The Value of “Green”

I. Identification

1. The issue

The issue in the current case study, in reference to the Meeting and Convention Industry, is an inquiry into how DMO’s can best address the economic, social and environmental needs of areas under their jurisdiction by playing an active role in the development and implementation of “Green” (Sustainability-based) initiatives.

As the “Information Revolution” continues to take its course, and globalization further ingrains itself in the cultures of the world, increasing numbers of destinations begin to compete for a relatively stable number of events. The underlying goal for construction of all convention facilities may be to bolster an area’s economy, but the lack of an accepted method for the appraisal of opportunity and lack of regulation on construction by U.S. government often creates a scenario where overdevelopment occurs and the generation of profit is highly unlikely. While it may be contrary to popular belief, Heyward Sanders, a professor of public administration at the University of Texas at San Antonio, stated, “Having more space doesn’t necessarily get you any more business.” (Batts, 2005) In fact, over fifty percent (51%-67%) of convention centers in the U.S. make no contribution to debt service and do not cover operating costs. (Beato & Darling, 2004) According to economic theory, “To remain healthy, economies must grow at an annual rate of 2 to 3 percent. (Sims, 1994a)
“It doesn’t take a degree in economics to see that indefinite economic expansion cannot happen on a planet with finite natural resources.” (Sims, 1994a)

Part of the reason overdevelopment is so common in the convention industry is that the current economic system, “measures quantity, not quality: It makes no distinctions about what kind of growth takes place,” and does not account for public-goods, such as air and water, at their full value since they do not actually “cost” anything to use. (Sims, 1994a) Unless the destruction of resources is taken into account in economic analysis, true sustainable endeavors will be doomed to fail because they do not consider important implications of doing business; some activities may not seem to have much of an effect at first, but can accumulate disastrous consequences in the long run.

Although some governments have taken an active role in their nation’s adoption of sustainable practices, the U.S. has not done so. In the absence of government regulation, it has increasingly become the role of the individual organization to pursue sustainable practices. However, issues of sustainability are not priorities within every organization. (Batts, 2005) If there are particularly sensitive resources in an area that demand protection, leaving decision making to individual firms offers little comfort for locals who are particularly concerned about a particular issue. Considering the circumstances, and that the sustainability of many areas can be greatly influenced by visitor actions, those with oversight of local development must make a priority of correcting market imbalances by weaving a web of communication and resources to be shared and utilized amongst major stakeholders, namely host area suppliers, potential visitors, the local people and the environment. As the designated agents of their respected areas, Destination Management Organizations (DMO’s), and other similarly functioning organizations, are the natural heirs for the opportunity to create development conditions congruent with local objectives and opportunities.

2. Description

Before it is possible to fully understand the intricate nature of DMO facilitation of sustainable endeavors, it is necessary to comprehend the background developments that have shaped the current economic landscape. According to Thomas Friedman of The New York Times, “Recent U.S. policy has placed a high priority on projecting military strength abroad,” but has, “Taken such little interest in America’s economic competitiveness at home- the underlying engine of our strength.” (Friedman, 2005) While the U.S. has historically been a world leader in efficiency and productivity, the lack of a long-term sustainable development initiative has created an opportunity for well-organized nations to implement sustainable measures, increase the competitiveness of local destinations and organizations, and eventually eat into America’s competitive advantage.

One example of government prioritization of sustainability occurred in Europe, where the government of the U.K. has given the independent Sustainable Development Commission, and organization chaired by Jonathon Poritt, “A new role as the watchdog on the performance of government in delivering sustainable development.” (Sustainable Strategy, 2005) Launched alongside a new “Framework for Sustainable Development across the UK,” the project involves the UK Government, administrations in Scotland and Wales, and the Northern Ireland Office. The primary objective of the program is to make the UK a “leader in the EU” by the year 2009. (Sustainable Strategy, 2005)

Such cooperation between regions is admirable, especially when considering the enormous rivalry in the convention industry, particularly within the United States, where convention centers, such as the one in Denver, are, “opening amid a national glut of meeting and exhibition space that has forced other cities to slash rental rates or operate half-empty. “Heywood Sanders, a public policy professor at the University of Texas at San Antonio, said, “Business is down. Everyone is scrambling in an overbuilt market for whatever modest scraps they can pick up.” (Juarez, 2004)

