Ensuring Sustainability in Sri Lankas Growing Hotel Industry

2013

IFC Disclaimer
This publication may contain advice, opinions, and statements of various information providers and content providers. IFC does not represent or endorse the accuracy or reliability of any advice, opinion, statement or other information provided by any information provider or content provider, or any user of this publication or other person or entity.

Prepared on behalf of IFC - World Bank Group by PricewaterhouseCoopers (Private) Limited, Sri Lanka and PricewaterhouseCoopers (Private) Limited, India

Table of Contents
01
The Sri Lankan Hotel Industry - An Overview
1.1. Tourism in Sri Lankas Economy 1.2. Classication of Tourist Accommodation 1.3. Tourist Hotels

05 05 06 07

02 03
Over 100 New Hotels Under Construction
3.1. Boutique Villas and Hotels Under Construction 3.2. Guesthouses - Under Construction 3.3. Tourist Hotels - Under Construction 3.4. Resorts - Under-construction 15 16 17 17 18

Sri Lankas Highly Diverse Hotel Industry

2.1. Boutique Villas and Hotels 2.2. Guesthouses 2.3. Tourist Hotels 2.4. Home Stay Units / Bungalows / Rented Homes and Apartments

10 12 12 13 14

04 05
Resource Utilization in Sri Lankan Hotels
5.1. Energy and Water Consumption 5.2. Waste Generation and Management 5.3. Resource Efciency Potential 5.4. Resource Efciency Measures Taken by a Few Sri Lankan Hotels 5.5. Energy Consumption Details of the Sri Lanka National Energy Efciency Award (SLNEEA) Winning Hotels 27 28 30 31 32 35

Resource Utilization in Sri Lanka - An Overview

4.1. Power and Energy Sector 4.2. Power Sector 4.3. Water Sector 4.4. Solid Waste Generation

19 19 21 24 25

06 07
How to Ensure Sustainability in Sri Lankan Hotels
38

Resource Utilization Benchmarking World Over

37

List of Figures
Figure 1: Distribution of rooms according to star category Figure 2: Monthly average occupancy rate of tourist hotels in 2011 and 2012 Figure 3: Monthly average occupancy rate of tourist hotels in 2011 (Three star to ve star) Figure 4: Monthly average occupancy rate of tourist hotels in 2012 (Three star to ve star) Figure 5: Location of Boutique Hotels and Villas by district Figure 6: Location of Guesthouses in districts by grade Figure 7: Location of Tourist Hotels (One star to ve star) by district Figure 8: Location of Tourist Hotels by district Figure 9: Home Stay units/Bungalows/Rented Homes and Apartments by district Figure 10: Boutique Hotels under construction by district Figure 11: Guesthouses under construction by district Figure 12: Under construction Tourist Hotels (One star to ve star) by district Figure 13: Different sources of energy supply in 2010 (Thousand tonne oil equivalent) Figure 14: Energy consumption according to sector in 2010 (Thousand tonne oil equivalent) Figure 15: Industry sector (Thousand tonne oil equivalent) Figure 16: Household, commercial and other sector (Thousand tonne oil equivalent) Figure 17: CEBs electricity sales in 2011 according to type of consumer (Giga watt hour) Figure 18: LECOs electricity sales in 2011 according to type of consumer (Giga watt hour) Figure 19: Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour) Figure 20: Electricity sales to the hotel industry according to consumption in 2011 (in Giga watt hour) Figure 21: Quantity of water sold by NWSDB in 2009 according to type of consumer Figure 22: MSW collection according to province (Metric tonnes a day) Figure 23: Typical energy consumption in tourist hotels Figure 24: Typical water usage in tourist hotels Figure 25: A typical hotel's solid waste generation Figure 26: Energy consumption details (2011) of Sri Lanka National Energy Efciency Award award winning hotels Figure 27: Tourist Arrivals and Accommodation Details- 2002 to 2016 7 8 9 9 12 12 13 13 14 16 17 17 19 20 20 20 21 22 22 23 24 25 28 29 31 36 38

List of Tables
Table 1: Growth trends in tourism sector over the last 10 years Table 2: List of tourist accommodations (existing) in each district Table 3: Tourist accommodations under construction in each district Table 4: Expected addition in room capacity under each category Table 5: Expected addition to room capacity in tourist hotels (One star to ve star) Table 6: Sector specic quantity and type of solid waste Table 7: Resource utilization in the Sri Lankan hotel industry. Table 8: Sri Lanka National Energy Efciency Award winner hotels in 2010, 2011 and 2012 Table 9: Resource utilization benchmarking details of hotels in various countries 5 11 15 16 18 26 27 35 37

List of Abbreviations
AIHE BOD CBSL CEB COD EEPEX ESCOs ETP EU GDP GWh HACCP IFC kWh LECO MSW NWSDB PADGO SLNEEA SLTDA SLSEA STP T.D. TSS WTO Australian Institute of Hotel Engineering Biological Oxygen Demand Central Bank of Sri Lanka Ceylon Electricity Board Chemical Oxygen Demand Enhancing Environmental Performance in Key Sri Lankan Export Sector Energy Service Companies Efuent Treatment Plants European Union Gross Domestic Product Giga Watt Hour Hazard Analysis Critical Control Point International Finance Corporation Kilo Watt Hour Lanka Electricity Company Private Limited Municipal Solid Waste National Water Supply and Drainage Board Portfolio Approach to distributed Generation Opportunities Sri Lanka National Energy Efciency Awards Sri Lanka Tourism Development Authority Sri Lanka Sustainable Energy Authority Sewage Treatment Plant Time of Day Total Suspended Solids World Tourism Organization

Summary
Sri Lankas hotel industry is a key driver of economic growth in the island nation. Tourist arrivals have almost doubled since the end of the conict in 2009. The government of Sri Lanka is implementing a tourism master plan that envisages the arrival of 2.5 million tourists by 2016. This will place a huge strain on resources, especially energy and water, and will create immense challenges in the efcient use of these resources as well as disposal of solid and water waste. Given this situation, Sri Lankas hotel industry needs to implement immediate measures that will use resources and recycle waste with greater efciency. This paper, commissioned by IFC, lists a number of ways in which some hotels are already engaged in this. Most hotels can easily adopt these best practices. At the same time, authorities have already sanctioned over a hundred hotels that are currently under construction in various parts of the country. These new hotels, which plan to open for business in the next two years, will have to adopt resource efcient measures from the outset. As the hotel industry continues to grow rapidly, authorities need to encourage sustainability practices by recognizing and promoting hotels that implement energy saving and recycling measures in their operations. Experience shows that sustainability translates into protability. Best practices are often subsequently rewarded. With this growth, it becomes important that Sri Lanka's pristine environment does not suffer. Through joint efforts from the government and industry, this growth can be planned and systematic to achieve sustainability. This will result in a reduction in the emissions of millions of tons of greenhouse gases into the atmosphere, which can have irreversible effects on Sri Lankas fragile ecology.

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The Sri Lankan Hotel Industry An Overview

1.1. Tourism in Sri Lankas Economy
Sri Lanka has witnessed unprecedented economic growth since the end of its three-decade long civil conict in May 2009. The tourism sector has emerged as a frontrunner in Sri Lankas economic activities. According to Central Bank of Sri Lanka (CBSL), the hotel industry contributed around two percent to the countrys gross domestic product (GDP) in 2011. Sri Lanka is on its way to becoming a major tourism destination in South Asia. Table 1 shows the huge growth of the tourism industry, which has nearly doubled in the last three years.

