130
Ljerka Cerović*, Danijel Drpić**, Vedran Milojica***
Received: December 2013 | Accepted: August 2014
Abstract
Trends on the inernaional tourist market are recording numerous changes almost on a daily basis, regarding the development of ecological tourist ofer. Modern tourists are becoming more and more aware of the necessiy of applying the principles of susainable development in everyday life, so the same preferences are being expressed during their say in their chosen tourist desinaion. he man-agement of ecologically oriened tourist desinaion must pay special aenion to the use of renewable energy sources, and in its micro-environment encourage an approach to business according to mod-ern ecological sandards. he implemenaion of renewable energy sources in tourism and hospialiy indusry aims at ensuring the improvement of business, proiling of an ecologically responsible tourist desinaion, reposiioning of the current tourist ofer on the inernaional tourist market and achieving compeiive advanages and conquest of a speciic tourist segment of ecologically-oriened consumers. he aim of the research is to point out the advanages which susainable development and applicaion of renewable energy sources has on business development in tourism and hospialiy indusry, with a goal of improving compeiive advanages and posiive efect on the environment.
Key words: renewable energy sources, susainable development, tourism and hospialiy indusry, ecologically guided consumers, compeiive advanages
Introduction
he Republic of Croaia possesses a rich resource base which is a foundaion for tourism ofer development. It must atempt to create new tourist products based on designing of new, innovaive events and aracions on the tourist market in order to aract new tourists and achieve an increase in tourist consumpion and compeiiveness. It must be designed in com-pliance with the sustainable development principles. Taking into consideraion the fact that new tourist desinaions keep emerging on the modern tourist market, Croaia must make
Renewable Energy Sources
in the Function of Sustainable Business
in Tourism and Hospitality Industry
* Faculty of Economics and Business, University of Rijeka, I. Filipovića 4, 51000 Rijeka, Republic of Croatia, cerovic@efri.hr ** Privredna banka Zagreb, Đure Šporera 3, Rijeka, Republic of Croatia, danijel_drpic@hotmail.com
the best of its resources and invest the greatest eforts in development of qualiy and diverse tourism ofer: adjustment to preferences of modern tourists, adopion of best pracice of the leading desinaions, and creaion of its own unique and top tourism ofer, all in order to stand out among countless tourist programmes and events ofered by the compeing desina-ions, and to achieve compeiive advantages on the turbulent and changing tourist market (see more in Cerović, Drpić, Milojica, 2014).
Contemporary rends on the tourist market place an important task before hotel compa-nies and creators of the tourist ofer: designing of a unique and innovaive tourist ofer which will be based on socially responsible approach based on sustainable development, using renewable energy sources, implementaion of green technologies, and ecological approach to business development. Hotel companies have recognised the necessiy to plan their future business development based on sustainabiliy and use of renewable energy sources and inno-vaive green technologies. heir applicaion in business processes of hotel and tourist enter-prises provides a signiicant possibiliy of proiling a hotel/tourist enterprise as an ecolgically aware “green” faciliy. his is especially signiicant at this point in ime, taking into consid-eraion that tourists prefer staying in faciliies which devote signiicant atenion to preserva-ion of the environment and improvement of the qualiy of life in their fundamental business postulates. In modern business operaions, with special emphasis on tourism and the hos-pitaliy indusry, sustainable development represents the only possible guideline for future successful development. Recent mass tourism rends have evidently resulted in disrupion of natural resources which represent a basis for tourism development (see more in htp://web. efzg.hr/dok/TUR/Web_Ekoturizam.pdf). It is, therefore, necessary to ensure their recon-valescence and preservaion for future generaions. hrough adequate and raional use of renewable energy sources, it is possible to achieve signiicant compeiive advantages on the tourist market through preservaion of natural resources, reducion of costs, and through implementaion of more signiicant markeing and promoional aciviies aract numerous ecologically aware tourists, which will enable proiling of a hotel and a tourist company, but also a tourist desinaion in which it operates, as a desinaion of excellence and speciic char-acterisics (see more in htp://www.aweres.net/Preuzmi/OIE_u_mojoj_zajednici.pdf). So, it is considered that encouraging use of Renewable Energy Sources can be economic and ener-geic lywheel of tourism development, with a paricular accent on hotel and camp develop-ment, but also for other tourism ofer units. (Krsinić Nižić, 2010).
