ࡱ> bjbj L L 4h+Lw|>J :CCC{Lg(HHHHHHH$4LNTHw{HCC4I$$$DCCH$H$$D0KGCFE$HJ0>JEh*O!0*OHKGKG*OH$HH"$>J*OL U:CROATIAN HOTELIERS ATTITUDES TOWARDS ENVIRONMENTAL MANAGEMENT Lidija Petri, PhD, full professor Faculty of economics Split Matice hrvatske 31 21 000 Split phone:++385 021/430-670; fax ++ 385 021/430-701 e-mail: lipe@efst.hr Ljudevit Prani, PhD, assistant Faculty of economics Split Matice hrvatske 31 21 000 Split phone: ++385 021/430-749; fax ++ 385 021/430-701 e-mail: ljudevit.pranic@efst.hr Keywords: environmental management, ecological standards, hotel industry, Croatia 1. INTRODUCTION Contemporary society increasingly wields moral, ethical, social, and political pressures at ensuring environmental protection and sustainable development. Yet, the most recent developments in the global arena suggest even greater changes are underway. Namely, in the wake of global financial crisis and surging costs of fossil fuels, energy conservation and environmental management have almost instantaneously become critical issues internationally. Consequently, trends such as the green hotel movement and ecotourism are likely to be accelerated in the near future. In the lodging sector, the hoteliers adoption of ecological standards is typically motivated by the perceived costs and benefits of such action. Moreover, there is a greater awareness among hotel managers that safeguarding natural resources directly influences firms operational success, competitiveness, and ultimately its survival. For these reasons, an increasing number of hotels are embracing formal and/or informal environmental management policies, systems, and procedures. The Croatian lodging industry, despite its long-standing tradition, is still hampered with numerous viability issues e.g., incomplete and/or poorly executed hotel privatization process, unresolved land ownership disputes, and pronouncedly high seasonality. Consequently, the operational efficiency of many hotels is questionable, while the overall lodging industry struggles to attract sound foreign investment. Under these circumstances, one may expect that the adoption and implementation of environmental standards by Croatian hoteliers is still at an early stage. In Croatia, however, no research has been conducted to determine the state of environmental management in Croatian hotels. Thus, the purpose of the present investigation is to determine and highlight the Croatian hoteliers' attitudes towards environmental management. Specifically, this research seeks to: Theoretically explore the role and the importance of the environmental standards adoption in hotels amid growing international ecological concerns; Empirically investigate the attitudes of Croatian hoteliers towards potential benefits arising from environmentally-oriented hotel management, including increased profitability, increased employee and guest satisfaction, improved relations with the local community, improved public relations, and development of a competitive advantage; Examine the relationships among hoteliers attitudes, hotel characteristics (lodging type, size, quality rating, location, guest type, seasonality, the number of years in business, and ownership type), and the presence of a formal/written environmental management policy. 2. DISCUSSION 2.1. Environmental Management and the Hospitality Industry It was not until the 1990s that tourism - and in particular, the hospitality industry have started to respond to the need of the environmental management. Namely, in 1992, the International Hotels Environment Initative was developed when a number of the leading international hotel companies realised that they had a lot to gain from working together. The IHEI had developed a manual for managers (IHEI, 1993; as cited in Kirk, 1998), a journal, Green Hotelier, and a number of training aids for hotel companies. IHEI has now evolved into the International Tourism Partnership, the tourism programme of the International Business Leaders Forum (ITP, 2009), whose aim is to assist the industry to make a valuable contribution to the countries and cultures in which they operate, to their customers, their shareholders and future generations. They had published the third edition of a mannual "Environmental Management for Hotels" providing hotels and other related businesses with the knowledge and means to develop practical solutions to 'green' their operations. As part of wider environmental management, many (typically larger and/or franchised) tourism establishments now use the ISO 14001 environmental management standard. ISO 14000 series of eco-standards has been developed and issued by the International Organization for Standardization (ISO) in 1996. They are meant to be complementary to national regulatory regimes and are not intended to replace or duplicate a country' regulatory regime (Quazi, 1999). ISO 14001 was recognised as a step toward achieving EMAS, the Eco-Management and Audit Scheme. EMAS has become operative in the EU since April 1995 (EU/Environment, 2009). It is a voluntary scheme aiming to promote continuous evaluation and improvements in the environmental performance of participating organisations. EMAS goes beyond EN ISO 14001 in a number of ways, requiring the undertaking of an initial