Competitive Strategy, Sustainable Tourism and Human Capital – Sri Lanka's Aitken Spence Hotel Holdings and Heritance Kandalama (B) By Wee Beng Geok & Ivy Buche

Abstract

In 1992, when Aitken Spence Hotel Holdings PLC (ASHH) of Sri Lanka announced its intentions to build a tourist resort set in a region with several ancient archeological sites and rich in natural biodiversity, the local communities as well as environmentalists were apprehensive about the negative impacts of the development on the region. In response, the resort developers embarked on sustained and ongoing environmental, social and community development programmes to preserve the physical environment, benefit the surrounding communities and involve local residents in the operations of the resort.

By 2008, Heritance Kandalama was a recipient of many international awards for environment management and social and community development. It was the first Asian hotel to receive Green Globe 21 certification in 1999. The resort also raised the profile of its parent company, ASHH, as one of the Asian pioneers of sustainable tourism.

This case examines (a) the environment management and social and community development strategies and programmes at Heritance Kandlama (b) the emergence of an organisational culture anchored on sustainable development (c) HR practices that engendered and reinforced employees' commitment to implement sustainable tourism practices and strong employee support for Heritance Kandalama's customer service delivery model.

Instructors may wish to follow this case with "Competitive Strategy, Sustainable Tourism and Human Capital - Sri Lanka's Aitken Spence Hotel Holdings and Heritance Kandalama (A)". Case A explores the environment management and CSR strategies at Heritance Kandalama resulting in an organisation anchored on sustainable development.

Issues: Sustainable tourism in an Asian context; Organisational culture; HR practices and the service delivery model.

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