Accounting Management in Hotels - Essay Example

Accounting Management in Hotels Institution Name: Date: Abstract This paper will discuss how hotel industry remains vibrant in GCC generally and UAE particularly and the causes of increasing hotels during last years. However, the main topic and concern of the paper will be accounting management in hotels of GCC and UAE (Assaf & Barros, 2011). Specifically, the paper focuses on how these hotels use accounting management and how their practices does and procedures in accounting management help them to flourish, making it one of the major causes of increasing hotels last years. So, this paper is about accounting management in hotels in GCC and UAE. This paper sought to understand how accounting management in the hotel industry have have resulted to stability in growth of the hospitality sector in GCC and UAE (Assaf & Barros, 2011). To achieve this, the researcher conducted a qualitative research by first reviewing existing materials on accounting management on hotel industry. This literature review indicated that proper use of accounting management concepts for hotel management and growth in tourism are some of the key indicators that drive the growth of hotel in GCC and UAE in general. The researcher engaged in collection of collection of primary data. This being a qualitative study, participants who were selected trough targeted random sampling were asked to filling a questionnaire by providing their opinions and views on the topic of study (Assaf & Barros, 2011). A total of 132 participants, 12 of whom were interviewed while the other 120 were given questionnaires to fill in either online or on a hard copy. However, only 110 questionnaires were filled correctly. Five questionnaires had some blank questions while five participants did not return their questionnaires. Both data collection instruments were designed in Arabic, a language which participants understood best. Later, the collected data was interpreted to English for analysis. The results revealed that economic growth as a result of utilization of accounting management is the major growth indicator of hotel industry. Other indicators identified in the primary findings included social status and peer pressure on the kind of hotel to visit (Assaf & Barros, 2011). The researcher recommend future research to put into consideration existing cultural differences in different towns in GCC and UAE. It also recommends that learning institutions should promote accounting practises as revealed from the finding of this research so as to gain a competitive advantage in the growing hotel industry which is currently the key economic driver in the region (Assaf & Barros, 2011). Methodology Research Approach The study utilize a qualitative approach in collecting and analyzing primary data. Qualitative research has been associated with an empirical study that is interpretative, thereby implying that variables will be examined in their natural environment without any form of manipulation (Belk, 2006). Because the study focuses on how hotels use accounting management and how their practices does and procedures in accounting management help them to flourish, a qualitative approach will allow the researcher to understand and associate meaning as to how the participants make sense of their accounting practise experience and their availability in making hotel industry flourish. The researcher will also be able to establish physical interaction with the subjects, in this case, through the use of in-depth interviews (Belk, 2006). Research Method The primary research methodology will be used is the semi-structured interview that can enable the participants to clarify their answers and be asked to elaborate on these responses, thus more detailed information. This has been deemed suitable for the study as the topic is multi-faceted and will require extensive analysis based on the actual experiences and explanations of the interviewees, especially with the absence of predetermined responses found in highly structured survey questionnaires used in quantitative studies (Belk, 2006). The researcher also aims to exert efforts in establishing rapport with the interviewees in order to encourage them to truthfully express their feelings, thoughts and ideas as opposed to what is deemed acceptable (Belk, 2006). Sampling and Subject Plan The study will carry out a purposive type of sampling which seeks to establish certain criteria that should be followed for the selection of participants, thereby contributing to the relevance of primary data. For the current study, the criteria for inclusion will require that the sample should consist of participants who have been working for local hotels that use accounting management programs for their operations and have had such experience for 1 year or more. They should also have understood the roles and responsibilities of their organization and have received accounting management knowledge and training before and during their management experience. Due to the qualitative approach, the researcher aims to gather 132 participants with whom the interview process will be conducted to closely examine their views towards the benefits of utilization of accounting management practice in the hotel industry. With a smaller sample size, a more in-depth and comprehensive analysis can be obtained (Belk, 2006). Data Collection Procedures Secondary data for the study will be collected by gathering information which is relevant to the chosen subject, specifically through scholarly books and peer-reviewed journal articles as well as other online resources. Search engines will be utilized as well by searching important keywords. As such, the researcher can draw on recent findings in examining the chosen subject using a well-structured manner. Collection of primary data will then involve an in-depth interview process among the selected participants with which consent forms will be distributed to verify the willingness of the chosen interviewees in their involvement in the study. Accordingly, once interview responses have been gathered, the researcher will make use of thematic analysis in identifying patterns or themes that are brought up in the interviews and can be used as basis for addressing the research objective and establishing conclusions (Belk, 2006). Data Analysis The collected data was first interpreted into English and analyzed. To do this, data collected through the semi-structured questionnaire was coded first. The researcher went through all the questions and responses provided by the respondent to check for similarity and then attaching a code to similar responses (Danziger, 2005). Data analysis involved coding of data in terms of emerging themes. As such, the researcher identified emerging themes and classified the themes in these regard. The data collected through the interview was also coded after recording the responses on the interview schedule and analyzed through identification of similar themes. Developed statistical charts and tables were then interpreted and used in completing this report (Danziger, 2005). Control valuable The researcher took several control measures in conducting the research. To begin with, all recruited participant were from GCC and UAE. As such, no foreigner was recruited even if they work in hotels where the research was being conducted. This enhanced homogeneity