Tourism

Developed through a multi-stakeholder processfacilitated by:

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Iron and Steel

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Railways

Refrigeration

Road Transport

Tourism

Waste Management

Water Management

Industry as a partner forsustainable development

World Travel & Tourism Council (WTTC)International Federation of Tour Operators (IFTO)

International Hotel & Restaurant Association (IH&RA)International Council of Cruise Lines (ICCL)

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This report is released by the World Travel & Tourism Council, International Hotel & RestaurantAssociation, International Federation of Tour Operators, International Council of Cruise Lines andthe United Nations Environment Programme. Unless otherwise stated, all the interpretation andfindings set forth in this publication are those of the World Travel & Tourism Council, InternationalHotel & Restaurant Association, International Federation of Tour Operators, and InternationalCouncil of Cruise Lines.

The designations employed and the presentation of the material in this publication do not imply theexpression of any opinion whatsoever on the part of the World Travel & Tourism Council,International Hotel & Restaurant Association, International Federation of Tour Operators,International Council of Cruise Lines or the United Nations Environment Programme concerningthe legal status of any country, territory, city, or area or of its authorities, or concerning delimitationof its frontiers or boundaries.The contents of this volume do not necessarily reflect the views orpolicies of the United Nations Environment Programme, nor does citing of trade names orcommercial processes constitute endorsement.

This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holders, provided acknowledgementof the service is made.The World Travel & Tourism Council, International Hotel & RestaurantAssociation, International Federation of Tour Operators, International Council of Cruise Lines andthe United Nations Environment Programme would appreciate receiving a copy of any publicationthat uses this report as a source.

First published in the United Kingdom in 2002.

Copyright © 2002 World Travel & Tourism Council, International Hotel & Restaurant Association,International Federation of Tour Operators, International Council of Cruise Linesand United Nations Environment Programme

ISBN: 92-807-2193-1

1

A report prepared by:World Travel & Tourism Council (WTTC)1-2 Queen Victoria TerraceSovereign CourtLondon E1W 3HAUnited KingdomTel: +44 870 727 9882, +44 207 481 8007Fax: +44 870 728 9882, +44 207 488 1008E-mail: enquiries@wttc.orgWeb site: http://www.wttc.org

International Federation of Tour Operators(IFTO)170 High Street, LewesEast Sussex BN7 1YEUnited KingdomTel: +44 127 347 7722Fax: +44 127 348 3747E-mail: fto@ifto.demon.co.uk

International Hotel & Restaurant Association(IH&RA)251, rue du Faubourg St-Martin75010 ParisFranceTel: +33 1 44 89 94 00Fax: +33 1 40 36 73 30E-mail: infos@ih-ra.comWeb site: http://www.ih-ra.com

International Council of Cruise Lines (ICCL)2111 Wilson Boulevard8th Floor, Arlington,VA 22201United StatesTel: +1 703 522 8463Fax: +1 703 522 3811E-mail: info@iccl.orgWeb site: http://www.iccl.org

Tourism

Industry as a partner for sustainable development

DisclaimerIn a multi-stakeholder consultation facilitated by the United Nations Environment Programme, anumber of groups (including representatives from non-governmental organisations, labour unions,research institutes and national governments) provided comments on a preliminary draft of thisreport prepared by the World Travel & Tourism Council, International Hotel & Restaurant Association,International Federation of Tour Operators, and International Council of Cruise Lines.The report wasthen revised, benefiting from stakeholder perspectives and input.The views expressed in the reportremain those of the authors, and do not necessarily reflect the views of the United NationsEnvironment Programme or the individuals and organisations that participated in the consultation.

2 Tourism

Contents 3

5 Acknowledgements

7 Executive summary

9 Foreword

11 Part 1: Implementation of the three dimensions of sustainable tourism development11 General overview11 Tourism today 13 Economic dimensions15 Social dimensions17 Environmental dimensions18 How the industry has responded to sustainable tourism development19 Future challenges and goals20 The way forward

23 Part 2: The tour operator industry23 General overview23 Economic dimensions24 Social dimensions25 Environmental dimensions27 Conclusions28 Means of implementation28 Future challenges and goals

31 Part 3: Incoming tour operators, agents, groundhandlers, coach and rent-a-car companiesand major attractions

31 Social and economic dimensions31 Social and environmental dimensions32 Conclusion

33 Part 4: The hospitality industry33 General overview33 Economic dimensions34 Social dimensions35 Environmental dimensions37 Conclusions37 Means of implementation41 Conclusions41 Future challenges and goals42 Summary

43 Part 5: The cruise line industry43 General overview44 Economic dimensions47 Social dimensions48 Environmental dimensions54 Future challenges and goals55 Summary

Contents

57 Part 6: Open for dialogue

59 Annexe 1: World Travel & Tourism Council (WTTC)Tourism satellite accounting, estimates and forecasts

60 Annexe 2: World Travel & Tourism Council (WTTC)Sustainability initiatives

62 Annexe 3: World Travel & Tourism Council (WTTC)Private sector initiatives from WTTC members

64 Annexe 4: HospitalityAgreement between UIF and the Accor Group on trade union rights

65 Annexe 5: HospitalityExemplary EMS

67 Annexe 6: HospitalityEducation, awareness-creation, training and information dissemination

68 Annexe 7: HospitalityIndustry voluntary environmental initiatives

71 Annexe 8: HospitalityMulti-stakeholder communication and consultation

72 Annexe 9: Cruise linesWaste management practices and procedures

75 Annexe 10: Open for dialogueList of delegates who attended 3 October 2001 multi-stakeholder meeting in Paris

4 Contents

Acknowledgements 5

This report has been made possible through invaluable input and support provided by manyinstitutions and individuals. Many thanks to the authors of the report Angela Plott and Michael Crye,ICCL; Martin Brackenbury, IFTO; Michelle Fawcett and Elizabeth Carroll-Simon, IH&RA; RebeccaBloom and Graham Wason,WTTC; editor Hazel Hamelin; Steering Committee members: MartinBrackenbury, IFTO; Michael Crye, ICCL; Elizabeth Carroll-Simon, IH&RA; Oliver Hillel UNEP;YuriToroptsov, BEST; Graham Wason,WTTC; Eugenio Yunis,WTO/OMT; participants of the consultativemeeting on 3 October 2001 in Paris.

We would also like to thank UNEP for facilitating the process and providing extensive backgroundreferences.

As well as,

Business Enterprises for Sustainable Travel/The Conference Board(http://www.sustainabletravel.org), a leading source of knowledge oninnovative travel industry practices that advance community, businessand travellers interests.

The Tour Operators’ Initiative (http://www.toinitiative.org), a networkof tour operators that have joined forces to improve their practices, aswell as raise the awareness of the industry

World Tourism Organization (http://www.world-tourism.org), a globalforum for tourism policy issues and a practical source of tourismknow-how.

Acknowledgements

6 Tourism

Executive summary 7

The new millennium and the coming decadesare a crucial time for the relationship betweentravel and tourism and sustainabledevelopment.The need to preserve theworld’s inherent assets for future generationsis becoming an imperative goal not only fortravel and tourism, but also for all otherindustries that use the earth’s naturalresources.The scale of travel and tourism’scontribution to the global economy and itspotential for enabling sustainable developmentare becoming more evident for governments,non-governmental organisations (NGOs) andindustry alike.

The report was mostly prepared before 11September 2001.The impact of the terroristattacks on the World Trade Centre in NewYork and Washington DC were felt in all areasof the travel and tourism sector in developingand developed countries.The atrocity hasbadly damaged parts of the travel and tourismindustry. However, it has also highlighted theneed, now more than ever, for travel andtourism to be recognised as a vital part of theglobal economy, a view that has yet to be fullyacknowledged by governments.Travel andtourism has the potential to reduce theconflict between economic, social andenvironmental objectives and deliverdevelopment in a sustainable way.

Travel and tourism is now one of the largestindustries in the world. Economically, it createsjobs and contributes over 10% GrossDomestic Product (GDP), as well as brings incapital investment and exports. Socially andculturally, travel and tourism offers theopportunity of providing jobs for minority anddisadvantaged groups, creating adequatetraining in management skills, education andtechnology to local people and increasingincomes in rural and local economies, therebycontributing to the alleviation of poverty indeveloping countries. Environmentally, it is

essential for travel and tourism to maintain an optimal balance of its natural resources to ensure the ongoing arrival of tourists to destinations.

The challenge is to move from the existing adhoc approach, to one that can integrate thecurrent social, economic and environmentalprogrammes, funds and initiatives, and evolvenew patterns of managing travel and tourismbusinesses in a more systematic and dynamicway.The inevitable transition to sustainabledevelopment strategies gives the travel andtourism industry an opportunity to confirmitself as a solution, rather than a contributor tothe economical, social and environmentalchallenges facing the future.

One of the main barriers to achieving this goalin the past has been the inherentfragmentation of the industry, and the relativefragility of viable operating margins, especiallyfor the small and medium-sized enterprisesthat make up most of the industry.This hasindirectly led to a deficiency of accountabilityboth by the private and public sectors.Thislack of responsibility towards travel andtourism is leading, at an ever-increasing rate,to an eventual environmental, economic and cultural crisis. In order to avert this crisisall stakeholders including, the public andprivate sectors, NGOs, trade unions andconsumers need to begin to co-operateto make travel and tourism work foreveryone.

The way forward for travel and tourism is tocreate strong partnerships between theprivate and public sectors, NGOs, institutionalbodies, and local communities, in order toensure effective active participation by allstakeholders. Governments are only justbeginning to take a more decisive role indeveloping sustainable, economically successfultourism. But, strong partnerships by all players

Executive summary

8 Executive summary

will bring valuable networking processes,workable policies and logical planning anddevelopment, transforming travel and tourism’ssometimes negative environmental image toone of sustainability and stewardship.

This report has been prepared for the WorldSummit on Sustainable Development (WSSD)in Johannesburg in 2002.WSSD, though aprincipally government forum charting theprogress of sustainable development, has thepotential to bring together the industry,government, non-governmental organisationsand other stakeholders to participate inconstructive dialogue for the future.(1), (2) Inresponse to this challenge UNEP has taken alead in designing and co-ordinating a projectthat will provide sufficient data to measure thefootprint of tourism, identify future trends indevelopment planning and come up withspecific recommendations for actions for eachgroup of stakeholders.

Ten years ago at the Earth Summit in Rio deJaneiro the environment was at the top of thepolitical agenda. Governments were looking athow to stem the tide of consumption by bothdeveloped and developing countries and toreduce the use of natural resources. At thattime the concept of sustainable developmentwas yet to be adopted by the stakeholders.Ten years on, the political climate has changeddramatically and the concept of sustainabledevelopment not only refers to theenvironment but also includes economic, socialand cultural issues.

The following tourism industry report presentsthe perspectives of the travel and tourismindustry in meeting the challenges of the 1992Earth Summit over the past decade and intothe future. It shows that the delicate balancebetween sustainable development and theinevitable economic growth from tourismmust not only contribute to improving qualityof life, but must also be synonymous withenvironmental, social and cultural preservationand protection in order to ensure aprosperous future for the travel and tourismindustry.

This report starts with an overview of theindustry today beginning with a summary ofkey figures and trends. It looks at generalindustry-wide trends in each of the threedimensions of sustainability (economic, socialand environmental), details the implementationmeasures taken since Rio 92 and sets outfuture goals.The following sections cite otherexamples of sustainability issues facing threemajor segments of the global travel andtourism industry, tour operations, hotels andrestaurants and cruise liners, and examples ofefforts to address these issues.

In keeping with the guidelines for industryreports issued by UNEP, the tourism industryreport is built on the general format beingused by the Commission for SustainableDevelopment (CSD) in preparing Agenda 21thematic reports for the inter-governmentalmeetings prior to the WSSD. It endeavours toidentify trends within the tourism industry,gives examples of environmentally sound bestpractices, analyses tourism developmentmechanisms and includes case studies onmanagement and use of natural resources andadvises on how to establish public-privatepartnerships to ensure the future for traveland tourism.

The report itself is the first step towards apublic-private partnership. Thoughfundamentally an industry sector report, itwent through a consultation process with anumber of stakeholders, including variousNGOs and labour union representatives, toensure that the report remained an open,critical self-assessment of the tourism industry.

Partly as a result of this discussion the steeringcommittee decided to express its readiness toembrace a multi-stakeholder dialogue byadding a separate chapter named “Open forDialogue” at the end of the report thatexplains in detail the advice-giving process the

(1) The airline industry, anintegral part of the Travel andtourism industry, at UNEP’srequest, has produced aseparate industry reportwritten by the Air TransportAction Group (ATAG). Overthe last ten years the aviationindustry has dramaticallyimproved its environmentalperformance and is constantlyseeking ways to reduce itsenvironmental impact. It hasbeen one of the sector’sleaders in investing heavily innew technology and inmodern aircrafts that reducepollution.(2) In addition to the Summitthe United Nations hasdeclared 2002 as theInternational Year ofEcotourism (IYE), to promotethe importance of sustainabletourism and support thesector in its movement to amore positive image.

Foreword 9

Foreword

report went through. Although some of thesecomments were not included in the final bodyof the report, the process helped the steeringcommittee to both strengthen and enrich it.

10 Foreword

(3) The report also known as“Our Common Future”highlighted three fundamentalcomponents to sustainabledevelopment: environmentalprotection, economic growthand social equity. For moreinformation:http://www.doc.mmu.ac.uk/aric/eae/Sustainability/Older/Brundtland_Report.html(4) Friedman T.; 2000:TheLexus and the Olive Tree, 1stAnchor Books Edition, NewYork.(5) WTO, 1993:Recommendations on TourismStatistics.World TourismOrganisation. Spain.

Implementation of the three dimensions of sustainable tourism development 11

1 General overviewIn 1992 at the Rio Earth Summit, 178governments approved Agenda 21 and the RioDeclaration. Agenda 21 offered a blueprint forsustainable development, while the RioDeclaration articulated the main principles forsustainable development in the 21st century.Both documents challenged organisations,governments and industries to work towardsmaximum levels of sustainability, defined by theBrundtland Commission in 1987 as‘development that meets the needs of thepresent without compromising the ability offuture generations to meet their own needs’.(3)

Since the summit, the social, political andeconomic world has developed at a rapidpace.The encroaching globalisation of theworld, the increasing necessity and use oftechnology, and its inherent liberalisation, havealtered the way business is conducted and inso doing have affected the relationshipsbetween people and the environment.Theinevitable global shift towards ‘globalisation’ istransforming the workplace, the job market,lifestyles, communities, industries and markets.

The challenge for stakeholders involved in allindustries is to find a balance betweensustenance, prosperity and people’s desire toimprove their financial/material well-being, withthe underlying need for identity, community,religion, home and family.Travel and tourismcan play a vital role in balancing these forces. Itnot only provides the livelihoods for both ruraland urban communities, but has the capacity,when planned, developed and managedproperly, to enhance community relations andbuild bridges of understanding and peacebetween nations.

Travel and tourism also plays a crucial role inencouraging governments to reduce theirbarriers to growth.Thomas Friedman in hisbook The Lexus and the Olive Tree(4) suggeststhat governments need to don a ‘goldenstraight jacket’ in order to allow pure freemarket capitalism and enable both developedand developing countries to achieve fulleconomic growth within a sustainabledevelopment framework.

The first step to achieving this balancebetween sustainable development andeconomic growth for travel and tourism wasin 1996.The World Travel & Tourism Council(WTTC), the World Tourism Organisation(WTO/OMT) and the Earth Council, togetherlaunched Agenda 21 for the Travel & TourismIndustry:Towards Environmentally SustainableDevelopment – a sectoral action plan forsustainable development based on theoutcome of the Rio Earth Summit in 1992. Atthe time it was the only industry-specificadaptation of Agenda 21.

2 Tourism todayThe following definition of tourism wasofficially adopted by the United NationsStatistical Commission in 1993: ‘Tourismcomprises the activities of persons travelling toand staying in places outside their usualenvironment for not more than oneconsecutive year for leisure, business and otherpurposes’.(5)

Both the inter-governmental WTO/OMT andthe private sector WTTC consider the traveland tourism sector to be one of the largest –if not THE largest – in the world, particularly interms of its contribution to the worldeconomy. According to WTTC estimates, traveland tourism achieved the following economicimpact directly and indirectly in 2001:

Part 1: Implementation of the three dimensions of sustainable tourism development

• USD3.3 trillion contribution to global GDP,almost 11% of total GDP;

• 207 million jobs worldwide, over 8% of all jobs;

• USD630 billion in capital investment,almost 9% of all capital investment(6).

This economic activity of the travel andtourism sector was generated by 698 millioninternational tourist arrivals in 2000,representing an estimated 7.3% increase over1999 according to preliminary estimates(7).Thiswas the highest growth rate in nearly a decadeand almost double the increase of 1999 withnearly 50 million more arrivals recorded, whichis approximately what destinations such asSpain or the United States receive in the entireyear. In less than a decade, international touristarrivals are projected to reach one billion(8).

In March 2001,WTO/OMT submitted aconcise report on Sustainable Development ofTourism to the United Nations (UN), in whichit noted that ‘the development of tourism hasbeen characterised by continuing geographicalspread and diversification of touristdestinations.While in 1950 the top 15 touristdestinations, all in western Europe and NorthAmerica, attracted 97% of the world’s totalarrivals, by 1999 this figure had fallen to 62%,with market shares increasing for developingcountries and economies in transition,particularly in south-east Asia, central andeastern Europe, and Latin America.’

The report also noted some of the mainqualitative trends seen in the industry in theform of increased market segmentation, thedevelopment of new forms of tourism –especially those related to nature and wildlife,rural areas and culture – and how suchprogrammes are influencing traditional packagetours.

Clearly, tourists are increasingly selective aboutdestinations and are demanding higher qualityproducts and services. One of the drivingforces behind this trend is the emergence of

an ‘experience-based economy’, a term usedby B Joseph Pine and James H Gilmore in theHarvard Business Review (July-August 1998), todescribe what happens when ‘a companyintentionally uses services as the stage, andgoods as props, to engage individual customersin a way that creates memorable events’.

The travel and tourism industry simultaneouslythrives upon this trend and is threatened by it.Tourism products and services thatdemonstrate ‘greater sensitivity to theenvironment, traditional culture and localpeople at the destinations(9)’ can create such anexperience, whereas tourism in a context ofuncontrolled growth which puts increasingpressure on the natural, cultural and socio-economic environment, risks diminishing thevisitor’s experience. In short, increased marketdemand for experiences can contribute tosocial, economic and environmentalsustainability only if the resulting pressuresfrom growth are properly planned and managed.

The travel and tourism industry is bothreceptive and conscious of the resultingpressures from economic growth and theneed to protect our natural and socialenvironment.The preservation of the tourismproduct – the environmental, social or culturalheritage specific to each country – is the onlyway to ensure a future for everyone.

In response to this increase in recognition ofthe need to safeguard natural resources, agrowing number of travel and tourismcompanies are seeking to create moreresponsible consumer behaviour by using theirproducts and services to educate and informtheir customers. Many multinational companiessuch as Lusotur, British Airways, Japan TravelBureau (JTB),Taj Hotels and Preussag have alladopted ‘corporate citizenship’ programmesthat have created dialogue between thecommunity and the private sector, as well aspromoting sustainable development (seeAnnexe 3).

(6) WTTC, May 2001:TourismSatellite Accounting Research.World Travel & TourismCouncil. London & New York.(7) International arrivalstatistics omit all domestictourism, which often accountsfor more than half of all Traveland tourism (WTTC 2001).(8) WTO, 2001:TourismMarket Trends:WorldOverview & Tourism Topics.Provisional Edition.WorldTourism Organisation. Spain.(9) UNESC, March 2001:Commission on SustainableDevelopment, OrganisationalSession. United NationsEconomic and Social CouncilReport of the SecretaryGeneral. P.2.

12 Implementation of the three dimensions of sustainable tourism development

3 Economic dimensionsTravel and tourism, if utilised effectively, can bea force for positive growth and economicsuccess for both developed and developingcountries. Markets have the potential toenhance lives in a sustainable frameworkthrough providing wealth creation, choice,innovation and competition(10).The travel andtourism industry contains these four elementsthat enable it to be a dynamic market forcefor sustainability in the future. It has thecapacity to increase exports, bring in capitalinvestment, boost an economies GDP andcreate employment.

3.1 Job growthTravel and tourism generates jobs throughoutthe economy, both in companies directlyinvolved in the business and in related supplierindustries such as retail, construction,manufacturing and telecommunications.WTTCestimated that travel and tourism generated203 million jobs – over 8% of all jobsworldwide – in 2000, rising to over 207 millionin 2001.Within a decade, this is estimated toincrease to over 260 million jobs or 9% of allemployment, (see Annexe 1).These jobsemploy a significant proportion of women,minorities and young people and arepredominantly in small and medium-sizedenterprises (SMEs).

SMEs make up the majority of the travel andtourism sector, although the exact percentageis unknown. SMEs encourage entrepreneurs,provide many diverse job opportunities andenable low skills entry for emerging countries.Successful human resource management, inthe shape of training and education, is crucialto achieve the economic prosperity, for bothSMEs and the larger multinational companiesthat can be accrued through tourism. Highlycompetitive destinations are realising thatquality of services and facilities are vital toensure a consistency of tourists to thedestination. On the other hand thefragmentation of the industry and the high

proportion of SMEs has led to unconstructivetraining and protection for employees.

Given the number of low-skilled workers inthe sector, the industry has been criticised foroffering nothing more than ‘hamburgerflipping’ jobs that contribute little to thesustainability of an economy or society.Thetravel and tourism industry is renowned for itshigh turnover, anti-social working hours, lowpay, seasonal employment, instability and lowjob status(11). However, this does not tell thewhole story. Jobs for the Millennium – Mexico, areport produced in 2000 by the WTTC andthe Fundacitón Pro-Educación en Turismo, AC(FUTUR), paints a different picture of thehospitality workforce.While over 36% of theemployees in over 200 companies surveyedwere considered ‘unskilled’, almost a quarterof the jobs at these companies requiredprofessional or managerial competence, andover 45% required some level of skill.

Despite SMEs offering their employeestransferable skills, there is still a considerableabsence of training for these groups.There isa real need for human resource developmentwithin the sector that tackles the issues thatlead to costly effects for travel and tourism.Indeed, more than a third of employerssurveyed reported serious shortages of skilledworkers, which would suggest that real careeropportunities do exist.This has met withindustry recognition of the need for humanresource development that raises theindustry’s profile, increases productivity andprovides sustainable employment(12).

