The Adoption of Environmental Innovations in the Hotel Industry of Gran Canaria

Abstract

Managing environmental attributes of the tourist product is increasingly important for the success of tourist destinations. The authors consider how producers manage environmental attributes in the hotel industry. An environmental quality index is formulated, based on the possible environmental measures a representative unit can adopt, given the technological frontier. Several aspects of environmental quality within the hotel's influence are considered, such as the management of energy, water, solid waste, noise, and urban landscape. These measures can have effects on costs and demand. Thus their adoption represents an opportunity for firms to raise net benefits. Empirical evidence comes from a sample of hotels and apartments in Gran Canaria. Results show that the most frequently adopted environmental measures are those involving low investment and operational cost reductions. The environmental quality index is significantly determined by the category of the facilities, production capacity, integration into a larger management chain, the environmental perception of managers, and the preoccupation of clients with the environment.