Sustainable Energy Solutions for Minnesota Resorts

Sustainable Energy Solutions for Minnesota Resorts Andrea Schuweiler Graduate Research Assistant University of Minnesota October 15, 2008 Thanks to Carlson Chair of Travel, Tourism & Hospitality for project support

Overview

Introduction

Purpose & Objectives

Background Literature

Methods

Conclusion

Future Research

Introduction: Growth of Sustainable tourism

World:

growing 20-34% per year since the 1990s & sustainable tourism could grow to 25% of the world’s travel market by 2012 (TIES, 2006)

U.S.:

a $77 billion market in US (TIES, 2006) > 75% of US travelers believe it is important that their visit does not damage the environment > 33% would pay more to protect the environment (TIES, 2006)

Introduction: Sustainable Tourism in Minnesota

Tourism is a $10.5 billion industry in MN (Explore Minnesota, 2008) Opportunities to improve sustainable practices (UMN Tourism Center, Schneider, 2007 & 2008) In 2007, Legislation passed to explore a Travel Green Program in MN

Specifically access to sustainable tourism education was recommended

Purpose & Objectives The Sustainable Energy Solutions Guide for Minnesota Resorts was developed to: Educate resort owners about the connection „ between sustainable energy practices & profitability, & Increase awareness of & implementation of „ energy efficiency, conservation & renewable energy practices among resort owners

Background Literature „

Defining Sustainable Tourism

„

Motivations to implement environmentally sustainable practices

„

Constraints towards implementing sustainable practices

Background Literature: Defining Sustainable Tourism „

Tourism development that meets the needs of present tourists & host regions while protecting & enhancing opportunities for the future (World Tourism Organization, 1999)

„

Applicable to all forms of tourism in all types of destinations (World Tourism Organization, 2004)

Motivations to implementation

Economic Benefits

Consumer Demand

Environmental ethic Product preservation

Regulations and Incentives

Stated Willingness To Pay Greater in Domestic tourists

Natural Resource Preservation

Cost savings Competitive advantage

Prior to regulation Savings with incentives

Business Size Advantage

Bigger is easier

Constraints to implementation

Lack of Knowledge

Lack of Time

MN industry 77.1%

Initial Investment

MN industry 63.5%

MN industry 78.7%

Negative Impacts Towards Tourists’ Experience

MN industry 20.1%

Methods

Study Setting

Approach

Source Book Content

Distribution

Methods: Setting Minnesota

900 Resorts

Vary from luxury accommodations to simple cabins Often located on lake shore property Often family operated 1.3 million unit nights sold $872.6 million spent by tourists in 2005-2007 76% of guests from MN

Methods: Approach

Literature Review

Compilation of Book & Web Resources

Review Team

Methods: Content overview

Motivations Cost Savings Payback Periods

CFLs Saves $44.87 or 79% over its lifetime Payback period of about 4 months Disposal Uncertainties & Mercury

Methods: Content overview Constraints

Educational tool Decrease research time Low cost suggestions

Solar Electricity 2 kW

10 kW

Cost per Watt

$10

$9

Cost for Installation

$20,000

$90,000

Net Cost after MN rebate & federal tax credit

$10,760

$46,800

Average Annual Utility Savings

$279

$1584

Payback Period

23 years

18 years

Payback Period including property appreciation

17 years

12 years

Approximate Lifetime

20 years

20 years

Methods: Distribution Available online at: http://www.tourism.umn.edu/

MN Travel Green Website

Community Tourism Development Guide

Advertised at Conferences

Conclusion

The source book meets MN resorts’ need for increased sustainability Uses a literature review to find motivations & constraints.

Cost savings & payback periods Education, saves time, minimizes investment costs

Review team directs the source book to MN needs

Future opportunities

Motivations & constraints

Specifically MN Resort Owners

MN Resort tourist visitor profiles

Sourcebook effectiveness

Thank You!

Questions?

Andrea Schuweiler schu1211@umn.edu (612) 625-0298