Ensuring Sustainability In Sri Lanka's Growing Hotel Industry

Ensuring Sustainability in Sri Lanka’s Growing Hotel Industry

2013

IFC Disclaimer

“This publication may contain advice, opinions, and

statements of various information providers and

content providers. IFC does not represent or endorse

the accuracy or reliability of any advice, opinion,

statement or other information provided by any

information provider or content provider, or any

user of this publication or other person or entity.”

Prepared on behalf of

IFC - World Bank Group

by PricewaterhouseCoopers (Private) Limited, Sri Lanka and PricewaterhouseCoopers (Private) Limited, India

Table of Contents

The Sri Lankan Hotel Industry - An Overview1.1. Tourism in Sri Lanka’s Economy

1.2. Classification of Tourist Accommodation

1.3. Tourist Hotels

05

06

07

05

01

10

Sri Lanka’s Highly Diverse Hotel Industry2.1. Boutique Villas and Hotels

2.2. Guesthouses

2.3. Tourist Hotels

2.4. Home Stay Units / Bungalows /

Rented Homes and Apartments

12

12

13

14

02

Resource Utilization in Sri Lankan Hotels5.1. Energy and Water Consumption

5.2. Waste Generation and Management

5.3. Resource Efficiency Potential

5.4. Resource Efficiency Measures Taken by a

Few Sri Lankan Hotels

5.5. Energy Consumption Details of the Sri

Lanka National Energy Efficiency Award

(SLNEEA) Winning Hotels

28

30

31

32

35

27

05

37

Resource Utilization Benchmarking – World Over

06

38

How to Ensure Sustainability in Sri Lankan Hotels

07

15

Over 100 New Hotels Under Construction3.1. Boutique Villas and Hotels -

Under Construction

3.2. Guesthouses - Under Construction

3.3. Tourist Hotels - Under Construction

3.4. Resorts - Under-construction

16

17

17

18

03

19

Resource Utilization in Sri Lanka - An Overview4.1. Power and Energy Sector

4.2. Power Sector

4.3. Water Sector

4.4. Solid Waste Generation

19

21

24

25

04

Figure 1: Distribution of rooms according to star category

Figure 2: Monthly average occupancy rate of tourist hotels in 2011 and 2012

Figure 3: Monthly average occupancy rate of tourist hotels in 2011 (Three star to five star)

Figure 4: Monthly average occupancy rate of tourist hotels in 2012 (Three star to five star)

Figure 5: Location of Boutique Hotels and Villas by district

Figure 6: Location of Guesthouses in districts by grade

Figure 7: Location of Tourist Hotels (One star to five star) by district

Figure 8: Location of Tourist Hotels by district

Figure 9: Home Stay units/Bungalows/Rented Homes and Apartments by district

Figure 10: Boutique Hotels under construction by district

Figure 11: Guesthouses under construction by district

Figure 12: Under construction Tourist Hotels (One star to five star) by district

Figure 13: Different sources of energy supply in 2010 (Thousand tonne oil equivalent)

Figure 14: Energy consumption according to sector in 2010 (Thousand tonne oil equivalent)

Figure 15: Industry sector (Thousand tonne oil equivalent)

Figure 16: Household, commercial and other sector (Thousand tonne oil equivalent)

Figure 17: CEB’s electricity sales in 2011 according to type of consumer (Giga watt hour)

Figure 18: LECO’s electricity sales in 2011 according to type of consumer (Giga watt hour)

Figure 19: Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour)

Figure 20: Electricity sales to the hotel industry according to consumption in 2011 (in Giga watt hour)

Figure 21: Quantity of water sold by NWSDB in 2009 according to type of consumer

Figure 22: MSW collection according to province (Metric tonnes a day)

Figure 23: Typical energy consumption in tourist hotels

Figure 24: Typical water usage in tourist hotels

Figure 25: A typical hotel's solid waste generation

Figure 26: Energy consumption details (2011) of Sri Lanka National Energy Efficiency Award award winning hotels

Figure 27: Tourist Arrivals and Accommodation Details- 2002 to 2016

7

8

9

9

12

12

13

13

14

16

17

17

19

20

20

20

21

22

22

23

24

25

28

29

31

36

38

5

11

15

16

18

26

27

35

37

List of Figures

List of Tables

Table 1: Growth trends in tourism sector over the last 10 years

Table 2: List of tourist accommodations (existing) in each district

Table 3: Tourist accommodations under construction in each district

Table 4: Expected addition in room capacity under each category

Table 5: Expected addition to room capacity in tourist hotels (One star to five star)

Table 6: Sector specific quantity and type of solid waste

Table 7: Resource utilization in the Sri Lankan hotel industry.

Table 8: Sri Lanka National Energy Efficiency Award winner hotels in 2010, 2011 and 2012

Table 9: Resource utilization benchmarking details of hotels in various countries

AIHE

BOD

CBSL

CEB

COD

EEPEX

ESCOs

ETP

EU

GDP

GWh

HACCP

IFC

kWh

LECO

MSW

NWSDB

PADGO

SLNEEA

SLTDA

SLSEA

STP

T.D.

TSS

WTO

Australian Institute of Hotel Engineering

Biological Oxygen Demand

Central Bank of Sri Lanka

Ceylon Electricity Board

Chemical Oxygen Demand

Enhancing Environmental Performance in Key Sri Lankan Export Sector

Energy Service Companies

Effluent Treatment Plants

European Union

Gross Domestic Product

Giga Watt Hour

Hazard Analysis Critical Control Point

International Finance Corporation

Kilo Watt Hour

Lanka Electricity Company Private Limited

Municipal Solid Waste

National Water Supply and Drainage Board

Portfolio Approach to distributed Generation Opportunities

Sri Lanka National Energy Efficiency Awards

Sri Lanka Tourism Development Authority

Sri Lanka Sustainable Energy Authority

Sewage Treatment Plant

Time of Day

Total Suspended Solids

World Tourism Organization

List of Abbreviations

Sri Lanka’s hotel industry is a key driver of economic growth

in the island nation. Tourist arrivals have almost doubled

since the end of the conflict in 2009. The government of Sri

Lanka is implementing a tourism master plan that envisages

the arrival of 2.5 million tourists by 2016.

This will place a huge strain on resources, especially energy

and water, and will create immense challenges in the efficient

use of these resources as well as disposal of solid and water

waste.

Given this situation, Sri Lanka’s hotel industry needs to

implement immediate measures that will use resources and

recycle waste with greater efficiency.

This paper, commissioned by IFC, lists a number of ways in

which some hotels are already engaged in this. Most hotels

can easily adopt these best practices. At the same time,

authorities have already sanctioned over a hundred hotels that

are currently under construction in various parts of the

country. These new hotels, which plan to open for business in

the next two years, will have to adopt resource efficient

measures from the outset.

As the hotel industry continues to grow rapidly, authorities

need to encourage sustainability practices by recognizing and

promoting hotels that implement energy saving and recycling

measures in their operations. Experience shows that

sustainability translates into profitability. Best practices are

often subsequently rewarded.

With this growth, it becomes important that Sri Lanka's

pristine environment does not suffer. Through joint efforts

from the government and industry, this growth can be

planned and systematic to achieve sustainability. This will

result in a reduction in the emissions of millions of tons of

greenhouse gases into the atmosphere, which can have

irreversible effects on Sri Lanka’s fragile ecology.

Summary

1.1. Tourism in Sri Lanka’s Economy

YearTotal Tourists Arrived

(No.)