One of the catalysts creating the urgency fortrained, skilled workers within the industry isthe increasing use of information technology.Travel and tourism is reliant on a humanservice, yet is increasingly using technology tofacilitate the sector in competitive pricing.Thegrowth in tourism forecast for the next tenyears, will lead to a greater dependency oninformation technology, which will becomemore important in the future as the industry

(10) Holiday, C., & Pepper, J.;Sustainability Through theMarkets - 7 Keys to Success,World Business Council forSustainable Development, p. 9.http://www.wbcsd.org/projects/pr_marketsust.htm.(11) ILO, 2001: HumanResource Development,Employment and Globalisationin the Hotel, Catering andTourism Sector. InternationalLabour Organisation. Genevap.80.(12) ibid.

Implementation of the three dimensions of sustainable tourism development 13

copes with rapid expansion and sophisticationof the tourism and hospitality supply(13).

Tour operatorsWhile tour operators have a limited numberof staff in some of their receiving countries, ahuge network of activities and jobs across theeconomy depends upon delivering thedemand for tourism.The tour operatorindustries reach many areas of the economysuch as hotel and infrastructure development,transport services, agriculture, informationtechnology, restaurants and entertainment andmedia, education and training, consumption ofpharmaceutical products, clothing, equipment,and medical services.

HospitalityThe hospitality industry contributes to theimportant process of job creation. As a labour-intensive industry, it employs large numbers ofwage earners, whose taxes and disposableincome add to gross domestic output andhelp to create further employmentopportunities. Given that each hotel roomtypically requires one member of staff, everyhotel room built has the potential to create anadditional job.

Cruise linesThe bulk of cruise line employees are fromcountries where employment opportunitiesare limited and training is scarce.The industryprovides the opportunity to travel, freemedical care and upward mobility, particularlyfor women from developing nations.

3.2 Tourism contributions to the economyIn order to achieve sustainable economicgrowth, the travel and tourism sector needs toreduce social, economic, environmental andcultural barriers. Some of the major obstaclesto this growth are the lack of infrastructure,environmental degradation and fragile linkagesthat weaken a country’s tourism potential(14).One way to address these barriers is for thesector to foster tourism investment through

public-private sector partnerships that notonly enable a country to grow economically,but retain the essential social, cultural andenvironmental assets that make each country aunique product.

Public-private sector co-operation andplanning are also essential to creatingsustainable employment in the tourismindustry, and to this end the private sector hasfought for recognition of its true contributionto job growth and economic development.Hitherto, the industry had been disadvantagedby a lack of data reflecting its full economicimpact. Only recently has the methodologyknown as Tourism Satellite Accounting (TSA),pioneered by WTTC,WTO/OMT and others,been developed and accepted by governmentsas a means for fully measuring travel andtourism’s contribution as an economic activity.

TSA is based on a ‘demand-side’ concept ofeconomic activity (i.e. the economic activitiesof visitors and travel companies), as tourismdoes not supply a homogenous product orservice. Unlike traditional industries(agriculture, electronics, steel, etc.), travel andtourism is a diverse set of industries offering amultitude of products (consumer and capitaldurables and non-durables), and servicesranging from airline and cruise ship fares andaccommodations, to restaurant meals,entertainment, souvenirs and gifts, immigrationand park services, recreational vehicles andautomobiles, aircraft manufacturing and resortdevelopment.

By using input/output modelling,TSA is able todifferentiate between travel and tourismindustry supply and economy supply, includingthat portion of supply which it imports fromabroad. Additionally, it breaks down the supplyside accounts into direct and indirect impactsand the individual elements of GDP (wagesand salaries, transaction taxes, operatingsurplus, depreciation and subsidies).These dataensure governments have a broaderunderstanding of the impact of travel and

(13) Buhalis, D.; 1994:Information andtelecommunicationstechnologies as a strategictool for small and mediumtourism enterprises in thecontemporary businessenvironment” In Tourism:TheState of the Art. Ed Seaton, A.V., et al.; John Wiley & Sons.Chichester p. 254.(14) Hawkins, D.E., Finucane,E., Sharp M.; (forthcoming).Reducing Barriers to TourismInvestment in DevelopingCountries. InternationalInstitute of Tourism Studies.The George WashingtonUniversity. USA.

14 Implementation of the three dimensions of sustainable tourism development

tourism, in particular the implications of policyfor the travel and tourism economy(15).

TSA data also reiterates the fact that traveland tourism has the potential to be a catalystindustry for emerging countries to kick-starttheir economies, offering many opportunitiesthat are not available in other industries. Forexample, the rise in cultural, heritage andwildlife niche market tourism, in developingcountries, is becoming a viable alternative forcommunities that want to move away frommono-culture farming, which can not onlydestroy sustainable patterns of agriculture andtraditional fertility cycles but has beenassociated with negative changes in socialstructures and economic relationships(16).

Annual research undertaken by WTTCdemonstrates that the impact of travel andtourism on the whole economy is muchgreater than the size of the industry itself. Forevery dollar spent on travel and tourism, afurther dollar and a half is typically contributedto GDP in other sectors of the economy.

Tour operatorsTour operators can have a significant impactupon economies. Whereas the Balearic Islandswere the poorest province in the whole ofSpain in 1950, by the year 2000 it was therichest – almost entirely due to organisedtourism. Other countries where travel andtourism has had a positive impact on theeconomy are the Maldives, Mexico andTurkey.

HospitalityThe hotel industry has considerable growthpotential in those nations and regions that arejust beginning to develop their economies andimprove their performance, because the totaloutput of the hotel industry is closely tied tothe variables associated with economicdevelopment.These variables include basicinfrastructure and levels of gross domesticoutput, employment, and education of theworkforce.The hospitality industry also

produces a ‘multiplier effect’ whereby moneyspent by hotel guests travels through acommunity generating further revenue.

Cruise linesThe cruise line industry is a significanteconomic contributor worldwide andparticularly to the United States economy,leaking into industry, agriculture, airlines, travelagents, food and beverage suppliers and otherservice sectors. It is also a booming industrythat is forecast to grow to 20.7 millionpassengers by 2010.

4 Social dimensionsTourism can be both a force for thepreservation of or, conversely, a threat to acommunity’s natural and cultural heritage. A1999 report Sustainable Tourism and CulturalHeritage published by the World Bankunderscores the symbiotic nature of therelationship.The mutual dependence that existsbetween tourism and cultural heritage isbecoming more evident.While culture heritagecreates a foundation for tourism’s growth,tourism has the power to generate funds thatmake conservation possible. Cultural heritageloses much of its meaning without an audience,and a society participating in and benefitingfrom it.Without sustainable management,tourism loses its potential for growth.

With the growing interest in culture andcommunity, tourism is finally being recognisedas an industry that can boost rural economies,create entrepreneurs and jobs and helppreserve indigenous cultures. ‘Above all,tourism offers a better life not just for thosewho make money, but for those who paymoney to enjoy it’.(17) For example, trekkingtourism has led to the transformation of thetraditional subsistence farming of the Sherpasof the Khumbu region into a cash economythat has generated income, jobs and a betterstandard of living.(18)

(15) WTTC, 2000 Research:Overview and Definitions.World Travel & TourismCouncil. London & New York.(16) Killeen, D., Rahman, A.;2001: Poverty andEnvironment. InternationalInstitute for Environment &Development. London.(17) Elliott, M.; 2001: “Lie inthe Sun - and Change theWorld”,Time Magazine, May21, 2001, p. 63.(18) Tej Ver Singh.; “Keep theSharks Out of the Mountains”,Our Planet,Vol. 10 No. 1 p. 22.

Implementation of the three dimensions of sustainable tourism development 15

One of the main challenges, therefore, for allstakeholders involved in travel and tourism,including local authorities, NGOs andbusinesses, is to maintain an optimal balance toensure sustainability. Otherwise, in destinationswhere the natural and cultural heritagedeteriorates, the economy will be put at risk astourists migrate to better-preserveddestinations.The Addo Elephant National Parkin South Africa’s Eastern Cape Province aimedto integrate community tourism initiatives withmainstream tourism. A multi-stakeholderdialogue process was adopted including allprivate and public sector voices.The outcomewas that local groups have the potential to adddiversification to a primarily wildlife destinationand the private sector has the key for effectivemarketing and business development skills(19).

Research suggests that following the trendsalready mainstream in other economic sectors,social responsibility and corporate citizenshipare expected to become in the future issuesof strong concern requiring a response fromthe tourism industry as a whole, as well as atcorporate level(20).The concept of ‘corporatecitizenship’ is now being adopted by many ofthe key leaders in the private sector of traveland tourism and is emerging as a central issuefor business companies(21).

Corporate citizenship recognises the need tocreate a balance between all stakeholders’needs, society’s different interests and thesustainability of the natural environment with agreater focus on governance andaccountability. It is about taking responsibilityfor, and doing as well as possible in terms ofsocial, environmental and economicperformance given competitive opportunitiesand constraints.The business case andcorporate citizenship have become joined incurrent debate about the changing role ofbusiness in society(22).

The Award for Responsible Capitalism 2001 –sponsored by First Magazine(23) – waspresented to Marilyn Carlson Nelson, chair

and CEO, Carlson Companies and highlightsthe importance of corporate citizenship formultinationals. Profit can serve many functions,and within travel and tourism modern businessleaders are using it for good purposes.Multinationals can help contribute to thewealth and welfare of us all, and increasinglyleading players in the travel and tourismindustry are recognising the importance of thecontributions they can make to thecommunities within which they work.

Corporate citizenship balances the interests ofthe economy with those of public policy-makers, individuals and groups in civil society. Itcan not only improve the quality of life fordistressed communities, but can also generatetangible returns for the bottom line.Withintravel and tourism, corporate citizenship isbecoming an increasingly important conceptfor the private sector.

Tour Operators InitiativeThe Tour Operators Initiative (TOI) –(http://www.toinitiative.org) launched in March2000 is a network of tour operators that havejoined forces to improve their practices, aswell as raise the awareness of the industry.TOIacts as a platform to develop ideas andprojects to address the environmental, social,economic and cultural aspects of sustainabledevelopment within the tourism sector.Developed by tour operators, for touroperators, it has the support of UNEP,UNESCO and WTO/OMT. The members ofTOI commit to:

• adopt practices with regard toenvironmental, social-cultural and economicimpacts of their activities internally andwhen forming business relationships withpartners, suppliers and subcontractors;

• encourage and seek co-operation with allstakeholders at destinations to developintegrated planning and management ofdestinations;

• create awareness among their customerstowards the natural, social and cultural

(19) For more information onthis project please go tohttp://www.parks-sa.co.za/addo/ganp.html(20) Tepelus C., 2001: Ethicsand Corporate SocialResponsibility in Tourism.International Institute forIndustrial EnvironmentalEconomics.(21) BEST, 2000.; Doing Goodand Doing Well: Making theBusiness Case for CorporateCitizenship. Research report1282-00-RR. USA.(22) ibid p. 7.(23) First Magazine focuses onbusiness strategy andgovernment policy making. Itsmission is to bring decisionmakers together and it seeksto create businessopportunities and to enhanceglobal dialogue betweenbusiness, finance andgovernment.

16 Implementation of the three dimensions of sustainable tourism development

environments they visit by promoting, intheir communication and advertising,behaviours and activities compatible withthe principles of sustainable development.

HospitalityAs a major component of travel and tourism,the hospitality industry has a vested interest inprotecting the environment – its key resource– and most hotels are likely to take amultitude of environmental actions that extendbeyond the control of any single monitoringagency. Self-regulation appears to be the mostviable course of action for this industry,whether in the form of in-houseenvironmental audits, the adoption of anenvironmental management system, and/orapplication for eco-certification.

Cruise linesICCL members adhere to internationalconventions that have set a global benchmarkfor environmental and safety standards. In1999, a forum on the situation of wastemanagement and disposal practices led to anumber of major initiatives being undertakenby the industry in potential problem areas.Thecruise line industry has some of the strictestsafety regulations and has one of the mostenviable safety records. In July 2001, ICCLmembers adopted standards on environmentalmanagement.

5 Environmental dimensionsThe travel and tourism industry has come farsince the Earth Summit in Rio de Janeiro, in1992, when the impact of industries on theenvironment was high on the political agenda.The increasing numbers of travellers and therise in package tours during the 1980s werecausing a valid concern amongenvironmentalists.

WTTC, with WTO/OMT and the EarthCouncil, in response to the scrutiny with whichtourism was judged, collaborated and producedAgenda 21 for the Travel & Tourism Industry.Thispublic-private sector effort was designed to

ensure that as travel and tourism grew globally,its influence would not have an undesirableimpact on the environment(24). Indeed all areasof travel and tourism have over the last decadeimplemented many individual environmentalschemes and programmes, not for-profit fundsand foundations all over the world(25).

Recently there has also been an increase inconferences on the environment hosted bygovernments and by private sector companies,which are highlighting the responsibility of boththe public and private sector to protectnatural and cultural heritage and emphasisethe importance of environmental sustainability.If tourism is not planned and managedcarefully, it can overwhelm the very assets withwhich it attracts visitors to the destination.

Examples of tourism expansion, that haveignored the local environment, are well-known:tourism facilities built on pristine land withoutprior consultation with the local community;golf greens that use up scarce water supplies;water pipes and infrastructure that feed majordevelopments but often ignore the localvillage.With the rise of mass tourism comesthe threat of destruction of fragile eco-systemsand coastal regions, local culture, and thedepletion of natural resources.

Conversely, tourism can generate thenecessary revenue to protect and preservebiodiversity and act as a force forenvironmental protection especially indeveloping countries. Game parks and naturepreserves are centres of institutional strengthand can act as a focus for tourismdevelopment in rural areas(26).Tourism helpsgenerate resources to maintain theseprotected areas, as illustrated by the RoyalChitwan National Park in Nepal(27), the MasaiMara in Kenya(28) and the rainforests of CostaRica(29). Not only can it help to preserve theenvironment, but profits have a greaterpotential to reach local and rural communities,compared to other sectors(30).

(24) This publication is in theprocess of being updated toprovide information oncurrent issues and debates onsustainable developmentwithin the Travel and tourismsector.(25) For more information onthese initiatives: BusinessEnterprises for SustainableTravel (BEST),www.sustainabletravel.org;EcoNett, www.econett.org;Eco-Tip, www.eco-tip.org; haveextensive databases recordingmost of these private sectorinitiatives.(26) DFID, 1999: Changing theNature of Tourism.Department for InternationalDevelopment. London.(27) This has been cited as anexample of successfulcommunity basedconservation by national andlocal governments. In 1997legislation was passed to share30-50% of revenues earnedon tourism taxes with localcommunities, with thecommunities being part of thedecision-making process.Thisfinancial contribution fromtourism direct to the localarea not only brings manysocial and economic benefitsto the community but alsohelps to ensure participationof conserving the park’sdiverse biological resources.For more informationhttp://www.bcnet.org/learning/ar97/97_chitwan2.htm

Implementation of the three dimensions of sustainable tourism development 17

The new concept of eco-tourism or naturetourism is experiencing faster-than-averagegrowth. Eco-tourism alone contributed $154billion in receipts in 2000 and is growing 20%annually compared with just 7% for tourismoverall(31) in an already booming industry, andreflects those consumers who are aware ofthe issues facing travel and tourism(32).Thereare indications that consumers are alsobeginning to influence businesses, as theybecome more aware of the choices availableto them, and of this rapid growth in the eco-tourism niche market. However, eco-tourismalone is not the answer to addressing theenvironmental problems facing the industry(33).It also remains to be seen how far consumershave the willingness to encourage businessesto adopt more sustainably-developed tourism,especially if it means paying higher prices.

6 How the industry hasresponded to sustainabletourism developmentDialogue between stakeholders in both theprivate and public sectors, has led to theestablishment of global voluntary initiativesthroughout the last decade.These initiativeshave taken various forms and represent allsectors of the travel and tourism industry.

Although there has been an encouragingexplosion of such schemes, adoption of themby the industry is as yet limited. It has provedparticularly difficult to encourage SMEs toparticipate in sustainable good practice. Asmall sample of examples of these initiativesare given in the following paragraphs.

AwardsA number of private sector travel and tourismcompanies, as well as industry associations,present annual awards in recognition ofoutstanding actions on behalf of theenvironment.These include the AmericanSociety of Travel Agents and IH&RA. A numberof these receive sponsorship from private

sector companies such as the AmericanExpress Company.

Codes of conductIn 1992 the Pacific Asia Tourism Association(PATA) introduced its Code for EnvironmentallyResponsible Tourism to strengthen the principlesof conservation in the region, solicitingmembership in its Green Leaf programme.

Addressing one of the most sensitive socialimplications of tourism development, a multi-stakeholder, international public-privateinitiative has recently drafted the Code ofConduct for the Protection of Children fromSexual Exploitation in Travel and Tourism(http://www.thecode.org).

The Africa Travel Association’s ResponsibleTraveller Guidelines and the JapaneseAssociation of Travel Agents’ Declaration ofEarth Friendly Travellers are just two examplesof the many industry codes aimed at educatingand influencing their customers.

Certification, education and awarenessprogrammes• Green Globe 21

(http://www.greenglobe21.com). As afollow-up to the Earth Summit, in 1994WTTC set up Green Globe. Now anindependent private sector company,Green Globe 21 is an Agenda 21-basedindustry improvement programme, whichprovides guidance material and acertification process linked to both ISOstandards and Agenda 21 principles,throughout the world.

• Dodo (http://www.cyberdodo.com).TheCyberDodo programme, developed byCyberDodo Productions and supported byWTTC and by the United Nations HighCommissioner for Human Rights, isdesigned to raise awareness among adultsand children of important issues concerning the environment, human rightsand children’s rights.The programmes have already been shown in more than 60 countries.

(28) On June 12th a privatemanagement firm called theMara Conservancy took overa third of the reserve’s totalarea, 520 square kilometres.The new custodians haveintroduced a moretransparent approach andworking with the local people,rangers and the local councilwill ensure that tourism profitfilters down to the Masaipeople and other localcommunities. For moreinformationhttp://www.igreens.org.uk/masai_mara_conservancy.htm (29) The most notablemultinational effort topreserve the rainforests inCosta Rica is the PaseoPantera initiative. It is a fiveyear $4 million projectdedicated to preserving thebiodiversity and enhancingwildlands management inCentral America.The projectworks in partnership with allstakeholders to achievesustainable development ofthe rainforests. For moreinformationhttp://www.american.edu/projects/mandala/TED/costtour.htm.(30) Roe, D., Urquhart, P.;2001: Pro-Poor Tourism:Harnessing the World’sLargest Industry for theWorld’s Poor. InternationalInstitute of Environment &Development. p. 4. London.

18 Implementation of the three dimensions of sustainable tourism development

• Green Key. Green Key, Denmark, a schemeoperated by the Hotel, Restaurant andLeisure Industry Association (HORESTA) inthat country, applies 78 criteria to be metby properties seeking certification.

Eco-labelsUNEP’s comprehensive publication on Eco-labels in the Tourism Industry examines this formof voluntary self-regulation in the tourismindustry with the aim of helping applicants tounderstand the nature of eco-labellingschemes.

These private sector strategies are fastbecoming an essential part of the process ofsustaining natural and cultural heritage becausethe industry has a direct impact on localcommunities in which they operate. Some ofthese programmes not only provide valuablefunds to support poorer host communities,but also help encourage protection of theenvironment and natural resources that often get depleted by the different sectors of the industry.

7 Future challenges and goalsTo achieve the goals and challenges set for thetravel and tourism industry as it continues togrow throughout the coming decades, willrequire a strong and co-operative partnershipbetween government departments, nationaltourism authorities, international and nationaltrade associations, trade unions and the traveland tourism private sector. All stakeholdersnow need to share the responsibility for traveland tourism’s future and need to deliver thefollowing to ensure its sustainability(34):

Governments need to:

• integrate travel and tourism policy,especially the environment, into broadergovernment policies;

• set up realistic capacities withinsustainability frameworks, which have beenset in consultation with industry and otherstakeholders;

• create incentives for the travel and tourismindustry backed up where necessary byeffective regulation;

• be committed to the controlled expansion,where appropriate, of infrastructure;

• apply environmental taxes fairly and non-discriminatorily, where needed.They shouldbe carefully thought out to minimise theirimpact on economic development, andrevenues should be allocated to travel- andtourism-associated environmentimprovement programmes;

• set up mechanisms to support SMEs in theadoption of sustainable good practice;

• design policies creating incentives forcorporate social responsibility in tourism,favouring a sensitive and engaging approachtowards the local communities at thedestinations, especially in the developingcountries.

Public-private partnerships need to:

• plan and develop infrastructure with along-term view and within a referenceframework based on Agenda 21;

• implement indicators and environmentalimpact assessment tools to enablesuccessful and effective local managementand appropriate development;

• agree on common standards and tools toenable the measurement of progresstowards achieving sustainable development;

• fund and develop contemporary researchinto sustainable tourism. Issues requiringattention include design, carrying capacity,tour operator activities, environmentalreporting, and auditing and environmentalimpact assessments, socio-economicsustainability of the tourism businesses.

International bodies need to:

• co-ordinate environmental action to beundertaken by all sectors of the travel andtourism industry, at an international level;

• review existing voluntary initiatives toimprove the quality of reporting, their

(31) Mastny, L.;December2001:Travelling Light - NewPaths for International Tourism.Paper 159,WorldWatchInstitute. p. 37.(32) Evidence suggests thatprice rises will be moreacceptable when there areclear signals that ticket salesdirectly contribute to the areabeing visited., DFID, 1999:Changing the Nature ofTourism. Department forInternational Development.London.(33) Mastny, L.;December2001:Travelling Light - NewPaths for International Tourism.Paper 159,WorldWatchInstitute. P.47.(34) Based on the outcomesfrom United NationsCommission on SustainableDevelopment 7th SessionNew York, 19-30 April 1999.

Implementation of the three dimensions of sustainable tourism development 19

transparency and credibility, and theassessment of their contribution tosustainability;

• ensure that all funding, from international,national and local funding bodies, should bedependent on sound environmentalpractice;

• encourage and support multi-stakeholderprojects aiming for sustainable tourismdevelopment;

• set up mechanisms to support theadoption of sustainable good practices bySMEs.

Private sector companies need to:

• commit to place sustainable developmentissues at the core of the managementstructure;

• develop and more widely applycertification criteria to industry initiatives;

• innovate processes and applicationsthrough new technology;

• make a commitment to the education andenvironmental training of staff;

• encourage corporate citizenship as thestandard for private sector companies;

• be willing to engage in multi-stakeholderdialogue.

