Executive Summary Project Overview Greening Sri Lanka Hotels (GSLH) is a project funded by the European Union under the EUSwitch Asia programme, which is aimed at promoting sustainable consumption and production in small and medium scale industries in the Asian region. The main target group of the project is 350 tourist hotels throughout the country, which are expected to reduce their water and energy consumption and waste generation by 20% from the baseline year which is 2008. The project is in its 4th and final year, and the exercise of registering 350 hotels from all touristic regions of the country is now completed. A total of 351 hotels are now registered with the Project. Out of these, 73 hotels are considered to be large hotels (number of rooms > 50), while the other 278 are considered to be small and medium enterprises (SME’s - number of rooms < 50). The project technical team trains the hotel staff on sustainable consumption practices and the importance of record keeping, and assists them to implement green interventions through free audits and consultancy. Data is collected from the hotels through 3 questionnaires: establishment details to obtain data on the size of the hotel, energy and water consuming equipment and how the hotel consumes energy and water and manages its waste; baseline data, on occupancy, energy & water consumption and waste generation for the year 2008 on a monthly basis, which forms the baseline year; and the monthly data on occupancy, usage of energy and water and waste generation collected monthly on an ongoing basis over the entire period of the project. Basis of Research Study This research study was carried out to study the implementation of green practices among the tourist hotels in Sri Lanka by analysis of the establishment data collected from 276 hotels (a sample of 78% of the total registered hotels), from all touristic regions and a cross section of sizes. The green practices of hotels identified covered energy usage, water usage and waste management practices. Aspects of green energy usage covered were efficient lighting, efficient air conditioning, solar water heaters, biomass boilers, key switches, power factor correction and alternate power. Installation of dual flush toilets, low flow showers and taps, linen and towel reuse, availability of sewage treatment plants, solid waste segregation and biogas plants were the aspects of green practices in water use and waste management covered.

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Findings of Studies Energy The study revealed that the most commonly adopted green intervention is energy efficient lighting. More than 80% of the hotels have partially or completely switched to CFL and LED lighting from incandescent lighting, the smaller hotels having nearly completely switched, while most of the larger hotels are in the process of gradual switching, due to the larger numbers to be replaced. In contrast, only 10% of all hotels use energy efficient air conditioning. Most hotels have very old inefficient air conditioning plants. However, air conditioning is relevant to only about 40% out of the total number of hotels in the sample studied, as those in the colder climates do not require air conditioning and the smaller hotels in the East coast do not offer air conditioning due to the level of operation. Solar water heaters are quite common (nearly 50%) in the larger hotels, whereas it is not considered affordable by the smaller establishments, where less than 20% have installed them. Key switches are also quite common in the larger hotels (64%) while only a few (12%) of the small and medium scale establishments have invested in them. As for the installation of capacitor banks for power factor correction, it is relevant to only the larger establishments that use 3 phase power, and nearly 50% of the hotels in that category have invested in them, in order to reduce the KVA loading and hence the electricity bills. Some of the medium scale hotels also have resorted to this intervention. Use of alternative green energy sources such as Biomass boilers using cultivated wood, mini-, micro and picohydro power, solar PV and wind energy is not very well established in the hotels yet, perhaps due to the uncertainly of sourcing of raw materials, high investment and long payback periods and unreliable technical support. Water and Waste Management As for the green interventions related to water and waste management, small capacity dual flush toilets are gaining popularity in both large (54%) and SME (59%) sector hotels, although the replacement of existing high capacity fixtures is not warranted due to long payback periods. 43% of the large hotels were found to have installed low flow taps and showers, while only 13% of the SME hotels have done so. Towel and linen reuse programs are in operation in 23% of the larger hotels and only 2% of the SME hotels.

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Overall, the adoption of green interventions for water conservation is not very high, the main reason being the availability of water at relatively low cost in most areas of the country, resulting in less attention being paid to water conservation and lower priority for investment on water saving devices. The scenario is somewhat better in the case of waste management, particularly in the large hotel sector, perhaps due to the regulatory requirement and enforcement by the environmental authorities, and grant and subsidy schemes that were available for installation of sewage treatment plants in the recent past. 92% of the large hotels have their own sewage treatment plants, and the balance is connected to the city sewers or common treatment plants. Solid waste management is also happening to some satisfactory degree in 77% of the larger hotels. However, the situation is not satisfactory in the SME sector, with only 17% of the hotels having sewage treatment plants and only 27% having systems for solid waste segregation with some recycling and reuse of components. Biogas systems are available in a few large and SME sector hotels and the popularity of these appear to be increasing, due to the availability of better operating systems and technical support, made available through the GSLH Project. Conclusion On an overall basis it appears that Sri Lankan hotels are carrying out greening practices, although the situation could improve by more hotels adopting these interventions. A reasonably good proportion of the hotels surveyed are practicing good energy management initiatives, particularly in the areas of lighting and solar water heating. However, water management is somewhat lagging, and waste management also needs to be improved. Most Sri Lankan Hotels are thus now becoming aware, that adopting good ‘green practices’ is not only vital for operational cost management and profitability enhancement, but also as a good marketing tool.