Establishments Providing Accommodation

(No.)

Annual Room Occupancy Rate

(Percentage)Gross Tourist Receipts

(million USD)

Table 1Growth trends in tourism sector over the last 10 years

SourceSri Lanka Tourism Development Authority and Central Bank of Sri Lanka

Sri Lanka has witnessed unprecedented economic growth since the end of its

three-decade long civil conflict in May 2009. The tourism sector has emerged as a

frontrunner in Sri Lanka’s economic activities. According to Central Bank of Sri

Lanka (CBSL), the hotel industry contributed around two percent to the country’s

gross domestic product (GDP) in 2011. Sri Lanka is on its way to becoming a major

tourism destination in South Asia. Table 1 shows the huge growth of the tourism

industry, which has nearly doubled in the last three years.

01

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

393,174

500,642

566,202

549,308

559,603

494,008

438,475

447,890

654,476

855,975

455

498

585

626

749

758

834

871

783

906

43.1

53.2

59.3

45.4

47.8

46.2

43.9

48.4

70.2

77.1

363

441

513

429

410

385

342

350

575

830

Page 05

The Sri Lankan Hotel IndustryAn Overview

1.2. Classification of Tourist Accommodation

Sri Lanka Tourism Development Authority (SLTDA) classifies the tourist accommodation sector into four different categories:

Boutique Villas and Hotels

Boutique hotel is a popular term to describe sometimes luxurious or unique and unusual hotel environments. Boutique hotels differentiate

themselves from larger chain/branded hotels and motels by providing personalized accommodation and services/facilities. There are no

standard classification criteria for boutique villas and hotels.

Boutique hotels are standalone and unlikely to be part of large hotel chains. They focus on tranquillity and comfort rather than gadgetry.

A 24-hour hotel staff often attends to guest services. Many boutique hotels have on-site dining facilities and offer bars and lounges, which

may also be open to the public. The concept of boutique or designer hotels is becoming increasingly popular in Sri Lanka.

Guesthouses

A guesthouse is similar to a hotel or bed and breakfast facility. A guesthouse in Sri Lanka is normally an accommodation unit with five or

more bedrooms.

Home Stay Units/Bungalows/Rented Homes and Apartments

The main aim of these facilities is to provide clean, comfortable and affordable supplementary accommodation to tourists. Tourists in

return will experience local customs and traditions, authentic cuisine, and other attractions of the location while staying with local hosts.

Tourist Hotels

Tourist hotels provide paid lodging, usually on a short-term basis. Facilities provided include attached bathrooms, air conditioning or

climate control, telephones, alarm clocks, television, and internet connectivity. Snacks and drinks may be available in a mini-bar and

facilities for making hot drinks are usually provided. Larger hotels may provide additional guest facilities such as restaurants, swimming

pools, childcare, and have conference and social function services.

Our study focuses on tourist hotels, segmented under standard star category classification.

The Sri Lankan Hotel IndustryAn Overview 01


GuesthousesHome Stay

Units Tourist Hotels

Page 06

1.3. Tourist Hotels

Distribution of rooms as per star category (percentage)

3,230

1,784

1,178

2,022

1,171

5,268

According to Sri Lanka Tourism Development Authority (SLTDA) Statistical Report of 2011, 906 lodging establishments with 20,794

rooms were registered with it at that time. These establishments were dominated by tourist hotels, which accounted for 70.5 percent (or

14,653) of total room capacity. SLTDA defines tourist hotels as establishments whose operations are considered to be of international

standards.

The majority of these rooms are concentrated in the Colombo and greater Colombo area. SLTDA’s grading is based on criteria set by

World Tourism Organization (WTO). The government of Sri Lanka classifies tourist hotels in five different star categories, ranging from

one to five stars. Currently, the country has a high concentration of five-star rated establishments, followed by the budget two-star

category. A large number of hotel rooms in the country continue to be unclassified, with no star rating. These are mostly independently

owned properties with smaller room inventories that offer less expensive but non-standard product options to tourists. Unclassified

properties cater to demand that cannot be met by branded establishments, either due to high room rent or because they are sold out. They

will continue to form an important part of the hotel industry in Sri Lanka.

Figure 1Distribution of rooms according to star category

SourceSLTDA Statistical Report 2011

Five star

Four star

Three star

Two star

One star

Unclassified

22.04

35.95

12.17

8.04

13.80

7.99

Page 07


Figure 2 shows the occupancy rates of tourist hotels by month during 2011 and 2012. Occupancy rates from October to December 2012

are not yet available.

Page 08

Figure 2Monthly average occupancy rate of tourist hotels in 2011 and 2012

SourceSLTDA Monthly Statistical Bulletin * Data not available

* * *

Monthly average occupancy rate of tourist hotels in 2011 and 2012

2011 2012

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

84.4 85.9

74.9

81.2 85

.1 87.4

73.5

53.5

62.2

44.6

57.3

47.4

78.1

77.1

72.6

72.1

70.6 72

.5

80.8

90.3 95

.0


Figure 3 and Figure 4 show monthly occupancy rates of three star to five star tourist hotels during 2011 and 2012. In Figure 4,

occupancy rates from November to December 2012 are not yet available.

Figure 3Monthly average occupancy rate of tourist hotels in 2011 (Three star to five star)

SourceSLTDA Monthly Statistical Bulletin

Monthly average occupancy rate of tourist hotels in 2011 (Three star to five star) 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

86.9

85.8

79.9

77.0

75.9

70.8

85.2

84.1

80.8

76.3

74.5

69.6

65.2

61.4

57.6

55.5

54.7 58

.6

78.2

79.3

78.2

74.3

71.7

69.6

83.5 86

.379

.5

90.2 91.7

88.8

76.3

75.6

67.9

Figure 4Monthly average occupancy rate of tourist hotels in 2012 (Three star to five star)

SourceSLTDA Monthly Statistical Bulletin

Monthly average occupancy rate of tourist hotels in 2012 (Three star to five star)

Five star Four star

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Three star

88.2

87.3

81.1 84

.180

.178

.2

88.9

86.2

83.3

51.1

58.4

52.9

46.2 48

.343

.8

49.3

47.6

44.4

77.4

76.2

75.4

74.9

70.3 71

.8

71.5 72.3

74.7

73.2

71.9

70.4

Page 09

Five star Four star Three star


Sri Lanka’s Highly Diverse Hotel Industry

The Sri Lankan hotel industry is concentrated around Colombo, the economic and

financial hub as well as the gateway to the rest of the country. The southern region

comes second as hotel owners take advantage of Sri Lanka’s beach attractions,

followed by ancient cities. The newly liberated eastern and northern regions have the

potential to grow and contribute more to this industry. The industry primarily

consists of tourist hotels and other establishments that include boutique villas/hotels,

guesthouses, inns and youth hostels approved by SLTDA.

Table 2 has mapped all types of existing tourist accommodation by districts.

02

Page 10

District Name

Total Units

Boutique Hotels/Villas

Bou

tique

Vill

as

S.N

O.

