How Luxury Hotels Put Environmental Management Accounting in Practice: Evidence from Indonesia

Environmental Management Accounting (EMA) has gained popularity as public awareness of environmental degradation rises due to human activities. The fight over this issue is no longer an option for any business, including tourism. The aim of this study is to deep dive into how EMA is applied in luxury hotels. These hotels offer the best services, which can become a source of conflict in the spirit of sustainable tourism. We interviewed accounting five-star hotel managers in developing countries throughout 2023 to capture the phenomenon at its finest. This study found that EMA has been installed, trained, and applied to all their Standard Operating Procedures (SOPs). The need to give the best service didn’t hinder them from putting EMA into practice but supported them instead. This study also showed that awareness of the sustainability issue of people in developing countries is still low, hence the EMA application will help to shape the attention better. This study is among a few studies exploring the practice of EMA in luxury hotels in developed countries.