ENERGY POLICY & ENVIRONMENTAL MANAGEMENT IN HOTEL INDUSTRY ARISTOTLE UNIVERSITY DEPARTMENT OF MECHANICAL ENGINEERING ENERGY SECTOR LABORATORY OF HEAT TRANSFER AND ENVIRONMENTAL ENGINEERING http://aix.meng.auth.gr UNIVESRITY OF IOANNINA SCHOOL OF NATURAL RESOURCES AND ENTERPRISES MANAGEMENT DEPARTMENT OF ENVIRONMENTAL AND NATURAL RESOURCE MANAGEMENT LABORATORY OF ENVIRONMENTAL PHYSICS www.env.uoi.gr 2nd International Scientific Conference “Energy and Climate Change” Athens, 8 – 9 October 2009 ENERGY POLICY & ENVIRONMENTAL MANAGEMENT IN HOTEL INDUSTRY Sofia – Natalia Boemi, Yiouli Mihalakakou Laboratory of Environmental Physics, Department of Environmental and Natural Resource Management, School of Natural Resources and Enterprises Management, University of Ioannina Agis M. Papadopoulos Laboratory of Heat Transfer and Environmental Engineering, Department of Mechanical Engineering, Aristotle University of Thessaloniki

Voluntary approaches  ENERGY POLICY INSTRUMENTS HOTEL INDUSTRY (1/4) General: Hotels have become proactive following green practices and developing environmental programs Over the last decades concerns related to the environment to the hotel sector have progressively escalated. Consumers realized their impact of their purchased behaviors  associated with environmental problems. Nature-based tourism has turned out to be the fastest growing segment of the global tourism market. Voluntary approaches  ENERGY POLICY INSTRUMENTS Characteristics: (1) Promoters are not obligated by launch to launch these schemes (2) Target groups are not obligated to join Over the last decades concerns related to the environmental aspect of the hotel sector have progressively escalated. In the increasingly environmental conscious marketplace, consumers have realized the impact of their purchased behaviors, which are strongly associated with environmental problems. Such markets are the various types of lodging operations which have become increasingly proactive in following Green practices and developing environmental programs. Those voluntary approaches are increasingly considered as relevant policy instruments to control and regulate the hotel branch towards environmental protection, by developing a diverse set of efforts. These are considered voluntary initiatives, since they have 2 basic characteristics: promoters of the initiatives are not obligated by law to launch these schemes target groups are not obligated to join. According to empirical studies, tourism tourism-related uses of natural resources are increasingly significant and nature-based tourism has turned out to be the fastest growing segment of the global tourism market. The relevance of the close link between tourism and ecological systems has been widely recognized in the field of environmental economics. Still and despite this relevance the efforts to bring attention to the benefits that can be gained by broader and deeper voluntary commitments to the environment, and all that accompanies those, remain rather limited.

Relevant with hotels sustainability! HOTEL INDUSTRY (2/4) Green Hotel  An environmental friendly lodging property that applies and follows ecologically sound programs and practices. Relevant with hotels sustainability! Adoption of environmental friendly practices Basis for good marketing strategies There is a gap between hoteliers decision-making process for adopting a voluntary scheme with a view to use it as an EMS. Voluntary schemes are complex because they influence: Customer’s awareness; Responsibility toward environmental issues and energy use; Act as a tool to increase hotel’s economic finance. A GREEN HOTEL is an environmental friendly lodging property that applies and follows ecologically sound programs and practices, like water and energy saving measures, reduction and management of solid waste and structural measures  in order to promote Sustainability. With the growing number of customers seeking green operations, environmental friendly practices can help not only in characterizing a hotel as “green” but in providing a basis for good marketing strategies with a view to help position it differently to the competitive arena. Thus, the green hotel business is believed to be a growing niche to in the current competitive industry. EMS and customers’ green preferences have been examined in previous studies. Still little research has been focused on the hoteliers decision-making process for adopting a voluntary scheme, with a view to use it as an Energy Management System (EMS). Voluntary schemes are complex systems because they are infused by customers’ awareness and responsibility toward environmental issues and energy use and act as a tool to increase hotel’s economic finance importance.

