Sustainability in New Zealand Tourism Industry

This report analyzes the aspect of sustainability in the New Zealand Tourism industry. It highlights the sustainability goals and commitments of the New Zealand Tourism Committee and the sustainable practices of Grand Chancellor Hotel. The report emphasizes the importance of implementing sustainability initiatives in the tourism industry to contribute to the growth and sustainability of the country's environment.

DAM792: New Zealand Tourism Management
New Zealand Tourism Management

DAM792: New Zealand Tourism Management
EXECUTIVE SUMMARY
The scope of the report is to analyse the aspect related to sustainability in the New Zealand
Tourism industry. Sustainability in the current environment has become a crucial topic that is
important for a business to implement. The tourism industry can effectively help the community
in uplifting the sustainability aspects in the country’s environment. Moreover, the sustainability
of resources and nature will subsequently help in the growth of the industry. This paper
highlights the details of the sustainability goals and commitments of the New Zealand Tourism
Committee. The Grand Chancellor Hotel is an internationally renowned hotelier that operates in
New Zealand. As part of the tourism industry, their overall productivity and market growth are
aligned to the sustainability targets of New Zealand. As a recommendation, it is critical for the
hotel recognise the sustainability goals while giving importance on improvements with
organising social events, and conducting staff training to successfully complete the motive of
New Zealand Tourism Committee.
Keywords: Sustainability, New Zealand Tourism Industry, Sustainability Initiatives, Business
Commitments, Grand Chancellor Hotel

DAM792: New Zealand Tourism Management
Contents
EXECUTIVE SUMMARY.............................................................................................................1
1. Overview of Organization.......................................................................................................4
1.1 Name.................................................................................................................................4
1.2 Location............................................................................................................................4
1.3 Overview...........................................................................................................................4
1.4 Vision Statement...............................................................................................................5
1.5 Mission Statement.............................................................................................................6
1.6 Services Offered................................................................................................................6
2. Literature Review....................................................................................................................7
2.1 Concept of Sustainability..................................................................................................7
2.1.1 Environmental Pillar..................................................................................................7
2.1.2 Social Pillar................................................................................................................7
2.1.3 Economic Pillar.........................................................................................................8
2.2 Sustainable initiatives of the New Zealand Tourism Sustainability Commitment...........8
2.2.1 Economic Commitment.............................................................................................8
2.2.2 Visitor Commitment..................................................................................................9
2.2.3 Host Community Commitment..................................................................................9
2.2.4 Environmental Commitment.....................................................................................9
2.3 Critical Evaluation of Sustainability Approaches.............................................................9
2.4 Implementation of Sustainability in Business Practice...................................................10
2.4.1 Benefits....................................................................................................................10
2.4.2 Complications..........................................................................................................11
3. Sustainable practices of Grand Chancellor Hotel..................................................................11
3.1 Economic Commitment..................................................................................................11

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3.1.1 Sustainable Businesses............................................................................................11
3.1.2 Productivity..............................................................................................................12
3.2 Visitor Commitment.......................................................................................................12
3.2.1 Visitor Information..................................................................................................12
3.2.2 Visitor engagement..................................................................................................13
3.3 Host Community Commitment.......................................................................................13
3.3.1 Community Engagement.........................................................................................13
3.3.2 Quality Employment................................................................................................14
3.4 Environmental Commitment...........................................................................................14
3.4.1 Carbon Reduction....................................................................................................14
3.4.2 Education.................................................................................................................14
4. Conclusion.............................................................................................................................14
5. Recommendation...................................................................................................................15
6. References..............................................................................................................................18

DAM792: New Zealand Tourism Management
1. Overview of Organization
1.1 Name
Grand Chancellor Hotel Group, New Zealand
1.2 Location
New Zealand
 1 Hobson Street, Auckland
 147 The Terrace, Wellington
1.3 Overview
The Grand Hotel International owns and functions the centrally located hotels present in
Australia, Malaysia, China, New Zealand and Singapore. The organization provides attractive
accommodation and leisure services to customers through their hotel chains present in the global
market. In Australia and New Zealand, the group operates ten 4 to 4.5 star hotels that provide
highly satisfying services to the travellers in their target market. The organization provides
accommodation with event coordination and extensive conferencing services. The organization
is occupied with five venues that cater over 400 delegates. Furthermore, the organization has two
hotel branches in New Zealand naming the James Cook Hotel Grand Chancellor and the Hotel
Grand Chancellor Auckland City.
Figure 1: Hotel Grand Chancellor Auckland City

