Factors Affecting The Growth of Hospitality and Tourism Industry

Table of Content

Introduction

Tourism is considered as an important sector, especially for global economy development, it contributes to global income creation and generation of jobs. This is acknowledged by Cooper, (2016, p.5), stating that “tourism is an activity of global importance and significant and a major force in the economy of the world”. Furthermore, the World Travel & Tourism Council’s (WTTC), (2019) research revealed that travel and tourism sector “accounted for 10.4% of global GDP ($8.8 trillion) and 319million jobs, or 10% of total employment in 2018”. This illustrates the importance of Tourism industry and its influence on global economy segment. In addition, the emergences of Tourism also helped to stimulate the drive for infrastructure development within the destination and encourage a more developed society.

The report will be examining the effect of climate change on tourism industry and highlight the negative impact caused by climate change. In addition, the report will examine the impact of technology development on hotels and sustainable practises carried out by hotel industry. Recommendation will be also be advised.

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The challenge of climate change and tourism

Climate change is one of the major concerns and issue facing the world today. However, the issues are still reluctant by many stakeholders. Since late 1990s, climate change and tourism has largely been debated regarding the relationship between tourism and climate and climate change, (Reddy & Wilkes, 2012, p.3), (Scott, Hall & Gössling, 2012, p.2). According to National Geographic (2019), climate change is defined as “the long-term alteration of temperature and typical weather patterns in a place”, causing weather patterns to be less predictable.

Therefore, resulting in frequent hurricanes, floods, downpours, and winter storms, (National Geographic, 2019). This is also one of the issues that tourism industry practically in some regions are currently confronting. Extreme weather events negatively impact tourism industry. Creating decline in tourists, loss of hotel revenue and occupancy and decrease in retails of city economy, destroy cultural heritage attractions and nature. Coastal tourism is particularly exposed to the vulnerable risks of severe storms, winds, waves and rain causing disruption to the transport, power and water supplies that the industries relies on, (CISL, pdf, p.8).

In response, destruction like infrastructure due to extreme weather will be highly costly for government to rebuild and re-construct again. For example, Bahamas island, one of the popular destinations but extremely prone to hurricanes and tropical storms. In 2019, the island was confronted with hurricane Dorian, experiencing 185 miles per-hour wind causing many destructions and damaged to the local areas, (Korten, 2019). According to The Washington Post (2019), “many tourists have cancelled their visits”, this illustrates that extreme weather can influence visitor’s perception and desirability to visit particular destination due to health and safety. Extreme weather can also cause local community to migrate to different locations, affecting economic growth.

According to Inkson & Minnaert, (2018, p.218), throughout history of the Earth’s climate in the last 650,000 years, “there have been only seven cycles of glacial advance and retreat” meaning that the last abrupt ice age end about 7,000 years ago. These climate changes only contributed to small variations in Earth’s orbit, changing the amount of solar energy received by planet Earth, (Inkson & Minnaert, (2018, p. 218). However, “current global warming is different, as it is result of human activity since the mid-20th century” stated by Inkson & Minnaert, (2018, p. 218). To support this argument, National Geographic (2019), also agreed that “the cause of current climate change is largely human activity”, such as burning fossil fuels, natural gas, oil and coal. Burning these materials releases greenhouse gases (GHG) into the atmosphere.

These gases trapped the heat from the sun inside the atmosphere and slowly increases Earth’s temperatures, eventually cause global warming. In polar regions, the rise in global warming temperatures due to climate change have caused ice sheets and glaciers to melt. This contributes to sea level rising in different regions of the planet, causing increase flooding and erosion in coastlines, (National Geographic, 2019). For example, this caused nearly a third of Caribbean resorts to be less than one meter above the high-water mark. In response, the sea-level rise is estimated to damage about 49 – 60% of region’s tourists resort properties, contributing to damage of 21 airports and around 35 ports, (CISL, pdf, p.6). Extreme weather and higher sea-level will accelerate erosion of beaches, sand dunes and cliffs. In addition, degraded beaches will reduce attractiveness of destination and will result in declined desirability of destinations amongst visitors. Therefore, this could reduce the prices that operators can charge for accommodation, causing income reduction for accommodation sector, (CISL, pdf, p.6).

Rising temperatures is linked to ocean acidification which can affect marine habitats and organisms, especially Coral reefs. Reefs provide shelter for marine life and help to absorb waves energy and contribute to environment protection through the reduction of coastal erosion, (Coral Guardian, 2019). Furthermore, reefs are important to tourists’ attractions by attracting divers and contributed USD 11.5 billion annually to global tourism revenues, (CISL, pdf, p.7).