Richard Scharf, President and Chief Executive of the Denver Metro Convention and Visitors Bureau, remarked that, “We were having a lot of groups tell us they had outgrown our building. So, the question is, do you let that business go somewhere else, or do you grow?” In the late 1990’s, tourism officials argued that the only way to compete successfully for convention business is to expand, even if all competitors operate with a similar mindset. (Juarez, 2004) A manifestation of this problem is the fact that in 2003, the amount of exhibition space available increased by 6.6 percent while the space rented dropped 5.3 percent. (Juarez, 2004) Such development, if continued for a number of years, will greatly jeopardize the success of U.S. convention centers. The state of the San Jose Convention center is an excellent demonstration of this phenomenon, management was forced to, “Discount rents in the face of stiff competition from other convention centers and concert venues,” which has resulted in the request of an additional $760,000 subsidy from the government, which will bring the current year’s deficit to $4.4 million. (Kaplan, 2005) Knowledge of San Jose itself would not be so disconcerting if it was an isolated incident, but poor performance seems to be the status-quo for publicly held convention centers in the U.S., largely due to the shared misconception then when it comes to Conventions, “Bigger must always mean Better.” Mayor Street, of Philadelphia, has called upon his constituents to approve the construction of a $464 million expansion of the local convention center to bolster the city’s hotel and tourism industry. According to the Mayor, the expansion is a, “Proverbial no-brainer.” Since Boston and Washington D.C., Philadelphia’s primary competitors, are expanding their facilities, Mayor Street believes that there is only one way to handle competition, “you grow or die.” (Dilanian, 2002) Mr. Street, and those who share his mentality, are a significant threat to the sustainability and success of the U.S. convention industry if their ideas are allowed to continue to come to fruition without the discussion and research that is necessary to develop a successful, sustainable economy.

Although cooperation within the UK aims to develop the area as a whole, the best example of government leadership on sustainable practices occurs in Wales, where the Government of Wales act 1998, “required the Assembly to promote sustainable development in all of its work.” In contrast to other nations, where government considers sustainable development is an aspirational goal, “In Wales it is a legal duty that has to be delivered on.” (A different, 2004) The fact that the government is accountable to the public on matters of sustainability requires that sufficient funding and resources are allocated to ensure that objectives are accomplished. Significant benefits have befallen the Welsh nation as a result of their commitment to sustainability.

Cardiff, the Welch capital, celebrated its 100th Anniversary in 2005 by making a, “String of investments (to) ensure it is one of the UK’s destinations to watch.” Among the developments is an Ambassador program, which, “Encourages and supports ambassadors from local academic, business and professional institutions to put the city forward to organizers of conferences they attend.” In addition, the Cardiff Conference Bureau (CCB) provides those interested with, “A free venue selection and booking service, familiarization trips, delegate brochures and lists of local suppliers. Business comes predominantly from the UK, but the bureau is now targeting Europe and North America.” (Saunders, 2005) In essence, it appears that the Cardiff CCB serves as an ideal middle-ground between those within its territory and those wishing to visit on a temporary basis. Until one learns about Mark Walker, the head of the Cardiff Hoteliers Association, it seems as if Wales is exempt from the ills that plague the convention industry. Mr. Walker happens to a member of the “Bigger is Better” school of thought when he called for the development of a, “Modern purpose-built convention and exhibition center capable of holding up to 2,000 delegates.” He states, “Cardiff is suffering because we do not have one. We must aspire to rank alongside cities such ad Edinburgh, Glasgow, Newcastle and Manchester, where the convention centers attract high-profile international and UK conferences. (Saunders, 2005) Is the convention center, along with its related problems, really needed for economic sustainability, or is it another method to enhance local prestige?

Elsewhere, in Latin and South America, competition in the convention industry continues to heat up. Although countries throughout Central and South America are distinguishing themselves as growth centers, Mexico continues to dominate Latin America as the country with the strongest tradeshow industry. Although Mexico has nearly double the available exhibition space of its nearest rival, Brazil, it has been unable to keep pace as far as growth is concerned because numerous European, Canadian and American firms are interested in doing business there. Brazil is emerging as the financial capital of South America, which is demonstrated by the creation of Latin American Headquarters of numerous U.S. based companies, such as Microsoft and Cisco Systems, within the nation. Unlike many U.S. convention centers, Brazil is not only concerned with succeeding at the expense of its neighbors, thinking and planning take place on an international scale and with a long-term perspective. According to Mr. Andrea Prandini, a marketing manager in Sao Paolo, “The tradeshow business in Latin America and Brazil is growing and becoming more specialized.” (Crum, 2005) Interestingly enough, even though Mexico’s relationship with Brazil and other neighbors has evolved into an adversarial one in some ways, instead of, “holding back its fellow Latin American countries as a means of maintaining its competitive advantage, Mexico likes to think of itself as a big brother, who will help raise its up-and-coming siblings.” (Genoist, 2005) The competition in the region serves to create an ever-rising bar for success, but all the players know that they will need to work together to avoid stepping on each other’s toes and experience sustainable success.

In the U.S., examples of teamwork for success are not quite as prevalent. The Dallas Convention Center featured a significant expansion of over a million square feet in 2002, but simultaneous development has created over 3 million additional square feet of available space within a 3.5 hour drive. While most additions are in direct conflict with neighboring developments, Phillip Jones, President and CEO of the Dallas CVB, said of a nearby competitor, “Fort Worth’s expanded center has a very targeted niche market, so I think is complements some of the larger meetings we go after in Dallas.” (Hardin, 2005) In Mr. Jones’ opinion, “Dallas’ true competitors are San Diego, Atlanta, San Antonio and Washington,” not other regional cities like Houston, even though they are in direct competition on the national market. (Hardin, 2005) Although there is no formal alliance between Dallas and Fort Worth, the fact that they each cater to a unique audience sets the stage for a cooperative effort in the future where each organization can help the other succeed. Unfortunately, since there is no government sustainability mandate, stakeholders in these two cities may never unite and a formal agreement is far from a sure thing in future years. Only by specialization and capitalizing a market niche’s is it possible to achieve sustainable success within a region, otherwise each entity will continually fight for a larger slice of “Economic Pie,” instead of heading to the kitchen to bake a few more.

