The document discusses the economic contribution of travel and tourism globally as well as opportunities and challenges regarding environmental sustainability in the industry. It notes that travel and tourism accounted for 9.2 trillion in GDP and 324 million jobs in 2011. While making up a small percentage of total emissions, the industry is leading efforts to reduce its environmental impact through more fuel efficient planes, green resort practices, and carbon offset programs. However, challenges remain in fully engaging small businesses, educating consumers, facilitating technology sharing, and addressing misperceptions of the industry's impact.

1. Balancing economic
Sustainability
returns with
environmental
WTTC concerns
April 2011

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3. Travel & Tourism is an economic powerhouse to be
fostered
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4. TRAVEL & TOURISM’S SUBSTANTIAL GLOBAL
ECONOMIC CONTRIBUTION
World Travel & Tourism outlook
% of whole economy
Direct Total
14 GDP
(constant 2011 prices) Employment
12
US$ 9.2 trn
US$ 6.0 trn 324 mn
10 259 mn
8
6
4
2
0
2011 2021 2011 2021
Source : Oxford Economics
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5. T&T’S CONTRIBUTION TO GLOBAL GDP COMPARED
GDP contribution by sector 2011
%
12 Direct GDP Total GDP
10
8
6
4
2
0
Automotive Banking Tourism
production
Source : Oxford Economics
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6. Sustainability makes business sense
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7. Sustainable business practices are critical
 Sustainable business practices are integral to the
success of our industry
 Without pristine waters, coral reefs, forests, and jungles,
we have compromised our very product
 Sustainable practices can also yield better margins
through lower operating costs and market advantages
with consumers
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8. Oil consumption growth continues
WORLD OIL CONSUMPTION (HISTORICAL AND FORECAST)
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9. Travel & tourism is at the forefront of
sustainable business
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10. Example #1: Aviation
 Today’s aircraft are 75% quieter than those of 40 years ago
 Airlines contribute 8% of economic activity but less than 3% of
man-made greenhouse gas (GHG) emissions
 Since 1978, US airlines have more than doubled fuel
efficiency, saving 2.9B metric tons of CO2 – the annual
equivalent of taking approximately 19M cars off the road
 In the last decade, U.S. passenger and cargo airlines
collectively realized a 25% gain in fuel efficiency
 Airlines investing in the development of commercially viable,
environmentally friendly alternative fuels
Source: Air Transport Association
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11. Example #2: Lodging
 Juma Sustainable Development Reserve
 Marriott International committed US$2 million to protect and
preserve 1.4 million acres of endangered rainforest in the
Amazon
 Guests are able to contribute to the Juma fund to voluntarily
offset the calculated emissions from their stay
 First REDD (reduced emissions from deforestation and
degradation) initiative validated to the Climate, Community, and
Biodiversity Standards (CCBS) in Brazil
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12. Example #3: Resort
 Installed a 80 kW windmill - the first utility-grade windmill
installed in the Caribbean
 Air conditioners with heat recovery units, which convert the
heat loss into hot water, in supplement to solar water heaters.
 Implemented a carbon offset program where all flights, local
transport/activities by guests will be offset by carbon credits
purchased by the resort
 Encourage other resorts to use green energy, practice energy
conservation
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13. The industry leading the way
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14. Challenges
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15. Challenge #1: Engagement
 The tourism industry is diverse
 Over 80% of global Travel & Tourism activity is accounted for by
small to medium-sized enterprises (SME’s)
 Limited access to information
 Knowledge
 Resources
 Energy efficiency
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16. Challenge #2: Education
 Inform customers of the impact of climate change
 Invest in raising awareness and understanding among
consumers
 Cost and convenience will remain key factors in travel
decisions but the environmental impact of travel will become
an important third factor for companies and individuals alike.
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17. RISING LIVING STANDARDS WILL DRIVE
LONG-TERM Travel &Tourism GROWTH...
GDP per capita ($ppp)
US$
Forecast
60,000
50,000
US
40,000
Eurozone
30,000
China
20,000
Russia Brazil
10,000
India
0
1980 1986 1992 1998 2004 2010 2016
Source : Oxford Economics
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18. Challenge #3: Technology
 Innovate: UNWTO estimates suggest that over a third of CO2
mitigation potential over the next 20 years can be realized
through technical efficiency
 Facilitate: technology transfers from developed to developing
countries
 Integrate: new technologies and business models
A growing industry needs growing capacity
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19. Challenge #4: Perception
 Many believe travel and tourism to be a relatively large
contributor to global emissions. In fact, the travel industry is a
relatively small contributor to global emissions
 New taxes have targeted the travel sector with environmental
surcharges
 Need to communicate to policy makers…
 the travel sector’s continuous advances in sustainability
 it’s enormous economic value
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20. Our opportunity is now
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21. Thank You
Sustainability
www.wttc.org
WTTC
April 2011
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