Along this report, we will also discuss some of our recommendations for the property. Contents 1. Introduction 2. Introduction of property 3. Environmental Management System (MS) 4. Design a. Connection with Sales Profitability b. Elements of Effective Design Long Term Advantages 5. A. What is sustainable tourism? B. Economic Benefits c. Social Benefits 6. Current Environmental Management & Principles a. Waste Management b. Water Management c. Energy Management 7. Evaluation of the changing nature of operations a. Operations Management b. Environment Management Recommendation 8.
Introduction As stated by Browne, 2006, “The hospitality industry will no longer be able to Moore its environmental responsibilities as it will have to respond to a number of pressures. For example, the “green tourist will demand “green” accommodation; legislation with regard to the disposal of waste has implications for the hospitality industry; and the continued increase in energy costs will necessitate reduction in usage. ” Therefore, the Environmental Management System is becoming more known in the tourism and hospitality industry over the globe.
Almost all hotels have begun using it in varying degrees. It is a way for the management to deal with ND control possible effects on the environment as well as its activities, products or services. In 1 971 , Robert Kook was inspired to establish and name his hotel, Shanghai- La, from a famous novel, Lost Horizon (1993). Shanghai-La itself has a meaning of tranquility and serenity. Shanghai-La hotel is a worldwide and well-known 5 star hotel group that is based in Hong Kong.
With a total of 83 properties and 34,000 room inventories, Shanghai-La hotels have expanded their brand throughout Asia Pacific, North America, Europe and also the Middle East, with more hotels around Asia and UK being under development. Every aspect in the Shanghai-La chain hotels should follow the standard by the developers of Shanghai-La hotel. In order to prove to society that Shanghai-La has a high standard of management and service, Shanghai-La achieved many awards in the different regions and different categories.
Shanghai-La hotel not only create strategies to generate more revenue but also create a plan how to minimize the damage to environment as well as sustain the earth. By applying the Environmental Management Systems to many of their hotels in the world, Shanghai-La committed to give a good effort to nature as well as to heir guests and also to ensuring all the staffs to apply MS in their daily basis, Shanghai-La promotes and implements the environmental awareness to the guests and to staffs.
On the other hand, Shanghai-La hotel Sydney also show their commitment to sustain the environment in 5 different areas; climate change, waste disposal management, ozone depletion, water use management and indoor air quality. Further discussion about how Shanghai- La hotel Sydney to sustain the environment will be conducted in this report. Environmental Management System (MS) Nowadays, many luxurious hotel brands have presented to society that they re currently applying MS to their daily activities. However, only a few people know and understand what the meaning and function of MS is, in hospitality and tourism industry.
Hospitality and tourism industry is known as one of the largest industries that consume a big portion of natural resources as well as a high-volume of wastage. MS has been introduced in order to help many hotels to minimize the usage of natural resources, as well as to reduce the wastage. In the other words, MS is a new way to control all aspects that has a negative impact to the environment. MS not only gives advantages to environment either at resent or future, but also it gives a numerous benefits to the hospitality industries.
In term of costs, MS will help a hotel to lower the operation costs by managing the wastage and consumption of resources more efficient. By adopting MS in the daily operation of a hotel, you might achieve many certificates and awards. These kinds of recognitions will enhance the image of business as well as the credibility. So, more revenue will occur from adopting MS. Making the workplace safer and healthier is another benefit from MS. It means the number Of work-related accidents; illnesses or absenteeism will educes dramatically.
Moreover, there is an increase in the number of guests who are becoming more environmentally aware. MS enables hotels to meet this demand so at the end hotel will stand out from the competition. Although the long-time benefits are very obvious to understand, not so many hotels could adapts and implement the system. By starting to create a policy and procedure of MS, hotels should be able to introduce to the entire staff about MS. In fact, MS is very challenging and difficult to adapt, but it is very useful in order to bring a many advantages for two parties; hotels and environment.
