Environmental Issues and their Impact on Resorts

Introduction

This essay analyzes how the legal decisions that have affected the environment have also impacted resorts. Environmental Laws and Rules help prevent resorts from having uncontrolled growth that may lead to harmful environmental impacts. These laws can help regulate the planning of any new resorts and the use of facilities and water treatment plants. Since environmental issues have come from all counties and industries they have been addressed by all levels, international, national, and local laws and policies.

Background

All around the world, there are major discussions about the impact human activity is having on the environment and how they are responsible for climate change. So many groups are strongly advocating for laws to protect the environment, which can have some impact on different industries including resorts. Humans have impacted the physical environment in many ways such as overpopulation, pollution, burning fossil fuels, and deforestation. The hospitality industry may not be among the industries that are considered the largest contributor to environmental issues around the world, they still play a part. For many people, anything that can be done to improve is a step in the right direction therefore any laws that help are important. The hospitality industry employs 10% of the population, therefore striving to be more environmentally conscious can have a major impact on the world (Kirk, 2016). It can help by not only reducing the negative impact on the environment but create awareness in the population. The main impact the hotel industry as a whole can have on the environment are things like CO2 and CFC emissions. Hotels can also have a large amount of energy, water, and food waste. An important factor to consider is how the industry disposes of its waste. The location of a hotel can also impact the environment because it can affect the ecology and natural resources surrounding it.

International Actions

Although some of the international movements and policies are focused on other industries such as oil and gas, every industry is impact by secondary and tertiary effects. Some international treaties that impact the environment and every industry are the Montreal Protocol of 1987 and Climate Change Convention of 1992. The Montreal Protocol focused on eliminating the production and consumption of products that were causing damage to the ozone layer. These ozone depleting substances could be found in refrigeration, fire suppression, and foam insulation so it affected the hospitality industry because they needed to take into account the need for new products that minimalized these effects which can have financial implications. Climate Change Convention of 1992 addressed the overall health of environment because many countries around the world all agreed to lower carbon dioxide emissions (EPA, 2020).

National Policies

The Clean Water Act of 1972 established a way of regulating discharges of pollutants into the waters of the United States. It also created a standard for the quality of surface waters and made it against the law to discharge any pollutant into waters without permission. This directly affects a resort because they must make sure to control where wastewater, sewage and other waste goes. They also have to consider that there are pesticides and fertilizers that may run off into the water from and cause contamination. Many of these policies and laws can have greater financial cost to the resorts therefore it is something that they need to be very conscious of. This is important legislation because unclean water can cause many different health problems which includes Gastrointestinal, Reproductive, and Neurological issues. There are inspections to ensure that these guidelines are met and when they aren’t violators can face either civil or criminal penalties especially if they are aware of the danger, they are causing the general public. This act was amended in 2018 to improve overall water infrastructure (EPA, 2020).

Clean Air Act is another federal law, but the difference is that it regulates air emissions. It limits the amount of emissions and makes sure overall Air quality is maintained. It contains guidelines for cars, airplanes and even noise pollution. Resorts can add more noise to the environment, so it is something to consider on how they impact the area they are in. Permits and violations are treated in a similar manner to the clean water act. This effects resorts because they need to monitor how they may be polluting the air and how to lower it in order to not get fined (EPA, 2020).

One important government mandate for the environment is the Reorganization Plan No. 3 of 1970. This plan was sent to congress by President Nixon and was the beginning of the Environmental Protection Agency which created to establish and enforce federal environmental protection laws (EPA, 2020).

There are also certain requirements hotels must meet before beginning construction to make sure they are not having a negative impact on the environment. Hotels and the tourists they attract can destroy the local environment and habitat of native animals. These requirements are established out by the National Environmental Policy Act and include detail statements on the following:

  1. The impact your action will have on the environment
  2. Negative impacts that can’t be avoided
  3. Alternatives to your proposal
  4. The relationship short-term uses and long-term productivity
  5. Are the any resources that would irreversible and irretrievable (EPA, 2020)

Recently more than twenty states sued the Trump administration for trying to decrease environmental regulations on infrastructure projects which included permits (Reuters,2020).

Legal Issues

Robertson v. Methow Valley Citizens Council, 490 U.S. 332- 1989

In this case a citizen’s council came together and claimed that a new proposed ski resort didn’t meet NEPA requirements before getting a permit. The district ruled in favor of Robertson while the appeal court reversed that decision. Ultimately the supreme court ruled that decision made by the original district court was correct. NEPA requirements did not state that the petitioner needed to include a worst-case analysis. They just need to make sure they detail how they are going to prevent or reduce negative environmental impacts. This shows that resorts will be held accountable to just the requirements stated and that they need to make sure to have accurate documentation.