Rising temperature is also a major cause for ocean acidification. Eventually, decreases availability of calcium carbonates for reef-building corals, contributing to degradation of coral reefs, (CISL, pdf, p.7). For tourism in Australia, the Caribbean and other small island states will suffer the consequences of coral reef degradation due to global warming if actions are not carried out by governments. According to CISL, pdf, (p.4), stress that “rising temperatures will shorten winter sport seasons and threaten the viability of some ski resorts”. Creating financial risks for ski resorts and potentially risks of losing future investors.

Tourism heavily depends upon the environment. Therefore, many destinations are popular because of their natural assets, (Inkson & Minnaert, 2018, p.217). However, environments are fragile and therefore sustainable practices needs to be strictly addressed by governments, to protect tourism products and services to last to future generations. However, there are some positive impacts of climate change towards tourism sector. For example, allowing new geographical regions to become more attractive to tourism. Northern Europe, Scandinavia and Alaska are likely to become more popular with visitors as temperature rise, (CISL, pdf, p.8). Climate change also create travel trends like ‘last-chance’ tourism, encouraging tourists to travel to regions and natural destinations that are at risk in a warming world, e.g. glaciers, Antarctica, or low-lying islands, (CISL, pdf, p.8).

Technology Development and Hotels

Due to rapid climate change, tourism industry is relying more on technology development to improve the climate change. Many hotels are now becoming more sustainably aware and are willing to adopt sustainable approach into business practises. Consumers’ demand is also a stimulant factor that drives hotel industry to become more sustainable due to a high demand market for a sustainable experience. Globalnews, (2019), stated “over half (52%) of global travellers say they now alter behaviours to be more sustainable while travelling”. This illustrate a demand for sustainable market for hotel industry. Technology is a huge contributor to hotels developing sustainable approach. For example, four ways that technologies can help enhance hotels to become more sustainable.

1. Eco-friendly heating and energy

Many hotels will have heating systems such as radiator, water boiler and air conditioner to keep guests comfortable. However, in some hotels keeping constant comfortable temperature throughout the building is a must. This can cause over energy expenditure and contributing to hotels carbon footprint. With technology development, hotels can now implement building energy management systems (BEMS) to overview energy consumption throughout hotels premises. BEMS is a computerised system, helps to monitor and control energy-related such as heating, ventilation, air conditioning, lighting and other power systems, (Designing Buildings, 2019).

According to British Gas, this helps to “reduce energy consumption by up to 10%” and reduce carbon emissions whilst being cost effective for hotels also, (Green Hotelier, 2016). However, BEMS will have cost associated with it; such as installation, operation and maintenance costs. In addition, BEMS will require skilled operator to ensure maximum efficiency, (Sustainability West Midlands, pdf). Therefore, some hotels businesses are not yet willing to adopt sustainable practices due to costs.

2. Waste reduction technology

According to WRAP, (2018), hotels and other hospitality businesses dispose worth of 600,000 tonnes of food waste yearly. This means more food is disposed in landfills, later producing methane (a more powerful GHG than CO2), which contributes to climate change. To minimise this problem, hotel company like InterContinential Hotels Group (IHG) partnered with tech company Winnow to help hotels reduce food waste. Winnow Vision AI technology, allow hotels to track and measure the amount of food wasted to increase sustainability in the restaurant and bar operations, (Wisse, 2019). This technique helped hotels to reduce 30% in food waste, (Wisse, 2019).

3. Sustainable laundry

For hotel industry, providing fresh towels and laundered linen can be very demanding. Especially for large operating hotel, will result in use of high-level energy and cost for electricity used to wash sheets and towels. Again, contributing to hotels’ carbon footprints. Technology development such as bead cleaning is another approach that can help hotels to become more sustainable. Bead cleaning technology helps to reduce energy consumption and water usage. According to Physics Today, (2014), Xeros or bead cleaning process use up to 90% less water for laundry. Hilton also use Xeros washing machine to reduce water usage and costs in hotels (McGrath, 2018). However, by adopting this strategy can be expensive especially for smaller hotel companies.

4. Lighitng technology

Most hotels have corridors and other public areas where lights are often switched on 24 hours daily without being used, (Green Hotelier, 2016). Meaning more electricity are wasted, leading to global warming. However, due to technology development many hotels now have installed occupancy sensor lights around hotel corridors or premises that have fewer human interactions. It’s a simple way to ensure that lights are switched on when needed, (Green Hotelier, 2016). LED lights have also been considered by many hotels to reduce energy expenditure. These lights are cheap to installed therefore this can majorly reduce in energy usage and carbon emissions to the atmosphere.

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Factors Affecting The Growth of Hospitality and Tourism Industry. (2022, Oct 30). Retrieved from

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