8 The way forwardIn recent years the UN has begun to maketravel and tourism a priority in the sustainabledevelopment debate. In 1999,WTTC andIH&RA were designated by the UnitedNations Commission on SustainableDevelopment to represent the industry in amulti-stakeholder dialogue at its seventhsession (UNCSD7). It was concluded that‘voluntary measures developed with multi-stakeholder participation, mutual trust andrespect, transparency, monitoring, andassessment and verification were seen as mostlikely to generate confidence and supportfrom all parties(35)’.

The travel and tourism industry increasinglyrecognises the need for protecting culture,heritage and the environment and thisresponsibility must be shared by allstakeholders. It also needs to be balanced by aproportionate recognition that travel andtourism has the potential to bring social andenvironmental, as well as economic benefits.This would give developing countries thepossibility to attain the full economic potentialtourism can give.This must be coupled withsufficient training in management skills andeducation for local people.The humanresources issue will be of much concern in thenext few years because, without substantialand skilled human capital, the tourism industrycannot be productive in the future.

Adequate planning and development is alsovital so that fragile eco-systems and scarcenatural resources can be utilised effectively andprotected for future generations. Moreover,the prevailing issues facing infrastructure arebecoming more acute with the continuingincrease in passenger travel. Governmentalinfrastructure constraints pose a critical barrierand can jeopardise anticipated economicgrowth and job creation with knock-on effectsto all sectors of the community.Thefundamental infrastructure issues such asairport congestion, air traffic management,sources of capital investment, regulation andpolitical support, and institutional reform facingthe sustainable development and growth oftravel and tourism, concern both the privateand public sectors.

Governments are beginning to take a moredynamic role in developing sustainable andeconomically-successful tourism, but thereurgently needs to be more proactiveparticipation from government.With effectivenetworking processes, legitimate policies,planning and development from government,tourism can alter its adverse environmentalimage to one of sustainability and stewardship.

(35) UNCSD, 1999: UnitedNations Commission onSustainable Development 7thSession New York, 19-30 April1999.

20 Implementation of the three dimensions of sustainable tourism development

The many and varied voluntary industryinitiatives, ranging from education tocertification, are an important and imperativepart of the ongoing process working towardssustainable development. As well as theseinitiatives, the industry is already doing muchto improve its performance in terms ofsustainable development.

Tour operatorsTour operators are looking at implementingstrategies that combat both the indirect, aswell as direct, impacts that tour operationshave on the environment and the communitieswithin which they operate. Direct issues thatare being addressed include better informationto consumers, ensuring that sustainabledevelopment concepts, procedures andpractices are included in training programmes,and greater adherence to tour operator codesof conduct. Indirect impacts being addressedare the monitoring of subcontracted suppliersin environmental performance and havingmore involvement with other stakeholders inthe sustainable development process.

HospitalityHotels from all geographic regions aresuccessfully implementing strategies in favourof sustainable development. Key areas ofprogress include rising levels of awareness that using resources in an efficient andenvironmentally-sensible manner can positivelyimpact the bottom line, and the recognitionthat transparency and reporting make forgood business practice.

Cruise linesAs global leaders in the maritime industry, themembers of ICCL strive to preserve localenvironments and cultural heritage, and workto generate and infuse local economies withsustainable income.Through public-privatesector alliances ICCL devises solutions to all ofthe challenges facing the cruise lines sectors,and works in partnership with a number ofpublic bodies and environmental agencies tofind productive solutions to the issues thatconfront the industry on a daily basis.

The need to maintain a sustainable travel andtourism sector is now becoming an urgency.WTTC wants to share a vision of the worldwhere travel and tourism benefits everyone,making a positive, growing and sustainablecontribution to the prosperity, understandingand well-being of people, shared by those whotravel and the communities they visit, and theirsocial, cultural and natural environments.

WTTC believes the way forward to achievingsustainable development for industry leaders isto lead by example and to practise corporatecitizenship and responsible capitalism. For theindustry sector to implement sustainabledevelopment initiatives successfully thereneeds to be a multi-stakeholder processwhereby all stakeholders take responsibility forthe future of travel and tourism.The industry isboth willing and ready to undertake thisdialogue and this report is one of the firststeps to achieving this.

Implementation of the three dimensions of sustainable tourism development 21

22 Tourism

9 General overview9.1 Role and influence of touroperatorsThe outbound tour operator has emerged inthe past 50 years as a useful means ofdistributing leisure air travel andaccommodation services to consumers.Consumers in one country wishing to visitanother require information and want to booktravel arrangements in advance.Tour operatorsobtain information, make contracts withsuppliers of services, and publish their holidayoffers in brochures, which are distributeddirectly to consumers or by travel agents.

Tour operators judge overall demand and theexpected demand for each destination andseek to satisfy that demand if it can beaccomplished profitably.Tour operatorsassemble the component parts of holidays.Another report covers air travel and othersections in this report cover the hospitalityand cruise lines industry.There is limited valueadded as reflected in profit margins thatrepresent 1% to 2% of turnover.

Present in substantial numbers in Europe(approximately 5,000) and in the UnitedStates, Canada, Japan, South Korea, Russia,Australia, New Zealand, South and LatinAmerica, tour operators remain small innumber where tourism is less developed.Globally, they represent around 12% ofinternational arrivals,(36) while in Europe theyaccount for 35% of leisure air holidays.There are five substantial European outboundtour operators, the remaining 4,995 beingSMEs employing five to 100 people, whichoften cater for specialist interests or lowvolume destinations.

The five large companies have integratedactivities (travel agencies, tour operations,airlines, hotels, cruise ships and ground

handling), but these are not exclusively used bythe one integrated organisation. For example,owned airlines are used for some of the flightrequirements, but large tour operators canhave contracts with more than 150 airlinesand owned airlines, and contract seats out tonon-owned tour operators.

10 Economic dimensionsTour operating employs relatively few peopleacross the world (a few tens of thousands),but their activities can stimulate hotel andinfrastructure development.These includewater, sewerage, airports, roads etc, transportservices, agriculture, information technology,restaurants, entertainment and media,education and training, consumption ofpharmaceutical products, clothing, equipment,medical services, excursion venues and publicadministration concerned with policy-making,marketing and management of tourism.

While tour operators have a limited numberof staff in some of their receiving countries, ahuge network of activities and jobs across theeconomy depend upon delivering the demandfor tourism.The marketing efforts of touroperators are what the suppliers of servicesand governments look for.

The countries visited are 80% intra-regional(e.g. Germany to Spain, Australia to Thailand)and 20% long-haul (e.g. Europe to theCaribbean, Japan to Europe, the United Statesto Far East).(37)

Tour operators can have a significant impactupon economies.Whereas the Balearic Islandswere the poorest province in the whole ofSpain in 1950, by the year 2000 it was therichest – almost entirely due to organisedtourism.The Maldives is no longer to beclassified as a ‘lesser developed country’ thanksto the economic impact of tourism,

(36) Source: IFTO estimates.(37) Source:WTO tourismstatistics

The tour operator industry 23

Part 2: The tour operator industry

particularly organised tourism. Cancun inMexico had a local population of 600 beforetourism arrived. It now provides income for600,000 and support for ten times thatnumber through organised tourism fromNorth and South America, and Europe.(38) InTurkey, tourism revenues reach 30% of totalcommodity exports, most attributed toorganised tourism.(39)

Foreign exchange received by countries throughtour operators takes the form of payments tohotels and ground handlers as well as taxes,duties and charges. In addition, consumersspend money outside the hotel on the‘complementary offer’.This amount can varyfrom 150% of the hotel cost in countries suchas Spain to virtually zero in those developingcountries that offer little to see, do or buy.(40)

Outbound tourism demand is affected byconfidence in economic conditions andsecurity as well as perceptions of discretionaryincome. Leisure outbound travel has beengrowing at around one and a half times thegrowth in GDP and is not highly volatile,unless there are safety concerns. Fluctuationsin tourism revenues in receiving countries are more marked due to consumerperceptions of the relative safety andattractiveness of destinations, as well aschanges in relative price.

11 Social dimensionsThe ability to travel and to witness othercultures not only brings prosperity to thereceiving country, but also fostersunderstanding and tolerance in the visitor.Thetour operator offer – based on high volumes,bulk buying and low prices – has providedaccess to travel to millions of people.The touroperator’s main contribution has been toincrease tourism volume in many destinationsthat would otherwise have had little tourismdevelopment. However, the way in whichdifferent countries and destinations have dealtwith the effects of this increase varies widely.

11.1 Influences of increased tourismon citizens of receiving countriesBy far the most positive influence of tourismhas been on the citizens of the receivercountries, where the foreign influx hasprovided income for much greater socialchoices than have hitherto existed andaccelerated the process of modernisation andopenness. As local people have become richerthrough tourism, countries dependent oninternational tourism have found themselvesgenerating a greater number of domestictourists.The effect of this phenomenon inSpain, for example, has been the restoration ofa strong Spanish identity – both cultural andculinary – which had been weakened.Touroperator distribution has created jobs inoriginating countries, particularly for women intravel agencies, airlines, airports and hotels aswell as for tour operators themselves.

Negative social consequences have been felt ina number of different and significant ways.The‘homogenisation’ of global products andservices devoid of local identity has beenexacerbated by tourism movements.There isno doubt that people brought for a short timeto another country seek to retain their ownhabits and practices – while host communitiesadapt to satisfy visitor tastes in order to makemoney from them.Those with vulnerablecultures are likely to suffer most and localdisaffection is most keenly felt where there arehigh densities of tourists. Reaction tends tocome from regional, religious or culturalentities attempting to preserve key featuresthat provide a manifestation of a local identity.

Overall, the opportunity for jobs in tourismand tourism-related activities in receivingcountries have been very positive, as has theopportunity for training and development.However, a major market failure has been theinability to develop and diversify thecomplementary offer (things to see, buy or dooutside the hotel) that would provide extrajobs and income in the community and allowmonies to be distributed more widely and

(38) Source: Mexican Ministryof Tourism(39) Source:TURSAB(40) Source: IFTO estimates

24 The tour operator industry

deeply This remains a significant opportunity toalleviate poverty in some developing countries.

In countries where the money economy islimited and unemployment high, tourism canbe seen to benefit the few who are directlyinvolved in tourism, leaving workers in theinformal economy marginalised and disaffected.In addition, children vulnerable to sexualexploitation have found themselves targetedby a small number of paedophiles.

11.2 The role of tour operators in thecommunity.Tour operators have many sub-contractedsuppliers that are expected to deliver qualityservices under some form of supervision.Theyrely upon close relationships with peopleworking in the destinations – at airports,hotels, restaurants, excursion venues, publicadministrations, medical authorities, etc. – forwithout them, holidays could not be delivered.Tour operators have resident staff, or those oftheir local agents that maintain theserelationships and are expected to becomefamiliar with concerns expressed by localcommunities.Where good qualityaccommodation for customers is in shortsupply, many tour operators co-financedevelopments on a short-term basis.

Tour operators act as a bridge betweensuppliers, customers and the country visited,providing information about the destination,safety and cultural sensitivity (dress codes, etc).With smaller guided tours, customers oftenseek greater detailed interaction and are veryaware of their social and cultural responsibilities.

11.3 The role of the IFTOThe International Federation of Tour Operators(IFTO) acts as the spokesperson for touroperators (and their clients) with municipalities,regional and national governments andinternational organisations such as theWTO/OMT, UNCTAD,WHO, UNESCO,UNEP, and the EU. Issues range from thebroadest level (e.g. Code of Ethics of Tourism

at WTO/OMT) to the narrowest (e.g. provisionof clean water to particular hotels or districts).Its dealings with the public administrationinvolve ministries of foreign affairs, home affairs,public works, environment, transport, tourism,education, health and finance.

In the private sector, all the actors in tourismand related to tourism are involved indiscussions. As tourism is a horizontal activity, co-ordination, consultation andpartnerships (public-public, private-private andpublic-private partnerships) are essential for itto be successful.

12 Environmental dimensionsThe direct environmental impact of touroperators is relatively limited, but there areways in which they can have a positiveinfluence.Tour operators communicate withcustomers mainly through paper-based media,therefore brochures need to be usedefficiently and to be sourced from renewableforests and recycled whenever possible.Offices need to consume as little energy aspossible and customers need to beencouraged to make choices and to behave inways that are socially and environmentallyacceptable.

In considering the indirect effects of touroperators encouraging people to travel, adistinction needs to be made betweendeveloped and developing nations whenconsidering environmental action.

Developed nations have the technical andfinancial resources to monitor and enforceenvironmental standards in tourismdevelopment and, in many cases, the politicalwill to act as well as a body of planningregulations. In these circumstances, should aproblem arise (e.g. an individual hotel failing toperform at the level required) a basis fornegotiation exists between the governingauthorities and the local tourism actorstogether with IFTO.

The tour operator industry 25

Developing countries may have priorities thatare more pressing than sustainabledevelopment in tourism.There may be neitherthe political will nor the technical or financialresources to monitor environmentalperformance. In these situations it is importantfor the tour operator and other tourismactors to adopt self-regulation. For example, inthe Antarctic where no legal framework existsand the environment is highly vulnerable, touroperators and cruise ships have signed up to adefined code of conduct.This is weaker than alegal solution as no effective sanctions can beapplied to those not adhering to the code.

12.1 Energy consumption/emissions Tour operators encourage people to travelfrom their local airport, which usually means ataxi or a car journey. (A taxi journey is twiceas long as that by the owner-driver, anddoubles energy consumption/emissions).

Airports have been extended as a result ofconsumer demand – larger aircraft are nowused.Tour operators seek out the lowest seatmile costs – this requires in turn, high-densityseating and fuel-efficient modern aircraftoperating at high load factors.The resultingemissions of noise, CO2 and NOx perpassenger are lower than for other forms ofaviation, but nonetheless would not haveoccurred had customers stayed at home.

Customers are usually transported from thedestination airport to the hotel by moderndiesel-engined or gas-powered coaches whichcan carry up to 58 people and have lowseat/mile CO2 emissions.These vehiclesreduce the incidence of car traffic by morethan 25 times. However, in many developingcountries these are not available; LPG (liquidpetroleum gas) or CNG (compressed nitrogengas) distribution is extremely limited.

While at the hotel, visitor energy consumption/emissions due to air-conditioning is broadlyequivalent to energy consumption/emissionsthrough central heating at home unless, as in

Cyprus, all tourist establishments are requiredto install solar panels, in which case energyconsumption by tourists will be less than thatby residents. In beach destinations wheremovement outside hotels is limited toexcursions, consumption/emissions during atwo-week stay are likely to be much less thanstaying at home.

12.2 Water consumptionThe huge majority of tourists fly from colderto warmer climates in countries with beachesnearer the equator, which get less rain andhave less available water. Although tourismuses very little water compared withagriculture, there is a significant increase in theconsumption of water as a result of tourism.De-salination plants have been installed insome areas of high-density tourism wherethere are water shortages. Hotels pay forwater consumption by volume and this isreflected in prices to consumers. Many hotelsemploy systems (including incentives forcustomers) to reduce consumption of waterand energy consumption and waste, but thisremains a major issue in much of thedeveloped and developing world.

12.3 Waste managementSewerage systems are expensive and ‘hightech’ systems are required to avoidcontamination of seawater.These may befunded through central/local government andthrough multi-lateral sources. Hugeinvestments have taken place in coastal areasof high tourism density, but much remains tobe done. Likewise, solid waste is a major issue for many municipalities operating intourism areas.

12.4 Planning regulationsWhere construction of airports, roads, hotelsand other infrastructure is concerned, planningregulations that determine maximum spreadand density are required to maintain anappropriate balance.Where local governanceis weak there are frequent examples of overdevelopment.The degradation of heritage sites

26 The tour operator industry

that suffer from visitor congestion is anotherissue, which has yet to be dealt withsatisfactorily.

13 Conclusions13.1 Key areas of progressIn the past ten years, a lot of progress hasbeen made. Firstly, information to consumersby tour operators has vastly improvedalthough there are still no objectiveinternational measures to indicate toconsumers the environmental performance ofsub-contracted suppliers or destinations. Aplethora of eco-labels exist, but none withglobal credibility. Secondly, tour operators havedeveloped and attempt to comply with codesof conduct, with some success.

The response of tour operators to globalwarming issues relating to emissions has beento encourage zero emission enginemanufacture and ensure that emissions perpassenger are the lowest currently availableeconomically by using modern fuel-efficientaircraft and coaches with high-density seating.

In terms of indirect impact, where touroperators have been accepted as legitimatepartners in tourism development in manycountries and destinations, there is theopportunity for the tour operator to beinfluenced by, as well as to influence, thebehaviour of various public and private sectoractors in the destinations. However, results arevery varied both between and withincountries.

It is in the area of tourism management thatthe large tour operators have sought toinfluence the public and private sectors. Manytour operators seek to monitor theenvironmental performance of sub-contractedsuppliers and destinations.They supportcountries and regions in implementing thedevelopment processes of local ‘Agenda 21s’and actively promote the harmonisation oflocal, communal and regional needs in tourism

development plans.They support measuresthat help in visitor management and maketheir own staff aware of sustainabledevelopment needs.

Strong governance and institutionalframeworks have helped to manage flows oftourism through tour operators in mostdeveloped nations, although more could beaccomplished. In the developing world this hasbeen less effective with the exception of lowvolume specialist destinations, which havebenefited from responsible managementpolicies of tour operators. It is in the fewdeveloping countries with volumes of touriststhat are not appropriate for the habitat orcurrent infrastructure that problems can arise.

It should be emphasised that multi-stakeholderinvolvement in receiving countries/destinationscan only be effective if tour operators areincluded as active partners. In the end it is forthe country/destination to determine whatrole tourism should play in their communityand what policies they want to follow.Attempts by outsiders (e.g. tour operators orNGOs) to create solutions based on ‘westerncriteria’ are almost certain to fail.

13.2 Key areas for improvement Key areas for improvement include:

• tour operators need to develop aresponsible tourism policy;

• better information to consumers from touroperators, particularly on credibleenvironmental standards applied to andmonitored among sub-contractedsuppliers;

• stronger relationships with tour operatorsand local public-private sector actors in allsignificant tourism destinations to supportdestination management policies aimed atsustainable development.This should leadto constructive consultation as well as theemergence of true local partnerships;

• significant development of the‘complementary offer’ to create jobs

The tour operator industry 27

among women and the local community indeveloping countries, and greaterdevelopment of local agriculture to providespecific foods for tourists;

• encouragement of zero-emission terrestrialvehicles and aircraft;

• management of water, waste and energyconsumption and the protection of tourismsites (heritage and natural) fromunmanaged tourism flows that degradeboth the natural environment and thevisitor experience;

• encourage tour operators to adopt self-regulation through appropriate codes ofconduct specific to habitat and destinationwhere there are insufficient governanceand institutional frameworks;

• raising tour operators’ awareness of thesocial dimension of sustainabledevelopment and ensuring that policies andcommunications to consumers reflect localcommunity concerns;

• tour operators need to ensure thosesustainable tourism development concepts,procedures and practices are included intheir management and representativetraining programmes;

• tour operators need to set goals forsustainable development against whichtheir performance can be measured andreported both internally and publicly.

14 Means of implementationTour operators use a variety of tools to createfeedback systems to alert the tour operatorsas well as public and private actors in thedestinations.

• TUI, a part of Preussag, one of the largesttour operators in the world, with 23million customers, and Scandinavian LeisureGroup, part of MyTravel, track theenvironmental performance of destinationsand sub-contracted suppliers;

• many of the small tour operators haveclear guidelines for their staff to follow andreport back on adverse consequences of

their tourism activity. Customers, too, arequick to bring to the attention of touroperators’ adverse consequences. NGOscan also contribute their views;

• the issues raised are commonly dealt withthrough the local contacts of touroperators in the destination. Otherwise, ina destination with high volumes of tourists,IFTO is often used to communicate theadverse consequences and recommendremedial action;

• more recently, the Tour Operator Initiative(under the aegis of UNEP, UNESCO andWTO/OMT) has provided the beginningsof a network of tour operators large andsmall, to develop better policies andsystems of implementation;

• IFTO has played an active and prominentrole with WTO/OMT by chairing itsBusiness Council. Sustainable developmentis a key part of WTO/OMT’s programmeof work.

15 Future challenges and goalsTour operators should set the goal ofintroducing a comprehensive responsibletourism policy covering direct action andindirect impacts, within the next five years.

15.1 Tour operators direct action:

• better information to consumers;• more use of electronic communication;• reduction in use of paper;• better use of recycled paper and paper

from renewable forests;• eliminate use of toxic paper coating;• aggregate performance data to support

corporate annual reporting and year onyear improvements,

28 The tour operator industry

• ensure that sustainable developmentconcepts, procedures and practices areincluded in management and representativetraining programmes;

• ensure greater adherence to tour operatorcodes of conduct.

Success in the above areas will depend on:

• the development of agreed internationalcriteria against which to measure theenvironmental performance ofsubcontracted suppliers in order to keepconsumers better informed;

• the extent of the use of electronic means of communication;

• technological innovation and progress thatwill allow the development of low cost,thin (low weight) shiny paper for brochuresthat have high levels of environmentalperformance.

15.2 Tour operators indirect impacts:

• tour operators need to improve theirmonitoring of the social and environmentalperformance of sub-contracted suppliersand destinations (building on health andsafety initiatives and guidelines);

• tour operators should develop strongerrelationships with local public and privatesector actors in all significant tourismdestinations, to support destinationmanagement policies and strategies aimedat sustainable development (multi-stakeholder involvement).

In addition, tour operators need to:

• protect the natural environment andcultural heritage,

• conserve plants and animals, protectedareas and landscapes,

• respect the integrity of local cultures andtheir social institutions.

The tour operator industry 29

30 Tourism

16 Social and economicdimensionsMost international visitors are unfamiliar withthe countries they visit.To assist them plan andoperate their itineraries, hotels, visits andattractions, the role of the incoming touroperator, agent or groundhandler hasemerged. Many are simply organised as aservice to customers, others have broadenedthe scope of their activities through backwardintegration by buying coach companies and hotels.

With the emergence of outbound touroperators, the role of the incoming touroperator has been much enhanced. Contractsare made between the two to deliver transfersand excursions and (on occasions) hotels.Theincoming tour operator provides all logisticalsupport as well as providing local knowledge(commercial, legal, political and environmental)on what can and cannot be done.

Very few incoming tour operators have beenacquired by outbound tour operators, and99% remain as local independent businesses.Worldwide there are many thousands ofincoming tour operators. In developingcountries, in particular, these local businessescompete to represent tour operators andthose that fail resent that all the business ofthe outbound tour operator goes through onelocal business.

