Cost Control

Managing Your Environmental Costs: How to cut your Energy, Water and Waste costs- Can you afford not to?

All tourism businesses currently pay energy, water and waste charges, all necessary for the day to day running of the business. However for many businesses these costs are now a significant overhead, and with prices only set to rise, this is a real area of concern. So what if you could reduce the amount you pay by implementing some no and low cost measures in your business.

Have a look at just some of the cost savings you too could make!

No Cost Measure- Water Management

If a 20 Lt/min hot tap is left running for 5 minutes every hour with no stopper in sink, and using LPG/Oil to heat the water with a typical 15 hour day, then the cost to the business is c. €7,700 per annum.  With a 50% reduction through awareness training a business can save € 3,850 at no cost, with an immediate payback.  (If hot tap runs for 11 min/hr the cost would be € 17,543- that the minimum wage for one employee!)

Low Cost Measure- Waste Management

To send waste to landfill costs up to € 250/tonne.  Recycling Costs are c. € 50/tonne, therefore every extra tonne of landfill waste costs a business € 200.  A typical hotel will send c. 100 tonnes to landfill per annum costing € 25,000 – A well waste managed hotel will send c. 20 tonnes to landfill – Saving € 20,000.  The cost is marginal and payback  is within a couple of weeks.

Low Cost Measure- Water/Waste

A busy 160 bedroom hotel provided branded bottled water for free to conference & banqueting guests and in executive guest rooms.  Water bottling equipment (leased) was installed and this reduced costs by c. €36,000 per annum plus reduced waste glass costs.  Payback was immediate as the equipment was leased.

Medium Cost Measure- Energy

A 5 Star Hotel installed an electricity sub-meter in 6 areas at a cost of € 15,000 (pre 2007).  A review of performance in the first week identified a single area that was using electricity when that area was not in use. The equipment in the area was taken off standby and due to this monitoring and control the hotel saved c. € 25,000 pa. Payback from just this one area was within 7 Months and the overall payback was c. 2/3 months.

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