Professional Documents
Culture Documents
gy Challenges:
g Egypts
gyp Next
Battle
Third
Thi d Round
R
d Table
T bl for
f UN Global
Gl b l Compact
C
t Local
L
l Network
N t
k / ECRC
Hisham Zaazou, First Assistant to the Minister of Tourism
Ministry of Tourism, Arab Republic of Egypt
Cairo : 27 Sep, 2010
Eco
Eco-Tourism
Tourism is the way of the future - this is the right time to get on board while some first
first-mover
mover
advantage is still attainable
To become a Green Tourist Destination, a holistic approach has to be used, based on four key Greening
components: Reduced Carbon Emissions, Sustainable Water Supply, Effective Waste Management,
Healthy Bio-Diversity
Sharm has a lot of opportunity for substantial improvement along all greening components - if the current
trend of environmental degradation is not reversed, Sharm risks losing at least 16 - 35% of its annual
revenue (USD 300
300-600
600 Mn per year)
A holistic Green Sharm Initiative has been developed to address all four greening components through
a set of 33 integrated projects
Th
The IInitiative
iti ti uses a two-stage
t
t
strategy:
t t
St
Stage
1 achieves
hi
li ti green results
realistic
lt ffor Sh
Sharm iin th
the shorth t
medium term, while Stage 2 aims for a more radical green approach in the longer-term
The Initiative requires a cumulative investment of EGP 1.6 Bn over the next 10-years (above 2% of
y) 48% of which offer strong
g returns-on-investment for local
Tourism Revenue from Sharm annually)
businesses and can thus be financed through the private sector
Source: Booz & Company analysis
STRICTLY CONFIDENTIAL - FOR INTERNAL USE ONLY
Mn Tourists
1,800
1,600
,
4.0%
Total World
Tourism
1,400
1,200
1,000
800
600
14.9%
Ecotourism1
400
200
0
% of Global
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
15%
19%
23%
24%
27%
29%
32%
33%
35%
38%
41%
45%
Note:
1) Ecotourism is referred to by the WTO as nature based tourism
Source: World Travel and Tourism Council; The International Ecotourism Society; UNWTO; Locum Consulting; Booz & company analysis
STRICTLY CONFIDENTIAL - FOR INTERNAL USE ONLY
Sustainability Com
mponents
Emissions
2
Water Supply
pp y
Technology &
Operations
Stakeholder
Choices &
Behavior
Regulations &
Governance
Bio-diversity
Source:
A
Breakdown of Total Sharm Emissions
- 2007 (Kt CO2)
Limited Local
I fl
Influence
Area of Full
Local Influence
30%
Fuel Oil2
27%
Hotels
56%
Air Transport
68%
Gasoline
1% 1%
% Diesel
Natural Gas
11%
Other
Infrastructure
Total = 3.02 Bn MJ
Avg. Global Energy Supply
2%
3%
Water Transport
Total = 992 Kt
Note
Land Transport
Oil
34%
Coal
25%
Gas
21%
Renewable
13%
Nuclear
7%
20%
Green Energy
A
Average Land Vehicle Emissions
- gm of CO2 per passenger km Future land transport
options for Sharm
SharmHurghada
Trips
160
140
International
Trips
6.0
115
Max.
99
Local
Diving
Trips
22
97%
2.5
4.3
31
Avg.
1.4
Note
Battery
Plug-in
Electric
Hybrid
(Renewable
energy)
Sharm
Taxis
T t l CO2
Total
= 34,424 tons
Carbon Emissions
Beach
B
Des
stinations
Be
est
Prac
ctices
37
Majorca
Seychelles Islands
Sharm
140
72
212
Avg. by
y
Continent
Middle East
Europe
51
Africa
225
CO2e
GN
Energy/
GN
CO2e/
Energy
164
226
237
Caribbean
240
North America
244
25 7%
25.7%
18 0%
18.0%
6 5%
6.5%
C
Constant
t t
Note:
1) In Melbourne
2) For Holiday Inn; Laguna Beach and Laguna Gardens Resorts
Source: Sustainable Tourism Project Report; UNWTO; Green Globe; Booz & Company analysis
STRICTLY CONFIDENTIAL - FOR INTERNAL USE ONLY
Water Supply
Electricity Consumption
C
in Desalination
By Reverse Osmosis1
- KWh per m3 -
7
10%
5%
5%
Tokyo
Berlin
13%
%
7%
Paris
3
4
Max
Sharm
Min
149
Best Practice1
Malta
Note:
Spain Balearic
Islands
Sharm
Caribbean
Greece
(Aegean
Islands)
Solid Wastte
Level 5
Level 1
Waste
Collection and
Transportation
Bestpractice
Current
Sharm
Baseline
Liq
quid Waste
Waste Management
Collection of
waste in closed
carts or disposal
bags
Transportation
of waste in
closed trucks
Disposal
Disposal of
remaining waste
in a sanitary
landfill
Recycling/
Processin
g
Sorting and
recycling of
waste
Energy
Recovery
Using waste to