Bou

tique

Hot

els

A G

rade

B G

rade

C G

rade

Unc

lassi

fied

Hom

e St

ay U

nits

Bun

galo

ws

Ren

ted

Hom

es

and

Apa

rtm

ents

Guesthouses Tourist HotelsHome Stay Units / Bungalows / Rented

Homes and Apartments

Table 2List of tourist accommodation (existing) in each district

SourceSLTDA

Ampara

Anuradhapura

Badulla

Batticaloa

Colombo

Dambulla

Galle

Gampaha

Hambantota

Jaffna

Kalutara

Kandy

Kegalle

Kurunegala

Matale

Matara

Monaragala

Negombo

Nuwaraeliya

Polonnaruwa

Puttalam

Ratnapura

Trincomalee

Vanniya

0

0

0

0

1

0

11

2

2

0

2

3

0

0

1

0

0

0

4

0

1

0

0

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

0

1

0

1

3

0

10

0

0

0

1

1

0

1

2

1

0

1

0

0

0

1

0

0

0

5

11

1

25

0

23

27

5

2

22

25

9

9

10

13

5

0

11

6

7

7

3

2

2

6

17

5

39

0

28

32

10

3

22

14

8

21

8

12

6

0

5

6

4

6

5

0

0

1

0

1

0

0

3

3

1

0

2

0

0

0

0

1

0

0

0

1

0

0

1

0

0

0

0

0

6

0

2

0

0

0

2

2

0

0

1

0

0

0

0

1

0

0

0

0

0

0

0

0

3

0

1

1

0

0

1

1

0

0

2

0

1

0

2

1

1

0

1

0

0

1

0

0

3

0

0

2

1

0

1

2

0

0

1

0

0

0

2

1

1

0

0

0

0

1

0

0

2

0

7

5

2

0

4

5

0

1

2

1

0

0

0

1

1

1

2

0

0

2

0

0

9

0

4

4

2

0

1

3

0

1

1

1

1

0

4

1

0

1

0

0

2

3

7

0

9

0

28

21

8

0

15

13

1

0

6

5

1

0

4

4

4

0

4

0

0

0

1

0

15

1

3

8

0

0

1

5

0

0

1

1

0

0

5

0

0

0

0

0

0

0

4

0

10

0

1

0

0

0

1

4

0

0

1

0

0

0

2

0

0

1

0

0

0

0

0

0

1

0

0

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

27 23 228 259 14 14 15 15 35 35 135 41 24 2

Sri Lanka’s Highly Diverse Hotel Industry02

Page 11

2.1. Boutique Villas and Hotels

Boutique villas and hotels are spread across various districts of Sri Lanka. SLTDA has, to date, approved 27 boutique villas and 23

boutique hotels. Most villas and hotels are concentrated in Kandy and the coastal districts of Galle and Colombo.

Page 12

Figure 5Location of Boutique Hotels and Villas by district

SourceSLTDA

Location of Boutique Hotels and Villas by district

Boutique Villas Boutique Hotels

1

2 1

5 6 5 5 56 6 7 74

6 6

1 1 1 1 1 1

53 3 2 2 2

3 35

2522 22 21

1013 12

25

9 98 8

14

39

23

28 27

32

1011 11

17

1 1

3

1110

2 2 21

34

12

11 1 1 1 1

Anu

radh

apur

a

Bat

tical

oa

Col

ombo

Gal

le

Gam

paha

Ham

bant

ota

Kal

utar

a

Kan

dy

Kur

uneg

ala

Mat

ale

Mat

ara

Neg

ombo

Nuw

arae

liya

Putta

lam

Rat

napu

ra

2.2. Guesthouses

A guesthouse in Sri Lanka is an accommodation unit with five or more bedrooms. These guesthouses are located across many districts.

Based on facilities available, SLTDA has graded them into A, B, and C categories1. Of the 501 guesthouses approved by SLTDA, 228 are

A grade, 259 B grade, and 14 C grade.

Figure 6Location of guesthouses in districts by grade

SourceSLTDA

Location of Guesthouses in districts by grade

B Grade C GradeA Grade

Am

para

Anu

radh

apur

a

Bad

ulla

Bat

tical

oa

Col

ombo

Gal

le

Gam

paha

Ham

bant

ota

Jaffn

a

Kal

utar

a

Kan

dy

Keg

alle

Kur

uneg

ala

Mat

ale

Mat

ara

Mon

arag

ala

Nuw

arae

liya

Polo

nnar

uwa

Putta

lam

Rat

napu

ra

Tri

ncom

alee

Van

niya


1 The grading is based on the how much the guesthouses comply with conditions defined by the the Tourism Development Act, No. 14 of 1968, which says: "To qualify for ‘A, B or C’ grade, a Tourist Guesthouse shall obtain minimum points allotted to essential items as 90 percent, 70 percent and 60 percent respectively and obtain total marks as 80 percent, 60 percent and 50 percent respectively from the criteria."

2.3. Tourist Hotels

Tourist hotels dominate tourist accommodation in Sri Lanka. The 248 tourist hotels approved by SLTDA have been categorized into two

major types: classified and unclassified. Classified hotels are further categorized from one to five stars based on criteria specified by World

Tourism Organization (WTO). A large number of tourist hotels continue to be unclassified, as they do not meet these criteria. Unclassi-

fied properties cater to demand that cannot be accommodated by branded establishments due to high rentals or non-availability. They

form an important part of the hotel industry in the country.

According to the SLTDA Statistical Report 2011, tourist hotels accounted for 70.46 percent of the industry’s total room capacity for that

year. Of the 249 tourist hotels, 114 hotels were classified and 135 unclassified. In the classified category, 14 were five star hotels mainly

concentrated in Colombo and greater Colombo regions. Of the remaining, 15 were four star, 15 three star, 35 two star, and 35 one star

hotels. These were spread across the country, but concentrated in Galle, Colombo, Kalutara, and Kandy districts.

Figure 7Location of Tourist Hotels (One star to five star) by district

SourceSLTDA

Location of Tourist Hotels (One star to five star) by district

2 23 33

65 5

7

4 4 4 4

9

1 12 2 2 2 2 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 11 1 1

Four star Five star

Anu

radh

apur

a

Col

ombo

Gal

le

Gam

paha

Ham

bant

ota

Kal

utar

a

Kan

dy

Kur

uneg

ala

Mat

ale

Mat

ara

Mon

orag

ala

Nuw

arae

liya

Polo

nnar

uwa

Putta

lam

Rat

napu

ra

Tri

ncom

alee

Figure 8Location of Tourist Hotels by district

SourceSLTDA

Location of Tourist Hotels by district

1 1 23 4 4 4 4 5 6 7 8 9

1315

21

28

Keg

alle

Mon

arag

ala

Am

para

Anu

radh

apur

a

Nuw

arae

liya

Polo

nnar

uwa

Putta

lam

Tri

ncom

alee

Mat

ara

Mat

ale

Bad

ulla

Ham

bant

ota

Col

ombo

Kan

dy

Kal

utar

a

Gam

paha

Gal

le

Page 13

One star Two star Three star


1 1 1 1 1 11 1 1 11

3

4 4

55

2

8

10

15

2.4. Home Stay Units/Bungalows/Rented Homes and Apartments

These units provide clean, comfortable, and affordable supplementary accommodation to tourists. Sri Lanka has 41 home stay units, 24

bungalows, and two rented apartments approved by SLTDA. Most are located in and around Colombo.

Page 14

Figure 9Home Stay units/Bungalows/Rented Homes and Apartments by district

SourceSLTDA

Home Stay Units

Bungalows

Rented Homes and Apartments

Home Stay units/Bungalows/Rented Homes and Apartments by district

Bad

ulla

Col

ombo

Dam

bulla

Gal

le

Gam

paha

Kal

utar

a

Kan

dy

Mat

ale

Mat

ara

Nuw

arae

liya

Rat

napu

ra


Over 100 new hotels under construction

Tourist accommodation currently under construction are located mainly in Galle,

Colombo, Batticaloa, and Kalutara districts. According to SLTDA, 104 tourist hotels

are under construction in 15 districts. Of these, 68 are tourist hotels, 15 boutique

villas and hotels, 13 guesthouses, and eight resorts.

