HOSPITALITY GOING GREEN

In an era where environmental awareness is the need of the hour, the hospitality industry worldwide is undergoing a shift towards eco-friendly practices. By the end of 2024, the ecotourism market size globally is predicted to grow to $249.16 billion, an increase of 13.5% from $219.53 billion in 2023. By 2028, the global ecotourism market size is expected to increase to $428.97 billion, with a compound annual growth rate (CAGR) of 14.5%. The major reason why the hospitality industry is slowly and steadily going green, is due to the demand from the tourists and travelers. HNI travelers particularly have started opting for hotels that are luxurious,but are also sensitive to the environment. What’s more, travelers are interested in having local cultural experiences and the hotels that can provide authentic local community interaction and experience, invariably become the preferred choice of stay.

What is an eco-sensitive hotel?

An eco-friendly hotel goes far beyond simply having recycling bins and organic upholstery. The ecotels can be recognized by their holistic approach to minimize harm to the environment as well as have a positive social impact. These hotels use organic products,energy-efficient equipment, recycling programmes,renewable energy sources and local community engagement among other enhanced practices. To recognise a hotel as one, first and foremost it has to be certified with the green certification. Various certification programs offer recog- nition to hotels that meet specific sustainability criteria. Features such as onsite amenities, pool and laun- dry operations, convention facilities, and transient guest populations, hospitality properties can present unique challenges and opportunities in areas of environmental performance. The various green rating systems address these specific areas to increase efficiency, reduce waste, and promote alternative materials.The ecotel certification is based on five key areas such as water conservation, energy conservation, employee environmental education, solid waste management, and environmental commitment. The ecotel certification enables the hotel to become sustainable and green by involving the total value chain of architects, suppliers, employees, owners, operators, and guests. To sum up, an ecotel incorporates various practices to promote environmental consciousness such as using renewable energy sources, non-toxic cleaning products, environment friendly interiors to dedicated sensitizing programs on saving water & energy for staff and the guests.

THE REASONS TO GO GREEN

The green transformation in hospitality industry is motivated by several reasons from cost savings to a sound business strategy.

Long Term RoI – Electricity and water are the biggest money guzzlers for a hotel. By implementing energy-efficient lighting and HVAC systems, along with solar power generation, hotels can considerably reduce their electrical bills. And, installing water-saving fixtures and rainwater harvesting systems can lead to substantial lower water us- age and cost reductions over the years. Minimizing food waste and recycling materials too cust major operational costs while, also enhancing the hotel’s brand value.

Business Strategy – The growing demand for ecotel accommodations across the country, has driven hotel chains to go green as it makes a perfect business sense. Hotels can leverage their eco-friendly practices as a USP to attract customers and stand out in the highly competitive market. Moreover, travellers are willing to pay a premium for hotels that are sustainability focused.

Environmental Regulations – Most importantly, going green is no more a choice but, the stricter environment regulations by the government have mandated environment friendly practices and operations by the hospitality industry. Rigorous rules to ensure organizations meet energy consumption, emissions and sewage disposal standards are driv- ing hotels to prioritize environmental conservation in India.

EXAMPLE OF GOING GREEN

Energy-Efficient Systems - Marriott International chain has implemented an energy management system that uses artificial intelligence to optimize energy consumption. TheRadisson Hotel Group also uses software that allows hotels to monitor and manage its energy consumption in real-time, leading to a significant reduction in its carbon footprint.

Water Management - The Hilton chain water management system uses sensors to monitor water usage and detect leaks, thereby reducing water waste. The Wyndham Hotels & Resorts chain uses smart irrigation system for its landscaped areas that utilizes weather data to adjust watering schedules and volumes, reducing water waste

Waste Management - ITC Hotels in India has been using a waste management system that converts organic waste into biogas. This biogas is then used to generate elec- tricity, reducing the hotel’s reliance on non-renewable energy sources. ShangriLa Hotel in Singapore introduced a rainwater harvesting system that collects and stores rainwater, which is then used for irrigation and other non-potable water needs.

Solar Power- The InterContinental Hotels Group installed solar panels at several of its properties. These panels generate a significant portion of the hotels’ electricity, reducing reliance on non-renewable energy sources. “

Food Waste Management - The Accor group uses a smart waste tracking system that identifies and records food waste, providing data that helps the hotel reduce waste and improve menu planning. Fair- mont Hotels & Resorts chain has implemented a food waste tracking system called “LeanPath”, providing valuable data that helps the hotel reduce waste and improve its food procurement processes.

In-Room Technology - Hyatt chain introduced smart rooms equipped with IoT devices that controls lighting, temperature, and other features based on guest presence, leading to significant energy conservation by preventing unnecessary conditioning of vacant spaces. Mandarin Oriental Hotel Group has introduced smart mirrors in its bathrooms. These mirrors have inte- grated displays that provide guests with information about the hotel’s sustainability initiatives, reducing the need for printed materials.