Shanghai-La hotel is known as a 5 star, luxurious chain hotel that is located mostly in busiest city in the world. In Sydney, Shanghai-La is located close to the Opera house and Darling Harbor, which is the main attraction point of tourism. Shanghai-La, Sydney has become one of 5 star hotels that are concerned about environment. Based on research, Shanghai-La hotels and resorts create their own campaign called “Sustainability’. Gender the brand Sustainability, Shanghai-La hotels and resort, together, focus on 5 different main areas, such as Environment, Health and Safety, Employees, Supply
Chain and Stakeholder Relations. On their website, Shanghai-La stated “Luxury need not cost the earth”, that statement very obviously tells us that in order to be a luxurious hotel or to bring a luxury service to guests, minimizing the damage to earth needs to be considered. In the term of environment, under the Sustainability campaign, Shanghai-La issued several reports known as Sustainability report, which mainly consists of description of company’s social, environmental and economic impacts. In April 201 3, Shanghai-La released the newest 201 2 Sustainability Report.
Policies and Environmental Projects Shanghai-La has committed to take part solving environmental issues that are currently happening. To be good stewards of the environment, ensure all the properties highly respect to the local traditions, natural habitats, conserving biodiversity and be able to manage all wastage output and energy. Their policy is to make sure all their daily operation within their hotel brand, put an effort to promote and implement the practice of environment and do improvements.
Examples Of some Of environmental projects from Shanghai-La hotels and resorts are; since 2011, Shanghai-La participates in the Carbon Disclosure Project (CDC), CDC is an international organization that has a mission to provide full information about environment and how to manage it. Moreover, Sanctuary is another environment project from Shanghai-La. Launched in 2010 with a mission to make an effort towards biodiversity conservation as well as the protection their habitat. Hotel will monitor, develop, and track the biodiversity that they take care of.
In Asia, Shanghai-La shows a lot of participation in the preserving and protection of the environment. For example, from the Reef Care project that usually happens in Fiji Island and he Maldives, Care for Nature project that take places in Malaysia and China, Dugong Care project that held in Malaysia, and also Orange-tan Care project in Malaysia. From these projects and policies, Shanghai-La hotel and resorts put a high efforts and commitment towards environment and be able to apply MS in their daily basis operation.
Design Connection with Sales Profitability The Shanghai-La story came about in 1971 with the first deluxe hotel in Singapore. Having a long history in the hospitality industry, Shanghai-La created their unique operational and facilities design to increase their revenue. Hotel CEO design was not a mission for Shanghai-La, but rather their way of surviving in the industry, as the hotel’s design will affect the sales and profitability in the future. There are three assumptions to analysis and measure the relation between performance of the hotel design and profitability.
The first being, perfect design will bring higher average daily rate. Next, the hotel will receive higher occupancy by perfect design. Last but not least, the Revenue per Available Room, Reveal, will be increased by perfect design and reasoning profitability, assuming the perfect hotel design will minimize the sots and maximize the profit. There are four parts related to cost, namely; labor, energy, maintenance and operating efficient TTYL. High effective use land and CEO design can bring positive effect to the hotel profit.
American tourism society recently did research that, forty three million American consider themselves as CEO travelers and would rather pay 8. 5% extra to the hotels that are aware of environment design. In other words, people are willing to pay more money to reduce water consumption, energy, wasting and pollution. Maximizing the room view, in general, the room rate tit a good view will cost 10% to 25% higher than the room without good view; therefore, maximizing the room view is one of the most important factors in hotel design for earning more profit.
Shanghai-La Sydney is an ISO 14001 certified hotel, which means that it is a member of the International Organization for Standardization. ISO 14001 standard requires identifying all aspects of the community organization’s activities, products, and services that could have a significant impact on the environment, including those that are not regulated. ISO 14001 helps the Shanghai-La Sydney set performance objectives and argots for the environment management system.
It is not only the responsibility for the hotel to follow, but also it could be good business for industries if they have effective environment management system. Shanghai-La Sydney achieved 16% reduction of cue per guest night in 201 2 and set another target that is 20% reduction of cue per guest night in 2015. Cue was produced from the energy consumptions, meaning, the Shanghai-La reduced the energy consumption such as electricity, fuel, and gas without decreasing guests’ satisfaction. 20% reduction of potable water per guest night in 2012 versus 15% in 201 5 argue set by ISO 14001.
Shanghai-La did incredible work in potable water reduction, exceeding the target for 201 5 by 5%. The design of the water tap, showered by using the recycling water system, dominates the water usage. Hotels also have the capacity to address local resource management issues through innovative solutions such as glass water bottling, rainwater harvesting, use of solar energy and the incorporation of composting and herb gardens to manage food waste. Obviously, the operations or facilities have a close relationship with sales increase and profitability.