SLTDA granted approvals to these projects from September 2010 to October 2012.

Table 3 lists tourist accommodation (all types) under construction in each district.

03

District

Total Units

Boutique Hotels/Villas

S.N

O.

Guesthouses Tourist Hotels Resorts District Wise Total

Table 3Tourist accommodation under construction in each district

SourceSLTDA

Anuradapura

Badulla

Batticaloa

Colombo

Galle

Gampaha

Hambantota

Jaffna

Kalutara

Kandy

Matale

Matara

Nuwara Eliya

Puttalam

Trincomalee

0

0

2

1

4

2

1

0

0

0

0

2

0

1

2

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

0

1

3

0

1

0

1

0

3

0

1

1

0

1

1

0

0

0

2

3

2

0

0

2

1

0

0

0

0

0

0

0

2

2

3

1

1

0

2

0

0

1

0

3

2

0

0

2

7

5

2

1

3

3

1

2

2

1

0

1

0

0

1

3

0

1

2

1

1

1

0

0

0

0

0

0

0

1

0

0

0

0

0

0

0

0

0

0

0

0

1

0

1

0

1

0

0

0

1

0

1

1

0

1

1

1

1

12

15

17

8

6

4

12

3

4

7

1

6

7

15 13 10 17 30 10 1 8 104

Page 15

Table 4 details expected addition in room capacity under each category of ‘under construction’ tourist accommodation.

Over 100 new hotels under construction03

Page 16

Table 4Expected addition in room capacity under each category

SourceSLTDA

Category Addition in room capacity (Number of rooms)


Guest Houses

Tourist Hotels

Resorts

441

175

4421

146

3.1. Boutique Villas and Hotels - Under Construction

Sri Lanka Tourism Development Authority (SLTDA) has approved 15 new boutique hotels, which are currently under construction.

While these are spread across eight districts, they are concentrated along the coast, especially in Galle, Gampha, and Matara districts.

Figure 10Boutique Hotels under construction by district

SourceSLTDA

Boutique Hotels under construction by district

Galle

Trincomalee

Matara

Gampaha

Batticaloa

Puttalam

Hambantota

Colombo

8

4

4

4

4

2

2

2


3.2. Guesthouses - Under Construction

A guesthouse is an accommodation unit with five or more bedrooms. SLTDA has approved 13 new guesthouses located across several

districts.

Figure 11Guesthouses under construction by district

SourceSLTDA

Guesthouses under construction by district

Bad

ulla

Gal

le

Ham

bant

ota

Mat

ale

Mat

ara

Putta

lam

Tri

ncom

alee

Bat

tical

oa

Kal

utar

a

1 1 1 1 1 1 1

3 3

3.3. Tourist Hotels - Under Construction

Tourist hotels account for most accommodation projects under construction. SLTDA has approved 68 new tourist hotels of which 10 are

five star hotels, mainly in the Colombo and greater Colombo areas. Of the rest, 30 are four star, 17 three star, 10 two star, and a one star

hotel. These are spread across the country as shown in Figure 12.

Under construction tourist hotels (One star to five star) by district

Figure 12Under construction tourist hotels (One star to five star) by district

SourceSLTDA

2 2 2 22 2 2 2 2 2

7

3 3 3 3 3 3

5

2 2

1 1 1 1 1 1 1 1 11 1 11 1

Bat

tical

oa

Col

ombo

Gal

le

Gam

paha

Ham

bant

ota

Jaffn

a

Kal

utar

a

Kan

dy

Mat

ale

Mat

ara

Nuw

arae

liya

Putta

lam

Tri

ncom

alee

Page 17

Two star One starFive star Four star Three star

Table 5 displays the estimated percentage increase in number of rooms in the one star to five star categories following completion of

under-construction projects.


Page 18

Table 5Expected addition to room capacity in tourist hotels (One star to five star )

SourceSLTDA

Category Existing number of

rooms (2011)

3230

1784

1178

2022

1171

Expected addition in number of room

959

1664

1451

325

22

Percentage increase in number of rooms

30

93

123

16

2

3.4. Resorts - Under Construction

SLTDA has approved eight new resorts, one each in eight districts of Sri Lanka – Trincomalee, Puttalam, Matara, Matale, Kalutara, Galle,

Batticaloa and Anuradapura.

Resource Utilization in Sri Lanka An Overview 04

4.1. Power and Energy Sector

Energy in Sri Lanka is produced from three main sources: biomass (46.08 percent),

hydro (12.36 percent), and petroleum (41.52 percent). A small amount (0.04

percent) comes from non-conventional sources as shown in Figure 13.

Thus, indigenous, renewable sources of energy provide 55 percent of primary energy

needs. Petroleum products are fully imported and used for transport, electricity

generation, and household, commercial, and industrial requirements. While

electricity and petroleum products are the main forms of commercial energy, an

increasing amount of biomass is commercially grown and traded.

As per estimates, 70 percent of national biomass consumption is in the informal

sector: for household cooking, small commercial, and industrial applications. The use

of biomass in industry is growing because of price increases in petroleum fuels. A

significant number of hotels and agricultural processing units (processing of tea in

particular) are switching over from oil to biomass.

Different sources of energy supply in 2010 (Thousand tonne oil equivalent)

46.08 percent

41.52 percent

12.36 percent

0.04 percent

Figure 13Different sources of energy supply in 2010 (Thousand tonne oil equivalent)

SourceSri Lanka Sustainable Energy Authority (SLSEA) Energy Balance

Biomass

Petroleum

Hydro

Non-conventional

4.91

5,045.05

4,543.87

1,352.28

Page 19

Figure 14 shows energy consumption in Sri Lanka according to sector. Energy consumption will increase with economic growth and rising

industrialization. Household, commercial and other sectors (including hotels) account for 49 percent, which is a major share in total

energy consumption. The transport and industry sectors follow with 26 and 25 percent respectively. The agriculture sector consumes a

negligible amount of energy. Figure 15 and Figure 16 present the energy consumption in the industrial sector and the household,

commercial and other sectors.

Note: In Sri Lanka, the hotel industry is covered under Commercial, Household and Other Sectors. Energy consumption in terms of

different energy sources for the Sri Lankan hotel industry is not available separately.


Page 20

Energy consumption (percentage) according to sector in 2010 (Thousand tonne oil equivalent)

10.14

2,200.45

2,336.44

4,312.93

Figure 14Energy consumption according to sector in 2010 (Thousand tonne oil equivalent)

SourceSLSEA Energy Balance

Agriculture

Industries

Transport

Household, Commercial and Other

25

0

26

49

Industry sector (Thousand tonne oil equivalent)

Figure 15Industry sector (Thousand tonne oil equivalent)

SourceSLSEA Energy Balance www.info.energy.gov.lk

Biomass

Electricity

Petroleum

1,619.3976 percent

3,435.0180 percent

270.7313 percent

243.7411 percent

Household, commercial and other sectors

(Thousand tonne oil equivalent)

Figure 16Household, commercial and other sector (Thousand tonne oil equivalent)

SourceSLSEA Energy Balance www.info.energy.gov.lk

Biomass

Electricity

Petroleum

521.212 percent

359.728 percent

Page 21


4.2. Power Sector

Demand for power in Sri Lanka has been growing at seven to eight percent annually, outstripping supply. The domestic power sector is

struggling to meet the growing demand for electricity. The Ceylon Electricity Board (CEB) has a monopoly over power, with the right to

generate, transmit, and distribute power.

