1. 1 Sustainability and Tourism A New Approach for Tourism David Owens, Head of Communications, Arup Europe

2. 2 Arup Montage – Arup Tall Buildings

3. 3 More than 1000 hotels globally

4. 4 Hotels Design Services

5. 5 Emergence of “Green Investment”  Global Market for green goods and services €3.5 billion  US green product introductions 2.8% (1988), 10.7% (1997) estimated 25% in 2009  Socially Responsible Investment (SRI) portfolios estimated to account for approximately 20% of professionally managed funds  How are consumers articulating green preferences and what are the implications for the Tourism Industry?

6. 6... Doesn’t mean hotels like this!

7. 7 Maintain natural appearance Environmental and sustainable approach Protect the coastline from erosion Sustainable Transport Reduce Impact on Existing Infrastructure Create first class destination

8. 8 Emergence of the Green Tourist

9. 9 Light Green: Characteristics: Business & leisure travellers seeking to minimise the environmental impact of travel - without losing the pleasure and comfort of travel Requirements: Exceptional experience using the best practice in sustainable operations and management Example: Royal Caribbean offers luxury on a ship which houses working laboratories that study water pollution & climate change What is a green tourist?

10. 10 Dark Green: Characteristics: Eco Travellers/ “Voluntourists” interested in responsible travel to natural areas which conserves the environment and improves the well-being of local people Requirements: Ecotourism is as much about experiencing the destination as the way that it is delivered & packaged Examples: Luxury eco-tents on safari in Kenya, 5 day bike trek in the Himalaya’s What is a green tourist?

11. 11 CMI Green Travel Survey 2009: Defining Green travel How do they define green travel?  Eco-friendly hotel  Uses mass transit and/or renewable electric vehicles  Sources from local businesses  Company donates to green environmental causes  Carbon neutral offsets built into pricing Top 5 responses:

12. 12 Hotel Environmental Initiatives What hotel environmental initiatives are important to them?  Recycling  Energy efficiency  Water efficiency  Non-toxic cleaning chemicals  Eco friendly soaps, shampoos, conditioners Top 5 responses:

13. 13 Contributions to the environment What are the most important contributions to the environment?  Supports local communities and economies  Educates traveller or on environmental diversity  Promotes a culture that values the environment  Creates advocates for endangered locations, species and cultures  Highlights the importance of natural parks and inhabitants Top 5 responses:

14. 14 Contributions to the environment Motivators for hotel selection Top 5 responses:  Price or special offers  Location  Quality  Online review of property  Brand or hotel’s reputation 8. The hotel’s environmental program 10. Sustainable dining options 12. Green certification

15. 15 A Paradigm Shift  Green consumers are increasingly seeking out greener forms of tourism  They have clear ideas of what they would expect to see in a green hotel  Although they have some views on what constitutes sustainable tourism they are yet to grasp all the facets that would constitute this and there is a role for the mass tourist industry to shape this experience  There is confusion in the market about how to evaluate green claims and certification levels – this needs to be addressed to help consumers make more informed choices going forward  There is no clear green brand leader in this area providing a real opportunity for a destination and hotel brand to win market share and gain early competitive advantage  Price and location still remain a bigger driver for green consumers than green credentials  There is not much price elasticity with findings showing that the majority of people would only accept a price increase of 5% for green  With 64% of US consumers now saying they would buy green products this could equate to a sizeable target market for green tourism in the future

16. 16 Why is Mass Tourism Important to MNE Sustainability? Skills training for locals New infrastructure Protection of the natural environment Innovation Improved bottom lineSupply chain benefits

17. 17 Final Remarks  Russian tourism offer cannot be re-built around green tourism alone  Next generation mass tourism and eco-tourism can be mutually supportive  Mass tourism critical to delivering economic and social benefits  Need to foresee a time when all tourists are green  Plan and invest in sustainable infrastructure  Target both light and dark green consumers

18. 18 Contact Information David Owens: ARUP Russia: david.owens@arup.com Arup Russia 36 Krasnoproletarskaya Street, 4th floor Moscow, Russia Tel: (+7 495) 9-337-557 Fax: (+7 495) 9-337-577 www.arup.com