3. Related Cases

Luxury Hotels and Green Policies by Sophie Juan Du
The role of Destination Management Organization's (DMO) marketing activities in Hawaii by Mitsuhiro Takeda

4. Author and Date

Roman Groysman, April 2005

II. Legal Clusters

5. Discourse and Status:

Trending towards sustainability, no consensus. In progress.

There are a wide variety of motivating factors and alternatives available for organization considering adopting sustainable practices. A number of environmental certification programs have been created to provide guidelines for sustainable development, such as Green Globe 21 and LEED, but none have come to be generally accepted. In order for DMO’s to best foster the creation of sustainable conditions, they must cater to the needs of the various stakeholder groups involved. The three primary fields of responsibility are to local providers, meeting planners and their organizations, and education of society at large. A discussion of each section follows.

Local Suppliers

Local suppliers include, but are not limited to, convention centers, hotels and other methods of accommodation, food & beverage providers, etc. The Convention Industry Council has published a list of minimum best practices to follow, but rules are not legally enforceable and are subject to individual interpretation. The construction industry has a number of certification programs available to assist environmentally-conscious organizations. Although no system is universally accepted, the U.S. Green Building Council’s LEED program has generated significant results for those willing to commit to sustainable-construction.

In addition to construction, service providers can have a positive sustainable impact by utilizing resource-saving methods during the normal course of business. The Canadian Pacific hotel organization has created an “Eco-Meet” program to “minimize waste generated by meetings.” (Saltzman, 1999) “Eco-Service”, which is now routine in most CP Food and Beverage Departments, aims for the elimination of items whose use can be avoided, for example disposable coffee cups and individual containers of cereal, jam, sugar or milk. Planners are presented with the opportunity to utilize electronic billing, double-sided photocopying, and even biodegradable pens.” Guests are also given several resource-friendly options, such as reusing bed sheets. The second part of and “Eco-Meet” refers to “Eco-Cuisine,” which refers to the creation of, “ New, health-conscious menus which offer vegetarian dishes or smaller portions of animal protein supplemented by ample portions of locally grown, organic produce in season. “Eco-Cuisine” supports the local community and enriches the local flavor of an event by giving conference delegates, “A greater awareness of their (Conference) environment,” an appreciation of its uniqueness, and a greater insight into local preservation. (Saltzman, 1999)

Meeting Planners

Meeting planners are the second integral part of a successfully adopted sustainability program. Since planners are not always familiar with the areas they are working in, they may not be fully aware of the range of policy options available in any particular setting. Holly Kane, coordinator of Alaska’s Green Star Program (A partnership among the Anchorage Chamber of Commerce, the Department of Environmental Conservation and the Alaska Center for the Environment) explains the primary challenge of “Green” event planners to be overcoming the limits of a particular area’s infrastructure, especially recycling. Since every venue has different policies regarding recycling, “Our (meeting planning) emphasis has to be waste minimization.”(Sims, 1994b) To compensate for the variance between destinations, the creation of a checklist with minimum environmental standards is recommended to reflect organizational objectives and provide a clear understanding of expectations for all suppliers before a contract is agreed upon. (Sims, 1994b)

Ace Hardware is one organization that has dedicated itself to being “Green” at its large annual conventions. Joanne Shisler, assistant convention manager, explains, “In 1991, the first year the company recycled during its convention, it collected 27 tons of cardboard.” She says that, “It was a major feat to convince convention centers to recycle, partly because many cities’ infrastructures didn’t support it and partly because the amount of recyclables was so massive that it took specialized equipment, such as balers, to handle it all.” Today, there are numerous other resource-saving practices used at Ace annual meetings, including; the provision of biodegradable cleaning fluid, recycling shrink wrap into trash bags, donating left-over food to charities, and reusing certain items, such as grills and shelving units, at future events. (Kaeter, 1995)

Gail Fox, a planner with the Minnesota Department of Natural Resources, admits that her organization must take all bids offered because of its public nature, but prefers to do business with an environmentally-minded convention center because it “Feels good to…hold our meetings there.” Peter Allison, director of operations for Ecological Solutions, said, “I know any green hotels see a number of booking because of these programs.” He goes a step deeper to say that, “Once planners see what is possible in terms of holding a green meeting…, they feel like they can’t go back to the old way.” (Kaeter, 1995)