Sierra Club v. Morton, 1972

The Defendant wanted to develop a piece of Mineral King Valley inside Sequoia National Forest into a Disney ski resort. The plaintiff sued stating that the resort would violate federal laws for the preservation of national forests. Although plaintiff originally received an injunction it was later appealed since the plaintiff lacked standing. The Sierra Club then amended their claim using the National Environmental Policy act to show that Disney would need to submit a report on how the presence of the resort would impact the surrounding area. They couldn’t show that the construction of the resort would affect them. This shows how important it is to have proof that there will be adverse effects in order for an environmental case to be successful. Although Sierra Club didn’t win the lawsuit, this ended in a positive because Disney backed out of the project after they saw the impact the resort would have. Awareness is also a good outcome for some advocacy group, just getting company’s and resorts to see negative environmental effects is a positive. This case helped set the prescient on how environmental cases would be handled.

National Cotton Council v. EPA 2009

This case had to do with the regulation of pesticides in bodies of water. For a long-time EPA allowed for pesticides to be put into the water without a permit and had the FIFRA monitored the use. The environmental interest group’s petitioned to have this corrected since this fell into the Clean Water Act while the pesticide industry wanted more leniency. The court ruled that the EPA’s Final Rule was not a reasonable interpretation of the Clean Water Act and made NPDES permits a requirement for pesticide disposal. This shows that no one is above the standards set by the Clean Water Act.

Massachusetts v. EPA, 549 U.S. 497, 2007

Similar to National Cotton Council v. EPA, groups such as environmental organization and state governments, brought an action against the EPA for not regulating the carbon dioxide emission for cars and trucks when it has such a negative effect on the environment. They felt it was the EPA’s duty to protect the environment from their effects. The EPA argued that they did not have the right to regulate this under the clean air act. The Supreme Court ruled that the EPA needed to prove that these gases do not affect the environment, or they needed to state the reasons they were not able to limit the pollution. This case showed that the government is responsible in helping create a better environment and that we must try to limit carbon dioxide emission which affects all industries since they all use some sort of transportation even if it’s just for delivery of supplies.

Foreign Laws

As seen by the different international agreements, many countries around the world also have a vested interest in the environment since it creates an impact on everyone and can affect their way of life. Countries like Kenya, Rwanda, Morocco, France, and Taiwan have bans on single use plastic. Penalties include things like being jailed for up to 4 years and being fined up to $40,000. Currently 127 countries around the world either have or are working toward plastic bans. Other cities in the world have taken it as far as to ban cars even if it’s just for one day a week since they have had such a large impact on pollution. Some countries even passed laws giving people access to environmental information from the government and allow them to challenge government decisions they feel violate environmental rights. The European Union has a ban on toxic pesticides while the US bans certain pesticides when they see a clear link between the use of that pesticides and health (Day Translations, 2019).

Recommendations

“In the United States alone, 43 million tourists consider themselves to be eco tourists (Alexander, 2002).” That means that 43 million people that bring in revenue are trying to travel in a way that doesn’t cause too much damage to the planet. Since this is such as large growing trend many companies have started to develop environmental sustainability strategies. That means that hospitality managers must try to be as eco-friendly and conscious as possible and be aware of the impact they are having on the environment since it is a growing global concern. There are companies that are finding ways to involve guests as well in their initiatives to do better by helping resorts waste less energy and water. That way guests feel like they are also making a difference. They must implement policies that help the environment or at least limit the damage. They must also be aware of any permits they require to do business or dispose of waste in order not to get fined or sued.

Not implementing environmental sustainability strategies can have a negative impact on a company. A lot of people know especially newer generations are very conscious about environmental issues so companies not showing to be environmentally conscious they could very well lose business. “There is now a clear and direct line from a company’s ESG performance to cost of capital, profitability, and share-price volatility (Norton, 2020).” This shows that companies with better ESG risk profiles are doing better than companies with low ones. ESG profiles consist of a company’s environmental, social, and governance factors. This shows that the general public cares if a company is thinking of factors other than just its own profit margins. Negative press is something companies want to avoid because at the end of the day reputation can have a huge impact on their bottom-line. It is important that we are all aware of the impact our actions can have and how we can help.

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