3. Travel & Tourism forecast to pass $2 trillion GDP in
2012
Travel & Tourism is set for a milestone year as the
industry’s direct contribution to the global economy
is expected to pass $2 trillion in GDP and 100 million
jobs. According to research by the World Travel &
Tourism Council (WTTC), the global Travel & Tourism
industry will grow by 2.8% in 2012, marginally faster
than the global rate of economic growth, predicted
to be 2.5%.
This rate of growth means that Travel & Tourism
industry is expected to directly contribute $2 trillion
to the global economy and sustain some 100.3
million jobs. When the wider economic impacts of
the industry are taken into account, Travel & Tourism
is forecast to contribute some $6.5 trillion to the
global economy and generate 260 million jobs – or 1 David Scowsill
in 12 of all jobs on the planet. WTTC President & CEO
4. 2011 closes stronger than expected for business travel with total business
travel spending up 8.3% for third quarter 2011.
2012 will continue to see more measured growth as economic headwinds
persist. GBTA forecasts that business travel spend will increase by 4.6%
in 2012.
5. The CMI Green Traveler Study 2010-11
The Green Traveler Study asked over 950 “eco-conscious” travelers
• How do they travel, and how much?
• What does “sustainable” or “green” travel mean to them?
• How environmentally conscious are their purchasing decisions when not traveling?
• What drives their interest in green travel options and destinations?
• Will they pay a premium for sustainable choices?
• Is there a gap between their intentions and their behavior?
• What do they expect from green travel brands?
• How do they view green branding and messaging?
• What gives them trust — or makes them skeptical?
• How deep is their commitment to green travel, and how far will they take it?
6. The CMI Green Traveler Study 2010-11
Key Finding #1:
Eco-Travelers Become Greener
Travelers were more eco-conscious, shopping locally, recycling more at home and at
work, buying recycled products, and avoiding unnecessary purchases.
More active steps towards a sustainable lifestyle increased — composting, going
vegetarian, bicycling or taking public transportation to work. Overall behavior and
spending was 5-17% more environmentally friendly than 2009 respondents.
5% more respondents acted on their environmental concerns while traveling.
85% turned off the lights when they left the room
75% say they had recycled and used their towels and sheets more than once
7.5% increase in “researched and booked greener accommodations”
4% more offset the impact of their travel
5% whose environmental concerns impacted their discretionary travel style
8% increase would most likely go on a greener vacation within the next year.
7. The CMI Green Traveler Study 2010-11
Key Finding #2:
Low Tolerance for High Premiums – The Green Price Point 62% of respondents said
that they did not pay extra to stay at a “greener hotel” . And 87.3% of travelers
paid between 0 and 5%, which represents more than a 13% increase over 2009.
Is green getting cheaper?
Are green practices something customers don’t know they’re paying for?
Are economic conditions keeping travelers from acting on their green intentions?
Green is still not something customers will actually pay extra for today; they won’t
pay a “green tax.”
One thing is certain — price remains a central concern among travelers. Price was
ranked as the #1 criterion for choosing a hotel by more travelers than any other
factor, including the hotel’s environmental programs.
8. The CMI Green Traveler Study 2010-11
Key Finding #2:
Low Tolerance for High Premiums – The Green Price Point
Insight: Make green concrete. For most people, environmental sustainability is still a
relatively abstract concept — especially when compared to practical issues like price
and convenience.
LEED certification, carbon offsets and sustainable materials do not have the visceral
appeal of an ocean view or an Olympic-sized pool. Flipping those product attributes
into consumer benefits drive sales and justifying price premiums. Instead of talking
about LEED certification mention pure air, natural, non-toxic carpeting and healthy,
organic linens are creature comforts that could compel customers to pay a premium
for sustainability.
That said, numerous case studies across all tourism and hospitality segments show
enormous cost-saving benefits to green initiatives, and CMIGreen identified
operations as the place to find the ROI in green, not extra charges to consumers.
17. What)Cer<fica<on)is)right)for)my)hotel?)
EcoRooms® & EcoSuites™: (www.ecorooms.com) Certified properties must meet
eight strict eco-criteria for membership and certification. The criteria includes: use of
Green Seal certified cleaning and paper products, towel and linen reuse program,
recyclable waste program, energy efficient lighting, high efficiency plumbing, and
100% smoke-free properties.Rating: Must meet all eight program requirements
Recognized/Chosen by: American Hotel and Lodging Association (AH&LA) and the
American Automobile Association (AAA).