Year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Total Tourists Arrived (No.)

393,174 500,642 566,202 549,308 559,603 494,008 438,475 447,890 654,476 855,975

Establishments Providing Accommodation (No.)

455 498 585 626 749 758 834 871 783 906

Annual Room Occupancy Rate (Percentage)

43.1 53.2 59.3 45.4 47.8 46.2 43.9 48.4 70.2 77.1

Gross Tourist Receipts (million USD)

363 441 513 429 410 385 342 350 575 830

Table 1 Growth trends in tourism sector over the last 10 years

Source Sri Lanka Tourism Development Authority and Central Bank of Sri Lanka

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The Sri Lankan Hotel Industry An Overview

1.2. Classication of Tourist Accommodation

Sri Lanka Tourism Development Authority (SLTDA) classies the tourist accommodation sector into four different categories:

Boutique Villas and Hotels

Guesthouses

Home Stay Units

Tourist Hotels

Boutique Villas and Hotels

Boutique hotel is a popular term to describe sometimes luxurious or unique and unusual hotel environments. Boutique hotels differentiate themselves from larger chain/branded hotels and motels by providing personalized accommodation and services/facilities. There are no standard classication criteria for boutique villas and hotels. Boutique hotels are standalone and unlikely to be part of large hotel chains. They focus on tranquillity and comfort rather than gadgetry. A 24-hour hotel staff often attends to guest services. Many boutique hotels have on-site dining facilities and offer bars and lounges, which may also be open to the public. The concept of boutique or designer hotels is becoming increasingly popular in Sri Lanka.

Guesthouses
A guesthouse is similar to a hotel or bed and breakfast facility. A guesthouse in Sri Lanka is normally an accommodation unit with ve or more bedrooms.

Home Stay Units/Bungalows/Rented Homes and Apartments

The main aim of these facilities is to provide clean, comfortable and affordable supplementary accommodation to tourists. Tourists in return will experience local customs and traditions, authentic cuisine, and other attractions of the location while staying with local hosts.

Tourist Hotels
Tourist hotels provide paid lodging, usually on a short-term basis. Facilities provided include attached bathrooms, air conditioning or climate control, telephones, alarm clocks, television, and internet connectivity. Snacks and drinks may be available in a mini-bar and facilities for making hot drinks are usually provided. Larger hotels may provide additional guest facilities such as restaurants, swimming pools, childcare, and have conference and social function services. Our study focuses on tourist hotels, segmented under standard star category classication.

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The Sri Lankan Hotel Industry An Overview

1.3. Tourist Hotels

According to Sri Lanka Tourism Development Authority (SLTDA) Statistical Report of 2011, 906 lodging establishments with 20,794 rooms were registered with it at that time. These establishments were dominated by tourist hotels, which accounted for 70.5 percent (or 14,653) of total room capacity. SLTDA denes tourist hotels as establishments whose operations are considered to be of international standards. The majority of these rooms are concentrated in the Colombo and greater Colombo area. SLTDAs grading is based on criteria set by World Tourism Organization (WTO). The government of Sri Lanka classies tourist hotels in ve different star categories, ranging from one to ve stars. Currently, the country has a high concentration of ve-star rated establishments, followed by the budget two-star category. A large number of hotel rooms in the country continue to be unclassied, with no star rating. These are mostly independently owned properties with smaller room inventories that offer less expensive but non-standard product options to tourists. Unclassied properties cater to demand that cannot be met by branded establishments, either due to high room rent or because they are sold out. They will continue to form an important part of the hotel industry in Sri Lanka.

Distribution of rooms as per star category (percentage)

22.04

35.95

12.17

Five star Four star Three star Two star One star Unclassied

3,230 1,784 1,178 2,022 1,171 5,268

7.99 13.80

8.04

Figure 1 Distribution of rooms according to star category

Source SLTDA Statistical Report 2011

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The Sri Lankan Hotel Industry An Overview

Figure 2 shows the occupancy rates of tourist hotels by month during 2011 and 2012. Occupancy rates from October to December 2012 are not yet available.

Monthly average occupancy rate of tourist hotels in 2011 and 2012

74.9 81.2

72.6 72.1

62.2

70% 60% 50% 40% 30% 20% 10% 0% Jan Feb Mar Apr
53.5

57.3

44.6

47.4

70.6 72.5

80%

73.5

78.1 77.1

80.8

90%

84.4 85.9

85.1 87.4

May

Jun

Jul

Aug

Sep

Oct

90.3

100%

Nov

95.0

Dec

Figure 2 Monthly average occupancy rate of tourist hotels in 2011 and 2012

Source SLTDA Monthly Statistical Bulletin

2011

2012

* Data not available

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The Sri Lankan Hotel Industry An Overview

Figure 3 and Figure 4 show monthly occupancy rates of three star to ve star tourist hotels during 2011 and 2012. In Figure 4, occupancy rates from November to December 2012 are not yet available.
100%
86.9 85.8 79.9

Monthly average occupancy rate of tourist hotels in 2011 (Three star to ve star)
83.5 86.3 79.5 85.2 84.1 80.8 90.2 91.7 88.8

77.0 75.9 70.8

76.3 74.5 69.6

78.2 79.3 78.2

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

76.3 75.6

65.2 61.4 57.6

Jan

Feb

Mar

Apr

May

55.5 54.7 58.6

Jun

Jul

Aug

67.9

74.3 71.7 69.6

Sep

Oct

Nov

Figure 3 Monthly average occupancy rate of tourist hotels in 2011 (Three star to ve star)

Source SLTDA Monthly Statistical Bulletin

Five star

Four star

Three star

Monthly average occupancy rate of tourist hotels in 2012 (Three star to ve star)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct

88.2 87.3 81.1

84.1 80.1 78.2

88.9 86.2 83.3

77.4 76.2 75.4

51.1 58.4 52.9

Figure 4 Monthly average occupancy rate of tourist hotels in 2012 (Three star to ve star)

Source SLTDA Monthly Statistical Bulletin

46.2 48.3 43.8

49.3 47.6 44.4

Five star

74.9 70.3 71.8

73.2 71.9 70.4

Four star

71.5 72.3 74.7

Three star

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Sri Lankas Highly Diverse Hotel Industry

The Sri Lankan hotel industry is concentrated around Colombo, the economic and nancial hub as well as the gateway to the rest of the country. The southern region comes second as hotel owners take advantage of Sri Lankas beach attractions, followed by ancient cities. The newly liberated eastern and northern regions have the potential to grow and contribute more to this industry. The industry primarily consists of tourist hotels and other establishments that include boutique villas/hotels, guesthouses, inns and youth hostels approved by SLTDA. Table 2 has mapped all types of existing tourist accommodation by districts.

