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Implementing carbon neutral

destination policies: issues from the
Seychelles
a b
Stefan Gössling & Kim Philip Schumacher
a
Linnaeus University School of Business and Economics , Kalmar,
Sweden
b
Department of Geography , University of Hildesheim ,
Hildesheim, Germany
Published online: 10 Sep 2009.

To cite this article: Stefan Gössling & Kim Philip Schumacher (2010) Implementing carbon neutral
destination policies: issues from the Seychelles, Journal of Sustainable Tourism, 18:3, 377-391, DOI:
10.1080/09669580903147944

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 Journal of Sustainable Tourism
Vol. 18, No. 3, April 2010, 377–391

Implementing carbon neutral destination policies: issues from the

Seychelles
Stefan Gösslinga∗ and Kim Philip Schumacherb
a
Linnaeus University School of Business and Economics, Kalmar, Sweden; b Department of
Geography, University of Hildesheim, Hildesheim, Germany
(Received 31 January 2009; final version received 14 June 2009)

It is now accepted that tourism is a significant contributor to global climate change,

especially through air travel’s high greenhouse gas emissions. This paper analyses the
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dilemmas facing tourism planning in many small island developing states and presents a
model approach toward overcoming those dilemmas by adapting carbon neutral tourism
policies. It researches the implementation issues facing carbon neutral tourism policies
on the Seychelles Islands: tourism to the islands is energy-intensive, and current plans to
increase tourist numbers will entail growing emissions of greenhouse gases. This paper
analyses tourism’s current levels of energy use and emissions, and explores ways to
reduce them. Based on a survey of tourists and industry representatives in the Seychelles,
it discusses options for tourism-dependent small island developing states to implement
and finance carbon neutrality, while outlining the complexities and limitations of such
an objective.
Keywords: carbon neutral destinations; climate change; mitigation; offsetting; sustain-
able tourism

Introduction
Tourism has been identified as an important contributor to greenhouse gas emissions
(GHG), accounting for a share of about 5% of global emissions of carbon dioxide (CO2 )
(UNWTO-UNEP-WMO, 2008). This share is considerably higher in countries that are either
important destinations and/or markets. Emissions from tourism can be particularly high in
small island developing states (SIDS) because of their high numbers of international tourist
arrivals in comparison to their resident population, their reliance on air travel and their
energy-intensive accommodation infrastructure. Given the predicted growth of tourism in
most countries, emissions from global tourism are expected to increase by 150% by 2035
compared to 2005, even when efficiencies through technological and managerial progress
are considered (UNWTO-UNEP-WMO, 2008).
The growth in emissions from this sector will consequently be in stark contrast to
global climate policy, with, for instance, the European Union (EU) envisaging emission
reductions of −50% to −80% by 2050, compared to 1990. Any reduction in national
emissions should also affect tourism, as there is growing evidence that no additional
growth in emissions can be accommodated if post-Kyoto and regional goals, such as the
EU’s 2◦ C maximum warming goal by 2100, are to be taken seriously (Anderson & Bows,
2008). Aviation, in particular, is increasingly seen as a threat to climate stabilization goals

∗
Corresponding author. Email: [email protected]
ISSN 0966-9582 print / ISSN 1747-7646 online
C 2010 Taylor & Francis

DOI: 10.1080/09669580903147944
http://www.informaworld.com
 378 S. Gössling and K.P. Schumacher

(Bows & Anderson, 2009), and aviation will, in the EU, be included in the Emission
Trading Scheme (EU ETS) from 2012 onwards. Given limited options to reduce technically
or otherwise emissions from aviation, restructuring toward a low-carbon global economy
may affect the aviation-dependent tourism systems in SIDS and, in particular, those
dependent on source markets in the EU (Gössling, Peeters, & Scott, 2008).
In the light of these developments, it is clear that SIDS with a large and growing
dependency on tourism face a dilemma, as emissions from their tourism systems will at best
remain constant in growth-oriented scenarios, while their images as tropical nature paradises
will conflict with the notion of tourism as being a significant and growing contributor to
climate change. Moreover, these countries, with often-peripheral locations in the world
economy, are vulnerable to global climate change policy as well as increasing fuel prices
for transport. In this situation, an increasing number of destinations, including Norway,
Costa Rica, New Zealand, Sri Lanka, Scotland and, most recently, the Maldives, have
voiced ambitions to become “carbon neutral”, although few seem engaged in a serious
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planning and restructuring process to achieve that status (Gössling, 2009). That lack of
planning may be due to political fears, lack of expertise and uncertainty regarding the costs
of achieving such an objective.
In early 2007, the Seychelles considered options to contribute to climate change miti-
gation while maintaining their tourism system, with the ultimate goal of becoming a carbon
neutral destination. In considering this challenge, this paper seeks to assess the feasibility
of implementing a carbon neutral destination policy for the Seychelles, following the con-
ceptual framework outlined in Gössling (2009). More specifically, this paper assesses (1)
the energy intensity of the Seychelles’ tourism system, (2) the potential for decarboniza-
tion, i.e. energy-efficiency measures and the use of renewable energy and (3) the financing
of offsetting those emissions that cannot be avoided. With regard to the last aspect, the
perspectives of tourists and accommodation managers are being presented.

