The Destination Water Risk Index

• To help hotel companies (ITP members and others) prioritise action on water scarcity where water risk is the highest, and implement water stewardship strategies in their hotel developments and operations in destinations. This index will help developers, corporate responsibility (CR) teams and property managers evaluate risks and take action with a first-of-its-kind dataset. • To encourage the hotel industry to come together and take collective action in destinations with the highest water risk, to address current and future local water scarcity in their properties and within the communities in which they operate. • To call the attention of the wider tourism industry and its stakeholders (e.g. national and local governments) to water scarcity in these destinations and the need to take proactive and collective action to avoid many more Cape Town situations. • To highlight existing solutions and best practices implemented by ITP member companies to prevent water risks by adopting a water stewardship approach to water management right from the hotel development phase, and throughout their operations and supply chain. Key findings This Index identifies twelve locations across six countries with the highest overall risk when factoring water stress (WRI Aqueduct), future water cost increase risk (Ecolab Water Risk Monetizer), water usage intensity per occupied room, hotel supply (of rooms), and hotel pipeline growth. • Indonesia: Bali, Jakarta, Surabaya • India: Mumbai, Delhi • Thailand: Bangkok • China: Beijing, Qingdao, Hangzhou, Xian • United Arab Emirates: Dubai • Philippines: Manila Bali and Mumbai are the two destinations with the highest overall assessment risk (“extremely high”). The report highlights the need to prioritise the above 12 locations when designing water stewardship strategies among global portfolios because they already face chronic high-water stress, and significant operating cost increases are likely to affect hotels and tourism operators there. If no action is taken, this could lead to increased risks due to the high number of properties already operating and under construction around them. The Index also reveals key trends in how hotels are already affected by water stress in several markets, and what future risks look like in these destinations: • All locations with the highest overall assessment score are in Asia. Five out of the top 12 locations with the overall highest risk – Jakarta, Surabaya, Bali, Delhi, and Mumbai – are in Indonesia and India. This is a clear indication that any hotel company operating in these countries faces acute water risks and related costs, and will do so increasingly in the future. • 7 destinations were determined to have “extremely high” or “high” current and future water stress: Bali, Jakarta, Mumbai, Dubai, Istanbul, Zhengzhou, Abu Dhabi. • 10 destinations were identified to have an “extremely high” water risk premium (i.e. cost increase caused by water risk) for both 1-year and 5-year outlooks: Surabaya, Bali, Jakarta, Mumbai, Bangkok, Delhi, Bandung, Cape Town, Pattaya, Cairo. • 10 destinations are foreseen to have a “high” or “extremely high” hotel pipeline growth in the coming years, exposing hotels operating there to increased water risks in the future: Mumbai, Surabaya, Dubai, Manila, Los Angeles, Melbourne, Warsaw, Delhi, Hong Kong, Sydney. DWRI results lead to a set of specific recommendations for different decision makers and teams within hotel companies. You can find these recommendations in the following sections of this report: • Hotel CR teams • Hotel Development teams • Hotel General Managers and Engineering teams. This report presents the summary findings of the top hotel markets identified with highest risk overall and in specific categories. Hotel companies submitting data to the Cornell Hotel Sustainability Benchmarking Index can receive a complete analysis of their portfolios in further detail. More information is provided for where more specific details can be found, including Ecolab’s Water Risk Monetizer for water cost risks.