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Green Tourism Essay

1891 words - 8 pages

Ways in which Management Accounting contributes to Green Tourism that can add value to A Country’s Tourism Industry.

Management accounting refers to the processes and techniques that focus on the effective and efficient use of organizational resources, to support managers in their tasks of enhancing both customer value and shareholder value. (Langfield Smith & Kim, 2009:6). Conversely, Green tourism describes basic tourism focused on visiting wildlife sites, historical heritage and sustainable tourism which does not damage the sites and communities being visited and a travel which is environmentally friendly. The undesirable state of the natural environment contaminated with harmful ...view middle of the document...

Major types of pollution affecting tourism are land, air and water. It is the hoteliers (service firms) and manufacturing firms that mainly cause this pollution. Focusing on the longer term, managerial accounting is imperative in making pollution-prevention investment decisions as its main roles include planning, implementing and controlling. These would aid managers to look ahead and create strategic objectives that the businesses must work towards to achieve organizational goals to work towards a sustainable future together with business objectives.
To do this organizations’ will need timely and relevant information about the level of pollution transpired by them. To meet the needs of the managers, a management accounting system (MAS) is designed. Thus achieving greater flexibility in providing information. Firms can now produce information on their waste disposal based on the data they collect. Sadly, the firms in Fiji are profit oriented thus their MAS mainly provides financial information. These firms are largely responsible for pollution. The way out to this obstacle could be to restructure the management accounting system so it integrates environmental information as well. Environmental management accounting (EMA) brings environmental costs to the attention of corporate stakeholders who may be able and motivated to identify ways of reducing or avoiding those costs while at the same time improving environmental quality and financial performance of the business. Therefore, EMA provides a broad range of information about financial and non-financial aspects of an organization’s environmental performance. When the managers receive timely and relevant information about the environmental distress caused by the firm, they could make appropriate decisions to reduce the pollution rate of the organization and the organization could also contributes to green tourism.
Furthermore, once the top level management receives information from the management accounting system, the top level management engages in effective preparation the organizations objective. For instance, the components of the tourism sector such as resorts, hotels and restaurants could have a collaborative objective of providing a pollution free environment for the tourists to experience and work towards sustainable development by trying to balance their economic, environmental and social needs, allowing prosperity for now and future generations. A very fine example is that of Sonaisali Island Resort. Their objective in 2007 was being committed to continually improve the environmental and social sustainability performance at our resort, striving to make appropriate yearly improvements focusing on achieving best practice in resource conservation and solid waste management, preserving and protecting the islands and the white sandy beaches by minimizing pollution. Following defining an organization’s objective, the organization engages in strategy formulation and implementation. The...

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