Tourism and tourism-related emissions in the Seychelles

The Republic of Seychelles is made up of 115 granitic and coral islands in the Indian
Ocean, 1600 km. east of Kenya. It has a total area of 451 km2 with a population of 82,000
people. The Seychelles became an independent country within the British Commonwealth
in 1976. Tourist arrivals in the Seychelles have grown steadily since the opening of the
country’s international airport in 1971, reaching 47,280 in 1982 and peaking at 140,627 in
2006 (Gössling & Hörstmeier, 2003; National Statistics Bureau, 2007). Tourism is heavily
dependent on European markets, with the four most important markets (France, Italy,
Germany, United Kingdom) accounting for 61% of all arrivals in 2006 (National Statistics
Bureau, 2007). The vast majority of tourists arrive by air (more than 97%). There is a
heavy focus on obtaining new (foreign) investments, which will add capacity to the islands’
25 large and 84 small hotels as well as 54 self-catering accommodation establishments
(National Statistics Bureau, 2007). Table 1 shows that tourism is of central importance in
the Seychelles, accounting for 21% of the GDP, with high per tourist per stay expenditure
of €2000 (spending within the country, i.e. excluding international transport).
With regard to emissions, including those from transport, accommodation and activities,
tourism in SIDS is often highly energy-intensive, in spite of considerable differences.
As shown in Table 2 for a sample of island states, there may be a factor of three in
differences between average weighted emissions per international tourist arrival (air travel
only), ranging between 635 kg CO2 (Jamaica) and 1873 kg CO2 (Seychelles) per tourist.
In the Seychelles, emissions from tourist air travel alone amounted to more than 241,000 t
 Journal of Sustainable Tourism 379

Table 1. Statistics for Seychelles.

GDP Tourism expenditure Tourism

(billion International in the country Expenditure expenditure
Land area Population €, PPP, tourist arrivals (million per tourist (€, as proportion
(km2 ) (in 2007) 2007) (2005) €, in 2005) in 2005) of GDP (2005)
455 82,000 1.061 128,654 222 1726 About 21%

Source: Central Intelligence Agency, 2008; UNWTO, 2007.

Table 2. Air travel emissions characteristics, 2005.

Av. weighted emissions per International tourist Total emissions

Country tourist (return flight; kg CO2 )a arrivals (2005) air (1000 t CO2 )
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Anguilla 750 62,084 47

Bonaire 1302 62,550 81
Comoros 1734 17,603∗ 31
Cuba 1344 2,319,334 3117
Jamaica 635 1,478,663 939
Madagascar 1829 277,422 507
Saint Lucia 1076 317,939 342
Samoa 658 101,807 67
Seychelles 1873 128,654 241
Sri Lanka 1327 549,309 729
a Calculationsof emissions are based on the main markets, using a main airport to main airport approach (in the
United States: New York, Canada: Toronto and Australia: Brisbane); ∗ 2004.
Source: Adapted from Gössling et al., 2008, based on UNWTO, 2007.

CO2 in 2005 (return flights). Note that in the context of carbon neutral destinations, these
emissions are “allocated” to the Seychelles, based on the notion that their entire tourism
system needs to become carbon neutral. A more detailed discussion of allocation principles
and system boundaries can be found in Gössling (2009).
There is no consistent dataset on emissions from accommodation (including food) and
activities in the Seychelles – the other two sectors in a tourism emissions inventory –
and some assumptions have to be made for their assessment. With regard to accommoda-
tion, energy use will usually be highest in upscale hotels, which typically have their own
electricity-generating plants because of capacity and reliability problems with the public
electricity supply. Very detailed information provided by one luxurious resort hotel (June
2007) indicates that power generation consumes 52 l of diesel per room per day, or, at a
conversion factor of 2.6 (www.carbontrust.co.uk), creates about 135 kg CO2 per room per
day, amounting to a total fuel burn of 4500 l (11.7 t CO2 ) per day for the resort’s 87 rooms.
Other hotels report equally high fuel use levels. The maximum total fuel use found was
6500 l per day, translating into a statistical average of about 130 kg CO2 per room per
day. Including an average occupancy rate of 70% in the calculation (information provided
by management) and assuming an average of two tourists per room, per capita per day
emissions would be in the order of 93 kg CO2 per hotel. Given an average length of stay of
9.7 days in 2005 (8.7 nights; National Statistics Bureau, 2007), upscale hotels would cause
emissions of about 800 kg CO2 per tourist per stay. While upscale accommodation with
their own power generation regularly entails high energy usage (cf. UNWTO-UNEP-WMO,
2008), energy consumption is considerably lower in guesthouses connected to the public
 380 S. Gössling and K.P. Schumacher

grid because their energy consumption is lower and electricity is produced more efficiently.
Unfortunately, no detailed information on electricity usage in guesthouses could be obtained
due to consistent difficulties of guesthouse owners unable to quantify consumption.
Table 3 provides an estimate of emissions from accommodation. The National Statistics
Bureau (2008) distinguishes hotels and self-catering establishments, as well as guesthouses
and private houses. Emissions per bed per night for hotels and self-catering as a mixed
category are assumed to be half of those in upscale hotels, i.e. 50 kg CO2 per person
per night, an estimate that is closer to values reported in United Nations World Tourism
Organization (UNWTO), United Nations Environment Programme (UNEP) and World
Meteorological Organization (WMO) (2008). For small guesthouses and private houses,
based on general data given in UNWTO-UNEP-WMO report (2008), an estimate of 10 kg
CO2 per person per night is made. In total, emissions from accommodation account for
34,210 t CO2 (see Table 3).
Activities are difficult to assess, but may often be energy-intensive, including visits to
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other islands by boat, car rental, diving or scenic flights. As no data is available for activities,
an average of 50 kg per tourist are assumed here for the entire length of stay, based on
UNWTO-UNEP-WMO values (2008), and including local transport. In 2005, 128,654
tourists would have caused emissions of 6433 t CO2 . Table 4 summarizes emissions from
tourism by subsector.
According to this estimate, emissions from tourism would have totaled 281,640 t CO2
in 2005, more than 85% of this being the result of air travel. On average, per tourist, this
amounts to 2.2 t or 3.4 t CO2 per Seychelles’ resident. However, the focus on CO2 would be
misleading, as this ignores the contribution made to global warming (radiative forcing) by
GHGs other than CO2 resulting from aviation. For various reasons, including the varying
lifetimes of different greenhouse gases, the respective contributions to global warming
made by CO2 and other GHGs are difficult to compare, and to date there is no consensus
on an acceptable methodology for this in the context of carbon neutral destinations and
offsetting (for discussion, see Lee, 2009; Peeters & Williams, 2009). In order not to ignore
the radiative forcing caused by these GHGs, it has been suggested, within the theoretical