Mr. Allison elaborates, “Very few people prefer to pollute, but they aren’t aware of the opportunities available when they hold meetings. I know many green hotels see a number of bookings because of these programs. (Kaeter, 1995) Lou Cox, managing director of Venue West, a Vancouver-based meeting planning firm, estimates that nearly 40% of his clients desire a variety of environmental initiatives, such as reusable dishware, reusable plastic badge holders, or use of recycled paper. Besides efficiency, the “greening” of an event can also serve entertainment and educational value. Tracy Santos of Riser-Almeida Associates in San Francisco has put together an event in a Puerto Rican rainforest, including ecological games, music and educational products for participants. (Sims, 1994b) Whereas hotels are often able to save money by recycling, Stefan Depres, director of conferences as Canadian Pacific’s Chateau Lake Louise Property, says that, “From a [meeting] planners view, its costs more to be environmentally friendly.” The options are many and benefits significant, but it is not the role of the meeting planner to force sustainability onto organizations. “Clients are informed as to their options, but the ultimate aim of the planning group is client satisfaction, regardless of how many or which sustainability measures are in place. For example, it is difficult to convince people who prefer glossy stock for promotional materials to use recycled stock. We don’t demand anything.” (Saltzman, 1999) Meeting planners can implement environmental policies when prompted by their organization, but do not themselves have significant persona; impact upon every event they organize.

According to Ted Saunders, founder of Ecological Solutions, meeting planners play a critical role in getting “laggard facilities” (and organizations), those not proactively seeking sustainability, up to speed with the rest of the industry. According to Mr. Saunders, “Environmental issues should be integrated into every decision we make as citizens of the planet. If meeting planners ask for it, then hotels (or convention centers for that matter) will respond.” To quote an old saying, “Where there is a will, there is a way.” If organizations and meetings are committed to sustainability, they will be able to overcome or circumvent problems stemming from poor infrastructure or other issues which complicate the process of sustainability seeking. (Kaeter, 1995) Literature indicates that, “Visibility is key to the success of a planner’s environmental policy. It can start with a statement that promises corporate commitment to make environmental decisions whenever possible.” Having an organization-wide commitment to sustainability is the first step in the process of removing the road blocks to organizational success. (Saltzman, 1999) While certain practices take significantly more effort than others to implement, organizational support provides meeting planners with the motivation and means necessary to work through setbacks as they occur.

Despite the array or sustainable alternatives available, there is a common thread between all initiatives, “The idea is to use products that can be reused,” and conserve those which cannot. (Saltzman, 1999) Lou Cox, managing director of Venue West, a Vancouver based meeting planning company, offers several helpful suggestions:

o Ask people to order centerpieces of indigenous flowers grown by the local community or plants that can be replanted.
o Water is the resource of the future, so have water available at the back of the room instead of poured for every guest.
o Show your respect for the community by purchasing food and supplies locally.”
o Donate part of a conference’s proceeds, even a dime or nickel per delegate, back to a local environmental to show respect for its resources.

“Blue Green Meetings” is a, “multi-stakeholder initiative spearheaded by the Oceans Blue Foundation. Based in Vancouver and Seattle, the organization was founded in 1996 to preserve coastal environments through environmentally responsible tourism. Acting as an information resource for meeting hosts and planners interested in integrating sustainable practices into their core business practices, Blue Green Meetings was the first North American charity to create environmental “best-practices” for all sectors of the tourism industry. Details are available at http://www.bluegreenmeetings.com.

The “Green Meetings Report”, published by the Convention Industry Council, is another such source attempting to create guidelines for sustainable event production, but aims to create a “minimum best practices” for both meeting suppliers and planners. Made up of an eclectic array of individuals from the EPA, the Oceans Blue Foundation, the World Travel Organization, hotels, CVB’s and meeting planning organizations, guidelines were created for environmentally friendly events based upon two criteria, “The Economic Bottom Line,” and, “The Environmental Bottom Line,” which together spell out the motivation and means available for organizations looking to “Go Green.”For a complete listing of guidelines, go to www.conventionindustry.org.

Some Meeting Planning Guidelines: (Courtesy of Meeting Professionals International)
o Recycle printing cartridges
o Discourage the use of disposable cups, plates, and cutlery for meals and snacks.
o Discourage the use of non-renewable resources like paper
o Limit Handouts. Encourage speakers to put brochures in the back of the room
o Avoid or limit the use of paper clips
o Avoid non essential garnishes on food (like edible flowers)
o Stock salad bars with local, non imported produce to support the local economy. (helps reduces transportation and fuel expenses)
o Have Shuttle busses turn off their engines while waiting for delegates
o Reduce energy consumption while shutting lights in vacant meeting rooms.

