Home Volume 5
E-mail
Creating value through sustainable business practices

Christine Lim 1*, Yong Xin Chong 2 and Melissa Sutjipto 2


Received: 03/10/2011 Accepted: 25/01/2012

 

1 Division of Marketing & International Business, Nanyang Business School, Nanyang Technological University, S3-B2B-65, 50 Nanyang Avenue, Sngapore 639798; phone: +65 6790 4669, fax: +65 6794 1146, e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
2 Waikato Management School, University of Waikato, New Zealand
* Corresponding author


Abstract
The objective of this paper is to undertake a case study of Auckland International Airport and to examine how its sustainable business practices can create stakeholder value. Auckland Airport is the largest airport and the main gateway into New Zealand for international tourists. The paper investigates the impact of corporate growth-strategy announcement on the formation of a joint venture to build a 4-star airport hotel using an event study approach. The new hotel creates economic value to Auckland Airport as it is expected to generate considerable long term tourism revenue to the company. Additionally, it can stimulate economic growth and employment for the Auckland region as its proximity to the largest airport in the country attracts airline crews and transit passengers, and the hotel offers meeting facilities for MICE tourism. We found that the New Zealand share market’s reaction to the hotel joint venture announcement on 23 July, 2009, as proxied by the stock returns, to be significant. Economic value creation or business profitability of a firm can be used to create societal value. Auckland International Airport has invested in socially responsible environmental and socio-cultural initiatives to create value for its stakeholders, as discussed in the latter half of the study.

 

© 2012 International University College. All rights reserved


Keywords: Auckland International Airport, sustainable practices, hotel joint venture announcement, event study, green technology, Maori culture
Citation: Lim, C., Y. Chong, M. Sutjipto (2012) Creating value through sustainable business practices. European Journal of Tourism Research 5(2), pp. 118-128

Please login first to read fulltext!
 
European Journal of Тourism Research