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© 2013 Switch Asia, Greening Sri Lanka Hotels Project. All rights reserved.



No part of this document may be reproduced in any form or any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the Switch Asia, Greening Sri Lanka Hotels Project.

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The basis of analysis of data is a sample set of 276 hotels registered with the EU SWITCH ASIA PROGRAM – Greening Sri Lanka Hotels Project, of which 61 are considered large hotels ( >50 rooms) and 215 SME hotels.



Main research analysis was carried out by Mr. SurangaKarawita and Mr. Kelum Withanage of the SWITCH ASIA PROGRAM Greening Sri Lanka Hotels Project team.

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1.0.

Overview - EU-Switch Asia-Greening Sri Lanka Hotels

With increasing awareness about the global energy crisis and growing concerns amongst consumers on climate change and global warming, it has become a necessary focus for all businesses to incorporate the concept of sustainability into their operations. This is of particular concern to the hotel sector, as the industry is perceived to be one of the largest consumers of natural resources, making it an urgent requirement for hotels to adopt better environmental practices. In the context of energy, the hotel sector in Sri Lanka accounts for 4-5% of the national electricity demand, whilethe energy cost stands around 18% of the total cost of operations in the hospitality industry. Major energy consuming areas of hotels include lighting, air conditioning andcooking, with air-conditioning alone estimated to account for around 50% of a large hotel’s energy consumption. However, it has also been identified that hotel sector has a saving potential of 20% in energy and water consumption, and there exists a possibility of reduction of waste generation by 20%. The Greening Sri Lanka hotels project(GSLH)under the EU-Switch Asia programmeand administered by The Ceylon Chamber of Commerce has been conceptualized and implemented in response to this.The projectfocuses more on small and medium scale (SME) hospitality enterprises in particular and the hospitality industrialists in general, providing a supporting role of enhancing knowhow on improving energy and water utilization efficiencies. The main objective of the proposed action is to enhance the environmental performance of Sri Lankan Hotels through improvement of energy, water and waste management systems,thereby reducing cost of operations, whilealso increasing the market acceptance of Sri Lankan hotels with a low carbon foot print.

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Specific Objectives: 

To assist three hundred and fifty (350) Sri Lankan hotels enhance their environmental performance through; o Reduction in energy consumption o Reduction in water consumption o Reduction in waste generation



Increase awareness of the main suppliers to the hotel industry on Sustainable Consumption Practices (SCP) and on reducing adverse impacts on the environment due to their operations through adoption of SCP practices.



Assist Sri Lankan hotels improve their consumer acceptance through boosting their image as ‘green hotels’.

2.0TheCurrent Status of the Project The Island has been divided into 7 segments geographically,from which351 hotels have already registered with the project. Of these, 73 hotels are considered to be large hotels (number of rooms >50), while the other 278are considered to be small and medium enterprises (SME’S) (number of rooms< 50). The breakdown, (region-wise) is given in Table 1. Table 1: Region-wise breakdown of registered hotels Region West Coast (Negombo) South Coast Cultural Triangle Hill County Greater Colombo East Coast (Arugam Bay) North Total

South Deep South Central NuwaraEliya

Number of Hotels Registered 21 32 74 61 34 60 22 42 5 351

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A total of 254 hotels had attended Awareness Seminarsheld throughout the country, and 225 ‘Door-to-Door’ Promotions and interactionsin selected regions have been completed.

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A total of 84hotels(107 participants)have participated in Data Collection Workshops and 86 hotels (127 participants)have participated in Resource Management Workshops.



A total of 142 walkthrough audits have been completed.

The project is currently in the final year and the focus will now be on data analysis and research.

3.0Collection of Data The data that is collected from these regional hotels falls under three categories: Establishment data, Monthly Consumption data and Baseline data. 