Community Education
The third and final role that DMO’s must fill to yield maximum returns upon sustainable endeavors can be termed “Community Education.” (Saltzman, 1999) Coralie Mackie, the executive director of the non-profit Oceans Blue Foundation (www.oceansblue.com) said, “Sustaining the environment is all about teaching guests the ‘enviromanners’ to visit a city and leave with the least amount or environmental impact possible. In other words, a convention can only be as green as the delegates that attend; no matter how well planned a recycling program may be, if event attendees do not understand the importance of their actions (Or are simply disinterested in sustainability), it is highly unlikely they will act properly when it is time to make a decision that can have adverse affects upon a visited area. Since apathy is usually the direct result of ignorance, the only real way to cure ambivalent attitudes is to provide information that demonstrates the importance of sustainability and hope that “Common sense” will prevail. Much like event planners to clients, DMO’s and related tourism organizations can not force individuals to act or think in a particular manner. The only real way to prevent environmental damage by high-risk individuals is to proactively address their questions and concerns before they arrive in a destination. A variety of educational methods are available, ranging from providing information packets, to organizing lectures and excursions to environmentally sensitive areas, and sponsoring programs at local schools or recreation centers such as the YMCA. Although DMO’s are best equipped to handle education of the masses (due to their high degree of recognition, pool of resources and supply of technical expertise), it is the individual meeting planner who has the greatest opportunity for direct contact with attendees. For this reason, best practices suggest that communication between a meeting planner, the sponsoring organization, and meeting attendees thoroughly express any issues of particular importance to any event attendee; if expectations for behavior and goals for an event are well known and agreed upon, the chance of misconduct and resulting damages can be minimized.

Specific Examples

As far as the U.S. is concerned, Pittsburgh is among the premier examples of the successful implementation of sustainable initiatives. Featuring a $345 million facility, Pittsburgh is home to the first LEED certified “green” convention center in the country, which, simply put, means that the building has integrated elements of energy efficiency, natural lighting, and ventilation with non-toxic materials to create superior environmental and structural performance conditions. Management had two primary concerns when creating the Center, making it as environmentally friendly as possible while maximizing functionality and appeal to any organization in need of exhibition space and services. “The most obvious benefit is the reduction in operational costs that have been made possible through implementing ‘green’ technologies.” Robert Imperata, Pittsburgh CVB’s Vice-President, said, “The projected energy savings are at 30 to 40 percent. And with that kind of reduction in operating costs, the savings can be passed on to the consumer.” Not only are LEED buildings less expensive, they also provide heightened functionality.

Research indicates that environmentally-constructed Centers help groups achieve better success due to raised levels of natural light, which encourage product sales by creating a, “Friendlier, more open atmosphere, which puts people more in the mood to buy. The exhibitors are happy so the presenters are happy and the buyers are happy- everyone is benefiting.” (West, 2003) Not only has Pittsburgh been able to shed its reputation as a polluted industrial city, it has used its weakness as a building point and developed into a renowned leader in sustainability practices in the United States. Although the construction of “Green” buildings played a role in Pittsburgh’s transition, it is the mindset of continuous improvement in the city’s “efficiency and value-mindedness” offered to visiting organizations that’s set it apart from competitors.

Imperata explains, “The CVB has a great relationship with the local hospitality industry, which allows us to work hand-in-hand with the convention center, the hotels, and the city’s attractions to put together packages that are tailored to group size and location.” (West, 2003) In other words, the fact that the CVB is immersed in a network between local suppliers, organizations in the process of planning meetings, and the public as a whole means that those groups choosing Pittsburgh as a destination, while still likely to run into some road blocks, have a powerful ally on their side who can pull strings when necessary to ensure that clients’ needs are satisfied using any means available.

Another important case study in sustainable conference coordination takes place in Massachusetts, where Boston’s World Trade Center has entered into an agreement with the Massachusetts Convention Center Authority, operator of the newly opened Boston Convention and Exhibition Center, not to compete with one another and to coordinate marketing efforts for the common good. The agreement describes a process whereby each entity targets appropriately sized events for its respective facilities. One stipulation of the agreement is that BCEC must add WTC content to its web-site under a feature that offers information about other Boston facilities. “(The agreement) formalizes our already cooperative working relationship,” and that, “The WTC will be very convenient for shows at the BCEC that need additional space.” (Stark, 2005) John Drew, president of WTC’s parent, the Seaport Companies, believes that there are benefits not only to each partner within the agreement, but also for Boston’s Seaport District as a whole; “This gives us greater prominence to this newly developed area of Boston by bringing more business, more meetings and more shows to our venues. “ (Stark, 2005) Whether or not clustering of development contributes significantly to the Seaport District, the working relationship established by Pittsburgh’s CVB is a significantly positive one since it indicates location-specific commitment to sustainability and the satisfaction of the needs of organizations holding meetings in the city.