DAM792: New Zealand Tourism Management
Source: (Grand Chancellor Hotel, 2019)
Figure 2: James Cook Hotel Grand Chancellor
Source: (Grand Chancellor Hotel, 2019)
The Grand Chancellor hotel in New Zealand is successfully growing and increasing its
competence by satisfying the customers in the target market. The hotel group is initiating
sustainability activities in the external environment to manage the growth of the business and
take care of the environment. Additionally, they work responsibly towards the environment and
aims to make it sustainable. They are also committed in contributing towards the sustainable
future by preserving the natural resources and making it available to the stakeholders. The hotel
has started the Green Friendly initiative to act out and contribute to the sustainability of their
community. Such initiative of the organization conducts various activities for the whole
environment to secure its natural resources. The organization has performed a Waste Energy
Reduction initiative which gives programs that focus on recycling and water conservation.
1.4 Vision Statement
To expand the scope of business and develop by providing explicit leisure services to
travellers. The hotel aims to provide attractive offers to travellers and increase their level of
satisfaction as well.

DAM792: New Zealand Tourism Management
1.5 Mission Statement
To provide authentic, relaxing services to the visitors during their trip to New Zealand. The
hotel aims to provide premium services to people visiting the hotel.
1.6 Services Offered
 The hotel provides Lambton Rooms at the Wellington Hotel with superior room services.
 Daily Restaurant deals coupled with mid-winter Christmas Buffet and dining services are
also provided.
 The Auckland hotel provide studio suites to travellers with residency style convenience
as well.
 The Auckland hotel also provide bottomless brunch facility.
 Various other hospitality services like room cleaning, enquiry service, book cabs, hiring
travel guides etc. are provided by the company.
 Car Parking facility is also provided by the hotel.
 Conference room for business events and weddings.
Source: (Grand Chancellor Hotel, 2019)
Source: (Grand Chancellor Hotel, 2019)

DAM792: New Zealand Tourism Management
2. Literature Review
2.1 Concept of Sustainability
Figure 3: The Three Pillars of Sustainability
Source: (Thatcher, 2015)
Sustainability refers to the process under which people manage the changes in the
environment in a balanced way. It has become essential for the people to take care of the
environment to sustain the natural resources for future generations. Exploitation of resources
leads to damaging the nature and harassing the social, economic, as well as the environmental
aspects. The Three Pillars of Sustainability consists of the social, environmental, and economic
sustainability (Ko, Chan, & Wong, 2019). Sustainability in an organization is majorly defined as
gathering the needs of the present without compromising the ability of the future generation to
meet their needs.
2.1.1 Environmental Pillar
The Environmental Pillar is the most important sustainability aspect that an organization
and its people to partake in making immediate actions regarding biodiversity. Focusing on this
pillar helps the people to know how to use resources carefully and save them for the future
generations (Weiss, A., & Straub, 2018).
2.1.2 Social Pillar
The Social Pillar is another important aspect of sustainability that gives significance to
the activities that a sustainable business is performing with regards to its employees,
stakeholders, and the community in which the business operates.

DAM792: New Zealand Tourism Management
2.1.3 Economic Pillar
The Economic Pillar elaborates how a business should effectively operate its risk
management and governance activities in order to grow sustainably. The Three Pillars of
Sustainability successfully covers all the sustainability aspects that a business process must
follow. It is important for organizations to successfully attain all the three aspects in order to
achieve growth without harming the overall interest of the community (Razzaq, Hall, &Prayag,
2016).
2.2 Sustainable initiatives of the New Zealand Tourism Sustainability
Commitment
According to the New Zealand Tourism Sustainable Committee, acting responsibly by
using resources sustainably will help them in future. The committee looks at the long term
picture and organises activities for the betterment. The committee’s aim is to create a wider
tourism industry by managing the business, initiating innovative practices and appealing the
customers through their services in consideration of said sustainability aspects (Tsui, 2018). The
Tourism Sustainable Committee of New Zealand helps the organisations to drive the needed
changes to increase the satisfaction level of consumers and make a positive difference in the
environment. This committee helps the organisations in the tourism industry to act smartly in
direction of sustainability in such a way that resources are managed and profits are also achieved
(Buffa, Franch, & Rizio, 2018). Furthermore, the four key elements of sustainability are
discussed below:
2.2.1 Economic Commitment
Under the economic commitment, the tourism committee of New Zealand aims to deliver
prosperity among people of New Zealand through their sustainable business activities (New
Zealand Tourism, 2019). The community has aimed to increase the revenue by $41 million by
the end of 2025. They have started to increase the profitability in the environment by providing
more services at low rates. The have also started personalizing trips and earning more revenue
from it.

