Innovation

The innovative step taken by Great Rift Valley was the implementation of solar panels across the hotel. This decision was taken two years ago, and even though nowadays they use a combination of solar power during the day and energy grids at night-time, their aim is to use just solar energy within the next five years.

For the hotel, one of the motivations behind this change in their energy source was obviously reducing costs, but their main goal was to make changes in order improve the environment and take good care of it. Solar energy is 50% cheaper, but the initial investment takes five years to recover.

In addition to solar power, they are also making some changes regarding the use of gas. The resort has started changing LPG gas, full of harmful chemicals, to biogas. Biogas is a renewable gas obtained from all types of waste such as food meaning that the leftovers from their restaurant can be turned into gas, instead of being just waste.

The Great Rift Valley is very concerned about the current climate situation, as well as the clients who visit the hotel, that’s why making these changes is so vital for them. Apart from changing the energy and the gas source, they are also focused on small modifications that will also have an effect on the long run. They have switched all their plastic bottles and the only ones available currently at the hotel are the ones made out of glass. Every client who visits the hotel and helps out financially on any of their initiatives like the clinics or the schools, is offered to plant a tree at the hotel.

Inspiration

As mentioned before, the driving motivation behind this change in energy and gas sources was dual. Yonathan reveals, "First motivation was cost-based. But at the end of the day, we have also been trying to see how we can improve the environment." These switches have a huge economic impact for the hotel, it takes time to recover the initial investment, but over time it compensates them because it ends up being 50% cheaper.

Moreover, the directors of the hotel are worried about climate change, and the way it will affect the world and the environment if we do not start doing something about it as soon as possible. That is why they are taking as much actions as they can and are open to all sorts of proposals that can help minimizing global warming and consequently the effects that this will bring.

Overall impact

The decisions taken by the directors of the hotel to change energy and gas sources have important implications both in the short term and in the long run.

In the short term, as previously stated, the economic improvement will not be seen greatly during the first years due to the fact that the initial costs of putting solar panels and changing to biogas are very high and the profits earned from these actions will take time to be noticed. However, once the first five years have gone by, the investment will have been recovered and the costs of gas and electricity will be cut down by half, which is a noticeable amount.

Over time, both the economic and environmental impact will surface. On the one hand, economically, the profits of the hotel will be much higher in regards to the ones with no change in the source of energy and gas.

On the other hand, there will be a great reduction in the emissions of CO2. It also meets several SDG targets such as: 7.2, increasing the share of renewable energy; 7.3, doubling the global rate of improvement in energy efficiency; 7.4, enhancing international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology; and 7.5 expanding infrastructure and upgrading technology for supplying modern and sustainable energy services for developing countries.

Business benefit

The business benefits of this sustainable approach are monumental. Yonathan emphasizes, "It's cheaper, by the way, renewable energy. In other words, our focus has always been on sustainable and cost-effective practices." The hotel now enjoys a 50% reduction in energy costs, demonstrating the financial viability of such forward-thinking practices. This not only positions Great Rift Valley Hotel as a leader in sustainability but also underscores the economic advantages that come with embracing environmentally responsible practices.

Furthermore, this inversion in the use of solar panels, is profitable for them because the useful life of the solar panels is estimated to be around at least 20 years.

Social and environmental benefit

The ripple effects of the hotel's sustainable practices extend beyond business benefits. The commitment to renewable energy and environmental responsibility is met with appreciation from guests and NGOs, solidifying the hotel's standing as a pioneer in the market. This transition aligns seamlessly with the hotel's broader commitment to societal and environmental well-being.

The business does not only financially benefit from these ecofriendly changes. This is because clients visiting the hotel really appreciate the fact that the hotel is making these changes to improve and take care of their surroundings. Therefore, the reputation of the hotel improves with these new innovations that they are implementing.

In the words of Yonathan, "We feel we have a responsibility not only to our shareholders but to all stakeholders, that includes the customers, the employees, and the environment. So, our whole mission is based on satisfying everyone across the board." The Great Rift Valley Hotel, with its innovative sustainable practices, is not only paving the way for a brighter and greener future but is also setting a remarkable example of responsible business for others to follow.

Interview

Yonathan Abraham, Financial Manager