The Sustainability Practices and Its Effect on Financial Leakages of Star Classified Hotels in Ethiopia

Abstract

The purpose of this study was to test the effects of sustainability practice on financial leakage. Furthermore, it has aimed at to investigate the effect of the reduction of financial leakage on competitive advantage of star classified hotels from managers’ perspective. A quantitative and cross-sectional approach was applied. Data were  collected  from  all 242 star  classified  hotel  &  resorts  using  a  survey  questionnaire. To this end, after addressing data screening issues 201 of observations were left for this research analyses. CFA  and  SEM  were  applied  to  validate  and to test  the  structural  model respectively. The major findings were the higher sustainability practices of these star classified hotels could not more likely to reduced financial leakage of the studied star classified hotel in Ethiopia. Albeit, this research has brought a valuable insight on dimensions of financial leakage in star classified hotels/resorts has offered and the degree of sustainability practices and its implication for the reduction of financial leakage of star classified hotels in the country. Therefore, hotels in Ethiopia should give due attention for a better sustainability practices implementation so that financial leakage reduced greatly and finally competitiveness of these hotels enhanced.

Keywords: sustainability, financial leakage, competitive advantage

DOI: 10.7176/RJFA/12-3-05

Publication date: February 28^th 2021