The efficient management of water resources by the tourism sector is essential to be able to achieve sustainability in the future. Hotels, together with other tour operators, have a responsibility not to use more water than is absolutely necessary. Through a survey carried out in hotels on the island of Mallorca, we asked hotel managers about their water consumption and what types of water-saving measures they had introduced. We identified eleven water-saving measures, which were classified into “advanced” and “simple” according to the technical complications and the level of economic investment required. The numbers of measures of each kind that had been implemented were used as the dependent variables in two different Ordered Probit models. This method allowed us to identify the main variables that explain the introduction of water-saving measures. The significant main variables leading hotel managers to adopt simple water-saving initiatives are the existence of laundry facilities, the age of the hotel, and the number of stars. The same variables were found to be important for the introduction of advanced measures. The main drivers for introducing water-saving measures were the reduction in costs, followed by environmental concerns, while legal requirements and customer loyalty were found to be the least important drivers.

This study analyses water prices and residential water consumption using micro data for three different housing typologies in Calvià with contrasting household characteristics. We examine the effect of a price reform of the sanitation fee (implemented in 2013) on the average prices and their water consumption in each of the areas. Our results conclude that the aggregate water consumption decreased only during the year of the reform, but increased the following year. The increase in the amount of water consumed by the houses of higher standards of living was greater than the small decrease in water consumption by families with medium and low-medium incomes. Thus, the reform had a very modest effect as regards reducing water consumption, and many households increased their consumption despite the higher prices. From a water policy perspective, we recommend a water tariff scheme differentiated according to the housing characteristics in order to find the most effective and fairest way to save water.

Tourism increases water demand, especially in coastal areas and on islands, and can also cause water shortages during the dry season and the degradation of the water supply. The aim of this study is to evaluate the impact of water price structures on hotel water consumption on the island of Mallorca (Spain). All tourist municipalities on the island use different pricing structures, such as flat or block rates, and different tariffs. This exogenous variation is used to evaluate the effect of prices on water consumption for a sample of 134 hotels. The discontinuity of the water tariff structure and the fixed rate, which depends on the number of hotel beds, generate endogeneity problems. We propose an econometric model, an instrumental variable quantile regression for within artificial blocks transformed data, to solve both problems. The coefficients corresponding to the price variables are not found to be significantly different from zero. The sign of the effect is negative, but the magnitude is negligible: a 1% increase in all prices would reduce consumption by an average of only 0.024%. This result is probably due to the small share of water costs with respect to the total hotel operational costs (around 4%). Our regression model concludes that the introduction of water‐saving initiatives constitutes an effective way to reduce consumption.

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Water is a key aspect for any tourist destination. The pressure of tourism on water resources, and specifically by the hotel sector on islands and coastal areas, threatens the sustainability of the resource and, ultimately, of the destination. Several international organizations propose price policy as an instrument to promote efficiency and penalize excessive water consumption. This study analyzes the short-term effectiveness of a water tariff reform, implemented by the regional government of the Balearic Islands in 2013, on hotel water consumption. The change consists in moving from a linear to an increasing block rate system. The study applies quantile regression with within-artificial blocks transformation on panel data for the period 2011–2015. The results conclude that the reform was not effective as a means to reduce the levels of water consumption. The disproportionate fixed component of the water tariff and the oversized initial block of the sanitation fee can explain the ineffectiveness of the reform.