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2.2.2 Visitor Commitment
Under the visitor commitment, the committee aims to provide the best travel experience
to people worldwide. The committee focuses on increasing the satisfaction level of both
domestic and international visitors.
2.2.3 Host Community Commitment
Under the host community commitment, the community of New Zealand strongly
supports and gain benefits from the tourism organization operating in their communities. This
aspect suggests the ways in which the tourism business can share their responsibility towards the
community by providing those services and support as well.
2.2.4 Environmental Commitment
Under the environmental commitment, the committee aims to restore the biodiversity and
natural resources on earth for future generations and viably use it in the present (New Zealand
Tourism, 2019).
2.3 Critical Evaluation of Sustainability Approaches
Both the Three Pillars of Sustainability and the Sustainability Commitments by the New
Zealand Tourism management highlights their essence and their activities that uplift the nature
and the protection for the future generations. According to Ateljevic and Page (2017), it is
believed that the pillars of sustainability are three major segments where all other sustainability
activities by the committee are based.
The economic sustainability of New Zealand elaborates the business commitments for
creating a viable business in the industry and for initiating capital investments for increasing
their productivity. The activities of New Zealand Tourism Committee in regards to the economic
sustainability pillar are followed in such a way that productivity and profitability of the business
is achieved without making any adverse effect on the external environment. The economic
commitment of the community also comprises of same features in the business environment.
Additionally, the aspects of the Visitor Commitments are also fulfilled through the activities of
economic sustainability (Mason, 2015).
The Social pillar is about organisations present in today’s industry that should initiate
sustainable business activities and help the stakeholders achieve their objectives. The New

DAM792: New Zealand Tourism Management
Zealand Tourism committee in respect of this pillar aims to increase the employment
opportunities for the people and treat the visitors respectfully. Therefore, focusing on this pillar,
the community is aimed to increase the visitors experience by driving value through their
activities and listening to their queries (Saarinen, 2015).
Lastly, according to the environmental pillar, it is important for organisations to reduce the
carbon emissions, eliminate waste, and provide a beneficial impression on the planet. Moreover,
the committee aimed to contribute in the ecological restoration, waste management, carbon
reduction and education activities. The committee makes sure that the businesses engage the
visitors and communities to know about the importance of nature and protect it through their
activities (Chhabra, 2019).
Figure 5: Elements of Sustainability
Source: ( Wanamaker, 2018)
2.4 Implementation of Sustainability in Business Practice
2.4.1 Benefits
 Initially, it should be noted that it is crucial to implement the sustainability activities in
the tourism industry to save the nature and safely deliver it to the future generations. The
first benefit of implementing sustainable business practices in the organisational culture
is that it will attract more customers in the target market. Most visitors are aware that the

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health of the environment is depleting day by day, so they get attracted towards the
organisations that perform sustainable practices (Bohdanowicz, & Zientara, 2016). Thus,
it can be said that one of the benefit of sustainability approaches in external environment
is that it helps the hotels in attracting more visitors towards them.
 Another benefit of using sustainable business practices is that it can help the hotel in
becoming industry leader as well. Moreover, it also provides opportunity for the hotel to
increase their brand value and become industry leader (Cotterell, 2018).
2.4.2 Complications
 The biggest problem in implementing sustainable business activities in the external
environment is that it distracts the business from their goals. It is hard to implement
sustainability initiatives as it would require businesses and employees to exert extra
effort. Most people may have a hard time to adjust and adapt to new practices
(Prud’homme, & Raymond, 2016).
 Another complication for businesses to practice sustainable activities is about the
expenses for practicing one. In order to replace one natural resource with another
artificial product, the business would pay additional which they would take back from the
customers. Some businesses resort to a much cheaper alternative which are not
sustainable (Lee, Weaver, & Prebensen, 2017).
3. Sustainable practices of Grand Chancellor Hotel
The Grand Chancellor Hotel based on New Zealand is successfully working towards
achieving competitive advantage. The company is aiming to for higher productivity and growth
to increase the level of satisfaction of the customers in the target market. Below are the
sustainable practices of Grand Chancellor Hotel based on the elements of the New Zealand
Tourism Sustainability Commitment:
3.1 Economic Commitment
3.1.1 Sustainable Businesses
This segment of the economic commitment focuses on the long term financial planning
and productivity of the company. The business must implement activities in a way that the