environmental review, the active involvement of employees in the implementation of EMAS, and the publication of relevant information to the public and other interested parties. Green Globe 21 is also an environmental management standard, developed specifically for the travel and tourism industry, but it has not managed to reach the market. There are also a substantial number of ecolabels, codes of conduct, sustainability reporting schemes, awards, and benchmarking programs in the tourism industry. Font (2002, as cited in WTO & UNEP, 2008; 164) identified over 100 ecolabels of tourism, hospitality and ecotourism worldwide (such as Blue Flag, Green Globe, Pan Parks, Le Clef Verte). Environmental management, certification and ecolabelling can be a useful basis for managing a businesses supply chain and developing strategic partnerships. From the available literature (Kirk, 1998; Chan, 2008) it is obvious that the pioneers in introduction of ecological operation standards, i.e. environmental management, were mainly hotels belonging to the big hotel chains. This is due to the fact that, except the simplest rationalization measures, most activities require a significant starting investment the return on which is admittedly relatively fast but which cannot be afforded by the hotels that operate without safe and stable financial and managerial support. Moreover, in most countries environmental policy is mainly designed to penalize noncompliance with certain standards and regulations rather than to reward autonomous environmental initiative. Nevertheless, there are increasingly frequent government initiatives aimed at subsidizing hotels in their efforts to introduce ecological standards into their operation. An outstanding example is the federal government of Canada that since the mid nineties has been supporting with an annual subsidy of 4% per hotel income the members of the Canadian Hotel Association in their effort to develop an environmentally friendly offer. This cooperation is carried out through the government Agency for Environment Preservation that, among other things, helps the Hotel Association develop ecological operation criteria by ensuring 50% of the funds needed for implementation of the program (IHRA, UNEP, 1995, 46). Although ecological initiatives can be taken in any hotel, it is certainly much easier with financial, organizational and consultative support. Even though a certain number of countries are directly engaged in such programs, such as the above mentioned case of Canada, then for example Tanzania, Togo, South Africa, etc. where issues related to environment and tourist industry are dealt with in the common ministry, ecological programs in the tourist industry and particularly in the hotel industry, are mainly carried out through various professional alliances, primarily through the national hotel associations. They are then associated into the International Hotel Association (IHRA, 2008) and other green organizations (professional and non-professional) and ecological initiatives. The most renowned are GEMI - Global Environment Management Initiative (1999), center for promotion of ecological standards and environmental management in companies all over the world, and WEC - World Environment Center (2009) serving as a bridge for information and expertise exchange between the industry and the governments, as well as numerous organizations and associations dealing with these issues. As for the EU initiatives regarding the issue, the EU Eco-label award scheme has been set up to identify products with a reduced environmental impact. It is a voluntary scheme and manufacturers can choose whether or not to apply for the Eco-label. The scheme is based on Council Regulation EEC N 880/92 of 23 March 1992, which has been updated and revised by Council Regulation N 1980/2000 of 17 July 2000. The European Eco-label for tourist accommodation service was created to reward accommodation services that respect the environment. It signals good environmental performance and is an added quality value when tourists are choosing their accommodation. Hotels and guesthouses displaying the Eco-label flower logo have been distinguished as being amongst the most environmentally friendly in their area (2009). 2.2. Application of ecological standards in hotel operation There are numerous activities and measures that can be undertaken by hotels to protect the environment and reduce operating costs without any harm to the achievement of optimal comfort standards for their guests. However, these activities as well as the way and scope of their implementation will differ from one hotel to another due to differences in: Mode of operation and sort of guests (depending on whether it is a city hotel specialised for business guests, seasonal hotel, or hotel specialized for specific guests in terms of age, education, interests, etc.), Country legislation and regulations, Local and regional priorities in environment protection, Starting position (whether hotels have been taking some of the measures and activities of environmental management since the beginning of operation or are just introducing them). On the other hand, it is certain that most measures refer to 6 basic areas: energy, solid waste, water, effluents