in the research findings (Bryman, & Bell, 2007). The data was collected in Arabic since all participants clearly understood the language. This ensured that no participant was disadvantaged in terms of language and their ability to respond. Since the researcher was fluent in Arabic, it was easy to identify with the participants and collected the data effectively (Belk, 2006). The data was later interpreted into English for analysis. Data collected from the interviews was recorded in an Mp3. This ensured that the researcher retained original responses from the participants during data analysis. The information was used as a reference point to ensure that the exact responses were captured in the analysis (Belk, 2006). Discussions According to this research a comprehensive list of factors that come together to develop an accounting policy and practice for any region were provided. These factors include those related to economic development, the education in the regional, the culture inherent to the country and area of operations, the political situation in the country and the source of investment in the region (Bruce, 2007). Aside from these other economic metrics like tax rates and inflation can also effect the development of the accounting system particular to a region. These factors can be taken into account when investigating the accounting practices in the Hotel and Hospitality industry in GCC and UAE region (Abeysekera & Guthrie 2005). However specific to UAE, studies undertaken that are specific to the local accounting policies in the GCC and UAE region provide that it is generally applied that IFRS regulation is to be followed in accounting practices, but this regulation is not mandatory except for the banking industry. Similarly the data on the extent to which this regulation can be employed in the accounting practices of businesses in the region is not available as well (Abeysekera & Guthrie 2005). Additionally they provided that the managerial accounting system in such hotels is extensively used for strategic management. However as the research study undertaken on a small sample from Australia, making more in-depth outcome based generalizations from these findings can be diverging, When it comes to luxury hotels, and managerial practices for accounting and financial reporting, the research showed that specific to this type of hotel industry management is more focused on measure performance with financial and non financial metrics to evaluate performance (Abeysekera & Guthrie 2005). From the literature review, it has been observed that there is limited amount of research and material available on accounting and related regulatory practices in the GCC and UAE region. Only a handful of researches have been employed in this regard, and most of these deals with the comparison of cross cultural practices. More specifically data on the Hotel and Hospitality industry specific to GCC and UAE in terms of their accounting practices is in limited availability. This provides ground for the scope of an exploratory study in this regard (Bruce, 2007). Conclusions The increasing growth of hotel industry as a result of accounting management in GCC and UAE provides a promising market for both domestic and international companies. This is especially due to the growing group of financially able members of every community. As indicated in the research findigs, the perceptions of Arabs have changed increasing their intention for tourism in the region. This is also attributed to increasing employment opportunities for Arabs, higher educational levels (Bruce, 2007). As GCC and UAE hospitality market grows to become the leading flourishing market in the globe, the market is very promising to investors. However, entering a market without a specific strategy and products that meet customer preferences may prove futile. It is essential that hospitality companies understand the hotel market in the region and As such, it has been essential for research to be conducted on the potentiality of regional consumers and how this impacts on their intention to purchase these services (Bruce, 2007). The secondary findings reveal that there are different indicators that determine intention of hotel consumers to purchase hotel services. In comparison to the primary research findings, the secondary findings reveal that Arab consumption indicators differ from the motives of hotel services consumers in the western world. Where else hotel consumers in the west are more concerned personal comfort and satisfuction with quality and style of hotel products, GCC and UAE consumers are more concerned about the public perception and social status (Belk, 2006). As such, the face of the hotel consumer in the public is a major point of concern during decision making process on which hotel services to purchaseArabians were thus more likely to go for high quality, unique and highly prices hotel products which were perceived as representing their social standing (Bao, Zhou & Su, 2003). This is indicated by the large number of participants who purchased hotel products to enhance their social status. 41.8% and 50% of those who filled in questionnaires and those who participated in the interviews respectively), (Bruce, 2007). The primary finding showed that GCC and UAE hotel consumers were fond of purhasing hotel services for themselves as rewards and to enjoy themselves. This is an indication of how class or social status was important to them (Goulding, 2003). While doing this, the partipants considered the product quality as a very important factor of consideration before making a purchase with significance level standing below 0.05 (Creswell, 2003). This was also the reason why a majority purchased the hotel service once in a while as they did not have to keep on re-purchasing these services. As such, hospitality industries should ensure a continous production of high quality products to maintain customers (Belk, 2006). As companies trading in hotel industry expand their businesses and new ones enter the market, having differentiated products that meet the needs of this target group will be an added advantage to any companies that puts the group motives into consideration (Bao, Zhou & Su, 2003). It is thefore important that they design, package and advertise their products in such a way that they capture the emotions of its consumers. This also includes a consideration of how best to reach this group throug the social media which was found to be a very important tool in reaching target groups for their luxurious products in the literature review (Bao, Zhou & Su, 2003). References: Abeysekera I. & Guthrie J. (2005). An empirical investigation of annual trends of intellectual capital in Sri Lanka, Critical Perspectives on Accounting, vol.16, no.3, pp151-163 Assaf, G. & Barros, C. ( 2011). Performance analysis of the Gulf hotel industry: A Malmquist index with bias correction, International Journal of Hospitality Management, Volume 30, Issue 4, pp819?826 Bao, Y., Zhou, K. & Su, C. ( 2003). Face consciousness and Risk aversion: Do they affect consumer decision making? Psychology and Marketing Vol. 20 (8) , 733- 755. Belk, R. (2006). Handbook of Qualitative Research Methods in Marketing. Cheltenham, UK: Edward Edgar. Bruce, B. (2007). Qualitative Research Methods for the Social Sciences (6th ed). 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