Siam Commercial Bank : Sustainable tourism

Siam Commercial Bank embarks on roadshow advocating sustainable strategies for hotels addressing climate change and enhancing brand resilience through sustainable tourism

Siam Commercial Bank (SCB) recently conducted a roadshow focused on sustainability and environmental strategies for hotels along the Andaman coast. The "Andaman - Sustainable Green Hospitality" seminar aimed to equip hotel business customers with adaptive strategies to address climate change. The emphasis was on transforming the concept of hospitality to incorporate activities that minimize greenhouse gas emissions, fostering a sustainable tourism experience. The key recommendation is for hotels to adopt intelligent building designs to cut costs and lower energy consumption, aligning with global trends. SCB is committed to supporting entrepreneurs in realizing their sustainability plans through knowledge sharing and green loans, contributing to the promotion of sustainable tourism in Thailand.

Function at Siam Commercial Bank, revealed that, "Operating with a foundation rooted in sustainability, the Bank strives to foster both business and economic growth while concurrently preserving the environment. The hotel industry stands as another pivotal sector crucial to the Thai economy, contributing significantly with a GDP share of 4.9%. Notably, during the recent third quarter hotels and service businesses emerged as key contributors, sustaining growth momentum amidst the ongoing recovery in the tourism sector. Looking ahead, the SCB Economic Intelligence Center (SCB EIC) predicts that the number of foreign tourists visiting Thailand will reach 29 million in 2023, with expectations of further acceleration to 37.7 million in 2024."

Recognizing its pivotal role, the hotel business in Thailand and globally is required to lead efforts in addressing global warming. Tourist behavior has shifted toward greater environmental responsibility and the Bank is committed to preparing the hotel industry for opportunities arising from tourism expansion. In response to the evolving landscape, Siam Commercial Bank is proactively organizing an "Andaman - Sustainable Green Hospitality" seminar. This initiative aims to equip hotel operators in the South with insights from sustainability and environmental experts. The Bank is ready to support the hotel industry in managing challenges related to climate change and capitalizing on business opportunities.

"The Bank stands prepared to assist the hotel business in navigating climate change impacts through seminars, knowledge sharing, and various courses. We are committed to reinforcing knowledge and best practices through collaboration with customers, experienced partners, and experts. This includes offering sustainable finance and financial consulting to aid customers in realizing their sustainability plans," concluded Mr. Rungsan.

Elevating the Tourist Experience through Sustainable Values

Ms. Nichapat Ratanapraphat, Managing Director of Lo-Carb Co., Ltd. and an expert in environmental and sustainable business solutions, stated, "In an era of global upheaval, the hotel industry finds itself at the intersection of environmental impact and operational challenges. Inescapably contributing to greenhouse gas emissions, hotels are confronted with the pressing issue of global warming, ushering in risks spanning investments, finances, and compliance with changing climate regulations.

"A strategic response lies in the proactive management of emission reduction initiatives, showcasing them through innovative marketing promotions. Hotels can redefine customer experiences by transparently communicating emissions data, allowing guests to make informed choices, such as booking rooms with disclosed greenhouse gas estimates. This transparency serves as a foundational step toward sustainability, echoed further in the adoption of eco-friendly practices like repurposing used vegetable oil into hotel amenities. Looking ahead, hotels have the potential to diversify their product offerings, not only within commercial formats but also by incorporating energy-efficient solutions. Collaborating with electric vehicle partners can be a noteworthy addition to accommodation packages, providing guests with an immersive experience centered around sustainability and energy conservation."

Ms. Nichapat outlined three primary advantages for the Thai hotel industry when transitioning to sustainability. Firstly, by curbing costs through the reduction of energy consumption, especially as the main contributors to greenhouse gas emissions stem from the energy sector. Consequently, hotels can immediately cut energy expenses, decrease waste disposal costs, and potentially boost revenue by selling recycled and upcycled products. Secondly, there is an opportunity to access green loans, as financial institutions increasingly favor businesses committed to sustainability, utilizing Environmental, Social, and Governance (ESG) scores to assess loan eligibility. This presents an additional avenue for hotel operators seeking financial support. Thirdly, embracing sustainability creates added valuefor hotel brands. In response to the growing trend of customer interest in sustainable tourism, many brands are marketing themselves with a sustainability focus. This is corroborated by research from Expedia, surveying 11,000 global travelers, revealing that 37% of customers appreciate hotels that offset their carbon emissions. Moreover, 74% acknowledge the perceived costliness of sustainable travel, and 51% express a willingness to pay more for eco-friendly accommodations.

Modern Hotels Recommended to Embrace Energy-Efficient Architectural Design

Ms. Nittha Pusachewa, Associate Director at SCG Building and Living Care Consulting Co., Ltd., a leading provider of building consulting services focused on sustainability and enhancing the quality of life, remarked that the surge in the construction of smart buildings has gained considerable traction, propelled by three pivotal factors: 1) Stringent regulations in foreign countries, emphasizing the imperative of enhancing building efficiency and fostering sustainable, eco-friendly development; 2) Shifts in work patterns following the COVID-19 outbreak, prompting heightened resident focus on health and establishing a new standard incorporating technology for enhanced well-being; and 3) Collaborative efforts among diverse organizations striving to achieve the ambitious goal of reducing greenhouse gas emissions to net zero.

Amid this prevailing trend, the construction of hotels necessitates consideration of building design aimed at curbing energy consumption. As of 2023, adherence to the Building Energy Code (BEC) is mandatory for new construction projects. This entails designing the building envelope with effective heat insulation. Priority is given to implementing energy-efficient electrical lighting systems, high-efficiency hot water production equipment, and ventilation and air conditioning systems designed to meet energy-saving criteria, given their substantial contribution to overall building energy usage. For hotels, known for their substantial energy consumption, this poses a formidable challenge, particularly due to the intricacies of their large air conditioning systems. However, there are avenues to assist hotel operators seeking capital for business improvements. The financial sector offers green finance loans and ESG financing tailored for environmentally conscious business operations, reflecting a commitment to social responsibility and robust corporate governance. These financial solutions play a crucial role in supporting businesses aiming to reduce carbon dioxide emissions or achieve net-zero greenhouse gas emissions, thereby contributing to global environmental sustainability.