DAM792: New Zealand Tourism Management
customer’s interests are increased and that the business does not incur any penalty from
undesirable operations (Grand Chancellor Hotel, 2019). The Grand Chancellor Hotel do not
currently have strong and effective measures for growing and increasing their long-term
profitability. Proper allocation of resources and efficient operations of the business processes
potentially increases its long term growth. Furthermore, the hotel should also analyse key
performance indicators and critical success factors that drives sustainable business actions in the
future (Cerutti, 2016).
3.1.2 Productivity
According to the New Zealand Tourism Committee, businesses must aim to innovate the
organisations in a way that effective strategies are implemented to eliminate the effects of
seasonality. The company can increase their levels of productivity by:
 Introducing discounts in the company’s product and service offerings will attract visitors
towards the organisation. Moreover, customers may feel valued whenever they
experience such discounts and may become a loyal customer to them. The rewards like
discounts and offers on next visit may also attract customers become repeat customers
because of their low pricing strategy especially in lean seasons (Grand Chancellor Hotel,
2019).
 Another way to improve productivity during seasonality is by increasing the advertising
and promotional activities of the company during the lean season. A customer will likely
come and avail the offerings of the hotel, especially if they are aware of their current and
special offerings for the season. Advertising and promotional strategies helps the hotel in
attracting more customers towards the business even in lean season (Moscardo &
Benckendorff, 2015).
3.2 Visitor Commitment
3.2.1 Visitor Information
The hotel industry is completely based on the satisfaction level of consumer in the target
market of businesses. High levels of customer satisfaction for the company reflect good
productivity outputs resulting to profitability. Hence, it is crucial for the hotels to adequately
make use of information shared by visitors to succeed in the target market.

DAM792: New Zealand Tourism Management
The Grand Chancellor Hotel efficiently uses the customer’s information in two ways:
 They offer the customers to book hotels from their official website. If the customer has
already used the official website once, then the website will directly insert information
and will not make the customers to fill it again. In this way, the preference of the
customer is also identified (Rather, & Sharma, 2016). Furthermore, the company
effectively makes use of visitor’s information to conduct various awareness programs
like WWF Earth Hour, Australia’s Biggest Morning Tea, etc. In this way, information is
utilized to increase the satisfaction levels of customers.
3.2.2 Visitor engagement
Under the visitor engagement, it is important for the organisation to educate the visitors
about the culture and behavioural expectations of New Zealand. The two branches of Grand
Chancellor Hotel in New Zealand do not perform the above mentioned activities to spread
awareness and educate people. Thus, it is recommended that the organisation should start
Cultural Awareness Campaigns in New Zealand. Secondly, the organization must align with
various famous organizations in New Zealand to promote the activities of business. At the same
time, this may potentially increase the interest of visitors in the organization as famous
companies have a large pool of loyal customers (dos Santos, Méxas, &Meiriño, 2017).
3.3 Host Community Commitment
3.3.1 Community Engagement
For the purpose of community engagement, it is important for the business to involve the
community in the activities of the company to attract more brick-to-mortar and website customer
traffic. Furthermore, the Grand Chancellor Hotel should organize various awareness campaigns
and programs to attract the interest of people towards the environment. They should conduct
activities like planting trees, marathon run, etc. to promote awareness about the business and the
environment. Secondly, the hotel should engage the people within the community by getting
feedback from them. This will help the community engage and participate in different hotel
activities and causes in rectifying the functions of hotel on the basis of suggestions (Melissen, et.
al., 2016).

DAM792: New Zealand Tourism Management
3.3.2 Quality Employment
This segment includes the process of supporting the workforce and uplifting their interest
in the environment so as to maintain adequate activities in the internal environment. For this
purpose, the Grand Chancellor Hotel is implementing various activities such as staff training and
development. Through this process, the business is educating the staff to treat the visitors
properly and at the same time increase the brand image of the organisation. In this way the Grand
Chancellor Hotel is focusing towards quality employment aspect. The organisation is also aiming
to create standardisation in the house keeping practices to increase the quality of their services
(Davidson, & Sahli, 2015).
3.4 Environmental Commitment
3.4.1 Carbon Reduction
Waste and energy reduction initiative and Green-friendly waste disposal programs are the
two examples of the ways in which the organization is aiming to eliminate the emission of
carbon in the industry. With the process of initiating green activities in the environment, the
Grand Chancellor Hotel is able to improve the environment conditions of their community.
3.4.2 Education
The hotel is educating people by conducting training for the employees and organising
several programs for the community. By organizing several programs and campaigns, the
organization gives training and experience new opportunities to their employees while educating
the community regarding the changes that they need in the environment (Hardy and Pearson,
2018).
4. Conclusion
Overall, this paper highlighted the background of sustainability through the Three Pillars
and New Zealand’s Sustainability goals and commitments. The information about the New
Zealand tourism committee elaborated that it aims to sustain the activities of the Grand
Chancellor Hotel by providing them guidelines about the Tourism industry’s sustainable
initiatives. Moreover, the commitments guide New Zealand tourism businesses in developing
business structure and operations in such a way that their focus is shifted towards sustainability