and emissions (fluid and gaseous waste), choice of contractual partners (suppliers, service providers, etc.), operation (IHA, IHEI, UNEP, 1995: 9; UNEP, 1992; 5). Ad 1) Hotels consume vast quantities of energy in different places and different departments for heating, cooling, lighting, cooking, laundering, maintenance, etc. Most of them are not rational in this consumption, i.e. they consume much more energy than it is necessary. In that way, due to indirect or direct unnecessary fuel consumption, they do not only increase their costs and reduce operation efficiency but also contribute to global warming, acid rains and other environmental threats. Ad 2) Solid waste disposal is one of the greatest environmental problems, especially if it includes non-biodegradable or hard degradable materials. Most hotels produce large quantities of solid waste, bottles, tins, kitchen waste, scrapped furniture, equipment, and potentially dangerous materials such as asbestos, paints, etc. Saving measures in this domain primarily involve more rational use. In these terms numerous hotels run the so called 3R campaign - Re-use, Recycle, Reduce . Ad 3) The water benchmark values suggested by International Hotels Environment Initiative (IHEI) at the beginning of the 1990s were in the range of 120280m3 per guest staying overnight per year (average daily guests) for fairly efficient hotels and below 120220m3 for facilities with good water efficiency, depending on the type and size of the hotel. A more recent benchmark value from IHEI states the quantity of water below 540 l/guest-night as satisfactory, and below 480 l/guest-night as excellent in the case of luxury hotels (Bohdanowicz, 2006). In order to rationalise the water consumption, it is necessary to build in special devices aimed at lowering water pressure in showers and pipes (so called aerators) and water saving toilets, to install water gages etc. Ad 4) The main polluting factors in fluid and gaseous waste are: air conditioners and refrigerators (containing chlorofluorocarbon - CFC, dangerous for ozone layer), boilers using fossil fuels, vehicle exhausts, chemical effluents caused by cleaning and washing, pesticides and herbicides, unprocessed excrement, kitchen and washroom odors, etc. In most countries disposal of such wastes is strictly regulated by law and any breach incurs penalty and also loss of reputation among guests. On the other hand, if a country lacks strict legal regulations in this area the hotels themselves can take various measures to protect their reputation as hotels respecting the health of their clients and of their wider environment. Ad 5) A less emphasized but not less important set of measures directed at the eco-hotel status refers to its dealing with contractors and suppliers. Namely, in order to gain and retain the green epithet the hotel has to choose contractors and suppliers of the same orientation. In other words, it will purchase biodegradable washing powders, cleaning fluids and cosmetics, organic fertilizers for its gardens and plants, fresh and preferably organic grown food, reusable packaging, energy efficient appliances, etc. Consequently, the choice of suppliers able to offer such goods has to be one of the basic tasks of environmental management in any hotel. Moreover, an environmentally inclined hotel can include in its ecological mission a large number of previously passive partners. All the above mentioned activities and measures directed at introduction of ecological standards into hotel operation should in due time lead to concrete business results expressed primarily by higher savings, i.e. reduced operation costs and thus also higher profits. They should also result in increased customer loyalty, especially if the hotel is located in beautiful scenery admired and visited by nature lovers. Finally, they should create new business opportunities, primarily cooperation with agents and tour operators whose business policy is also environmentally inclined. To benefit from this policy, the hotel has to inform its business partners about it, primarily agencies and through them the prospective guests. This can be easily done by using various promotional tools (written materials, personal selling, fairs, etc.) and also by direct involvement in various environmental actions and programs to gain a recognizable green image. Here we have to point out the initiative that can be taken by the eco-hotel in the ecological training of the hotel personnel to enable them to implement its ecological policy and also to raise environmental awareness in the wider community. 