Leading by example: How SMEs can champion energy efficiency

The Travel & Tourism sector is a significant consumer of energy. Understanding its energy consumption patterns to implement effective sustainability measures is crucial for minimising the sector’s environmental impact. In 2019, the sector consumed over 25.2 million terajoules (TJ) of energy. However, the COVID-19 pandemic significantly impacted energy usage, resulting in a 52% (12.1 million TJ) drop in 2020. As travel activities resumed in 2021, energy requirements increased by 27% (15.3 million TJ), which was still 39% below 2019 levels. To provide context, energy use for the global economy as a whole fell by 4% in 2020 and then rebounded by the same percentage in 2021.

The mix of energy consumption in the sector also changed due to the pandemic. By 2021, the energy consumed by the sector and within its supply chains reached approximately 60% of its 2019 level. However, the energy demand for international flights and cruises only recovered to about 40% of pre-pandemic levels. This discrepancy was primarily due to travel restrictions and a shift towards more domestic tourism.

Regional variations

Energy consumption patterns vary significantly across regions. Europe, for example, saw the highest contribution of low-carbon energy sources to its Travel & Tourism sector, with the share increasing from 2010 to 2019. In contrast, the Middle East has the highest share (98%) of fossil fuel use compared to 85% in Europe.

The regional distribution of tourism activity heavily influences total energy use. For instance, regions with high tourism activities like Europe and the Americas have different energy consumption patterns compared to regions like Africa and the Middle East. These differences are shaped by the industrial structure in each region, the energy mix, and the relative purchasing power of a dollar.

Various countries have made significant strides in increasing the low-carbon share. From 2010 to 2019, 115 out of 185 countries studied saw an increase in the low-carbon energy share, with 87 of these countries also witnessing a decline in the emissions intensity of Travel & Tourism​​.

Kenya is a notable example, experiencing the largest increase in the low-carbon share of its Travel & Tourism energy use. This was primarily due to substantial investments in renewable electricity capacity, including geothermal, wind, and solar power, which significantly reduced its reliance on fossil fuels​​.

The sector's energy consumption patterns and sustainability efforts highlight the ongoing challenges and progress in reducing environmental impact. While the pandemic temporarily reduced energy usage, it also underscored the need for a more sustainable approach to tourism. Continued investments in low-carbon energy sources and efficiency improvements are essential for the sector to achieve long-term sustainability and minimise its carbon footprint.

SMEs can lead the way

Small and medium-sized enterprises (SMEs) play a pivotal role in driving energy conservation and sustainability efforts. By adopting a range of practical strategies, these businesses can significantly reduce their environmental footprint while also enhancing their operational efficiency and appeal to eco-conscious travellers. Here’s 5 strategies every SME should adopt:

1. Invest in energy-efficient technologies and renewable energy sources. Installing solar panels, using energy-efficient lighting and appliances, and adopting smart energy management systems can greatly reduce energy consumption. These investments not only lower operational costs but also demonstrate a commitment to sustainability, which can attract environmentally aware customers.

2.  Implement sustainable practices in their daily operations. This includes simple measures like optimising heating and cooling systems, ensuring proper insulation, and promoting the use of public transport or bicycles among guests and staff. Reducing waste and promoting recycling programmes can further complement energy conservation efforts, creating a comprehensive approach to sustainability.

3. Engage with local communities and stakeholders. They can collaborate with local suppliers to source eco-friendly products, thereby supporting the local economy and reducing the carbon footprint associated with transportation. Partnering with conservation organisations can also amplify their impact, as joint initiatives can lead to more substantial environmental benefits.

4. Leverage their unique position to educate and inspire both staff and guests about the importance of energy conservation. Providing information on sustainable practices, offering eco-friendly options, and encouraging responsible behavior can foster a culture of sustainability. For example, hotels can encourage guests to reuse towels and linens, reducing laundry-related energy use.

5. Participate in certification programmes and adhere to sustainability standards, such as those provided by the Global Sustainable Tourism Council (GSTC). Additionally, adopting the Hotel Sustainability Basics framework developed by the World Travel & Tourism Council (WTTC) can guide SMEs towards responsible operations. This initiative provides a clear roadmap for hotels to meet essential sustainability criteria, focusing on practical steps such as reducing energy use, managing water efficiently, and minimising waste. These certifications and frameworks offer a structure for continuous improvement in sustainability practices. By embracing these strategies, SMEs in the tourism sector can make a significant contribution to energy conservation and sustainability, ultimately benefiting both the environment and their business while aligning with global sustainability goals.

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