Relevant voluntary environmental quality labeling schemes HOTEL INDUSTRY (3/4) Greek Reality: Annual Turnover  rise 5.8 % for 2006 and 5.3% for 2007, worldwide 4%. Expectations about tourism in Greece  annual growth 6-7% Overconcentration hotel capacity in 4 main areas (Crete, Ionian Islands, South Aegean islands and Athens) Hotel brands and big hotel units (>100 beds), apart form economic crisis they have better performance than the smaller ones. 56,5% of big hotels units intent to invest in energy conservation measures during winter versus 46% of the smaller ones. Series of structural, financial and administrative measures adopted by the state with a view to improve environmental performance of services and products. Greek tourism industry is among the most dynamic branches within the services' sector. According to a statistical survey Greek hotel industry is in a steady grow, presenting a rise in annual turnover of 5.8% for 2006, which correspond to a rise from 2.54 bn E in 2006 to 2.69 bn E in 2005. That represents 15% of the Greek Gross Domestic Product, underling the role of the branch as an essential development tool for the national economy. The Next years even the worldwide economic crisis, tourism in Greece is expected to develop an annual growth 6-7%. As Greece is on its way to transform itself to an upmarket tourism destination, need for an increase in high quality resort accommodation becomes apparent. The government has identified that high quality resort accommodation therefore tourism infrastructure development was set as priority target and the creation of integrated resorts which offer wide variety of touristic services was encouraged. That lead to an overconcentration in for main areas. Therefore a strategic plan for spatial development has been into consultation to balance touristic growth. Furthermore, (1) aiming at the improvement of the existing infrastructure, (2) the lengthening of operational season (3) improvement of alternative forms of tourism  a series of structural, financial and administrative measures were adopted by the state. With respect to the aforementioned role of sustainability, the measures are based on the EU’s encouragement towards the improvement of the environmental performance of services and products. Concerning these new approaches elaborated by the EU, in order to improve the energy performance of the tourism sector, one cannot fail to underline the voluntary environmental quality labeling schemes Relevant voluntary environmental quality labeling schemes Promytheas Oct 2009 Sofia- Natalia Boemi

Environmental Energy Management Systems (EMS) Considerations HOTEL INDUSTRY (4/4) Greek Reality: Hotels  Major energy consumer at Tourism sector Hotels represents 0.82% of the whole building stock Hotels consume 6% of the total primary energy consumption Hotels average specific annual consumption 407 kW/m2 Basic characteristic  Seasonal character of Greek tourism Energy performance in hotels depends: Within the tourism sector, hotel enterprises are the major energy consumer. Surveys (CRES, Ministtry of Development) have shown that although hotel represent only 0.82% of the whole building stock, they consume 6% of the total primary energy consumption, with an average specific annual consumption of 407 kW/m2. If energy demand is analyzed with respect to its time variation, then one cannot fail to notice that the peak values are recorded to the summer season due to use of air-conditioning for space cooling, a fact that is enhanced by the seasonal character of Greek tourism. Energy performance in hotels varies significantly depending on their category, the use of buildings, their architectural and constructive features, their maintenance, the existing heating, cooling and lighting systems and other equipment and services provided. As a result high energy costs occur, representing an important fraction of the annual costs of a hotel. An in depth investigation on present energy uses of the sector is presented with the aim to highlight the potential and the importance of voluntary schemes for tourism and to prove that adoption of an EMS leads to a sustainable touristic development by improving the quality of its facilities and its services. Category Use of buildings Architectural and constructive features Environmental Energy Management Systems (EMS) Considerations Maintenance Existing heating, cooling and lightning systems Other equipment and services