Electricity Sales of CEB

According to the Statistical Digest 2011 - CEB, total sales of electricity in 2011 was 10,023 Giga watt hours, an increase of 8.1 percent

over the previous year’s sale of 9268 Giga watt hours. Figure 17 breaks up power consumed according to type of consumer.

Domestic consumers were supplied with 3379 Giga watt hours (33.71 percent) followed by industrial with 3131 Giga watt hours (31.24

percent), general with 1927 Giga watt hours (19.23 percent), and bulk supply to Lanka Electricity Company Private Limited (LECO),

which was 1267 Giga watt hours (12.64 percent). Hotel consumers accounted for 159 Giga watt hours (1.59 percent), a 7.1 percent

increase compared to 2010 (149 Giga watt hours). Street lighting and religious consumers accounted for one and less than one percent of

total electricity sales.

CEB’s electricity sales in 2011 according to type of consumer (Giga watt hour)

3,379

3,131

1,927

1,267

159

109

51

Figure 17CEB’s electricity sales in 2011 according to type of consumer (Giga watt hour)

SourceStatistical Digest 2011 CEB

Domestic

Industrial

General

Bulk Supply to LECO

Hotel

Street Lighting

Religious

0.51 percent

1.09 percent

1.59 percent

33.71 percent

31.24 percent

12.64 percent

19.23 percent


LECO’s electricity sales in 2011 according to type of consumer (Giga watt hour)

538

367

241

37

23

8

1

Figure 18LECO’s electricity sales in 2011 according to type of consumer (Giga watt hour)


Domestic

General

Industrial

Hotel

Street Lighting

Religious

Temporary Connections

0.08 percent0.66 percent

1.89 percent

44.28 percent

30.21 percent

3.05 percent

19.84 percent

Page 22

Electricity Sales of LECO

The 1267 Giga watt hours of electricity to LECO was in turn distributed to its customers. LECO’s electricity sales in 2011 according to

type of consumer are provided in Figure 18. Of this, domestic consumers were supplied with 538 Giga watt hours (33.71 percent)

followed by general with 367 Giga watt hours (30.21 percent), hotels with 37 Giga watt hours (3.05 percent), and street lighting with 23

Giga watt hours (1.89 percent). Religious consumers and temporary connections accounted for 0.66 and 0.08 percent of total electricity

sales.

Total electricity sales of CEB and LECO in 2011 is presented in Figure 19. Of total consumption, domestic consumers were supplied

with 3917 Giga watt hours (39.3 percent), followed by industrial 3372 Giga watt hours (33.8 percent), and general 2294 Giga watt hours

(23 percent). Hotel consumers accounted for 196 Giga watt hours of electricity (two percent), while street lighting and religious

consumers accounted for 1.3 percent and 0.6 percent of total electricity sales.

Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour)

3,917

3,372

2,294

196

132

59

Figure 19Total electricity sales by CEB and LECO in 2011 according to type of consumer (Giga watt hour)


Domestic

Industrial

General

Hotel

Street Lighting

Religious

0.6 percent

1.3 percent

39.3 percent

33.8 percent

2 percent

23 percent


Electricity Sales in the Hotel Industry

The hotel industry consumed 196 Giga watt hours of electricity (from both CEB and LECO) in 2011, or nearly two percent of the

country's total electricity consumption. Greenhouse gas (GHG) emissions due to electricity consumption by the hotel industry was

123,480 tonnes of CO2 equivalent2.

Figure 20 breaks up the electricity sales to the hotel industry as presented in the Statistical Digest 2011 - CEB.

The Ceylon Electricity Board has classified consumers in the hotel industry in the following categories:

Note: Time of Day tariff is a tariff structure in which different rates are applicable at different times of the day.

Electricity sales to the hotel industry according to consumption in 2011 (in Giga watt hour)

1

0

92

37

65

2

Figure 20Electricity sales to the hotel industry according to

consumption in 2011 (in Giga watt hour)

SourceStatistical Digest 2011CEB

Small

Small + Time of Day

Medium

Medium + Time of Day

Large

Large + Time of Day

1% percent

0.5 percent

46.7 percent

18.8 percent

33 percent

Small - Supply at 400/230 volts and Contract Demand less than or equal to 42 kilo volt amperes

Medium - Supply at 400/230 volts and Contract Demand above 42 kilo volt amperes

Large - Supply at 11 kilo volts and above.

Page 23

2 Carbon footprint calculator available on website of Greening Sri Lanka Hotels - the EU funded SWITCH ASIA Program


4.3. Water Sector

Sri Lanka is well placed when it comes to water resources. Surface water dominates the water sector, while groundwater use is largely

limited to domestic water supply and small-scale irrigation. However, increase of industrial zones and development of tourist hotels is

leading to unprecedented groundwater extraction in Sri Lanka.

The National Water Supply and Drainage Board (NWSDB), which currently functions under the Ministry of Water Supply and

Drainage, is the principal authority providing safe drinking water and sanitation in Sri Lanka. According to NWSDB’s annual report

2009, direct billing consumers (domestic, NWSDB quarters, and government quarters) accounted for 66 percent of total water sold by it.

This was followed by government institutions (10 percent), commercial and industrial (nine percent), tenement gardens (four percent),

bulk buildings (3 percent), board of investments (two percent), and religious premises (two percent). Schools, public stand posts (public

taps), shipping, and others accounted for only one percent each of total water sold.

Tourist hotels purchased only one percent (1,942,000 cubic meters) of total water sold by NWSDB in 2009. Apart from government

water supply, hotels also sourced water from their own resources like bore wells. In fact, bore wells are major sources of water for most

hotels. Lesser sources are rainwater harvesting and third party vendors. As a major portion of demand is met by unaccounted sources,

accurate information on water consumption by hotels is not available in the public domain.

Sales (percentage)

Figure 21Quantity of water sold by NWSDB in 2009 according to type of consumer

SourceSri Lanka NWSDB Annual Report - 2009

Direct Billing (Domestic, National Water Supply and Drainage Board Quarters, Government Quarters)

Government institutions, National Water Supply and Drainage Board premises

Commercial and Industrial

Tenement Gardens

Bulk Billing

Board of Investments

Religious Premises

Schools

Public Stand - Post Supply

Others

Tourist Hotels

Shipping

Page 24

2

2 11

113

66

10

4

9


4.4. Solid Waste Generation

Solid waste, especially municipal solid waste, is a growing problem in urban Sri Lanka due to absence of proper solid waste management

systems.

The rate of generation of solid waste is increasing with the growth of population, technological development, and changing lifestyles.

Currently, total municipal solid waste generation is around 6400 metric tonne per day for all of Sri Lanka, of which only 3770 metric

tonne per day is effectively collected. The municipal solid waste collected according to province is given in Figure 22.

Primary sources of municipal solid waste are households, markets, and commercial establishments. Industries and hospitals constitute

secondary sources.

