Hotels’ environmental management systems (ISO 14001): creative ﬁnancing strategy Wilco W. Chan and Kenny Ho
School of Hotel and Tourism Management, Hong Kong Polytechnic University, Hung Hom, Hong Kong Abstract
Purpose – Environmental concerns have been increasing in the travel industry. However, most hotels are unwilling to develop an international environmental management system (EMS) probably due to a lack of resources and knowledge. In order to encourage more organizations to take part in the EMS, three cases adopting international EMS are investigated to ascertain the ways to support the formation of EMS. Based on their experience, hoteliers are encouraged to team up with green members to apply for research funding for the investigation and implementation of EMS. Also, “energy performance contracting” methods to ﬁnance environmental improvement projects in hotels were also discussed. Design/methodology/approach – A single case study approach was adopted to illustrate the differences in the resources mobilization for setting EMS in these three hotels. A search of documentary evidence and interviews with hotel staff was the main instrument for data collection. Findings – The Shangri-la Hotel used its own resources to set up its EMS and strategically used its developed template for other hotels in the group to follow. The other two hotels, Nikko and Grandstanford, adopted a creative and “non-balance sheet” approach to mobilize resources for the formation of EMS. Both hotels have recourse to external resources including a university’s engineering department, hotel management school, green bodies, government funds and trade associations to develop and implement the EMS. The study further identiﬁed energy performance contracting as another promising ﬁnancing tool for the implementation of the energy-related part of the EMS. Research limitations/implications – The representative and general nature of the ﬁndings are limited to large hotels in metropolitan areas, as the three case hotels are located in the metropolis of Hong Kong. Practical implications – The ﬁndings provide informative details on how to secure external resources to set up internationally recognized environmental management systems and the safe way for hotel operators to trial use energy-saving facilities. Originality/value – This study provides indications and details on some creative ﬁnancing techniques for setting up EMS in hotels. These ﬁnancial strategies are the ﬁrst of their kind in print and can serve as a useful reference for hotels to develop international EMS. Keywords Environmental management, Hotels, Financing Paper type Case study
International Journal of Contemporary Hospitality Management Vol. 18 No. 4, 2006 pp. 302-316 q Emerald Group Publishing Limited 0959-6119 DOI 10.1108/09596110610665311
Introduction Many efforts on environmental protection work in hotels in the 1990s were a continuation of some long-standing environmental concerns such as energy Support for the author from Mr Tamiyasu Okawa and Mr Jean-Marie Leclercq, the present general manager and ex-general manager of The Hotel Nikko Hongkong is gratefully acknowledged. The author would also like to thank The Hong Kong Hotel Association for the help in providing valuable information.
conservation, sewage discharge, air and noise pollution that occurred over the past few decades (Stipanuk, 1996). Coupled with this development have been the growing concerns for a “green” hotel in the eyes of customers. A study indicated that 75 percent of interviewed customers claimed that they were environmentally-minded consumers and would choose hotels which showed concern for the environment (Feiertag, 1994). Also, Cook et al. (1992) pointed out that business in the travel industry was required to adapt to new environmental realities and to implement...