2.3. Environmental Management in Croatias Hotel Industry Croatian hotel industry is still operating in an unfavorable business environment. This is primarily due to the incomplete privatization process and unresolved problem of land ownership. Besides, Croatian tourism is still mostly of seasonal character which is caused by a number of problems such as poor direct air links between its destinations and emission markets and an inadequate and insufficiently attractive offer of destinations in the off-season period. Under these circumstances most Croatian hotel companies are coping with mere survival in the market and that is why most of them are unwilling to implement formal systems of environmental management justifying their reasoning by high initial costs. The exceptions are the hotels operating within international chains whose ecologically oriented operation is the basic element of their competitive strategy. Nevertheless, the national hotel chains are increasingly introducing systems such as ISO 14 001 (e.g. Maistra Inc. operating as the hotel brand within the Adris Group). In May 2008, Maistra certified the Environmental Protection Management System according to ISO 14001:2004 norm which, together with the Quality Management System implemented according to ISO 9001:2000 norm, makes a part of the Integrated Quality Management System implemented throughout the entire organization. The systems have been implemented in all hotels, tourist resorts, camps and Maistras business functions (Maistra, 2008). Some hotels in Croatia implement informal measures of environmental management directed primarily to rationalization of energy and water consumption. For example, the Croatian Association of Small and Family Hotels provides training for its members in implementation of these measures and environmental management in general and strives to establish environmental quality mark to be awarded to its members. It also collaborates with Croatian Center for Clean Production that in 2006 started a pilot project on possibilities of savings in Croatian hotels by implementation of environmental measures (CRO-CPC, 2006). In accordance with the Food Law NN 46/07 and Regulations on Food Hygiene NN 99/07, from January 1, 2009 Croatian hotels will have to start the implementation of a special system in food production, preparation and serving, the so HACCP, Hazard Analysis Critical Control Point. This system is actually one of the formal systems based on environmental principles. The HACCP concept, pioneered in USA, was first introduced in 1958 by the NASA (National Aeronautics and Space Administration). The European hygiene rule defined in the paper 94/356/EG demands for an HACCP-concept which can be integrated in a quality management system (OurFood, 2008). Introduction of HACCP into hotels is carried out by the Public Health Institute and consulting firms, while certification is provided by authorized agencies. It is to be noted that no Croatian law, regardless of their number and variety, deals with the issue of resource usage in the hotel industry. The issue is defined in a number of environmental and industry laws. Environment laws deal with the usage of environment factors such as water, soil, sea, etc. Industry laws, unlike the environment laws directed to the general issues, regulate the treatment of concrete natural resources in particular industries (such as agriculture, fishing, etc.). It is obvious that the operation of the tourist industry (and thus also of the hotel industry) is based on various natural and cultural resources and that it has to comply with the basic principles of environment protection declared by these laws, and particularly by the Environment Protection Law (NN no. 82/1994, 110/2007). According to this law (art. 150-158) all legal entities (including hotels), are liable for the damage incurred by pollution if caused by their operation or negligence. In a hotel this can be for instance emission of oil, mazut, or excrements into water, emission of gas into atmosphere, dispersion of asbestos dust, etc. In such cases the hotel not only settles its own damage but also covers all the costs caused by measures taken to eliminate pollution. As for the measures stimulating implementation of ecological initiatives and general environmental policy in companies (including hotels), the Law provides the possibility of regulating benefits, tax incentives, and exemption of tariffs for those entities that use less detrimental production procedures (for example use of alternative energy resources, use of environment friendly equipment and appliances) and those that organize disposal of used appliances or their parts, used products and their packaging or use other ways to reduce negative effects on the environment (Law on Environment Protection, NN no. 82/1994, 110/2007). It is certain that without systematic implementation of environmental policy and stimulation of companies and hotels adhering to its principles sustainable development will be but an empty phrase. 2.4. Factors Affecting the Adoption of Environmental Standards by Hotels Why do hoteliers join the environmental efforts and initiatives at all? Is it simply for the sake of environment or...? We believe that their environmental behaviour is largely driven by the improvements to the bottom line, while less so by altruism. Many studies have been undertaken so far to describe motivations for the introduction of the environmental initiatives as well barriers to its implementation. Summarizing results of different studies, it can be concluded that hoteliers adoption of ecological standards is typically motivated by both costs, i.e., poor image, loss of market share, higher long-term expenses, greater employee turnover, etc., and benefits i.e., lower operating expenses, improved relationships with a local community, safer working environment, enhanced image, and the