The incoming tour operator attempts tocreate a range of offers to attract consumersthat are practical in terms of logistics and theenvironment and provide the right price/valueto consumers and profits to themselves. Fromthe perspective of the suppliers in thereceiving destination, the incoming tour

operator forms part of their destinationnetwork for which they are prepared to pay.The outbound tour operator can also play arole in that distribution to customers.

The coach companies play a crucial role in thebatch distribution of customers from airportto hotels and on tours to excursion venues.Their fleets are, in the main, very modern andwell maintained.The rent-a-car companiesusually provide new or nearly new vehicles forhire.The economic value of rent-a-cars fortourism is that customers can reachdestinations not accessible without motorised transport.

The major attractions act as magnets totourists providing the motivation for visits andleading to increased use of hotel rooms, roads,airports, rail transport as well as the land usefor the attraction itself.They can provide amajor drive for increased local employment.Major attractions depend on very high visitor throughput.

17 Social and environmentaldimensionsThe incoming tour operators can, and do, laydown clear policies and procedures forsubcontracted suppliers to follow to protectthe environment (for example, relating todriving on safari in Africa) and to supportenlightened social policies, (portering inmountainous areas in south-east Asia).However, these local businesses are run onlocal labour law, regulations, custom andpractice.

In some developing countries, the custom andpractice may not meet the standardsdemanded, for example, by International

Incoming tour operators, agents, groundhandlers, coach and rent-a-car companies and major attractions 31

Part 3: Incoming tour operators, agents, groundhandlers,coach and rent-a-car companies and major attractions

Labour Organization (ILO). Outbound touroperators can have influence over how theirpassengers are handled by the incoming touroperators/suppliers, however, they have noinfluence on how the incoming tour operatorarranges for the majority of their work withtheir suppliers that takes place with individualson independently organised groups.

The incoming tour operators recognise thatthey have a significant role to play in tourismdevelopment.Their decisions on excursionvenues and planning of trips can have strongimpacts on particular communities.Thesecommunities are in competition with eachother for offering attractions to tourists whohave limited time (e.g. craft markets).Touristswill often go to one craft market, but not two,so decisions by incoming tour operators count heavily.

The obligation of the coach companies is toensure that the vehicles are safe and secureand emit the lowest emissions possible withthe use of local fuels.Their social obligationsrelate to conditions of work, particularlydrivers’ hours, as well as driving and parkingprocedures.

The major attractions can be of culturalheritage e.g. Karnak,Taj Mahal, or can berecently man-made e.g. Disney or UniversalStudios.The attractions of cultural heritage canlead to excessive use and congestion and toenvironmental degradation.The man-madeattractions have imposed upon them apanoply of planning and social regulation withwhich to comply.This includes stringentenvironmental impact assessments before anyproject is finally approved.

18 ConclusionThe opportunities for incoming tour operatorsare to be recognised for the important andinfluential role they can play in tourismdevelopment. As small local enterprises, theyare often not brought into policy discussions

with government at the appropriate level.The challenges for incoming tour operators,agents and groundhandlers are:

• to obtain from government recognition oftheir influential role,

• to take a balanced and responsibleapproach to the provision of services thatthey provide within the context andpossibilities of their local conditions,

• to influence their subcontracted suppliers to adopt a similar balancedresponsible approach.

The coach and rent-a-car companies willadopt more fuel-efficient, and eventually,emission-free vehicles.What will then remain isthe question of congestion and the challengeof the measures taken by them, together withthe authorities responsible for trafficmanagement.Their objective should be tomanage congestion, so that delays anddisruption to the visitor experience areminimised.

The challenge for attractions is to contributeto and obtain measures for access andsubsequent distribution of very large numbersof customers, while complying with their socialand environmental responsibilities.

32 Incoming tour operators, agents, groundhandlers, coach and rent-a-car companies and major attractions

19 General overviewThe hospitality sector (i.e. hotels andrestaurants) is an essential and dynamiccomponent of the world’s largest industry –travel and tourism.The global hotel industrycovers a wide range of accommodationservices from full-service luxury hotels to bedand breakfast operations, inns, all-suite hotels,and limited service and economy properties.These establishments may be owned and/ormanaged by independent operators,multinational chains, insurance companies,pension funds, governments and otherinvestors.

The International Hotel & RestaurantAssociation (IH&RA) as the sole tradeassociation exclusively dedicated torepresenting the hospitality industry at theinternational level, is also the only body tohave attempted to quantify the size and scaleof the sector on a global basis.This researchwas published in 1995 and 2000 in the formof two White Papers on the Global HospitalityIndustry.Their findings indicate that as of 1997the industry comprised over 301,400 hotelproperties worldwide, totalling 13 millionrooms and generating over USD202 billion inrevenues. It identifies the largest concentrationof hotels in the European Economic Area(EEA) with 159,226 properties, followed bythe North American region, with just over65,000 hotels.(41) This contrasts sharply, forinstance, with South Asia, which, with 15,066hotel properties, represents less than 1% oftotal world supply.(42)

An industry of such magnitude inevitably hasfar-reaching impacts of a social, economic andenvironmental nature, as was confirmed by thesecond IH&RA White Paper (2000).This foundthat sustainable development and social issueshad become key forces driving change in themultinational hospitality industry and an

important yardstick against which theindustry’s development will be measured inthe near future.

20 Economic dimensionsAlthough industry consolidation is a continuingtrend, the hospitality sector is stillpredominantly made up of small and medium-sized enterprises (SMEs). Research indicatesthat approximately 20% of hotels worldwideare branded (i.e. have an affiliation to anational or international chain of hotels), and80% are independent, although the ratio ofbranded to non-branded hotels in the UnitedStates is higher (70/30)(43), a trend whichEurope is likely to follow – albeit at a slowerpace – given the existing low level of brandpenetration and continued high volumesexpected in international travel.

Given its size and scope, the internationalhospitality industry makes a major contributionto gross domestic output. In both developingnations (where tourism may be the primaryindustry) and developed countries, industryrevenues constitute an important part of thelocal and national economy.They do so viafour major activities, profits earned anddistributed to owners, taxes paid on sales,wages and real estate, jobs created; andpurchases of supplies and materials.

Industry taxation generates significant fundingfor governments.This in turn, is used toprovide services for citizens and travellers. Aswell as income tax, hotels pay business taxes,licence fees and real estate taxes, in additionto the social charges often imposed onemployee wages. Being such an importantsource of tax revenue, hotels can be viewed ashighly productive members of the economiccommunity, compared with other propertyinvestments that do not provide this multipletaxing opportunity.

(41) Olsen, M. D., Zhao, J.,Sharma, A., Choi, J., 2000:Leading Hospitality into theAge of Excellence: Expansion,Competition and Vision in theMultinational Hotel Industry1995-2005. InternationalHotels &RestaurantsAssociations. France.(42) UNITED NATIONS,1998: United NationsConference on Trade andDevelopment, InternationalTrade in Tourism-RelatedServices: Issues and Optionsfor Developing Countries.United Nations. 1998(43) Arthur Andersen, 1998:10th Annual European HotelIndustry InvestmentConference: New Capital for aChanging Europe. London.November 1998.

The hospitality industry 33

Part 4: The hospitality industry

Hotels and restaurants also contribute to theimportant process of job creation. As a labour-intensive industry, hospitality employs largenumbers of wage earners, whose taxes anddisposable income add to gross domesticoutput and help to create further employmentopportunities. Given that each hotel roomtypically requires one member of staff, everyhotel room built has the potential to create anadditional job.(44)

Furthermore, for every dollar spent by a guestin a hotel, one additional revenue dollar isgenerated for the community. Referred to asthe ‘multiplier effect’, this concept is used byeconomists to explain how money spent by ahotel guest travels through a community topurchase the goods and services required tomeet the guest’s needs. In the United States, forexample, the multiplier effect is approximatelytwo; that is, for every dollar spent by a guest ina hotel, one additional revenue dollar isgenerated across a wide range of businesses.(45)

The total output of the hotel industry isclosely tied to the variables associated witheconomic development such as basicinfrastructure and levels of Gross DomesticProduct (GDP), employment and education ofthe workforce.This relationship is worthnoting since it can be expected that the hotelindustry has considerable growth potential inthose nations and regions that are justbeginning to fully develop their economies andimprove their performance in each macro-economic variable.

20.1 Labour supplyOf particular concern to the hospitalityindustry in high-income countries are currentdemographic trends – notably declining birthrates and ageing populations – which putfurther pressure on an industry characterisedby high turnover and a shortage of qualifiedlabour in both developed and developingcountries(46).These problems are exacerbatedby constraints on the international mobility ofworkers as a result of visa restrictions andnational immigration quotas.

Although no data is currently available as tothe actual extent of the labour shortfallglobally, it can be anticipated that tradeassociations will lobby for a more flexible jobmarket on a global scale, and that in order tohelp combat the labour shortage hotels willhave to embrace a training culture in theirbusinesses and employ people from anincreasingly wide cross-section of cultures and backgrounds.

21 Social dimensionsBy providing many young or unskilled peoplewith their first job experience, the industryalso effectively offers them an entry into thelabour market.The industry’s labour-intensivenature puts it in a prime position to drawupon all sectors of society to meet itsworkforce needs. It is worth noting that insome countries women account for up to70% of all employees in the catering andaccommodation sector, according to estimatesby the International Labour Organization(ILO).(47) Given its key contribution to grossglobal output and employment generation, andthe social consequences this may have,hospitality industry leaders are beingchallenged to demonstrate greater levels ofsocial responsibility and will be increasinglycalled upon to address the gap between theso-called ‘haves’ and ‘have-nots’.

In this spirit, some hotel companies havesigned agreements with trade unions, whichfocus on issues of trade union rights, skillstraining and equality in the workplace. Notingthat ‘in the global economy, all social andeconomic progress is contingent upon themaintaining of a society based on democraticvalues and respect for human rights’(48), theAccor Group and the International Union ofFood, Agricultural, Hotel, Restaurant, Catering,Tobacco and Allied Workers’ Associations(IUF) have undertaken to respect ILOconventions relating to:

• the right of employees to affiliate to theunion of their choice,

(44) Olsen, M. D., 1995: Intothe New Millennium: A WhitePaper on the GlobalHospitality Industry.International Hotels&Restaurants Associations.France.(45) ibid(46) Olsen, M.D., 2000:Leading Hospitality into theAge of Excellence.International Hotels&Restaurants Associations.France. p.18.(47) ILO, 2001: HotelResources Development,Employment and Globalizationin the Hotel, Catering andTourism Sector. InternationalLabour Organisation. Geneva.(48) Agreement Between theIUF and the Accor Group onTrade Union Rights. For moreinformation on the Internethttp://www.iuf.org/iuf/accor/turight.htm (see Appendix 4)

34 The hospitality industry

• the protection of employees against all actsof discrimination that tend to violatefreedom of association,

• the protection of employees against anymeasures that could harm them as a resultof them being union representatives.

The Accor Group undertakes not to opposeefforts to unionise its employees andconsiders respect for union rights to be partof the good reputation of its brand names(see Annexe 4 for the full text).

There is also growing pressure on themultinational industry to plough more of itswealth back into those parts of the developingworld where it operates. In an era whenwealth sharing can be achieved through jointventure schemes or other forms of ownership,the expectation is that all stakeholders in ahotel project (be they investors, employees, orgovernment) should have an equitable share inthe profits. Increasingly, criticism is directed atgovernments that remove all forms of financialobstacles as an incentive to hotel companiesto locate within their borders.

The challenge of the shrinking labour pool iscompounded by pandemic HIV/AIDSparticularly for hotels located in high-risk areaswhere the disease is widespread. An actuarialstudy of South Africa, for example, revealedthat the transport, catering andaccommodation sectors are the most at riskfrom the epidemic with an estimated 26% ofthe region’s hospitality workforce ultimatelybecoming infected.(49)

Yet the problem is by no means exclusive tosub-Saharan Africa and its implications extendwell beyond the labour supply. Hotelsincreasingly recognise the need for measuresto protect ‘frontline’ employees given thehigher-than-average extent of direct contactbetween customers and staff. One response tothis need has been the publication of theGuide for the Hospitality Industry on dealing withHIV/AIDS in the Workplace produced by IH&RA

in collaboration with UNAIDS.(50) This givesguidance to hotels on introducing an AIDSpolicy and AIDS education in the workplaceand details essential safety measures (treatinginjuries, disposing of syringes and razors etc.).

The commercial sexual exploitation of childrenin tourism – commonly referred to as childsex tourism – is a further area of socialconcern with implications not just for hotelsworldwide, but for the tourism industry as awhole. No matter how inadvertently, hotelsalong with other tourism operators may beimplicated.

Experience in the field shows that this is onearea where collaboration between the variousprivate sector partners, national governmentsand their law-enforcing agencies is vital.IH&RA, for example, is an active member ofthe international steering committee on theCode of Conduct for the Protection of Childrenfrom Sexual Exploitation in Travel and Tourism,together with other stakeholders, includingInterpol,WTO, the Tourism Authority ofThailand (TAT), and other representatives fromthe tourism industry.

22 Environmental dimensionsAs a major component of travel and tourism,the hospitality industry (characteristically aprivate sector activity involving SMEs widelydispersed across the local environment) has avested interest in protecting the environment -its key resource.

Individual operators and major hospitalitychains alike are increasingly hearing thismessage as they implement environmentally-friendly energy conservation and wastedisposal measures tailored to their specificneeds. Indeed, by the very nature of theiroperations, hotels are likely to take a multitudeof environmental actions that extend beyondthe control of any single monitoring agency. Asa result, self-regulation appears to be the mostviable course of action, whether in the form of

(49) Leading Host, 1999:FEDHASA Begins to AddressAIDS in the HospitalityIndustry. 1999 .(50) IH&RA, UNAIDS, 1999:The Challenge of HIV/AIDS inthe Workplace: A Guide forthe Hospitality Industry.France. (see Appendix 5).

The hospitality industry 35

in-house environmental audits, the adoption ofan environmental management system, and/orapplication for eco-certification such as GreenLeaf, Green Key or Green Globe issued byone of a number of recognised bodies (seeAnnexe 7).

Indeed, the moral, social and politicalarguments for conducting business in anenvironmentally-sound manner are becomingmore and more widely accepted.This isparticularly noteworthy given the potentialimpacts the industry can have on air quality,energy and water consumption, land use andwaste generation.

Although less ‘polluting’ than some otherindustries such as certain manufacturingprocesses, hospitality businesses, like mostothers, contribute to emissions into theatmosphere (through the use of fossil fuelsand ozone-depleting substances and thetransportation of supplies).The hospitalityindustry can also be considered a significantuser of energy in the form of heat and power.As this directly involves the burning of fossilfuels and the emission of greenhouse gases,the hospitality industry is also an indirectcontributor to global warming. As a result,industry bodies regularly draw attention to theimportance of eliminating ozone-depletingsubstances in refrigeration, air-conditioning andfire-extinguishing appliances to avoid furthercontributing to this phenomenon.

Water is perhaps the hospitality industry’smost important resource.Tourists typicallyconsume considerably more water than localresidents. A hotel can consume between 60m3

and 220m3 per guest room per yeardepending on the facilities provided andwhether sound water conservation practicesare in place, such as water flow restrictors andon-site waste water treatment facilities. Majorefforts have been made by the industry todisseminate information and advice on theseand other resource and energy-savingmeasures, including several produced jointly by

IH&RA and partner organisations.(51)

Hotel developments can hasten the installationof much-needed water, power and transportinfrastructure. Hospitality developers are wellaware that poor siting, design, engineering andconstruction of tourism facilities run counterto their long-term interests by causing erosion,landslides and flooding. Much has been learntfrom past experience, including theimportance of preserving natural protectivefeatures such as dunes and vegetation coverwhen constructing hotel facilities on thewaterfront in low-lying and coastal areas, andof harmoniously integrating hospitality facilitieswith the natural or architectural features ofthe surrounding area.(52)

Constructing or refurbishing hotels can be anopportunity to apply traditional techniquesand technologies, to rediscover local materials,and to consult with local communities to learnhow best to construct buildings that respect agiven landscape and suit a particular climate.The 2001 IH&RA Environmental AwardWinner – Chumbe Island Coral Park,Tanzania– for example, employed local craftsmen fortheir knowledge and skills in the use oftraditional building techniques. As a result, 14‘eco-bungalows’ were constructed withmaterials that have close to zero impact onthe environment.

It should be remembered, however, thathospitality developers do not operate in avacuum.The control of environmental impactsalso depends on a strong local governmentcapable of enforcing building and planningregulations.This is particularly important at atime when tourism and hospitality businessescontinue to expand into remote areas.

Most hotels generate large quantities of solidwaste including bottles and food packaging,kitchen and garden waste, old furniture andequipment and potentially hazardous wastessuch as asbestos and solvents.Waste disposalcosts money and for this reason, hotels are

(51) IHA, IHEI, UNEP, 1995:Environmental Action Pack forHotels: Practical Steps toBenefit your Business and theEnvironment, 1995.(52) IH&RA, EUHOFA, UNEP,2001: Sowing the Seeds ofChange: An EnvironmentalTeaching Resource Pack forHospitality Professionals, 2001.

36 The hospitality industry

increasingly careful to reduce waste volumesbecause it makes sound business sense.Theydo so by minimising the materials used in thefirst place, recycling and reusing wastematerials wherever possible, and by safelydisposing of residual wastes.The Orchid Hotelin Mumbai, India, provides a particularly goodexample of innovative recycling and wastedisposal.Virtually all in-room products arereusable or recyclable, paper usage is kept to aminimum and kitchen waste is composted inon-site vermiculture pits. (See Annexe 5 forfurther examples).

As a major consumer of goods and services,the industry has a strong impact on the supplychain and can induce better environmentalpractices here.Through their collective effortshospitality businesses can contribute toincreasing recycling volumes, driving downrecycling costs, increasing the profitability oflocal recycling markets and raising customerawareness.

Hospitality services people at leisure – whooffer a captive audience for environmentalcommunication. Many tourists feel goodknowing that they have spent a low-impactholiday and used the services of environment-conscious operators.The feel-good factor isnot limited to tourists – it can also extend toemployees. In fact, good environmentalstewardship has been found to reduceemployee turnover, and motivate employeesto become environment-conscious citizens.(53)

23 ConclusionsThe ‘triple bottom line’ – the consideration ofecological and social, as well as economicconcerns – is increasingly guiding businessstrategy. Since the introduction of Agenda 21and its adaptation for travel and tourism in1996,(54) the hospitality industry has introducednumerous voluntary initiatives to reduce thenegative and enhance the positiveenvironmental impacts associated with its

operations.(55) This is particularly relevant giventhat shareholders, customers, employees,community groups and governments areincreasingly showing an interest in the ‘green’performance of their corporate citizens,including hospitality businesses.

Most of the leading hospitality chains haveintroduced environmental policies and manyhave senior executives dedicated solely toenvironmental issues. In smaller hotels,environmentally-sound business practice isoften driven by the individual general manager,resulting in both creative solutions and costreductions. Clearly, the industry is progressingboth in environmental awareness and concreteaction, although opportunities for furtherimprovement still abound.

As indicated, voluntary initiatives have beenundertaken to help hotels deal effectively withHIV/AIDS in the workplace and thecommercial sexual exploitation of children intourism, but much remains to be done.Todate, industry associations, such as IH&RA,have focused their efforts on raising awarenessof the issues involved and formulatingguidelines that can be incorporated intooperating procedures.They have emphasisedthat the challenge for all hotels – large orsmall, chain or independent – is to addressthese problems proactively rather than beforced to comply with legislative requirements(by the government) on which they may nothave been consulted. A detailed discussion ofvoluntary actions undertaken in the lastdecade by the hospitality industry in pursuit ofsustainable development will be the topic ofthe following section.

24 Means of implementationSince the introduction of Agenda 21, thehospitality sector has adopted numerousstrategies, approaches and measures inresponse to the challenge of sustainabledevelopment.These include:

(53) IH&RA, EUHOFA, UNEP,2001: Sowing the Seeds ofChange: An EnvironmentalTeaching Resource Pack forHospitality Professionals.(54) WTTC,WTO and theEarth Council, 1996: Agenda21 for the Travel & TourismIndustry:TowardsEnvironmentally SustainableDevelopment.(55) PriceWaterhouseCoopers,2000: New Europe and theHotel Industry. London.

The hospitality industry 37

• environmental management systems andtools;

• education, awareness creation, training andinformation dissemination;

• voluntary initiatives;• multi-stakeholder communication and

consultation;• environmental reporting;• implementation of the Rio principles.

24.1 Environmental managementsystems and toolsMany multinational and independent hotelcompanies have introduced environmentalmanagement practices at the property level.Ideally, the framework for this involves definingan environmental policy and building amanagement system to measureenvironmental impacts and compliance bothwith corporate policy and with localregulations, as well as documenting thesystem’s performance for inspection andauditing purposes.

One such system is Six Continents’ (formerlyBass Hotels & Resorts) Conserving for Tomorrowprogramme, a worldwide initiative involvingover 1,100 participating hotels. Suchenvironmental management systems (EMS) helpbusinesses to evaluate, manage and reduce theirnegative environmental impacts by providing amethodology to integrate environmentalmanagement into business operations in asystematic manner. Examples of hotelcompanies that have successfully implementedEMS are documented in Annexe 5.

24.2 Education, awareness creation,training and information disseminationIH&RA, in conjunction with partners such asUNEP-DTIE, the International HotelsEnvironment Initiative (IHEI), the UNAIDSprogramme and its member nationalhospitality associations, has sought to raiseindustry awareness of the social, economic andenvironmental dimensions of sustainabledevelopment through numerous educationalprogrammes and publications (see Annexe 6).

As indicated above, in the social domain,IH&RA has collaborated with UNAIDS toproduce a manual addressing the issue ofHIV/AIDS in the workplace(56) and has activelyparticipated in WTO’s campaign against ChildSex Tourism by publishing practical advice forhoteliers on how to deter this form of criminalactivity and where to get help.The IH&RAleaflet Stop Child Sex Tourism is available on theassociation’s Web site for member hospitalityassociations to download and adapt. A numberof these have promoted the campaign bydistributing the material to their memberswhile others – notably in Brazil, the Philippinesand Taiwan – have launched their owncampaigns at the national level.

At the corporate level, many global hospitalitycompanies are also involved in a range ofvoluntary initiatives. Marriott International, forinstance, has committed to assisting thecommunities in which it operates, believingthat business enterprises should be active insupporting community concerns (see Annexe 6).