Table 3. Distribution of rooms by hotel class and emissions, 2005.

Hotel class Bed nights Emissions per bed night (kg CO2 ) Total (t CO2 )
Hotels and self-catering 650,000 50 32,500
Guesthouses and private houses 171,000 10 1710
Total 822,000 — 34,210

Source: National Statistics Bureau, 2008, authors’ assumptions.

Table 4. Overview of emissions from tourism in Seychelles.

Total emissions Average emissions per tourist

Sector (t CO2 ) per stay (kg CO2 ) %
Transport to/from Seychelles 241,000 1873 85.6
Accommodation 34,210 265 12.1
Activities (including local transport) 6430 50 2.3
Total 281,640 2188 100
 Journal of Sustainable Tourism 381

framework of carbon neutrality in tourism, to multiply CO2 emissions by a factor of 2 to

give an indication of their warming effect (cf. Gössling, 2009).
For a fully comprehensive review of emissions from the Seychelles’ tourist system,
indirect energy use should also be considered, with, for instance, the construction of hotels
demanding the long-haul transport of materials and food, as well as workers from Asia in the
absence of a local workforce from the island’s limited population. At the time of fieldwork
in June 2007, 1000 workers (Indians, Pakistanis, Chinese and Koreans) reportedly worked
at the construction site of a new large hotel (interview, hotel manager, June 2007). However,
note that it is unclear whether these workers have stayed for less than a year and might,
therefore, be accounted for as tourists, i.e. already be included in the above calculations.
The energy embedded in various items used in hotels – from furniture to computers –
should also be considered, as well as the energy needed to build cars, boats or any other
product or service used in tourism. For these indirect emissions, UNWTO-UNEP-WMO
report (2008) suggests a factor of 1.15, though excluding aircraft, for which indirect energy
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use is negligible in comparison to fuel usage. Overall, emissions from the Seychelles’
tourism system would equal to about 0.53 Mt of CO2 in 20051 . Note that a more detailed
analysis would be warranted, also to provide a better basis for the restructuring of the
tourism system, but this is beyond the scope of this paper. Values provided should be seen
as approximations.

Reducing GHG emissions from tourism: options

In order to move toward carbon neutrality there should be, after a detailed accounting of
emissions, a review of options for reducing energy use and restructuring energy systems
toward low-carbon sources. Only emissions that cannot be avoided should be offset. This,
however, presupposes consistent perspectives on the economic feasibility of restructuring
toward reductions. For instance, setting up solar panels for water heating has amortization
horizons of two years in the tropics (UNWTO-UNEP-WMO, 2008), but observational
evidence suggests that in the Seychelles, solar heating is, with few exceptions, only used
by a share of smaller accommodation establishments. Another difficulty is the volatility of
oil prices. Accommodation establishments in the Seychelles may consume some 86,460
barrels of oil annually2 , which at a world market price of $55–140 per barrel (observed
oil price volatility June–December 2008) entails costs somewhere between $4.75 and
$12 million (note that the price of refined oil products such as jet fuel is even higher).
Thus, the economics of restructuring energy systems depend to a considerable degree on
fuel prices.
In increasing energy efficiency, measures that save emissions at the lowest price should
be carried out first. From the previous sections, it is clear that aviation is the most relevant
source of emissions, and fleet renewal may consequently yield the most substantial emission
reductions in the short-term future. This may be costly, however, and few airlines appear to
be in the position financially to engage in fleet renewal. Alternatively, less costly approaches
may include a marketing focus on developing closer source markets to reduce average travel
distances or a focus on tourist groups willing to spend more time or financial resources in the
Seychelles, both measures are toward increasing eco-efficiency (cf. Dubois & Ceron 2009;
Peeters, Williams, & de Haan, 2009). However, such smart-carbon concepts have never been
carried out in practice, and it is difficult to say what results they would yield. A comparably
easy target for emission savings are hotels, where 10–15% of energy consumption can be
reduced by simple, behavior-related measures (Paulina Bohdanowicz, Leeds Metropolitan
University, personal communication, January 2009). Of the remaining hotel energy demand,
 382 S. Gössling and K.P. Schumacher

