The Index is designed to provide evidence and rationale to prioritise water conservation in capital allocation, development and renovation decisions, and operational focus in top risk destinations.

Implemented in

  • Africa
  • Asia / Pacific
  • Europe and Central Asia
  • Latin America / Caribbean
  • Middle East
  • North America

Sectors of activity
Water, Consumer Goods, Buildings and construction, Tourism

Type of initiative
Research, Analysis, Assessment

Start date
08/02/2019

Shared by

Nicolas Perin

Programmes and Partnerships Manager

International Tourism Partnership

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Objectives

• 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.

Activities

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.

Impact and Results

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.

Next steps and how to get involved

How to use DWRI insights in your company

CR teams: focusing your water stewardship policy on the highest risk destinations The Destination Water Risk Index provides a unique analysis on water risk in key markets, by factoring multiple datasets. The results can therefore be used to initiate a water stewardship strategy or complement an existing water risk assessment, using sector-specific information.

Development teams: integrating water risk when choosing and planning new developments When determining locations for hotel development, the Destination Water Risk Index can be used to consider the potential impacts from future water stress, and water cost for identified markets. Hotel companies can use the Index results to identify and plan for future hotel growth in water stressed and future water stressed areas to better manage water demand.

General Managers and engineering teams: upgrading water management practices and infrastructure in water stressed destinations The Destination Water Risk Index includes data from the Green Lodging Trends Report2, which assesses and benchmarks sustainable best practices across properties worldwide. Trend results allow a more practical understanding of current water management practices in the high water risk destinations and help identifying how current gaps between risks and practices can be closed.