Establishment data-This is collected once and for all, to obtain details of the size of the hotel and about how the hotel consumes energy and water and manages its waste. This would include o Details of energy using equipment o Details of water using equipment o Usage patterns of equipment o Waste management systems o Size of hotel (Area and number of rooms)

The data was collected using a questionnaire, a copy of which has been enclosed (Pl. see Appendix 1

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Baseline data-Environmental performance of the hotel’s operations is compared to the baseline year, which is 2008. Data on its occupancy, energy, water consumption and waste generation are collected for the year 2008 on a monthly basis, which will then form the baseline year. In the case of hotels that do not have 7

data for the year 2008, data for the year 2009 was taken as the baseline data. This is also a once and for all data collection.

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Monthly consumption data-Occupancy, usage of energy and water and waste generation data is collected on a monthly basis to compare with the baseline year, on an ongoing basis over the entire period of the project. Hence this data is collected on a regular basis each month.

4.0 Basis of Analysis of Data The collection of the baseline and monthly consumption data is still ongoing, while the collection of establishment data is reasonably completefor 78% of the registered hotels (276 hotels). The study was based on this data that is currently available. The green practices of hotels identified covered energy usage, water usage and waste management practices. These were analyzed from 276 hotels using the establishment data collected from hotels. 4.1

Energy Usage

The followingaspects of energy usage were considered in the data analysis. 

Efficient Lighting- Incandescent bulbs which have been used in the past are considered to be less energy efficient, where only 1/10th of the energy consumed is turned into light, while the rest is turned into heat. In contrast, CFLs (compact fluorescent lamps) and LED (light emitting diode) lamps are more energy efficient, and are therefore fast gaining popularity.

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Efficient air conditioning–Out of the energy expenditure of a hotel, up to 50% can be attributed to air-conditioning. Screw and centrifugal type compressors

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for central plants and modulated unitary air conditioners are considered to be energy-efficient varieties of air-conditioners. 

Solar water heaters-Solar hot water systems use sunlight to heat water. It is estimated that a solar water heater can result in a 15-30% savings in electricity costs.

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Biomass boilers- Biomass boilers use a biological material such as wood or waste, to produce energy. The type of biomass boilers used in most hotels in Sri Lanka produce energy through a process known as gasification, where the wood or waste is ignited at high temperatures to produce gas, which is used as the fuel.

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Key switches-A key switch is a switch that can be activated only by a room key. This is used to ensure that the lights are switched off and the air conditioner switches to an energy saving mode when the guest leaves the room taking the key with him, only to be switched back on when the guest re-enters and inserts the key back into the switch.

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Power Factor Correction-Thepower factor is a measure of how efficiently electrical power is consumed. The ideal Power Factor is 1.Power Factor Correction is the term given to a technology that is used to restore the power factor to as close to 1 as is economically possible. This is normally achieved by the addition of a capacitor bankto the electrical network.

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Alternate power-Other sources of energy (that can be used as an alternative to fossil fuel and large hydropower) that do not use up natural resources or harm the environment. Examples other than those mentioned above would include solar photovoltaic cells (Solar PV), mini-, micro- and pico- hydropower, wind power and geothermal energy.

The number of hotels that have implemented these aspects of energy management are given in Table 2.

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4.2

Water and Waste

The following aspects of water usage and waste management were analyzed. 

Dual Flush Toilets-A dual flush toilet uses two buttons or handles to flush different levels of water, and can reduce water usage by up to 67%, when compared to a normal system. Their efficient usage of water has meant that they are now becoming a standard product in the market.

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Low Flow Showers andTaps-These are a replacement fixture for showers and taps, and are used to reduce the amount of water flowing through the shower or tap. This is usually done by inserting a flow restrictor and aerating the water stream.

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Linen and Towel Reuse - Linen and towel reuse programs give guests the option of using their bed linens and towels more than once,allowing guests to choose whether or not to have these laundered every day.

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Sewage Treatment Plants (STPs) - Waste water is treated in STPs, which is then used for irrigation, flushing of toilets or other purposes such as vehicle washing. The treatment of wastewater before release into the system is also a legal requirement for hotels which have over 20 rooms.

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Solid waste segregation- Solid waste is separated into an organic component that can be turned into fertilizer, recyclables such as plastic, glass, metal and paper with the remaining being disposed into landfills.

