The Use of Accounting in Supporting Sustainable Tourism The Case of the Sri Lankan Hotels

Authors

  • N. Gunarathne Department of Accounting, Faculty of Managemnet studiesand Commerce, University of Sri Jayewardenepura, Nugegoda, Sri Lanka

DOI:

https://doi.org/10.31357/fesympo.v18i0.1974

Keywords:

Environmental and sustainability management accounting (EMA), Environmental/sustainability practices, Hotel industry, Sri Lanka, Sustainable tourism

Abstract

Around the world sun-and-sand tourism has become matured as a market compelling thetourism industry to focus on experiential tourism which encompasses sustainable tourism aswell. With the recovery of the global economic slowdown and end of North East conflict, thetourism sector in Sri Lanka is poised to mark a steady growth. The Sri Lankan hotels havetaken various sustainability strategies to attract tourists who are getting increasinglyconcerned of the impact of their activities on the environment/society. In this context,Environmental and Sustainability Management Accounting (EMA) emerges as a potentialaccounting tool that can support the sustainability strategies pursued by hotels. Due to thepaucity of research in this area, the study attempted to identify the drivers of EMA, theprocess of implementation and the challenges faced.

The study followed a qualitative multiple case study approach in order to facilitate an indepth analysis. Primary data were collected by conducting eighteen semi structuredinterviews covering six publicly listed hotels. This was then supported by observations ofsome environment-related facility centres. Sustainability reports, annual reports, internalcompany records such as Green Book, daily and monthly material and energy records, etc.were content analysed as secondary sources of data. While collecting data, actions were takento improve the validity and reliability. The data gathered were analysed thematically.

The study identified that favourable public image as the main driver of EMA practices of thehotels. Internal pressures such as group affiliation, top management compulsion and the needfor environmental management system accreditation also had an impact in shaping the EMApractices. When implementing these strategies the hotels seek the support of employees,guests and suppliers. It is further identified that engineers play a key role in implementing theenvironmental and EMA practices. Lack of proper guidance/awareness and fragmentedconventional management accounting principles were identified as the main challenges facedby the hotels for better application of EMA. This has resulted in a low level development interms of accounting. Thus, the Sri Lankan hotels can be benefited greatly if accounting canplay a vital role in implementing strategies aimed at promoting sustainable tourism.

Author Biography

N. Gunarathne, Department of Accounting, Faculty of Managemnet studiesand Commerce, University of Sri Jayewardenepura, Nugegoda, Sri Lanka

Department of Accounting, Faculty of Managemnet studiesand Commerce,University of Sri Jayewardenepura, Nugegoda, Sri Lanka

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Published

2014-02-20

Issue

Section

Forestry and Natural Resource Management