Sustainability and CSR Action in a Thai Hotel Chain

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Hansar Hotels Group currently operates and manages two boutique properties in Thailand; Hansar Bangkok and Hansar Samui Resort. In just a few years since its start, the Group has won awards such as Best Hotel Thailand by the Asia Pacific Hotel Awards 2012 (UK), Best City Hotel 2011 by the Boutique Hotel Awards (UK), Conde Nast Traveller’s Hot List and Hot Spa 2012 (USA), and Tripadvisor’s Traveler’s Choice Award Winner 2012 (USA).

Mr. Budiman has spent the last 20 years working in the luxury hospitality industry at properties such as Sheraton Bandung, Le Meridien Singapore, Four Seasons Jakarta, The Empire Hotel and Country Club Brunei and Hotel de la Paix in Siem Reap.

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Sustainability and CSR Action in a Thai Hotel Chain

  1. 1. Sustainability and CSR Action in Thai Chain Hotel Indra Budiman Hansar Hotels
  2. 2. The History of Sustainability & CSR In Hospitality Industry HANSAR HOTELS • The roots of environmental thought in the hospitality sector became evident over half a century ago, when a few enterprising hoteliers realised they could provide an enhanced guest experience by integrating natural elements into the resort experience. This concept, which evolved from earlier land conservation efforts, was Pioneered in such locations as Caneel Bay and the Maho Bay Camps in the U.S. Virgin Islands (US Tourism data – source).
  3. 3. Sustainability in Hospitality HANSAR HOTELS • Sustainable business practice is about maximising business potential without degrading the environment and working harmoniously with society. Lockyer (2007) defines ‘green hotels’ in this way.
  4. 4. What is CSR HANSAR HOTELS • CSR itself is essentially a concept that embodies the impact a company has on the society in which it operates and its interactions with different interests groups in that society. The concept involves issues that affect all business sectors - such as emissions, employment standards and equal employment opportunity – as well as other industry-specific issue
  5. 5. Opportunity for Sustainable and CSR action to be done in Thai Hotel? HANSAR HOTELS • The hospitality industry is a multibillion-dollar industry serving millions of ladies and gentlemen globally and is expected to grow even more over the next few decades. Demand for hotel accommodation is driven in part by the travel industry. • In Bangkok along, in total 938 hotels from all ranges registered in ministry of tourism. • The whole Thailand – 9685 Hotels • Opportunity is very big
  6. 6. Hospitality Industry’s Data HANSAR HOTELS
  7. 7. Steps by Steps HANSAR HOTELS • Employment and Staff Retention • Energy and Water usage • Waste • Community • Management
  8. 8. Employment and Staff Retention HANSAR HOTELS • Employees are identified as one of the greatest part of the whole hotel operation, no matter how luxury the owner or investor build their hotel with the latest cutting edge technology, it will only leave the hotel as an empty building without the integral part of the human being in it
  9. 9. Employment and Staff Retention HANSAR HOTELS • The hotel industry is characterized by high total number of employee turnover and a mostly unskilled workforce. • Based on 2012 Ministry of Labor’s in Statistic, it shows also that 52.75% total numbers of work force in the hospitality industry are registered as unskilled employees. • Employee turnover would lead to $10-15 million in savings. Indeed this is the main key factor in managing a successful hotel.
  10. 10. factor HANSAR HOTELS Generation Y
  11. 11. How to do HANSAR HOTELS A 2007 survey conducted by the U.S. employment website called Monster, it revealed that 80 percent of young professionals are interested in securing a job that has a positive impact on the environment, and 92 percent would be more inclined to work for a company that is perceived as “environmentally friendly”
  12. 12. How to do HANSAR HOTELS • Trained • Educated • Empowered • Engaged with the program Happy staff will make happy guest
  13. 13. Engaging with Program HANSAR HOTELS • Involve them in Hotel CSR Program • Make them as Leader • Give Support
  14. 14. Organic farm of Hansar Samui HANSAR HOTELS • Two years ago we took the innovative step of creating an organic garden and aquaponic fish and vegetable farm on a former unattractive piece of wasteland adjacent to the hotel. Produce from these facilities is used by the hotel to create fresh, chemical free herbs, fruit and veggies for guests and staff, as well as for their CSR program in the local community. Last year the hotel held its first charity bazaar, selling produce from the last harvest from which funds were donated to a local school for needy children. Future bazaars will continue to fund CSR projects for school and temples in the area. • This month we will add solar a solar panel to power the irrigation pump for the aquaponic farm as well as two greenhouses; one to grow organic imported produce and one for the aquaponic farm.
  15. 15. Energy and Water Usage HANSAR HOTELS • The accommodation sector in Thailand uses as much 25 percent higher energy consumption then other sector • The energy cost itself contributed up to 8 percent from the overall hotel expenses. • Break event in 3-4 years – energy friendly equipment
  16. 16. Two big Areas HANSAR HOTELS • Guest rooms • Kitchen and FB outlets
  17. 17. Some Steps that we can do HANSAR HOTELS • To have open corridor - save the usage of energy from AC • Installation of green roofs and solar heater will also contribute on reducing energy costs. • Low-flow shower systems will provides saves water and energy bills. • Reuse of linens – will certainly saves water, detergent, energy and greenhouse gases. • The use of compact fluorescent or LED lights – will provide guaranteed energy saving cost comparing to any halogen light that each hotel usually use. • Installation of tinted windows with digital thermostat will certainly reduce total number consumption of energy in guest rooms and other corridors. • Installation of water free urinal as what we have in our property in Bangkok will saves up to 50.000 gallon of water
  18. 18. Some Steps that we can do HANSAR HOTELS • The ultimate result of these actions is a win-win situation, how to manage the operating cost effectively without providing any negative impact to the environmental.
  19. 19. Waste HANSAR HOTELS • Based on one of the report being published in one of leading hotelier magazine, each room will produce an amount equal to 400 to 1000 grams worth of garbage per day, • if we calculated an average of 75% occupancy, this will generated 665 million kilogram worth of garbage. Waste is a concern on many accounts including environmental, health and safety standards, as well as overall cost.
  20. 20. Waste HANSAR HOTELS • Approximately 54 percent of a hotel's solid waste can either be recycled or reused.
  21. 21. What we can do about it HANSAR HOTELS • Recycle Program – 14 tons of materials – 48.000 Baht • Composting - Organic garden and hotel lawn • 500 litter of recycle water daily – Grey water for our garden
  22. 22. Community HANSAR HOTELS • The relationship between a hotel and the surrounding community is a connection that can not be divided.
  23. 23. Community HANSAR HOTELS • If employment in a hotel is unstable it means that employment in the surrounding area is unstable and development can be hindered.
  24. 24. Community HANSAR HOTELS • Opportunity = Hansar University
  25. 25. Management Style HANSAR HOTELS • Individually managed • Managed by Operator Can create conflict
  26. 26. Management Style HANSAR HOTELS • Individually managed • Managed by Operator Can create conflict

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