15–20% can be provided by solar thermal (Paulina Bohdanowicz, Leeds Metropolitan

University, personal communication, January 2009). A conservative assumption would be
that 20% of fossil fuel usage could be avoided by behavioral change and low-cost renewable
energy infrastructure.
Table 5 shows the potential to reduce emissions in the transport, accommodation and
activity sectors for two 2020 tourism-development scenarios, i.e. S1, “constant arrivals”
and S2, “200,000 arrivals”, the latter corresponding to the government’s proposed “cap” on
tourist numbers (Seychelles Tourism Board, 2007). These scenarios capture a possible range
in emissions development up to 2020. With regard to transport to/from the Seychelles, a
reduction in emissions by 1.5% per year up to 2020 is assumed, corresponding to observed
efficiency trends in global aviation (UNWTO-UNEP-WMO, 2008). This includes aviation
traffic management, technical improvements and other options. It may in reality over- or
underestimate emissions, depending on the number of older aircraft replaced by airlines
serving the Seychelles as well as the airlines’ overall carbon management under various
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policy scenarios. With such annual efficiency gains, emissions from transport would decline
to 192,115 t CO2 by 2020 in scenario S1 (−20%), and increase to 298,653 t CO2 in scenario
S2 (+24%). This illustrates the importance of growth in tourist arrival numbers in the
development of absolute emissions, as per tourist transport emissions would decline to 1.49
t CO2 for transport to/from the islands in both scenarios.
With regard to accommodation, it is estimated that energy-efficiency measures (be-
havioral and low-cost) could yield reductions of 20%, with the economic use of other
renewable energy sources (wind, biogas, photovoltaic; investment horizon being 10 years)
replacing another 25% of the remaining energy usage by 2020, i.e. total reductions of 40%
in scenario 1. Scenario 2 is more difficult to assess because the low occupancy rate in the
Islands even during high season (cf. National Statistics Bureau, 2007) would make it pos-
sible to accommodate more tourists without any necessity of building more infrastructure
– in such a scenario, energy use in accommodation would not increase proportionally to
tourist numbers. For scenario 2, it is assumed that accommodation-related emissions per
tourist would decline by 50% up to 2020. Despite tourist arrival growth, emissions from
accommodation would then decline by −7% in the S2 scenario compared to 2005. Note that
none of these scenarios considers changes in average length of stay or in the composition of

Table 5. Tourism emission development by sector for two scenarios 2005–2020.

Total emissions Emissions Emission reduction Adjusted emissions

Sector in 2005 (t CO2 ) 2020 (t CO2 ) by 2020 2020 (t CO2 )a
Transport to/from 241,000 S1: 192,115 S1: −20% S1: 384,230
Seychelles
S2: 298,653 S2: +24% S2: 597,306
Accommodation 34,210 S1: 20,526 S1: −40% S1: 23,605
S2: 31,910 S2: −7% S2: 36,697
Activities (including local 6430 S1: 6430 S1: 0% S1: 7395
transport)
S2: 10,000 S2: +55% S2: 11,500
Total 281,640 S1: 219,071 S1: −22% S1: 415,230
S2: 340,563 S2: +21% S2: 645,503
a toreflect the contribution to global warming made by greenhouse gases other than CO2 , emissions of CO2 from
aviation are multiplied with a factor of 2. Emissions from accommodation and activities are multiplied with a
factor of 1.15 to account for indirect energy use.
 Journal of Sustainable Tourism 383

hotel standards used, which might be important, as new (upscale) hotels are usually more
energy-intensive.
The potential for energy reductions in activities is difficult to assess due to the scattered
character of available information. Generally, it is assumed that activities will become
slightly more energy-intensive every year due to a growing interest in “powered” activities
(UNWTO-UNEP-WMO, 2008). In this paper, it is assumed that energy-efficiency gains
correspond to growth in energy intensity, leading to zero growth/decline in emissions in the
scenario S1 and growth in emissions by 55% in scenario S2. Overall, the constant arrivals
scenario would lead to emission reductions of −22%, while the 200,000 arrivals scenario
would lead to growth in emissions of 21%. Despite efficiency gains, overall emissions from
tourism would thus substantially increase if arrival numbers continue to grow (see Table 5).
The relative contribution made by each sector to emissions is the same in both scenarios,
with air travel becoming slightly more important by 2020. Note that absolute emissions (in
tons of CO2 ) need to be adjusted for the contribution to radiative forcing made by GHGs
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other than CO2 and indirect emissions made by accommodation and activities, which is
given in the last column of Table 5.

Perspectives on financing carbon neutrality

This section takes forward the discussion from the technical and managerial questions
discussed above to the questions that surround the financing of carbon neutral policies.
Results are based on a survey of perspectives on carbon neutral destinations of both
accommodation managers and tourists.

Method
Due to the scattered character of accommodation establishments over many islands, a
convenience sample of accommodation managers and one marketing assistant, comprising
13 guesthouses and hotels of various sizes and standards (four to 105 rooms, zero to
five-star), was interviewed in June 2007. Interviews were semi-structured and consisted
of three sections, each of which was introduced by a general question: (1) Where do you
see the Seychelles in 10 years? (2) Is climate change an issue? (3) Should the Seychelles
become a carbon neutral destination? The last question also included a definition of the
concept. Common to all questions was their broad character, which allowed managers
to dwell freely on their opinions and expectations. Additional questions were introduced
whenever it became necessary to refocus the interview. Note that with regard to energy
usage (covered through additional questions in above-mentioned questions (2) and (3)),
respondents focused on energy provision for hotels, i.e. not energy use for tourist transport,
food imports or the mobility of staff. Interviews lasted between 15 minutes and one hour;
interviews in large five-star hotels generally lasted longer due to more differentiated views
of managers of these establishments.
Qualitative interviews with managers were complemented with a quantitative sample
of tourist interviews to gain an understanding of leisure tourists’ perceptions of carbon
neutrality. In all 303 interviews were carried out at Victoria International Airport, Mahé,
Seychelles, based on self-administered questionnaires in three languages (English, French
and German) in June 2007. International leisure tourists were approached in the departure
hall. Of the tourists approached, a share of mostly southern European tourists did not
speak English, French or German, or declined participation. It is estimated that the overall
rejection rate was in the order of 10%.
 384 S. Gössling and K.P. Schumacher

The questionnaire addressed various issues regarding air travel patterns, climate change
and attitudes toward carbon offsetting. Leisure tourists were asked (using a 5-point Likert
scale) whether they thought that the world climate was changing, whether this was, in
their opinion, partially or entirely a result of human actions, and whether they were wor-
ried about global warming. A follow-up question considered the role of aviation in global
warming. Second, the questionnaire addressed knowledge of carbon offsetting, attitudes
toward the Seychelles as a “climate neutral destination” as well as the respondents’ willing-
ness to financially support emission reductions and carbon offsetting. Socio-demographic
information included age, nationality, sex and net income per month.
A copy of the survey instruments used is available in the web-based version of this
paper (www.informaworld.com/JOST).