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Sri Lankas Highly Diverse Hotel Industry

District Name

Boutique Hotels/Villas
Boutique Hotels

Guesthouses

Tourist Hotels

Home Stay Units / Bungalows / Rented Homes and Apartments

Home Stay Units Rented Homes and Apartments 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2

Boutique Villas

Unclassied

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Ampara Anuradhapura Badulla Batticaloa Colombo Dambulla Galle Gampaha Hambantota Jaffna Kalutara Kandy Kegalle Kurunegala Matale Matara Monaragala Negombo Nuwaraeliya Polonnaruwa Puttalam Ratnapura Trincomalee Vanniya

0 0 0 0 1 0 11 2 2 0 2 3 0 0 1 0 0 0 4 0 1 0 0 0 27

0 1 0 1 3 0 10 0 0 0 1 1 0 1 2 1 0 1 0 0 0 1 0 0 23

0 5 11 1 25 0 23 27 5 2 22 25 9 9 10 13 5 0 11 6 7 7 3 2 228

2 6 17 5 39 0 28 32 10 3 22 14 8 21 8 12 6 0 5 6 4 6 5 0 259

0 1 0 1 0 0 3 3 1 0 2 0 0 0 0 1 0 0 0 1 0 0 1 0 14

0 0 0 0 6 0 2 0 0 0 2 2 0 0 1 0 0 0 0 1 0 0 0 0 14

0 0 0 0 3 0 1 1 0 0 1 1 0 0 2 0 1 0 2 1 1 0 1 0 15

0 1 0 0 3 0 0 2 1 0 1 2 0 0 1 0 0 0 2 1 1 0 0 0 15

0 1 0 0 2 0 7 5 2 0 4 5 0 1 2 1 0 0 0 1 1 1 2 0 35

0 2 0 0 9 0 4 4 2 0 1 3 0 1 1 1 1 0 4 1 0 1 0 0 35

2 3 7 0 9 0 28 21 8 0 15 13 1 0 6 5 1 0 4 4 4 0 4 0 135

0 0 1 0 15 1 3 8 0 0 1 5 0 0 1 1 0 0 5 0 0 0 0 0 41

Total Units

24

Table 2 List of tourist accommodation (existing) in each district

Source SLTDA

Bungalows 0 0 4 0 10 0 1 0 0 0 1 4 0 0 1 0 0 0 2 0 0 1 0 0

S.NO.

C Grade

A Grade

B Grade

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Sri Lankas Highly Diverse Hotel Industry

2.1. Boutique Villas and Hotels

Boutique villas and hotels are spread across various districts of Sri Lanka. SLTDA has, to date, approved 27 boutique villas and 23 boutique hotels. Most villas and hotels are concentrated in Kandy and the coastal districts of Galle and Colombo. Location of Boutique Hotels and Villas by district
11 10

3 1 Anuradhapura 1 Batticaloa 1 Colombo Galle

2 Gampaha

2 Hambantota

3 1 1 Kandy 1 Kurunegala 1

4 2 1 Matara 1 Negombo Nuwaraeliya 1 Puttalam 1 Ratnapura

3 5 1 2

Kalutara

Figure 5 Location of Boutique Hotels and Villas by district

Source SLTDA Boutique Villas Boutique Hotels

2.2. Guesthouses
A guesthouse in Sri Lanka is an accommodation unit with ve or more bedrooms. These guesthouses are located across many districts. Based on facilities available, SLTDA has graded them into A, B, and C categories1. Of the 501 guesthouses approved by SLTDA, 228 are A grade, 259 B grade, and 14 C grade.
39 32 25 17 11 2 5 6 1 1 5 1 3 3 5 1 2 10 3 2 28 27 23 22 22 14 9 8 9 10 8 1 25 21 13 12 5 6

Location of Guesthouses in districts by grade

Matale

11 5 6 6 1 7 4 7 6

Ampara

Anuradhapura

Badulla

Colombo

Galle

Gampaha

Hambantota

Jaffna

Kalutara

Kandy

Kegalle

Kurunegala

Matale

Matara

Monaragala

Nuwaraeliya

Polonnaruwa

Ratnapura

Trincomalee

Batticaloa

Figure 6 Location of guesthouses in districts by grade

Source SLTDA A Grade B Grade C Grade

The grading is based on the how much the guesthouses comply with conditions dened by the the Tourism Development Act, No. 14 of 1968, which says: "To qualify for A, B or C grade, a Tourist Guesthouse shall obtain minimum points allotted to essential items as 90 percent, 70 percent and 60 percent respectively and obtain total marks as 80 percent, 60 percent and 50 percent respectively from the criteria."

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Puttalam

Vanniya

02

Sri Lankas Highly Diverse Hotel Industry

2.3. Tourist Hotels

Tourist hotels dominate tourist accommodation in Sri Lanka. The 248 tourist hotels approved by SLTDA have been categorized into two major types: classied and unclassied. Classied hotels are further categorized from one to ve stars based on criteria specied by World Tourism Organization (WTO). A large number of tourist hotels continue to be unclassied, as they do not meet these criteria. Unclassied properties cater to demand that cannot be accommodated by branded establishments due to high rentals or non-availability. They form an important part of the hotel industry in the country. According to the SLTDA Statistical Report 2011, tourist hotels accounted for 70.46 percent of the industrys total room capacity for that year. Of the 249 tourist hotels, 114 hotels were classied and 135 unclassied. In the classied category, 14 were ve star hotels mainly concentrated in Colombo and greater Colombo regions. Of the remaining, 15 were four star, 15 three star, 35 two star, and 35 one star hotels. These were spread across the country, but concentrated in Galle, Colombo, Kalutara, and Kandy districts.

Location of Tourist Hotels (One star to ve star) by district

9 7 6 5 2 11 2 33 4 2 1 4 2 1 22 1 1 11 4 2 3 2 2 1 2 2 1 1 1 5 4 22 11 1 1 1111 1 11 1 11 2 1

11

Anuradhapura

Gampaha

Galle

Hambantota

Kalutara

Matale

Matara

Monoragala

Nuwaraeliya

Polonnaruwa

Puttalam

Kurunegala

Ratnapura

Colombo

Kandy

Figure 7 Location of Tourist Hotels (One star to ve star) by district

Source SLTDA One star Two star Three star Four star Five star

Location of Tourist Hotels by district

21 13 3 Anuradhapura 4 4 4 4 5 6 7 8 9 15

28

1 Kegalle

1 Monaragala

2 Ampara

Nuwaraeliya

Polonnaruwa

Trincomalee

Matara

Matale

Badulla

Hambantota

Colombo

Kandy

Kalutara

Gampaha

Figure 8 Location of Tourist Hotels by district

Source SLTDA

Puttalam

Page 13

Galle

Trincomalee

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Sri Lankas Highly Diverse Hotel Industry

2.4. Home Stay Units/Bungalows/Rented Homes and Apartments

These units provide clean, comfortable, and affordable supplementary accommodation to tourists. Sri Lanka has 41 home stay units, 24 bungalows, and two rented apartments approved by SLTDA. Most are located in and around Colombo.

Home Stay units/Bungalows/Rented Homes and Apartments by district

15

10 8

5 4 3 4

2 1 1 1 1 1 1 1 1 1 1 1

Badulla

Dambulla

Gampaha

Kalutara

Matara

Galle

Matale

Nuwaraeliya

Figure 9 Home Stay units/Bungalows/Rented Homes and Apartments by district

Source SLTDA

Home Stay Units Bungalows Rented Homes and Apartments

Page 14

Ratnapura

Colombo

Kandy

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Over 100 new hotels under construction

Tourist accommodation currently under construction are located mainly in Galle, Colombo, Batticaloa, and Kalutara districts. According to SLTDA, 104 tourist hotels are under construction in 15 districts. Of these, 68 are tourist hotels, 15 boutique villas and hotels, 13 guesthouses, and eight resorts. SLTDA granted approvals to these projects from September 2010 to October 2012. Table 3 lists tourist accommodation (all types) under construction in each district.