development of competitive advantage, as perceived by the firm (Chan, 2008; Chan & Wong, 2006; Kirk, 1998; Lorente et al., 2003; Quazi, 1999; Quazi et al., 1999; Quazi et al., 2001). Morover, there is a greater awareness among hotel managers that safeguarding natural resources directly influences firms operational success, competitiveness, and ultimately its survival ( HYPERLINK "http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V9R-4FJTNS7-1&_user=4755331&_coverDate=06%2F30%2F2006&_rdoc=1&_fmt=full&_orig=search&_cdi=5905&_sort=d&_docanchor=&view=c&_acct=C000050652&_version=1&_urlVersion=0&_userid=4755331&md5=57ec9ed4b9814876183e31e8ad6f40a9" \l "bib18" Garrod & Chadwick, 1996). In particular, with the proliferation of green consumerism, environmental management is increasingly viewed as a marketing advantage (Cairncross, 1995). In fact, hotel rating schemes in some countries and regions are based on environmental factors (Goodno, 1993). In terms of customers reactions to the greening of products and services, findings appear inconclusive. Thus, while some customers consider environmental issues when making decisions about a choice of hotel (Gustin & Weaver, 1996), others subscribe to environmental management as a concept, but are not prepared to pay more for an eco-friendly hotel room or dining experience (Jaffe et al., 1993; Watkins, 1994). In addition to marketing benefits, environmental management is believed to have a positive influence on public opinion and public relations (Worcester, 1994). For instance, a company which is sensitive to local concerns will likely face less resistance by the local community in any proposed new development (Elkington & Knight, 1992). Similarly, since some employees wish to work for a socially responsible company, environmental management can result in the heightened morale of the workforce (Hopfenbeck, 1993). For these reasons, an increasing number of hotels are embracing formal and/or informal environmental measures and procedures. Indeed, the formal adoption of a written environmental policy statement is commonly recognised as the first and most important step towards environmental action in an organization (Gilbert, 1993). Thus, some hotels employ a number of environmental best practices to curb energy, water and other expenses, albeit they do not have a formal environmental management system (EMS) in place. On the other hand, hotels with a formal EMS, such as ISO, adopt a structured, comprehensive and formal organizational approach designed to achieve environmental care in all aspects of operations. It typically involves the development of an environmental policy for the tourism business, monitoring of impacts (such as emissions), environmental reporting (e.g. in the form of triple bottom line reporting) and certification. Both the presence of a formal written policy as well as the hoteliers attitudes toward marketing and other benefits may be a function of various characteristics of the lodging facility, such as its type, size, quality rating, location, trip motive, seasonality, years in business, and ownership type. In terms of size, since smaller hotels generally face greater constraints (i.e., low environmental awareness, economic barriers, inadequate institutional support, etc.) they may be less prone to protect the environment (Tilley, 1999). Given the usually strong association between the size of the hotel and its quality rating (Kirk, 1998), hotels with superior quality (e.g., 4-5 stars) should exhibit more environmentally conscious operations. Furthermore, there is some evidence supporting the notion that small town/rural hotels are more in favor of general environmental policies than their urban counterparts (Deng et al., 1992). With respect to guest type, a hotel catering mostly to business travelers (as opposed to leisure travelers) may perhaps display less concern for the environment. Similarly, seasonal hotels may be less worried about the environment than hotels operating all year round. Also, longer established hotels could be more sensitive to environmental protection as a way to protect their long-term interests (i.e., to retain that which attracts tourists). Finally, one may also expect a difference in environmental attitudes between the independent and chain-owned hotels (Bohdanowicz, 2005; Green Flag for Greener Hotels, 2001). 3. RESEARCH HYPOTHESES In line with our studys goals, and based on the previous discussion, this studys two main research hypotheses and a number of sub-hypotheses are as follows: H1: There is a relationship between the presence of a formal/written environmental management policy and characteristics of the hotel; H1a: There is a relationship between the presence of a formal/written environmental management policy and lodging type; H1b: There is a relationship between the presence of a formal/written environmental management policy and hotel size; H1c: There is a relationship between the presence of a formal/written environmental management policy and hotel quality; H1d: There is a relationship between the presence of a formal/written environmental management policy and hotel location; H1e: There is a relationship between the presence of a formal/written environmental management policy and