Electric Vehicles - Four Seasons have started offering electric vehicle charging stations, encouraging the use of EVs and contributing to a reduction in carbon emissions.

Carbon Emissions -“CO2 Zero STAY” program developed by a Japanese hotel enterprise uses the carbon offset system. It calculates and visualizes the amount of CO2 emissions generated by guests and invests an equivalent amount in carbon emissions reduction activities, thereby balancing the negative environmental impact to virtually zero.

ECO-HOSPITALITY MARKET OPPORTUNITIES

As suggested by various industry surveys, with the rising inclination towards environmental consciousness and sustainability worldwide, the Indian hospitality industry is at a crucial crux of reinventing itself as a sustainable hospitality sector, where going green is not just a marketing gimmick. There are still many untapped regions and tourist destinations that offer potential for eco-friendly hotels. Engagement with local communities at various levels can help provide community-based pro- grams that can add to the appeal of an ecotel and positively impact the surrounding communities. Especially after the pandemic crisis, nature-focused accommodations are growing in popularity and their demand is growing by the day.

IMPROVING BRAND IMAGE

The hospitality industry has a bad reputation of adding to environment pollution directly or indirectly. The direct emissions come from the combustion of energy, refrigeration & transportation and the indirect emissions come from consumption of electricity, goods and services.

As per industry statistics, hospitality accommodations contribute 2% of the 5% global CO2 emission. Also, 75% of hotels’ environmental impacts can be directly related to excessive consumption of resources, while also creating unnecessary operational costs. The hotel industry faces a sig- nificant challenge in reducing its emissions to meet the targets of a 66% reduction by 2030 and a 90% reduction by 2050. Achieving these targets will require a multifaceted approach involving energy efficiency, renewable energy adoption, waste reduction, and sustainable practices. With commitment and creativity, many hotels in India are setting example in becoming eco-conscious and setting an example for others. For instance, hotels encourage guests to reuse towels, offer ecofriendly toiletries, have minimized use of plastic packaging and water bottles, optimizing laundry services, recycling mattresses and partially used soap and are using recycled paper products. In addition, serving locally sourced food and beverages, reduces carbon footprint and supports local farmers and small businesses.

The latest trend of hydroponic farming in hotels in India offers advantages of year-round availability, space efficiency, sustainability, reduced pesticide use, reduced the dependence on external suppliers and lower transportation costs as- sociated with sourcing produce.

GREEN PUSH FROM THE GOVERNMENT

Government bodies are increas- ingly providing incentives for hotel buildings with green certificates, acknowledging the need to implement sustainable building design and practices. Green building ini- tiatives from various tourism boards and rising demand from tourists for eco-friendly vacations at hotels that support green practices is expected to further support the Indian hospitality industry. According to the Gujarat Tourism Policy47, the IGBC will return 50% of the certification price to hotels and wellness resorts that achieve a green rating. Similar initiatives by other states and tourism boards encourage green buildings in the Indian hospitality industry. For example, hotels that utilize renewable energy sources can benefit from tax exemptions, and grants are available for those who implement eco-friendly technologies. Besides mandates from governments and regulators to adopt sustainable practices, the hospitality industry is also pushed by its cus- tomers and investors to embrace sustainability and make it an integral part of the way they operate.

ENCOURAGING GREEN HOSPITALITY

Surely, the hotel industry in India is showing signs of eco-friendly, however like it is said Rome was not built in a day, the industry too has a long way to go to. As per KPMG report, with the resurgence of over tourism post the pandemic, the government and other stakeholders are developing solutions that address negative impacts of tourism and transform it into something more sustainable.It is equally vital that tourists and travelers the main drivers of tourism change their attitudes and behaviors to ensure a sustainable future. Furthermore, hospitality industry produces a considerable amount of wastage, which calls for an urgency to address the issue. There is also an opportunity to undertake myriad approaches such as rethinking management of restaurant kitchens, training of service staff, using local, seasonal ingredients, and more. Sustainable tourism can only be practiced effectively through a stable and a well-trained workforce. There is an urgent need to train and empower locals with appro- priate skills and knowledge about the hospitality and service industry to ensure effective implementation of sustainable tourism strategies.

According to a recent KPMG report, the sustainable tourism market in India was valued at US$26.01 million in 2022 and is projected to reach US$151.88 million by 2032, with CAGR of 19.3% from 2022 to 2032.

Hoteliers and designers are using a ‘three-zero’ approach- local materials & skills (zero kilometres), energy management & lower emissions (zero carbon), life- cycle management (zero waste).

While most of the certifications about environmental sustainability emphasize building physical structures and hotels, ecotel focuses hugely on the operational part of the hotels.