Home Publisher's Point of View Ernst & Young Report Provides Helicopter View of Industry’s Green Progress

Ernst & Young Report Provides Helicopter View of Industry’s Green Progress

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Late in 2008, Ernst & Young released a report entitled, “Hospitality Going Green.” I strongly recommend reading through the 16-page document. (A link to it appears at the end of this column.) The report explores some of the major trends and programs initiated around the world to encourage industry participation in sustainability efforts. “Hotel companies are increasingly encouraging environmentally friendly practices and embracing sustainability through both developmental and operational strategies,” the report says. “With initiatives such as education programs, reforestation programs, eco-resorts, the implementation of energy-efficient practices, and the development of buildings that comply with government-defined standards, the ‘greening’ of the industry is a trend that is here to stay.”

The report says that hotel companies are being prompted to go green by rising energy costs, government pressure, consumer expectations and the competitive landscape. The report focuses on each area of the world where green development is taking place: Asia, Caribbean, Europe, India, Latin America, Middle East, Oceania, and the United States. Within each geographical section, the efforts of leading companies such as Six Senses Resorts and Spas, Taj Hotels, Marriott, and Hilton are highlighted.

Specific innovative hotel projects are also mentioned. For example, Ernst & Young highlights the efforts of Japan’s Hotel New Otani. The property installed a 2,800-square-meter green roof, wooden water storage tanks, a compost plant, and a water recycling plant which produces 1,000 tons of recycled water daily from kitchen sewage to be utilized in gardens or staff lavatories. The paper also highlights the efforts of Stanley Selengut, developer of Maho Bay Camp in St. John in the Caribbean. Maho Bay Camp utilizes low-flush composting toilets, solar-heated water and has a Trash to Treasures Art Center where waste such as beer bottles is crafted into sellable items.

Challenges Also Highlighted

The report does not just feature the success stories; it focuses on the challenges each region faces to carry out sustainability efforts as well. “In some regions of Europe, primarily emerging and hotel markets in their infancy in non-EU countries, sustainability is not yet prioritized,” the report says. “For example, the Russian hotel market, undersupplied as it is, has not placed green construction on top of its hotel development agenda—and is unlikely to do so in the foreseeable future.”

For one not familiar with green hotel efforts outside of the United States, the report offers some interesting tidbits. For example, did you know that in China there is a goal to develop 10,000 green hotels by 2010? Or that ECOS Hotels, Coral International’s eco-friendly budget chain, will open its first hotel in 2009? It will be located in Dubai.

In regard to green hotel development in the United States, the report cites legislation in states such as California and green lodging programs in places like Florida, Maine, New Hampshire and Vermont as having a significant impact on green hotel development and operations. The U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) is also mentioned as being highly influential. The report says that 451 hotels have achieved or registered for LEED certification.

The report concludes by stating, “Those companies with business models that revolve around green practices will have the strongest opportunity of achieving a ‘sustainable’ competitive advantage.” I strongly agree with this statement and commend Ernst & Young for producing this document. Papers of an academic nature that focus on green hospitality have been few and far between so far. While Ernst & Young’s report has some holes in it (Canada, which has the largest green lodging certification program in the world, is not even mentioned), it is a good start. I challenge organizations like Ernst & Young, as well as those in academia, to continue to focus on green hotel development, its benefits, as well as other sustainability-related issues. These efforts will help to strengthen the case for green initiatives and ultimately benefit the environment as well.

Click here to access Ernst & Young’s report.

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