildings.Promotes a whole-building approach to sustainability by recognizing performance in five keyareas: sustainable site development, water savings, energy efficiency, materials selection, andindoor environmental quality.Rating: Certified, Silver, Gold, or Platinum Level#
Floor Area Forecast (millions of square feet)LEED$new$construction$$ 49,167projects$in$the$U.S.$expected$to$exceed$one$billion$square$feet!$ 21,173$$[This$includes$LEED$New$ 7,707Construction$(NC),$Core$&$Shell$(CS),$Commercial$ 7,359Interiors$(CI),$LEED$ 4,361Schools$and$LEED$Retail,$ 3,508but$not$LEED$for$Existing$Buildings(EB).]$ 3,959 2,197 GREEN BUILDING 264 MARKET 185 IMPACT 70 A N D 37 REPORT 2009 2020 2030 Cumulative LEED NC Certified SF Cumulative LEED CS Certified SF Cumulative LEED CI Certified SF Cumulative LEED EB Certified SF
Energy)Eﬃciency)Tax)Advantages )Building Cost Audit – There are tax advantages that most investors find too confusing orsimply too time consuming to take advantage of. By engaging a specialized accounting firmwith engineering expertise you can qualify for significant tax deductions. EPACT05 Energy Tax Deduction (requires independent certification of the energy efficiency measures). Cost Segregation – Properly determine depreciable life of building components, maximizing current deductions. Abandonment – Certain long term assets may be written off due to renovation of the building, maximizing current deductions.