Audits have found Bahamian hotels could be saving "a minimum" of 30 percent on their energy bills through a variety of "no-cost, low-cost and mid-cost" efficiency measures, a sector stakeholder has revealed, arguing that there is a "tremendous amount of wastage" that could easily be reduced with serious benefits to hotels' bottom lines.
Where steps towards energy efficiency require financing, Frank Comito, executive director of the Bahamas Hotel and Tourism Association (BHTA), said policy support from the government could allow for The Bahamas to benefit from or emulate innovative financing mechanisms that are developing elsewhere in the region.
Fresh from attending the Caribbean Tourism and Energy Forum (CTEF) in Punta Cana, Dominican Republic, Comito said hotels in The Bahamas are "lagging behind in best practices, even on the fundamental things they can do to be more energy efficient".
As a result, The Bahamas is behind the curve regionally when it comes to addressing high energy costs in the sector, with this having knock-on effects on the competitiveness of the tourism product.
His comments suggest that while the focus has traditionally been on the need for the government to take action to reduce energy costs via reforms such as those which are presently underway at the policy level with respect to the Bahamas Electricity Corporation, there is much more that can be done at the company level to lower costs.
Speaking of lessons learned at the forum, which was attended by several Bahamian delegates, Comito said: "From the specific presentations we saw, we are still not seeing enough being done to reduce lighting costs, air-conditioning and refrigeration costs, and perform regular and basic maintenance on appliances and motor-driven equipment.
"Hotels are also wasting a large amount of water, which has a corresponding impact on energy costs. I was a member of the opening stakeholders panel, and each of the panelists, myself included, pointed to the tremendous amount of wasted energy by hotels and countries because of the 'culture of usage', which we live in.
"Throughout the region, and certainly in The Bahamas, much more can be done by our people to reduce the amount of wasted energy," said Comito.
This concern was backed up by energy audits recently conducted on Bahamian hotels this year under the auspices of the Caribbean Hotel Energy Efficiency Action Programme (CHENACT), an internationally-funded program which has sought to identify how local hotel properties can reduce their costs through energy efficiency measures.
Comito said preliminary findings from these audits, which will continue into the new year, are that hotels can save a minimum of a third of their current energy costs without a great deal of investment.
Even as hotels lag "on a fundamental level" in terms of their implementation of best practices that could cut costs and address "basic competitiveness" issues compared to their regional peers, Comito said that the forum also made it clear that at the governmental level there is more that can be done in The Bahamas, notwithstanding the fact that the Bahamian government has indicated its intention to move towards energy reform.
"We are lagging. Our policies are outdated, particularly with regard to our public utility. The more progressive countries appear to be ones with privately run electricity utilities, something which the Bahamas government has indicated it is moving towards in part," noted Comito.
CTEF, which was held from December 10-11, billed itself as the first event to focus exclusively on lowering the electricity bill for the region's hospitality sector.
"There is no greater threat to the competitiveness of Caribbean tourism than the price of electricity. With rates which soar close to 50 cents per kWh in some markets, the impact on bottom line profitability is crippling. Yet the region's hospitality industry has found it challenging both to save energy and to generate it," the forum's organizers state on the event's website.
Financing mechanisms
Comito said that the International Finance Corporation (IFC) reported at CTEF that it will be establishing a fund specifically for the Caribbean to assist with developing ESCOs - energy service companies.
Such companies typically develop, install and arrange financing for projects designed to improve the energy efficiency of companies.
Comito said he is hopeful that once all of the CHENACT audits are complete, Bahamian hotels that require financing for some of the more advanced energy efficiency measures can begin to tap into some newly-established financing mechanisms.
"By mid-year, we're hoping that we can start serious discussions on financing models that could be considered for The Bahamas," said Comito.
The tourism executive noted that a number of financing models were shared at CTEF from which The Bahamas could draw inspiration as it seeks to reduce its energy bill, including private sector-led models in the Dominican Republic, Brazil and Colombia which received some measure of support from their governments and multilateral organizations.
"To make the financing mechanism workable in The Bahamas, we will need to have policy support from the government and the local banks will need to work with the sector. Multilaterals like the IDB and IFC will need to guide and assist with our efforts.
"Key though, is a commitment by the hotel owners, managers and employees to becoming more efficient and investing through practices and money in reducing their costs," he said.

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