guest type; H1f: There is a relationship between the presence of a formal/written environmental management policy and seasonality of operations; H1g: There is a relationship between the presence of a formal/written environmental management policy and the length of time that a hotel is in business; H1h: There is a relationship between the presence of a formal/written environmental management policy and ownership type; H2: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and characteristics of the hotel; H2a: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and lodging type; H2b: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and hotel size; H2c: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and hotel quality; H2d: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and hotel location; H2e: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and guest type; H2f: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and seasonality of operations; H2g: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and the length of time that a hotel is in business; H2h: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and ownership type; H2i: There is a relationship between hoteliers attitudes towards potential benefits from environmental hotel management and the presence of a formal/written environmental management policy; 4. METHODOLOGY The Croatias Ministry of Tourism (MINT) list of 671 officially licenced and categorized facilites under the group HOTELS (hotels [562], aparthotels [11], tourist resorts [46] and tourist apartments [52]) in Croatia for January 2009 served as the sampling frame for this study. The actual study sample consisted of 310 facilities (46% of the sampling frame) belonging to the group HOTELS (210 hotels, 11 aparthotels, 46 tourist resorts and 52 tourist apartments). The 210 hotels in the sample were randomly selected among 562 hotels using Research Randomizer (2009). The study was carried out during February and March of 2009. Overall, this study featured a primary data collection, whereby a 2-page self-administered questionnaire written in Croatian was mailed to the General Managers of hotels that make up the sample. The questionnaire comprised 8 multiple-choice questions, a fill-in-the-blank question, and a Likert-type question - developed through a review of related literature and evaluated by two social science research experts. The subsequent pre-test of the survey on two hotels (one small and one large) revealed only a few typos that were easily corrected. Questionnaire design followed the established guidelines for mail and Internet surveys (Dillman, 2000). Thus, prior to mailing out the final version of the survey, an email informing the respondents about source, scope, nature, and date of the approaching survey was sent in an attempt to improve the survey response rate. The email correspondence was conducted using the Mail Merge Wizard, so as to assure respondent privacy and to avoid appearance of mass emailing. The first part of the surey aimed to identify some of the characteristics of the hotels by using 7 multiple-choice questions. This included lodging type (hotel, aparthotel, tourist resort or tourist apartment) size (small [d" 50 rooms/units], medium [51-100] or large [> 100]), quality rating (2-5 stars), location (coastal, city, rural, highway, airport or other), guest type (leisure, business or other), seasonality of operations (seasonal or all year round), and ownership type (independent or chain-operated). This section of the survey also included a fill-in-the-blank question about the length of time that a hotel has been in business. The second section of the questionnaire related to the presence of a formal written policy on the environment, and if there was one, how long the policy had been in place and what type of policy (i.e., ISO, HACCP, national or international hotel eco label, or other). Although HACCP is primarily a food safety policy (as opposed to an environmental policy), it also comprises some elements of environmental management, such as proper disposal of potentially harmful food wastes. However, the main idea behind food waste disposal in HACCP is prevention and control of food cross-contamination, not environmental protection. Yet, this difference between a formal HACCP system and a formal/written policy on the environment may not appear as clear to some respondents. Therefore, while included as one of the optional response categories, HACCP was not considered an environmental policy in the subsequent analysis. The third section of the questionnaire contained a 6-item measure of the hoteliers attitude toward possible impacts of environmental management on their business. This 6-item measure was adopted from previous research (Kirk, 1998), albeit no scale reliability and validity were reported in the original study. Specifically, respondents rated six statements reading the following: A program of environmental management will: (1) increase profitability, (2) increase customer satisfaction, (3) increase employee satisfaction, (4) improve relationships with the local community, (5) help with our public relations, and (6) give a marketing advantage over our competitors. All statements were rated on a 5-point Likert scale, ranging from 5 (strongly agree) to 1 (strongly disagree). 