Climate Change Case Study: Wellington City YHA
YHA Wellington City hostel is proving that profits and environmental management go hand-in-hand.
The newly refurbished hostel is the 'jewel in the crown' of the country's largest hostel network, setting new standards for backpacker accommodation in the city, while at the same time introducing some innovative products and management techniques to reduce waste and greenhouse gas emissions.
Improving its energy efficiency has not just saved the YHA Wellington City money, it has also improved customer satisfaction with increased occupancy rates.
In just over 10 years the city hostel has grown from a 96 bed facility, to 322 beds, offering a mix of private and shared accommodation including double rooms with ensuites. In November the hostel, the largest in the YHANZ network, became the first in Wellington to earn the five-star Qualmark rating. Last year it averaged 78 per cent occupancy - up 20 per cent on the region's average for the backpacker sector.
A key factor in this growth has been a full energy audit and the introduction of some innovative and simple environmental management systems.
Manager Hamish Allardice says introducing good environmental management is a "no brainer".
"It's just common sense and good business sense. We are spending less on our waste and managing our energy better," he says.
That is a view supported by the Sustainable Business Network, of which YHA Wellington City is a member. Central Regional Manager Prudence Stone says YHA Wellington City is a tangible example that sustainable business is good for the environment and for the bottom line.
The expert advice on what systems and products to use has been provided by ECOsystems, a Wellington-based environmental management firm.
ECOsystems started the energy efficiency upgrade at YHA Wellington City in 1997 by doing some really simple things such as wrapping hot water cylinders, installing low flow showerheads, and putting in fans in the dining and reception areas to improve summer comfort.
Hamish says one key initiative was to introduce an automated heating system.
"We used to give fan heaters to people to heat their rooms. They would wake up or arrive in a cold room and all put the heaters on at the same time which was hugely expensive for us and not very satisfactory for them. Installing the integrated heating system which automatically controls guest heaters made a huge difference. Guests woke up to warm rooms, customer satisfaction increased and our energy costs were reduced," he said.
Another key innovation has been the installation of the ECO GFX which recovers waste heat to cut energy costs and cool waste water. The product is installed in the shower waste pipes and transfers the waste heat into the incoming cold water to halve the costs of showers.
This unique patented water-to-water heat exchanger works on the principle of Gravity Film eXchange. When water falls down a vertical section of drainpipe it clings to the inner surface in a very thin film. The heat is easily and efficiently transferred to the cold water circulating around the outside of the drain pipe.
ECOsystems Director International and Innovation, Frans Plugge, says YHA Wellington City was an example of a business having a clear commitment to environmental sustainability and of understanding the business spin-offs.
"A lot of organisations find it hard to justify the initial expenditure on environmental management systems because the pay off can be three to five years away and they are thinking of revenues from a year-to-year basis. But the savings that can be made are significant," he says.
"Wages and property costs are often the largest and most difficult things to reduce in a business. Energy costs are still one of the few significant costs that businesses can relatively readily control."
Figures from the Ministry for the Environment's Climate Change Office show that global energy use has increased nearly 70 per cent since 1971 and is likely to rise at more than 2 per cent annually for the next 15 years. Most urban greenhouse gas emissions are from energy use.
Around a third of New Zealand's electricity is generated by burning fossil fuels such as coal and gas which emit carbon dioxide into the atmosphere (the other two thirds are generated from renewable sources such as hydro). To reduce these emissions and save money on power bills, businesses need to think about conserving energy (using less) and being more energy efficient (using energy wisely).
Last updated: 14 April 2008