Results – managers
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The interviews revealed many common views, as well as some differences in managers’
perceptions, with the management of large hotels usually having a more complex under-
standing of global issues, such as the economic situation in source markets, the cost and
feasibility of alternative energy systems, fuel costs and other factors increasing vulnerabil-
ity, as well as questions of energy security and reliability.
The first section of the interview, exploring the future of the Seychelles as a destination,
revealed that managers of large hotels were generally concerned about the image of the
Islands as a unique, unsullied destination (“people come for environment, beauty, [and]
authenticity of the people”). All managers in larger accommodation establishments ques-
tioned the ongoing expansion of accommodation capacity, and the plans to increase tourist
numbers, also pointing out difficulties in hiring staff (“45% of my staff come from foreign
countries, and I have to fly them here”). Growth in tourist numbers was seen as inherently
negative for the image of the Seychelles, although this argument may also have been used
with a view to avoid competition. Nevertheless, managers made it clear that the image of
the Islands as a pristine, unsullied destination is of overall importance for the future of
tourism.
Regarding climate change, interviews revealed a high degree of awareness, even though
the understanding varied between climate change as affecting tourism, tourism as being a
contributor to climate change and the interrelationship between the two. During the survey
period – June is usually the driest month of the year – there were prolonged periods of rain,
which may have raised awareness of the (potential) consequences of climate change for
weather patterns. Many managers reported that rain had a number of negative consequences
for tourism. For instance, tourists were reported to be often discontent, which also resulted in
a higher rate of complaints. As one manager summarized: “When the sun shines, everything
is fine, but when it rains, they start to complain about the service, the transport. . . You know,
they are bored.” Business was influenced in various ways, as additional offers, such as
excursions to urban areas for shopping or wine tasting, had to be made. One hotel reported
that sales of excursions and bicycle rental were negatively affected. Managers also observed
a series of climatic anomalies, such as a particularly dry season, followed by heavy rains,
rain in “dry” months or hotter than normal temperatures. One manager summarized: “The
weather (has become) very unpredictable.” Climate change was also seen as responsible
for a rise in sea level and the observed erosion of beaches all around the islands. Overall,
managers seem well aware of climate change as a (potential) threat to tourism.
Many managers recognized the need to get engaged in pro-environmental actions and
to reduce emissions of greenhouse gases, an issue also seen from marketing point of view:
 Journal of Sustainable Tourism 385

“In the future, it will be a marketing issue, clients are more and more demanding for the
environment.” Another manager pointed out that the awareness of tourism’s contribution
to climate change could potentially affect destination choices, citing a German newspaper
article advocating “Sylt statt Seychellen” (“Sylt instead of Seychelles” – Sylt being an
island off the north-west coast of Germany). The increasing use of renewable energy
was generally considered positively. However, some guesthouse owners pointed out that
the technology must be reliable, i.e. it must not break easily, and spare parts as well as
the technical know-how and manpower must be available to repair broken systems. This
reflects the more general difficult socio-economic situation in the Islands, where foreign
currency and technicians are in short supply. Clearly, this is less of a problem for larger
hotels with their own technicians, even though energy security is a key issue even for these
establishments. Larger hotels also pointed out that retrofitting with new systems to save
energy and emissions has to be economically feasible. In particular, this may imply that
renewable energy systems have to be planned early and installed during the construction
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phase of hotels, as retrofitted hotels with new energy systems are perceived as costly
(“It is a minor extra cost when building the hotel, but very expensive when the hotel is
built”). The general perspective was that renewable energy is acceptable if it makes an
economic contribution. In the words of one manager: “I prefer solar, because it saves me
money.”
With regard to amortization timeframes, 5–10-year period was deemed acceptable
by managers. Notably, the managers’ perspectives on fossil fuels generally included two
aspects: First, high energy demand increases vulnerability, as continuous supply of oil has to
be secured to run generators. Furthermore, high and increasing oil prices lead to declining
or volatile profits, a situation reflected in the fact that 26% of the Seychelles’ GDP is spent
on fuel imports (National Statistics Bureau, 2007). Second, the interrelationship between
emissions and climate change, and tourism being affected by climate change, appeared to
be understood by managers, particularly of larger hotels.
Another important issue was perspectives on future energy usage. According to guest-
house owners, air conditioning is often a precondition for individual bookings (“Many
tourists ask, ‘Do you have aircon?’ If not, they don’t come”), or cooperation with tour oper-
ators, who are reluctant to work with hotels without such devices (“air conditioning is slowly,
slowly turning into a must”). This indicates that low-energy options, such as guesthouses
offering ceiling-fans, are increasingly regarded as uncompetitive, while tourists constantly
demand higher standards (“when (tourism) started, they rented out shared (rooms), but this
is no longer possible”). Managers also complained that tourists were generally unaware of
their energy usage, never switching off air conditioning or ceiling-fans when leaving their
rooms. This was seen as an important factor in increasing energy usage.
Finally, the concept of a carbon neutral destination was generally received positively,
as indicated by one hotel manager:
Very good idea. This is unique. Excellent for me, better for me. We can invest in green. As
long as the government gives me subsidies. If the government pays 50%, then we can pay
the rest. For me personally, perfect. I am pushing for solar, but investment is too long, 10–12
years. Investment in 5 years, good, perfect. The design has to be good. We cannot get rid of
the generator, but we can reduce fuel use. Geothermal, maybe we can use as a cooling system
to pump up cool water. But the government has to come up with studies. We use one block of
our hotel as a test – go for it. As long as it is not noisy or an eyesore, ok!