In the specifically environmental domain,curriculum materials for hotel schools recentlydeveloped by IH&RA(57) demonstrate thatsound environmental policy is not limited toone geographical region, nor is it the exclusivepreserve of multinational companies -independent hotels have also shownoutstanding leadership here. Since 1990,IH&RA, with sponsorship from AmericanExpress, has presented an annual EnvironmentAward recognising outstanding achievement byindependent establishments as well as chains.Entries are used for educating and raisingawareness in the industry as a whole, and havebeen incorporated into a number ofpublications(58) and press articles (see Annexe 6).

24.3 Voluntary initiativesGiven the predominance of SMEs in thehospitality sector, legislative enforcement andverification of compliance with environmental

(56) IH&RA, UNAIDS, 1999:The Challenge of HIV/AIDS inthe Workplace: A Guide forthe Hospitality Industry. 1999.(57) IH&RA, EUHOFA, UNEP,2001: Sowing the Seeds ofChange: An EnvironmentalTeaching Resource Pack forHospitality Professionals. 2001.(58) IH&RA, UNEP, 1997:Environmental Good Practicein Hotels: Case Studies fromthe IH&RA EnvironmentalAward. 1997.

38 The hospitality industry

measures is highly complex.Therefore,voluntary initiatives such as eco-labels,environment awards and codes of conduct areproving to be an effective method ofencouraging environmental improvementacross a large number of businesses. Inaddition to those discussed, other examplesare cited in Annexe 7.

In response to growing consumer awarenessof the environmental context when purchasingproducts, eco-labelling has been one of themost successful means for a hotel to gainenvironmental credibility and custom.Certification may originate within a nationalhotel association, such as the Hotel Associationof Canada’s Green Leaf programme, as a jointinitiative between the national hotelassociation and other local tourism partners,such as HORESTA’s Green Key programme inDenmark, and Green Globe 21 supported byWTTC and other key international players. Or,finally, it may be devised by a consulting firmsuch as the HVS Ecotel certificationprogramme. In order to obtain an eco-label, ahotel must be independently audited on aregular basis to ensure it meets standards andpolicies relating to a general code of conductor specific benchmark.

According to the Caribbean Alliance forSustainable Tourism (CAST), an environmentalinitiative run by the Caribbean HotelAssociation for the benefit of its memberhotels, the eco-label certification process hasnot only created a competitive advantage formany hoteliers, but has also directly benefitedthe bottom line. Routine measures can reducewater consumption and related costs by up to30%, provide significant savings in energy, solidwaste haulage, chemical and maintenancecosts, and have a typical payback period of lessthan two years.

Other advantages frequently include a positiveimpact on corporate/hotel image, internalmanagement, local community relations, clientsatisfaction (reported to be 90% under Costa

Rica’s Certification for Sustainable Tourism),and reduced environmental liability. Examplesof certification schemes in the hotel industryare detailed in Annexe 7.

In terms of the hospitality industry’s socialcontribution, one initiative particularly worthnoting is the Singapore-based Pan Pacific Hotel& Resort’s Youth Career Initiative. Launched withsupport from the United Nations Children’sFund (UNICEF) at the Pan Pacific Hotel inBangkok in 1995, this IH&RA-endorsedprogramme offers severely under-privilegedyoung people a 20-week training course inbasic life skills along with an introduction tothe hospitality industry. It seeks to open upgenuine career opportunities that will lift themout of poverty and protect them fromprostitution.

The programme has now been set up inManila (Philippines), Jakarta (Indonesia) andDhaka (Bangladesh) and will be extended toother world regions such as Africa, LatinAmerica and the Caribbean in the near future.To date, over 400 young people havebenefited from the programme, some evenusing it as the stepping-stone to highereducation (see Annexe 7).

On the cultural side, IH&RA has partneredwith the United Nations Educational, Scientificand Cultural Organisation (UNESCO) in ajoint initiative encouraging hotel companies toinvest in the archaeological and culturalheritage on which cultural tourism thrives.Major hotel chains participating in this‘Memories of the Future’ programme havefinancially supported restoration andenhancement projects for UNESCO WorldHeritage Sites such as Prince Gong’s Palace,Beijing and the Medina of Tunis (Accor) or thehistoric City of Krakow in Poland, the City ofTyre in Lebanon and the Bahla Fort in Oman(Radisson SAS). (See Annexe 7 for a moredetailed description of this programme.)

The hospitality industry 39

24.4 Multi-stakeholder communicationand consultation Hospitality companies, like all businesses,answer to a variety of stakeholders, includinginvestors, customers, employees, suppliers andthe local community. Increasingly, they areexperiencing demand for greater participationin decision-making by representatives of thelatter category, which may translate into aheightened need to obtain voter approval forplanning and development, for example, bycarrying-out an environmental impactassessment. In this new regulatory context,corporations are being pressured into makinga higher community commitment throughcharitable involvement, a trend mirrored in thecorporate marketing techniques increasinglyused for the generation of brand awareness.

Exemplary instances of local communityconsultation can be found in both theindependent and chain hotel sector. Facing thethreat of becoming an island of conservedhabitat in a sea of rural poverty, the PhindaMountain & Forest Lodge, in South Africa, hasmade a commitment to ensure the localcommunity draws sustained benefits from itsnatural resources. Radisson SAS hasestablished its Responsible Business Agenda forkey stakeholder groups (including suppliers,local communities, media and environmentalrepresentatives) to determine what they canrightfully expect from the company. Bothcompanies recognise the role of keystakeholders in the decision-making process(see Annexe 8 for further details).

Beyond these individual examples and otherslike them, however, further research must beconducted to track what the industry is doingas a whole in regard to communicating andconsulting with its stakeholders.

24.5 ReportingThe ever-increasing pressure from hotelstakeholders for transparency and opennessabout the broader environmental aspects ofhospitality operations is reflected in a

widespread trend towards environmentalreporting among hotels. Companyenvironmental reports are considered anexcellent means for self-assessment – bymonitoring progress and measuring the resultsachieved. Indeed, environmental reporting isstarting to evolve into ‘sustainability reporting’which communicates the economicperformance of the company, and itsenvironmental and social impacts. Moreover,financial institutions have come to regardsustainable principles and practices asfundamental to sound business management,giving companies that wish to be considered‘responsible’ an additional incentive to monitor,measure and report performance in thefuture.(59)

Accordingly, more and more multinationalhotel companies are reporting theirenvironmental activities and performance on aregular basis. Examples include Six Continents(formerly Bass), Starwood, Radisson SAS andGolden Tulip in addition to independent hotels,such as the winner of the IH&RA’sEnvironment Award 2000 – Hotel Victoria,Freiburg, Germany – which regularlycommunicates quantified data on the hotel’senvironment performance to guests. It can beexpected that companies in the years aheadwill undertake to report on more and moreaspects of their operations.

24.6 Implementation of the Rio principlesIH&RA has been instrumental in advocatingthe implementation of the Rio principles in thehospitality industry through its ongoing effortsto raise environmental awareness.WithWTTC, it participated in the 7th Session ofthe United Nations Commission onSustainable Development (UNCSD, April1999), which focused for the first time ontourism. In particular IH&RA and WTTC co-ordinated industry representation at themulti-stakeholder dialogue on tourism.

(59) PricewaterhouseCoopers,2000: New Europe and theHotel Industry. 2000.

40 The hospitality industry

The meeting’s conclusions placed a strongemphasis on:

• educating the consumer on environmentalresponsibility,

• promoting environmental and socialresponsibility among travel and tourismcompanies,

• encouraging multi-stakeholder participationin the development of policy andprogrammes.

Through its congresses, think-tanks,publications and partnerships, IH&RAcontinues to communicate the abovemessages to the global hospitality industry andthe voluntary industry initiatives outlined inthis report illustrate that these are beingreceived and understood.

25 ConclusionsIt is clear from the examples in this paper thathotels from all geographic regions aresuccessfully implementing strategies in favourof sustainable development. Key areas ofprogress include: rising levels of awareness byusing resources in an efficient andenvironmentally sensible manner can positivelyimpact the bottom line, the multiplication ofvoluntary initiatives undertaken across theglobe, and the recognition that transparencyand reporting make for good businesspractice. In the SME sector particularly, theprimary contributing factor of success appearsto be the enthusiasm, creativity andcommitment of individuals. However, there are still areas where progress needs to bemade.These will be addressed in the following section.

26 Future challenges and goalsSince the introduction of Agenda 21, thehospitality sector, as demonstrated in thispaper, has done much to improve its

performance in terms of sustainabledevelopment. Efforts by IH&RA, UNEP,UNAIDS, IHEI, CAST, national associations,individual hotels and others to record anddisseminate information on best practices, hasenabled a wide sample of hospitalitybusinesses to benefit from the experience of others.

Over the next ten years, however, the industrywill face new challenges as it gears up forfurther growth in a period where social andenvironmental sensitivity are becomingprogressively more acute.This, in conjunctionwith the fact that global capital flows will exertpressure on managers to provide greaterreturns on investment, makes for an evenmore challenging context in which thehospitality sector must focus its efforts onmaking progress in the following specific areas:

• increasing participation of all sectors ofsociety and involving all stakeholders(governments, NGOs, local communities,local authorities) in the decision-makingprocess;

• increasing provision of benefits, especiallyeconomic opportunities, to local residents.These could include purchasing from localsuppliers, outsourcing laundry functions tolocal businesses, and supporting localenterprise through the provision ofbusiness advice, and by sharing marketingresources and infrastructure;

• lobbying governments to loosen visarequirements in order to facilitate themobility of workers to address theshortage of qualified labour;

• focusing on attracting and retainingemployees through lifelong learning,empowerment, better balance betweenwork, family and leisure, greater workforcediversity, equal pay and better careerprospects for women, profit sharing andshared the ownership scheme;

• ensuring that all establishments have thenecessary policies and tools in place tomanage the threat of HIV/AIDS;

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• garnering further support among industryplayers and working with governments tocombat the commercial sexual exploitationof children in tourism, for example byadopting an explicit ethical policy againstchild sex tourism on the property, trainingstaff to spot and report suspicious incidentsand agreeing to participate in programmessuch as the Youth Career Initiative;

• guaranteeing that all new properties builtare sited and designed to minimisenegative environmental impacts.This can bepartially accomplished through conductingEnvironmental Impact Assessments (EIAs);

• ensuring that the conservation of naturalresources, including water and energy, is atthe core of all operations and espousingnew technologies which facilitate this;

• ensuring that waste generated in individualproperties is kept to a minimum anddisposed of in an environmentally soundway;

• clearly communicating and ensuring thatthe economic justifications for beingenvironmentally-friendly and for supportingsustainable development are understoodthroughout the sector;

• stimulating consumer awareness aboutmaking socially and environmentallyresponsible choices when travelling;

• continuing to gather and disseminateinformation on best practice;

• further developing a common body ofknowledge so that all stakeholders in thehospitality experience can be informed ofthe choices available to them;

• incorporating sustainable developmentteaching into hospitality school curricula.

27 SummaryIn brief, while the hospitality industry is makinga concerted effort to initiate programmes forsustainable development, its success willdepend on the extent to which nationalgovernments encourage sustainable tourisminitiatives and their ability to understand howother policy areas can affect the hospitalityindustry. If the latter can work in co-operationwith continued hospitality industry involvementand commitment, then the principles ofsustainable development within the sectorstand a better chance of being applied.

42 The hospitality industry

28 General overviewThe passenger cruise industry is an exciting,modern and rapidly expanding global industry.During the current decade, it has continued toexpand its capacity and to develop newcruising opportunities for vacationers.Thegrowth and global reach has been exceptionalfor an industry with such high capital costs, andwith such a complex regulatory and legalenvironment in which to operate.

With capacity projected to continue toincrease each year, the future offersextraordinary opportunities for the industry, itscustomers and suppliers.This increase incapacity is driven by a record number of newships coming into service. Among these will bemega-liners that can accommodate more than3,000 passengers as well as smaller, moreintimate luxury vessels.The industry has ahistory of growth approaching 8% per year forthe past decade, and the outlook for thefuture seems extremely bright.

According to a recent study conducted byanalyst G.P.Wild,(60) total cruise passengers areforecasted to grow from 9.8 million last yearto 20.7 million by 2010.Within these figures,the North American market will go up from6.8 million to 11.9 million and mainlandEurope will grow from 1.3 million to 5.3 million. In sum, the passenger cruiseindustry is a dynamic sector of the globaleconomy.

ICCL is the leading trade association thatrepresents the interests of the 16 largestpassenger cruise lines that handle 95% of theNorth American vacation cruise market andapproximately 85% worldwide(61). It alsorepresents a growing number of over 73strategic cruise industry business partners. In2002, the member lines of ICCL will sail over90 vessels and will carry more than sevenmillion passengers.

The mission of ICCL is to participate in theinternational and United States regulatory andpolicy development process and ensure thatall measures adopted provide for a safe, secureand healthy cruise ship environment. Underthe direction of the chief executives of itsmember lines, ICCL advocates industrypositions to key domestic and Internationalregulatory organisations, policy-makers andother industry partners. ICCL activelymonitors domestic and international shippingpolicy and regulations and developsrecommendations for its membership on awide variety of issues, including safety, publichealth, environmental protection, security,medical facilities, and passenger protection.

Conferred the status of a non-governmentalconsultative organisation to the InternationalMaritime Organisation (IMO), ICCL activelyparticipates in reviewing current maritimeissues and developing conventions and treatieswhich, when adopted and ratified by membernations, become international law.ThroughIMO, maritime nations have developedconsistent and uniform international standardsthat apply to all vessels engaged ininternational commerce.These standards areset forth in a number of conventions andcodes such as:

• SOLAS (Safety of Life at Sea);• STCW (Standards of Training, Certification

and Watchkeeping);• MARPOL (Marine Prevention of Pollution

from Ships);• ISM (International Safety Management

Code).

International conventions set the benchmarkfor environmental and safety standardsthroughout the world. As an NGO, ICCLactively contributes to the deliberations of theMaritime Safety Committee (MSC), the MarineEnvironment Protection Committee (MEPC)

(60) G. P.Wild (International)Limited, 2001: Implications ofFleet Changes for CruiseMarket Prospects to 2010.August 2001.(61) ICCL members areCarnival Cruise Lines ;Celebrity Cruises ; CostaCruise Lines, N.V. ; CrystalCruises ; Cunard Line Limited;Disney Cruise Line ; HollandAmerica Line ; NorwegianCruise Line ; Orient Lines ;Princess Cruises; RadissonSeven Seas Cruises; RegalCruises ; Royal CaribbeanInternational ; Royal OlympicCruises ; Seabourn CruiseLine ;Windstar Cruises.

The cruise line industry 43

Part 5: The cruise line industry

and the numerous sub-committees, workinggroups and correspondence groups throughsubmission of reports and papers, participationin discussion, and correspondence groups.ICCL is an active participant in thedevelopment and fine-tuning of theseimportant international regulatory regimes thatapply throughout the world.

The countries where vessels are registered or‘flagged’ have the responsibility to overseecompliance with the internationally agreed-upon requirements established by these andother treaties. Additionally, a port state, such asthe United States, provides additional oversightregarding compliance and exercises jurisdictionover vessels while they operate within thewaters of that coastal nation.While operatingwithin United States waters, laws such as theResource Conservation and Recovery Act, theClean Air Act, the Clean Water Act, the RefuseAct and the Federal Water Pollution ControlAct apply.The United States Coast Guardenforces both international requirements andthe United States domestic laws with regard tocruise ships operating within their jurisdiction.

ICCL works with leading flag and port stateadministrations, international shippingassociations and classification societies onsafety, security and environmental issues. ICCLconstantly strives to improve safetyprocedures, and the excellent safety record ofICCL member operators attests to theproactive steps taken by these operators tosafeguard their passengers and crews, and theircommitment to provide a safe, clean and fairwork environment for their on-boardpersonnel.

ICCL’s commitment to excellence is alsodemonstrated by its readiness to work with,and to initiate partnerships with variousUnited States government agencies. ICCLcurrently has a formal partnership agreementwith the United States Coast Guard and aMemorandum of Understanding (MOU) withthe Florida Department of Environmental

Protection (FL DEP). ICCL also works closelywith the United States EPA, other state andfederal agencies and public advocacy groups toaddress safety, security, health andenvironmental protection concerns.

29 Economic dimensionsDuring the last decade, the cruise shipbusiness is a tourist industry that has grownrapidly. According to WTO(62), world demandreached 8.7 million passengers in 1999.TheNorth American markets cover two-thirds ofthe global volume, this is primarily due to therenaissance of the cruising destinations in theCaribbean. Although the number is relativelysmall in the global holiday market, the industryhas an enormous momentum and it isbelieved that North American and Europeandemand will, by the end of 2010, surpass 12 million passengers.

In the North American market, the UnitedStates is the dominant source of cruisepassengers. However, in recent years a growingpercentage of passengers have come fromEurope, Canada, and other areas.Thisexpansion has led to cruise line employmentof men and women in these markets bothashore and aboard ships. Comparing 1998 to1990, cruise ship embarkation from NorthAmerican ports increased by almost 70 %.Themajor United States ports of call are located inFlorida, Alaska, California, Louisiana, New York,Texas and Massachusetts. In Florida alone, over3.2 million passengers embarked from theports of Miami, Everglades, Canaveral, PalmBeach and Tampa in 2001. An additional 1.1 million passengers also boarded in SanJuan, Puerto Rico and non-US ports, primarilyVancouver and Montreal (Canada)(63).

Globally, while the Caribbean region is theprincipal destination with 44.5% share ofplacement, a significant percentage of theglobal capacity is allocated to other markets.These include Alaska, 7.9%, the Mediterranean,12.7%, Europe, 8.1%, the Trans-Canal (Panama),

(62) WTO, 2001:WorldOverview & Toursim Topics -2001.World TourismOrganisation. ProvisionalEducation.Tourism MarketTrends.(63) 2001 CLIA DestinationAnalysis, (Cruise IndustryOverview).

44 The cruise line industry

4.0%, United States West Coast, 3.3%, Hawaii,2.6%, and South America, 2.4%. Among theremaining destinations, the capacity for world,Transatlantic, Asia, Australia, Middle East andAntarctica cruises has more than doubledsince 1990.The social, environmental andeconomic sectors of these emergingdestinations will prove to be a challenge andan opportunity.(64)

The cruise industry has developed into asignificant economic contributor to the UnitedStates economy, including industry, agriculture,and the service sector. A study conducted in2001 by the Business Research and EconomicAdvisors (BREA)(65) concluded that in 2000,total economic benefit by the cruise industryand cruise-related activities was approximatelyUSD17.9 billion. Of this, the cruise industrycontributed USD9.4 billion in direct spendingfor the products and services of United Statescompanies.

The industry’s extensive economicrelationships include high-tech equipment,travel services, banking and insurance, textiles,technical services, dry-docking and shipyardrepair. Other major United States industriesthat benefit from the cruise business are theairlines, travel agents, food and beveragesuppliers and the business and service sectors.Total wages generated for United Statesemployees was USD8.7 billion.

As a result of these economic partnerships,the cruise industry is able to createemployment for thousands of United Statescitizens and support for state and localeconomies in all 50 states.The BREA studyestimates that in 2000, the cruise industrygenerated jobs for 257,067 Americans.

In the United States, capital expenditures bythe cruise lines more than doubled between1997 and 2000. According to BREA(66), thisgrowth required significant investment in newcruise ships and upgrading of the existing fleet.Other purchases by the cruise lines rose 30%.In total, spending in the United Statesassociated with the industry increased bynearly a third between 1997 and 2000, to USD9.4 billion.

While these economic benefits in the UnitedStates are substantial, there are also significantbenefits worldwide in the industry’s newemerging markets. By way of example, thecruise industry has significant impact inGermany, Finland and Italy due to theshipbuilding activities in those nations. Innations where tourism is encouraged, thecruise lines purchased services ashore(transportation, tour operations, supplies, etc)and many of the service sectors and localbusiness benefit from cruise ship touristsspending ashore.

(64) 2001 CLIA.(65) Business Research andEconomic Advisors (BREA),October 2001: Contributionof the North American CruiseIndustry to the Uniterd StatesEconomy in 2000. USA.(66) Business Research andEconomic Advisors (BREA),October 2001: Contributionof the North American CruiseIndustry to the United StatesEconomy in 2000. USA.

The cruise line industry 45

Passengers by area 1989 1991 1993 1995 1997 1999North America (millions) 3.29 4.00 4.48 4.40 5.05 5.89Europe (millions) 0.53 0.70 0.88 1.00 1.30 2.00Rest of the world (millions) 0.20 0.22 0.25 0.30 0.46 0.85Total (millions) 4.02 4.92 5.61 5.70 6.81 8.74Diem (millions) 27.74 32.96 36.47 38.72 47.23 59.47Beds (thousands) 81.00 100.65 114.11 132.53 160.10 194.39Beds. Day (millions) 28.34 31.98 36.25 42.10 50.86 50.89Occupancy (%) 97.88 103.09 100.59 92.01 92.85 97.66

Source: J.P.Wild, 2001

Global demand for cruises

Moreover, tourism activity can lead todevelopment of new markets for the productsof local artisans, which not only has both thesocial and economic benefit of additional localincome, but also helps preserve culturaltradition and identity. Although there has beensome concern that these economic gains intourist destinations are seasonal, it is clear thatthe markets involved are better off with thecruise industries financial input, and sufficientgrowth can more than compensate for theseasonal variation.

29.1 Economic contributionsThe cruise industry brings a burgeoningtourism economy to many ports around theworld.The importance of the social andeconomic opportunities cannot beunderstated. It has an effect on all sectors inthe port city and country.The cruise lines’presence, even on a seasonal basis, in portcities strengthens the economy for many localelements. In addition to local port user feesand head taxes and surcharges, cruise shipspurchase supplies and services such as pilots,tugboats, waste disposal services, fuel and freshwater at ports of call worldwide.

Visits by cruise ships generate hundreds ofmillions of dollars worth of business toattractions, restaurants, retail shops, shore touroperators and other businesses at ports ofcall. From local artisans and craftsmen toinfrastructure development such astransportation, all benefit from theexpenditures of the tourists that cruise shipsprovide. In some instances, foreign ports thatthe cruise industry decides to visit become aneconomic stimulus for host countries todevelop tourism and destination developmentprogrammes, involving local participation inproviding goods and services.

A 2001 study conducted for the Florida-Caribbean Cruise Association (FCCA) byPricewaterhouseCoopers (PwC) and BREA(67)

found that during the 1999/2000 cruise year inthe Caribbean, a typical cruise ship carrying2,000 passengers and 900 crew members

generated an average of $260,000 inpassenger and crew expenditures during anaverage port-of-call visit.

