The Price of Power Keeping Tourism Competitive in the Face of Rising Energy Costs Presented by Anton Edmunds, Executive Director Caribbean Central American Action - PowerPoint PPT Presentation

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The Price of Power Keeping Tourism Competitive in the Face of Rising Energy Costs Presented by Anton Edmunds, Executive Director Caribbean Central American Action

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Title: The Price of Power Keeping Tourism Competitive in the Face of Rising Energy Costs Presented by Anton Edmunds, Executive Director Caribbean Central American Action


1
The Price of Power Keeping Tourism
Competitive in the Face of Rising Energy
CostsPresented by Anton Edmunds, Executive
DirectorCaribbean Central American Action
  • 8th Sustainable Tourism Conference
  • Keeping the Right Balance Economic Progress and
    Sustainable Tourism

2
  • Caribbean Central American Action (CCAA)
  • Private, independent organization whose mission
    is Strengthening The Third Border.
  • Serves its goal by stimulating a constructive
    dialogue between the private and public sectors
    to improve the policy and regulatory environments
    for business on both the international and local
    level.
  • Conducts policy-oriented programs in sectors such
    as agribusiness, apparel, energy, environment,
    financial services, intellectual property rights,
    telecommunications information technology,
    tourism and transportation.
  • Host to the Miami Conference on the Caribbean
    Basin, the premier annual gathering of its kind
    that brings together senior public and private
    sector leaders from the region, including Heads
    of State, to discuss trade, economic and policy
    issues in the Caribbean Basin.

3
  • Present Tourism Business Climate
  • Increasing direct foreign investment in region
    e.g. international Hotel chains, restaurants
  • Onset of CSME regionalizing of markets and
    integration of businesses and tourism
    organizations.
  • Growth in new/first time vacationers attracted
    to the eco/nature/ green tourism product
    outstripping traditional sun, sea, sand only
    products.
  • International competition Tourists have access
    to more information and more options

4
  • Factors Affecting International Oil Prices
  • Growth in world demand - China
  • Natural uncertainties e.g. extreme weather events
    - Katrina
  • Political uncertainties e.g. war and conflict -
    Middle East
  • Political Instability in producer countries -
    Nigeria, Russia
  • Refining capabilities need new investment
  • Operational risks
  • OPEC actions level of output
  • Small Caribbean Basin economies have little
    power to control any of these factors - decisions
    made by extra regional forces.

5
  • Regional Energy Security
  • Even with surging international energy costs
  • Continued reliance on imported petroleum products
  • Lack of a regional energy policy or regional
    consensus on the issues
  • Energy supply chain largely operated by
    multinationals in our country markets
  • Country agreements with Venezuela it is argued by
    some may be mortgaging the future
  • Necessary changes such as blending of ethanol
    into fuels and replacement of MTBE can affect
    prices

6
  • Impacts on the Tourism Sector
  • High cost of electricity and increasing price of
    fuel to providers of tourism goods and services
  • Price has/will be passed on to the consumers
    which allows lower cost-same segment competitors
    e.g. Costa Rica, Mexico to become more attractive
  • Disproportionate impacts on small businesses
    which dominate the sector e.g. guest houses, taxi
    operators, boating, rural co-operatives.
  • Highlights inefficient practices that we may
    employ in terms of costs as well as
    environmentally

7
  • In the face of this are you taking a
  • LEADERSHIP ROLE
  • in the Regional Energy Security and
    Diversification discussion?
  • No
  • Are you taking
  • RESPONSIBILITY
  • on policy issues that affect your bottom line?
  • Not enough

8
  • Notable Energy Initiatives
  • National policies
  • Barbados (Incentives for solar)
  • Jamaica (bio-fuels ethanol production)
  • Regionally
  • CARICOMs Caribbean Renewable Energy Program
    (CREDP)
  • GEF/OAS Renewable Energy Program in Guyana
  • Others
  • PETROJAM Wind farms in Jamaica.
  • Wind Farm developments in Curacao and Guadeloupe
  • CNG vehicles and fuel stations in Trinidad
  • Geo-Thermal development in OECS countries (OAS)

9
  • Caribbean Alliance for Sustainable Tourism (CAST)
  • Promotion of energy efficiency best practices
  • Provision of toolkits, training opportunities
    for the hospitality workforce
  • Documentation of case studies including
    performance measurements to determine cost
    benefits of energy conservation
  • Enlisting the financing assistance for pilot
    projects, of multinational donors
  • Advising on appropriate technologies and
    technical specifications for conservation
  • Legitimizing industry efforts through
    certifications