Despite the successes of the previous two examples, achieving true sustainability has proven elusive for many communities. Hampton and Virginia Beach are two communities that have been interested in expanding their convention centers- event though they are only separated by 20 miles. Despite the fact that they will inevitably be pitted against each other at times when vying for business, management of both facilities agree that they can successfully coexist, despite the fact that at least four other developments within a 350-mile radius have expanded or are soon planning to expand their convention centers. By establishing and agreement where each city will specialize in catering to events they are best prepared to (Virginia Beach will attract large events and Hampton will serve mostly fraternal, social and religious gatherings), the idea is that, “The buildings can complement one another and increasing interest in Hampton Roads as a destination,” and argument very similar to that offered in Boston. Sallie Grant-DiVenuti, the executive director of the Hampton CVB, said that although they may compete on some business, “The more we bring in from the outside and not cannibalize each other, the better off we are.” (Batts, 2005) While the alliance of two convention centers is a step in the right direction, the fact that development in other nearby cities continues to grow in an uncontrollable manner puts a sizable damper on the impact that the alliance may generate. If, however, the alliance between Hampton and Virginia Beach is just a prelude of what is to come, then it is a strong positive development. While most improvement in short-term convention center operations comes at the expense of another within the region or nation, the integration of other cities into a cooperative agreement and the subsequent coordination of marketing efforts to capitalize upon specific niche markets has the potential to actually attract not only more activity to the state, but also to each participating city by mobilizing and enabling previously inactive citizens to participate in newly-created programs designed specifically to cater to and energize a certain niche market. Instead of fighting price wars, cities entering cooperative agreements (Or at least their DMO’s) can focus their efforts on developing their unique “product” and accurately portraying it to the desired target market. However, the fact that there is no government regulation of sustainable practices and no single organization created to oversee regional competition indicates that the environment will only become increasingly competitive as each city continues to act in “its own best interests,” which inadvertently is the root cause of the oversupply issue which continues to plague the U.S. convention industry.

6. Forum and Scope

Since there is no global standard for the creation of “Green” meetings and sustainable development, the scope and forum of this current case study is virtually infinite, depending upon situation-specific circumstance. The suggested policy can involve the union of local, regional and national governments with affiliated organizations, NGO’s, event suppliers, meeting planners (and their organizations ) and the community at large to create policies which utilize available resources in such a manner as to produce maximum benefit while maintaining future resource availability. Although variables are numerous, it is the role of the DMO, whether it represents a single development or an entire nation, to weave and navigate the complicated web of policy formulation and implementation. Implications on each level are discussed.

International

The idea of competitiveness is at the center of international discussion. The fact that a number of nations around the world have government-sponsored sustainability programs means that the U.S. must react or face a loss of competitive advantage that it has enjoyed for years.

National
Within the United States, the most significant issues at a national level deal with the competition of major destination areas competing ferociously for a limited number of conventions.

Regional

Issues of regional scope include matters that concern the highly competitive struggle for dominance, which often ends in poor performance or an alliance such as that between the City of Hampton and Virginia Beach against other competitors.

Local

Local issues deal primarily with the jockeying for position within a single city or destination with several venues. Scenarios can result in a range of circumstances, ranging from cooperation, as in Boston, to hyper-competitive conditions where oversupply can only be addressed by a reduction in available meeting space.

Heyward Sanders, a professor of public administration at the University of Texas at San Antonio, states, “The difficulty comes when you have multiple centers in a metro area; there is a tendency for them to compete in the national market against one another. If that national market does not prove to be as rewarding as promised and anticipated, then they will begin to compete for more localized events.” (Batts, 2005) Put differently, various forums may apply to each situation, depending on specific conditions that play a significant role in a situation.

Decision Breadth/ Stakeholders
The stakeholders considered vary depending upon which nation and scale is used to analyze them, but for the most part include; local convention service/product providers, local/state/national governments, facilities such as convention centers and their management, local community, relevant NGO’s or government organizations delegated the responsibility of tending to an area’s (sustainable) convention, tourism or development agenda’s, the environment, meeting planners & their sponsoring organizations and the citizens of the world at large.

7. Legal Standing/Legal Regulatory Framework:

For the most part, ethical and social considerations are concerned. No legal requirements for cooperative action within the U.S. exist under the current regulatory framework, but communities and governing bodies reserve the right to implement any policies deemed critical to their agenda’s. In such cases, the decisions of destinations can be legally binding upon organization under their jurisdiction if a contract is signed or regulation is passed requiring compliance.

III. Geographic Clusters

8. Geographic Locations

a . Geographic Domain: Worldwide / Local Communities
b. Geographic Site: United States of America
c. Geographic Impact: Existing cases of cooperation usually have the effect of attracting more individuals (or simply new individuals) to a specific destination. Cooperation between nations (or cities for that matter) can help attain a better understanding of location-specific nuances and may result in fewer redundant development projects.

9. Sub-National Factors:

Significant sub-national factors affect the development of a DMO’s ability to contribute to sustainability. Competition, resource scarcity, and regional economic scenarios are variables which occur on a sub-national level and can have impact upon destination or national policy formulation.

10. Type of Habitat:

Although most convention centers are in urban areas, they are dispersed throughout the U.S., there is no single habitat that can be designated, other than destinations with convention facilities or other means of accommodating organized events.