5. RESULTS Of the 310 questionnaires mailed, 81 usable surveys were returned, representing an overall response rate of 26%. 5.1. A Profile of Surveyed Hotels Of the 81 lodging units that returned the survey, the majority were hotels (81.5%), as shown in Table 1. Because of the small number of aparthotels (4.9%), tourist resorts (6.2%), and tourist apartments (7.4%), these were merged together in the later analysis. This gave two groups, HOTELS (81.5%) and OTHER LODGING FACILITIES (18.5%). In terms of size, due to the small number of medium-sized (51-100 rooms/units) lodging facilities (8.6%), these were combined with large hotels (> 100 units) in the subsequent analysis. Thus, two groups were formed, 37 hotels (45.7%) with d" 50 units, referred to as SMALL HOTELS, and 44 hotels (54.3%) with > 50 units, referred to as LARGE HOTELS. In relation to quality rating, hotels were divided into two groups for further analysis, 2-3 STAR HOTELS (76.2%) and 4-5 STAR HOTELS (23.8%). In regards to location, because of the small number of hotels at highway (1.3%), airport (2.5%) or other locations (2.5%), these were combined with city/urban hotels, thus forming two groups COASTAL HOTELS (50.6%) and CITY/URBAN/OTHER HOTELS (49.4%). As far as the type of guests mainly served by a particular hotel, two groups emerged, LEISURE GUESTS (64.1%) and BUSINESS/OTHER GUESTS (35.9%). The analysis further revealed that majority of hotels (56.8%) were opened all year round, while 43.1% were seasonal. In terms of ownership, 71.6% were INDEPENDENT and 28.4% were CHAIN-AFFILIATED hotels. The analysis of the length of time that a hotel has been in business showed that there was a skewed distribution with a large number of younger (d" 50 years in business) hotels (83%), and then a broad distribution of hotel ages up to a maximum of 123 years in business. Based on the median value of the years that a hotel has been in business, 25, hotels were divided into two groups for further analysis, 40 hotels (51.9%) with d" 25 years in business, referred to as  YOUNG HOTELS, and 37 hotels (48.1%) with > 25 years in business, referred to as OLD HOTELS. Moreover, only 27% of hotels in the sample have some sort of a formal/written environmental policy in place. As noted in the methodology section, HACCP was not considered an eco-policy because it is essentially a food safety policy. In relation to the length of time that an eco-policy has been in place, roughly half the total number of hotels in the sample (41) indicated their answers to this question. Of the 41 responses, over 46% have a formal environmental policy in place for 1 year or less. While an additional 41% and 12% have a formal eco-policy for 2-4 and 7-10 years, respectively, no hotel has a written policy on the environment in place for more than 10 years. 5.2. Formal Eco-Policy and Hotel Characteristics To test if there was any relationship between the presence of a formal/written eco-policy and the characteristics of the hotel, Chi-square tests were employed because the data collected were recorded on a nominal scale. Chi-square tests (c2) demonstrated significant association between the presence of a written environmental policy and characteristics of the hotel, such as size, quality rating, location, seasonality, and ownership type (Table 2). Managers of large, 4-5 star, coastal, seasonal, and chain-affiliated hotels are more likely to have a formal/written policy on the environment, as compared to small, 2-3 star, city/urban, and independent hotels that operate all year round. No relationship was detected between the presence of a written eco-policy and lodging type, guest type, and the years that a hotel has been in business. Whereas Chi-square informs us about the existence of significant difference between variables, it does not tell us much about the strength (i.e., effect size) of any significant relationships. Phi correlation () provides this additional information (Hinkle et al., 2003).  varies between 0 and 1, with values close to 0 indicating a very weak relationship, and values approaching 1 indicating a very strong relationship. By convention,  s of .10, .30, and .50 represent small, moderate, and large effect sizes, respectively. Thus, in this study, hotel size had a moderate effect on the presence of a written environmental policy. In comparison, quality rating, location, seasonality, and ownership type had a small effect on the presence of a written eco-policy. Overall, however, results in Table 2 suggest that H1 is mostly supported. Specifically, H1b, H1c, H1d, H1f, and H1g are supported. Conversely, there is no support for H1a, H1e, and H1h. 5.3. Attitude to Eco-Management and Hotel Characteristics Mean scores and percentages for each of the six attitude questions are shown in Table 3. While all six questions received positive attitude ratings, the questions related to increased customer satisfaction, providing marketing advantage, and helping with PR were rated higher than other attitude questions. To test if there was any relationship between the characteristics of the hotel and the responses to the individual attitude questions, Chi-square tests were employed as in the previous