The above statement reflects a positive attitude toward the carbon neutral destination
concept, energy efficiency measures and willingness to support energy infrastructure change
– including the use of innovative solutions, such as cold water pumped out from greater
 386 S. Gössling and K.P. Schumacher

depths for cooling. However, the manager’s understanding of the costs of restructuring
seems not in line with the general literature, which indicates that investment in solar energy
involves shorter pay-back periods (UNWTO-UNEP-WMO, 2008). He also cautions that
“for me, I am glad, but my bosses, I don’t know”, indicating that decisions in international
hotel chains may often be made by boards that are detached from the local context.
Other managers went even further and called for pro-environmental legislation, such as
mandatory air conditioning systems that shut down when balcony doors are opened, or card
systems for switching electricity on and off in rooms. Ultimately, this may indicate the need
for more pro-environmental legislation, for instance when hotels are constructed, as these
measures, though surely cost-effective, are not usually implemented. Overall, the interviews
indicated that environmental issues are important issues for managers, even though their
perspectives may focus on local restructuring, i.e. omitting transport of both tourists as
well as food. It is also evident that most managers lack a more detailed knowledge of both
ecology and technical options (and their costs) to reduce or replace fossil energy usage.
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And, while managers preferred to keep the islands’ accommodation capacity constant, they
emphasized that tourist flows have to be maintained.

Results – tourists
The survey revealed broad consensus among tourists that the world’s climate is changing,
with 91% of the sample agreeing or strongly agreeing, and only 3% disagreeing or strongly
disagreeing, the remainder being undecided. With regard to the causes of climate change,
15% considered this to be an entirely man-made phenomenon, and 58% considered it to
be mainly man-made. On the other side of the spectrum, 4% of respondents considered
climate change to be entirely, and 12% to be mainly, natural. Of the reminder, 8% stated that
they did not know, and 2.6% did not answer the question. A majority, 81% of respondents,
said that they were worried about climate change, 11% were not, 6% were undecided and
2% did not answer the question. With regard to the role of aviation in global warming, 67%
believed that aviation contributes to global warming, while 12% did not. A considerable
number (20%) were undecided. In a nutshell, there was consensus among tourists that
climate change is real and man-made, with two-thirds of the respondents ascribing a role
to aviation in global warming.
In the following, a definition of carbon offsetting was presented to all air travelers,
even to those who claimed to know about it. Respondents (n = 298) were then informed
about the Seychelles’ plans to become a carbon neutral destination through reducing energy
usage and engaging in offsetting. Forty-five percent of the respondents considered this to
be very positive and another 43% to be positive, i.e. 88% of the respondents had positive
perceptions. On the other side of the spectrum, only 2% respondents regarded the plans
as negative or very negative, while 8% did not consider this to be relevant. The threshold
between perception and action was explored by a question addressing support for offsetting.
The calculation of average emissions for traveling to the Seychelles was based on the
assumption of a one-way distance of 7500 km (corresponding to European markets), and
described to the respondents as a “typical flight”. Offsetting this flight would cost €100,
a figure retrieved from the not-for-profit offset provider Atmosfair’s website. It should be
noted, however, that Atmosfair sells highly credible and hence expensive offsets that take
into account the radiative forcing of GHGs other than CO2 . Offsetting through another
provider would consequently have been cheaper (for discussion, see Gössling et al., 2007).
One-fifth (21%) of the respondents stated they were prepared to offset their flight, despite
the considerable addition of €100, but a larger share (29%) rejected the concept/price.
 Journal of Sustainable Tourism 387