District

Boutique Hotels/Villas

Guesthouses

Tourist Hotels

Resorts

District Wise Total

S.NO.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Anuradapura Badulla Batticaloa Colombo Galle Gampaha Hambantota Jaffna Kalutara Kandy Matale Matara Nuwara Eliya Puttalam Trincomalee

0 0 2 1 4 2 1 0 0 0 0 2 0 1 2 15

0 1 3 0 1 0 1 0 3 0 1 1 0 1 1 13

0 0 0 2 3 2 0 0 2 1 0 0 0 0 0 10

0 0 2 2 3 1 1 0 2 0 0 1 0 3 2 17

0 0 2 7 5 2 1 3 3 1 2 2 1 0 1 30

0 0 1 3 0 1 2 1 1 1 0 0 0 0 0 10

0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1

1 0 1 0 1 0 0 0 1 0 1 1 0 1 1 8

1 1 12 15 17 8 6 4 12 3 4 7 1 6 7 104

Total Units
Table 3 Tourist accommodation under construction in each district

Source SLTDA

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Over 100 new hotels under construction

Table 4 details expected addition in room capacity under each category of under construction tourist accommodation.

Category
Boutique Villas and Hotels Guest Houses Tourist Hotels Resorts

Addition in room capacity (Number of rooms)

441 175 4421 146

Table 4 Expected addition in room capacity under each category

Source SLTDA

3.1. Boutique Villas and Hotels - Under Construction

Sri Lanka Tourism Development Authority (SLTDA) has approved 15 new boutique hotels, which are currently under construction. While these are spread across eight districts, they are concentrated along the coast, especially in Galle, Gampha, and Matara districts.

Boutique Hotels under construction by district Galle Trincomalee Matara Gampaha Batticaloa Puttalam Hambantota Colombo
2 2 2 4 4 4 4 8

Figure 10 Boutique Hotels under construction by district

Source SLTDA

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Over 100 new hotels under construction

3.2. Guesthouses - Under Construction

A guesthouse is an accommodation unit with ve or more bedrooms. SLTDA has approved 13 new guesthouses located across several districts. Guesthouses under construction by district
3 1 1 1 1 1 1 1 3

Hambantota

Trincomalee

Batticaloa

Puttalam

Badulla

Matale

Matara

Figure 11 Guesthouses under construction by district

Source SLTDA

3.3. Tourist Hotels - Under Construction

Tourist hotels account for most accommodation projects under construction. SLTDA has approved 68 new tourist hotels of which 10 are ve star hotels, mainly in the Colombo and greater Colombo areas. Of the rest, 30 are four star, 17 three star, 10 two star, and a one star hotel. These are spread across the country as shown in Figure 12. Under construction tourist hotels (One star to ve star) by district
7

3 22 11 22

33 2 1 2 1 11 2

3 22 1

3 2 1 1 11 1 2 1

3 2 1

Colombo

Galle

Gampaha

Jaffna

Kandy

Matale

Kalutara

Galle

Hambantota

Nuwaraeliya

Figure 12 Under construction tourist hotels (One star to ve star) by district

Source SLTDA Five star Four star Three star Two star One star

Page 17

Trincomalee

Batticaloa

Kalutara

Matara

Puttalam

03

Over 100 new hotels under construction

Table 5 displays the estimated percentage increase in number of rooms in the one star to ve star categories following completion of under-construction projects.

Category

Existing number of rooms (2011)

3230 1784 1178 2022 1171

Expected addition in number of room

959 1664 1451 325 22

Percentage increase in number of rooms

30 93 123 16 2

Table 5 Expected addition to room capacity in tourist hotels (One star to ve star )

Source SLTDA

3.4. Resorts - Under Construction

SLTDA has approved eight new resorts, one each in eight districts of Sri Lanka Trincomalee, Puttalam, Matara, Matale, Kalutara, Galle, Batticaloa and Anuradapura.

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Resource Utilization in Sri Lanka An Overview

4.1. Power and Energy Sector
Energy in Sri Lanka is produced from three main sources: biomass (46.08 percent), hydro (12.36 percent), and petroleum (41.52 percent). A small amount (0.04 percent) comes from non-conventional sources as shown in Figure 13. Thus, indigenous, renewable sources of energy provide 55 percent of primary energy needs. Petroleum products are fully imported and used for transport, electricity generation, and household, commercial, and industrial requirements. While electricity and petroleum products are the main forms of commercial energy, an increasing amount of biomass is commercially grown and traded. As per estimates, 70 percent of national biomass consumption is in the informal sector: for household cooking, small commercial, and industrial applications. The use of biomass in industry is growing because of price increases in petroleum fuels. A signicant number of hotels and agricultural processing units (processing of tea in particular) are switching over from oil to biomass.

Different sources of energy supply in 2010 (Thousand tonne oil equivalent)

1,352.28

4.91

Biomass 5,045.05 Petroleum Hydro Non-conventional 4,543.87

46.08 percent 41.52 percent 12.36 percent 0.04 percent

Figure 13 Different sources of energy supply in 2010 (Thousand tonne oil equivalent)

Source Sri Lanka Sustainable Energy Authority (SLSEA) Energy Balance

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Resource Utilization in Sri Lanka An Overview

Figure 14 shows energy consumption in Sri Lanka according to sector. Energy consumption will increase with economic growth and rising industrialization. Household, commercial and other sectors (including hotels) account for 49 percent, which is a major share in total energy consumption. The transport and industry sectors follow with 26 and 25 percent respectively. The agriculture sector consumes a negligible amount of energy. Figure 15 and Figure 16 present the energy consumption in the industrial sector and the household, commercial and other sectors. Energy consumption (percentage) according to sector in 2010 (Thousand tonne oil equivalent)

0 25 Agriculture Industries 49 Transport Household, Commercial and Other 10.14 2,200.45 2,336.44 4,312.93

26

Figure 14 Energy consumption according to sector in 2010 (Thousand tonne oil equivalent)

Source SLSEA Energy Balance

Industry sector (Thousand tonne oil equivalent)

Household, commercial and other sectors (Thousand tonne oil equivalent) 359.72 8 percent 521.2 12 percent

243.74 11 percent 270.73 13 percent

Biomass Electricity Petroleum

Biomass Electricity Petroleum

1,619.39 76 percent Figure 16 Household, commercial and other sector (Thousand tonne oil equivalent)

3,435.01 80 percent

Figure 15 Industry sector (Thousand tonne oil equivalent)

Source SLSEA Energy Balance www.info.energy.gov.lk

Source SLSEA Energy Balance www.info.energy.gov.lk

Note: In Sri Lanka, the hotel industry is covered under Commercial, Household and Other Sectors. Energy consumption in terms of different energy sources for the Sri Lankan hotel industry is not available separately.