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Biogas-Biogas is produced by the fermentation of biodegradable materials such as manure, sewage, municipal waste, green waste, plant material, and crops,

comprising primarily methane and carbon dioxide. These gases are

combustible with oxygen, producing a fuel that can be used for heating purposes such as cooking. The number of hotels that have implemented these aspects of water and waste management are given in Table 3. 10

5.0 Analysis and Findings The establishment data from the sample of 276 hotels was analyzed in order to assess the adoption of green interventions as described in sections 4.1 and 4.2 above, in the two sectors of hotels defined as large and SME’s. 5.1 Analysis of data relating to green interventions for energy consumption Table 2 below shows the situation with regard to adoption of green interventions for energy consumption in the large and SME categories of hotels and form the sample of 276 hotels from which the data is available. Table 2: Breakdown of different aspects of energy usage in registered hotels LARGE (>=50 rooms)

MEDIUM &SMALL (< 50 rooms)

TOTAL

61

215

276

NUMBER OF HOTELS ENERGY EFFICIENCY LIGHTING ( CFL AND LED)

52

(85 %)

178

(83%)

230

(83%)

EFFICIENTAIRCONDITIONING

24

(39 %)

4

(2%)

28

(10%)

SOLAR WATER HEATERS

29

(48%)

40

(19%)

69

(25%)

BIOMASS BOILERS

6

(10%)

2

(1%)

8

(3%)

KEY SWITCHES

39

(64%)

26

(12%)

65

(24%)

POWER FACTOR CORRECTION

30

(49%)

11

(5%)

41

(15%)

ALTERNATE POWER

2

(3%)

6

(3%)

8

(3%)

ENERGY MANAGEMENT

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5.2 Analysis of data relating to green interventions for water and waste management Table 3 below shows the situation with regard to adoption of green interventions for water consumption in the large and SME categories of hotels from the total sample of 276 hotels from which the data is available. Table 3: Breakdown of different aspects of water and waste management in registered hotels

LARGE (>=50 rooms) NUMBER OF HOTELS

61

MEDIUM &SMALL (< 50 rooms) 215

TOTAL 276

WATER DUAL FLUSH TOILETS

33

(54 %)

127

(59%)

160

(58%)

LOW FLOW SHOWERS AND TAPS

26

(43 %)

28

(13%)

54

(20%)

LINEN AND TOWEL REUSE

14

(23 %)

5

(2%)

19

(7%)

SEWAGE TREATMENT PLANTS

56

(92 %)

36

(17%)

92

(33%)

SOLID WASTE SEGREGATION

47

(77 %)

58

(27%)

105

(38%)

BIOGAS

8

(13 %)

5

(2%)

13

(5%)

WASTE

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6.0 Summary/Observations 6.1 Energy 6.1.1 Lighting o

From Table 2 it can be seen that 85% of the medium and large hotels use energy efficient lighting and 83% of the small hotels also use energy efficient lighting.

o

CFLs are popular because these lamps are affordable and the savings they bring in are widely accepted. There is also a national green labeling scheme for CFLs.

o

LEDs are less wide spread due their initial cost and lack of a supporting green labeling scheme.

o

In the small hotel category the majority of hotels have fully switched to CFLs, due to the manageable numbers involved.

o

In the large and medium hotel category, most of the hotels are in the process of fully switching to CFLs. In this category the hotels are in transition to fully switching due to the numbers involved

6.1.2 Air Conditioning o

It is evident that 50% of the large hotels have energy efficient air conditioners to control overhead costs. Air conditioning can account for 60% of the electricity costs in these hotels where almost all the floor area is air conditioned.

o It can be seen that only 10% of all the hotels use energy efficient air conditioning. It is worth noting that in this total there are 100 hotels in NuwaraEliya that do not require air conditioning and around 60 hotels in the East Coast and Bandarawela that do not offer air conditioning. o

Most hotels have very old inefficient air condition plants.

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6.1.3 Solar Water Heaters o

The cost of solar water heaters prohibits adoption in the small scale category. Many small scale hoteliers find it difficult to invest in solar water heaters.

o

In areas like NuwaraEliya, due to climatic conditions, the use of solar panels is not suitable.

o

In large hotels there is a greaterhot water demand, which requires a large area of solar panels which is sometimes a limiting factor.

o

In large hotels, due to the high hot water demands involved, use of solar water heaters may not be feasible due to the fact that technology at present in the market requires large numbers of individual units, which presents high initial investment, maintenance issuesetc.

o

This technology at present mostly matches the medium sized hotels as it is affordable and suitable for this scale size.

o

Almost 48% of large hotels surveyed and 19% of SME hotels have solar water heaters.