IV. Macro/Environment Clusters/Tourism Policy Clusters

11. Type of Measure:

Collaborative Agreement and Effort

12. Direct v. Indirect Impacts:

Both depending on location and scale of analysis (national vs. single location)

13. Relation of Trade Measure to Environmental/Tourism Impact

a. Directly Related to Product: Yes, all tourism related industries will be affected by the creation of an organization responsible for implementing sustainable initiatives.
b. Indirectly Related to Product: Yes, land availability and usage will be affected. Sustainable measures may result in the re-prioritization of developers and alter the tourism products available in an area.
c. Not Related to Product: Yes, other industries will be affected by spillover of technology and competition for limited resources.
d. Related to Process: Yes, the culture of operating business will change from “Who can I get the best deal from” to “Who do I have to work with to create maximum value-added in the long run?”

14. Trade Product Identification/ Trade and Services:

All tourism related industries are affected at some level by integration of sustainable policies. Hotels, conventions, restaurants, hospitals, etc.

15. Economic Data:

Substantial information demonstrating the benefits of eco-friendly convention-related practices exist. The bottom line is that within 20 years the benefits of green design return over 10 times additional sots associated with building sustainability. Energy costs alone are cut by 25%-30% when an organization goes “green”. Productivity benefits are also achieved because lighting and ventilation are improved while toxic materials are removed from buildings, saving a difficult to measure amount in the form of lowered absenteeism and generally higher morale. (Kats, 2003) Sick Building Syndrome (SBS), a situation where building occupants, “Experience acute health and comfort effects that appear to be linked to time spent in a building, occurs much less frequently in “green buildings”, further contributing to reduced absenteeism. (Indoor Air, 1991).In addition, the conditions in green convention centers are significantly more conducive to promoting sales than other buildings, meaning they not only use fewer resources and cost less to operate, they actually increase the profits earned by those such as exhibitors who come to the convention to earn a living. (West, 2003) Another important economic consideration is the resulting spin-off business that occurs as a result of word-of-mouth advertising among satisfied meeting planners who confer concerning future site recommendations. (Sims, 1994b)

Urban Edge is developing a pioneering example of green building opportunities
in affordable housing. Through an MTC grant, the non-profit will install
63 kW of solar photovoltaics at the new Egleston Crossing development in
Jamaica Plain and Roxbury. This installation, in combination with multiple
energy efficiency measures, will reduce the project's electricity needs by 50%
(Kats, 2003)

16. Impact of Trade Restriction: Uncertain/High.

The only real restriction suggested will involve those providers and planners (organizations) that have not adopted sustainable practices; known harmful activities would no longer be tolerated (DMO’s would provide technical assistance during transitions towards sustainability). Otherwise, organizations following their own best interests will be permitted to act accordingly, so long as they do not needlessly infringe upon an area’s resources. Restricting implementation will perpetuate current conditions and will put many locations at risk of reaching a point of no return, where environmental damage and hyper-competitive conditions may have irreparable consequences for the convention industry.

17. Industry Sector:

Hospitality Development, Meetings and Conferences.

18. Exporters and Importers:

Service providers and Travelers (Event attendees, meeting planners and their sponsoring organizations), respectively.

V. Macro/Environment Clusters/Tourism Policy Clusters

20. Environmental Problem Type/Environmental Aspects:

Pollution, Organizational and Social Culture, Overuse of limited resources, Over-development.

21. Resource Impact and Effect: High – Conservation.

The creation of a body to facilitate sustainable development projects has the potential to make every hospitality-related business increasingly productive and profitable. If wide-scale implementation of conservation methods can be realized, the prospects for resource conservation are tremendous. Eco-Meet, the chain-wide initiative launched by Canadian Pacific’s Chateau Lake Louise to minimize the waste generated by meetings, says that eighty percent of planners incorporate eco-programming into their schedules. But the real coup for us comes when we get exhibitors to recycle their huge amounts of potential waste. “When Ace Hardware decided to “go green” for its Annual Convention, it recycled 27 tons of cardboard its first year.” Since then, the company has remade used shrink-wrap into garbage bags, began to use biodegradable cleaning fluid, and has retained numerous grills, exercise machines and shelving units. (Kaeter, 1995) In addition, energy costs have been decreased by over 30% at “green” convention centers. (Kats, 2003) Also, use of recycled materials such as paper, along with common-sense practices such as two-sided printing have saved practicing organizations thousands of dollars and save tons of garbage from packing full today’s landfills. The only limit on environmentally conscious resource preservation is the imagination, desire and ability of the meeting planning organization to remain abreast with current industry practices. (Salzman, 1999)

The Genzyme Corporation's recently completed office in
Cambridge is a world-class example of green building
construction, including advanced daylighting and thermal
technologies. In addition to a photovoltaic installation
funded by MTC, one of the most prominent features is a
combined heliostat and reflective panel system designed
to channel daylight deep into the 8-story building.
(Kats, 2003)

22. Urgency and Lifetime/Urgency and Policy Review:

Urgency is varied and greatly impacted by local conditions. If the myth of the “Expansion Panacea” is not put to rest in the near future, and unchecked expansion continues, widespread economic failure of convention centers within the U.S. may not be far away. However, the fact that all destinations are uniquely sensitive to policy implications (based upon resource availability) and that the Convention Industry often occurs in waves means that the exact urgency for sustainable measures within any particular destination area is very difficult, if not impossible, to determine (That is of course until it is too late and damage has already occurred) The importance of intelligent development will continue to increase for the indefinite future, as humans multiply and use up available resources, conservation will continue to grow in importance.