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Resource Utilization in Sri Lanka An Overview

4.2. Power Sector

Demand for power in Sri Lanka has been growing at seven to eight percent annually, outstripping supply. The domestic power sector is struggling to meet the growing demand for electricity. The Ceylon Electricity Board (CEB) has a monopoly over power, with the right to generate, transmit, and distribute power.

Electricity Sales of CEB

According to the Statistical Digest 2011 - CEB, total sales of electricity in 2011 was 10,023 Giga watt hours, an increase of 8.1 percent over the previous years sale of 9268 Giga watt hours. Figure 17 breaks up power consumed according to type of consumer. Domestic consumers were supplied with 3379 Giga watt hours (33.71 percent) followed by industrial with 3131 Giga watt hours (31.24 percent), general with 1927 Giga watt hours (19.23 percent), and bulk supply to Lanka Electricity Company Private Limited (LECO), which was 1267 Giga watt hours (12.64 percent). Hotel consumers accounted for 159 Giga watt hours (1.59 percent), a 7.1 percent increase compared to 2010 (149 Giga watt hours). Street lighting and religious consumers accounted for one and less than one percent of total electricity sales.

CEBs electricity sales in 2011 according to type of consumer (Giga watt hour)

1.59 percent 1.09 percent 0.51 percent 12.64 percent Domestic Industrial 33.71 percent General Bulk Supply to LECO 19.23 percent Hotel Street Lighting Religious 3,379 3,131 1,927 1,267 159 109 51

31.24 percent

Figure 17 CEBs electricity sales in 2011 according to type of consumer (Giga watt hour)

Source Statistical Digest 2011 CEB

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Resource Utilization in Sri Lanka An Overview

Electricity Sales of LECO

The 1267 Giga watt hours of electricity to LECO was in turn distributed to its customers. LECOs electricity sales in 2011 according to type of consumer are provided in Figure 18. Of this, domestic consumers were supplied with 538 Giga watt hours (33.71 percent) followed by general with 367 Giga watt hours (30.21 percent), hotels with 37 Giga watt hours (3.05 percent), and street lighting with 23 Giga watt hours (1.89 percent). Religious consumers and temporary connections accounted for 0.66 and 0.08 percent of total electricity sales. LECOs electricity sales in 2011 according to type of consumer (Giga watt hour) 1.89 percent 0.66 percent 0.08 percent

3.05 percent 19.84 percent

Domestic General Industrial 44.28 percent Hotel Street Lighting Religious Temporary Connections

538 367 241 37 23 8 1

30.21 percent Figure 18 LECOs electricity sales in 2011 according to type of consumer (Giga watt hour) Source Statistical Digest 2011 CEB

Total electricity sales of CEB and LECO in 2011 is presented in Figure 19. Of total consumption, domestic consumers were supplied with 3917 Giga watt hours (39.3 percent), followed by industrial 3372 Giga watt hours (33.8 percent), and general 2294 Giga watt hours (23 percent). Hotel consumers accounted for 196 Giga watt hours of electricity (two percent), while street lighting and religious consumers accounted for 1.3 percent and 0.6 percent of total electricity sales. Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour) 1.3 percent 2 percent 23 percent 0.6 percent Domestic Industrial 39.3 percent General Hotel Street Lighting Religious 3,917 3,372 2,294 196 132 59

33.8 percent Figure 19 Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour) Source Statistical Digest 2011 CEB

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Resource Utilization in Sri Lanka An Overview

Electricity Sales in the Hotel Industry

The hotel industry consumed 196 Giga watt hours of electricity (from both CEB and LECO) in 2011, or nearly two percent of the country's total electricity consumption. Greenhouse gas (GHG) emissions due to electricity consumption by the hotel industry was 123,480 tonnes of CO2 equivalent2. Figure 20 breaks up the electricity sales to the hotel industry as presented in the Statistical Digest 2011 - CEB.

Electricity sales to the hotel industry according to consumption in 2011 (in Giga watt hour)

1% percent 0.5 percent Small 33 percent Small + Time of Day 46.7 percent Medium Medium + Time of Day Large Large + Time of Day 1 0 92 37 65 2

18.8 percent

Figure 20 Electricity sales to the hotel industry according to consumption in 2011 (in Giga watt hour)

Source Statistical Digest 2011 CEB

The Ceylon Electricity Board has classied consumers in the hotel industry in the following categories: Small - Supply at 400/230 volts and Contract Demand less than or equal to 42 kilo volt amperes Medium - Supply at 400/230 volts and Contract Demand above 42 kilo volt amperes Large - Supply at 11 kilo volts and above. Note: Time of Day tariff is a tariff structure in which different rates are applicable at different times of the day.

Carbon footprint calculator available on website of Greening Sri Lanka Hotels - the EU funded SWITCH ASIA Program

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Resource Utilization in Sri Lanka An Overview

4.3. Water Sector

Sri Lanka is well placed when it comes to water resources. Surface water dominates the water sector, while groundwater use is largely limited to domestic water supply and small-scale irrigation. However, increase of industrial zones and development of tourist hotels is leading to unprecedented groundwater extraction in Sri Lanka. The National Water Supply and Drainage Board (NWSDB), which currently functions under the Ministry of Water Supply and Drainage, is the principal authority providing safe drinking water and sanitation in Sri Lanka. According to NWSDBs annual report 2009, direct billing consumers (domestic, NWSDB quarters, and government quarters) accounted for 66 percent of total water sold by it. This was followed by government institutions (10 percent), commercial and industrial (nine percent), tenement gardens (four percent), bulk buildings (3 percent), board of investments (two percent), and religious premises (two percent). Schools, public stand posts (public taps), shipping, and others accounted for only one percent each of total water sold.

Sales (percentage)

2 2 3 4 9

1 1 1

Direct Billing (Domestic, National Water Supply and Drainage Board Quarters, Government Quarters) Government institutions, National Water Supply and Drainage Board premises Commercial and Industrial Tenement Gardens 66 Bulk Billing Board of Investments Religious Premises Schools Public Stand - Post Supply Others Tourist Hotels Shipping

10

Figure 21 Quantity of water sold by NWSDB in 2009 according to type of consumer

Source Sri Lanka NWSDB Annual Report - 2009

Tourist hotels purchased only one percent (1,942,000 cubic meters) of total water sold by NWSDB in 2009. Apart from government water supply, hotels also sourced water from their own resources like bore wells. In fact, bore wells are major sources of water for most hotels. Lesser sources are rainwater harvesting and third party vendors. As a major portion of demand is met by unaccounted sources, accurate information on water consumption by hotels is not available in the public domain.

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Resource Utilization in Sri Lanka An Overview

4.4. Solid Waste Generation

Solid waste, especially municipal solid waste, is a growing problem in urban Sri Lanka due to absence of proper solid waste management systems. The rate of generation of solid waste is increasing with the growth of population, technological development, and changing lifestyles. Currently, total municipal solid waste generation is around 6400 metric tonne per day for all of Sri Lanka, of which only 3770 metric tonne per day is effectively collected. The municipal solid waste collected according to province is given in Figure 22. Primary sources of municipal solid waste are households, markets, and commercial establishments. Industries and hospitals constitute secondary sources. Municipal solid waste collection according to province (Metric tonnes per day)
1873

319

353 166

506 227 96 100 130

Western

Central

North Western

Southern

North Central

Uva

Eastern

Figure 22 Municipal solid waste collection according to province (Metric tonnes per day)

Source Global Methane initiative especially municipal solid waste status, Sri Lanka in 2012

Sabaragamuwa

Collection (Metric tonnes per day)

Northern Page 25

04

Resource Utilization in Sri Lanka An Overview

Ceramic, rubber, plastics, hotel, leather, and desiccated coconut are major industrial sectors that generate solid waste. Sector specic quantities and types of solid waste are listed in Table 6.

