An Analysis of Energy Management Practices and Accounting Implications in the Hotel Sector: A Sri Lankan Case Study

Abstract

Purpose – The purpose of this paper is to examine energy conservation initiatives implemented and physical/monetary environmental management accounting practices adopted in relation to energy management in the context of a Sri Lankan hotel. Design/methodology/approach –A single case study approach was adopted for this study. Primary data were collected by conducting semi structured interviews with hotel staff along with observations. Evidence from the hotel’s Green Directory, daily and monthly energy records, presentations on energy conservation and online resources were used as secondary data. In the process of data collection, steps were taken to ensure data validity and reliability. Findings – The study identified that energy conservation practices, physical and monetary energy management accounting practices and performance measures of the hotel have been institutionalized and have evolved gradually over time. The contribution of accounting and finance towards the advancement of these practices is still limited and the potential for further development is significant. Research limitations/implications –Due to limited access to confidential internal energy records, the researchers’ interpretations were brought in, to illustrate and justify certain points. Further, as a result of the context-specific nature of the study, the findings are difficult to generalize across industries and are best suited for hotels with similar characteristics. Originality/value –The study attempts to fill the dearth of research related to energy management and its accounting implications in the hotel industry in a developing country’s context. The findings will be particularly useful for hotels with similar characteristics when adopting and developing a sustainable energy management system in collaboration with the finance function.