Current and Potential Uses of Weather, Climate and Ocean Information in Business Decision-making the Recreation and Tourism Industry

1
Current and Potential Uses of Weather, Climate
and Ocean Information in Business Decision-making
the Recreation and Tourism Industry

• Monica Hale Mary Altalo
• Science Applications International Corporation
  (SAIC)
• 27 May 2002

2
Investigation into the Use of Weather, Climate
and Ocean Information in the Recreation and
Tourism Industry

• Objectives of the Investigation
• Assess the importance, complexity, drivers,
  sophistication and skill of the industry
• 2. Analyze the requirements and needs for
  environmental information
• 3. Understand how the environmental information
  is used in the industry operations
• 4. Determine future interactions needs and uses

3
Outline of Presentation

• Background of the project
• Findings of the Research analysis of the
  Recreation and Tourism Sectors needs for
  weather, climate and ocean information
• Integrating environmental information into
  business decision making
• Conclusions

4
Approach

• How the investigation differs from previous
  assessments
• Scope
• Interviews and analysis
• From user rather than provider perspective
  demand pull vs. supply push
• Tags the information and follows it through a
  business transformation into the decision aid
• In depth on a few rather than broad brush
• Links transformed product to raw data-
  INFOMORPHS
• Capacity building requirements

5
TOURISM RECEIPTS AS PERCENT GNP AND EXPORTS AND
PER CAPITA
COUNTRY GNP COUNTRY EXPORTS COUNTRY PER CAPITA (US)
Maldives 99.1 Antigua Barbuda 83.3 Antigua Barbuda 4,062
Antigua Barbuda 83.3 St. Lucia 63.4 Austria 1,877
St. Lucia 45.9 Maldives 57.4 Barbados 1,788
Seychelles 31.0 Barbados 56.3 St. Kitts Nevis 1,595
Barbados 27.4 Dominican Republic 48.6 Malta 1,578
Jamaica 26.7 Seychelles 43.2 St. Lucia 1,333
St. Vincent Grenadines 24.9 St. Vincent Grenadines 41.5 Switzerland 1,109
Belize 24.4 Belize 38.0 Denmark 728
Malta 21.8 Grenada 38.0 Spain 567
Grenada 18.1 Jamaica 37.0 Belize 540
Gambia, The 15.3 Dominica 25.8 Maldives 496
Fiji 14.8 Egypt 25.2 Iceland 496
Vanuatu 14.3 Fiji 24.3 St. Vincent Grenadines 495
Dominican Republic 13.9 Gambia, The 24.0 Ireland 463
Source IFC / World Bank/MIGA, 2000 Source IFC / World Bank/MIGA, 2000 Source IFC / World Bank/MIGA, 2000 Source IFC / World Bank/MIGA, 2000 Source IFC / World Bank/MIGA, 2000 Source IFC / World Bank/MIGA, 2000
6
Complexity
7
Environmental Information in Policy and Planning
of the Tourism Industry
     
     

 

•  

Recreation Plans Building Codes, Tax Rules  
Tactical Planning
 
 
 
 
   
 
 
 
 
 
 
 
Strategic Planning
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8

• RECREATION TOURISM INDUSTRY PERFORMANCE
  METRICS
• Business Models - Statistical and Forecast
• Revenue per available room (RevPar)
  Accommodation sector
• Occupancy rates Accommodation sector
• Occupancy percentage Accommodation sector
• Average Daily Rates (ADR) Accommodation sector
• Comparative Operating Rates (COR) Accommodation
  sector
• Gross Operating Profit ( before fees) Across the
  industry
• Economic Impact Assessment Across the industry
• - Financial rate of Return (FRR)
• - Economic Rate of Return (ERR)
• International arrivals Travel sector
• Journeys made Travel sector
•  

9
Environmental Information in the Operational
Business Models

• Average daily temperature
• Average Annual temperature
• January rainfall in inches
• July rainfall in inches
• Number of Heating degree-days (Last 30 years)
• Number of Cooling degree-days (Last 30 years)
• Wind speed in Miles per Hour (Annual average)
• Annual number of days sunny or partly sunny
• Elevation (Mean feet above sea level)
• Wave height
• Ocean current speed and direction

10
Hotels, Resorts and Theme Parks

• Investment decisions
• Finance and budgeting
• Siting of Hotel and Resort Development
• Design and landscaping
• Construction and property maintenance
• Engineering
• Risk Assessment
• Public Relations / Marketing / Communications
• Specialist Resorts and Pursuits
• a)      operations
• b)      marketing
• Regulatory compliance

11
Recreation and Tourism Facility Insurers and
Brokers

• Specifying structural requirements.
• Setting conditions of insurance.
• Provision of Alert services
• Setting premiums
• Establishing trends for basic losses and
  catastrophe losses

12
Marine Transportation, Cruise Lines Aviation

• Ship deployment schedules
• Routing decisions or re-routing alterations
• Calculation of the weight and balance of aircraft
• New airports to fly from
• Temperature (air is denser at higher temperatures
  so the weight ratios are calculated accordingly)
• Calculating percentage cost built in to the
  ticket price to cover added costs of poor weather
  conditions (From one to three percent additional
  costs are usually attributable to weather
  conditions)
• Fog and high winds adversely affect ports and
  airports

13

• .

14
(No Transcript)
15
(No Transcript)
16
Next Steps
Industry Trials Pilot Roundtable Partnership
Project