Sector
Hotel Ceramic

Major solid waste types

Food Ceramic sludge(wet) Glazed broken items Used plaster molds Broken biscuit ware Used staggers

Quantity (Metric tonne per month)

6000 600

Rubber

Cured rubber Latex sludge (wet)

150

Plastics

Laminated plastic lms Off-cuts Adhesives tapes

70

Leather

Fleshing (wet) Sludge (wet) Scrap Bufng /splitting Trimming Hair

1500

Desiccated Coconut

Sludge (wet)

Table 6 Sector specic quantity and type of solid waste

Source EEPEx Project- Enhancing Environmental Performance in Key Sri Lankan Export Sector

The table shows that hotel industry is the main producer of solid waste among the different industrial sectors.

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Resource Utilization in Sri Lankan Hotels

With increasing awareness of the global energy crisis and growing concerns among consumers over climate change and global warming, the hotel industry needs to implement appropriate energy, water, and waste management systems by adopting better environmental practices. According to the Statistical Digest 2011 - Ceylon Electricity Board (CEB), the Sri Lankan hotel industry accounted for two percent of total electricity sales in 2011, which is equivalent to 196 Giga watt hours. It registered a growth of 3.5 percent over 2010s electricity sales (190 Giga watt hours) According to the Sri Lanka National Water Supply and Drainage Board Annual Report 2009, the Sri Lankan Hotel industry accounted for one percent (supplied by government agencies) of the countrys supplied water consumption in 2009, equivalent to 1,942,000 cubic meters.

Resource utilization in Sri Lankan hotel industry

Resource
Percent of total consumption in the country Quantity

Energy3
49 percent (2010)

Electricity
two percent (2011)

Water supplied by NWSDB

one percent (2009)

4,312.92 Thousand tonne oil equivalent(2010)

196 Giga watt hours (2011)

1,942,000 cubic meters (in 2009)

Table 7 Resource utilization in the Sri Lankan hotel industry

Note: Energy consumption data is available for Commercial, Household and Other Sector, which includes electricity also. In Sri Lanka, hotel industry is covered under Commercial, Household and Other Sector. Energy consumption share of different energy sources for the Sri Lankan hotel industry is not available separately.

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Resource Utilization in Sri Lankan Hotels

Tourist arrivals in Sri Lanka have been increasing year on year over the last three decades. In 2011, arrivals were around 850,000 and the government has set a target to increase it to 2.5 million tourists by 2016. To achieve this, the Sri Lankan hotel industry needs to double its infrastructure in the next three years. This will also result in doubling resource utilization by that time. As is apparent from energy efciency and resource improvement studies from other countries, the hotel industry possesses a savings potential of 20 percent in energy and water consumption. Waste generation can be reduced by 20 percent by improving resource utilization through adoption of best practices. Energy and water efciency and improvement in resource utilization improves the organizational performance of a hotel. It also helps greatly to position itself as a more responsible destination in the minds of consumers.

5.1. Energy and Water Consumption

The major sources of energy in Sri Lankan hotels are grid-supplied electricity, diesel for electricity generation, furnace oil for steam boiler operation, liqueed petroleum gas (LPG) for cooking, biomass from cultivated forestry, and biogas from waste. The energy use4 of a typical hotel in a warm humid climate, such as the Sri Lankan coast, is provided in Figure 23. The breakup of energy consumption is air-conditioning 50 percent, followed by lighting (20 percent), kitchen (15 percent), laundry (eight percent), and others (seven percent).

Typical energy consumption in tourist hotels in Sri Lanka (percentage)

15 Air Conditioning Lighting 50 8 Laundry Kitchen Others

20

Figure 23 Typical energy consumption in tourist hotels

Source Study on sustainable consumption practices in Sri Lankan hotels

Research paper A study on sustainable consumption practices in Sri Lanka hotel industry written by Professor N Ratnayake, University of Moratuwa and Srilal Miththapala, Ceylon Chamber of Commerce

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Resource Utilization in Sri Lankan Hotels

Hotels consume a signicant amount of water for various activities. The amount of water used directly impacts the amount wastewater generated and treated in treatment plants. The typical pattern of how water is used in the different departments of a hotel in a warm humid climate, such as the Sri Lankan coast, is shown (Australian Institute of Hotel Engineering, 1996) in Figure 24. Efforts to conserve water should be directed at guest rooms, kitchens, public washrooms, and laundry. In addition, gardening and landscaping consume substantial amounts of water, particularly in the dry season, depending on the size of garden and type of vegetation. If hotels take initiatives to reduce their water consumption, the generation of wastewater will automatically reduce, and the performance of wastewater treatment plants will improve.

Typical water usage in tourist hotel (percentage) 2 16

38

Guest rooms Air conditioning Kitchen Cold room Laundry Steam generation Lockers/Public toilets Pool

12

6 21

Figure 24 Typical water usage in tourist hotels

Source Study on sustainable consumption practices in the Sri Lankan hotel industry

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Resource Utilization in Sri Lankan Hotels

5.2. Waste Generation and Management

Hotels produce more sewage and wastewater (For example, laundry and bath wastes, kitchen wastes) when compared to domestic households. Wastewater pollutes water bodies surrounding tourist attractions, damages the environment and poses serious threats to human health. When it comes to waste management, the hotel industry is driven almost entirely by regulatory requirements, except for a few environmentally conscious hotels that take extra measures to reduce, reuse, and recycle solid waste and wastewater. This is because most establishments do not see nancial benets, as they do with energy conservation measures.

Wastewater Management
With new hotels rapidly increasing, regulatory authorities in Sri Lanka have decided to enforce stringent environmental regulations on the hotel industry. As a result, under the Sri Lanka National Environment Act, tolerance limits for industrial and domestic efuents discharged into the sea were dened in 1990. To comply, most coastal hotels were compelled to set up efuent treatment plants to treat efuents to correct standards before discharging into the sea or the coastal environment. The costs of installing and running these efuent treatment plants are high. Efuent treatment plants collect sewage and wastewater in a sewage collection tank. This is passed through a sand separator to a feeder tank and then on to two sedimentation tanks. From these tanks, the wastewater passes through soil lters and a treated water sump for reuse. Sludge produced from the sedimentation tanks is pumped to a digester tank. The digester tank produces biogas after which the sludge passes through a pressure equalisation tank to drying beds. The main by-products of the efuent treatment plant or sewage treatment plant are: Water: used for watering the garden Biogas: used for cooking Sun-dried sludge: used in the garden

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Resource Utilization in Sri Lankan Hotels

Solid Waste Management

Solid waste from a typical hotel consists of restaurant food waste, ofce paper, bottles, plastic, aluminium beverage containers, and cardboard boxes. Although this waste is diverse, hotels typically generate a consistent type of waste. The majority is paper and food waste, with lesser amounts of metal, plastic, and glass. This prole is similar to the standard municipal solid waste from residential communities.