6.1.4 Biomass Boilers o

For small scale hotels the initial investment and available capacities of the boilers hinders the penetration into this segment of the hotels.

o

For the larger hotels the problem of securing a reliable supply of biomass is a hurdle to the adoption of the technology.

o This technology is ideal for the medium scale and slightly larger hotels as it is affordable and also because a reliable supply of biomass at this scale of consumption can be secured. o

Since this is an emerging source of energy only a small percentage of hotels have this type of installation at present.

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6.1.5 Key Switches o

Key Switches are less common in the small scale hotels due to the lack of knowledge of the product and the benefits associated with it. Retro-fitting is also complicated due to the need for re-wiring.

o

64% of large hotels have such key switches installed.

6.1.6 Power Factor Correction o

Use of three phase electricity in small scale hotels is very rare and so power factor correction mainly applies to medium and large scale hotels.

o

Close to 50% of the large hotels have implemented this.

6.1.7 Alternate Power o

It can be seen that adoption of alternate power at all scales of hotel sizes is low. This is mainly because of the high initial investment required and the unattractive payback periods.

o

Application is limited across all categories.

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6.2 Water and Waste 6.2.1 Dual Flush Toilets o

The small capacity toilet cistern with dual flush system (approximately 6 litres for full flush and 3 litres for half flush) is becoming a standard product in the market.

o

From Table 3 it can be seen that 58% of the total hotels have adopted dual flush toilets.

o

Its adoption is not as high as CFLs for energy conservation, due to several reasons: much higher investment for replacement due tomuch higher price and longer lifetime of the product; the lack of a supporting local green labeling scheme; lack of awareness; lower priority given to water saving due to relatively low price of water; longer payback periods for replacement of existing systems.

6.2.2 Low Flow Showers and Taps o

Level of adoption of low flow showers and taps is higher in the large and medium category than in the small category, because of the higher savings on costs, both raw water cost and that associated with waste water treatment. However, the level of awareness and interest even among these categories is not satisfactory.

o

The level of adoption is lower in the small hotel category because these units are relatively expensive, and lack of awareness of the benefits of products. Also the tariff is such that water is not a considerable portion of the cost of operations.

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6.2.3 Linen and Towel Reuse o

Linen and towel reuse is a relatively new concept in all hotels and is slowly being adopted.

o

The large and medium scale hotels are adopting this practice at a faster rate, because it helps reduce overheads. However, this can be practiced only with longer staying clients, and therefore in hotels which cater to single night clients such as tourists on package tours or airport transit passengers, this is not a feasible option.

o

Only an overall 7% of hotels in Sri Lanka appear to be practicing this well.

6.2.4 Sewage Treatment Plants o

Sewage treatment plants are widely used by the large and medium hotels as it is a legal requirement for hotels over 20 rooms, which are not connected to common sewers.

o

For hotels with less than 20 rooms a soakage pit or a septic tank is an acceptable way of handling waste water.

o

This area which was very badly neglected about a decade ago has improved considerably with almost all the hotels having good sewage treatment systems (92 hotels) in the large category and overall 33% of all hotels surveyed, having sewage treatment systems.

6.2.5 Solid Waste Segregation o

Larger hotels practice segregation mainly due to the following reasons -

Secondary market for dry garbage

-

Due to the quantities involved, good potential for selling dry solid waste

-

Simplifiedhandling of wet garbage, which is generally collected by piggery owners for swill.

o

Smaller hotels prefer to dispose the mixed garbage through the local authorities, for the convenience, and the relatively low cost. 17

6.2.6 Biogas o

Adoption of biogas generation is low in all scales of hotels at present, mainly due to the lack of confidence in the technology. Other factors are: requirement for space;relatively high payback periods;and operational problems.

o

Only about 5% of hotels use some form of bio gas for cooking.

7.0 Conclusion From the foregoing, on an overall basis it appears that Sri Lankan hotels are certainly on the way in carrying out good sustainability consumption practices. Although all hotels are now being aware that adopting ‘greening’ practices are not only vital for operational management and profitability enhancement but also a good marketing tool. A reasonably good proportion of the hotels surveyed are practicing good energy management initiatives, particularly in the areas of lighting and solar water heating. Water management is somewhat lagging, with some hotels only employing dual flushing cisterns to conserve water. This could be due to the fact that ‘water costs’ do not have as high an impact on operational cost , unlike electricity. Waste management also needs to improve, with only about 1/3 of the hotels surveyed initiating good sewage and waste management activities currently.

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