Almost one-third (29%) of the respondents did not answer the question, while 16% were
undecided. Only 5% respondents claimed to have offset their flight, which would represent
a comparably large share (cf. Gössling et al., 2008). While this would indicate some
potential for a trustworthy carbon-offsetting proposition to be accepted by visitors, a larger
share (three-quarters) of tourists may actually be willing to pay a share of the costs of
offsetting (cf. Brouwer, Brander, & Van Beukering, 2008). This has not been captured in
the questionnaire.
A follow-up question considered willingness to financially support the retrofitting of
hotels toward the use of renewable energy sources. Tourists were informed that the stay in a
hotel causes greenhouse gas emissions. Tourists were asked whether they would be willing
to make a contribution toward retrofitting, and if yes, at which level. Notably, 18.5% of the
overall sample stated a willingness to pay (WTP) €5 per night for compensating emissions
from accommodation.
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Financing compensation
As pointed out by Brouwer et al. (2008, p. 299), reviews of climate change mitigation (e.g.
Stern, 2006) have measured “objective” risks and damage related to climate change and
translated these into costs. This excludes the WTP of individuals to avoid these risks, even
though their WTP should provide important additional motivation for direct action. The
results of the survey show that both the management of hotels and a majority of tourists
perceive climate change as a serious threat, while perceiving positively the concept of a
climate neutral destination. Statements by managers indicate a general willingness to retrofit
accommodation, with investment horizons of up to 10 years deemed as acceptable, provided
that new energy infrastructure is reliable. Tourists, on the other hand, revealed considerable
WTP for retrofitting and offsetting. In the Seychelles, the willingness of managers to retrofit
accommodation could consequently be supported with voluntary payments from tourists.
The following section discusses the financial feasibility of such an endeavor, comparing
the tourists’ WTP in 2007 with the amount of emissions that would have to be offset in
2005. Note that by 2020, the amount of emissions to be offset would have declined in
Scenario 1 (constant arrivals) and increased in Scenario 2 (200,000 arrivals). In both cases,
there is some uncertainty with regard to WTP, which may increase or decrease over the
coming decade.
With regard to WTP, 5% of the tourists claimed to have offset their flights, even though
it is doubtful that all of these paid €100 as suggested in the questionnaire because price
levels for offsets vary considerably (cf. Gössling et al., 2007). For the calculation of WTP
it is here assumed that air travelers offsetting their emissions have on average paid €50,
corresponding to the amount charged by offset providers with moderate price levels, i.e.
around €15 per ton of CO2 . This would, extrapolated to 5% of the 128,654 international
tourists, correspond to €321,635 in actual payments. Adding stated WTP of 21% of the
tourists willing to offset their flight emissions at a price of €100 would correspond to
another €2,701,734 in voluntary payments. Together these would total €3,023,369 (see
Table 6). Note that while there may be differences between stated and actual WTP, the
survey did not address whether respondents would be willing to compensate part but not all
of their flight. This would yield considerable additional funds (see Brouwer et al., 2008).
With regard to accommodation, 18.5% of the overall sample stated a WTP of €5 per
night for compensating emissions from accommodation. At an average length of stay of 8.7
nights, this would correspond to €1,035,343 for all international visitors, a conservative
estimate given that another 20% of tourists stated positive WTP. In total, WTP is in the
 388 S. Gössling and K.P. Schumacher

Table 6. Tourists’ stated willingness to pay and costs of offsetting emissions, 2005.

Total emissions Cost of offsetting

Sector Stated WTP (in €) (t CO2 emission) (in €)
Transport to/from Seychelles 3,023,369 482,000 6,266,000
Accommodation 1,035,343 39,342 511,446
Activities (including local transport) Not considered, 7394 96,122
but potential
Total 4,058,712 528,736 6,873,568

order of more than €4 million per annum (see Table 6). This value can be seen as an
indicative: on the one hand, tourists may not be willing to actually pay such sums in a real
transaction process; on the other hand, WTP may actually increase in a situation where
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energy-saving retrofitting is visible (renewable energy at hotels) or even tangible (transport

in new aircraft).
WTP can be compared to the cost of offsetting. The price of emission reduction units
in voluntary markets is, at the time of writing (December/January 2008), in the order of
less than €13 per ton CO2 (see e.g. www.nordpool.com). Consequently, offsetting 528,736
t CO2 from transport, accommodation and activities would entail costs in the order of less
than €7 million (Table 6; prices for emission reduction units are likely to increase in the
future). The difference between the tourists’ WTP (€4 million) and the costs of financing
compensation (€7 million) would appear to be considerable. However, a more detailed
analysis would suggest that the largest mismatch occurs in transport, where compensation
costs of €6.3 million face WTP of just over €3 million. As outlined by Gössling (2009),
the costs for offsetting should ideally be divided between various actors, such as airlines
and tour operators, and hence not be borne by the destination or the tourists alone. In
fact, the tourists’ WTP may be seen as an additional funding, with the airlines’ pro-
environmental action actually being a precondition for tourist payments (for the co-creation
of environmental value in offsetting-related service encounters; see Gössling, Hultman,
Haglund, Källgren, & Revahl, 2009). For instance, if tour operators and accommodation
businesses would move toward matching tourist payments to increase the attractiveness of
offsetting, another 43% of the overall costs for offsetting would be covered, leaving less
than 15% of unaccounted costs.
Arguably, matching payments could reduce tour operators and accommodation
providers’ profit margins in the short term. However, if linked to an effective and skilled
marketing program, they could help ensure the long-term survival – and profitability – of
the Seychelles tourism industry against a background of growing carbon consciousness.
There is evidence that matching payments is attractive for tourists and works. The major
Swedish tour operator Fritidsresor (www.fritidsresor.se) now matches customer payments
in the proportion of 1:1. Destinations themselves could also contribute toward offsetting
through payments or other actions, such as the forestry management mechanisms emerg-
ing within post-Kyoto negotiations. This would help them to pursue an image of global
leadership, reduce oil dependency and reinforce the image of pristine, unsullied, “good
conscience” destinations for marketing purposes. Therefore, overall, it would seem feasible
to meet the costs of offsetting flights in a multi-stakeholder approach.
With regard to accommodation, it is interesting to note that the tourists’ WTP exceeds
the cost of compensation, notably in a situation where no emission savings potential has
been realized. Funds derived from accommodation could thus be seen as a means to
 Journal of Sustainable Tourism 389

finance compensation in other sectors, such as aviation, and trigger a process toward carbon
neutrality. Regarding activities, the cost of compensation may be included in their price,
given that these will be low. For instance, if the cost of compensation were introduced in
the price for car rentals, this would probably be in the order of less than €1 per day.