analysis. The hotel characteristics chosen were lodging type, size, quality rating, location, guest type, seasonality, ownership type, the length of time that a hotel has been in business, and a presence of a formal/written eco-policy. In order to satisfy the requirement of the Chi-square test that there are at least five counts in each cell, it was necessary to reduce each set of attitude responses to two categories. Therefore, for each attitude question, the sample was   divided into two groups NEGATIVE ATTITUDE (those with a score d" 3) and POSITIVE ATTITUDE (those with a score > 3). A matrix of results based on this analysis (Table 4) shows some interesting associations between characteristics of the hotels in the sample and attitudes to environmental management. As indicated by the statistically significant c2 values, managers of large hotels are more likely to view environmental management as means to improve community relations, help with PR, and provide marketing advantage, as compared to small hotels. However, hotel size had a small effect on these significant relationships, as denoted by the associated  values. Thus, H2b is partially supported. Managers of 4-5 star hotels are more likely to perceive improved community and public relations as benefits from eco-management, albeit low  value signifies that these relationships are weak. Hence, H2c is marginally supported.  Next, managers of coastal properties are more likely to see benefits from environmental management in terms of increased profitability, increased employee satisfaction, improved community/public relations, and marketing advantage. The associated  values suggest weak association between location and the perceptions of increased profitability and improved employee satisfaction. On the other hand, there is a moderate effect of location on the perceptions of improved community/public relations and marketing advantage. Overall, H2d appears mostly supported. Hotels catering mostly to leisure guests are more likely to view increased employee satisfaction and improved PR as benefits from environmental management, though these associations are weak. Therefore, H2e is marginally supported. Managers of seasonal hotels are more likely to view eco-management as a way to increase profitability (weak relationship), increase employee satisfaction (weak relationship), improve community relations (weak relationship), and help with PR (moderate relationship). Thus, H2f is mostly supported. Moreover, managers of chain-affiliated properties are more likely to perceive increased profitability (weak relationship), increased employee satisfaction (weak relationship), improved community relations (moderate relationship), and help with PR (weak relationship) as benefits from environmental management. Hence, H2g seems mostly supported. Additionally, hotels with formal/written eco-policy are more likely to see marketing advantage as a benefit from environmental management (weak association), therefore providing only marginal support for H2i. Yet, there is no significant effect of lodging type and the length of time that a hotel has been in business on any of the six attitudes to environmental management. Thus, H2a and H2h appear unsupported. Similarly, there is no statistically significant relationship between characteristics of the hotel and the perception of increased customer satisfaction. Ultimately, the results in Table 4 suggest partial support for H2. 6. CONCLUSIONS AND IMPLICATIONS It is noteworthy that, at the time this survey was completed (February and March of 2009), only a third (33.3%) of the hotels in the sample had a written environmental policy, despite environment (i.e., Adriatic sea) being Croatias first and foremost tourism attraction. Moreover, given the implied underlying role of environmental protection in Croatias official tourism slogan (i.e., Croatia The Mediterranean As It Once Was), it is interesting that the reported figure in this research is so low. While interesting, this finding does not come as a surprise. Namely, despite its long-standing tradition, the Croatian lodging sector is still hampered with numerous viability issues e.g., incomplete and/or poorly executed hotel privatization process, unresolved land ownership disputes, and pronouncedly high seasonality. Under these circumstances, it appears reasonable that the adoption and implementation of environmental standards by Croatian hoteliers is still at an early stage. Perhaps the most interesting finding in this study is that there was association between the presence of a written eco-policy and characteristics of the hotel, such as size, quality rating, and ownership type. This is in contrast to survey findings of hotels in Canada (Deng et al., 1992) and Edinburgh (Scotland; Kirk, 1998). Equally notable is the finding that managers of seasonal hotels are more likely to have a formal/written policy on the environment, as compared to hotels that operate all year round. Having a formal eco-policy in place suggests that seasonal hotels (as opposed to those that operate all year round) expect greater savings to their bottom line amid shorter time (i.e., fewer days) available for revenue generation. 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