23. Substitutes/Alternative Policies:

The current case study does not point out a specific policy to follow, it is merely a framework for facilitating the exchange of information and sharing of resources with the intent of maximizing the benefits of conventions to host communities and visitors alike. Although DMO’s are best positioned to assist with the process of creating sustainable conferences, any designated organization with the technical expertise required and sufficient resources available will be able to carry out the desired objectives in a timely and proper manner.

VI. Other Factors

25. Culture Politics: Limited.

The only significant cultural battle presented by the case is between those who believe in a purely free-market economy and those who feel that government should assist with implementation of national priorities. Although the creation of a DMO capable of implementing sustainability policies usually requires some government assistance and/or funding, foregoing action will only continue the current flawed system, further contributing to overdevelopment and other problems.

A minor issue remains between those who value sustainability and those who feel the earths resources should be used as man sees fit. However, this argument is not valid since the financial and social benefits associated with sustainability practices further develop man’s ability to use the Earth’s resources in the long-run.

26. Trans-Boundary Issues:

Some areas may simply refuse to follow protocols if they are not congruent with local beliefs. The final result must create a method to develop uniformity in policy in the context of significant creative freedom allowing local customization of policy and objectives while promoting cooperation based upon common objectives.

27. Rights:

Only indirectly are rights affected. Theoretically, an individual has the right to do as they see fit with personal property. However, if sustainable policies are implemented, certain practices which may be destructive, although enjoyable to the individual, may not be permitted.

28. Relevant Literature

1. Author Unknown. Blue Green Meetings. Oceans Blue Foundation.
Retrieved April 11, 2005, from http://www.bluegreenmeetings.org/HostsAndPlanners/index.cfm

2. Author Unknown. (April 1991). Indoor Air Facts No. 4 (revised): Sick Building Syndrome (SBS). U.S. Environmental Protection Agency. Retrieved April 7, 2005, from http://www.epa.gov/cgi-bin/epaprintonly.cgi

3. Author Unknown. (Spring 2003). Leed Policy Manual. U.S. Green Building Council. Retrieved April 5, 2005, from http://www.usgbc.org

4. Author Unknown. (March 2005). Sustainable Strategy Launched by UK Government. Power UK, 133, 20.

5. Batts, Battino. (April 1, 2005). A Tale of Two Cities’ Convention Centers. Knight Ridder Tribune Business News, 1.

6. Beato, Paulina & Darling, Arthur. (April 2004) Should Public Budgets Finance Convention Centers? Inter-American Development Bank- Region 1.

7. Convention Industry Council. (April 6, 2004). Green Meetings Report. The Green Meetings Task Force. Retrieved April 11, 2005, from http://www.conventionindustry.org

8. Crum, Rachelle. (January 31, 2005). Brazil Gaining on Mexico.
Tradeshow Week, 35, 7-8.

9. Dilanian, Ken. (February 5, 2002) Philadelphia Mayor Calls Convention Center Plan ‘No-Brainer’. Knight Ridder Tribune Business News, 1.

10. Flynn, Andrew. (September 29, 2004). A Different Way of Living.
Western Mail and Echo Ltd., 12.

11. Friedman, Thomas. (April 15, 2005). Bush Disarms, Unilaterally. The New York Times. Retrieved April 15, 2005, from http://www.nyt.com

12. Genoist, Heidi. (January 31, 2005). Mexico Leads Latin America.
Tradeshow Week, 35, 6.

13. Hardin, Terri. (March 7, 2005). CVB Chief Feels Bookings Could, Uh, Improve. Meeting News, 29, 24.

14. Juarez, Macario Jr. (December 3, 2004). Newly Expanded Colorado Convention Center Opens Amid Increased Competition. Knight Ridder Tribune Business News, 1.

15. Kaeter, Margaret. (July 1995). Growing a Green Meeting. Training, 5-9.

16. Kaplan, Tracey. (February 9, 2005). S.J. Convention Center Still Bleeding. Knight Ridder Tribune Business News, 1.

17. Kats, Gregory. (2003) Green Building Costs and Financial Benefits. Massachusetts Technology Collaborative, 1-8

18. Saltzman, Toby. (July 1999). A Green Light for Meetings: How Far Can Environmentally-Conscious Planners Go to Plan Green Meetings?
Meetings & Incentive Travel, 28, 27.

19. Saunders, Dave. (February 2005) Beyond the Millennium. Conference and Incentive Travel,, 47-50.
20. Sims, Susanne. (December 1994a). Growing Globally. Successful Meetings, 12, 36

21. Sims, Susanne. (April 1994b). Making Progress. Successful Meetings, 43, 25.

22. Stark, Loree. (January 24, 2005). New Boston Center Inks Non-Compete Pact With World Trade Center. Meeting News,29, 12.

23. West, Elizabeth. (February 2003). In the Green. Successful Meetings, 52, 72