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The Case for Responsible Travel: Trends & Statistics Martha Honey, Ph.D. Co-Director Center for Responsible Travel (CREST) Keeping the Right Balance: Enhancing Destination Sustainability through Products, Partnerships, Profitability CTO: 14th Annual Caribbean Conference on Sustainable Tourism Development Port of Spain, Trinidad April 15-18, 2013

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Page 1: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

The Case for Responsible Travel:

Trends & Statistics Martha Honey, Ph.D.

Co-Director Center for Responsible Travel (CREST)

Keeping the Right Balance: Enhancing Destination Sustainability through

Products, Partnerships, Profitability

CTO: 14th Annual Caribbean Conference on Sustainable Tourism Development Port of Spain, Trinidad

April 15-18, 2013

Page 2: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Global Tourism Milestones

2011: International tourism receipts exceeded one trillion dollars.

2012: More than one billion international travelers.

Tourism industry growth is being matched by growing interest in sustainable travel

Page 3: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Demand for Sustainable or Responsible Travel

CREST meta-analysis finds…

“increasing recognition among both travel professionals and consumers of the importance of responsible travel.”

“strong evidence” that sustainable travel is “good for the economic bottom line.”

www.responsibletravel.org

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Demand for Sustainable Travel

Study endorsed by UNWTO and other leading international tourism organizations.

“The tourism sector is embracing responsible tourism not as an option, but as a condition for its continuous growth…”.

--Luigi Cabrini, Director for Sustainable Development, UNWTO

Page 5: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Travel Trends & Statistics

1) Consumer Demand for Sustainable Travel

2) Business Case for Sustainable Travel

3) Destination Case for Sustainable Travel

Page 6: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Travel Trends & Statistics

1) Consumer Demand for Sustainable Tourism

“Green is no longer just a trend. It’s a way of life.” -- Fran Brasseux, Exec Director,

Hotel Sales & Marketing Association International

Page 7: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Consumer Demand

• 66% of consumers globally prefer to buy products and services from companies that have implemented programs to give back to society.

-- Nielson Wire survey, 2012

• 93% of readers said that travel companies should be responsible for protecting the environment.

-- Conde Nast Traveler, 2011

Page 8: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

‘Green Travel’ Gains Momentum

• 71% of TripAdvisor members say they plan to

make more eco-friendly choices in the coming

year, up from 65% last year. -- TripAdvisor, 2012

Page 9: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Consumer Trends Favoring Sustainable Travel

• Emergence of experiential tourism

• Search for fulfillment

• Demand for authenticity

• Urbanization and need to connect with nature

• Togetherness

Sustainable travelers = high value travelers

Page 10: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Travel Trends & Statistics

2) Business Case for Sustainable Travel

“One thing is for sure – travel companies and services are all beefing up their eco-credentials in order to attract the rising number of customers seeking a ‘green experience.’”

- Jason Halal, Manager, Sierra Club Outings

Page 11: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Business Case for Sustainable Travel

• Companies that adopted environmental, social, and governance policies in the 1990s outperformed those that did not. “Adoption of these policies …reflect substantive changes in business processes.”

--Harvard Business School study, 2011

Page 12: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Business Case for Sustainaable Travel

• 51% of meeting planners will hold meetings only in sustainable venues.

-- JW Marriott Denver, 2010

• 84% of those in marketing and PR see ‘green’ credentials as increasingly important.

-- The Travel Foundation & Forum for the Future, 2012

Page 13: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Willard Hotel, Washington, DC

2009 CondeNast Traveler World Savers award 100% wind power, composting, recycling

Major ‘greening’ of premises & operations

Green chemicals for in-house laundry

Guests asked at check-in to contribute to projects Water wells in S Africa & S Dakota

Habitat for Humanity

Clean up of Anacostia river

Clean up of park in front of hotel

2009: $700,000 in new business from meeting planners & guest because of green practices

Going green is good for business…

Page 14: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Greening the travel industry

Ski resorts

Hotels & resorts Golf Courses Cruises

Beaches Convention Centers

Airlines

Page 15: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

New Senior Positions Created for Sustainability

Fairmont Marriott IHG Kimpton Accor Hilton TUI Vail Royal Caribbean Cruise Lines Virgin Banyan Tree Six Senses Punta Cana

Page 16: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Travel Trends & Statistics

3) Destination Case for Sustainable Travel

“If the product – our destinations – aren’t protected in environmental and social terms, then people won’t want to vist them. It is as simple as that.”