Page 25

Figure 22Municipal solid waste collection according to province

(Metric tonnes per day)

SourceGlobal Methane initiative especially municipal solid waste status, Sri Lanka in 2012

Municipal solid waste collection according to province (Metric tonnes per day)

Wes

tern

Cen

tral

Nor

th W

este

rn

Saba

raga

muw

a

Sout

hern

Nor

th C

entr

al

Uva

Easte

rn

Nor

ther

n

1873

319 353166 227

96 100

506

130

Collection (Metric tonnes per day)

Ceramic, rubber, plastics, hotel, leather, and desiccated coconut are major industrial sectors that generate solid waste. Sector specific

quantities and types of solid waste are listed in Table 6.

The table shows that hotel industry is the main producer of solid waste among the different industrial sectors.

Table 6Sector specific quantity and type of solid waste

SourceEEPEx Project- Enhancing Environmental Performance in Key Sri Lankan Export Sector

Sector Major solid waste types

FoodHotel

Quantity(Metric tonne per month)

6000

Ceramic sludge(wet)

Glazed broken items

Used plaster molds

Broken biscuit ware

Used staggers

Ceramic

Cured rubber

Latex sludge (wet)

Rubber

600

150

Sludge (wet) Desiccated Coconut 5

Laminated plastic films

Off-cuts

Adhesives tapes

Plastics 70

Fleshing (wet)

Sludge (wet)

Scrap

Buffing /splitting

Trimming

Hair

Leather 1500


Page 26

Page 27

Resource Utilization in Sri Lankan Hotels 05

With increasing awareness of the global energy crisis and growing concerns among

consumers over climate change and global warming, the hotel industry needs to

implement appropriate energy, water, and waste management systems by adopting

better environmental practices.

According to the Statistical Digest 2011 - Ceylon Electricity Board (CEB), the Sri

Lankan hotel industry accounted for two percent of total electricity sales in 2011,

which is equivalent to 196 Giga watt hours. It registered a growth of 3.5 percent over

2010’s electricity sales (190 Giga watt hours)

According to the Sri Lanka National Water Supply and Drainage Board Annual

Report – 2009, the Sri Lankan Hotel industry accounted for one percent (supplied by

government agencies) of the country’s supplied water consumption in 2009,

equivalent to 1,942,000 cubic meters.

Table 7Resource utilization in the Sri Lankan hotel industry

Resource Energy3

49 percent (2010)Percent of total consumption in the country

Water supplied by NWSDB

one percent (2009)

4,312.92 Thousand tonne

oil equivalent(2010)

Electricity

Resource utilization in Sri Lankan hotel industry

two percent (2011)

196 Giga watt hours (2011)Quantity 1,942,000 cubic meters (in 2009)

3 Note: Energy consumption data is available for Commercial, Household and Other Sector, which includes electricity also. In Sri Lanka, hotel industry is covered under Commercial, Household and Other Sector. Energy consumption share of different energy sources for the Sri Lankan hotel industry is not available separately.


Page 28

Tourist arrivals in Sri Lanka have been increasing year on year over the last three decades. In 2011, arrivals were around 850,000 and the

government has set a target to increase it to 2.5 million tourists by 2016. To achieve this, the Sri Lankan hotel industry needs to double its

infrastructure in the next three years. This will also result in doubling resource utilization by that time.

As is apparent from energy efficiency and resource improvement studies from other countries, the hotel industry possesses a savings

potential of 20 percent in energy and water consumption. Waste generation can be reduced by 20 percent by improving resource

utilization through adoption of best practices.

Energy and water efficiency and improvement in resource utilization improves the organizational performance of a hotel. It also helps

greatly to position itself as a more responsible destination in the minds of consumers.

5.1. Energy and Water Consumption

The major sources of energy in Sri Lankan hotels are grid-supplied electricity, diesel for electricity generation, furnace oil for steam boiler

operation, liquefied petroleum gas (LPG) for cooking, biomass from cultivated forestry, and biogas from waste. The energy use4 of a

typical hotel in a warm humid climate, such as the Sri Lankan coast, is provided in Figure 23. The breakup of energy consumption is

air-conditioning 50 percent, followed by lighting (20 percent), kitchen (15 percent), laundry (eight percent), and others (seven percent).

Typical energy consumption in tourist hotels in Sri Lanka (percentage)

Figure 23Typical energy consumption in tourist hotels

SourceStudy on sustainable consumption practices in Sri Lankan hotels

Air Conditioning

Lighting

Laundry

Kitchen

Others

7

50

20

15

8

4 Research paper “A study on sustainable consumption practices in Sri Lanka hotel industry” written by Professor N Ratnayake, University of Moratuwa and Srilal Miththapala, Ceylon Chamber of Commerce


Hotels consume a significant amount of water for various activities. The amount of water used directly impacts the amount wastewater

generated and treated in treatment plants.

The typical pattern of how water is used in the different departments of a hotel in a warm humid climate, such as the Sri Lankan coast, is

shown (Australian Institute of Hotel Engineering, 1996) in Figure 24. Efforts to conserve water should be directed at guest rooms,

kitchens, public washrooms, and laundry. In addition, gardening and landscaping consume substantial amounts of water, particularly in

the dry season, depending on the size of garden and type of vegetation. If hotels take initiatives to reduce their water consumption, the

generation of wastewater will automatically reduce, and the performance of wastewater treatment plants will improve.

Typical water usage in tourist hotel (percentage)

Figure 24Typical water usage in tourist hotels

SourceStudy on sustainable consumption practices in the Sri Lankan hotel industry

Guest rooms

Air conditioning

Kitchen

Cold room

Laundry

Steam generation

Lockers/Public toilets

Pool

12

38

16

4

16

2

21

Page 29


Wastewater Management

With new hotels rapidly increasing, regulatory authorities in Sri Lanka have decided to enforce stringent environmental regulations on the

hotel industry. As a result, under the Sri Lanka National Environment Act, tolerance limits for industrial and domestic effluents

discharged into the sea were defined in 1990. To comply, most coastal hotels were compelled to set up effluent treatment plants to treat

effluents to correct standards before discharging into the sea or the coastal environment. The costs of installing and running these effluent

treatment plants are high.

Effluent treatment plants collect sewage and wastewater in a sewage collection tank. This is passed through a sand separator to a feeder

tank and then on to two sedimentation tanks. From these tanks, the wastewater passes through soil filters and a treated water sump for

reuse. Sludge produced from the sedimentation tanks is pumped to a digester tank. The digester tank produces biogas after which the

sludge passes through a pressure equalisation tank to drying beds.

The main by-products of the effluent treatment plant or sewage treatment plant are:

Water: used for watering the garden

Biogas: used for cooking

Sun-dried sludge: used in the garden

Page 30

5.2. Waste Generation and Management

Hotels produce more sewage and wastewater (For example, laundry and bath wastes, kitchen wastes) when compared to domestic

households. Wastewater pollutes water bodies surrounding tourist attractions, damages the environment and poses serious threats to

human health.

When it comes to waste management, the hotel industry is driven almost entirely by regulatory requirements, except for a few

environmentally conscious hotels that take extra measures to reduce, reuse, and recycle solid waste and wastewater. This is because most

establishments do not see financial benefits, as they do with energy conservation measures.


Page 31

Solid Waste Management

Solid waste from a typical hotel consists of restaurant food waste, office paper, bottles, plastic, aluminium beverage containers, and

cardboard boxes. Although this waste is diverse, hotels typically generate a consistent type of waste. The majority is paper and food waste,

with lesser amounts of metal, plastic, and glass. This profile is similar to the standard municipal solid waste from residential communities.