Other highlights of the PwC/BREA studyinclude:

• FCCA member lines’ passengers and crewaccounted for a total economic impact ofUSD2.6 billion throughout the Caribbean;

• cruise-related expenditures generated60,136 jobs, paying USD285m in wageincome to Caribbean residents;

• average cruise passenger spending perport-of-call visit was USD103.83 andaverage spending by crew was USD72.06;

• Caribbean cruise passenger capacity grewby 21.8% in the year 2000;

• almost 80% of cruise passengers reporteda high degree of satisfaction with thedestinations they visited, and many (51.6%)expressed an interest in returning to theports of call on a land-based vacationbecause of their cruise visit(68).

Cruise lines are continuously reviewing existingports of call for tour operation capabilities,investment opportunities for development andupgrades to passenger terminal facilities, andtotal customer satisfaction of the cruiseexperience.With the expectation that the highpassenger growth in the last decade willcontinue, the industry actively seeks newdestinations and often will contribute to thedevelopment of a new port facility seekingcalls from cruise vessels.

One example of this is a new port of call inMexico. Construction of that facility will be ajoint venture between the owner of a Mexicannature park and a cruise line, and whenconstructed will be able to handle four100,000 tonne ships simultaneously.Theterminal design will feature Mayan motifrelating to the local culture. An additionalexample is a recent investment by the industryin a Bahamian shipyard that will contributeskilled jobs into the local economy.

(67) PriceWaterhouseCoopers(PWC) and Business Researchand Economic Advisors(BREA), August 2001:TheCruise Industry’s EconomicImpact on the Caribbean.USA.(68) PriceWaterhouseCoopers(PWC) and Business Researchand Economic Advisors(BREA), August 2001:TheCruise Industry’s EconomicImpact on the Caribbean.USA.

46 The cruise line industry

30 Social dimensionsICCL cruise line members demonstrate acommitment to environmental excellence thatis embodied through their social responsibility.The industry promotes good stewardship ofthe marine environment through varyinginternal and external initiatives.They involvetheir crew members in reducing the number,volume and composition of chemicals used onships and work with them to identifyopportunities to reduce, reuse and recyclewhenever possible.

Cruise guests are educated on the importanceof using waste containers to ensure discardeditems do not go over the side. Not only isrecycling a part of the ships’ day-to-dayoperating procedures, but passengers are alsoencouraged to assist in the effort by usingspecial recycling bins located around the ships.The industry favours contracting with vendors,suppliers and service providers who havemade their own commitment to similarstandards for safety and health, as well ascontinuous improvement.

30.1 Social contributionsCruise lines generally donate to charitablecauses throughout the world, including theirlocal home ports and major ports of call.Thefollowing examples are just a brief overview ofcruise line efforts to promote localenvironmental stewardship.

• In 2001, FCCA cruise line memberspartnered with St. Lucia, and Nassau,(Bahamas), to conduct the annual FCCACaribbean Environmental AwarenessProject. As part of their ongoing effort tospread environmental awareness, thisproject is staged every year throughout theCaribbean. In Nassau, more than 100 crewmembers teamed up, and were divided upinto teams and given various tasks tobeautify a section of Lighthouse Beach asfollows:

- removing sand that had been blown on tothe walkway from past hurricanes,

- re-distributing the sand over the rocksthat had been exposed,

- development of a native tree gardenwith rock formations,

- white-washing the exterior of thebeach facilities,

- painting of concession stands for localvendors,

- construction of an obstacle course andplay area for children.

• Grants have been awarded to the Centrefor Marine Conservation and the WorldWildlife Fund, the Alaska SeaLife Centre,Bahamas Reef Environment EducationalFoundation, National Audubon Society andEarthwatch Institute.- the Centre for Marine Conservation is

using the Ocean Fund grant to expandits Caribbean Model Communitiesprogramme, which aims to reducemarine pollution and improve waste-management practices in Puerto Rico,the Bahamas, Bermuda and the UnitedStates Virgin Islands. Modelcommunities, using education andcitizen involvement to design localsolutions, focuses on recreationalboating and marina operations andcurbing coastal littering.

- the World Wildlife Fund’s MarineSteward Council launched in March2000 a public awareness campaign inthe United States, Europe and Australiato promote long-term sustainablefishing, using the power of consumersand the certification of fisheries.Through global use of the MarineSteward Council logo, seafoodcompanies and consumers will beencouraged to purchase fish only fromthose certified with environmentallyresponsible practices.

• Raised funds for flood relief efforts inCaracas, (Venezuela) after the country washit by devastating floods.

The cruise line industry 47

• Grants awarded to the University ofMiami’s Rosensteil School scholarshipprogramme, and establishment of studentand marine scientist laboratories on cruisevessels.

• Grants awarded for the protection of thecoral reefs off the Galapagos Islands.

• Nature Conservancy (Florida Key Initiative)was awarded a grant for its extensivevolunteer programmes to protect thebiodiversity of the coral reefs.

• Funds donated to the Turkish RedCrescent, the country’s national reliefagency, to benefit the country’s earthquakerelief efforts.

• Donations to the University of Alaska.These are used to help the university in its key educational initiatives such as the University of Alaska Scholars Program, academic programmes ininformation technology, natural resources,and arctic sciences.

30.2 Employment and trainingCruise industry employment providessubstantial opportunities for employees fromdeveloping nations. Approximately 85% to 90%of ICCL cruise industry employees are hiredfrom the international workforce. Many ofthese employees are from developing nationswhere employment is often limited anddifficult in terms of either opportunity orstability.Through cruise line employment, thesemen and women not only becomeeconomically independent, but in many casesdirect a portion of their income back to theircountry of origin through contributions tofamily members.This way, the cruise industrynot only provides a high level of economicopportunity for those who are employed,but also helps sustain these families in theirhome countries and feeds funds into local economies.

Moreover, a growing number of women acrossthe globe are finding economic opportunitieswithin the cruise industry.The devastatingeffects of poverty are particularly severe on

women in nations struggling with a weakeconomy and oppressive social and culturalfactors beyond their control.Women arerelegated to either very low-paying wages ornon-employment.Those women who areemployed by the cruise industry enjoypersonal autonomy from a sustained incomethat is not matched in their own country. Inessence, the cruise industry has providedopportunity for women to achieve increasedeconomic, social and cultural equality.

Another aspect of the benefits gained throughcruise ship employment lies in the value of theskills acquired in the course of work aboard aship.Training in new technologies, cross-culturalawareness, certification in managementpractices and hands-on experience bringsadded benefits to the employee.There arecomprehensive education and trainingprogrammes in place for crew members,primarily to ensure that there are notinadvertent violations of environmentalpolicies, and to heighten sensitivities toenvironmental issues.

When they return to their country of origin,the employees utilise their experiences,training and resources for the benefit of thelocal economy and fellow nationals.They alsodevelop a sense of empowerment andleadership that comes from pride in position,economic autonomy and the development ofcontacts with nationals of other countries.

The working and living environment that theemployee enjoys is clean, safe and controlledby international and United States laws. Room,board and medical care are provided by theindustry, as well as the ability to experienceinternational travel.The standard of medicalcare is excellent and usually far exceeds thatof their country of origin.

31 Environmental dimensionsICCL member cruise lines are dedicated topreserving the marine environment, and the

48 The cruise line industry

pristine condition of the waters upon whichtheir vessels sail, and demonstrate this by areduction of waste by over 50% over the pastdecade. As an industry that is based oncarrying passengers to locations where theycan experience and enjoy the beautiesprovided by nature or human achievements,ICCL members recognise that even aperception that the industry is not meeting relevant international and localenvironmental standards around the world isdamaging to their image and therefore theirbusiness prospects.

ICCL members have made a substantialinvestment in new building with over 32 shipsscheduled for delivery between 2001 to 2005.With a capital cost of USD12 billion, theindustry’s investment in the future issubstantial.With these realities in mind, ICCLmember cruise lines have establishedstandards regarding environmental practicesand ship safety. In the past, initiatives such asICCL’s Waste Management Practices andProcedures were strictly voluntary guidelines.The member lines of ICCL have agreed toadhere to these as standards, thusdemonstrating the commitment of itsmembers to protecting the safety and healthof people on-board cruise ships, as well as themarine environment. ICCL members believethat these self-imposed voluntary industrystandards meet or exceed all requirements ofthe law wherever ICCL ships operatethroughout the world.

31.1 ICCL Environmental StandardsThe Cruise Industry Waste ManagementPractices and Procedures document wasunanimously adopted by ICCL membership inJune 2001, as an attachment to ICCLMandatory Environmental Standard(69) (seeAnnexe 9).The procedures enumerated in thisdocument have been incorporated into allICCL member lines’ operating policies using asa vehicle, the requirements of the InternationalSafety Management Code (ISM), which is amandatory chapter of SOLAS.This is the first

time an association of international vesseloperators has adopted mandatory wastemanagement practices and procedures.Compliance with this comprehensiveenvironmental standard is now a condition ofICCL membership.

The goal of this initiative is to embrace themost advanced technology and procedures inorder to establish a leadership position inenvironmental compliance and reduce theindustry’s environmental impact.This decisionhas far-reaching implications in sectors of theworld where marine and shore environmentsare intricately linked to the social, commercialand economic status of its inhabitants.

The goals and objectives are set by theEnvironmental Committee of ICCL, which iscomprised of representatives from all 16member cruise lines. As a sign of theircommitment, ICCL members continuouslyseek out and test new environmental andsafety technologies. In keeping with thiscommitment, numerous ICCL members haveinvested millions of dollars to purchase andfield test new advanced technology ingraywater and blackwater (sewage) treatment.These advanced treatment systems, when fullydeveloped and proven, are expected toremove sediments and impurities fromshipboard waste water streams to the pointthat the output is essentially clean water.Thisclean water may then be reused or dischargedwithout fear of any environmental impact.

Additionally, ICCL member lines areinvestigating new technologies for dry-cleaningoperations, photo processing, and digitalimaging in order to reduce the production ofhazardous waste. New on-board incinerationsystems are being investigated to improve theefficiency and cleanliness of on-board disposalof waste that cannot be recycled or reused.

The industry has also developed relationshipswith state and local officials in variouscommunities on which it calls to establish co-

(69) ICCL Industry StandardE-01-01. (See Annexe 9)

The cruise line industry 49

operative relationships and to demonstrate itscommitment to solving environmentalchallenges. For example, in Alaska, ICCLmembers have paid for waste water and airmonitoring and have committed to dischargingwastewater only when a vessel is underway ata speed of at least six knots, and away fromport. ICCL members are committed tocontinuous improvement.Through thiscommitment, ICCL members have endorsedpolicy goals based upon the followingfundamental principles:

• full compliance with applicable internationallaws and regulations;

• maintaining co-operative relationships withthe regulatory community in the UnitedStates and internationally;

• designing, constructing and operatingvessels so as to minimise their impact onthe environment;

• embracing new technology;• conserving resources through purchasing

strategies and product management;• minimising waste generated and maximising

reuse and recycling;• optimising energy efficiency through

conservation and management;• managing water discharges;• educating staff, guests and the community.

The mechanism for accountability is establishedby placing the Mandatory Standards into eachcompany and ship’s Safety Management System(SMS).The requirement for a SMS is detailed inthe ISM Code, which was mentionedpreviously. Additionally, the ISM Code requiresannual internal audits of the SMS, as well as bi-annual third party audits conducted by arecognised auditor named by the vessel’s flagstate as acceptable for performing this task.Theresults of compliance audits for each vessel arearchived and may be made available toappropriate enforcement entities upon request.

The Cruise Industry Waste ManagementPractices and Procedures document also formsthe basis for a memorandum of understanding

(MOU) between the State of Florida and theFlorida Caribbean Cruise Association (FCCA)that was signed 6 December 2001. It has beenutilised in discussions with federal agenciessuch as the United States Coast Guard andthe United States EPA, as well as the AlaskaDepartment of Environmental Conservation(DEC) and legislators in Washington, Alaskaand California. As technology develops, ICCLwill recognise additional acceptable practicesthat will be incorporated into this livingdocument.

It is important to the industry to establishpartnerships with governments.The ICCL’ssuccess has been based on continuingpartnerships with government agencies andlocal communities. ICCL members haveinvested a large amount of time and resourcesto initiating and continuing the partnershipwith United States Coast Guard, jointenvironmental studies with FloridaEnvironmental protection Agency (EPA) andMOU with the Florida Department ofEnvironmental protection (DEP) in order tocontribute to the objective of sustainabletourism development. Additionally, ICCL hasworked toward sustainable inter-relationshipswithin the port cities visited by its members.The importance of a continued, open dialoguebetween the industry and the host countriescannot be overstated.

In response to a petition from a number ofenvironmental groups, United States EPAdeveloped an action plan to evaluate cruiseship wastewater discharges as well as theindustry’s environmental operating practices.Public meetings were held in Juneau, (Alaska),Los Angeles, (California) and Miami, (Florida)as a part of EPA’s evaluation process. As a co-operative partnership issue, the United StatesCoast Guard together with ICCL, co-hosted atwo-day workshop for United States EPA,other federal officials, cruise industry segmentsand public environmental advocacy groups.

50 The cruise line industry

This forum focused on the practical applicationof the international regulatory regime andother aspects of environmental managementpractices adopted by ICCL vessel operators. InAugust 2001, United States EPA sampledwaste water discharges from cruise ships andwill utilise this research to determinedispersion patterns and, in turn, environmentalimpacts of cruise ship waste water discharges.This effort is being conducted with the fullsupport and co-operation of ICCL members.

ICCL welcomes the opportunity todemonstrate global adherence to these bestpractices, and responsibility to environmentalpreservation. ICCL knows of no othersegment of maritime industry that will bewilling or able to meet these types ofstandards. Indeed, ICCL is raising the bar forglobal environmental performance in maritimeindustry.

31.2 Health and safetyIn the 1970s, because of several gastro-intestinal illness outbreaks on cruise vessels,the United States Centre for Disease Control(CDC) established the Vessel SanitationProgramme (VSP) as a co-operative activitywith the cruise ship industry.The programmeassists the cruise ship industry in fulfilling itsresponsibility for developing and implementingcomprehensive sanitation programmes, inorder to minimise the risk for gastro-intestinaldiseases. ICCL has embraced this programmeto ensure health and safety on-board cruiseships.

Health and safety is built into every aspect of acruise ship beginning at the vessel’s designstage. CDC, in partnership with the cruiseindustry and the shipyards, developedconstruction guidelines for the variouscomponents of the vessel’s facilities that arerelated to public health.These include foodstorage areas, refrigerators and freezers, foodpreparation service and serving areas, waterbunkering, storage, disinfecting, and distributionsystems, the construction of pools and spas,

and many other aspects of ship construction.Experts from the CDC and the cruise industrycompleted the latest revision of the guidelinesin August 2001.

Every vessel that has a foreign itinerary, carries13 or more passengers, and calls on a UnitedStates port, is subject to unannounced bi-annual inspections and, when necessary, to re-inspection by VSP staff.The vessel owner paysa fee, based on tonnage, for all inspections.Currently, over 140 cruise ships participate inthe programme.The inspections areconducted by Environmental Health Officers(EHO) of the United States VSP, and takeplace only in United States ports.Theinspection focuses on the following: the ship’swater supply, spas and pools, potential for foodor water contamination, practices and personal hygiene of employees, general cleanliness andphysical condition of the ship, and theenvironmental and public health practicestraining programmes.

Since the programme began, the number ofdisease illness outbreaks on ships has declinedsignificantly despite substantial growth in thenumber of ships sailing and the number ofpassengers carried.

Cruise ship companies frequently ask the VSPstaff to help them improve their on-boardsanitation efforts. Since December 1989,VSPstaff has offered sanitation seminars four timeseach year for shipboard personnel.Theseseminars bridge the communication gapbetween government regulators and shipboardpersonnel by explaining recommendedstandards, emphasising the reasons for them,and discussing how to comply with them.Topicscovered are: the storage, distribution, protectionand disinfecting of a ship’s water supply,protection of food during storage, preparation,cooking, and service, employee practices andpersonal hygiene, general cleanliness, facilityrepair, vector control, and potential forcontamination of food and water.

The cruise line industry 51

This programme is also a global trainingenvironment for the shipboard employeesfrom developing nations. Education, hands-ontraining and practical application in sanitationand the reduction of the risk of disease areskill sets that are applicable in their homecountries.This training is often not available inthe developing world or there are constraintsdue to the lack of trained professionalsavailable. Often cruise ship staff attainleadership status in their communities as adirect result of being exposed to advancedtraining and practical experience opportunities.

31.3 SafetyOver the past two decades, an estimated 60 million passengers enjoyed a cruisevacation. During this period, not one passengerdeath due to a marine incident (such as a fire,collision, or grounding) occurred on any ICCLvessel operating from a United States port.This enviable safety record is the direct resultof the important focus that is placed in thisarea. Of course, the cruise industry cannot becomplacent; ICCL constantly investigates waysto improve its performance.

This excellent safety record demonstratesICCL members’ commitment to safety. In l996,the United States Coast Guard published acomprehensive cruise ship safety study, whichconcluded that the industry was one of thesafest modes of transportation available andthat international safety initiatives coming intoforce would further improve its safety record.As reported by this task force, many SOLASrequirements ‘are now significantly morestringent than United States regulations.(70)’Thisis especially true with regard to fire protection.

No other form of transportation (bus, train, oraeroplane) can claim to be as safe as avacation cruise or provide as extensive fireemergency and life support systems. If a cruiseship sails from a United States port, the UnitedStates Coast Guard has conducted an in-depthexamination of that ship for safety.The UnitedStates Coast Guard reviews the ship plans for

compliance with construction requirementsand then visits the vessel while underconstruction to assure it is properly built.TheUnited States Coast Guard also verifies theadequacy of crew training through observationof drills, examination of documentation, andinterviews with officers and crew.

To assure compliance with safety regulations,the United States Coast Guard exercises port-state control authority over foreign flag cruiseships operating from United States ports.Other maritime agencies exercise port-statecontrol under similar programmes in the portswhere they have jurisdiction.The United StatesCoast Guard, in accordance with its ControlVerification Examination (CVE) programme,conducts quarterly inspections on all vesselsembarking passengers at United States ports.The examinations focus on fire safety systemsand life saving equipment and their safety andenvironmental protection items. Additionally,the United States Coast Guard witnesses fireand abandon ship drills to ensure crewproficiency.The average response time for anon-board emergency is within a matter ofminutes – fire teams and trained emergencyand medical crews are always only a fewhundred feet away.

The formalised partnership with the UnitedStates Coast Guard has resulted in meetingson a regular basis both at the executive andtechnical levels to discuss emerging safetyissues and recent passenger vessel initiativesadopted or under consideration at IMO.Thepartnership has planned and co-ordinatedjoint emergency preparedness exercises toensure the effectiveness of responsecapabilities, has worked on methods to identifylessons learned from past marine casualties,and has instituted crew training policies inresponse to STCW.

ICCL believes this partnership is a productiveway to exchange information on theoperational impacts of proposed policies aswell as identification of resources required to

(70) October 31, 1995:Report of the Cruise ShipSafety Review Task Force. U.S.Coast Guard.

52 The cruise line industry

respond to various types of vesselemergencies.The partnership between ICCLand the United States Coast Guard has been afactor in the establishment of industrystandards for lifejackets in excess ofinternational requirements, infant personalflotation devices, and helicopter pick-up areas.

31.4 Passenger securityThe highest priority of the cruise industry is toprovide a safe and secure vacation experiencefor our passengers.The cruise industry takesany and all cases of reported crimes on-boardour ships seriously. Every person on-board acruise ship, from the captain to the cleaningstaff and all guests, is placed on an officialmanifest. Passengers and crew may embark ordisembark only after passing through security.Access is strictly limited to documentedemployees and fare-paying passengers.

Most importantly, since 11 September 2001,the cruise industry has heightened its securitymeasures both on and off the vessel in orderto provide the most secure environment forits passengers and crew. Even though a cruiseship is inherently secure because it is acontrolled environment with limited access,immediately following the terrorist attacks allICCL members implemented Security Level III,even before the United States Coast Guard(USCG) ordered it.

Security Level III is the highest level of securityset by Coast Guard Passenger Vessel Securityregulations. At United States cruise terminals,passenger vessel security measures includepassenger screening procedures similar tothose found at airports.This includes l00%screening of all passenger baggage, carry-onluggage, ship stores and cargo, and alsoincludes higher levels of screening of passengeridentification. Official passenger lists arecarefully reviewed and proper identification isensured before anyone is allowed to boardthe vessel.

Coast Guard regulations implemented in l996require ship operators to submitComprehensive Security Plans to the USCGfor review and acceptance.These regulationsaddress both passenger ship and passengerterminal security and outline methods to deterunlawful activities on-board. All ICCL memberlines have submitted security plans that havebeen accepted by USCG and these plans areaudited annually.Since l998, ICCL and its member operatorshave been members of the United StatesInteragency Task Force on Passenger VesselSecurity.This group meets every 60 days todiscuss emerging security issues, receiveupdated threat information, and addressspecific security concerns. Since 11 September2001, ICCL Security and OperationsCommittee members have efficientlycommunicated and resolved problems in dailyconference calls with all of the appropriatefederal agencies.This information exchange hasproven to be valuable both to our memberlines and the federal agencies involved as wemutually address matters impacting both shipoperations and security.We are committed toproviding the highest levels of security for ourpassengers and to working with appropriatefederal agencies to address additional securitymeasures that may become necessary.

Cruise lines operate within a very strict legalframework that gives international, federal andstate authorities the right to investigate crimeson-board cruise ships. Unlike most instances ofcrime ashore, the United States FederalBureau of Investigation (FBI) has the authorityto investigate alleged crimes in internationalwaters when an American is involved. In July1999, ICCL executives announced an industry-wide position regarding the reporting ofcrimes committed on-board cruise ships.Thisstatement of zero tolerance for any crimecommitted on-board ICCL vessels requires thereporting of all serious crimes involving UnitedStates citizens to the FBI for furtherinvestigation.

The cruise line industry 53

Incidents of criminal conduct are extremelylow in comparison to similar incidentsreported ashore. FBI and United States CensusBureau statistics indicate that the numbers ofreported crimes in United States communitiesare at least 20 times greater than the numberof reported shipboard assaults per capita.Thislevel of security is carried on ICCL’s ships asthey travel around the world and visit theports of many countries.

31.5 Medical facilitiesThe cruise industry has taken a proactive rolein addressing the provision of shipboardmedical care. Over five years ago, members ofICCL began work on development ofindustry-wide guidelines for the medicalfacilities, staffing, equipment and proceduresutilised on-board passenger vessels.Then, in1996 it issued guidelines that represented thework of a group of experienced medicalphysicians and other medical expertsknowledgeable about the unique needs andlimitations of shipboard medical care.