DAM792: New Zealand Tourism Management
and awareness in all aspects of the economic, environmental, visitor, and the host community.
There are some sustainable activities of Grand Chancellor Hotel that helps them grow and
increase their brand image and productivity in the market. However, complications such as the
difficulty to implement green practices and how costly it is for the company makes it a hindrance
to the sustainability of the company. That is why the sustainable practices of the hotel are
discussed on the basis of the four commitments so that it reflects the potential of the company to
improve its overall productivity and growth in the future. Therefore, sustainability is a crucial
aspect that is important for the business to follow in order the save the environment and would
still be viable for the future generations in the Tourism industry.
5. Recommendation
Below mentioned are the recommendations for the Grand Chancellor Hotel and other hotels
present in the New Zealand industry with the help of which the business can effectively sustain
in the target market:
 Economic Commitment: Investments
The economic commitment segment, the organization should mainly focus on developing
the productivity in the lean season. It important to attract people in the organization on
the regular basis, otherwise the business may decrease their profitability due to
seasonality. In addition, the organization should appropriately invest their amount in the
business itself. Investing in the organization itself will help the hotel to open more chains
in New Zealand market that will subsequently increase the brand reputation of the
company in the eyes of customers. Furthermore, the company must focus on innovating
new features in the activities of the business to attain competitive advantage. Sustainable
innovative practices will increase the efficiency of the activities in the company. Lastly,
all the hotels present in the New Zealand industry should come together with a single
motive to achieve the economic stability (Roberts, Hall, & Morag, 2017).
 Visitor Commitment: Visitor Information and Employee Training and Development
The organization should make use of visitor’s information in such a way that the interest
of the visitor is not harmed while the information is used in an adequate way. Visitor’s

DAM792: New Zealand Tourism Management
information is an important asset that a hotel can have and the management of the hotel
should adequately make use of information by delivering satisfaction to them (Reid,
Johnston, & Patiar, 2017).
Furthermore, the management may provide training and development activities for their
employees. In return, they are able to deliver satisfaction to the customers in the target
market. The organization should invest in the staff training process and they should also
create pipelines of new ideas so as to reach new goals. The hotel should develop new and
attractive features in the business process on a regular basis so as to give a reason to the
customers to stay for a longer period of time. Lastly, the management of hotel should also
develop a format that should measure the satisfaction level of the customers such as
company KPI’s (Sustainable Tourism, 2019).
 Host Community Commitment: Job Security and Growth Opportunities
The management of the hotel should connect with the community and provide several
benefits to them in the environment they are operating in. The company must be able to
provide employment to the locals in the community with corresponding job security so
there is no fear in losing their jobs. Furthermore, various benefits like gratuity, pension
funds, employee funds, etc. can be considered to be provided by the organization for the
employees so as to increase their level of satisfaction. The management should regularly
aim to train the employees with the changing environment so as to make them competent
to work in the diverse available situation. Under this case, the organization should initiate
the process of diversity in recruiting staff and ask for a regular feedback from them.
Lastly, the management should also provide various growth opportunities such as
promotions to motivate them (Jones, Hillier, & Comfort, 2017).
 Environmental Commitment:
The organization should focus on positively contributing for the community that will
definitely provide benefits to the hotel. The organization may initiate improvements in
the basic activities that may deliver benefits in long run. Furthermore, the organization
should train the employees to use the natural resources wisely and they should educate
the visitors regarding the same. The hotel should promote green practices such as water
conservation and waste management. Social media and door-to-door campaigns helps

DAM792: New Zealand Tourism Management
increase awareness for environmental concerns (Zorpas,Voukkali, & Pedreño, 2018).
Hence, by focusing on all these commitments, the Grand Chancellor Hotel is able to
develop sustainability activities according to the New Zealand Tourism Committee
requirements.

DAM792: New Zealand Tourism Management
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