ENVIRONMENTAL CLUSTERS (1/2) Awareness of the role in the environmental in every day life 2/3 of European citizens are wiling to adopt EU’s measures towards environmental affairs Other concerns: Climate change Water and air pollution Anthropogenetic disasters Use of chemical substances in daily products Environmental concerns Implementation of Environmental Energy Management Systems (EMS) Lead to reduction of energy consumption Installing recycling schemes and composting food scraps  reduce solid waste and minimize energy costs Amplify with the environmental image of a hotel Help hotel’s position to the competitive marketing arena. Help to the reduction of social and ecological impacts to a touristical area. That advocate with the basic aim of the touristic sector which is to provide qualitative services. The basic tourism model has been followed that have social and ecological impacts on touristic destinations.  high concentration of tourism activities in specific restricted period and in rather constrained spatial areas. Also, EU’s citizens awareness toward environment issues in complicity with climate change, water and air pollution, antropogenetic disaster and use of chemical substances in daily products has lead to the need of an environmental energy policy. Usually, The selection of an EMS system is implemented mainly in order to cope with financial criteria and not with in order to control or reduce energy consumption. The willingness and the ability of facility management and staff to adopt greater environmental awareness is crucial in striving towards a higher degree of sustainability. There are conflicting results about the nature of the industrial practices. But there is hope! Some studies which have revealed that hotel operators generally recognise the need for environmental protection and are involved in a number of activities. Environmental management has become an important issue in the hospitality, with a number of hotels adopting environmental management practises to the growing concern for sustainable tourism products. Environmental policy plans, which include protection activities, to reduce consumption of energy, waste and materials are included has never been adopted by Greek hotels. Promytheas Oct 2009 Sofia- Natalia Boemi

Widely know Energy Management Systems for Greek Hotels ENVIRONMENTAL CLUSTERS (2/2) Widely know Energy Management Systems for Greek Hotels EMAS ISO 14001* Eco-LABEL * Is expected the implementation of ISO 50001 – Energy Management at the end of 2010 Eco Management and Audit Schemes (EMAS) ISO 14001 Eco – Label Promytheas Oct 2009 ΣΟΦΙΑ – ΝΑΤΑΛΙΑ ΜΠΟΕΜΗ

ISO 14001  ISO 14000 has been developed as a new international standard series for promoting environmental protection and sustainable development  ISO 14001 specifies the requirements and procedures for establishing environmental management system. Basic principles of ISO 14001: Establish environmental policy Determine environmental aspects and impacts of products/activities/services Plan environmental objectives and measurerable targets Implement and operation of programs to meet objectives and targets Check and corrective actions Management review ISO 14000 has been developed as a new international standard series for promoting environmental protection and sustainable development. There are a total of 21 standards and guidance documents in the ISO 14000 family. ISO 14001 specifies the requirements and procedures for establishing an environmental management system. An increasing number of organizations from various industrial sectors have actively participated in implementing this new standard. ISO 14001 is referred to as the specification document and is the only standard designed for purposes of audit and certification in the ISO 14000 series. The EMS is likely to stimulate and initiate a substantial change in environmental attitudes in every industry. It outlines the basic elements and functions of an effective EMS including establishing an environmental policy, determining environmental aspects and impacts of products/activities/services, planning environmental objectives and measurable targets, implementation and operation of programs to meet objectives and targets, checking and corrective action, and management review. Sustainable construction at an operational level includes recycling construction material and construction debris, using renewable materials and materials with high recycled content, designing efficient building systems, and informing building owners and managers how best to conserve energy and resources in the operation and maintenance of facilities. It calls for a systematic approach and continuous effort within the industry in order to achieve the objectives of sustainable construction. Promytheas Oct 2009 Sofia- Natalia Boemi