Significance of Sustainable Development and Renewable Energy Sources in ensuring
Sustainable Business Activities in Tourism and Hospitality Industry
he sustainable development concept implies the process of achieving balance between eco-nomic, social and ecological requirements, provided that “meeing the needs of current gen-eraions without jeopardising possibiliies of future gengen-eraions to meet their needs” would be ensured. Since 1987, when this was deined in the Report of the World Commission for Environment and Development, presided by the Gro Harlem Brundtland, unil today, sus-tainable development became one of the key elements in formulaing and implemening development policies in the world (htp://www.odraz.hr/media/21831/odrzivi_razvoj.pdf, 10.01.2014).
132 TURIZAM | Volume 18, Issue 3, 130-139 (2014)
• Equal opportuniies for economic and socio-demographic development of all parici-pants in the business process of the hospitaliy indusry and tourism;
• Sustainable relaionship between labour and resources, in the way to preserve the resource base;
• Realisaion of added value of a hospitaliy product and tourist product through srengthening of compeiive advantages of a hotel and a tourist company;
• Promoion of use and business implementaion of internaional standards and parici-paion in programmes rom the ield of sustainabiliy and ecology (ISO14000, Green-Globe 21, Natura Programme, the Blue Flag, Agenda 21, etc.);
• Promoion of the use of renewable energy sources (installing energy saving bulbs, solar collectors, etc.) in contemporary business.
Sustainable business processes may be deined as eforts of a hotel management or a tour-ist company management invested in saisfying the owner’s needs for proit, employees’ needs for safe earnings and moivaion and to act in a imely, proacive, and creaive way to fulill the needs of their customers, but also the enire social communiy. Furthermore, sustainable busi-ness aciviies enable maximum fulillment of the needs of employer (enrepreneur), employ-ees, users of services – guests, and the environment. Responsible business aciviies of a hotel company imply that this company (adaptaion according to htp://www.greenhotels.com):
• Includes principles of sustainabiliy in its business process, especially when making business decisions and development/markeing srategies,
• Establishes co-operaion with local agriculturalists, catle breeders, olive growers, winemakers, etc. engaged in ecological farming,
• Uses organic-grown food in the producion (meals, beverages, sweets, etc.),
• Sells hand-made souvenirs, uses bedlinen and towels made of natural materials, etc. and uses the services/products which are “suitable“ for the environment,
• Can describe its business operaions by the syntagm “the greenest“ in comparison with compeiion,
• Includes permanent orientaion towards promoion of sustainabiliy and applicaion of renewable energy sources and green technologies in its business srategies, missions, visions and objecives,
• Constantly improves the level of products and services through implementaion of internaional standards of qualiy in the segment of environment and sustainabiliy, • Co-operates with all the interested stakeholders (minisries, tourist boards,
tour-ist agencies, restaurants, hotels, carriers, etc.) in promoion and implementaion of guidelines for sustainable business aciviies and sustainable development in general, • Necessary to monitor inancial viabiliy of use of renewable energy sources through
comparison of level of energy costs before and ater inroducing the same, • Builds the green image and increases energy eiciency.