In a typical hotel, the breakup of solid waste generation by type is food and non-recyclables, 46.2 percent, followed by paper

(25.3 percent), cardboard (11.7 percent), plastic (6.7 percent), glass (5.6 percent), and metal (4.5 percent). Variations in waste

composition from one hotel to another can be attributed to differences in scope of operations and target markets.

Solid waste management needs to ensure that waste is:

minimised

collected effectively (separated into non-degradable and biodegradable waste)

treated properly

disposed of responsibly

A typical hotel's solid waste generation (percentage)

Figure 25A typical hotel's solid waste generation

SourceUNEP manual for Cleaner production in Hotels

Food and Non recyclables

Paper

Cardboard

Plastics

Glass

Metal

4.55.6

46.2

25.3

6.7

11.7

5.3. Resource Efficiency Potential

Implementation of resource efficiency initiatives in the Sri Lankan hotel industry is urgently needed to reduce dependency on fossil fuels

and meet future demand for resources like energy, electricity and water. Various studies and initiatives indicate that there is potential to

save around 20 percent in energy and 20 percent in water consumption and waste generation5.

5 Greening Sri Lankan Hotels Project - EU funded under the Switch Asia program


Page 32

5.4. Resource Efficiency Measures Taken by some Sri Lankan Hotels

Resource efficiency measures taken by various tourist hotels in Sri Lanka, as collated through secondary research, are as listed below:

Energy Conservation Measures

High and Medium Investment Measures

Variable frequency drives to reduce electricity consumption water pumping

Air curtains to maintain proper cooling and reduce electricity consumption of air-conditioners

Gasifiers to generate energy for laundry

Solar water heating systems for hot water

Incandescent lights and halogen lights replaced by energy efficient lamps

Card-key systems to switch off lights in absence of guests in rooms

Dimmer switches to reduce energy consumption in lighting

Sensors for lights in car parking areas

Low and No Investment Measures

AC temperatures set to optimum level (24-25°C)

Colour code system to switch lights on and off according to a schedule

Lights in corridors switched on and off on a section-by-section basis

Freezer curtains to reduce energy loss in cold rooms

Preventive maintenance as per planned schedules

Water Conservation Measures


Separate meters to monitor water consumption in different departments

Water saving cisterns with dual flushes

Press-top faucets in staff canteens to reduce water wastage


Daily checks for leaks in water storage tanks and taps

Preventive maintenance as per planned schedules

Technicians to check sewage treatment plants every day

Treated water from sewage treatment plant used to water gardens

Water quality checked every six months by external agency to ensure discharged water meets standards set by the Central

Environmental Authority

Kitchen water sent through grease traps and solid grease treated with effective micro-organism solutions and completely digested

Wastewater Management


Sewage treatment plants for wastewater treatment



Page 33

Solid Waste Management

Plastic replaced by environmentally friendly materials. For example, laundry bags are made of cloth (for soiled linen) and cane (to

deliver laundered clothes); shampoo dispensed in ceramic bottles and newspaper bags are made of paper

Plastic water bottles provided with packed lunches. Plastic cutlery not used

Use of plastic straws with cocktails or drinks reduced

Plastic shopping bags discontinued and suppliers educated to use reusable plastic crates or cardboards boxes

Garbage bags used only for wet garbage to meet Hazard Analysis Critical Control Point (HACCP) standards

Office stationery and paper reused

Complete computerisation and networking to make offices paper-free

Garbage and trash separated at sources of origin in all departments - such as the kitchen, restaurant and bar, housekeeping, laundry,

and maintenance

Garbage bins colour coded for glass and plastic, paper and cardboard, polythene and plastic, and wet garbage

Guests requested to bring back picnic boxes and plastic water bottles so they can be disposed of properly



Page 34

Information Dissemination or Awareness Measures

Monetary value of wasteful use of major equipment demonstrated

Notices to create awareness about energy conservation displayed in rooms

Staff trained routinely on energy conservation

Housekeeping staff made aware of the need to be vigilant against leaking taps

All staff trained and monitored on separation of garbage

Energy Management and Electrical Load

Use of card key enabled switches in rooms

Building management systems

Use equipment that matches loads

Use variable frequency drives for motors, chillers, and pumps

Install automatic power factor correction capacitor banks

Use energy efficient lighting systems (LEDs and CFLs)

Use natural lighting as much as possible

Use occupancy sensors and timers to control lighting

Maintain required light levels and use efficient luminaries

Heating, Ventilation, and Air Conditioning Load

Use proper thermal insulation for walls and roofs to reduce AC loads

Consider orientation of building at time of design

Double glass windows and sun control films for windows to reduce heat penetration into buildings

Minimise leaks by using door closers for air conditioned spaces

Use of natural ventilation/tree cover

Use of efficient room air conditioning units

Central type air conditioners with multi compressors and variable frequency drive

Biomass steam boilers, solar hot water panels, heat pumps, and waste heat recovery for heating water

Inverter ACs Solar ACs Hybrid ACs

Hotels under construction need to implement sustainability measures/technologies from the start. The following steps can be considered:

Water Conservation

Install water sub meters to measure water consumption in each section

Rainwater harvesting

Use low flow taps and showers in toilets

Hotel Commercial buildings State sector office buildings

Environmental Management

Use optimum sized wastewater treatment plants and sewage treatment plants

Reuse sewage treatment plant treated water for gardening/toilet flushing, etc.

Solid waste management

Separating and sorting waste at source by using colour coded bins

Biogas production from waste generated in the hotel

Manufacturing

Services

Health care

The list of award-winning hotels is given in Table 8.


Page 35

5.5. Energy Consumption Details of the Sri Lanka National Energy Efficiency Award Winning Hotels

The Sri Lanka National Energy Efficiency Award (SLNEEA) is prestigious national recognition given to organizations implementing

energy efficiency initiatives. The specialty of the SLNEEA program is that it recognizes energy management systems without merely

focusing on specific projects. The awards highlight successful implementation of innovative, cost effective, and transferable energy

efficiency measures across large, medium, and small categories in the following sectors.

Award Category

2010

Jetwing BeachGold

2012

Nil

Nil

2011

Year

Heritance Kandalam

Seashells Hotel (Pvt) Ltd

The Tea Factory HotelSilver Heritance Ayurveda Maha Gedara

Jetwing Hunnas Falls Heritance AhungallaBronze Jetwing Blue

Jetwing Lighthouse NilCertification of Merit Mount Lavinia Hotel

Cinnamon Grand

Bandarawela Hotel

The Royal Heritage Hotel (Pvt) Ltd

St. Andrew’s Hotel (Pvt) Ltd

Table 8SLNEEA winner hotels in 2010, 2011 and 2012

SourceSLSEA

Assumptions1 kilo watt hour: 860 kilocalorie, 1 kg of LPG: 12500 kilocalorie, 1 kg Diesel: 10500 kilocalorie, 1 kg Furnace Oil: 9800 kilocalorie, 1 kg of

Fire Wood: 2900 kilocalorie

The Annual energy consumption details of some award winning hotels are provided in Figure 26.


