Balancing economic returns with environmental concerns david p. scowsill wtfl 2011


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World Tourism Forum Lucerne 2011

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Balancing economic returns with environmental concerns david p. scowsill wtfl 2011

  1. 1. Balancing economic Sustainability returns with environmental WTTC concernsApril 2011
  2. 2. 2
  3. 3. Travel & Tourism is an economic powerhouse to be fostered3
  4. 4. TRAVEL & TOURISM’S SUBSTANTIAL GLOBAL ECONOMIC CONTRIBUTION World Travel & Tourism outlook % of whole economy Direct Total 14 GDP (constant 2011 prices) Employment 12 US$ 9.2 trn US$ 6.0 trn 324 mn 10 259 mn 8 6 4 2 0 2011 2021 2011 2021 Source : Oxford Economics4
  5. 5. T&T’S CONTRIBUTION TO GLOBAL GDP COMPARED GDP contribution by sector 2011 % 12 Direct GDP Total GDP 10 8 6 4 2 0 Automotive Banking Tourism production Source : Oxford Economics 5
  6. 6. Sustainability makes business sense6
  7. 7. Sustainable business practices are critical Sustainable business practices are integral to the success of our industry Without pristine waters, coral reefs, forests, and jungles, we have compromised our very product Sustainable practices can also yield better margins through lower operating costs and market advantages with consumers 7
  8. 8. Oil consumption growth continues WORLD OIL CONSUMPTION (HISTORICAL AND FORECAST) 8
  9. 9. Travel & tourism is at the forefront of sustainable business9
  10. 10. Example #1: Aviation Today’s aircraft are 75% quieter than those of 40 years ago Airlines contribute 8% of economic activity but less than 3% of man-made greenhouse gas (GHG) emissions Since 1978, US airlines have more than doubled fuel efficiency, saving 2.9B metric tons of CO2 – the annual equivalent of taking approximately 19M cars off the road In the last decade, U.S. passenger and cargo airlines collectively realized a 25% gain in fuel efficiency Airlines investing in the development of commercially viable, environmentally friendly alternative fuelsSource: Air Transport Association10
  11. 11. Example #2: Lodging Juma Sustainable Development Reserve  Marriott International committed US$2 million to protect and preserve 1.4 million acres of endangered rainforest in the Amazon  Guests are able to contribute to the Juma fund to voluntarily offset the calculated emissions from their stay  First REDD (reduced emissions from deforestation and degradation) initiative validated to the Climate, Community, and Biodiversity Standards (CCBS) in Brazil11
  12. 12. Example #3: Resort Installed a 80 kW windmill - the first utility-grade windmill installed in the Caribbean Air conditioners with heat recovery units, which convert the heat loss into hot water, in supplement to solar water heaters. Implemented a carbon offset program where all flights, local transport/activities by guests will be offset by carbon credits purchased by the resort Encourage other resorts to use green energy, practice energy conservation12
  13. 13. The industry leading the way13
  14. 14. Challenges14
  15. 15. Challenge #1: Engagement The tourism industry is diverse  Over 80% of global Travel & Tourism activity is accounted for by small to medium-sized enterprises (SME’s) Limited access to information  Knowledge  Resources  Energy efficiency15
  16. 16. Challenge #2: Education Inform customers of the impact of climate change Invest in raising awareness and understanding among consumers Cost and convenience will remain key factors in travel decisions but the environmental impact of travel will become an important third factor for companies and individuals alike.16
  17. 17. RISING LIVING STANDARDS WILL DRIVELONG-TERM Travel &Tourism GROWTH... GDP per capita ($ppp) US$ Forecast 60,000 50,000 US 40,000 Eurozone 30,000 China 20,000 Russia Brazil 10,000 India 0 1980 1986 1992 1998 2004 2010 2016 Source : Oxford Economics17
  18. 18. Challenge #3: Technology Innovate: UNWTO estimates suggest that over a third of CO2 mitigation potential over the next 20 years can be realized through technical efficiency Facilitate: technology transfers from developed to developing countries Integrate: new technologies and business models A growing industry needs growing capacity18
  19. 19. Challenge #4: Perception Many believe travel and tourism to be a relatively large contributor to global emissions. In fact, the travel industry is a relatively small contributor to global emissions New taxes have targeted the travel sector with environmental surcharges Need to communicate to policy makers…  the travel sector’s continuous advances in sustainability  it’s enormous economic value19
  20. 20. Our opportunity is now20
  21. 21. Thank You WTTCApril 201121