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Tourism - Eco-Efficiency of Air Miles

27 March 2007

Tourism Industry Urged to Consider Eco-Efficiency of Air Miles

New Zealand needs to address the vulnerability of its tourism industry to global oil demand and consider strategies for protecting its more eco-efficient markets, according to a Lincoln University study of international air miles.

The report by Dr Suzanne Becken shows that New Zealand’s dependence on oil for tourism is large and increasing, and that the variation in eco-efficiency across the country’s main visitor markets is up to 300 per cent.

The study examined 10 indicators of oil intensity (total oil use per market; oil use for domestic air travel; oil use per tourist-day etc) for New Zealand’s top 10 international visitor markets.

Travel distances were converted into energy use using an estimated energy intensity of 2.5 MJ per passenger-kilometre (MJ/pkm) for domestic air travel and 1.75 MJ/pkm for international air travel. The study found that the travel activity, measured as travel sectors, differs substantially for New Zealand’s top 10 markets. Tourists from Germany and the United Kingdom travel the most sectors, whereas those from China travel the least. The number of travel sectors is directly related to the length of stay, with some exceptions. (Visitors from Singapore travel 7.1 sectors on average in 16 days, compared with the Chinese traveling 5.1 sectors in 24 days).

Australian visitors average 158kms sectors, compared with 214kms for Americans, even though they have a shorter stay. This suggests that Australians favour “slower travel”, possibly due to their relative proximity and the likelihood of repeat visits.

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Tourists from South Korea and Japan travel the largest distance by air, increasing their overall energy intensity.

The study compared energy intensity with economic activity (spending) to derive an overall measure of eco-efficiency, expressed as $/MJ. Overall the Chinese are the most eco-efficient visitors, spending $2.95 per MJ, followed by the Australians and visitors from Singapore. The least eco-efficient are Americans ($1.07/MJ), Germans ($1.00/MJ) and Canadians ($0.97/MJ)

Dr Becken says tourism destination managers should be concerned about oil for several reasons. “First, oil scarcity and a lack of alternative fuels for aviation will lead to higher prices and lower demand. Current tourism forecasts do not seem to take the challenge of oil availability into account and may be overly optimistic as a result. Studies on price-elasticity (the relationship between price and demand) show it is necessary to distinguish between air travel segments, such as business travel, long-haul, short-haul, and national and international travel.
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“Second, there is the risk that under a more extreme depletion forecast oil will only be available for essential and life-supporting activities. In this case it is unlikely that tourism will be considered as an oil allocation priority.

“Third, the combustion of fossil fuels has wide environmental impacts and raises security issues for countries that depend on importing oil from politically unstable areas.”

Given the importance of fossil fuels for tourism, it is surprising how little debate has occurred, says Dr Becken.

“A transition to less oil intensive tourism is inevitable. For destinations that rely totally on international air travel it might be wise to reconsider reinvesting in domestic tourism, and the development of fossil-free transport systems.”

About Tourism Research at Lincoln University

Tourism studies at Lincoln reflect the important social, cultural, environmental and commercial nature of this area. The Tourism Recreation Research and Education Centre (TRREC) involves a number of collaborators including the Tourism Industry Association, the Ministry of Tourism, Landcare Research, Beca Carter Hollings and Ferner Ltd., and the Tourism and Leisure Group. These projects include FoRST-funded research.

Staff members of TRREC have undertaken a number of consultancies for agencies including World Tourism Organisation (WTO), United Nations Development Programme (UNDP), and New Zealand Ministry of Foreign Affairs and Trade (NZ MFT).

ENDS

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