Page 36

Figure 26Energy Consumption Details for 2011 of Selected SLNEEA Award Wining Hotels in 2010, 2011, 2012

SourceSLSEA

Energy Consumption Details for 2011 of Selected SLNEEA Award Wining Hotels in 2010, 2011, 2012

Hotel G

Hotel F

Hotel E

Hotel D

Hotel C

Hotel B

Hotel A

0 5000 10000 15000 20000

Electricity

LPG (Million kilocalorie)

Diesel

Biomass - Firewood (Million kilocalorie)

Furnace oil (Million kilocalorie)

Category

Million kcal

Electricity (Million kilocalorie)

LPG (Million kilocalorie)

Diesel (Million kilocalorie)

Biomass -Firewood (Million kilocalorie)

Furnace oil (Million kilocalorie)

Hotel A

12,148.3

1,501.6

202.0

0.0

5,652.7

Hotel B

5,200.9

77.5

0.0

0.0

3,067.8

Hotel C

2,735.7

280.3

0.0

0.0

1,051.5

Hotel D

1,309.1

359.3

78.4

1,384.3

0.0

Hotel E

556.0

168.5

754.3

460.7

0.0

Hotel F

143.5

88.2

0.0

0.0

0.0

Hotel F

368.3

22.4

0.0

0.0

517.2

NA: Data is not available

Resource Utilization Benchmarking – World Over06

A comparison of resource utilization benchmarking for hotels in various countries is

provided in Table 9. This is based on information published in various reports and

international journals on resource use and waste management in hotels. During this

assignment, the project team will identify parameters for three, four, and five star

hotel categories.

Page 37

Table 9Resource utilization benchmarking details of hotels in various countries

SourceInternational Journal of Basic and Applied Sciences IJBAS Vol.: 9 No: 10: Resource Use, Waste, and Total Productivity Management in Saudi Arabia Hotel Industry, Journal of Cleaner Production 13 (2005) 109–116: Resource use and waste management in Vietnam hotel industry

Electricity Consumption (kilo watt hour/Guest Room/Day)

Water Consumption (m3 Water / Guest Room / Day)

Wastewater (m3 Wastewater / Guest Room/Day)

Solid Waste(kg of Solid waste / Guest Room/Day)

NA

NA

NA

NA

77 - 98

6 - 21.0

3 - 5.3

14 - 33

<60.4

NA

0.5

NA

35

0.9 - 1.4

NA

1.2 - 2

Vietnam Saudi Asia Europe

81 - 127

4.4 - 39.9

13.5 - 32.3

NA

44 -77

2.4 - 2.6

1.8 - 2.2

7.3 - 12.2

30 - 40

1.8 - 2.3

1.4 - 1.7

2.5 - 7.2

<40.2

NA

0.29

NA

30

0.2 - 0.3

NA

0.5 - 1.5


40 - 50

2.2 - 11

8.2 - 17.9

2.3 - 12

<21.4

NA

0.26

NA

25

0.2 - 0.3

NA

0.5 - 1.5


15 - 27

0.9 - 1.7

0.4 - 0.8

0.8 - 2.1

27 - 41

0.6 - 10.8

0.7 - 5.6

1.4 - 1.9

<21.4

NA

0.26

NA

25

0.2 - 0.3

NA

0.5-1.5


Resource Hotel Category

As per the Tourism Master Plan 2011-2016 by Sri Lanka Tourism Development Authority, the government has set a target to attract 2.5

million tourists by 2016. An estimated 45,000 hotel rooms will be required to cater to that figure, which is approximately three times

existing figures. SLTDA has approved 68 new tourist hotels in the last three years, which are currently under construction. These will add

over 4000 rooms over the next two to three years.

As discussed in earlier sections of this report, the Sri Lankan hotel industry accounted for two percent of total electricity sales in 2011,

which is equivalent to 196 Giga watt hours, a growth of 3.5 percent over 2010 electricity sales (that is 190 Giga watt hours). Apart from

electricity, the hotel industry consumes significant amounts of primary energy and water.

How to Ensure Sustainability in Sri Lankan Hotels07

Sri Lanka has witnessed unprecedented economic growth since the end of its three

decade-long civil war in 2009. The tourism sector has emerged as a frontrunner in Sri

Lanka’s economic activities. According to the Central Bank of Sri Lanka (CBSL), the

hotel industry contributed around two percent to the country’s gross domestic

product (GDP) in 2011. Details of tourist arrivals and accommodation capacity for

the last 15 years are provided in the Figure 27.

Figure 27Tourist Arrivals and Accommodation Details - 2002 to 2016

SourceSLTDAAnnual Report 2011

Tourist Arrivals and Accomodation Details - 2002 to 2016

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

*

2013

*

2014

*

2015

*

2016

*

Accomodation Capacity (Rooms)

Tourist Arrivals

Acc

omod

atio

n C

apac

ity

(Roo

ms)

Tou

rist

Arr

ival

s

3000000

2500000

2000000

1500000

1000000

500000

0

50000

45000

40000

35000

30000

25000

20000

15000

10000

5000

0

* Note: Tourist arrivals and accommodation capacity from 2012 to 2016 estimated to increase by 25 percent every year.

Page 38

If the Sri Lankan Tourism Master Plan 2011-2016 is implemented successfully, energy requirements in the hotel industry will increase by

about three times the 2011 figures by 2016. This will throw out millions of tonnes more anthropogenic6 carbon into the atmosphere.

Multilateral and bilateral cooperation agencies and development finance institutions should engage directly to inform, educate, and work

collaboratively with the tourism industry to integrate sustainability into policies and management practices and secure its active

participation in developing sustainable tourism. At the national level, government and civil society engagement should be a critical part of

efforts to coordinate action towards successful implementation of resource efficiency measures in the hotel industry.

Some programs, which can make Sri Lankan hotels sustainable and greener, can be:

From the data presented above, it is clear the rapid increase in Sri Lankan tourist hotels in the current scenario will lead to higher energy

consumption and environmental degradation. Drastic measures must be taken for efficient use of resources in the Sri Lankan hotel

industry through implementation of innovative programs that do not affect the economic growth of the sector.

Star Rating Program for Hotels: The star rating program for hotels can lead to more efforts by hotels to get higher star ratings and

ultimately use that to market their hotels. This can also increase demand for these hotels in the market, based on their resource

efficiency. That is, actual performance of the hotels in terms of specific resource usage (specific energy consumption, specific water

consumption, and specific waste generation). Ratings can be based on a one to five star scale in each category of graded tourist

accommodations with five star labelled hotels being the most efficient.

National Hotel Industry Resource Consumption Benchmarking Program: The main goal of the program can be to establish a

framework to standardize data collection on resource usage, baseline setting for different graded tourist accommodations, resource

utilization target setting and monitoring. This information can help users and other stakeholders evaluate hotel resource efficiency,

track improvements compared to other hotels, and recognize top performers.

Financing Program for Resource Efficient Measures in Hotel Industry: Resource efficiency and environmental investments are

relatively new, so remain outside the mainstream of financial markets (particularly in developing countries). In many cases, barriers are

based on misperceptions or lack of knowledge. For example, payback periods and amounts are not clearly established for many green

investments due to limited experience with them. This creates uncertainty for banks and other investors, jeopardizing financing.

Financial support (through lower interest loans) can be provided to hotel owners and energy service companies (ESCOs) to invest in

resource efficient measures in hotels. This will act as a motivator for bankers, hotel owners, and energy service companies to invest in

resource efficient measures in the hotel industry.

How to Ensure Sustainability in Sri Lankan Hotels07

Page 39

6 An effect resulting from human activity

International Finance Corporation Sri Lanka 15th Floor, DHPL Building 42 Nawam Mawatha Colombo 02 Sri Lanka

Tel: +94 11 5400 100 Fax: +94 11 4795 017

www.ifc.org

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Ensuring Sustainability In Sri Lanka's Growing Hotel Industry

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