Discussion and conclusions

This paper has shown positive ways for the tourism industry, even in the difficult situation
presented by SIDS, to move toward adaptation to climate change by implementing carbon
neutrality policies. The results obtained from the Seychelles study may not necessarily be
transferable to other SIDS, but they do present a feasible model approach. Comparison with
more case studies is thus warranted. Clearly, the Seychelles is an upscale destination, but this
does not necessarily mean that wealthier travelers are willing to pay more for offsetting their
emissions: this study did not find any correlation between income and WTP. On the other
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hand, destinations closer to markets (such as the Caribbean Islands) may find that WTP for
transport is more favorable, as research by Brouwer et al. (2008) indicates a “distance decay”
function, i.e. the lower the compensation to be paid – in absolute terms – the more likely it is
that tourists will be willing to pay. In this study, the tourists’ WTP covered 43% of the costs
of implementing a carbon neutral Seychelles – in a situation where no energy-efficiency
measures or restructuring toward renewable energy have taken place. As emissions could
be reduced by more than one-fifth in a constant arrival scenario through economic measures
essentially (i.e. given investment horizons of up to 10 years), tourists’ WTP would account
for more than half of the costs of implementing a carbon neutral Seychelles. Remaining
costs would be in the order of less than 2% of tourist spending in the Islands.
Furthermore, it can be speculated that the tourists’ WTP may grow in a situation
where climate change is increasingly considered as a threat to tropical destinations. This is
confirmed by findings in other studies, showing that the contribution to offsetting is rather
more a question of attitudes than income (Brouwer et al., 2008; Gössling et al., 2009). With
regard to realizing stated WTP, Brouwer et al. (2008) and Gössling et al. (2009) establish
a number of rules, such as the fact that airlines should not deny the seriousness of climate
change, while payments should be introduced on a compulsory rather than voluntary basis.
Tourists should also be made to feel personally responsible for climate change when flying,
something that may currently be true for only a small share of air travelers (Gössling
et al., 2009). At the same time, it needs to be communicated how funds will be used and
administrated.
Acknowledging this positive outlook, the implementation process may be more cru-
cial than its finances. Clearly, the concept of carbon neutral destination requires agreed
common goals, and will probably entail a major effort in coordinating both place-based
and non-place-based actors. Perspectives elaborated in this paper indicate that both the
understanding of energy usage and emissions, and the costs and feasibility of restructuring
toward renewable energy, are complex questions, and that there is a notable absence of role
models. Despite commitment by various countries including Costa Rica (Gössling, 2009)
and the Maldives (The Guardian, 2009), which have pledged to develop carbon neutral
tourism around 2020, none have set out a detailed analysis of their tourism sector emissions
or shown how sufficient reductions and offsets would be achieved. The situation becomes
even more complicated given the perspectives on further growth among many actors, and
the difficult economic situation of the Seychelles with a constant lack of foreign exchange
earnings and a high level of both foreign debt and involvement. All of these may pose
considerable barriers toward implementing carbon neutral destinations.
 390 S. Gössling and K.P. Schumacher

Finally, from a systemic point of view, it deserves discussion whether the concept
of carbon neutral destinations would represent a major breakthrough in establishing a
climatically more sustainable tourism. Clearly, small tropical islands have few options to
maintain viable economic systems without tourism, and should proactively engage in carbon
neutrality concepts. However, if a greater number, and in particular larger nations, joined
efforts to offset emissions, it may be increasingly difficult for carbon neutral destinations
to maintain their status due to rapidly increasing costs for carbon reductions or offsets.
It also becomes increasingly clear that global emission reductions may not leave room
for emission growth in any sector (Anderson & Bows, 2008). Under the Kyoto protocol
and its contraction and convergence principles, developing countries may further grow
in emissions, a fact considered in the emission allocation principle of the carbon neutral
destination conceptualization (cf. Gössling, 2009). But as this paper shows, tourism may add
considerably to national (per capita) emissions in small islands, pushing even moderately
developed countries such as the Seychelles toward the unsustainable 4 t CO2 per capita
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per year threshold, i.e. average of the current global per capita emission. Achieving carbon
neutrality objectives may only be feasible in steady-state tourism economies (cf. Hall,
2009), where tourist arrivals remain constant or decline (while yield increases), and where
overall emission reductions are achieved within the system, rather than through offsets
accomplished outside the system.

Acknowledgements
We wish to express our gratitude to Raman Paravaikkarasu, now Director of Engineering, Shangri-la
Group of Hotels for his help during data collection. Helpful comments by three anonymous reviewers
are gratefully acknowledged.

Notes on contributors
Stefan Gössling is a Professor at the Linnaeus University School of Business and Economics, Sweden.
His research interests include the interrelationships between tourism and climate change, development
processes in SIDS and mobility. His most recent publications are Sustainable Tourism Futures (Rout-
ledge 2009, co-edited with David Weaver and C. Michael Hall) and Climate Change and Aviation
(Earthscan 2009, co-edited with Paul Upham).
Kim Philip Schumacher holds a PhD in geography from Freiburg University and works as Researcher
and Lecturer at the University of Hildesheim, Germany. His main research interests include tourism
in Central Europe and East Africa, the development of European cultural landscapes and higher
education for sustainable development.

Notes
1. In this calculation, CO2 emissions from aviation (241,000 t CO2 ) have been multiplied by a factor
2, equal to 482,000 t CO2 (this is to give an indication of their contribution to global warming,
not to compare CO2 and non-carbon GHG). On top of this, other emissions (40,640 t CO2 ) are
multiplied by a factor 1.15 to account for indirect energy usage, corresponding to 46,736 t CO2 .
In total, this results in the “equivalent” of 528,736 t CO2 in 2005.
2. Accommodation establishments directly emitted 34,210 t CO2 in 2005, corresponding to roughly
86,460 barrels of oil (34,210 t CO2 /3.15 = 10,860 t fuel = 13,747,000 l/159 l = 86,460 barrels).

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