Eco-LABEL Is a joint initiative from Competent Bodies and European Members Eco-Label for tourist accommodation was created in April 2003 to reward tourist accommodation services and tourists that respect the environment. 34 mandatory and 47 optional criteria Is the only European official environmental label contrary to ISO 14001 and EMAS certification which is recognised in all countries and there are also synergy effects in interaction with EU Eco-label for products. Energy & Water Saving Use of Renewable resources Staff training Information for guests No dangerous chemical substances Environmental procurement European Eco-Label for tourist accommodation service is a joint initiative from Competent Bodies of the European Members. It’s a voluntary scheme designed to encourage businesses to market products and services that do not harm the environment and are easily to be identified by European’s. Eco-Label for tourist accommodation was created in April 2003 to reward tourist accommodation services and tourists that respect the environment. It includes different categories of mandatory and optional criteria that the accommodation must respect in order to be awarded the Eco-Label scheme. There are 34 mandatory and 47 optional criteria, aiming to ensure the use of energy efficient heating and electrical devices, saving water, training staff in order to put in implement environmental management behaviour, such as proper use of chemical substances and disposal of waste etc. Finally, criteria aim at improving management measures toward a more conscious and efficient environmental performance from lead, staff and guests. The reasons for choosing Eco-label scheme are: A display of the high quality and environmental performance of the company, by using an official logo from the European Commission. To unveil ecological and economic weaknesses in the enterprise and to enable innovations to be implemented. To reduce the consumption of natural resources like energy and water in order to reduce operational costs. Environmental commitment stands for healthy lodgings, healthy nutrition and a healthy environment for the guests and the employees. An Eco-labelled accommodation service is entitled to be used for a number of marketing tools (e.g. advertising brochures, leaflets) The “Flower” is the only European official environmental label contrary to ISO 14001 and EMAS certification. Also, it is recognised in all countries and there are also synergy effects in interaction with EU Eco-label for products. There is a real synergy between the EU ISO 14001 and Eco-Labels and criteria. Applicants with an Environmental Management System registered or certified according under the ISO 14001 regulation automatically fulfil several criteria required for EU Eco-Label. Those programs are promising market-placed approaches for improving environmental performance of tourist accommodation services and facilities. ENVIRONMENTAL FOCUS Promytheas Oct 2009 Sofia-Natalia Boemi

ENVIRONMENTAL CLUSTERS (1/2) General Discussion: EMS aims Defining a hotel’s energy policy in connection to the environment; Identifying and analyzing activities deal with environmental issues; Purchasing and budgeting policies and a corresponding energy plan; Training hotel’s operational and key – staff in energy management; Training hotel’s customers Performing environmental monitoring or auditing for managers as well as assessment and evaluation of energy use and associated costs.

ENVIRONMENTAL CLUSTERS (1/2) Green Hotel Association reported a guest participation of 70-90 % participation in voluntary schemes corresponding to savings 4 €/ day/ occupied room. 5% of the hotel customers agree to pay a premium for sustainable packages. 52% of visitors are prepared to pay an extra 10% for environmental tourism products. Managing energy use is a part of overall EMS. Energy consumption in hotels is clearly a factor for their competitiveness Cost reduction and increasing sensitivity to environmental factors in hotel design will lead to introduction of elements with less environmental impact and more competitive profit at the hotel market. Hotel’s industry environmental policies arise generally from immediate economic gains. … So marketers should find a way to turn their hotel into “green” by actively finding ways for determining environmental concerns which potentially contribute to building their favorite attitude toward green-consumption in the long-term. However, most of the studies indicate that Hotel’s industry environmental policies arise generally from immediate economic gains. Those are resulting from minimizing expenses by means of cost reduction measures and also bring conservation and prevention. By means of achieving synergies with the interest of customers willing to pay for green servises

CONCLUSION Hoteliers strong sense that environmental responsibility can improve their profit levels Interest of customers willing to pay for green services Lead to adoption of an EMS Rationalization of energy use By means of achieving synergies with the interest of customers willing to pay for green services with the interest to pay for green services, the adoption of an EMS can lead to rationalisation of energy use to the hotel sector. Hoteliers have a strong sense of public awareness toward environment, in sense that hotel companies can prove environmental responsibility to improve hotel profit levels. In that sense and even if the development of policies and practices in the tourism industry are not genuinely interested in the protection of environment, they can lead to energy conservation.

Thank you for your attention! Promytheas Oct 2009 Sofia – Natalia Boemi