10
  • Obstacles to Regional Energy Security
  • Policy
  • - Lack of government commitment
  • - Lack of investment in human resources
  • - Lack of interest by public utilities.
  • - Few incentive policies for commercial
    applications and investment
  • Financial
  • - Few project developers in region
  • - Insufficient acceptance by mainstream industry
    and private banks
  • to fund use of new technologies even
    outside of tourism

11
  • Obstacles to Regional Energy Security..contd
  • Institutional Capacity
  • - Resources fragmented and scattered in the
    region
  • - Lack of continuity in projects undertaken,
    more co-ordination required

12
  • Joining the Dialogue - Critical
  • Petroleum Policy Harmonization
  • - Differences in National taxes and subsidy
    systems on imported fuels.
  • - Pricing systems differ from country to
    country
  • Standards and Specifications
  • - Differences in imported fuel product
    specifications
  • - Differences in transportation specs for
    shipments and tankers
  • Savings through economies of scale and logistical
    and system efficiencies can be achieved as a
    region. Those committed to the success of the
    tourism industry and the environment must join
    the dialogue

13
  • Joining the Dialoguecontd
  • Power Generation Policy
  • - Access to national electricity grids and
    ability to utilize alternative energy product
    limited by national policies
  • Security of Supply
  • - Discuss long term implications of the
    PETROCARIBE negotiations
  • - Relevance of sole source dependence and
    relations with multinationals..flexibility

14
  • Solutions, Implementation Best Practices
  • Highlight Vehicle and engine technologies and
    fuels
  • Cuba announced energy revolution using public
    transport buses run on ethanol/Brazil
  • Mixed success of CNG in Trinidad due to low
    public and private sector investment (e.g.
    fuelling stations)
  • Advocate for Re-engineering and retrofitting
  • Barbados Light and Power has revamped plant
    operations with energy efficient turbines,
    generators and motors.
  • Encourage use of eco-efficient building materials
    and construction technology in small and large
    hotels is becoming more feasible and less costly
  • US20-30 investment per room yields over US100
    annual savings per room (PA Consulting, 2001)

15
  • Solutions, Implementation Best Practices
  • Renewables and Alternatives
  • Wind
  • - Track Barbados Light and Power efforts,
    Jamaican Wind Farms, Farms in Guadeloupe and
    Curacao
  • Solar
  • - Advocate for regional solar policy. There is
    more solar energy available in the Caribbean per
    day than equivalent barrels of oil used
    (Haraksingh,2003)
  • - Barbados water heaters. Is there acceptance by
    the regional market?
  • - Why no BP Solar in region?
  • Bio-fuels
  • - Encourage countries that are moving forward
    with ethanol fuel production Jamaica, Trinidad,
    Barbados, Guyana and the DR

16
  • Opportunity in the Face of Crisis
  • Re-branding of the region as the premier Green
    Destination in the world
  • Re-position the traditional Caribbean tourism
    product to more effectively include eco and
    nature based attractions
  • Competitive advantage in this market will be
    derived from authenticity of the eco-product
    including the entire vacation experience.
  • Increasingly knowledgeable tourists will be able
    to discern green washing easily.
  • National commitments already in Dominica and
    other but need for regional approach

17
  • Industry Champions
  • Tourism Ministers
  • Implement more creative incentives for industry
  • Advocate greening of industry and engage in high
    level energy discussions
  • Dont leave energy policy to energy Ministers
  • Local Hoteliers, Business Owners Embrace new
    technologies and management practices
  • Advocate a industry wide regional action plan
  • Foreign Investors
  • Be creative in investment thinking and decisions
  • Consider social, economic and environmental
    footprint
  • Industry associations like CTO, CAST, CHA along
    with Environmentalists
  • Be vocal on energy issues and their impact on
    tourism
  • Hospitality industry - co-operate with and
    embrace the work of CAST

18
  • Conclusion - Next Steps
  • Take a seat at regional Energy forums that
    hospitality has not traditionally been engaged
    in.
  • Weigh in with policy makers and leaders so that
    your opinions are considered at Caribbean Energy
    Ministers Meetings and CARICOM Heads of State
    Meetings
  • Forge alliances regional technical and policy
    research institutions (University of the West
    Indies)
  • Through proactive associations like the CTO, CHA
    and CAST devise a tourism sector Energy Action
    Plan

19
The Price of Power Keeping Tourism
Competitive in the Face of Rising Energy
CostsPresented by Anton Edmunds, Executive
Director, CCAASpecial thanks to Kalim Shah,
Research Fellow, CCAA
  • Caribbean Tourism Conference
  • 8th Annual Conference
  • Keeping the Right Balance Economic Progress and
    Sustainable Tourism
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