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Sustainability April 2011 WTTC Balancing economic returns with environmental concerns

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

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World Tourism Forum Lucerne 2011

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Page 1: Balancing economic returns with environmental concerns david p. scowsill wtfl 2011

Sustainability

April 2011

WTTC

Balancing economic

returns with

environmental

concerns

Page 2: Balancing economic returns with environmental concerns david p. scowsill wtfl 2011

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Page 3: Balancing economic returns with environmental concerns david p. scowsill wtfl 2011

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Travel & Tourism is an economic powerhouse to be

fostered

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TRAVEL & TOURISM’S SUBSTANTIAL GLOBAL ECONOMIC CONTRIBUTION

0

2

4

6

8

10

12

14

2011 2021 2011 2021

Direct Total

World Travel & Tourism outlook% of whole economy

Source : Oxford Economics

US$ 6.0 trn US$ 9.2 trn

259 mn324 mn

GDP

(constant 2011 prices) Employment

Page 5: Balancing economic returns with environmental concerns david p. scowsill wtfl 2011

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T&T’S CONTRIBUTION TO GLOBAL GDP COMPARED

0

2

4

6

8

10

12

Automotive

production

Banking Tourism

Direct GDP Total GDP

GDP contribution by sector 2011

%

Source : Oxford Economics

Page 6: Balancing economic returns with environmental concerns david p. scowsill wtfl 2011

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Sustainability makes business sense

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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

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Oil consumption growth continues

WORLD OIL CONSUMPTION (HISTORICAL AND FORECAST)

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Travel & tourism is at the forefront of

sustainable business

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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 fuels

Source: Air Transport Association

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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 Brazil

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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

conservation

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The industry leading the way

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Challenges

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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 efficiency

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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.

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RISING LIVING STANDARDS WILL DRIVE

LONG-TERM Travel &Tourism GROWTH...

0

10,000

20,000

30,000

40,000

50,000

60,000

1980 1986 1992 1998 2004 2010 2016

GDP per capita ($ppp)US$

Source : Oxford Economics

US

Eurozone

Russia

China

Brazil

India

Forecast

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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 capacity

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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 value

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Our opportunity is now

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Sustainability

April 2011

WTTC

Thank You

www.wttc.org