According to the Business dictionary, economic sustainability is a use of various strategies for employing existing resources optimally so that that a responsible and beneficial balance can be achieved over the longer term. ("What is economic sustainability? definition and meaning", n.d.) Sustainability became an important issue in different areas – tourism, economics, politics. The question of sustainability is widely discussed on all manner of forums, conferences. If the owner of the company has a strategic plan of its development, he has to look deeply into the matter.
As we all know, holding a company is connected with many risks. And the main goals of sustainable economics are to define these risks and avoid it. From the Chapter 7 of The New Sustainability Advantage by Bob Willard (2012) we may learn that researchers define four main categories of risks, that are typical for the risk management: 1) Strategic risks, 2) Operational risks, 3) Compliance risks, 4) Financial risk. (Willard, 2012)
For the tourism industry, it is important to have a good reputation. That is why with every year different hotels are trying to become more “green”. It is not a secret, that this type of hotels is very important among people who care about the nature and other people who found this attractive. These hotels need to watch on their Water management, use the resources of nature wisely, recycle garbage (Waste management) and so on. It helps to gain good reputation among tourists, therefore strengthen its market position. Also, it helps to avoid risk to Revenue from Poor Reputation on Ecosystem Damages. (Willard, 2012)
Every company faces a particular set of physical and operational risks from severe weather, political uprisings, protracted permit delays, or other snags in its value chain. (Willard, 2012) Beside the Water and Waste management company has to take care about its clients, suppliers and partners. There is nothing worse than a company that cares about income and does not care about its suppliers. Suppliers are the part of producing chain and loosing one good supplier may reflect on the number of satisfied clients.
Some risks can be avoided by the correct management, but some of them can be only accepted. For example, risk of Higher Cost of Energy, when company cannot influence on it, but can adapt to the situation to save the business. There are various ways to resolve this issue, but the risk of competitive prices should be also taken into account.
Only by the constant studying Economics of sustainability, marketing researches, educating employees and non-stop work the company may remain successful and income will be increasing. It refers to any business, not only Tourism.
References
What is economic sustainability? definition and meaning. BusinessDictionary.com. Retrieved 1 April 2016, from http://www.businessdictionary.com/definition/economic-sustainability.html
Willard, B. (2012). The New Sustainability Advantage. New York: New Society Publishers.