A typical hotel's solid waste generation (percentage) 4.5

5.6 6.7

Food and Non recyclables Paper 11.7 46.2 Cardboard Plastics Glass Metal 25.3

Figure 25 A typical hotel's solid waste generation

Source UNEP manual for Cleaner production in Hotels

In a typical hotel, the breakup of solid waste generation by type is food and non-recyclables, 46.2 percent, followed by paper (25.3 percent), cardboard (11.7 percent), plastic (6.7 percent), glass (5.6 percent), and metal (4.5 percent). Variations in waste composition from one hotel to another can be attributed to differences in scope of operations and target markets. Solid waste management needs to ensure that waste is: minimised collected effectively (separated into non-degradable and biodegradable waste) treated properly disposed of responsibly

5.3. Resource Efciency Potential

Implementation of resource efciency initiatives in the Sri Lankan hotel industry is urgently needed to reduce dependency on fossil fuels and meet future demand for resources like energy, electricity and water. Various studies and initiatives indicate that there is potential to save around 20 percent in energy and 20 percent in water consumption and waste generation5.

Greening Sri Lankan Hotels Project - EU funded under the Switch Asia program

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Resource Utilization in Sri Lankan Hotels

5.4. Resource Efciency Measures Taken by some Sri Lankan Hotels

Resource efciency measures taken by various tourist hotels in Sri Lanka, as collated through secondary research, are as listed below:

Energy Conservation Measures

High and Medium Investment Measures
Variable frequency drives to reduce electricity consumption water pumping Air curtains to maintain proper cooling and reduce electricity consumption of air-conditioners Gasiers to generate energy for laundry Solar water heating systems for hot water Incandescent lights and halogen lights replaced by energy efcient lamps Card-key systems to switch off lights in absence of guests in rooms Dimmer switches to reduce energy consumption in lighting Sensors for lights in car parking areas

Low and No Investment Measures

AC temperatures set to optimum level (24-25C) Colour code system to switch lights on and off according to a schedule Lights in corridors switched on and off on a section-by-section basis Freezer curtains to reduce energy loss in cold rooms Preventive maintenance as per planned schedules

Water Conservation Measures

High and Medium Investment Measures
Separate meters to monitor water consumption in different departments Water saving cisterns with dual ushes Press-top faucets in staff canteens to reduce water wastage

Low and No Investment Measures

Daily checks for leaks in water storage tanks and taps Preventive maintenance as per planned schedules

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Resource Utilization in Sri Lankan Hotels

Wastewater Management
High and Medium Investment Measures
Sewage treatment plants for wastewater treatment

Low and No Investment Measures

Technicians to check sewage treatment plants every day Treated water from sewage treatment plant used to water gardens Water quality checked every six months by external agency to ensure discharged water meets standards set by the Central Environmental Authority Kitchen water sent through grease traps and solid grease treated with effective micro-organism solutions and completely digested

Solid Waste Management

Low and No Investment Measures
Plastic replaced by environmentally friendly materials. For example, laundry bags are made of cloth (for soiled linen) and cane (to deliver laundered clothes); shampoo dispensed in ceramic bottles and newspaper bags are made of paper Plastic water bottles provided with packed lunches. Plastic cutlery not used Use of plastic straws with cocktails or drinks reduced Plastic shopping bags discontinued and suppliers educated to use reusable plastic crates or cardboards boxes Garbage bags used only for wet garbage to meet Hazard Analysis Critical Control Point (HACCP) standards Ofce stationery and paper reused Complete computerisation and networking to make ofces paper-free Garbage and trash separated at sources of origin in all departments - such as the kitchen, restaurant and bar, housekeeping, laundry, and maintenance Garbage bins colour coded for glass and plastic, paper and cardboard, polythene and plastic, and wet garbage Guests requested to bring back picnic boxes and plastic water bottles so they can be disposed of properly

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Resource Utilization in Sri Lankan Hotels

Information Dissemination or Awareness Measures

Monetary value of wasteful use of major equipment demonstrated Notices to create awareness about energy conservation displayed in rooms Staff trained routinely on energy conservation Housekeeping staff made aware of the need to be vigilant against leaking taps All staff trained and monitored on separation of garbage Hotels under construction need to implement sustainability measures/technologies from the start. The following steps can be considered:

Energy Management and Electrical Load

Use of card key enabled switches in rooms Building management systems Use equipment that matches loads Use variable frequency drives for motors, chillers, and pumps Install automatic power factor correction capacitor banks Use energy efcient lighting systems (LEDs and CFLs) Use natural lighting as much as possible Use occupancy sensors and timers to control lighting Maintain required light levels and use efcient luminaries

Heating, Ventilation, and Air Conditioning Load

Use proper thermal insulation for walls and roofs to reduce AC loads Consider orientation of building at time of design Double glass windows and sun control lms for windows to reduce heat penetration into buildings Minimise leaks by using door closers for air conditioned spaces Use of natural ventilation/tree cover Use of efcient room air conditioning units Inverter ACs Solar ACs Hybrid ACs

Central type air conditioners with multi compressors and variable frequency drive Biomass steam boilers, solar hot water panels, heat pumps, and waste heat recovery for heating water

Water Conservation
Install water sub meters to measure water consumption in each section Rainwater harvesting Use low ow taps and showers in toilets

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Resource Utilization in Sri Lankan Hotels

Environmental Management
Use optimum sized wastewater treatment plants and sewage treatment plants Reuse sewage treatment plant treated water for gardening/toilet ushing, etc. Solid waste management Separating and sorting waste at source by using colour coded bins Biogas production from waste generated in the hotel

5.5. Energy Consumption Details of the Sri Lanka National Energy Efciency Award Winning Hotels
The Sri Lanka National Energy Efciency Award (SLNEEA) is prestigious national recognition given to organizations implementing energy efciency initiatives. The specialty of the SLNEEA program is that it recognizes energy management systems without merely focusing on specic projects. The awards highlight successful implementation of innovative, cost effective, and transferable energy efciency measures across large, medium, and small categories in the following sectors. Manufacturing Services Hotel Health care Commercial buildings State sector ofce buildings

The list of award-winning hotels is given in Table 8.

Award Category 2010

Gold Jetwing Beach

Year 2011
Heritance Kandalam Seashells Hotel (Pvt) Ltd The Tea Factory Hotel Heritance Ahungalla Nil

2012
Nil

Silver Bronze Certication of Merit

Nil Jetwing Hunnas Falls Jetwing Lighthouse

Heritance Ayurveda Maha Gedara Jetwing Blue Mount Lavinia Hotel Cinnamon Grand Bandarawela Hotel The Royal Heritage Hotel (Pvt) Ltd St. Andrews Hotel (Pvt) Ltd

Table 8 SLNEEA winner hotels in 2010, 2011 and 2012

Source SLSEA

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Resource Utilization in Sri Lankan Hotels

The Annual energy consumption details of some award winning hotels are provided in Figure 26.