generate energy
Waste
Optimizati
on
Prevention, and
minimization of
waste at main
sources
Dumping in
desert in nonsanitary landfill
Filtration
Chlorination
54%
46%
Note:
Executive regulations of law 4 of 1994 prohibit the emanation of bad odor from treated wastewater
Source: Governorates Environmental Affairs Office; Law 4 of 1994 and its Executive Regulations; Booz & Company analysis
Bio-Diversity
Summary of Current State
Sector Overview
1 Demand is intense and threatening
biodiversity
~80,000 dives and snorkel stops
per site - 4x above internationally
accepted levels
At current rate, dives expected to
reach 172,000 by 2020
Capacity is not actively managed
2
Infrastructure (moorings, marinas,
boats) cannot meet forecasted
demand in 2015
Reefs are in good health due to
Market Economics
4 Prices for diving are low and not
proactively managed
inefficiently applied
10
Tourism Revenue
from Divers
NON EXHAUSTIVE
Total # of Tourists
in Sharm
Avg. Companions
per Diver
Total # of Tourist
Visits at Risk
2.3 Mn
7 - 15%
1.5
0.4 - 0.86 Mn
Avg. Spending
per Tourist Stay
$780
$636
$780
$726
Total Revenue
From Divers
Total Revenue
From Companions
$ 1.8 Bn
$102-219 Mn
$189-405 Mn
$ 291 Mn $ 624 Mn
(16%)
(35%)
11
12
Phase I
Scoping & Target Setting
Key
K
Elements
Completed
(6 Months)
M th )
Phase II
Project Planning & Design
Launch high-priority projects
identified in Phase I
Develop detailed transformation
blueprint, e.g.
Detail legal and/or regulatory
framework
Detail future investment needs,
and study public and private
financing opportunities
Outline delivery platform for key
environmental components
Initiate discussions on relevant
public-public partnerships with
key stakeholders
Build consumer demand approach
to brand, market and promote
green tourism in Sharm
O G i
On-Going
Phase III
Multi-year Implementation
Finalize the implementation
roadmap to become a green
destination
Secure public and private
commitment
St
Structured
t d and
d well-phased
ll h
d
implementation of all individual
initiatives identified in Phase I and II
Ongoing monitoring of
implementation progress
13
G
Green
Targets
T
t by
b 2020
Emissions
(Ktons)
128
Emissions
GN by 13%
c Decrease water consumption per guest
Water Supply
network by 75%
Hotels Energy
Consumption 172 184
(MJ per GN)
212
Water
C
Consumed
d
(litres per GN)
336
Bio-diversity
y
48%
Liquid
q
Waste
Index
L1
413
359
20%
L2
L1
Waste
Management
323
505
Coral
Degradation
(% per year)
5%
L3
L3
Water Waste
(%)
5%
L5
Solid Waste
Index
g
of
g Reduce the rate of degradation
biodiversity to 5% per year
Long-term Vision
2020 Target
Baseline (2008)
1)
Level based on qualitative Booz & Company evaluation
Source: Booz & Company analysis
Prepared for H.E. The Prime Minister of Egypt
14
Bio-diversity
Waste
Management
Emissions
Water Supply
Greening Programs
ii Conservation of Bio-diversity
iii Effective Waste Management
iv Green Energy Infrastructure
v Green Land Transport
vi Operational Efficiency Improvement for Hotels
vii Operational Efficiency Improvement for other Buildings
viii Green Building Design
ix Green Water Transport
Enabling
E
Prrograms
15
Conservation of
Bio-diversity
Greenin
ng
Projectts
Bio-diversity
iii
2
Waste Management
v
3
Emissions
vi
E
Enabling
Projects
xi
16
Financing
Contribution
Ch
Channels
l
Comments
Internal
Financing
MultiCorLateral porations
Orgs&
Intl Govs
Philanthropy
National
Government
Individuals
Revenues
Revenues
R
Sponsorship / Partnership
Fundraising
Contributions
Capital
Market
Financing
Equity
Sourcing
Debt
Sourcing
Exte
ernal
Exte
ernalFunds
Funds
Special
p
Events
17
Description
2010-2012 Funding
Requirements (EGP Mn.)
Green
Center
37.3
Biodiversity
29.3
Marketing
17.0
Green Fund
Establish the Green Tourism Fund to secure financing for priority programs
Launch fund raising campaign
11.0
18
Wave 2
July - August
September - December
Solar Power Plant
European
Neighborhood Policy
GFMECD
Forum on China-Africa
Cooperation
African Development
Bank
World Bank
CTF
Waste Management
Upgrade Water Supply
French Development
Agency
USAID
Others
19
20