All of the above leads to reducion of business risk in the segment of reducion of business costs (energy, manufacturing, waste, etc.), srengthening of recognisabiliy and compeiive posiion of the company, etc. Use of renewable energy sources plays an important part in ensuring sustainable development and sustainable business aciviies, as well as proiling an eco-tourist ofer on the contemporay tourist market.
millennium. here is no dispute about the ever-greater importance of RES in ields of global climate protecion, resource conservaion and generally perennial sustainable development. Many studies on the future consumpion of energy worldwide focus not only on the need for saving energy, but above all on the necessiy to increase RES involvement. Air polluion, water polluion and other environmental issues have long since been recognised. Humans and human aciviies are a decisive factor in changes to the environment. he conserva-ion of nature and the environment are among the highest values of any counry. his has led to consituional decrees determining the right to a healthy life and a healthy environ-ment and commiing all stakeholders to pay special concern to environenviron-mental conservaion and to ensure improved qualiy of life to the beneit of present and future generaions. At an internaional level, an agreement has been adopted by which economic growth must be sus-tainable in terms of the environment (Blažević, 2008). he increase in personal standard of populaion, accompanied by the tourist growth standard, paricularly in consrucion and equipment of tourist objects, by space heaing and cooling of all premises, leads to the grow-ing need in energy. Such a rend is clearly gogrow-ing to coninue in the future. he impact possi-biliies on energy consumpion level in tourism are great, and can comprehensively be divid-ed into two main groups. he irst group consists of material and technology consumpion in consrucion which reduces the energy consumpion, while the second group consists of the restorable energy sources and their use (Alkier Radnić, Gračan, 2008).
Renewable energy sources include: water force (hydroenergy, energy of sea currents and waves, high and low ide), biomass (and biogas, including imber and waste), solar energy, and wind energy. he basic advantage of renewable energy sources in comparison with ra-diional (non-renewable) energy sources is the fact that renewable energy sources cannot be exhausted in ime, but it is possible to fully exhaust their potenials, so that great aten-ion should be devoted to careful selecaten-ion of the locaaten-ion and realisaaten-ion of projects relat-ed to renewable energy sources (for example, building of hydro-elecric power plants). One of the disadvantages of renewable energy sources is that some of them cannot be stored and ransported in their natural form (wind, solar radiaion), while only a certain share can be stored (water in watercourses and accumulaions, biomass and biogas). herefore, energy sources which cannot be stored should be used at the moment they appear or turned into some other form of energy (adapted according to: htp://oie.mingorp.hr/UserDocsImages/ OIE%20Tekst.pdf, 10.01.2014). Considerable iniial investment costs are also considered a disadvantage of renewable energy sources; however, it is expected that renewable energy sources will become economically compeiive in relaion to convenional energy sources in the middle- to long-term period (adapted according to: htp://www.izvorienergije.com/ obnovljivi_izvori_energije.html, 10.01.2014).
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Use of renewable energy sources in the hospitaliy indusry and tourism provides numer-ous possibiliies, which are primarily visible in the increase in energy eiciency and reduc-ion of costs and need for energy. he above can be achieved by hydroelecric power, wind power, solar collectors, solar panels, use of biofuel, responsible waste disposal and waste processing (turning it into thermal energy), etc. Also, energy sustainabiliy of the system increases by a higher share of renewable energy sources in supplying businesses and house-holds, and safey of energy delivery increases while reducing dependence on import of ener-gy materials and elecric enerener-gy rom other counries.
In short, it can be concluded that sustainable development must reduce exploitaion of resources, which are usually limited, to the extent in which they can be renewed. It is there-fore necessary to promote the described development plan in all business plans. Responsible and sustainable business aciviies in the hospitaliy indusry and tourism are also derived thererom. he objecive of such business is to achieve maximum proit in all segments of a business process of a hotel or a tourist enterprise with minimum costs, taking into consid-eraion the resource base, the landscape, needs of the local communiy and visitors, enre-preneurs, and employees. he above will be achieved through the use of renewable energy sources in business aciviies of hotels and tourist faciliies, and through implementaion of green technologies.
Presentation of advantages of introducing Renewable Energy Sources in the function
of realisation of Sustainable Business of Hotel Companies
Renewable energy sources represent the key link in ensuring sustainable business operaions in tourism and the hospitaliy indusry. heir implementaion will ensure signiicant improve-ment of business operaions in comparison with the compeiion on the market, and enable a tourist ofer of beter qualiy with minimum costs. SWOT analysis presented below (cf. table 1) shows srengths and opportuniies, i.e. weaknesses and potenial threats of the use of renewa-ble energy sources in business processes in the hospitaliy indusry and tourism.