During this effort, ICCL worked in conjunctionwith the American College of EmergencyPhysicians (ACEP), the national associationrepresenting over 20,000 practising emergencyand other physicians in the United States andabroad. ACEP’s Section of Cruise Ship andMaritime Medicine are specifically dedicated totraining, education and research in theadvancement of shipboard medical care.

Medical Facilities Guidelines are intended tofoster the following goals to providereasonable emergency medical care forpassengers and crew on-board cruise vessels,to stabilise patients and/or initiate reasonablediagnostic and therapeutic intervention, and tofacilitate the evacuation of seriously ill orinjured patients when deemed necessary by ashipboard physician.

Both ICCL and the cruise industry havecontinued to promote enhancements in theirguidelines. Each year, ICCL medical facilities

experts meet with the ACEP Cruise ShipMedicine Section to discuss new developmentsas well as to update guidelines in this area.

31.6 Accessibility for persons withdisabilitiesSubsequent to the passage of the Americanswith Disabilities Act (ADA), the PassengerVessel Access Advisory Committee (PVAAC)was empanelled by the United StatesArchitectural and Transportation BarrierCompliance Board to make recommendationsfor the development of regulations that wouldimprove accessibility for persons withdisabilities on-board passenger-carrying vesselsICCL participated in all discussions.ThePVAAC report was presented to the board inMiami on 17 November 2000.

In the meantime, ICCL cruise members haveincluded new and innovative ideas andtechnologies in their newly constructed shipsand have, in most instances, modified olderships to provide improved access to all publicspaces for guests with many different types ofdisabilities – not just the mobility impaired. Allthis has been done at the initiative of thecruise vessel operators without detailedregulation.

32 Future challenges and goalsThe international cruise industry has aremarkable story of success and achievementin a number of sectors, not the least of whichhas been our safety record, particularly for the16 cruise line members of ICCL.This successcould only have been achieved through theteamwork with industry partners and theinnovation, energy and devotion of many verytalented individuals.

Moreover, because there is a mutualinterdependence between the cruise lineindustry and the countries visited by its ships,there is a bright future. As the industry grows,so will the issues and challenges that it faces.

54 The cruise line industry

Issues that the industry will be focusing on inthe future include safety, environmentalmanagement, and continued productenhancements. As the ships become morecomplex, and the locations visited becomemore distant, the sophistication of cruisingoperations will grow exponentially.Throughprivate-public sector relationships, solutionscan be devised for all issues and challenges. Asglobal leaders in the maritime industry, themembers of ICCL will always be at the cuttingedge in the utilisation of new technologies.

As passenger demand increases and the cruiseindustry continues to grow, ICCL and itsmember lines will continue to participate inthe development of new IMO safety initiativesthat govern the operation of cruise vesselsworldwide. Over the past several years, IMOhas adopted several new internationalregulations that significantly enhance passengervessel safety.These comprehensive IMOregulations established stringent new standardsthat require significant fire safety upgrades fornew and existing vessels, adopted advancedcrew safety training requirements, and requiredall vessels to implement a specified safetymanagement system that delineates crewresponsibilities and establishes mandatorycodes of practice.These are internationallymandated by the United States government;both flag-state and port-state authoritiesclosely monitor standards, and treaties areadopted throughout the world.

33 SummaryICCL is dedicated to responsibleenvironmental management and protection ofglobal natural resources. Regulation bygovernments and international organisations isincreasingly influenced by communities andlocal bodies directly participating in policymaking. ICCL is committed to working inpartnership with United States EPA, UnitedStates Coast Guard, other international, federaland state environmental protection agenciesand public environmental advocacy groups

such as the United Nations, the OceanConservancy, and Ocean Advocates to findproductive solutions to the very real issuesthat confront us on a daily basis. ICCL strivesto inform the public that the cruise industry isdedicated to preserving the marineenvironment and the oceans upon whichcruise vessels sail.

Cruising is one of the most popular vacationoptions in large part because of its excellentsafety record and the high level of qualityservice provided on-board cruise ships. ICCLwill continue to work to ensure the safety andwell-being of all passengers and crew on-board cruise vessels, as well as the pristineenvironments visited by ICCL’s members’ ships.

The cruise line industry 55

56 Tourism

The World Summit on SustainableDevelopment (WSSD) will bring togetherrepresentatives from governments, concernedcitizens, UN agencies, multilateral financialinstitutions and other major groups.Thepurpose of the summit is to provide a forumto engage all stakeholders in sustainabledevelopment in a constructive and informativedialogue.The summit also provides anoccasion to bridge the gap between thesevarious stakeholders – who are all ultimatelyresponsible for the future of the planet.

Tourism is one of the industry sectors UNEPwas requested to report on at WSSD.Thetourism industry agreed to be a part of theprocess and has written this tourism industryreport charting the progress and priorities forthe sustainable development of the industry.

To ensure the report offers an open, self-critical assessment of the industry the authorsagreed to be part of a multi-stakeholderdialogue.The authors of the tourism industryreport participated in a consultative meetingon 3 October 2001, in Paris, withrepresentatives from invited NGOs, tradeunions, the International Labour Organisation(ILO), the WTO/OMT and other chosengroups (see Annexe 10 for full list ofdelegates).This provided an open forum for afrank and honest assessment of the reportduring which many suggestions were made tothe industry partners.

Taking the multi-stakeholder approach onestep further, the steering committee alsoagreed to post the draft report on the UNEPWeb site for one month. All concerned partieswere invited to participate in this consultativeprocess by reviewing the report andforwarding their written comments to theauthors.

One of the criticisms from the stakeholderswas the lack of case studies, statistics and harddata in the report. For every negative casestudy there is a positive one and the lack ofhard data available makes examples verysubjective.The authors therefore decided toreduce the amount of case studies andconcentrate instead on the major issues facingthe industry.The report has not mentionedthe airline industry because they have co-ordinated their own report under ATAGthat looks in detail at the impacts the airlineindustry makes and its specific contribution tosustainable development.

Many valid points were made during thisprocess and many of these have now beenincorporated into the main text.There areother avenues and processes that are lookingat sustainable development topics in greaterdetail and other international bodies areconducting similar research. However, thereare some areas that have been mentioned buthave not been examined in more detail in thisreport.These issues include the following:

• NGOs are concerned that further workneeds to be done to fully evaluate theimpacts of tourism in developing countries.There are significant variations in the issuesof sustainability between ‘the north’ and‘the south’ and between developed anddeveloping countries, which often requiredifferent approaches;

• further attention has been requestedtowards issues such as human rights, labourrights, water rights, religious rights, childlabour and indigenous people;

• solutions to the shortage of skilled labour,training and human resources developmentare among the highest priorities for theindustry, and are being explored further;

• there is disagreement as to whethertourism is a victim of the consequences ofglobal warming or a contributor to it;

Open for dialogue 57

Part 6: Open for dialogue

• non-industry stakeholders urge theindustry to set minimum and optimumlevels of sustainable development thatoperators need to achieve using specificperformance indicators and to involvedifferent stakeholders in this process;

• there is a need for clarity as to the extentto which the industry is committed to localpartnerships for development and theempowerment of local communities;

• NGOs would welcome more detail onissues such as energy, water, sensitiveecosystems, and contributions toconservation of biological diversity andprotected areas and internationalenvironmental regulations through theGeneral Agreement on Trade in Services(GATS) and WTO;

• the question of transparency andmonitoring of the tourism industry’sactivities is still open and needs to befurther addressed.

This final report, however, cannot and will notsatisfy all stakeholders’ concerns. It was neverdesigned to do so. It is an industry report,written and researched by industryrepresentatives. Its purpose is not to reflectthe many views of all the differentstakeholders, who have other designatedchannels for expressing their views at WSSD.Nor does it provide perfect solutions for traveland tourism, or have all the answers to someof the pressing problems of real concern tothe industry.The steering committee and theindustry as a whole are well aware that thereare still major challenges ahead to ensurepreservation and protection of our naturalresources and local and indigenouscommunities.

However, this tourism industry report and theconsultative process it went throughdemonstrates the industry’s willingness toengage in an open, self-critical assessment withall groups involved in travel and tourism. It isnow time for everyone to share in theresponsibility of maintaining and sustaining thenatural resources essential to tourism’s veryexistence instead of each stakeholder blamingthe other. Just as all should share the benefitsthat can be accrued from travel and tourism,so all, from consumers to governments, shouldstart taking responsibility for their actions inthis industry.

The authors of the report believe that the co-operative and constructive discussion at themeeting in October bodes well for thebeginning of a new approach to sustainabledevelopment.The industry is aware andresponsive to both the negative and positiveimpacts it makes on countries and destinationswhere it operates and sees this frank andopen approach as a watershed for the wayforward for travel and tourism.

The industry stands ready and willing to takethe initiative to work in partnership with allinvolved. It is now vital to engage allstakeholders, industry, governments, non-governmental organisations, unions, consumersand UN organisations in constructive dialogue.

The ultimate goal for the industry is for traveland tourism development to become fullysustainable and beneficial for everyone. Majorprogress towards this goal can be achievedduring the next decade if all stakeholderswork together in partnership. Moreover,practical and feasible sustainable developmentpolicies must be adopted by industry andgovernments alike – policies that can and willensure the future of travel and tourism andthus sustain the natural resources and localcommunities of the planet.

58 Open for dialogue

Annexe 1 59

Tourism satellite accounting, estimates and forecasts

Annexe 1: World Travel & Tourism Council (WTTC)

WORLD Estimates for Percent of Forecast for Percent ofyear 2001 USD total year 2011 USD total

Travel and tourism industryGDP 1,381.5 billion 4.2 2,654.4 billion 4.2Employment 78,183,400 million 3.1 99,321,700 million 3.4Travel and tourism economyGDP 3,497.1 billion 10.7 6,958.3 billion 11.0Employment 207.062 million 8.2 260.417 million 9.0

EU Estimates for Percent of Forecast for Percent ofyear 2001 USD total year 2011 USD total

Travel and tourism industryGDP 397.3 billion 4.8 784.7 billion 4.9Employment 7.7 million 4.9 8.8 million 5.3Travel and tourism economyGDP 1,017.2 billion 12.2 2,063.2 billion 12.9Employment 19.3 million 12.3 22.9 million 13.9

Annexe 2: World Travel &Tourism Council(WTTC):Sustainability initiatives

WTTC has focused much of its resources overthe past decade on ensuring that the traveland tourism industry is accountable for itsimpact on the natural environment and that it accepts its social and culturalresponsibilities. Examples of WTTC initiativesinclude the following:

Agenda 21In 1996,WTTC,WTO/OMT, and the EarthCouncil together launched Agenda 21 for theTravel and tourism Industry:TowardsEnvironmentally Sustainable Development – asectoral action plan for sustainabledevelopment based on the outcome of theRio Earth Summit in 1992. At the time it was the only industry-specific adaptation ofAgenda 21.

Seminars and conferencesWTTC, often partnering with WTO/OMT, hasparticipated in seminars and conferencesaround the world disseminating Agenda 21 forthe travel and tourism industry andencouraging sustainable practises.

Green Globe 21In 1994,WTTC established ‘Green Globe’, avoluntary environmental managementcertification programme designed specificallyfor the travel and tourism industry. In 1999Green Globe became an independentorganisation that now offers a wide range ofenvironmental support services to itsmembers. Green Globe 21 and the Council work on joint initiatives under astrategic alliance.

ECoNETTIn December 1995,WTTC and DGXXIII ofthe European Commission commenced a joint

project to develop an information network fortourism and the environment – ECoNETT –the European Community Network forEnvironmental Travel & Tourism.The ECoNETTgoal is to increase overall awareness ofsustainable travel and tourism and in turnstimulate changes in management practices, indestinations and corporations to achievesustainable travel and tourism development.This is being achieved by making informationavailable on good practice, codes of conduct,activities of experts and organisations.

DodoEducation is vital to securing a sustainablefuture. People’s perceptions and behavioursare formed from a very early age andenvironmental awareness about best practicesfor travellers, tourists and the host communityshould start early too.The Dodo programme,developed by Cohesion and supported by theWTTC and the United Nations HighCommissioner for Human Rights, targets ayoung audience and acts as an educationaltool, introducing a range of nature-related andenvironmental topics.

It is designed to raise awareness and educateon important issues concerning theenvironment and on human and children’srights. In addition to a television series,teaching children of the consequences ofhuman activity on the environment, Cohesionhas partnered with many hotels, airlines andtour operators to remind guests of thecontribution they can make to environmentalsustainability.

Business Enterprises for SustainableTravel (BEST)BEST is an initiative of the Conference Board,one of the world’s premier businessmembership and research network, inassociation with WTTC. Since its inception in1999, BEST has gathered information on over500 businesses in its expanding database. Itprovides information and services to the travelcommunity on business practices that

60 Annexe 2

simultaneously enhance destinationcommunities, travellers’ experiences andeconomic development.

Caribbean Alliance for Sustainable Tourism Caribbean Alliance for Sustainable Tourism(CAST) is an alliance for sustainable growthdeveloped by the Caribbean HotelsAssociation with the support of WTTC, theInternational Hotels Environment Initiative andthe Caribbean Tourism Organisation. Itdevelops training workshops and materials forits members on themes such as environmentalmanagement systems, energy efficiency andwastewater management.

Sustainability Policy CentreThe co-operative research centre forsustainable development which links 14universities and research centres in Australia,advises WTTC on an ad hoc basis on issuesrelating to sustainability in travel and tourism.

Annexe 2 61

Annexe 3: World Travel &Tourism Council (WTTC)Private sector initiatives from WTTC members

Lusotur In August 1996, the CEO of Lusotur, AndréJordan, presented the ‘Vilamoura XXI’ vision.This was an innovative revaluation projectproposal based on international standards ofcreativity, quality and value. EnvironmentalManagement Systems were implemented andare certified according to the Green Globeand ISO 14001 standards in order to monitorand control the environmental impact of itscorporate activities.

Although the whole of Vilamoura (Portugal) isbeing developed and managed the mostenvironmentally correct way, the protection offlora and fauna is a current concern. Inresponse, the Vilamoura Environmental Parkwas officially inaugurated in 1999 exclusivelydedicated to the protection and increase ofhabitats and environmental capacities.Theseefforts made by Lusotur have beeninternationally recognised with awards andhonourable mentions including the UN andOECD environmental reports 1999 and 2001.

Japan Travel Bureau (JTB)JTB joined the founding members of TourOperators’ Initiative for Sustainable TourismDevelopment, which was advocated by theUNEP and officially adopted on 12 March2000 in Berlin. JTB has been constantlyendeavouring to enlighten their clients forbetter understanding of the importance ofsustainable development, as well as thepreservation of the natural, cultural and socialenvironment. JTB has been involved insustainable development projects for morethan 15 years and its activities include ‘Clean-up Campaigns’, which invite volunteers toclean up major tourist spots in Japan.

Apart from the UNEP initiative, in December1999 its 100% subsidiary tour operator, JTBWorld Vacations, was the first travel firm in theworld to acquire the ISO14001, whichregulates environmental objectives in day-to-day operations.These guidelines haveestablished the environmental policy of JTBWorld Vacations and has been mentioned inthe UNEP’s ‘Good Practice Report’November 2001.

British Airways (BA)British Airways has been a consistent leader inengagement with environmental issues.Theairline has received a number of relevantawards: for reporting; for environmentalstewardship; and for its outreach programmes.One of the two initial sponsors of Green Globein its WTTC days, the airline’s commitment toresponsible tourism has developed through TheBritish Airways Tourism for Tomorrow Awards,which are now the leading recognitionworldwide for environmental and socialresponsibility in the tourism industry.Theprogramme has attracted over 1,000 entriesfrom more than 60 countries.

British Airways Holidays activities have includeda successful traveller donation scheme, audits ofhotels and identification of those withappropriate ‘green’ criteria, and, more recently,involvement in the UNEP Tour Operator’sInitiative. BA and BA Holidays have beeninvolved in the instigation and development ofthe current Sustainable Tourism Initiative of theUnited Kingdom Foreign and CommonwealthOffice.

Taj HotelsThe Taj has been at forefront in sustainabledevelopment in India, adopting what it terms‘Green Technology’.The Taj Group utilisesalternatives which reduce energy consumptionand reliance on fossil fuels, eliminates the useof ozone-depleting substances, and promotesreduction in use of non bio-degradablematerials, while implementing wastewatertreatment and reuse of water, use of solar

62 Annexe 3

energy, use of environment-friendly detergentsin laundries and vermiculture.

Key measures and programmes that have beenadopted group-wide are CFC-free air-conditioning, chlorine-free water treatmentand energy-saving lighting.The Taj Group ofHotels set up ‘ECOTAJ’, a movement tostandardize environmental-friendly practices inthe company, in 1996.The Environmentalpolicy of Taj is programme specific and meetsall aspects of the ISO 14001 framework.To motivate staff and involve guests andcommunity, many environment programmesare also conducted periodically across the company

Preussag The Preussag group is directly involved inhands-on environmental protection projects.Preussag’s subsidiary,TUI, introduced brochurescontaining a wide range of information onnature and the environment, as well aspromoting hotels that are environmentallyfriendly. In collaboration with localorganisations, hoteliers and environmentalprotection groups,TUI Group Service activelyprotects and conserves the local environmentincluding the reforestation of endangered tree species and the protection of endangered animals.

TUI also awards its annual ‘InternationalEnvironment Prize’ to individuals, NGOs orregional environmental initiatives which havemade important and exemplary contributionsto the protection and conservation of natureand the environment at TUI destinations.The‘TUI Environment Champion’ award is amotivational instrument awarded tooutstanding, environmentally-friendly hotels.Other Preussag subsidiaries such as ThomsonTravel, Hapag-Lloyd airlines and cruises andBritannia Airways are also heavily committedto sustainable development.

Annexe 3 63

Annexe 4: HospitalityAgreement between IUF andthe Accor Group on tradeunion rights

The Accor Group and IUF(71):

• Noting that, in the global economy, allsocial and economic progress is contingentupon the maintaining of a society based ondemocratic values and respect for humanrights.

• Further noting that the hotel industryneeds peace and social consensus in orderto grow.

• Being committed, therefore, to work in thisdirection, above all by the examples theyset.

• Recalling the basic right of each employeeto be represented and defended by aunion of his or her choice.

• Recognising the reciprocal legitimacy of theother party and its right to intervene inboth social and economic affairs, whileboth retain their own responsibilities, tothe extent that they comply with applicablelaws, contracts or collective agreements.

• Are therefore convinced that reinforcingdemocracy in the group is the duty of bothparties and that this implies both therecognition of differences over ways andmeans as well as the search for solutionsthrough collective bargaining.

• Further note that this goal requires, for itsachievement, effort at educating andinforming the employees concerned andtheir representatives so that they canbetter understand the problems,constraints and challenges faced by the company.

In this spirit, the Accor Group and IUF shallundertake to:

1) Verify the faithful application by all Accorestablishments of ILO Conventions 87, 98and 135, pertaining respectively to:• the right of employees to affiliate to the

union of their choice;• the protection of employees against all

acts of discrimination that tend toviolate freedom of association;

• the protection of employeerepresentatives against any measuresthat could harm them, includingdischarge, motivated by their status or activities as employeerepresentatives, in-so-far as they act incompliance with applicable laws,contracts or agreements.

The Accor Group therefore undertakes not tooppose efforts to unionise its employees.TheAccor Group considers respect for unionrights to be part of the good reputation of itsbrand names:

2) Encourage the management of subsidiariesand entities to allow union representativesto carry out their mandates and to haveaccess to the same opportunities fortraining, pay increases and advancement asall other equally-qualified employees.

Both parties agree that any differences arisingfrom the interpretation or implementation ofthis agreement will be examined jointly, for thepurpose of making recommendations to theparties concerned.The French version of thisagreement shall be the point of reference.

(71) Agreement between theIUF and the Accor Group onTrade Union Rightshttp://www.iuf.org/iuf/accor/turight.htm

64 Annexe 4

Annexe 5: HospitalityExemplary EMS

Six Continents Hotels (formerly BassHotels & Resorts)

Six Continents Hotels, a subsidiary of SixContinents Plc (formerly Bass) operates over3,000 hotels worldwide. Its principal brandsinclude Holiday Inn, Crowne Plaza and Inter-Continental Hotels.

Through its Conserving For Tomorrowprogramme, operational in 1,100 participatinghotels, it saves seven million gallons of waterand 46,920 gallons of detergent every month,by washing sheets and towels every three daysinstead of daily. Other measures taken byparticipating hotels have procured thefollowing benefits:

• a hotel in Mexico achieved 20% savings inenergy costs by placing presence sensors inguestrooms to control air-conditioning andlighting;

• a hotel in Turkey reduced its energyconsumption costs by over USD71,500 byadjusting its automated temperaturesettings;

• a hotel in Canada saved USD65,000annually in recognisable costs, of whichover USD30,000 per year are thoseassociated with waste-disposal and laundry.

Six Continents’ owned and managed hotelsuse environmental self-audits to measureenergy and water conservation, wastemanagement, water quality, product purchasing,indoor air quality, external air emissions, noise,stored fuel, pesticides and herbicides, andhazardous materials (including asbestos).Further initiatives include the presentation ofan annual environment award, publication of acorporate environment report every twoyears, development of a comprehensive guideto energy management, and a standardisedenvironment self-audit form.

Golden Tulip HotelsGolden Tulip Hotels has 67 owned hotels andadditional franchised and licensed propertiesall over the world.

It launched a corporate environment effort in1997 starting from the bottom with theappointment of ‘green teams’ and ‘environmentchampions’ in Golden Tulip-owned hotels andinns in the Netherlands.To improve theintegration of environmental management intobusiness operations and to ‘sell’ it to themanagement hierarchy, the Golden TulipBusiness School developed an in-housetraining pack for environment co-ordinatorsand green team members.

Beginning with no-cost/low-cost goodhousekeeping and repair activities, it hasprogressed to a more capital-intensive phasewith a new action area being introduced everymonth, such as water, waste, energy andchemicals.Through newsletters(72) green teamsare invited to submit ideas for environmentalmanagement, which are compiled into a seriesof departmental action checklists.

Environmental performance targets andstandards, monitoring and data-recordingprocedures are applied across all properties.Integrating and implementing the environmentpolicy into everyday business is the company’smain objective. It seeks to do so via trainingprogrammes, along the supply chain, indepartments such as sales and humanresources, and standardised auditingprocedures.The company asserts thatenvironmental action is not a marketing toolbut a business and social responsibility.

