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Sustainable Tourism: Heritance Kandalama Resort of Sri Lanka (B)

By Wee Beng Geok & Ivy Buche



Publisher Ref No: ABCC-2008-007B Pub/Rev Date: 2008
Industry: Hospitality & Tourism Case Length: 11 pages
Teaching Note Ref: ABCC-2008-007B(TN) Teaching Note: 4 pages
Organisation: Aitken Spence Period Covered: 1990 - 2008
Country: Sri Lanka Level: Undergraduate/
Postgraduate
Publisher: The Asian Business Case Centre, Nanyang Technological University


Abstract


In 1992, when Aitken Spence Hotel Holdings PLC (ASHH) of Sri Lanka announced its intentions to build a tourist resort 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, benefiting the surrounding communities and involving local residents in the operations of the resort.

The resort, Heritance Kandalama, went on to receive 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 pioneers of sustainable tourism in Asia.

This case examines (a) the environment management and social and community development strategies/programmes at Heritance Kandalama, (b) the emergence of an organisational culture anchored on sustainable development, and (c) HR practices that supported the implementation of sustainable tourism practices.

Instructors may wish to use this case with "Sri Lanka's Aitken Spence Hotel Holdings: Competitive Strategy and Sustainable Tourism (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; Service delivery model


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