It is evident rom the SWOT analysis (Table 1) that using renewable energy sources in ensur-ance of sustainable business aciviies has, among other things, the following posiive features:
• It ensures long-term stabiliy of energy supply of hotels and other tourist faciliies, • It ensures long-term reducion of costs in the segment of energy consumpion (water
heaing, saving of energy in rooms, reduced heaing and cooling costs, etc.),
• It creates a posiive opinion of users on values of sustainable business aciviies, which promotes the hotel,
• It creates posiive goodwill for a hotel company,
• It srengthens ecological awareness of all paricipants in a hotel company’s business process (enrepreneurs, employees, service users, local communiy),
• It ensures coninuous investments in new, innovaive and environmentally riend-ly technologies,
• It ensures permanent and sustainable development of a hotel company, but also local communiy,
Possible benefits of implementation of Sustainable Development, Renewable Energy
Sources and Green Technologies in Tourism and Hospitality Industry
Except for its ecological and inancial advantages, use of renewable energy sources in the hospitaliy indusry and tourism directly conributes to increasing compeiive advantages of tourist suppliers in the hospitaliy indusry and tourism. Possible compeiive advantages of using renewable energy sources for the hotel is presented in the Porter’s diamond of com-peiive advantages below.
Table 1. SWOT Analysis of the Use of Renewable Energy Sources and Sustainable Business in the Hospitality Industry and Tourism
STRENGTHS WEAKNESSES
• Preservation of landscapes, plants and animals, water, sea and air-the basic resource base for tourism development; • Reduction of energy costs, waste disposal, reduction of waste
waters, increase in revenues, etc.;
• Strengthening of ecological awareness of employees and hotel visitors, users and suppliers of a tourist service and destination;
• Creation of a common brand of all tourist offer suppliers in a speciic destination, as a socially and environmentally friendly destination;
• Strengthening of competitive advantages of a tourist destina-tion which uses renewable energy sources ;
• Improvement of quality of life –standard of the local popu-lation;
• Securing preconditions for a better business environment; • Strengthening of economic and social-demographic
poten-tials of a destination.
• Lack of understanding and insuficient co-operation between suppliers in a destination;
• Non-educated hotel and destination management in the segment of introducing renewable energy sources in business operations of a hotel;
• Insuficient funding for education of employees and hotel management in the segment of use and signiicance of re-newable energy sources and sustainable development; • Non-existence of sustainable development strategy and
energy eficiency in a tourist destination;
• Lack of co-ordination of development and marketing plans of development of a hotel and a destination;
• Non-existence of awareness of the necessity to use renewa-ble energy sources and apply sustainarenewa-ble business principles in economic development (tourism and hospitality industry); • Lack of professional and motivated experts and employees in
a hotel and a destination.
OPPORTUNITIES THREATS
• Funding of projects which enable development and imple-mentation of renewable energy sources in business processes of the hospitality industry and tourism through cohesion funds of European Union, commercial banks and private entrepreneurs;
• Designing of a marketing and development strategy for a hotel which will include promotion of sustainability, use of renewable energy sources, and innovations;
• Stimulation of investments in development and use of renew-able energy sources in the hospitality industry and tourism through formation of a working group and a cluster for pro-motion of a sustainable development and use of renewable energy sources;
• Increasing awareness of citizens and business entities on the necessity to strengthen mutual co-operation, trust, preserva-tion of landscape particularities, tradipreserva-tional architecture, the entire resource base;
• Branding of a hotel offer by renewable energy sources users and sustainable development principles in business processes; • Creation of competitive and and innovative tourist products
and services which promote the use of renewable energy sources and sustainable business activities, which carries a signiicant social responsibility for the whole community.