Energy Consumption Details for 2011 of Selected SLNEEA Award Wining Hotels in 2010, 2011, 2012

Hotel G Hotel F Hotel E Hotel D Hotel C Hotel B Hotel A Electricity LPG (Million kilocalorie) Diesel Biomass - Firewood (Million kilocalorie) Furnace oil (Million kilocalorie)

Million kcal

5000

10000

15000

20000

Category
Electricity (Million kilocalorie) LPG (Million kilocalorie) Diesel (Million kilocalorie) Biomass -Firewood (Million kilocalorie) Furnace oil (Million kilocalorie)

Hotel A
12,148.3 1,501.6 202.0 0.0 5,652.7

Hotel B
5,200.9 77.5 0.0 0.0 3,067.8

Hotel C
2,735.7 280.3 0.0 0.0 1,051.5

Hotel D
1,309.1 359.3 78.4 1,384.3 0.0

Hotel E
556.0 168.5 754.3 460.7 0.0

Hotel F
368.3 22.4 0.0 0.0 517.2

Hotel F
143.5 88.2 0.0 0.0 0.0

Assumptions 1 kilo watt hour: 860 kilocalorie, 1 kg of LPG: 12500 kilocalorie, 1 kg Diesel: 10500 kilocalorie, 1 kg Furnace Oil: 9800 kilocalorie, 1 kg of Fire Wood: 2900 kilocalorie

Figure 26 Energy Consumption Details for 2011 of Selected SLNEEA Award Wining Hotels in 2010, 2011, 2012

Source SLSEA

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Resource Utilization Benchmarking World Over

A comparison of resource utilization benchmarking for hotels in various countries is provided in Table 9. This is based on information published in various reports and international journals on resource use and waste management in hotels. During this assignment, the project team will identify parameters for three, four, and ve star hotel categories.

Resource

Hotel Category

Vietnam Saudi

Asia

Europe Vietnam Saudi

Asia

Europe Vietnam Saudi

Asia

Europe Vietnam Saudi

Asia

Europe

Electricity Consumption (kilo watt hour/ Guest Room/Day) Water Consumption (m3 Water / Guest Room / Day) Wastewater (m3 Wastewater / Guest Room/Day) Solid Waste (kg of Solid waste / Guest Room/Day)

NA

77 - 98 <60.4

35

81 127

44 -77

<40.2

30

40 - 50 30 - 40

<21.4

25

27 - 41 15 - 27

<21.4

25

NA

6 - 21.0

NA

0.9 1.4

4.4 39.9

2.4 2.6

NA

0.2 0.3

2.2 11

1.8 2.3

NA

0.2 0.3

0.6 10.8

0.9 1.7

NA

0.2 0.3

NA

3 - 5.3

0.5

NA

13.5 32.3

1.8 2.2

0.29

NA

8.2 17.9

1.4 1.7

0.26

NA

0.7 5.6

0.4 0.8

0.26

NA

NA

14 - 33

NA

1.2 - 2

NA

7.3 12.2

NA

0.5 1.5

2.3 12

2.5 7.2

NA

0.5 1.5

1.4 1.9

0.8 2.1

NA

0.5-1.5

NA: Data is not available Table 9 Resource utilization benchmarking details of hotels in various countries Source International Journal of Basic and Applied Sciences IJBAS Vol.: 9 No: 10: Resource Use, Waste, and Total Productivity Management in Saudi Arabia Hotel Industry, Journal of Cleaner Production 13 (2005) 109116: Resource use and waste management in Vietnam hotel industry

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How to Ensure Sustainability in Sri Lankan Hotels

Sri Lanka has witnessed unprecedented economic growth since the end of its three decade-long civil war in 2009. The tourism sector has emerged as a frontrunner in Sri Lankas economic activities. According to the Central Bank of Sri Lanka (CBSL), the hotel industry contributed around two percent to the countrys gross domestic product (GDP) in 2011. Details of tourist arrivals and accommodation capacity for the last 15 years are provided in the Figure 27.

Tourist Arrivals and Accomodation Details - 2002 to 2016

3000000 2500000 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0

2000000 1500000 1000000 500000 0

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012*

2013*

2014*

2015*

* Note: Tourist arrivals and accommodation capacity from 2012 to 2016 estimated to increase by 25 percent every year. Figure 27 Tourist Arrivals and Accommodation Details - 2002 to 2016 Source SLTDA Annual Report 2011

Tourist Arrivals Accomodation Capacity (Rooms)

As per the Tourism Master Plan 2011-2016 by Sri Lanka Tourism Development Authority, the government has set a target to attract 2.5 million tourists by 2016. An estimated 45,000 hotel rooms will be required to cater to that gure, which is approximately three times existing gures. SLTDA has approved 68 new tourist hotels in the last three years, which are currently under construction. These will add over 4000 rooms over the next two to three years. As discussed in earlier sections of this report, the Sri Lankan hotel industry accounted for two percent of total electricity sales in 2011, which is equivalent to 196 Giga watt hours, a growth of 3.5 percent over 2010 electricity sales (that is 190 Giga watt hours). Apart from electricity, the hotel industry consumes signicant amounts of primary energy and water.

Page 38

2016*

Accomodation Capacity (Rooms)

Tourist Arrivals

07

How to Ensure Sustainability in Sri Lankan Hotels

If the Sri Lankan Tourism Master Plan 2011-2016 is implemented successfully, energy requirements in the hotel industry will increase by about three times the 2011 gures by 2016. This will throw out millions of tonnes more anthropogenic6 carbon into the atmosphere. Multilateral and bilateral cooperation agencies and development nance institutions should engage directly to inform, educate, and work collaboratively with the tourism industry to integrate sustainability into policies and management practices and secure its active participation in developing sustainable tourism. At the national level, government and civil society engagement should be a critical part of efforts to coordinate action towards successful implementation of resource efciency measures in the hotel industry. Some programs, which can make Sri Lankan hotels sustainable and greener, can be: Star Rating Program for Hotels: The star rating program for hotels can lead to more efforts by hotels to get higher star ratings and ultimately use that to market their hotels. This can also increase demand for these hotels in the market, based on their resource efciency. That is, actual performance of the hotels in terms of specic resource usage (specic energy consumption, specic water consumption, and specic waste generation). Ratings can be based on a one to ve star scale in each category of graded tourist accommodations with ve star labelled hotels being the most efcient. National Hotel Industry Resource Consumption Benchmarking Program: The main goal of the program can be to establish a framework to standardize data collection on resource usage, baseline setting for different graded tourist accommodations, resource utilization target setting and monitoring. This information can help users and other stakeholders evaluate hotel resource efciency, track improvements compared to other hotels, and recognize top performers. Financing Program for Resource Efcient Measures in Hotel Industry: Resource efciency and environmental investments are relatively new, so remain outside the mainstream of nancial markets (particularly in developing countries). In many cases, barriers are based on misperceptions or lack of knowledge. For example, payback periods and amounts are not clearly established for many green investments due to limited experience with them. This creates uncertainty for banks and other investors, jeopardizing nancing. Financial support (through lower interest loans) can be provided to hotel owners and energy service companies (ESCOs) to invest in resource efcient measures in hotels. This will act as a motivator for bankers, hotel owners, and energy service companies to invest in resource efcient measures in the hotel industry. From the data presented above, it is clear the rapid increase in Sri Lankan tourist hotels in the current scenario will lead to higher energy consumption and environmental degradation. Drastic measures must be taken for efcient use of resources in the Sri Lankan hotel industry through implementation of innovative programs that do not affect the economic growth of the sector.

An effect resulting from human activity

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International Finance Corporation Sri Lanka

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