(72) The newsletters includegeneral environmentinformation on the specificaction area, resourceuse/waste volumes statistics,tips and ideas on resourceconservation and wastemanagement, quizzes andcrossword puzzles, and newsbriefs about environmentperformance of selectedGolden Tulip Hotels and Inns.

Annexe 5 65

The Orchid Hotel, Mumbai, IndiaThe 245-room, five-star, ECOTEL-certifiedOrchid Hotel in Mumbai was designed fromthe outset with preservation of theenvironment in mind. Some of its mostnotable environmental achievements include:

• a reduction in collective annual water usefrom 782.6 litres per available room to614.3 litres;

• a master control panel, incorporating a‘green button’ in each guest room whichadjusts the thermostat of the air-conditioning unit by two degrees.Equivalent cost savings in electricity aredisplayed on the guest folio and the moneyis then used for funding NGOs andenvironment-related programmes;

• total savings per year in heat, light, powerand guest amenities costs have reachedUSD152,471. Energy savings per availableroom are now 10% to 15%;

• waste water generated from the hotelamounts to approximately 120kl per day.90kl to 95kl of grey water is recycled atthe on-site wastewater treatment plant,30kl of which is then used for gardeningand air-conditioning purposes.Total savingsin water purchasing costs per year havereached USD13, 440;

• in addition to training 140 temporarytrainees and 71 apprentices, the hotel hascreated 430 new job opportunities forIndians living in and around the city ofMumbai;

• prior to The Orchid’s opening, there wereno local suppliers who manufactured ortraded eco-friendly products.Today, thehotel’s persistence in educating, informingand negotiating with suppliers has resultedin the development of a fully-fledgedindustry supplying such products, creatingfurther local jobs.

66 Annexe 5

Annexe 6: HospitalityEducation, awarenesscreation, training andinformation dissemination

The Challenge of HIV/AIDS in the workplace: A Guide for theHospitality IndustryIn 1999, IH&RA published a manual to addressthe issue of HIV/AIDS in the workplace, incollaboration with UNAIDS, designed to helphotels and restaurants of all sizes to developtheir own HIV/AIDS policies and awarenessprogrammes, illustrated by examples ofindustry best practice.The initiative washighlighted at the meeting of UNCSD in April1999, and the manual has been distributed tohotels in Southern Africa by the FederatedHospitality Association of South Africa(FEDHASA) and made available via theIH&RA Web site at http://www.ih-ra.com.

Global hospitality companies:HIV/AIDS initiatives at the Warsaw MarriottThe Warsaw Marriott has undertaken anumber of initiatives since 1994 to promoteHIV/AIDS awareness among its staff andsupport those living with the disease. Incollaboration with the Polish Foundation forthe Humanitarianism AIDS ‘Res Humanae’, thehotel has hosted major conferences for thoseliving with HIV/AIDS and has undertakenadvocacy work at business events toencourage other business leaders toincorporate HIV/AIDS initiatives into company operations.

Environmental initiatives: Manuals and awardsIH&RA, UNEP and IHEI jointly published anEnvironmental Action Pack for Hotels in 1995,which was updated in 1998. In 2001, IH&RAcompleted a new manual designed topromote the teaching of environmentalmanagement in hotel schools: Sowing the Seeds

of Change: An Environmental Teaching Pack forHospitality Professionals, in association withUNEP and the International Hotel SchoolDirectors’ Association (EUHOFA). Bothpublications incorporate case studiessubmitted for IH&RA’s annual EnvironmentalAward, which has been rewarding outstandingenvironmental performance by corporate andindependent establishments since 1990 withsponsorship from American Express.

Annexe 6 67

Annexe 7: HospitalityIndustry voluntary initiatives

International Hotels EnvironmentInitiative (IHEI)IHEI, based in London, England, is aprogramme of the Prince of WalesInternational Business Leaders Forum. Foundedin 1992 by a consortium of chief executivesfrom ten multinational hotel groups, IHEI is aneducational charity that functions to encouragecontinuous improvement in the environmentalperformance of the global hotel industry.

Representing now more than 11,000 hotels onall six continents - over 1.9 million guestrooms- IHEI initiatives have raised environmentalawareness amongst the international hotelindustry, tour operators, government bodies,the media, academia, and hotel industrysuppliers. Its objectives are:

• to raise environmental awareness in thehotel industry and promote good practiceinternationally;

• to promote the business benefits of soundenvironmental practices and sociallyresponsible business practices;

• to develop hotel-specific guidance, enablinghotels of all sizes to implementenvironmental programmes;

• to work with partners to extend the reachand impact of IHEI including hotelassociations, government bodies, NGOs,academia, hotel suppliers, and tourismboards.

IHEI’s environmental tools for hotels includepublications focusing on best practice, actionpacks, a quarterly magazine, purchasingguidelines and videos. It launched a new web-based IHEI/ WWF Benchmarking Tool inSeptember 2001 with support from Biffaward,designed to help hotels measure performanceand resource consumption, compare it withsimilar hotels worldwide, and calculate thefinancial and resource savings to be made by

improving environmental performance. Seehttp://www.benchmarkhotel.com

Ecolabels and CertificationProgrammes

Green Key (Denmark)Green Key is one of the most stringent eco-certification programmes in the world.Originating in Denmark in 1994 it has becomean international eco-label covering hotels inSweden, Greenland, and Estonia. Criteria forrestaurants and sports centres are underdevelopment.To qualify for certification, hotelsmust meet 78 criteria starting with creating anenvironmental policy, and site-specific actionplans, waste separation and collection ofrecyclable materials, measures limiting water,heat, and electricity consumption, use of eco-friendly suppliers and detergents, and oforganic foods on the menu.The Green Keycovers 15% to 20% of Denmark’saccommodation segments.

In 2000, Denmark launched a certificationprogramme for destinations – Destination 21 -which sets out eight sustainability goalscovering the three principle pillars of the RioSummit: economic, social and environmentalsustainability.

Over the last four years, HORESTA on behalfof the Danish Energy Agency, has led anenergy saving campaign for the entire industry– 14,000 businesses – which has exceeded itsgoal of reducing energy consumption by 5% to10%. In co-operation with the DanishEnvironmental Protection Agency, it hasdeveloped an environmental work package forhotels, restaurants and tourism businesses thatconsists of 19 booklets on environmentalmanagement, heating, water, detergents,occupational health etc.

Green Leaf (Canada)The Hotel Association of Canada’s (HAC)Green Leaf programme is a graduated ratingsystem designed to identify hotels committed

68 Annexe 7

to improving their environmental performance.It recognises environmental achievementsthrough a reward of one to five ‘Green Leafs’:One Green Leaf is awarded to hotels whocommit to a set of environmental principlessuch as energy use, water conservation andwaste reduction. Five Green Leafs signify thatthe hotel serves as a world leader inenvironmental performance. Ninety per centof all applicants become certified.

ECOTELECOTEL, HVS International’s certificationprogramme, focuses on energy efficiency, wastemanagement and recycling, water conservation,legislative compliance and employeeenvironmental education and training.Theauditing process leads to the development ofproperty-specific action plans. Additionally, adetailed cost-benefit analysis of projectedsavings is prepared.The auditing inspection isstringent, with the auditors present on theproperty for up to 30 hours and extensiveinterviewing of hotel staff.To date 34 hotelshave obtained ECOTEL certification, whichuses a graduated five Globe award system

Youth Career Initiative (Asia)Pan-Pacific Hotels & Resorts’Youth CareerInitiative targets young people, 17-19 years old,from poor, rural areas who have little access toeducation and are vulnerable to child sexexploitation. Its primary aim is to provide lifeskills training (HIV/AIDS awareness, health,hygiene, budgeting and English languageinstruction) and a basic introduction to thehospitality industry so that participantsimprove their chances of finding employment,either in the hotel sector or of a vocationalnature.

Participants attend classes taught bymanagement in the hotel five days a week andthe hotel absorbs the cost of uniforms, mealsand books. After graduation, students mustfend for themselves for a year and may behired by their host hotel, helped to findemployment in their home province or offered

a scholarship to pursue teaching or nursingtraining.To date, not one graduate of theprogramme has ‘lost their way’.

IH&RA is working to increase awareness levelsof this programme and develop it on acountry-by-country basis, with the supportfrom national associations and corporatesponsorship.

IH&RA Involvement in UNESCO’s Memoriesof the Future ProgrammeIn 1997, IH&RA entered into a specificagreement with UNESCO to promote thelatter’s Memories of the Future projectdesigned to enhance and restore key culturalheritage sites around the world. IH&RAencourages its hotel chain members topartake in the project in two ways:

• by adopting a specific project identified byUNESCO as a priority and making afinancial contribution to the site’spreservation,

• by restoring and converting a historicbuilding into a hotel to ensure itscontinued survival as a place of culturalinterest.

Accor, for example, has contributed:

• USD50,000 towards the restoration of theprestigious Prince Gong’s Palace, Beijing(China);

• USD25,000 towards the rehabilitation of atraditional building in the Medina of Tunis;

• USD25,000 towards a scheme toreproduce the major works of art in theMuseum of Nubia (Egypt) for sale totourists;

• USD25,000 towards the restoration of theBat Chum Temple in Angkor (Cambodia);

• USD25,000 towards the cost of providingaudio-visual equipment to the NationalMuseum of Alexandria (Egypt).

Annexe 7 69

Radisson SAS has donated:

• USD25,000 towards restoring the Old cityof Cracow (Poland);

• USD40,000 towards restoring the alter ofthe Qasr El Bint Temple, Petra (Jordan);

• USD25,000 towards restoring the roof ofthe Friday Mosque in Bahla Fort (Oman);

• USD25,000 towards restoring the Romanmosaics in the City.

70 Annexe 7

Annexe 8: HospitalityMulti-stakeholdercommunication andconsultation

Phinda Mountain & Forest Lodge,South AfricaThe Phinda Mountain & Forest Lodge, locatedin Kwazulu (South Africa), has a population of22,500 within a 15km radius of its boundaries,This is expected to double in the next 20years creating huge pressure on limited naturalresources. Phinda faces the threat of becomingan island of conserved habitat in a sea of ruralpoverty.To counteract this, Phinda has made acommitment to community participation by:

• acknowledging that people are acornerstone of the region’s naturalenvironment and thus are entitled tosustained benefits from its naturalresources,

• realising that ‘island reserves’ that ignorethe socio-economic aspirations ofsurrounding communities fosterresentment that eventually leads tointerference in the wildlife areas,

• playing a role in facilitating integrated ruraldevelopment strategies for the region,

• becoming a vehicle for socio-economicadvancement and enhanced sustainableresource utilisation, rather than a source oftension;

• establishing committees to liaiseappropriately with Phinda’s neighbours, inline with the above.

Radisson SASWhile recognising customers, employees andowners as the key stakeholder groups whenoperating its business, since 1999 RadissonSAS has extended its definition of stakeholdersin the value-creating process to includesuppliers, local communities, media,environmental interests and society at large.Using a Responsible Business Agenda, it

analyses their impact on the long-termbusiness success. Clear goal statements in theform of initiatives are communicated to eachstakeholder group, indicating what stakeholderscan rightfully expect from Radisson SAS, andvice-versa from a responsible businessperspective.(73)

Environmental initiatives:Turtle Island, FijiTurtle Island, a luxury resort located in Yasawa,(Fiji), was the independent winner of theIH&RA Environmental Award 1999.With astrong environmental managementprogramme in place, the island’s ownerconstantly develops environmental awarenessprogrammes and training so that all staffmembers understand the importance of theirsurroundings.

The eco-message is spread extensively throughthe resort’s promotional material, and in mostcases guests arrive keen to learn more abouttheir role in preserving the environment.Theresort has also established the Turtle IslandCommunity Foundation, a trust fund that goestowards health, education and transportationof the local community. Again, this is a clearexample of the hospitality industry showingleadership in environmental stewardship.

Annexe 8 71

(73) Radisson SAS Hotels &Resorts Annual Report, 1999:Believing in BusinessTomorrow As Well. 1999.

Annexe 9: Cruise linesWaste managementpractices and procedures

ICCL industry standard E-01-01The members of the International Council ofCruise Lines (ICCL) are dedicated topreserving the marine environment and inparticular the pristine condition of the oceansupon which our vessels sail.The environmentalstandards that apply to our industry arestringent and comprehensive.Through theInternational Maritime Organisation, theUnited States and other maritime nations havedeveloped consistent and uniforminternational standards that apply to all vesselsengaged in international commerce.

These standards are set forth in theInternational Convention for the Prevention ofPollution from Ships (MARPOL). In addition,the United States has jurisdiction over vesselsthat operate in United States waters whereUnited States laws such as the ResourceConservation and Recovery Act and theFederal Water Pollution Control Act apply.TheUnited States Coast Guard enforces bothinternational conventions and domestic laws.

The cruise industry is commitment toprotecting the environment is demonstratedby the comprehensive spectrum of wastemanagement technologies and proceduresemployed on its vessels. ICCL members arecommitted to:

• designing, constructing and operatingvessels, so as to minimise their impact onthe environment,

• developing improved technologies toexceed current requirements for

protection of the environment,• implementing a policy goal of zero

discharge of MARPOL, Annexe V solidwaste products by use of morecomprehensive waste minimisationprocedures to significantly reduceshipboard generated waste,

• expanding waste reduction strategies toinclude reuse and recycling to themaximum extent possible so as to landashore even smaller quantities of wasteproducts,

• improving processes and procedures forcollection and transfer of hazardous waste,

• strengthening comprehensive programmesfor monitoring and auditing of onboardenvironmental practices and procedures inaccordance with the ISM Code for the SafeOperation of Ships and for PollutionPrevention.

Industry waste management standardsICCL member cruise vessel operators adoptthe following standards for waste streammanagement:

• photo processing, including X-raydevelopment fluid waste:The industry willminimise the discharge of silver into themarine environment through the use ofbest available technology that will reducethe silver content of the waste streambelow levels specified by prevailingregulations;

• dry-cleaning waste fluids and contaminatedmaterials:The industry will prevent thedischarge of chlorinated dry-cleaning fluids,sludge, contaminated filter materials andother dry-cleaning waste by-products intothe environment;

• print shop waste fluids:The industry willprevent the discharge of hazardous wastesfrom printing materials (inks) and cleaningchemicals into the environment;

• photocopying and laser printer cartridges:The industry will initiate procedures so asto maximize the return of photo copyingand laser printer cartridges for recycling. In

72 Annexe 9

any event, these cartridges will be landedashore;

• unused and outdated pharmaceuticals:Theindustry will ensure that unused and/oroutdated pharmaceuticals are effectivelyand safely disposed of in accordance withlegal and environmental requirements;

• fluorescent and mercury vapour lampbulbs:The industry will prevent the releaseof mercury into the environment fromspent fluorescent and mercury vapor lampsby assuring proper recycling or by usingother acceptable means of disposal;

• batteries:The industry will prevent thedischarge of spent batteries into themarine environment;

• bilge and oily water residues:The industrywill meet and exceed the internationalrequirements for removing oil from bilgeand waste-water prior to discharge;

• glass, cardboard, aluminum and steel cans:To the maximum extent possible, theindustry will eliminate the disposal ofMARPOL Annexe V wastes into themarine environment through improvedreuse and recycling opportunities. Nowaste will be discharged into the marineenvironment unless it has been properlyprocessed and can be discharged inaccordance with MARPOL and otherprevailing requirements;

• incinerator ash:The industry will reduce theproduction of incinerator ash by minimisingthe generation of waste and maximisingrecycling opportunities;

• graywater : Graywater will be dischargedonly while the ship is underway andproceeding at a speed of not less than sixknots. Graywater will not be discharged inport and will not be discharged within fournautical miles from shore or such otherdistance as agreed to with authoritieshaving jurisdiction or provided for by locallaw except in an emergency, or wheregeographically limited.The discharge ofgraywater will comply with all applicablelaws and regulations;

• Blackwater : Blackwater will be dischargedonly while the ship is underway andproceeding at a speed of not less than sixknots and in accordance with applicableregulations.Treated blackwater will not bedischarged in port and will not bedischarged within four nautical miles fromshore or such other distance as agreed towith authorities having jurisdiction orprovided for by local law, except in anemergency, or where geographically limited.The discharge of blackwater will complywith all applicable laws and regulations.

To improve environmental performance, cruiselines are testing and installing wastewatertreatment systems that utilise advancedtechnologies.These onboard wastewatertreatment systems are designed to result ineffluent discharges that are of a high qualityand purity; for example, meeting or surpassingsecondary and tertiary effluents and reclaimedwater. Effluents meeting these high standardswould not be subjected to the strict dischargelimitations previously discussed.

Each ICCL cruise vessel operator will utiliseone or more of the practices and procedurescontained in the attached ‘Cruise IndustryWaste Management Practices and Procedures’ inthe management of their shipboard wastestreams. Recognising that technology isprogressing at a rapid rate, any newequipment or management practices that areequivalent to or better than those described,and which is shown to meet or exceedinternational and federal environmentalstandards, will also be acceptable.

The use of equivalent or other acceptablepractices and procedures shall becommunicated to ICCL. As appropriate, suchpractices and procedures shall be included as arevision to the attached document. As anexample, when improved systems for treatingblackwater and graywater are perfected andshown to meet the requirements for MSDsand accepted by appropriate authorities, the

Annexe 9 73

new systems and associated technology will beincluded in the attachment as a revision.

ICCL and its Environmental Committee expertswill work with the United States Coast Guard,the United States Environmental ProtectionAgency and other appropriate agencies tofurther implement this standard and the abovecommitments.

74 Annexe 9

Annexe 10 75

Annexe 10:Open for dialogueList of delegates who attended 3October 2001 multi-stakeholdermeeting in Paris- Dirk Belau Hotels, catering and tourism

specialist, International Labour Organization(ILO)

- Rebecca Bloom – Project Manager,WTTC- Martin Brackenbury – President, IFTO (via

conference call)- Giulia Carbone – Associate Programme

Officer, UNEP- Elizabeth Carroll-Simon – Director of

Industry Affairs, IH&RA- Michael Crye – President, ICCL (via

conference call)- Patrick Dalban-Moreynas, International

Union of Food, Agricultural, Hotel,Restaurant, Catering,Tobacco and AlliedWorkers’ Association

- Graham Gordon, public policy officer,Tearfund, provided input to the report, butwas unable to attend the workshop.

- Oliver Hillel – Tourism ProgrammeCoordinator, UNEP

- Jan Jackson, chairman – (via conferencecall) of the Initiative Tour Operators’Initiative (TOI)

- Frans de Man, Northern Tourism NGOCaucus, UNCSD

- Angela Plott – Vice President, ICCL (viaconference call)

- Nicola Pogson – Director of ProgrammeDevelopment, IH&RA

- Nina Rao, Southern Tourism NGO Caucus,UNCSD

- Yuri Toroptsov – Business Enterprises forSustainable Travel/The Conference Board

- Graham Wason – Vice President Strategyand Development,WTTC

- Justin Woolford,Tourism, Business &Consumption Unit,WWF-UK

- Eugenio Yunis, head of SustainableDevelopment of Tourism,WTO

76 Tourism

• consulting engineering• electricity• fertilizer• finance and insurance• food and drink• information and

communications technology• iron and steel

• oil and gas• railways• refrigeration• road transport• tourism• waste management• water management

• accounting• advertising• aluminium• automotive• aviation• chemicals• coal• construction

UNEP contribution to the World Summit on Sustainable Development

The mission of the United Nations Environment Programme (UNEP) is to provide leadership andencourage partnerships in caring for the environment by inspiring, informing, and enabling nations andpeoples to improve their quality of life without compromising that of future generations. The UNEPDivision of Technology, Industry and Economics (DTIE) contributes to the UNEP mission byencouraging decision-makers in government, business, and industry develop and adopt policies, strategiesand practices that are cleaner and safer, make efficient use of natural resources, ensure adequatemanagement of chemicals, incorporate environmental costs, and reduce pollution and risks for humansand the environment.

This report is part of a series facilitated by UNEP DTIE as a contribution to the World Summit onSustainable Development. UNEP DTIE provided a report outline based on Agenda 21 to interestedindustrial sectors and co-ordinated a consultation process with relevant stakeholders. In turn,participating industry sectors committed themselves to producing an honest account of performanceagainst sustainability goals.

The full set of reports is available from UNEP DTIE’s web site (http://www.uneptie.org/wssd/), whichgives further details on the process and the organisations that made it possible.The following is a list ofrelated outputs from this process, all of which are available from UNEP both in electronic version andhardcopy:

- industry sectoral reports, including

- a compilation of executive summaries of the industry sectoral reports above;- an overview report by UNEP DTIE;- a CD-ROM including all of the above documents.

UNEP DTIE is also contributing the following additional products:- a joint WBCSD/WRI/UNEP publication entitled Tomorrow’s Markets: Global Trends and Their

Implications for Business, presenting the imperative for sustainable business practices;- a joint WB/UNEP report on innovative finance for sustainability, which highlights new and effective

financial mechanisms to address pressing environmental, social and developmental issues;- two extraordinary issues of UNEP DTIE’s quarterly Industry and Environment review, addressing key

regional industry issues and the broader sustainable development agenda.

More generally, UNEP will be contributing to the World Summit on Sustainable Development withvarious other products, including:- the Global Environmental Outlook 3 (GEO 3), UNEP’s third state of the environment assessment

report;- a special issue of UNEP’s Our Planet magazine for World Environment Day, with a focus on the

International Year of Mountains;- the UNEP photobook Focus on Your World, with the best images from the Third International

Photographic Competition on the Environment.

For further information contact:

Web site: http://www.ih-ra.comWeb site: http://www.wttc.orgWeb site: http://www.iccl.orgE-mail: ifto@ifto.demon.co.uk

United Nations Environment ProgrammeDivision of Technology, Industry and Economics39-43 Quai André Citroën75739 Paris Cedex 15FranceTel: +33 1 44 37 14 50Fax: +33 1 44 37 14 74E-mail: wssd@unep.frWeb site: http://www.uneptie.org/wssd/

Sustainability profile of the Tourism industry

• Achievements- Travel and Tourism, one of the world’s foremost industries, recognises its vital link to the environmental, social and

cultural assets of the planet and has taken a lead in awareness raising, standards setting, certification, accreditationand voluntary initiatives.

• Unfinished business- Travel and Tourism’s enormous potential to benefit host communities in developing regions through economic

growth and job creation can only be fulfilled if all stakeholders work together.

• Future challenges and possible commitments- As one of the major stakeholders, the industry will do its part to ensure that Travel and Tourism works for

everyone and is environmentally, socially and economically sustainable, now and in the future.