• Pollution and permanent disruption of balance in the environ-ment caused by industry;
• Light pollution, pollution by waste waters, pollution of rivers by chemicals and waste materials (oils, detergents, etc.); • Lack of understanding by local and business community of
the necessity to implement renewable energy sources ; • Expensive initial investments, signiicant time span before the
investments is returned through proit of a hotel company; • Lack of interest by tourist suppliers for implementation and
upholding international ecological standards;
• Insuficient level of environmental awareness of users of hotel services;
• Non-existence of co-ordination of between project leaders in a tourist destination, region, country, on the European Union level;
• Desire for fast proit “at any cost”
• Insuficient education of hotel employees on the importance of using renewable energy sources, sustainable business operations, and sustainable development;
• Low inancial support;
• Non-use of inancial funds (EU funds, national and global programs).
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Designing the compeiiveness diamond of hotel as a user of renewable energy sources and applier of sustainable development postulates in business operaions, all relevant factors for achieving compeiive advantages of the hotel come into the foreground. he same applies for the desinaion in which it runs its business, and it is perceived as one of the potenially leading “green”desinaions in the world. It is visible rom the Porter’s diamond of compeiive advan-tagrs that use of renewable energy sources in the hospitaliy indusry and tourism has posiive efects on business results of a hotel company, maximising usefulness for all the paricipants in the business process. Use of renewable energy sources has a posiive efect on protecion of landscape (see more in htp://web.efzg.hr/dok/TUR/Web_Ekoturizam.pdf) pariculariies, lora and fauna, protecion of waters, the coastline, and the sea. Also, a hotel company which
BUSINESS STRATEGY STRUCTURE AND RIVALERY
• Development strategy of hotels and competitiveness • Mutual cooperation of all tourist offer suppliers using
renew-able energy sources and promotion of sustainrenew-able business activities in a destination using the best links and coordinations • Barriers for presentation on the world tourist market
• Local conditions constituted in a way to stimulate sustainable development and use of renewable energy sources
• Competition on the domestic and foreign tourist market • Differentiation and motivation
DEMAND CONDITIONS
• Tourist demand structure
• Demand based on special interests (envi-ronmentally aware tourists on national and global level)
• Awareness of a destination brand and a hotel which uses renewable energy sources and promotes sustainable business operations
• Offer quality control
• Interests and motivations of tourists • More free time
FACTORS
• Natural resources (clean air, water, sea, forests)
• Attractions (cultural-historical heritage, etc)
• Human, technological and inancial re-sources, legislation
• Infrastructure in a hotel company • Equippment of accomodation facilities • Ecological standards in business activities
of a hotel
• Safety, vicinity, and practicallity of a hotel
EXSISTENCE OF RELATED AND SUPPORTING INDUSTRIES
• Tourist suppliers in a destination using renewable energy sources and sustainable business operations (restaurants, travel agencies, family farms, green hotels, sports and cultural activi-ties, offer related to free time, workshops)
• Tourists and visitors of a hotel and destination promoting sustainable business and tourist offer
• Promotion of tourist offer suppliers who use renewable energy sources in their business activities and promote sustainable business activities as a separate segment in the framework of a collective tourist product of a region/country
RENEWABLE ENERGY SOURCES
IN A HOTEL POSSIBLE
OUTPUTS • Increasing competitive
advantages of a hotel in relation to the
compe-tition
Government, Local administration, Management of a hotel and tourist destination
Figure 1. Porter’s Diamond of Competitive Advantages of the Hotel which uses Renewable Energy Sources in Ensuring Sustainable Business Operations of the Hotel
uses renewable energy sources in its business processeds becomes recognisable to tourists who want to spend their vacaion in harmony with nature. hey want to conribute daily to envi-ronmental protecion during their stay in the hotel, and such hotel faciliy provides just that possibiliy. For example, energy saving bulbs are installed in the rooms, bikes in the hotel gym serve to ill bateries and save energy, there are solar panels on the roof of the hotel which sup-ply hot water for the enire hotel, etc. On the other hand, government and government insi-tuions can signiicantly conribute to business results of such hotel faciliies as well as promo-ion of sustainable development and the necessiy to use renewable energy sources in business operaions through legislaion and regulaions, and through a number of inancial incenives (Croaian Bank for Reconsrucion and Development, European Bank for Reconsrucion and Development, EU cohesion funds). he objecives of inroducing renewable energy sources presented in the compeiiveness diamond also include srengthening of mutual co-operaion of all tourist suppliers in a tourist desinaion who implement renewable energy sources in their business operaions, and promote sustainable development and sustainable business aciviies.