Good design will increase hotel sales and bring more profit for the industry. Elements of Effective Design There are few elements will impact the design decision-making process, first one will be the request of a creative brief. Shanghai-La hotel Sydney will ask the designer or strategist for a creative brief, which is an outline of the project goals to be adhered to over the course of the project. Take for example a decrease water pressure water tap by 20% will help reach the goal of a 20% overall reduction in water usage.
Shanghai-La does not only pay attention on the internal environmental issue, sake for example Shanghai-La’s Care for Nature Project which aims to make a concerned effort towards biodiversity conservation and habitat protection. Shanghai-La delivers the concept of this project to the guests who come to hotel and that can increase the reputation of this company. Because guests are willing to pay more to support Shanghai-La corporations ensure the project, they will feel that they have participated in the project.
Evaluating the alternatives has been said to be one of the most important stages in the design making process. Shanghai-La should find out the advantages and disadvantages of each option. Disadvantages may include large investments to rebuild the hotel or renovate facilities; it will be the advantages for the hotel by applying forward thinking. Some hotels would not change to CEO facilities because of the big investment, not to mention the long-term benefit. One stage would be to make a decision, where Shanghai-La would have to analyses before preceding the decision come up with a better solution.
All the staff would get involved with the next step, which is to implement the solution. It is essential to work together for reaching the target or decision the hotel made. The staff should have CEO thinking to support the new hotel environmental design, bring out their own opinions to improve the design better and educate the guests with use of some environmental posters, booklets, and providing the discount for the guests who do not change bed sheets during their stay.
Monitor the solution, it is crucial to keep eyes always on the process, and correct the error during the process. Shanghai-La may need to measure the implemented result to meet their expectations. Monitoring the solution is a tool to help industry to find out their mistakes and come up with best solution. Long-term Advantages Tourism is known for being one the industries that brings benefits and opportunities to an economy. Only recently has it been recognized that it is interdependent with the environment. What is sustainable development?
According to our Lectures, Sustainability is about being able to continue an activity for a prolonged period of time while minimizing the risk to the environment so that it would not compromise the ability of future generations. Though there may be barriers and obstacles with regard to the application of sustainable development in an organization, it will give us the following unifies in the long run; Economic Benefits It will be seen as an investment for a number of reasons. The cost you spend to make the hotel more environmentally friendly may seem large, but you will get the returns, if thought out and carried out correctly and carefully.
Firstly, the financial saving you will receive from the local government, in terms of reduced tax, only if you are participating as an CEO-friendly hotel in the environmental programs, or if you are a certified CEO-friendly hotel. Also, as you reduce the amount of energy you are using, you are making it much more cost efficient. Purchasing environmentally friendly machinery and products can enhance this, for example, the dual flush toilets and low- pressure soreheads. The difference in cost afterwards is very significant.
Social Benefits Another benefit would be social image, which can also be classified as brand image; the way the community sees your organization. There is a gradual increase in the number of customers who have started to consider the environment as part of their accommodation choice. Several brands have already repositioned their target market towards the more environmentally and socially conscious younger generation. Although Shanghai-La is already a very reputable brand, by building a stronger and larger target market or customer base, it will gain a competitive advantage amongst other hotels.
Not only will this benefit the view of people externally, it will also benefit internal morality. When you adopt the environment movement, your staff will take pride in the good that you are doing for the environment. This will increase the staff overall moral and pride of the organization, which will benefit the organization in the long run. It will spread good word of mouth to potential customers and may reduce the number of staff turnovers. They will e more happy and enthusiastic about their work and responsibilities, which will then lead to an improved efficiency.
Current Environmental Management & Principles Waste Management Waste management is one of the biggest environmental concerns in tourism and hospitality industry. Hotel businesses generate a significant amount of waste, which has direct impact to financial issues to the business itself, and environmental consequences. Also, it creates a bad reputation of the image and brand of the hotels. Therefore, it is very important for managers in hotel industry to obtain cost-effective and environmentally sustainable waste management solutions.
According to the chart below, which is based on waste research from 1 5 Melbourne hotels investigated by Great Forest Australia in 2005, 22 percent of waste is reusable and recyclable which is the biggest percentage out of other wastes and this study found out that over 80 percent of waste generated by hotels can be potentially reusable, recyclable and comfortable before being sent to landfills (Melbourne. Vic. Gob. AU). (Melbourne. Vic. Gob. AU) Shanghai-La hotels have been participating actively with recycling programmer based on ISO 14001 standards and inspected semi-annually.