EPA’s Energy Star label: (www.energystar.gov) The Environmental Protection
Agency’s Energy Star program enables buildings to qualify through meeting strict
energy performance standards. Energy Star labeled properties use less energy, have
reduced operating expenses, and reduced greenhouse gas emissions. To be certified,
the property must attain a minimum score of 75, the top 25%, based on EPA’s
National Energy Performance Rating System. As of November 2010, there are 426
Energy Star labeled U.S. hotels. Rating: Must obtain a score of 75 or higher.
#
18. What)Cer<fica<on)is)right)for)my)hotel?)
Green Globe Certification: (www.greenglobecertification.com) This is a certification label for
sustainability in both management and operations. Certification criteria cover several areas,
including sustainable management and social economic, cultural heritage, and environmental
aspects of sustainability. The program’s criteria are also updated annually to ensure
international compliance.
Rating: Must achieve threshold of at least 35% of the total 1,000 points
Green Key®: (www.greenkeyglobal.com) The Eco-Rating program is specifically designed
for hotel operations to rank, certify and inspect green initiatives. Based upon a
comprehensive environmental self-assessment, hotels are ranked and provided with
guidance on how to “unlock” opportunities. The program assesses the five main operational
areas of a property and covers nine sustainable practices. An on-site inspection may be
conducted to confirm green hotel rating.
Rating: One to Five Green Keys
Recognized/Chosen by: Carlson Hotels, Hyatt Hotels, Motel 6,MGM Resorts International,
Sofitel, Fairmont Hotels & Resorts and Accor in the U.S/North America region.
19. What)Cer<fica<on)is)right)for)my)hotel?)
Green Seal certification: (www.greenseal.org) This tiered certification is presented to those
lodging properties that achieve various levels of compliance with GS-33, Green Seal
Environmental Leadership Standard for Lodging Properties. Properties must demonstrate
science-based evaluation of sustainable practices in following areas: waste minimization,
energy efficiency, conservation and management, management of fresh water resources,
wastewater management, hazardous substances, and environmentally conscious purchasing.
Rating: Bronze, Silver or Gold Levels
Recognized/Chosen by: The city of Los Angeles through its Green Business Initiative, as well
as Chicago through its Green Hotels Initiative.
USGBC LEED® certification: (www.usbgc.org/leed) The Leadership in Energy and
Environmental Design (LEED) Green Building Rating System™ is the nationally accepted
benchmark for the design, construction, and operation of high performance green buildings.
Promotes a whole-building approach to sustainability by recognizing performance in five key
areas: sustainable site development, water savings, energy efficiency, materials selection, and
indoor environmental quality.
Rating: Certified, Silver, Gold, or Platinum Level#
20. Floor Area Forecast
(millions of square feet)
LEED$new$
construction$$
49,167
projects$in$the$U.S.$
expected$to$exceed$
one$billion$square$
feet!$ 21,173
$
$[This$includes$LEED$New$ 7,707
Construction$(NC),$Core$
&$Shell$(CS),$Commercial$ 7,359
Interiors$(CI),$LEED$ 4,361
Schools$and$LEED$Retail,$ 3,508
but$not$LEED$for$Existing$
Buildings(EB).]$ 3,959
2,197
GREEN BUILDING 264
MARKET 185
IMPACT
70
A N D
37
REPORT
2009 2020 2030
Cumulative LEED NC Certified SF Cumulative LEED CS Certified SF Cumulative LEED CI Certified SF Cumulative LEED EB Certified SF
36. Energy)Efficiency)Tax)Advantages
)
Building Cost Audit – There are tax advantages that most investors find too confusing or
simply too time consuming to take advantage of. By engaging a specialized accounting firm
with engineering expertise you can qualify for significant tax deductions.
EPACT05 Energy Tax Deduction (requires independent certification of the
energy efficiency measures).
Cost Segregation – Properly determine depreciable life of building
components, maximizing current deductions.
Abandonment – Certain long term assets may be written off due to
renovation of the building, maximizing current deductions.