Basic implementaion and socially responsible aciviies of the hotel (in table 2) as a user of renewable energy sources and promotor of sustainable business may be derived rom the
Table 2. Socially Responsible Activities of Hotel with the objective to improve general level of Knowledge of Destination Stakeholders on basic values of using Renewable Energy Sources and Promotion of Sustainable Development
Implementation
activities Implementation methods Target group Duration Priority
Promotion and green marketing
Design of promotional materials (brochures, lealets, posters, websites) of the hotel in which promotion of using renewable energy sources and sustainable devel-opment will be conducted as a competitive advantage of a hotel.
Visitors, social com-munity
Continuously High
Workshops Workshops organized for visitors of the hotel on ad-vantages of using renewable energy sources in business activities
Visitors Continuously High
Programs of incen-tives and awards
Designing a program of “Incentives” and awards for hotel guests who will actively implement the basic postulates of sustainable development during their stay
Visitors Continuously High
Playrooms Playroom for the children in the “green room” of the hotel, where they learn while playing about basic values of sustainable development and use of renewable energy sources
Visitors Continuously High
Symposiums, lec-tures, round tables
Organization of symposiums, lectures, round tables on the topic of renewable energy sources
Visitors, ex-perts in prac-tice, social community
Continuously High
Excursions Organization of excursions for the hotel guests and the interested public to facilities and destinations which may serve as examples for using renewable energy sources and implementation of sustainable development
Visitors, social com-munity
Continuously High
Social responsibility Workshops and playrooms for all-through organization of workshops and playrooms on sustainable development and use of renewable energy sources for the general public, the hotel achieves an increase in non-room and non-board consumption, creates the foundation of prolongation of its activities (seasonality) and increasing eficiency of business
Social com-munity
Continuously High
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above, with the goal to promote their use to all the employees, visitors, but also the gener-al public.
he above table shows that the basic precondiion for successful implementaion of sus-tainable business aciviies and using renewable energy sources is a higher level of knowledge of all the stakeholders in business processes of a hotel/tourist company, but also communi-y as a whole. Posiive beneits are muliplied through the menioned aciviies, providing new development guidelines for the company, the enire communiy, but also an individual who will, through implementaion of renewable energy sources and sustainable development principles in his daily aciviies recognise the potenial which will conribute to improve-ment of the general level of qualiy of life of the enire social communiy. By impleimprove-mentaion of this programme, a hotel/tourist company will achieve signiicant beneits in the segment of increasing uilisaion of capaciies, prolongaion of the tourist season (in companies which operate during a certain season), and increase in recognisabiliy of the company as ecologi-cally aware, and a company of high social responsibiliy.
Conclusion
Sustainable business aciviies and implementaion of renewable energy sources in business operaions of a hotel and a tourist company represent a necessary factor of success, especial-ly taking into account fast growing world compeiion on the sensiive and always turbulent tourist market. In imes of crisis and general economic insecuriy, sustainable business oper-aions and renewable energy sources represent a reasonable factor for ensuring long-term successful business results and creaing compeiive advantages of a hotel/tourist compa-ny. It is important to point out that it is necessary to develop conrol mechanisms of business and markeing plans of all tourist suppliers, so that they would contain basic sustainabiliy postulates and ensure future couse of tourism development. Also, it is necessary to allocate signiicant funds which will help during implementaion of projects related to sustainable development, renewable energy sources and green technologies, so that enrepreneurs would be encouraged to base their development on term business success, and not on long-term proit. Governments, minisries, banks for reconsrucion and development, com-mercial banks, and civil associaions should help achieve this objecive, and general public should be included in the whole process of creaing a so-called “green tourist desinaion”.
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