-- John De Vial, Financial Protection, ABTA

Page 17: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Sustainable Destinations: International Initiatives

Global Sustainable Tourism Criteria (GSTC)

Ashland, Washington

Guanajuato, Mexico

Isle of Skye, Scotland

Mackinac Island, Michigan

Coastal Fjords, Norway

Cape Breton Island, Nova Scotia

Wachau Valley, Austria

Chaco Culture National Historical Park, New Mexico

Northeast Kingdom, Vermont

Grenada, West Indies

Geotourism

Page 18: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Sustainable Destinations

• 30% of travelers chose a destination for a trip because it is considered eco-friendly.

• Costa Rica is the most popular destination in the world for travelers interested in an eco-friendly trip.

-- TripAdvisor, 2012

Page 19: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Costa Rica’s Ecotourism/Sustainable Tourism Model

Home grown & grew quickly 1987 – 1992

Built largely on local assets, not foreign investment

Nature based: near parks or private reserves Spread throughout country

Locally owned: Costa Ricans or foreign residents Many have strong social &

environmental ethics

Earnings remained in country

Responsive to market trends and sustainable practices. Remained remarkably strong

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Page 20: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Financial Success of

Costa Rica’s Ecotourism “Model”

In 2 decades: Arrivals increased 7 times Receipts increased 14 times Costa Rica doubled its earnings/tourist

By mid-1990s, ecotourism = top foreign exchange earner

Costa Rica

Costa Rica's Tourism Growth

Year 1986 1990 1995 2000 2007

Arrivals (thousands) 261 435 792 1,088 1,980

Gross receipts (millions

US$) $133 $275 $718 $1,229 $1,895

Page 21: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Pacific Coast Rapid Growth of Other Types of Tourism:

Cruise, Resort & “Residential” Tourism

Distinct history, trajectory, & impact

Page 22: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Guanacaste’s “Gold

Coast”: ~100 coastal

resorts served by

Liberia airport.

JW Marriott Guanacaste Resort

Villa Buena Onda

Los Altos de Eros

Four Seasons

Paradisus

Sol Papagayo Resort Fiesta Premier Resort & Spa

Flamingo Beach Resort Guanacaste

Hotel Riu Guanacaste

Allegro Papagayo

Barcelo Langosta

Liberia Airport

By 2008, 65% of

Liberia airport arrivals

staying in all-inclusive

5-star resorts.

Since 2002

Growth of Brands and All-Inclusive Resorts

Page 23: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Golf Courses

Golf courses considered necessary for all-inclusive resorts.

Serious environmental impacts, consumes daily as much water as a

village of 10,000 people. 2% of tourists to Costa Rica play

golf. Condominiums next to golf courses

sell for 20% more. Real purpose: real estate

speculation. …. & marketed as ‘eco’!

Page 24: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Contrasting Profiles of Tourists (Based on Government Airport Surveys)

Tourists Liberia airport (resort tourism)

San Jose airport (ecotourism)

From U.S. 80% 51%

Visit North Pacific Coast (88%)

2 or more locations

Beach & Sun 96% 57%

Visit national park 41% 53%

Length of stay 9 nights 13 nights

Conclusion:

Ecotourists are higher value tourists

Page 25: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Cruise vs. Overnight Tourism in Costa Rica

Arrivals: Cruise Ship visitors: 280,017 Overnight visitors: 1,659,165

6 times more

Daily spending per tourist: Cruise passenger: $55 Overnight visitors: $120

More than double

Total spending for visit: Cruise passenger: $55 Overnight visitors: $1000

18 times more

Contribution to local economy: Cruise Ships tourism: $18.9 million Overnight tourism: $2.1 billion

111 times more

Conclusion: Government should not increase cruise tourism

Page 26: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Tapping into the Sustainable Travel Market: Recommendations for Policy Makers

Page 27: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Key Recommendations

o Build high value, rather than high volume tourism. o Target socially/environmentally aware consumers &

European as well as American market. o Center on local assets, not foreign imports: create linkages,

reduce leakages. o De-emphasize all-inclusive resort, vacation home & cruise

ship tourism. o Provide incentives to innovative ‘green’ developers and

investors. o Incorporate international best practices for sustainability.

Page 28: The Case for Responsible Travel: Trends & Statistics · CREST meta -analysis finds ... Business Case for Sustainable Travel ^One thing is for sure – travel companies and services

Center for Responsible Travel (CREST)

Websites: www.responsibletravel.org

www.travelersphilanthropy.org www.crestconference.org

Email: [email protected]

Washington, DC 1333 H St., NW

Suite 300 East Tower Washington, DC 20005

P: 202-347-9203

Stanford University 450 Serra Mall, Building 50

Room 51D Stanford, CA 94305

P: 650-723-0894